Energy-saving, resource-saving, and reduction of environmental impacts
Policy
The Group will further promote energy conservation and the effective use of resources, and work to resolve a variety of environmental issues for the future of the Earth.
Awareness of Issues
We recognize that specific measures to combat climate change, the efficient use of limited resources, and a circular economy1 are key issues that companies face. The Group is committed not only to contributing to the global environment, but also to enhancing our competitiveness and achieving sustainable development through efforts to conserve energy, effectively use resources, and reduce the environmental impact of our manufacturing processes.
- 1Circular economy
Economic activities to recycle and circulate existing resources, such as converting waste after use into resources for another business
- Environment Management
- Response to Climate Change
- Resource Saving
- Biodiversity and Pollutant Countermeasures
Mid-term target
Reduce greenhouse gas emissions in terms of production intensity to 45% of the FY1990 level
by FY2025.1
Results and evaluation in FY2022
Acheives reduction to 54.2% for the Shin-Etsu Group2 and 46.8% for Shin-Etsu
Chemical.
FY2022
Target：
Reduce energy consumption in terms of production intensity at an average annual rate of 1%.
Results：
The average annual reduction rate from FY2019 to FY2022 was 0.7% increased for the Shin-Etsu
Group.
Evaluation：
The target was not achieved.
FY2023
Target：
Reduce energy consumption in terms of production intensity at an average annual rate of 1%.
- 1: For the calculation of emissions, CO2 emission factors for electricity are averaged from 2000 to 2009 so that efforts to reduce electricity can be clarified.
- 2: Includes non-consolidated group companies.
Results
In order to take concrete measures against climate change, the Sustainability Committee, chaired by the President, works with each department to tackle these important issues.
Starting from FY2010, the Group has implemented energy-saving strategies and installed a cogeneration system as well as innovative technologies, in order to achieve the mid-term goal of reducing greenhouse gas emissions in terms of production intensity to 50% of the FY1990 level by FY2015. Furthermore, in FY2016, we set a new mid-term target of reducing greenhouse gas emissions in terms of production intensity to 45% of the FY1990 level by FY2025, and we have been working towards that goal. In FY2020, we started reducing purchased electricity consumption through cogeneration system by deploying gas turbines at our overseas plant, and in FY2022, we deployed them at our domestic plant.
Related Information
Shin-Etsu Group and Climate Change
Changes in Greenhouse Gas Emissions in Terms of Production Intensity Relative to the FY1990 Level
Energy Consumption (crude oil equivalent)
Greenhouse Gas Emission Volume Trends
Greenhouse Gas Emission Volume Trends(Ordinary income intensity)3
- 1 Scope 1
Direct emissions from facilities you own or control (e.g., fuel oil, natural gas) -
2 Scope 2
Emissions from the production of energy purchased by the company (e.g., purchased electricity, steam) - 3 Greenhouse Gas Emission Volume Trends (Ordinary income intensity)
・ Ordinary income intensity = emissions (CO2-ton) / consolidated or non-consolidated ordinary income (million yen)
・Scope of calculation for 5 chemical companies other than Shin-Etsu: 4 consolidated companies and 1 major group company
*In cases where emissions were reported to national governments, the reported values were retroactively used for Scope 1 and Scope 2 calculations.
Thermal Energy Recycling Initiatives
Each plant in Shin-Etsu Chemical is working on recycling thermal energy.
Flow of steam and electricity at the plant
■ Installation of a Cogeneration System
Steam and electricity are produced in a plant by using a cogeneration system.1 Electricity produced by the cogeneration system supports manufacturing operations. In addition, steam is used for heating and the thermal insulation of manufacturing equipment. The steam used for heating will not be emitted but reused for manufacturing equipment that can handle low-temperature steam. Eventually, the steam is converted 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 collected mainly as steam to make cold water in the absorption refrigerator. This chilled water is used to cool 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 the generated heat as steam. Effective use of both electricity and waste heat can reduce CO2 emissions and improve economic efficiency through energy conservation.
