Environmental Management

Environmental Management at Tokuyama

For Tokuyama, the pursuit of proactive initiatives to protect the earth’s environment is an important part of its corporate social responsibilities. Accordingly, the Company practices environmental management that takes into account the natural environment in all business activities.

Performance in Fiscal 2016

≫ Flow of Materials in Business Activities

Tokuyama works to accurately determine the input and output of materials for production, and regularly sets new targets aimed at reducing environmental impact. In fiscal 2016, Tokuyama achieved its perunit energy consumption, waste recycling and zero emissions targets.
Regarding performance data for fiscal 2015 and beyond, Tokuyama has set a separate numerical management target for each department

Flow of Materials in Business Activities Results of Environmental Protection Initiatives by the Tokuyama Factory in Fiscal 2014

Environmental Accounting

Tokuyama has been carrying out environmental accounting since fiscal 2000 in order to accurately determine and analyze the investment amounts and costs associated with its environmental conservation activities, thereby providing a sound basis for making environmental investments.

≫ Environmental Costs

Of Tokuyama’s total environmental investment in fiscal 2016, 73% was for pollution control, followed by 12% intended for environment protection, and 10% for resource recycling. Meanwhile, in environmental costs in fiscal 2016, 67% of the total was generated by pollution control, 19% by resource recycling, and 6% by global environmental conservation. Major capital investment projects in fiscal 2016 included upgrading an electrostatic precipitator and the internal mechanisms of an organic plant reactor.

≫ Economic Benefits of Environmental Management

Economic benefits are determined by calculating only monetary gains on the reduction of energy consumption, the sale of valuable waste, the reduction in waste disposal costs through waste recycling, and the reduction in raw material and fuel costs through waste recycling. In fiscal 2016, the economic benefits remained flat year on year, at approximately ¥1.5 billion.

Environmental Preservation Costs Economic Benefits in Fiscal 2014

Measures to Help Combat Global Warming

Tokuyama participates in Keidanren's Voluntary Action Plan on the Environment, as a member of one of the industries covered by the Action Plan. It is via this Action Plan that Tokuyama is working to achieve its 2020 emissions reduction target. Tokuyama is making steady progress in conserving energy throughout its business activities, and supporting efforts by employees to save energy
at home.

≫ Promoting Energy Conservation

Tokuyama consumes a vast amount of energy to manufacture its core products such as caustic soda, cement, and polycrystalline silicon. It also emits carbon dioxide (CO2), one of the greenhouse gases, primarily in its burning of fossil fuels and decarboxylation of limestone, which is used as a raw material for cement production.
The Company is working to reduce CO2 emissions by implementing energy conservation measures, including upgrading to more energy-efficient equipment. The Tokuyama Factory accounts for more than 99% of the Company’s total energy consumption, and it has a target of reducing its per-unit energy consumption by 3.0% by fiscal 2020, from 2005 levels. The plant launched a project to study ways to reduce per-unit energy consumption in fiscal 2016. That same year, the plant’s per-unit energy consumption was 6.4% below the 2005 level, continuing the declining trend from last year due in part to the high heating value of coal used in production.

Unit Energy Consumption Index Energy Consumption

≫ Addressing Global Warming through Initiatives at Offices

Tokuyama implements year-round, company-wide initiatives to conserve energy at offices, through strict application of temperature management for heating and cooling, lighting upgrades, and reduced computer energy consumption.
In March 2017, the Tokuyama Factory deployed an integrated system to collect, compress, transport, and use excess hydrogen, the first of its kind in Japan. The hydrogen is supplied to the Shunan Swimming Club facility, which is owned and operated by the Tokuyama Group, to operate pure hydrogen fuel cells that provide electricity and thermal energy to run the facility.

Energy Consumption

≫ Amounts of Atmospheric Emissions

In order to reduce emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and soot into the atmosphere, Tokuyama equips its boilers, cement kilns, and other facilities that generate these substances with emission control systems, including flue gas desulfurizers, denitration equipment, low-NOx burners, and high-performance dust collectors. In fiscal 2016, emissions of SOx and NOx increased in accordance with higher operating rates for emitting facilities. Emissions of soot remained level year on year.

≫ Emissions of Pollutant Release and Transfer Register Substances

In fiscal 2016, Tokuyama and its group companies handled twenty-four substances that require mandatory registration under Japan’s Pollutant Release and Transfer Register (PRTR)* system. The Company reduced emissions of PRTR substances through stable incineration and improvements at facilities, while also bringing down such emissions at group companies by paring the number of facilities that handled PRTR substances.

* The PRTR system collects and publishes data on the sources of designated harmful chemical substances and the amounts of these substances discharged in the environment or transported from production sites as part of waste matter.

≫ Amounts of Hazardous Air Pollutant Emissions

Tokuyama generates chloroethylene and three other substances that are among the 12 substances subject to voluntary controls in Japan’s Air Pollution Control Law. Accordingly, the Company has formulated a voluntary action plan and carries out ongoing measures for reducing the emissions of these substances.

≫ Measures to Reduce Dioxins

Tokuyama’s waste oil incinerators and certain equipment in its vinyl chloride monomer manufacturing facilities are subject to regulations under Japan’s Special Measures Law for Countermeasures against Dioxins. Accordingly, the Company measures the concentrations of dioxins in exhaust gases and wastewater emitted from these facilities to ensure that amounts are below regulatory limits.

≫ Amounts of Industrial Effluent and Wastewater

The Tokuyama Factory follows a stringent system for monitoring industrial effluent and purifying wastewater using treatment equipment in order to comply with regulatory standards and limits set by the local government, as well as the Company’s own standards, which are even stricter. The factory also employs activated sludge treatment facilities for reducing the discharge of nitrogen and phosphorous and meeting chemical oxygen demand (COD)* regulations for overall water quality.
In fiscal 2016, COD and phosphorus emissions remained level year-on-year. Nitrogen emissions increased due to malfunctioning of wastewater treatment equipment.

* Chemical oxygen demand is an indicator used to measure water quality, and refers to the amount of oxygen required to oxidize organic compounds in water.

Energy Consumption Energy Consumption Energy Consumption Energy Consumption Energy Consumption Energy Consumption

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