Toward Social Implementation of Solutions to “Make it Real”

Initiatives for Climate Change

In March 2021, we expressed our support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In fiscal 2020, we conducted a structural analysis of the group activities centered on risks and opportunities in line with the recommendations of TCFD, and from the perspective of importance and urgency, we have decided that the following items should be addressed: ① Reduction of GHG emissions, ② Contributing to a recycling-oriented society, and ③ Increasing production of food resources. Our initiatives in line with the four TCFD recommendations: Governance, Strategy, Risk Management, and Metrics and Targets are as follows.

Recommended Disclosure	Status of Initiatives
1. Governance	At the “DX & Carbon Neutral Committee” in the Engine of Sustainability Management established on April 1, 2022, we will accelerate technology development toward the realization of carbon neutrality. For long-term themes, we will set up a “Production DX & Carbon Neutral Planning Team” at Engineering Research Laboratories, and for short-term themes, we will set up a “DX & Carbon Neutral Group” at Corporate Manufacturing Integrity Center. Both organizations will work together to study the technology. In addition, we will set up a “Production DX & Carbon Neutral Project Conference” to promote the implementation of carbon-neutral technology in the field.
2. Strategy	In fiscal 2020, we identified our risks and opportunities for climate change. In fiscal 2021, we organized the progress of three issues to be addressed. ①Cutting emissions of GHG The DX Strategic Unit and the Carbon Neutral Technology Committee have been studying measures such as process innovation, fuel conversion of private power generator, and the CO₂ utilization, capture, and fixing. In order to actively promote environmental contribution capital investment including photovoltaic power generation, we will consider the system design of internal carbon pricing (ICP) and put it into practice by the end of fiscal 2022. We are progressing the on-site installation and market expansion of high-efficiency photovoltaic modules that contribute to zero energy. ②Contributing to a recycling-oriented society In collaboration with a large number of global brand holders, we are expanding the market for KANEKA Biodegradable Polymer Green Planet™. We also decided to increase the production capacity by 15,000 tons/year. ③Increasing production of food resources Aiming for sustainable recycling-oriented organic dairy farming considerate of people, dairy cattle, and the environment, Betsukai Wellness Farm Co., Ltd. has been in operation since May 2021 and is working on the production of raw milk and the cultivation of organic feed. Regarding food waste, we are working to reduce the amount of waste by improving the expiration date.
3. Risk Management	We will continue the climate change risk assessment, and for highly important projects, the “DX & Carbon Neutral Committee” will decide the action and policy.
4. Metrics and Targets	Our total GHG emissions for Scope 1 and Scope 2 in fiscal 2020 was 1,461 thousand tons-CO₂ on a consolidated basis. In order to achieve carbon neutrality by 2050, we will implement measures to save energy through process innovation, convert fuel to private power generator, utilize renewable energy, CO₂ utilization, capture, and fixing. By 2030, we will realize a 30% reduction in GHG emissions (compared to 2013).

Toward Social Implementation of Solutions to “Make it Real”

Expanding the Active Use of KANEKA
Biodegradable Polymer Green Planet™ to Resolve
the Global Environmental Pollution Issues

Broadening the Provision of Solutions to Resolve
Infection Issues in Various Situations

Hokkaido Initiative: Our New Challenge of Making
“Wellness First from Hokkaido”

Initiatives for Carbon Neutrality

Initiatives for Climate Change