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Responsible Care Initiatives

Environmental Protection Initiatives

We promote initiatives to reduce the environmental impact of our business operations, including tackling climate change and reducing waste through our product supply chains.

1. Environmental Impacts of Our Business Operations

We are engaged in various efforts to not only provide better products and services, but also to reduce the environmental impacts of our business operations, including in our supply chains. We make efforts to conserve energy and tackle climate change of course. We are also managing the water used in our manufacturing sites in order to use water resources effectively, conducting advanced recycling and thoroughly treating water before it is released into the natural environment. Moreover, we also commission odor monitoring as well as conduct odor patrols and regular noise measurements so that neighboring residents can live in peace. In fiscal 2019, we received no reports of environmental pollution incidents or environmental complaints.

Note: This fiscal 2019 data is for only Nippon Shokubai (including our head offices, research centers and other sites).

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2. Tackling Climate Change

Promoting GHG reduction
Reducing energy use/CO2 emissions

At Nippon Shokubai, in line with the targets set in the commitment to a low carbon society by the JCIA, the RC Promotion Committee, chaired by the President, has formulated the Medium-term RC Basic Plan. Based on this Plan, each plant, under the initiative of the energy management committee, implements activities to help mitigate climate change, including reducing energy consumption and CO2 emission intensity. Furthermore, we set the GHG reduction target for fiscal 2030 to be 10% or more compared to the level of fiscal 2014 by reference to the CO2 emissions reduction target for fiscal 2030 set by the JCIA in March 2019 (10.7% reduction compared to FY 2013). In fiscal 2019, the results of our efforts to conserve energy aimed at our fiscal 2020 targets were 102 L/t-production for energy intensity and 0.402 t-CO2/t-production for CO2 emission intensity, and 0.192 t-CO2/t-production for energy source CO2 emission intensity. Our Osaka and Tokyo Offices use green electricity (biomass generation) under the Green Electricity Certificate System.

Trends in Energy Consumption and Intensity

  • * The amount of energy consumed and CO2 emissions do not include our head offices, research centers, plant administration buildings or employee welfare facilities.
  • * The amount of energy consumed and CO2 emissions in fiscal 2019 totaled 9,000 kL and 15,000 t-CO2, respectively, for our head offices, research centers, plant administration buildings, and employee welfare facilities of Nippon Shokubai.
Trends in CO2 Emissions and Intensity

  • ※CO2 emissions are totals of energy source and non-energy source CO2 emissions.
Suppression of fluorocarbon emissions

The Act on Rational Use and Proper Management of Fluorocarbons was fully implemented in April 2015 and covers the entire lifecycle of fluorocarbons from production to disposal. In April 2020, regulations for the disposal of specified devices were tightened.
As a “user of specified products,” we carry out scheduled simple inspections and periodic inspections as required by law. The amount of fluorocarbon leakage calculated in fiscal 2019 totaled 3, 194 t-CO2 for the entire company, with -580* t-CO2 from the Himeji Plant and 3,774 t-CO2 from the Kawasaki Plant. We will continue to strive to reduce the amount of fluorocarbon leakage through initiatives such as strengthening inspections and maintenance, introducing devices that use coolants with a low global warming potential, and implementing proper treatment at the time of disposal of devices, which will help alleviate global warming.

Calculated Leakage of
Fluorocarbons in Fiscal 2019

(t-CO2

Himeji Plant-580
Kawasaki Plant3,774
Others0
Entire company3,194

* At the Himeji Plant, 1,217 t-CO2 for fluorocarbon recovered along with the temporary storage of devices was recorded as a negative figure.

Calculating the CO2 emissions resulting from our entire supply chain
Calculation of Scope 3 emissions

In Scope 3, the amount of GHG emissions associated with corporate activities in the supply chain is calculated for each category, and the amounts of all categories are aggregated. The GHG protocol classifies GHG emissions into Scopes 1, 2 and 3 as shown below.

