Environment
Climate Change Initiatives
- Initiatives for Climate Change: Information Disclosure in Line with TCFD
- Energy Conservation Efforts
- Initiatives to Reduce CO2 Emission Intensity
- GHG Emissions from Business Activities throughout the Supply Chain
- Investments in Energy-Efficient Facilities
- Eco-Friendly Products
- Energy-Efficiency Initiatives in Logistics
- Response to the Fluorocarbons Emission Control Law
To address global warming, we at the Kaneka Group are working to promote energy conservation and reduce CO2 emissions through a range of measures, including our own environmental capital investment program.
We are implementing life cycle assessment (LCA) for our main products and intend to successively expand the range of products covered going forward. We are also working to introduce carbon-life cycle analysis (cLCA) and indirect GHG emissions calculation. Carbon-life cycle analysis (cLCA) uses an LCA-based quantitative evaluation to calculate the contribution to GHG emissions reduction relative to comparable products. Indirect GHG emissions calculation covers business activities throughout the supply chain (Scope 3 emissions).
Initiatives for Climate Change: Information Disclosure in Line with TCFD
With people and technology growing together into creative fusion, we will break fresh ground for the future and tie in to explore New Values. We are also committed to challenge the environmental issues of our planet and contribute to upgrading the quality of life. Guided by this corporate philosophy, Kaneka Group will leverage its products and services to globally offer useful solutions to the issue of climate change, and will fulfill its social responsibilities regarding the various climate change-related impacts associated with the production and distribution processes. As part of this, we expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in March 2021.
Energy Conservation Efforts
We are engaged in energy conservation activities, using the energy intensity index as an indicator for management.
The energy intensity index for all parent manufacturing sites in fiscal 2022 was 90.5, an increase of 0.1% from the previous fiscal year. The average rate of change over the five-year period was a decrease of 0.3%, which did not reach our goal of an annual average decrease of 1%. The main factor behind not reaching our goal for an annual average decrease was lower production volume of products that significantly affect intensity. The main reason for not reaching our goal for the average rate of change of the five-year period was also that, compared to fiscal 2018, the production volume of products that significantly affect intensity was lower.
Kaneka and Group companies in Japan used 3,802 GWh, a decrease of 10.5% from the previous fiscal year, mainly due to a decrease in production volume.
For details, please refer to “Calculation Methods for Data of Indicators Related to Environment”.
Targets and Performance
| Target | Fiscal 2022 performance | Evaluation | |
|---|---|---|---|
| Energy intensity index | Average annual reduction of 1% or more | 90.5 (all parent manufacturing sites) (0.1% year-on-year increase) | × |
| Five-year average decrease of 0.3% | × | ||
Energy Consumption and Energy Intensity Index
Kaneka Group Energy Consumption （Fiscal 2022）
| Kaneka and Group companies in Japan | Overseas Group companies | Total | |
|---|---|---|---|
| Energy Consumption (GWh Conversions) (GWh/year) |
3,802 （Of which Kaneka 3,328） |
1,042 | 4,844 |
| Energy Consumption (Crude Oil Equivalents) (Thousand kiloliters/year) |
531 （Of which Kaneka 461） |
138 | 669 |
Initiatives to Reduce CO2 Emission Intensity
At Kaneka, we are working to reduce CO2 emission intensity, using a CO2 emission intensity index as an indicator for management, based on CO2 emissions from energy consumption associated with production activities.
In fiscal 2022, the index for all parent manufacturing sites was 85.0, achieving our fiscal 2022 target of 91.4 (toward a fiscal 2030 target of 84.3).
GHG emissions for Kaneka and Group companies in Japan decreased by 10.2% from the previous year to 1,095 thousand tons-CO2e, due to factors such as energy saving activities, lower production volume, and the use of energy with a lower CO2 emission coefficient. Going forward, we will continue to take energy saving actions and, based on our strategy for carbon neutrality, will work to reduce GHG emissions by means of actions such as streamlining production processes through innovation and switching to alternative fuels.
