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CSR

Continuous Improvement of Responsible Care Activities

Mitigation of Climate Change

Policy/Philosophy

Due to consumption of large amounts of fossil fuels such as oil and coal since the Industrial Revolution, greenhouse gas emissions, including carbon dioxide emissions, are increasing and global warming is progressing. With the progression of climate change due to global warming, there is concern that various adverse effects on people's lives and the ecosystem will increase, such as increases in natural disasters including heavy rains and floods, reduction of food and water resources, and occurrences periods with intense heat and outbreaks of infectious diseases due to heat waves.

The Paris Agreement, which went into effect in 2016, aims to reduce the rise in average temperature well below 2°C (2°C target) as a long-term international goal in order to slow the progress of climate change and shift to a low carbon society. In addition, further efforts have been made to suppress the rise in average temperature up to 1.5°C. We support the Paris Agreement and we have set a long-term target of reducing greenhouse gas emissions by 30% from FY2018 level by FY2030. In addition, we announced our support for recommendations of Task Force on Climate-related Financial Disclosures (TCFD).

In accordance with our Responsible Care Basic Policy, our Group will actively work to reduce greenhouse gases in business activities and contribute to the mitigation of climate change through the provision of eco-friendly products and services.

System

Indicators

Greenhouse Gas Emissions (Scope 1+2)

Indicator Scope Unit FY2017 FY2018 FY2019 FY2020 Target
(Year)
CO2 emissions from energy use non-consolidated 1000t
-CO2e
232 230 219 203 -
CO2 emissions from non-energy use non-consolidated 1000t
-CO2e
23 19 18 25 -
N2O non-consolidated 1000t
-CO2e
124 114 90 91 -
Total※1 non-consolidated 1000t
-CO2e
380 363 327 318 359
(2021)
254
(2030)
Scope 1 non-consolidated 1000t
-CO2e
265 245 221 216 -
Scope 2 (market based) non-consolidated 1000t
-CO2e
115 118 105 102 -
Index of the GHG emission rate※2 non-consolidated - 64 57 50 48 60
(2021)
  • 1 Due to rounding off figures, there are places where the sums for each item do not match the total.
  • 2 Rate of emissions / sales (FY2011 as a base of 100)

Energy Consumption (Crude Oil Equivalent)

Indicator Scope Unit FY2017 FY2018 FY2019 FY2020 Target
(Year)
Production, research and office non-consolidated 1000kL 97.5 101.0 99.3 96.7 -
Energy consumption index (rate of energy consumprton / sales (FY2011 as a base of 100)) non-consolidated - 75.5 73.8 70.8 67.9 70
(2021)
Logistics non-consolidated 1000kL 5.8 6.3 5.5 5.7 -
Energy consumption rate non-consolidated kL / one million ton kilo 35.5 35.0 35.4 34.5 -

Activities

Reduction of GHG Emissions (scope 1 + 2)

In accordance with the "Act on Promotion of Global Warming Countermeasures", we collect data on the emissions of carbon dioxide (CO2) and other GHG from all of our business establishments, including our plants, laboratories, and head office and submit this data to the national government. In FY2020, reduction of CO2 emissions from energy use was achieved by switching fuel for auxiliary boiler of ammonia in Toyama Plant from heavy oil to natural gas. The volume of reduction of emissions was 8,000 tons-CO2e compared to previous fiscal year levels. By reducing emissions by 29% from FY2011 level, the energy consumption rate calculated as a ratio of emissions and sales (emissions / sales) significantly improved by 48% compared to that of FY2011. In addition, in order to examine the appropriateness of the calculation method , we have undergone a third-party verification since FY2018.

GHG emissions (1,000 tons - CO2)

Index of the GHG emission rate (FY2011 as a base of 100)

Understanding GHG Emissions through the Supply Chain (Scope 3)

We have calculated indirect GHG emissions (Scope 3) through the supply chain from raw material purchase to customer use and disposal. In addition, in order to examine the appropriateness of the calculation method, we have undergone a third-party verification for category 6 and 7 since FY2018.

Scope 3 of FY2020 was calculated and found to be accounted for 61% by purchased products and services. Compared to FY2019, Category 6 (business travel) decreased as a result of countermeasure against Covid-19.

We have participated in the Ministry of the Environment Green Value Chain Platform, and the status of Scope 3 calculation is also disclosed at https://www.env.go.jp/earth/ondanka/supply_chain/gvc/en/accounting_information.html