Scope 3 Greenhouse Gas Emissions
The Group's scope 31 greenhouse gas emissions for FY2022 were 11,139 thousand tons of CO2 , amounting to 63% of the supply chain.2
-
1 Scope 3
Emissions from your own supply chain -
2 Supply chain
All stages of a product from raw material production until it reaches the final customer
Scope 3 Emissions Calculation Methods
| Category | Category definition | Emissions (Unit: thousand CO2 tons) | Amount of activity | Source of emission intensity used |
|---|---|---|---|---|
| 1.Purchased goods and services | Emissions from activities leading up to the production of raw materials and parts, purchased products, and sales materials | 5,588 | Volume of raw materials purchased | Ministry of the Environment Emissions Source Database (Ver. 3.3) IDEA v2 Emissions per unit of production obtained from suppliers |
| 2.Capital goods | Emissions from the construction and manufacture of the company's capital goods | 868 | Increase in property, plant and equipment and intangible assets | Ministry of the Environment Emissions Source Database (Ver. 3.3) |
| 3.Fuel-and energy-related activities not included in Scope 1 and 2 | Emissions associated with mining and refining of procured fuel Emissions associated with mining and refining of fuel used to generate electricity procured |
954 | Total amount of energy purchased | Ministry of the Environment Emissions Source Database (Ver. 3.3) |
| 4.Transportation and delivery(upstream) | ①Emissions associated with logistics from suppliers of products and services purchased in the fiscal year covered by the report to the company. | 716 | Weight of purchased raw materials and the transportation distance of raw materials | Energy Conservation Law (ton-kilometers method) IDEA v2 |
| ②Emissions associated with logistics services other than ① purchased in the fiscal year covered by the report (emissions associated with logistics incurred by the company) | Product transport volume and distance (at the company's expense) |
Energy Conservation Law (ton-kilometers method) | ||
| 5.Waste generated in operations | Emissions from the transport and treatment of waste generated in-house | 47 | Amount of Waste by Type | Ministry of the Environment Emissions Source Database (Ver. 3.3) |
| 6.Business Trip | Emissions from employee business trips | 2 | Total number of days traveled by type | Ministry of the Environment Emissions Source Database (Ver. 3.3) |
| 7.Employer's commutation | Emissions due to transfer when employees commute to the office | 24 | Commuting expenses such as commuter pass expenses | Ministry of the Environment Emissions Source Database (Ver. 3.3) |
| 8.Leased assets(upstream) | Emissions from the operation of leased assets leased by the company | - | Exclusion from calculation (The Group covers leasing of non-production bases overseas, but does not cover it due to the small amount) |
|
| 9. Transportation and delivery(downstream) | Emissions associated with the distribution of products sold by the company to final consumers (not borne by the company) | 244 | Volume and Distance of ProductTransportation (at the customer's expense) | Energy Conservation Law (ton-kilometers method) IDEA v2 |
| 10. Processing of sold products | Emissions from the processing of intermediate products by businesses | - |
Non-applicable (Application of WBCSD's Chemical Sector Guidelines: "Chemical companies are not required to report Category 10emissions due to the difficulty of obtaining reliable figures due to the diverse use and client mix.") |
|
| 11. Use of sold products | Emissions from the use of products by users (consumers and businesses) | - |
Non-applicable (Application of WBCSD Guidelines for the Chemicals Division: "If an end-user of a chemical is unknown, a chemical company should not include indirect use phase emissions in its inventory.") |
|
| 12.End of life treatment of sold products | Emissions from the disposal of products by users (consumers and businesses) | 2,696 | Volume of products | Ministry of the Environment Emissions Source Database (Ver. 3.3) IDEA v2 |
| 13.Leased assets(downstream) | Emissions from the operation of leased assets | - |
Non-applicable (We do not have any assets leased to other companies.) |
|
| 14. Franchise | Emissions by franchisees | - |
Non-applicable (We are not a franchised entity.) |
|
| 15. Investment | Emissions associated with the operation of investments | - |
Non-applicable (There is no investment for profit.) |
|
| Scope 3 total emissions | 11,139 | |||
*From FY2022, we changed the emission factors related to Category 1 raw material procurement, Category 4-①, and Category 9 delivery by ship.