Targets and Performance
| Target | Fiscal 2022 performance | Evaluation | |
|---|---|---|---|
| CO2 emission intensity index | Average annual reduction of 1% or more (fixed emissions factor) Estimated fiscal 2022 performance 91.4 (fiscal 2030 target 84.3) |
85.0 (all parent manufacturing sites) | ◎ |
GHG Emissions and Energy Origin CO2 Emission Intensity Index
Scope 1 and 2 Emissions (Kaneka)
(Thousand tons CO2e/year)
| (Fiscal year) | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Scope 1 emissions | 785.7 | 759.9 | 736.1 | 624.1 |
| Scope 2 emissions | 246.4 | 262.5 | 335.7 | 338.2 |
| Total | 1,032.1 | 1,022.4 | 1,071.8 | 962.3 |
Note:For energy supplier-owned co-generation systems installed on the Group's premises, emissions have been calculated based on fuel consumption at the facilities. However, from the fiscal 2022 results, we have changed the calculation method to one based on the consumption of heat and power generated at the facilities and purchased by the Group. This has lowered the ratio of Scope 1 to the total amount of Scope 1 and 2 emissions and increased the ratio of Scope 2 emissions.
Scope 1 and 2 Emissions (Fiscal 2022)
(Thousand tons CO2e/year)
| Kaneka and Group companies in Japan | Overseas Group companies | Total | |
|---|---|---|---|
| Scope 1 direct emissions（*1） | 689 （Of which Kaneka 624） |
102 | 791 |
| Scope 2 indirect emissions from purchased of acquired electricity, steam, heat and cooling (*2) | 407 （Of which Kaneka 338） |
166 | 573 |
| Total | 1,095 （Of which Kaneka 962） |
269 | 1,364 |
Note: Amounts reported here may not fully match, due to rounding.
*1 Non-energy CO2 emissions and CO2-equivalent of methane and N2O emissions are included.
*2 Scope 2 emissions calculated using the location-based method for Kaneka and Group companies in Japan were 519 thousand tons CO2e (including 449 thousand tons CO2e for Kaneka). For overseas Group companies, Scope 2 emissions were the same calculated using location-based and market-based methods.
GHG Emissions from Business Activities throughout the Supply Chain
We have calculated indirect GHG emissions (Scope 3) associated with our business activities through supply chains. Kaneka has thus far based its calculation of Scope 3 emissions on Kaneka, the parent company. Starting from fiscal 2022 results, we have started to calculate some categories of Scope 3 emissions on a consolidated basis. A dash (“－”) in the table indicates that data that has not been calculated.
Kaneka Group Scope 3 Emissions Calculated by Category (Fiscal 2022)
(Thousand tons CO2e/year)
| Category | Kaneka | Group companies in Japan |
Overseas Group companies |
Total | |
|---|---|---|---|---|---|
| 1 | Purchased goods/services | 1,707.6(*3) | － | － | 1,707.6 |
| 2 | Capital goods | 55.9 | － | － | 55.9 |
| 3 | Fuel-and energy-related activities not included in Scope 1 or Scope 2 | 153.4 | － | － | 153.4 |
| 4 | Upstream transportation and distribution | 21.4 | － | － | 21.4 |
| 5 | Waste generated in operations | 3.4 | 11.4 | 11.8 | 26.6 |
| 6 | Business travel | 4.0 | 0.5 | 0.4 | 4.9 |
| 7 | Employee commuting | 1.1 | 1.5 | 1.2 | 3.8 |
| 8 | Upstream leased assets | 0.0 | － | － | 0.0 |
| 9 | Downstream transportation and distribution | （*4） | （*4） | （*4） | （*4） |
| 10 | Processing of sold products | （*4） | （*4） | （*4） | （*4） |
| 11 | Use of sold products | （*5） | （*5） | （*5） | （*5） |
| 12 | End-of-life treatment of sold products | 539.8 | 106.8 | 235.0 (*6) | 881.6 |
| 13 | Downstream leased assets | 0.02 | － | － | 0.02 |
| 14 | Franchises | －（*7） | － | － | － |
| 15 | Investments | 397.4 | － | － | 397.4 |
| Total of Scope 3 emissions | 2,884.1 | 120.2 | 248.4 | 3,252.7 | |
*3 Previously, the scope was raw materials (including intermediate products) used in each manufacturing process. From fiscal 2022, we changed the calculation to include those purchased as raw materials.
*4 GHG emissions for this category were not calculated because we were unable to determine a rational calculation method due to the high percentage of intermediate products.
*5 Some products generate emissions when used. However, since it was confirmed that this represented less than 0.1% of total Scope 3 emissions, such emissions were excluded from the calculation range.
*6 Kaneka Medical Vietnam Co., Ltd. is not included in the calculation because its products have not been converted to weight.
*7 GHG emissions for this category were not calculated because we have no franchise stores.