Scope1
Direct emissions: GHG emissions resulting from the burning of fuel or other products as part of business operations
Scope2
Indirect emissions: GHG emissions resulting from purchased energy, such as purchased electric power
Scope3
Other indirect emissions: GHG emissions other than Scopes 1 and 2 resulting from operations across the entire supply chain (from raw material extraction to product disposal)

We will continue to calculate Scope 3 emissions in the future as we investigate the possibility of reducing CO2 emissions resulting from all corporate activities.

Trend in Scope 3 Emissions Calculation extent: Nippon Shokubai only
No.CategoryEmissions (1,000 t-CO2)[1,000トン-CO2
FY2017 FY2018 FY2019
1Purchased goods and services 1,619 1,556 1,510
2Capital goods 40 31 37
3Fuel- and energy-related activities
(not included in Scope 1 or Scope 2)
62 61 63
4Upstream transportation and distribution 15 14 14
5Waste generated in operations 7 7 7
6Business travel 0.3 0.3 0.3
7Employee commuting 0.8 0.9 0.9
12End-of-life treatment of sold products 2,240 2,142 2,068
Total 3,984 3,812 3,701

Definitions

Green Electricity Certificate System
Environmental value-added electricity generated from natural energy is certified by a third-party institution, and the certificate issued to the business operator can be traded as a Green Electricity Certificate.

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3. Initiatives for Eco-friendly Distribution

Promoting modal shift

As a way of tackling climate change through our logistics operations, we are taking steps to reduce our CO2 emission intensity and implement exhaust gas countermeasures to control air pollution.
Although changing economic conditions can affect the amount of goods we transport and our CO2 emissions, we are advancing initiatives to reduce our CO2 emission intensity. These include modal shifts, improved transport efficiency, introduction of digital tachometers interlocked with GPS and drive recorders, and energyefficient vehicle operation such as minimal idling and the installation of energy-efficient tires.
We adopted the Kawasaki eco-transportation system as an air pollution control measure (effective April 1, 2010) and introduced three initiatives: eco-friendly driving and display of "eco-drive" stickers, elimination of vehicles that do not comply with laws regulating NOx and PM emissions, and widespread adoption of lowemission and energy-efficient vehicles.
Starting in fiscal 2017, in addition to joint transportation with other companies in the same business and conventional ship transportation by tankers, we have introduced a new type of ship transportation (roll-on/roll-off shipping) to reduce the environmental impact.

Trends in CO2 Emissions and Intensity Attributable
to Domestic Logistics


An example of modal shift
(railway tank containers and loading and filling equipment)

Definitions

Modal shift
Changing the mode of transportation to a mass transportation method, such as using railways or ships, thereby improving the efficiency of transportation while also reducing energy consumption and environmental impact.
Kawasaki eco-transportation system
An environmentally friendly transportation system established by a partial amendment to the "Kawasaki City Ordinance for Conservation of Life Environment, including Pollution Prevention."
Roll-on/roll-off ship
A ship designed to transport wheeled cargo on trucks or chassis cabs.
Ton-kilometer
Transport ton-kilometer is a unit of transportation measurement referring to the freight transport volume.
As an index for precisely expressing transport as an economic activity, it is the product of the freight haul distance (in kilometers) and the transported freight weight (tons).

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4. Environmental Protection through Our Products

Promoting Environmental Contribution Products

Chemical products have an impact on the environment because they are produced using the Earth’s resources and involve the discharge of CO2 and other waste. However, looking at the entire product life cycle from raw material extraction to product disposal, in some stages chemical products contribute to a reduction in the environmental impacts.
We evaluate how our products are used to reduce the environmental impacts through the supply chain to produce the various products in our daily life and as equipment to produce our products and in the social infrastructure.
In fiscal 2019, Nippon Shokubai began to review its Environmental Contribution Products by reviewing internal criteria and establishing an internal certification system in which the certification committee examines the checklist items and numerical data and certifies the products.

