Response to Climate Change

Mid-term target
Reduce the greenhouse gas emissions in production intensity to 45% of the 1990 level by 2025.

Results and evaluation in FY2019
The achievement was 54.1% at the Shin-Etsu Group and 49.5% at Shin-Etsu Chemical.

FY2019
Target:Reduce energy consumption in production intensity at an annualized rate of 1%
Results:The annualized reduction rate from FY2016 to FY2019 was 0.3% for Shin-Etsu Chemical and 1.1% for the Shin-Etsu Group.
Evaluation:Shin-Etsu Chemical achieved the target.

FY2020
Target:Reduce energy consumption in production intensity at an annualized rate of 1%

Results

In order to take concrete measures against global climate change, the ESG Promotion Committee, chaired by the President, works with each department to tackle these important issues.

Starting from FY2010, the Group has implemented energy savings and installation of a cogeneration system in addition to introducing innovative technologies, in order to achieve the mid-term goal which is "Reduce the greenhouse gas emission per production unit to 50% of the 1990 level by 2015". Furthermore, in FY2016, we set a new mid-term target of "Reduce the greenhouse gas emissions in production intensity to 45% of the 1990 level by 2025", and we have been working towards that goal. In FY2019 we started reducing power consumption by deploying cogeneration systems with gas turbines as well as improving electrolytic cells with high-performance ion-exchange membranes, among other initiatives.

Regarding the greenhouse gas emissions intensity for FY2019, the Group and the Company achieved 54.1% and 49.5% of the 1990 level respectively.

Also in May 2019, The Shin-Etsu Group announced our support for the recommendations from the TCFD1. We also participated in the TCFD Consortium of Japan2. We will continue to disclose information regarding climate change in line with the TCFD recommendations.

Related Information

Shin-Etsu Group and Climate Change

Changes in Greenhouse Gas Emissions in Production Intensity Relative to FY1990 Level

Changes in Greenhouse Gas Emissions in Production Intensity Relative to FY1990 Level

Energy Consumption (crude oil equivalent)

Energy Consumption (crude oil equivalent)

Greenhouse Gas Emission Volume Trends

Greenhouse Gas Emission Volume Trends

Greenhouse Gas Emission Volume Trends(sales intensity)

Greenhouse Gas Emission Volume Trends(sales intensity)

  • * Sales Intensity=emission(CO2-tons) / Consolidated or non-consolidated sales(million yen)
  • * Scope of aggregation of greenhouse gas emissions Shin-Etsu Group: Group companies include nonconsolidation Five chemical companies(expect Shin-Etsu Group): 3 consolidated, 1 major group companies, 1 non-consolidated

TCFD

  1. 1 TCFD
    TCFD (The Task Force on Climate-related Financial Disclosures) It is a special team focusing on climate change disclosure, and was established by the Financial Stability Board (FSB) in September 2015. In July 2017, the TCFD has published a set of recommendations in which it calls for corporations to disclose the impacts of climate change ,which was forecasted for mid to long-term, to their financial reports.
  2. 2 TCFD Consortium of Japan
    It is a group established by the Ministry of Economy, Trade and Industry, the Financial Services Agency, and the Ministry of Environment in May 2019.Companies and financial institutions who agree with the recommendations from TCFD aim to promote the effective disclosure of information by companies and the efforts to link the disclosed information to appropriate investment decisions by financial institutions or any other investors.

Thermal energy recycling initiatives

Each plant in Shin-Etsu Chemical is working on the recycling of thermal energy.

Flow of steam and electricity at the plant

Flow of steam and electricity at the plant

■ Intruducing Cogeneration

Steam and electricity are produced in a plant using a cogeneration system1. Electricity made with the cogeneration system is supporting the operation of manufacturing. In addition, steam is being used for heating and thermal insulation for manufacturing equipment. Steam used for heating will not be emitted but will be reused for manufacturing equipment in which steam with lower temperature can be used. The steam is finally changed into water to be collected and recycled.

■ Waste heat recovery

Heat is recovered from the production process and is used as thermal energy in another process. Furthermore, the remaining waste heat is mainly collected as steam to make cold water in the absorption refrigerator. This chilled water is used for cooling the manufacturing equipment, etc.

  • 1 Cogeneration system (heat and power combined)
    This system generates power with engines, turbines and fuel cells using natural gas, petroleum, liquefied petroleum gas, etc. and simultaneously collects heat which would be generated.

Scope 3 Greenhouse Gas Emissions

The Group's Scope 3 greenhouse gas emissions for FY2019 were 17,315 thousand tons of CO2, amounting to 76% in the supply chain1.

  • 1 Supply chain
    All stages of a product from raw material production until it reaches the final customer.

Related Information

Environmental Data

Scope 3 Emissions by Category in FY2019 (unit: thousand of tons CO2e)

2018年度 カテゴリー別スコープ3排出量(単位:千CO2-トン)

  • Greenhouse Gas Emission Calculation Range
    SCOPE 1: Direct emissions from facilities it owns or governs (example: emissions during combustion of materials such as heavy oil and natural gas).
    SCOPE 2: Emissions during production of purchased energy (example: emissions during power generation of purchased power).
    SCOPE 3: Emissions from the supply chain.

Shin-Etsu Chemical's products that contribute to actions to combat climate change

Shin-Etsu Chemical's productsthat contribute to actions to combat climate change

The Group's products are contributing to actions to combat climate change, as they are used for a wide range of final products worldwide. This helps achieve Goal 7 of the Sustainable Development Goals (SDGs), "Affordable and clean energy," and Goal 13 of the SDGs, "Climate action." Sales in FY2019 of products that contributed to these two goals were 186 billion yen.

Related Information

Shin-Etsu Group and SDGs

Shin-Etsu Group and Climate Change