Tackling Climate Change

Promoting Greenhouse Gas (GHG) emissions reduction

Formulating a roadmap for reducing GHG emissions

Nippon Shokubai formulated a roadmap for reducing GHG emissions by 2050 in terms of the “strategic transformation for environmental initiatives,” one of the “three transformations” set out in “TechnoAmenity for the future,” the Nippon Shokubai Group long-term vision published in April 2021.
Regarding our GHG emissions reduction target for FY2030, the final year of our long-term vision, we set a target of reducing our GHG emissions in Japan, which constitute roughly 70% of Group-wide emissions, by at least 30% from FY2014 levels by FY2030.
In FY2022, we started to buy carbon-neutral city gas. In FY2022, our GHG emissions in Japan, including those offset by the purchase of carbon-neutral city gas, amounted to 720,000 t-CO₂e,^*1 a 14%^*1 reduction from FY2014 levels. We are currently considering setting targets for GHG emission reductions at Group companies outside Japan.

The calculation of GHG emissions and energy consumption has undergone third-party verification (see Third-party Verification Report on GHG).

Roadmap for Reducing GHG Emissions by 2050

Trend in GHG Emissions (in Japan)

Note: We partly changed the aggregation method of GHG emissions.
*1 Including a carbon credit offset of 61,000 tons of CO₂ emissions (7.3% reduction from the FY2014 level) due to the purchase of carbon-neutral city gas

Employee’s VoiceCO₂ emissions eliminated by reducing the amount of wastewater

width= — Makoto Saito
Superabsorbents Production Department, Himeji Plant

Superabsorbent polymers (SAP) are made from polymerized acrylic acid (AA) and other raw materials that are crushed and dried. Since the waste gases emitted during the process of drying contain traces of AA that did not polymerize, AA is removed by contact with recycling water in a waste gas washing tower, and wastewater that has absorbed AA is burned in the disposal facilities of the plant.
In the Himeji Plant, the operation of old-type SAP production facilities with low production efficiency has been terminated one by one to be replaced with facilities with high production efficiency. Although the amount of waste gases can be reduced by stopping the operation of those old-type facilities, the amount of wastewater cannot be reduced simply in proportion to the amount of waste gases.
If the amount of wastewater extracted from the waste gas washing tower is reduced to decrease the amount of wastewater generated by the tower, the wastewater containing AA will increase in concentration and its retention time will be longer, thereby bringing about the generation of gel and making it difficult to treat wastewater in a normal manner.
To address this issue, I collected detailed data on the concentration of AA and its retention time in the waste gas washing tower and considered how the operation of the tower could be optimized. As a result, I was able to establish the operation requirements for reducing the amount of wastewater in the tower, contributing to a reduction of about 120 tons of CO₂ emissions per year.

Reducing energy consumption and CO₂ emissions

Our RC Promotion Committee, which is chaired by the Company President, formulated a Medium-Term RC Basic Plan based on the targets set out in JCIA’s action plan for achieving a low carbon society. On the basis of this plan, each of our plants takes action to mitigate climate change under the leadership of the committees responsible for promoting energy conservation activities and a reduction in CO₂emissions.
In FY2022, despite the progress of energy conservation activities, energy consumption intensity changed for the worse due to a decline in the production volume of energy generation products. In addition, a decrease in production volume contributed to the worsening of CO₂ emission intensity, but CO₂ emissions were reduced partly due to the use of carbon-neutral city gas.
In FY2021, we started solar power generation (on-site PPA) at the Himeji Plant. In addition, we promote energy conservation activities through the collection of waste heat and the introduction of a co-generation system. We also collect part of the CO₂ generated in the manufacturing process and sell it as liquefied carbon dioxide to reduce CO₂ emissions.

Trends in Energy Consumption and Energy Consumption Intensity

Note: Figures for energy consumption of Nippon Shokubai do not include those from the Head Offices, Research Centers, plant management buildings, or welfare facilities.
Note: In FY2022, energy consumption for the Nippon Shokubai Head Offices, Research Centers, plant management buildings, and welfare facilities was 8,000 kL.