IONEL™ (Lithium-ion battery materials)/AQUALOC™ (Concrete admixtures)/Electrolyte sheets for solid oxide fuel cells/VEEA™ (UV-curable reactive diluent)/Waste gas treatment catalyst *Applications in parentheses

Environmental Contribution Products
Types of contributionProduct life stageApplicationsAccredited products
Global warming prevention
Energy conservation
GHG reductionManufacturingAquaculture feed bindersAQUALIC™H (for feed)
Concrete admixturesAQUALOC™
UseLithium-ion battery materialsIONEL™
Energy conservationManufacturingUV-curable reactive diluentsVEEA™
UseSolid oxide fuel cell materialsElectrolyte sheets for solid oxide fuel cells
Automotive damping materialsACRYSET™ (for damping materials)
Optical and electronic materialsZIRCOSTAR™
Chemical emission reduction
Air quality conservation
Chemical emission reductionUseWater-based paintsUWR™, ACRYSET™ (for water-based paints)
Water-based adhesivesEPOCROS™
Air pollution preventionUseRemoval of HC (hydrocarbon), NOx, dioxin and other pollutants from exhaust gasAutomotive catalysts
Waste gas treatment catalysts
Denitrification catalysts and equipment
Dioxin decomposition catalysts and equipment
Water resource conservation Water quality conservation Biodiversity conservationWater contamination preventionUseOxidation and decomposition of harmful substances in wastewaterWastewater treatment catalysts for catalytic wet air oxidation
Water treatment additivesEPOMIN™
DisposalDetergent buildersAQUALIC™L (for detergent)
BiodegradabilityDisposalDetergent ingredientsSOFTANOL™
HIDS™
Resources use reductionResources use reductionUseHollow fiber membranesPolyvinylpyrrolidone
Waste reductionWaste reductionDisposalConcrete admixturesAQUAGUARD™
Promoting CO2 emissions reductions throughout the product lifecycle

We employ the c-LCA method to assess the degree to which our products contribute to reducing CO2 emissions. The c-LCA method assesses CO2 emissions throughout the lifecycle of a finished product incorporating a specific chemical product compared with a product when assuming that the chemical products are not available. The difference in the volume of emissions is calculated as the net volume of emissions that would be avoided as a result of using that chemical product.