No. Item Calculation method Calculated value (tCO2e)
Activity data Emission factor
1 Purchased goods and services Items and money amounts of all purchased goods and services SC-DB※1 [5] Emission rate based on inter-industry relations table 468,166
2 Capital goods Capital expenditure SC-DB [6] Emission rate for prices of capital goods 45,028
3 Fuel-and energy- related activities not included in Scope 1 or 2 Procurement volume for each category of energy SC-DB [7] Emission rate of electricity and energy use, and IDEAv2※2 32,959
4 Transportation and distribution (upstream) Act on the Rational Use of Energy Specified Shipper’s Data and ton-kilometer of weight of the products purchased Emission rate under Act on the Rational Use of Energy, emission rate for energy consumption by improved ton-kilometer method, and IDEAv2 49,441
5 Waste generated in operations Disposed amounts for each category of wastes SC-DB [9] Emission rate for each category of wastes 9,712
6 Business travel Amount of payments for traffic expenses SC-DB [11] Emission rate for traffic expenses paid 216
7 Employee commuting Number of employees and number of working days SC-DB [14] Emission rate for number of employees and for number of working days 718
8 Leased assets (upstream) - - Included in Scope 1 or 2
9 Transportation and distribution (downstream) Weight of sold agrochemical product IDEAv2 2,035
10 Processing of sold products GHG emission data at main customers and Sales amount - 88,143
11 Use of sold products Sales amount of GHG products - 62,041
12 End-of-life treatment of sold products Container weights data responding to Containers and Packaging Recycling Act, and sales amount of products SC-DB [9] Emission rate for each category of wastes 3,383
13 Leased assets (downstream) Area of rental buildings SC-DB [16] Emission rate for each use of buildings 205
14 Franchises - - No applicable
15 Investments - - No applicable
  • 1 SC-DB : Database of Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver.3.1)
  • 2 IDEAv2:Inventory Database for Environmental Analysis ver2.3 (for accounting supply chain GHG emissions)

Calculation of Scope 3 Emissions: Indirect Emissions of Greenhouse Gas (GHG) via the Supply Chain

TOPICS:Efforts for Reducing GHG Emissions

At the Toyama Plant, fuel and feedstock for ammonia were conversed from naphtha and heavy oil to natural gas in FY2016 and fuel for melamine heating furnace from heavy oil to natural gas in FY2017. Also, fuel for heating furnaces for the manufacturing plant of cyanuric acid and for auxiliary boiler of ammonia were conversed from heavy oil to natural gas in FY2018 and FY2020 respectively. This contributed to a major achievement in reducing emissions of carbon dioxide, volatile organic compounds (VOC) and sulfur oxides (SOx). In addition, in FY2017, production capacity of nitric acid was optimized to reduce dinitrogen monoxide (N2O) emissions generated from reactors by approximately 60,000 tons as CO2 equivalent per annual. For these efforts, we received the 13th Japan Chemical Industry Association (JCIA) RC Award for Effort in FY2019.

We will continue to promote reducing our environmental impact considering ways to reduce the amount of GHG emissions.

auxiliary boiler of ammonia

auxiliary boiler of ammonia

 

Initiatives to Reduce Energy Consumption (Production, research and office)

In accordance with the "Act on the Rational Use of Energy", we collect data on the amount of energy consumed at all of our business establishments and submit this data to the national government, along with data on our energy consumption rate. Our energy consumption (crude oil equivalent) in FY2020 decreased by 2.7% compared to that of previous fiscal year through energy saving, etc. We have a product matrix that covers a wide range of products, from commodity chemicals to agrochemicals, pharmaceuticals and functional products for electronic materials. This is why we calculate it not based on simple quantity of production but based on sales. This consumption rate improved from the previous fiscal year by 2.9%.

Energy consumption (crude oil equivalent 1,000kL) and energy consumption index	(FY 2011 as a base of 100) in production, research and office

Initiatives to Reduce Energy Consumption (Logistics)

As a cargo owner, we work together with Nissan Butsuryu Co., Ltd., a group company which handles our logistics operations, to promote the rational use of energy for transportation. In FY2020, although the amount of energy consumption in crude oil equivalent increased from the previous fiscal year, the energy consumption rate was improved. We have received the Eco Rail Mark certification in 2018, and we will continue striving to improve our energy consumption rate through measures such as promoting modal shifts, replacing vehicles with energy-saving and practicing eco-driving.

 

Energy consumption (left axis: crude oil equivalent 1,000kL) and energy consumption rate (right axis: kL / one million ton kilo) in logistics

Use of Renewable Energy

The Toyama Plant mainly produces ammonia-based products and performance materials. It makes the plant consume a large amount of purchased electricity in the manufacturing process. This electricity is supplied by electric power corporations and Toyama Kyodo Jikahatsuden Co., Ltd., which was established through investment by companies in the Toyama Prefecture, including the Company. Toyama Kyodo Jikahatsuden Co., Ltd. uses the abundant water from the Jinzu River System to generate hydroelectric power at the Miza / Kuzuyama Power Station in Takayama City, Gifu Prefecture. At the Toyama Plant, purchased electricity generated at these hydroelectric power station is used at approximately one-third of the entire electricity consumption. We will continue to use environmentally friendly natural energy in the future.

Miza Power Station

Kuzuyama Power Station

 

TOPICS:Introduction of Solar-power Generation System in Biological Research Laboratories

In response to Saitama Prefecture Global Warming Strategy Promoting Ordinance, the Biological Research Laboratories introduced self-consumed solar-power generation system as an initiative to reduce GHG emissions. Solar panels are installed on the roofs of the research buildings, which is expected to reduce greenhouse gas emissions by approximately 70 tons-CO2 per year. We will continue to promote our efforts to reduce GHG emissions.

Introduction of Solar-power Generation System in Biological Research Laboratories

 

Corporate Social Responsibility (CSR)

 

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