The Tokuyama Group treats CO₂ emissions as a management risk. Pursuing a low-emission business model, the Group has now set CO₂ emissions reduction targets to achieve by fiscal 2030 and is working hard to achieve them.
Group-Wide Initiatives for Energy Conservation
The Tokuyama Group treats global warming as a priority issue, managing its per-unit energy consumption and perunit GHG emissions to reduce CO₂ emissions. As of fiscal 2018, the Group had achieved a reduction of approximately 9% from fiscal 2005 levels. In fiscal 2018, the Group generated 4.4 million metric tons of CO₂ emissions from energy consumption.
Under the Paris Agreement of the Conference of the Parties (COP) in 2015, Japan committed to a target of achieving a 26.0% reduction of CO₂ emissions by fiscal 2030, from fiscal 2013 levels. Of this, Japanese industry is expected to achieve a 6.5% reduction. In conducting its materiality assessment, the Tokuyama Group identified global warming as an issue of the highest priority. While continuing with its existing energy conservation initiatives, the Group is now also working to reduce CO₂ emissions from energy consumption in accordance with the Paris Agreement. Its new target is to achieve a 15% reduction of business-as-usual (BAU) CO₂ emissions by fiscal 2030,
from fiscal 2013 levels.
Initiatives to Achieve CO₂ Emissions Reduction Target
The entire Tokuyama Group is striving to achieve the FY2030 emissions reduction target. The Tokuyama Factory comprehensively implements energy conservation initiatives to eliminate loss of available energy, and is also looking into CO₂ and heat recovery and utilization. R&D departments are studying the development of innovative technologies and business creation for environmental and energy applications, and developing environmentally friendly products. Business departments are shifting the composition of their businesses away from dependency on low-cost electricity to minimize CO₂ emissions risk.
Companies today are increasingly required to track and manage emissions not only at their own operations but also at each stage of their supply chains in order to reduce emissions throughout the supply chain. These efforts encompass upstream emissions from the manufacturing and transport of raw materials and products, through downstream emissions from the distribution, use, and disposal of products sold by Tokuyama.
Based on the Scope 3 standard of the GHG Protocol,*Tokuyama is calculating supply chain emissions for category one through seven and category nine emissions under Scope 3. The emissions from these categories were calculated at 1.47 million metric tons,approximately 90% of which belonged to category one (53%) and category four (36%) emissions.
* The Greenhouse Gas Protocol (GHG Protocol) was jointly formulated by the World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), and the Scope 3 Standard was issued in November 2011 as a standard for calculating CO₂ emissions throughout supply chains.
Guidelines: Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.3), December 2017, Ministry of the Environment and Ministry of Economy,Trade and Industry, Government of Japan
CO₂ Emissions Unit Database: Emissions Unit Value Database for Calculating Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 2.6), March 2019; Carbon Footprint System Pilot Project: Provisional Common Database of CO₂ Equivalent Emission Factors (Ver. 2.01)
Note: Emissions were calculated for the top 10 raw materials by purchase amount.