Environment
Environmental Performance
By providing solutions that contribute to the global environment and a rich life and working to reduce environmental impacts and disclose timely information in fundamental business domains, Kaneka Group engages in various environmental initiatives.
Material Balance
Kaneka Group is working to reduce environmental impacts by aggregating the status of energy and resource inputs and material outputs through emissions and products to grasp production activity volume, targeting Kaneka and Group companies within Japan and overseas.
In fiscal 2022, the main raw material, energy consumption, and water inputs decreased by 66 thousand tons (3.8%), 630 GWh (11.5%) and 3.6 million m3 (9.5%), respectively from the previous year. The outputs of product, GHG, NOx, COD, nitrogen, and phosphorus decreased by 139.9 thousand tons (6.4%), 184.0 thousand tons-CO2e (11.9%), 61.8 tons (6.3%), 12.8 tons (3.7%), 8.4 tons (5.4%), and 1.1 tons (21.7%), respectively. Meanwhile, due to the decrease in the amount of waste generated by Kaneka, the amount of recycled waste decreased by 2,520 tons (4.5%) and the final landfill waste output decreased by 946.2 tons (17.3%).
For data of indicators related to climate change and environment protection, we have received third-party assurance to ensure the reliability and transparency of Data Sheet 2023.
For indicator data, some calculation methods have been changed. For details, please refer to “Calculation Methods for Data of Indicators related to Environment”.
Fiscal 2022 Results
*1 Kaneka, 40 Kaneka consolidated subsidiaries in Japan, and seven non-consolidated subsidiaries. Consolidated subsidiaries in Japan do not include subsidiaries of Cemedine Co., Ltd.
Environmental Accounting
We efficiently and effectively promote environmental conservation activities by quantitatively grasping the investment and expenditure costs related to environmental conservation and the quantitative and economic impacts of environmental measures. We calculate these costs and effects based on the 2005 edition of the Environmental Accounting Guidelines by Japan’s Ministry of the Environment with Kaneka's own unique way of thinking, targeting all parent manufacturing sites and 30 Group companies in Japan (manufacturing companies).
In fiscal 2022, environmental costs (investments) were 893 million yen, a decrease of 3,095 million yen from the previous fiscal year. In terms of environmental costs (expenditures), pollution prevention costs, resource recycling costs, and research and development costs increased by 243 million yen, 60 million yen, and 2,657 million yen, respectively.
Environmental Costs (Investments, Expenditures)
(Millions of yen)
| Cost Classifications | Main Efforts | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | ||||
|---|---|---|---|---|---|---|---|---|
| Investments | Expenditures | Investments | Expenditures | Investments | Expenditures | |||
| Business Area | 1,049 | 5,637 | 3,987 | 6,048 | 893 | 6,350 | ||
| 1. Pollution Prevention | Air and water pollution prevention | 947 | 3,338 | 3,737 | 3,881 | 835 | 4,124 | |
| 2. Environmental Conservation | Addressing climate change and energy saving | - | - | - | - | - | - | |
| 3. Resource Recycling | Waste processing, recycling, and reduction | 102 | 2,299 | 250 | 2,167 | 59 | 2,227 | |
| Upstream and Downstream | Product recycling, collection, and processing | 0 | 25 | 0 | 25 | 0 | 24 | |
| Management Activities | Environmental education for employees and environmental impact monitoring and measurement | 0 | 397 | 1 | 419 | 0 | 423 | |
| Research and Development | Research and development of products contributing to environmental conservation | - | 9,169 | - | 9,219 | - | 11,876 | |
| Social Activities | Greening, beautification, and disclosure of environmental information | 1 | 114 | 0 | 107 | 0 | 84 | |
| Environmental Damage | Payment of sulfur oxide emission charges | 0 | 8 | 0 | 2 | 0 | 9 | |
| Total | 1,050 | 15,350 | 3,988 | 15,820 | 893 | 18,766 | ||
Note: Figures do not include global environment conservation investments and expenditures and research and development investments. Amounts reported here may not fully match, due to rounding.
Quantitative Impact of Environmental Conservation Efforts
| Category | Initiatives | Items | Units | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 |
|---|---|---|---|---|---|---|
| Pollution Prevention | Atmospheric and water discharges of hazardous substances | SOx emissions | Tons | 61.7 | 85.5 | 81.6 |
| NOx emissions | Tons | 877.1 | 876.3 | 786.7 | ||
| Chemical oxygen demand | Tons | 220.9 | 236.2 | 228.7 | ||
| PRTR Law‒designated chemical emissions | Tons | 188.3 | 166.0 | 168.6 | ||
| Environment | Greenhouse gas emissions | GHG emissions | Thousand tons-CO2e | 1,177.1 | 1,219.6 | 1,095.3 |
| Energy consumption | GWh Conversions | GWh | 4,092 | 4,247 | 3,802 | |
| Resource Recycling | Final landfill | Landfill | Tons | 479.5 | 350.2 | 279.9 |
| External recycling | Amounts recycled | Tons | 55,750.8 | 48,906.8 | 47,390.1 |
Regarding the economic impacts of environmental measures, revenue from recycling increased by 14 million yen year on year, while cost reductions by better resource efficiency (output per unit of input), waste disposal cost reductions by recycling, and cost reductions by energy conservation decreased by 115 million yen, 142 million yen, and 338 million yen, respectively.
