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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.

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 FY2015 FY2016 FY2017 Target
(Year)
CO2 emissions from energy use non-consolidated 1000t
-CO2e
255 246 232 -
CO2 emissions from non-energy use non-consolidated 1000t
-CO2e
55 31 23 -
N2O non-consolidated 1000t
-CO2e
152 155 124 -
Total※1 non-consolidated 1000t
-CO2e
462 432 380 359
(2021)
Scope 1 non-consolidated 1000t
-CO2e
347 317 265 -
Scope 2 (market based) non-consolidated 1000t
-CO2e
115 115 115 -
Index of the GHG emission rate※2 non-consolidated - 87 78 64 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 FY2015 FY2016 FY2017 Target
(Year)
Production, research and office non-consolidated 1000kL 98.8 99.4 97.5 -
Energy consumption index (rate of energy consumprton / sales (FY2011 as a base of 100)) non-consolidated - 86.1 83.1 75.5 70
(2021)
Logistics non-consolidated 1000kL 5.2 5.4 5.8 -
Energy consumption rate non-consolidated kL / one million ton kilo 36.3 35.7 35.5 -

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 FY2017, the conversion of the fuel of melamine heating furnace from heavy oil to natural gas, which generates less GHG, helped to reduce GHG emissions from energy use and non-energy use. The volume of reduction of emissions was 53,000 tons-CO2e compared to FY2016 levels. By reducing emissions by 15% from FY2011 level, the energy consumption rate calculated as a ratio of emissions and sales (emissions / sales) significantly improved by 64% compared to that of FY2011.

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 participated in the calculation support project of SC (Supply Chain) emissions conducted by the Ministry of the Environment, and the results have been made available on Green Value Chain Platform website (https://www.env.go.jp/earth/ondanka/supply_chain/gvc/).

Scope 3 was calculated and found to be accounted for 62% of purchased products and services.

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 August 2016 and fuel for melamine heating furnace in August 2017. This contributed to a major achievement in reducing emissions of not only carbon dioxide but also sulfur oxides (SOx). We also contributed to reduction of GHG emissions by making effective use of carbon dioxide, which is a by-product of the manufacturing process.

On the other hand, in July 2017, production capacity of nitric acid was optimized to reduce nitrous oxide (N2O) emissions generated from reactors by approximately 30,000 tons as CO2 equivalent per annual. In FY2018, we plan to switch fuel used in heating furnaces using cyanuric acid as a heating medium. We will continue to expand the use of natural gas for other boiler fuels and consider ways to reduce the amount of GHG emissions in order to reduce our environmental impact.

Melamine heating furnace

 

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 FY2017 reduced compared to that of previous fiscal year. 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 7.6%. This is attributed mainly to conversion of the fuel from heavy oil and naphtha to natural gas. In FY2018, our head office was relocated to a highly energy-saving-efficient building (PAL / ERR Stage 3).

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 FY2017, the amount of energy consumption in crude oil equivalent increased from the previous fiscal year. However, the energy consumption rate was improved. 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

 

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