Nippon Shokubai’s products that are expected to contribute to the avoidance of CO2 emissions
AQUAGUARD™ Calculation of CO2 emissions avoided in one year when all apartments are built as long-lasting structures3.4 million tons AQUAGUARD™ was developed to reduce cracking and spalling in concrete. The combination of AQUAGUARD™ with a high-range water reducer for concrete is expected to contribute to much longer-lasting concrete structures.
Assessment
prerequisites
Service period: The lifecycle assessment assumes that a long-life apartment has a 100-year service life and a conventional apartment has a 50-year service life.
CO2 emissions associated with the building, use and demolition of apartments are evaluated with reference to the "Guidelines for LCA for Buildings" published by the Architectural Institute of Japan.
ACRYSET™(for damping
materials)
Calculation of CO2 emissions avoided when an application-type vibration-damping material is installed in all automobiles manufactured in one year310,000 tons We developed an emulsion for application-type vibration-damping materials for mounting on the lower surface of a vehicle body to reduce the noise and vibration from the engine and road surface. Using such material, it is possible to make the vehicle light and energy-efficient.
Assessment
prerequisites
The annual travel distance is assumed to be 10,000 km with a 10-year service life. Automobiles using asphalt sheeting as a vibration-damping material are compared and evaluated.
ZIRCOSTAR™ Calculation of CO2 emissions avoided when ZIRCOSTAR™ is incorporated in all smartphones manufactured in one year220,000 tons This product has outstanding optical properties, and using it for plastic lenses, displays, and other optical materials increases the energy efficiency of displays on mobile phones, smartphones, and other handheld devices, contributing to a longer battery life.
Assessment
prerequisites
According to the usage time described in the Carbon Footprint Product Category Rules, the product was evaluated as being in use for two years.
A smartphone incorporating ZIRCOSTAR™ in the optical material was evaluated as achieving a 3.6% reduction in power consumption as an energy-efficiency benefit.
VEEA™ Calculation of CO2 emissions avoided by reduction expected from all the UV curable inks produced in one year330,000 tons Use of VEEA™ as UV-curable reactive diluents for inks that are better for the environment makes volatile solvents, as well as related equipment, unnecessary, saves energy and increases productivity.
Assessment
prerequisites
Printed materials were assumed to be printed in four colors on full A-sized sheets with 3.2 g/m² of ink. Commercial offset and commercial UV printing presses were compared for evaluation.
AQUALIC™H(for feed) Calculation of CO2 emissions avoided when all aquaculture feed produced in one year is replaced with moist pellets (MP)80,000 tons Dry pellets and MP are mainly used as aquaculture feed. MP is produced by mixing raw feed with fish meal, plant-derived feed and a binder. It contains a smaller amount of fish meal, which requires a large amount of energy in the procurement of ingredients and the drying process. Use of MP therefore results in a reduction of CO2 emitted in the course of growing fish. AQUALIC™ H is used as the binder, contributing to a reduction in CO2 emissions.
Assessment
prerequisites
All feed in the aquaculture industry produced in Japan in one year was evaluated. The comparison target was dry pellets with a high content of fish meal and with no binders used.

Note: The above assumed values are for comparative purposes only; the actual service life and performance are not guaranteed.

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5. Chemical Substances Control Initiative

Reducing chemical emissions

In fiscal 1995, we participated in a voluntary PRTR survey undertaken by the JCIA and have set out to reduce our emissions of chemical substances into the environment.
In fiscal 2019, we released 78 tons of substances subject to the PRTR Law, which represents a 27.2% decrease in emissions compared to fiscal 2015 levels. As a result, we were able to achieve the reduction target for the 10th Plan ahead of schedule.

Top 10 Substances Subject to the PRTR Law Released in Fiscal 2019
Calculation extent: Nippon Shokubai only

(tons)

No.Government
Designation No.
Substance Subject to the PRTR LawReleased into
Atmosphere
Released into
Water
Total
Emissions
Amount
Transferred
1405Boron compounds0.023.523.50.2
24Acrylic acid and its water-soluble salts12.20.012.20.6
3321Vanadium compounds0.09.59.50.0
480Xylene5.80.05.820.8
558Ethylene glycol monomethyl ether3.90.03.90.0
6300Toluene3.00.03.0198.3
756Ethylene oxide3.00.03.00.0
812Acetaldehyde2.20.02.20.0
97Butyl acrylate2.20.02.20.0
1036Isoprene1.60.01.60.0
Trends in Emissions of Substances Subject to the PRTR Law

Definitions

PRTRPollutant Release and Transfer Register)
A regulatory system that requires the reporting of emissions of designated chemical substances into the air, water and soil as well as the volume of waste transferred. Data compiled and submitted to governmental agencies are disclosed to the public.

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6. Waste Reduction Initiatives

Reducing the amount of waste subject to final disposal at off-site landfills

Reducing waste is a necessary initiative to support the creation of a society committed to recycling. Toward the goal of achieving and maintaining “zero emissions” (defined as “reducing the quantity of waste subject to final disposal at off-site landfills to less than 0.1% of the total amount of waste generated”), we are introducing sorting for the recovery and recycling of our waste.
In fiscal 2019, we are continuing to implement our zero emissions policy by reducing the amount of waste subject to final disposal at off-site landfills. In addition to implementing comprehensive sorting for recovery and recycling, we are achieving this by redesigning our processes to reduce waste, reusing byproducts and processing product leftovers on site.

