Energy-Saving, Resource-Saving and Reduction of the Environmental Impact
Reduce greenhouse gas emissions in terms of production intensity to 45% of the ＦＹ1990 level by ＦＹ2025.1
Results and evaluation in FY2020
Acheives rediction to 53.6% for the Shin-Etsu Group2 and 49.8% for Shin-Etsu Chemical.
Target：Reduce energy consumption in terms of production intensity at an average annual rate of 1%.
Results：The average annual reduction rate from FY2018 to FY2020 was 0.2% for the Shin-Etsu Group and 1.6% increased for Shin-Etsu Chemical.
Evaluation：The target was not acheived..
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.
In order to take concrete measures against climate change, the Sustainability Promotion 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 FY2019, we started reducing power consumption by deploying cogeneration systems with gas turbines among other initiatives.
In May 2019, the Shin-Etsu Group announced its support of the recommendations from the TCFD.1 We also participated in the TCFD Consortium of Japan.2 We will continue to share information regarding climate change in line with the TCFD recommendations.
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(sales intensity)
- ＊ Sales intensity = Emission (tons of CO2) / Consolidated or non-consolidated sales (million yen)
- ＊ Scope of aggregation of greenhouse gas emissions of the Shin-Etsu Group: Group companies refer to five chemical companies (except for the Shin-Etsu Group), including four consolidated companies, one major group company.
- 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.
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 3 greenhouse gas emissions for FY2020 were 10,208 thousand tons of CO2, amounting to 63% of the supply chain.1
1 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||5,117||Volume of raw materials purchased||Ministry of the Environment Emissions Source Database
(Ver. 3.1) 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||625||Increase in property, plant and equipment and intangible assets||Ministry of the Environment Emissions Source Database
|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
|799||Total amount of energy purchased||Ministry of the Environment Emissions Source Database
|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.||882||Weight of purchased raw materials and the transportation distance of raw materials||Energy Conservation Law (ton-kilometers method)|
|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||40||Amount of Waste by Type||Ministry of the Environment Emissions Source Database
|6.Business Trip||Emissions from employee business trips||2||Total number of days traveled by type||Ministry of the Environment Emissions Source Database
|7.Employer's commutation||Emissions due to transfer when employees commute to the office||21||Commuting expenses such as commuter pass expenses||Ministry of the Environment Emissions Source Database
|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)||146||Volume and Distance of ProductTransportation (at the customer's expense)||Energy Conservation Law (ton-kilometers method)|
|10. Processing of sold products||Emissions from the processing of intermediate products by businesses||-||
(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)||-||
(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)||2,576||Volume of products||Ministry of the Environment Emissions Source Database
|13.Leased assets(downstream)||Emissions from the operation of leased assets||-||
(We do not have any assets leased to other companies.)
|14. Franchise||Emissions by franchisees||-||
(We are not a franchised entity.)
|15. Investment||Emissions associated with the operation of investments||-||
(There is no investment for profit.)
|Scope 3 total emissions||10,208|
|Scope1,2,3 total emissions||16,300|
*After reviewing the calculation targets and methods with reference to the Ministry of the Environment, the Ministry of Economy, Trade and Industry's Basic Guidelines on the Calculation of Greenhouse Gas Emissions through the Supply Chain (Version 2.3), and WBCSD's Guidance on the Calculation and Reporting of Corporate GHG Emissions in the Chemicals Sector Value Chain, Category 10 was not included, and the calculation methods forCategories 1, 4, 6, and 12 were changed.
Shin-Etsu Chemical Products that Contribute to Actions to Combat Climate Change
The Group's products contribute to actions to combat climate change because they are used in a wide range of final products in each country. This helps to achieve goals 7 and 13 of the Sustainable Development Goals (SDGs) which are "Affordable and Clean Energy" and "Climate Action," respectively. Sales of products that contributed to these two goals amounted to 212 billion yen in FY2020.
*The scope of the reporting organization was changed from Shin-Etsu Chemical and its group companies, including non-consolidated companies, to Shin-Etsu Chemical and its consolidated companies, retroactive to FY2018.
*Emissions were calculated using CO2 emission factors of power suppliers retroactive to FY2018.