Economic Impacts of Environmental Measures
(Millions of yen)
| Measures | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 |
|---|---|---|---|
| Revenue from recycling | 189 | 184 | 198 |
| Cost reductions by better resource efficiency (output per unit of input) (*2) | 1,335 | -19 | -134 |
| Waste disposal cost reductions by recycling (*2) | 110 | 448 | 306 |
| Cost reductions by energy conservation | 24 | 422 | 84 |
| Total | 1,657 | 1,035 | 453 |
Note: Amounts reported here may not fully match, due to rounding.
*2 When calculating fiscal 2022 results for certain business sites in Japan, it was found that positive and negative treatment was reversed for “Cost reductions by better resource efficiency (output per unit of input)” and “Waste disposal cost reductions by recycling.” The actual values for fiscal 2020 and fiscal 2021 have therefore been revised.
Environmental Investments (Kaneka)
We continue to invest in environmental conservation.
Environmental investments in fiscal 2022 totaled 870 million yen. Of this total, 54.2% was for air quality, 22.3% was for water quality, 13.2% was for the work environment, 6.9% was for industrial waste, 1.5% was for dust, 1.0% was for smell, and 0.8% was for noise reduction.
Environmental investment over the past five years averages about 1,560 million yen, leading with water quality (58.2%), followed by air quality (25.2%) and the work environment (9.31%). We will continue to invest proactively to maintain and improve the environment.
Environmental Investments in Fiscal 2022
Cumulative Environmental Investments
Environment Efficiency (Kaneka)
Kaneka assesses the environmental impact of our production activities using Environmental Impact Points (EIPs), which are compiled using the JEPIX methodology, and we use these points to assess our environmental efficiency.
Our total environmental impact improved by 13.9% from the previous year in fiscal 2022, primarily due to decreases in ozone-depleting substances, GHG, discharges of phosphorous and nitrogen in coastal waters, and NOx, etc., with EIPs at 4.10 billion. Environmental efficiency improved by 28.2% from the previous year.
Environment Efficiency
Details of Total Environmental Impact
| Fiscal Year | Net Sales (million yen) |
Environmental Impact (100 million EIPs) |
Environmental Efficiency (yen/EIP) |
|---|---|---|---|
| 2020 | 279,774 | 43.3 | 64.5 |
| 2021 | 334,675 | 47.7 | 70.2 |
| 2022 | 369,172 | 41.0 | 90.0 |
CHECK & ACT
Under environmentally friendly management, we continue working to reduce environmental risks by complying with environmental regulations and legislation and criteria in agreements with local governments and by checking compliance with them through various means, including ISO 14001 internal audits and ESG safety and quality inspections.
We will also continue working to further reduce environmental impact and improve environmental efficiency by promoting energy conservation activities.
TOPICSGreen Bond (Environmental Bond) Issued
As its 7th unsecured straight bond, Kaneka issued a green bond (environmental bond) to procure funds for the manufacture and R&D of KANEKA Biodegradable Polymer Green Planet™ (“Green Planet™”) in September 2019. A green bond is an ESG bond, and fund usage is limited to projects that contribute to resolving environmental issues. It is the first such industrial bond issued by a Japanese chemical company.
Green Planet™ is a 100% plant-based polymer extracted from microorganisms that process plant oils and is biodegradable in the sea and soil. It is expected to contribute to reducing marine pollution caused by microplastics.
For the issuance of the green bond, Kaneka has established the Green Bond Framework, which conforms to the Green Bond Principles 2018 of the International Capital Market Association (ICMA) and the Green Bond Guidelines 2017 Edition of Japan’s Ministry of the Environment. To obtain eligibility for and transparency of this green bond and raise its appeal for investors, as a third-party evaluation, Kaneka has obtained a second opinion from Rating and Investment Information, Inc. (R&I) of how this framework conforms to the Green Bond Principles 2018 and the Green Bond Guidelines 2017 Edition. Kaneka has also obtained top-level evaluation in the green bond assessment by R&I, the GA1 preliminary evaluation.
The relevant business segments of the green bond principles and the relevant development objectives of the SDGs are shown in the table below.
| Green bond principles / Green project categories | SDGs Development objectives |
|---|---|
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Annual Reporting
・Green Bond 2020 Annual Reporting (PDF)
・Green Bond 2021 Annual Reporting (PDF)