Support for TCFD recommendations
Support TCFD's recommendations In May 2019, the Shin-Etsu Group announced its support of the recommendations from the TCFD.1We also participated in the TCFD Consortium of Japan.2 We will continue to share information regarding climate change in line with the TCFD recommendations.
- 1 TCFD
The Task Force on Climate-related Financial Disclosures (TCFD) 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 published a set of recommendations calling for corporations to analyze their risks and opportunities based on future scenarios and various mid to long-term predictions of climate change, and to disclose the impact on their finances. - 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 the Environment in May 2019. Companies and financial institutions that 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 and other investors.
Related Information
Employee Initiatives
Ms. AR,
Environmental and Regulatory Department,
Shin-Etsu Silicones of America (USA)
1.Please tell us about your current responsibilities.
After joining the company, I was assigned to the Environmental Health and Safety Department and received training on health and safety, as well as state and global regulations.
I am now in charge of the Environmental and Regulatory Department at Shin-Etsu Silicones of America, Inc. and facilitate all local, state, national, and global regulatory and environmental concerns for our company.
I am also a member of the Global Silicones Council1 on behalf of Shin-Etsu Silicones of America and Shin-Etsu Chemical, as well as chairing Silicones Environmental, Health, and Safety Center (SEHSC)’s Regulatory and Public Affairs Committee of the Center for the Environment, Health and Safety of Silicones.
2. How is the plant working to reduce its environmental impact?
We are currently focusing on energy conservation and waste reduction by reducing power consumption.
In the last several years, we have upgraded our facility to help reduce electrical usage, changing several manufacturing processes to reduce waste generation. Additionally, we are committed to promoting environmental excellence and have been awarded the Ohio EPA Environmental Excellence E3 Award in 2021.
3. What kind of initiatives are you taking at your plants to achieve the Shin-Etsu Group's medium-term goal of reducing greenhouse gas emissions?
In order to achieve the reduction target by 2025, we are working on temperature control of the entire manufacturing site, upgrading our lighting through LED swap and timers/dimmers. Going forward, we intend to reduce our CO2 emissions by correcting process and building insulation, purchasing 100% of green credits for electricity, and replacing inefficient boilers/additional equipment throughout our facility.
4. Are you educating your employees on climate change measures such as reducing greenhouse gas emissions?
We provide training on waste measures, environmental reduction plans through EPA exemptions, and recycling. We mainly use ISO 14001 for climate change related education. ISO 14001 is an international standard for environmental excellence, driving environmental performance which focus on waste reduction and efficiency of resources. And also, we hold annual online training dedicated to understanding the scope of SESA’s manufacturing environmental goals and ways in which our employees can help contribute to a more sustainable, environmental-friendly campus.
5. What do you intend to focus on in the future with regard to responding to climate change?
Climate change is an ever-present concern for the future of our world. We are proud that silicones manufactured at our facility help contribute to green-house gas reduction, as they promote energy efficiency and transition, product longevity, and waste reduction. We intend to focus our scope of future in-plant work to transitioning to a more efficient facility in order to reduce our CO2 emissions. Lastly, we want to be proactive to new technology and review the ability for those technologies to help us grow an environmentally-driven culture that allows us to not just meet, but also exceed our environmental goals- becoming the best environmental stewards we can to support our community.
- 1Global Silicone Council(GSC)
Not-for-profit, international organization representing companies that produce and sell silicone products around the world. Among the GSC’s objectives are to promote the safe use and stewardship of silicones globally.