Scope 3 Emissions (Kaneka)
(Thousand tons CO2e/year)
| (Fiscal Year) | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Total of Scope 3 emissions | 3,142.9 | 2,905.0 | 3,344.6 | 2,884.1 |
Note:The reason for the large increase in Scope 3 emissions from fiscal 2018 to fiscal 2019 was the addition of a category to the scope of calculation. In addition, from fiscal 2022 we changed the method for obtaining raw material purchase data for Category 1.
Investments in Energy-Efficient Facilities
To continue reducing energy intensity and CO2 emission intensity, we are implementing our own environmental capital investment program, with an annual budget of 300 million yen (the budget was 200 million yen until fiscal 2020 but we increased it in fiscal 2021 to strengthen our climate change response). Investments are for small and medium investments that have a relatively long payback period, through activities in three areas – global warming prevention, effective use of resources, and environmental impact reduction – that are priorities in Kaneka’s environmental management program. In fiscal 2022 we continued allocating a large portion of this fund to projects that address climate change, including broader initiatives such as visualizing energy consumption. We will continue to use this investment program effectively to promote actions which to reduce energy and CO2 emission intensity.
Results of Our Own Environmental Capital Investment Program
| Fiscal Year | Investments (million yen) | Number | Reduced CO2 Emission of the Year |
|---|---|---|---|
| 2018 | 200 | 24 | 1,748 tons-CO2 |
| 2019 | 200 | 29 | 1,227 tons-CO2 |
| 2020 | 200 | 27 | 1,010 tons-CO2 |
| 2021 | 300 | 36 | 1,757 tons-CO2 |
| 2022 | 300 | 30 | 2,319 tons-CO2 |
Eco-Friendly Products
Kaneka Group has focused on eco-friendly management since fiscal 2017. We have enhanced and expanded our lineup of eco-friendly products, which we define as products that help reduce the burden on the natural environment compared to conventional products at the customer use, disposal, and recycling stages (see the table below).
Eco-friendly products have been defined as follows.
| Type of Environmental Contribution | Qualitative Definition |
|---|---|
| GHG Reduction | Products reducing greenhouse gas (GHG) emissions |
| Energy Saving | Products lowering energy consumption |
| Energy Creation | Products creating energy |
| Energy Storage | Products storing energy |
| Waste Reduction | Products reducing waste |
| Resource Saving | Products achieving resource savings |
| Biomass | Products (derived from non-fossil materials) reducing reliance on fossil materials |
| Water Resources | Products saving water and improving the water environment |
| Chemical Pollution | Products preventing chemical pollution |
| Biodiversity | Products conserving biodiversity |
| Intermediate Materials | Intermediate materials essential to ensuring that finished products contribute to the environment |
| Disaster Control | Products helping disaster prevention and preparedness and reducing environmental impacts during a disaster |
| Adaptive Contribution | Products adapting to global warming |
Energy-Efficiency Initiatives in Logistics
To achieve an annual 1% reduction in energy intensity and a continuation of 1% improvement in five-year average energy intensity as a specified consigner under the amended Act on Rational Use of Energy, we continued working towards implementing modal shifts, promoting joint distribution, and improving cargo load ratios.
In fiscal 2022, we availed of subsidies from the Ministry of Land, Infrastructure, Transport and Tourism for modal shift promotion projects and promoted the use of marine transportation. This resulted in an overall decrease of 0.3 thousand tons in CO2 emissions. The result was a 2.0% decrease in the energy intensity index from the previous year.
CO2 Emissions and Energy Intensity Index from Logistics (Kaneka)
Response to the Fluorocarbons Emission Control Law
Complying with the Act on Rational Use and Proper Management of Fluorocarbons in Japan, we are promoting the replacement of aging equipment that use specified fluorocarbons as well as strengthening our management of equipment.
The estimated leakage of fluorocarbons in fiscal 2022 at Kaneka was 934 tons-CO2e, which met our target for reducing the estimated leakage of fluorocarbons to 1,000 tons-CO2e or less. At Group companies in Japan, there were no estimated leakage of fluorocarbons exceeding 1,000 tons-CO2e. We will continue to systematically update aging equipment, selecting equipment with low global warming potential (*8) and green refrigerant. We will also reduce the leakage of fluorocarbons by inspecting equipment to detect and eliminate fluorocarbon leaks at an early stage.
*8 Global warming potential is a figure that shows, on the basis of carbon dioxide, how other greenhouse gases have the property of causing global warming.
Estimated Leakage of Fluorocarbons (Kaneka)