Trends in CO₂ Emissions and Intensity

Note: Figures for CO₂ emissions are totals of energy-derived and non-energy-derived CO₂ emissions.
Note: We have changed the aggregation method.
Note: Figures for CO₂ emissions of Nippon Shokubai do not include those from the Head Offices, Research Centers, plant management buildings, or welfare facilities.
Note: In FY2022, CO₂ emissions for the Nippon Shokubai Head Offices, Research Centers, plant management buildings, and welfare facilities were 11,000 tons (including the emissions offset by buying carbon-neutral city gas).
*1 Including the emissions offset by buying carbon-neutral city gas

Employee’s VoiceRealizing heat recovery in various operation conditions

The Kawasaki Plant has introduced a co-generation system, which effectively uses the heat generated at the plant to heat the steam generated at the ethylene oxide (EO) plant, thereby enabling highly efficient use of energy from the entire plant. Depending upon the operation conditions of the plant, however, it was difficult to use the generated heat.
In response, I proposed remodeling plant facilities so that the generated heat can be used effectively under a wide range of operation conditions. This idea of remodeling, which affects the basis of the EO plant, was considered from various angles, including risk management, with the cooperation of the technical department and the engineering department. Under circumstances where any mistakes or trial and error would be unacceptable, we were able to remodel the facilities, although we had difficulties stabilizing the steam temperature and reducing remodeling costs. Thanks to this effort, we were able to conserve about 3,000 kL of energy (crude oil equivalent) in FY2022.
We will continue to promote energy conservation activities by taking advantage of DX, while pursuing safe and stable production activities.

Fluorocarbon emission control

The Act on Rational Use and Proper Management of Fluorocarbons, which covers the entire lifecycle of fluorocarbons from production to disposal, went into effect in April 2015, and regulations for disposing of certain equipment were further tightened in April 2020.
As a manager of Class I specified products, the Company conducts the legally mandated simple inspections and routine inspections according to plans. Additionally, our calculations of leaked fluorocarbons in FY2022 revealed leakage of 112 t-CO₂e from the Himeji Plant, 5,135 t-CO₂e from the Kawasaki Plant, and 5,255 t-CO₂e Company-wide. We intend to make efforts to reduce leaked fluorocarbons—an activity that facilitates climate change mitigation—by intensifying inspections and maintenance, upgrading to equipment that uses coolants with low global warming and ozone depletion potential, and properly disposing of equipment.

Calculations of Leaked Fluorocarbons in FY2022

（t-CO₂e）

Himeji Plant	Kawasaki Plant	Others	Entire company
112	5,135	8	5,255

Promoting for the reduction of the CO₂ emissions resulting from our entire supply chain

Calculating Scope 3 emissions

The GHG Protocol classifies GHG emissions into three classes: Scope 1, Scope 2, and Scope 3, which are the total GHG emissions attributable to business activities throughout supply chains for all categories.

Scope 1
Direct GHG emissions by the reporting company itself (eg. fuel combustion, industrial process)
Scope 2
Indirect emissions from the use of electricity, heat, or steam supplied by others
Scope 3
Indirect emissions other than Scope 1 and Scope 2 (emissions by others related to the company’s activities)

Nippon Shokubai will continue to calculate Scope 3 emissions and explore the possibility of reducing CO₂ emissions resulting from all corporate activities.

Trend in Scope 3 Emissions (Data for Nippon Shokubai alone)

（1,000 t-CO₂e）

No.	Category	Emissions
No.	Category	FY2020	FY2021	FY2022
1	Purchased goods and services	1,445	1,522	1,370
2	Capital goods	55	44	43
3	Fuel- and energy-related activities not included in Scope 1 or Scope 2	85	83	89
4	Upstream transportation and distribution	14	15	13
5	Waste generated in operations	7	8	5
6	Business travel	0.3	0.3	0.3
7	Employee commuting	0.9	0.9	0.9
12	End-of-life treatment of sold products	1,961	2,111	1,884
Total		3,567	3,783	3,405

Note: We partly changed the extent of calculation.

Initiatives for the reduction of Scope 3 emissions

In order to contribute to the reduction of Scope 3 emissions, the following items will also be strongly promoted.

Development and expansion of Environmental Contribution Products (products that contribute to the reduction of CO₂ emissions when used, etc.)
Development and dissemination of CO₂ recovery and recycling technology (carbon recycling technology)
Development and social implementation of material recycling and chemical recycling

Internal Carbon Pricing (ICP)

We have implemented internal carbon pricing (ICP) to promote low carbonization / decarbonization in corporate management on February 1, 2023.
In utilizing the ICP, we will raise awareness of Group’s commitment to decarbonization, promoting energy saving, and activate discussion about opportunities/risks concerning to CO₂ emission reductions.
This system is accelerating “Strategic Transformation for Environmental Initiatives” of our “three transformations” set forth in our long-term vision.

Outline of ICP

ICP	￥10,000 / t-CO₂ Shadow price set with reference to domestic and international carbon prices.
Method of application	The costs will be calculated using ICP based on a change of CO₂ emissions and used as a criterion for investment decision.
Range of application	Nippon Shokubai Group
GHG Scope	Scope 1 & 2

PAGE TOP