Long-term Global Warming Countermeasures
In 2019, the Toyobo Group established a long-term vision for global warming.
In recent years, the impact of climate change associated with global warming has become apparent with an increase of natural disasters such as typhoons and localized torrential rainfall, as well as changes in the ecosystem due to "subtropicalization" of the climate. Against this backdrop, in December 2015 the Paris Agreement was adopted as the international framework of the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21). In addition, there has been a worldwide increase in ESG investing, in which investors focus on and select those companies that give consideration to Environment, Social and Governance factors.
The Toyobo Group also recognizes the serious risk posed by global warming and climate change to the continuation of business activities, and we are working hard to achieve our emissions reduction targets. In the coming years, we will extend our focus beyond production to our overall business activities, as we endeavor to contribute to environmental sustainability through our product- and technology-based solutions. In this way, we will strive to cut greenhouse gases from an even longer-term perspective.
We will seek to reduce emissions of greenhouse gases from our business activities through measures such as switching to natural gas in our factories and enhancing production efficiency, as well as introducing renewable energies such as solar power.
Through these measures, we aim to realize 30% reduction compared with fiscal 2014, of our greenhouse gas emissions by FY2031, and achieve net zero emission by fiscal 2051, respectively.
With regard to the initiatives we are engaged in through our products and solutions, we are developing and increasing sales of engineering plastics, which help to reduce CO2 emissions from automobiles due to their lighter weight and greater fuel economy. We are also striving to reduce emissions of greenhouse gases in our entire supply chain by developing products and technology that contribute to carbon recycling, by viewing CO2 as a carbon resource and collecting it for re-use as various carbon compounds.
|Reducing greenhouse gas emissions|
structure to achieve carbon neutrality
Toyobo Co., Ltd. will establish the Carbon Neutral Strategies Council and the Carbon Neutral Strategies Cross-Functional Team as of April 1, 2021, to formulate and promote Toyobo Group’s strategies to achieve carbon neutrality in 2050.
In diligently making company-wide efforts to achieve carbon neutrality, the soon-to-be-established Carbon Neutral Strategies Council will formulate strategies to pursue and milestones to reach for the Toyobo Group based on the three objectives listed below.
Moreover, to promote activities that transcend departmental boundaries from a long-term perspective, the company-wide Carbon Neutral Strategies Cross-Functional Team will be formed to study and implement substantive measures, such as encouraging innovation, promoting alliances, accelerating R&D, and creating solution businesses.
Objectives to achieve by formulating carbon neutral strategies
①Minimize greenhouse gas emissions generated from the Toyobo Group’s production activities
②Contribute to reducing greenhouse gas emissions and ultimately achieving carbon neutrality through solutions provided by the Toyobo Group
③Place emphasis on developing technologies for capturing and separating greenhouse gases
Support for the TCFD and Participation in the TCFD Consortium
In January 2020, the Toyobo Group announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) proposals, and joined the TCFD Consortium, which consists of companies and financial institutions that agree with the recommendations.
The TCFD was established by the Financial Stability Board (FSB), whose members include representatives of central banks, financial supervisory authorities, and others from 25 major countries and regions, and its recommendations urge companies, organizations, and others to disclose information about climate-related risks and opportunities. In Japan as well, preparations are underway to respond to TCFD proposals, including the publication of the "Guidance on Disclosure of Climate-related Financial Information (TCFD Guidance)" by the Ministry of Economy, Trade and Industry.
In the Toyobo Group, we have set being a "Group that continues to use materials and science to create solutions required by people and the planet" as our corporate vision. As a part of this, by providing products and services that help solve climate-related problems, we aim to both contribute to the realization of a sustainable society, and achieve long-term growth. In 2019, we decided upon "Long-term global warming countermeasures," and we have set a target to achieve net-zero (substantially zero) greenhouse gas emissions by fiscal 2051.
With the announcement of our endorsement of the TCFD proposals and our participation in the consortium, we will continue to meet requirements for accountability to our stakeholders by further analyzing and responding to the risks and opportunities to our business posed by climate change, and by expanding our disclosure of relevant information.