Waste Flowchart

※The figure includes 229 tons for disposal of items damaged by typhoons that occurred in FY2018.

Trends in Waste Emissions
Trends in Recycling Volume
Trends in Amount of Waste Subject to Final Disposal at Off-site Landfills

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7. Pollution Control Initiatives Targeting Air and Water

Working to reduce the environmental impact by introducing waste gas treatment catalysts and high-performance activated sludge treatment equipment

We are monitoring our SOx, NOx and dust emissions, and we have installed denitrification equipment, which we developed in-house, for NOx and scrubbers for dust to prevent air pollution. For SOx, we are reducing our heavy oil consumption and progressing with converting fuel to natural gas to reduce emissions. We use the waste gas treatment catalysts we developed in-house for purification of unreacted raw materials and by products generated in the production processes.
To prevent water pollution, we are working to reduce the environmental impact of wastewater from production processes by using waste liquid treatment equipment. In addition to reusing cooling water for more effective use of our water resources, we have adopted high-performance activated sludge treatment equipment that can stably process even high impact substances and are working on reducing sludge waste as well. All emissions are at levels below municipal and prefectural agreements.

Nippon Shokubai

(tons)

 '14'15'16'17'18'19
SOx emissions433344
NOx emissions178173205204198203
Dust emissions956667
COD of wastewater544651545550
Total phosphorus emissions333333
Total nitrogen emissions475154475855
Group companies in Japan

(tons)

 '14'15'16'17'18'19
SOx emissions222121
NOx emissions455444484543
Dust emissions353223
COD of wastewater483734455360

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8. Environmental Accounting

The values determined in our environmental accounting were aggregated according to the Environmental Accounting Guidelines for the Chemical Industry published in 2003 by the JCIA and the Japan Responsible Care Council. We also made reference to the Environmental Accounting Guidelines 2005 published by the Ministry of the Environment of Japan.

Environmental protection costs & environmental protection benefits
Applicable period: April 1, 2019–March 31, 2020 Calculation extent: Nippon Shokubai only

(millions of yen)

ClassificationMain InitiativesAmount
Invested
ExpensesEffects
Business
area cost
1.Pollution Control CostPreventing air and water pollution, controlling hazardous substances 892,572No pollution problems occurred.
2.Global Environmental
Protection Cost
Initiatives to reduce energy consumption and to tackle climate change 2,8413,877We conducted energy efficiency efforts equivalent to 3,646 kL (crude oil) annually.
3.Resource Recycling CostAppropriate treatment and disposal of industrial waste 30475We maintained zero emissions by sorting and recycling our solid waste.
Upstream/downstream costReuse of resources051Some of drum containers are reused.
Environmental management costOperation of environmental management structure; acquisition and maintenance of ISO 14001 registration0 561All our plants successfully acquired certifications, and we are seeking to enhance our environmental management systems.
R&D costReduction of the environmental impact through development and manufacturing of green products0 2,109Conducting R&D of products that contribute to the R&D cost environment.
Social activity costEnvironmental-related contributions029Implementing forest development initiatives.
Environmental damage cost05
Total 2,960 9,678
Economic effects (monetary benefits) resulting from environmental protection initiatives

(millions of yen)

EffectAmount
IncomeOperating revenue from recycling used products and waste generated by principal business activities42
Cost savingReduction in expenses associated with energy conservation650
Reduction in waste disposal cost accruing from resource conservation and recycling1,885
Total2,577
Reference
Total investment for the period: 11,105 million yen
Total R&D expenses for the period: 12,666 million yen

Definitions

Environmental Accounting
This system collects and analyzes the costs and effectiveness of environmental protection in business activities, quantitatively and to the maximum extent, and makes the data available to the public. It is focused on sustainable development for companies with the goal of efficiently and effectively promoting environmental protection initiatives while maintaining a good relationship with society.

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