Reducing Greenhouse Gas Emissions
With the establishment of these long-term global warming countermeasures, the medium-term target for the period up to fiscal 2031 has been increased from a 17% reduction (compared to fiscal 2014) to a 30% reduction by the same point. Accordingly, the short-term annual reduction goal has been raised from 1% annual reduction (compared to fiscal 2014) to 1.8% for the same period.
Moreover, in fiscal 2020 we constructed the Group’s fourth gas cogeneration facility at the Tsuruga Research and Production Center, our largest R&D and production base. This has been in operation since fiscal 2020, and is expected to further reduce emissions of greenhouse gases.
Greenhouse gas emissions
CO2 emissions in fiscal 2020 totaled approximately 873,000 tonnes for Scope 1*1 and Scope 2*2 combined, 3.4% lower than the previous fiscal year and 28.1% lower than the reference fiscal year (fiscal 2014). We believe this is due to the benefits of gas cogeneration facilities*3 and enhanced production efficiency.
Scope 1, 2 greenhouse gas emissions (Japan, overseas)
- *1 Direct emissions from owned or controlled sources
- *2 Indirect emissions from the use of purchased electricity/heat/steam
- *3 An energy recycling system, harnessing waste heat (from clean natural gas–fired electric generation) to produce steam & hot water used in manufacturing processes, supplying of hot water and air-conditioning etc.
- *4 Japan total: Total for TOYOBO CO., LTD. and domestic consolidated subsidiaries
- *5 Overseas total: Total for overseas consolidated subsidiaries
Scope 3 emissions
Greenhouse Gas Reduction in the Supply Chain (FY2020)
- * Scope 1 + Scope 2 (global), Scope 3 (TOYOBO CO., LTD.)
Given that the highest emissions in the supply chain are those related to the purchasing of raw materials, in the future we will continue to promote green procurement.
Energy usage in FY2020 came to 11.468 million GJ, a 6% reduction over the previous year. The main factor behind this was the installation of gas cogeneration equipment in Group companies.
Activities to cut greenhouse gas emissions during production
In fiscal 2020 we constructed the Group’s fourth gas cogeneration facility at the Tsuruga Research and Production Center, our largest R&D and production base. This has been in operation since fiscal 2020, and is expected to further contribute to reduced emissions of greenhouse gases.
Energy-saving initiatives in logistics
Our annual goal is a 0.5% year-on-year reduction in CO2 emissions in logistics.
In the Logistics Department, we launched the Green Logistics Promotion Project in 2006, and as well as working to improve quality and cost rationality, we are also continuously working on environmental conservation such as energy saving, resource saving, and prevention of global warming. Up until now, we have implemented a variety of measures in order to reduce the environmental impact of logistics. These measures include shortening transportation distances by using the nearest port to our offices, and using efficient stacking and bulk transport of cargo in order to reduce the number of vehicles used. We are also actively promoting the usage of ship and rail transportation which have lower specific energy consumption than truck transportation, together with lower CO2 emissions.
In recognition of these efforts, in 2014 we were awarded the "Green Logistics Partnership Conference Special Award" by the Green Logistics Partnership Council, a joint initiative between the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, the Japan Institute of Logistics Systems, and the Japan Federation of Freight Industries.
In fiscal 2016, some raw materials were transported by truck from Okayama to Fukui. However, when their origin was changed to Hiroshima, we switched to using sea transport from there to Fukui. This switch from road to sea transport provided an approximate 1000 t-CO2 reduction (46%) in CO2 emissions, and a 3% drop in energy intensity.
In addition, in fiscal 2020, overseas exports of some products had previously required road transport from the Tsuruga Research and Production Center in Fukui to Kobe Port, but by switching to using the nearest port (Tsuruga Port), we achieved a 59 ton (0.2% reduction) in CO2, with a 0.3% drop in energy intensity.
Energy-saving initiatives in offices
The Toyobo Group is promoting the conversion to LED lighting, reductions in the usage of copy paper, and the conversion to eco-cars throughout the Toyobo Group offices, including at the head office.
Introduction of renewable energy
Malaysia is currently promoting the introduction of clean energy, and TOYOBO TEXTILE (MALAYSIA) SDN. BHD. has decided to install solar power generation facilities in its new factory. Once all plans are complete, solar power is expected to provide approximately 7% of all energy used by the whole factory. This will result in a yearly CO2 reduction of 915 tons, contributing to a Group-wide 0.1% reduction in energy consumption.