お問い合わせClimate Change: Initiatives Aimed at Carbon Neutrality
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Measures for Achieving Carbon Neutrality by 2050
The Shin-Etsu Group has formulated a plan to reduce greenhouse gas emissions (Scope 1 and Scope 2) to net zero, with the aim of achieving carbon neutrality by 2050.
Initiatives Aimed at Carbon Neutrality
The Group is investing in the construction of new plants and expansion projects in each of our businesses to drive growth. These investments are focused on maximizing productivity and energy efficiency. A prime example is the new plant at Shintech, Inc. in the U.S., which was completed and started operation in 2024. However, it is not possible to reduce the CO2 emissions associated with new facility expansion to zero with currently available technology.
We will continue to maximize the productivity and energy efficiency of our existing plants, install the latest technologies at the time of new facility expansion, and address the challenges outlined in "Initiatives Aimed at Carbon Neutrality" below as we work to become carbon neutral by 2050.
Initiatives Aimed at Carbon Neutrality
The Group's Reduction Measures
The components of reduction measures toward 2050 that the Company currently supposes are as described in the above pie chart. We will select the optimal ways to reduce emissions as technology evolves in the future.
Reducing greenhouse gas emissions by deploying renewable energy in Thailand
Three Shin-Etsu Group companies in Thailand—Shin-Etsu Silicones (Thailand), Ltd., Asia Silicones Monomer Ltd., and Shin-Etsu New Materials (Thailand) Ltd.—will receive renewable energy from a biomass cogeneration system from NS-OG Energy Solutions (Thailand) Ltd. (NSET), a joint venture between Nippon Steel Engineering Co., Ltd. and Osaka Gas Co., Ltd. The project is proceeding with the aim of starting energy delivery in 2027.
NSET’s renewable energy supply business is an initiative selected by the Ministry of the Environment’s “Financing Programme for Joint Crediting Mechanism (JCM) Model Projects”*1 in FY2024. NSET will install and manage the operation of the relevant facility at Shin-Etsu Silicones (Thailand), Ltd site and supply all the renewable energy (electricity and steam) produced using Thai wood chips as fuel to the three companies.
The new energy sourced through this initiative will cover a portion of the energy used by the three companies. This initiative is expected to reduce the combined greenhouse gas emissions of the three companies by approximately 48,000 t-CO2 per year.
*1Financing Programme for Joint Crediting Mechanism (JCM) Model Projects In that Programme, JCM model projects aim to reduce greenhouse gas emissions by utilizing leading decarbonization technologies in developing countries and other such regions while implementing Measurement, Reporting, and Verification (MRV) of these reductions. The goal is to help achieve greenhouse gas emission reduction targets in Japan and partner countries through the JCM while also reducing emissions in developing countries and other such regions. Model projects receive subsidies covering up to half of the initial investment costs for leading decarbonization technologies. The Programme is being implemented in collaboration with the Thai and Japanese governments.
Conceptual Framework of the Project Scheme
Participation in “Local production for local consumption type PPA (Gunma model)”
As an initiative to reduce emissions from electric power, in March 2024, Shin-Etsu Chemical decided to participate in the “Local production for local consumption type PPA”*2 (hereinafter, “Gunma Model”) offered by Gunma Prefecture.
The Gunma Model is a new system that supplies electricity from Gunma Prefecture's hydroelectric power plants to businesses in Gunma Prefecture. The electricity generated by hydroelectric power generation is green electricity that does not emit greenhouse gases. The new electricity procured through this program will cover all of the electricity used at the Yokonodaira Plant at Shin-Etsu Chemical's Gunma Complex, enabling the plant to reduce its greenhouse gas emissions by approximately 90%.
*2PPA
Abbreviation for "power purchase agreement." A type of contract in which an electricity user purchases electricity from a power producer at a fixed unit price for a fixed period of time.
Hydroelectric power plant in Gunma Prefecture
(Based on materials provided by Gunma Prefecture)
Installation of cogeneration systems
Shin-Etsu Chemical’s Gunma Complex and Naoetsu Plant have installed cogeneration systems*3 that use natural gas to produce steam and electricity to support the operation of their manufacturing facilities. In November 2022, the Gunma Complex added two gas turbine generators at the Isobe Plant and one at the Matsuida Plant in order to reduce greenhouse gas emissions.
These cogeneration systems were awarded the Chairman's Award in the Industrial Category, the highest award, at COGENERATION AWARD 2023 sponsored by the Advanced Cogeneration and Energy Utilization Center JAPAN. With the introduction of these cogeneration systems, the Isobe and Matsuida plants were able to achieve a self-sufficiency rate of 100% and reduce CO2 emissions by approximately 24,000 t-CO2 per year in the future.
*3Cogeneration 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.
Other Initiatives to Help Realize a Carbon-neutral Society
Initiatives for Carrying Out Life Cycle Assessment
By conducting life cycle assessment, the Group will contribute to the reduction of greenhouse gases throughout the supply chain.
Reduction of Greenhouse Gas Emissions in Logistics
We are working to reduce greenhouse gas emissions during product transportation. This initiative will contribute to the reduction of scope 3 greenhouse gas emissions.
| Examples | Scope 3 emissions categories contributing to reductions |
|---|---|
| Modal shift*1 in methanol transport (switched from tank truck to railcar) |
Category 4: "Emissions from product transport" |
| Modal shift in silicon wafer transport (switched from aircraft to ocean vessel) |
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| Modal shift in silicone products transport (switched from truck to railcar) |
*1Modal shift
Shifting from trucks and other freight transports to railways or ships with less environmental impact.
Expand Manufacturing and Sales of Products That Contribute to Reducing Greenhouse Gas Emissions
Our group's products are used in a wide range of fields, including housing, infrastructure, electric vehicles, DX and GX, and support the foundations of people’s lives and industries. Many of these products also help reduce greenhouse gases. In June 2021, The Japanese government has identified 14 essential areas to aim for carbon neutrality in 2050. The ratio of sales in these 14 areas to the Group's consolidated sales in FY2024 is approximately 70%. We will continue to contribute to the carbon neutrality of society as a whole by focusing on developing, manufacturing, and expanding sales of these products.
14 Growth Sectors
| 14 areas of expected growth*2 | Products and technologies listed in the Green Growth Strategy | Shin-Etsu Chemical Group products and technologies that contribute to green growth strategies*3 |
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 (1)Offshore wind, solar and geothermal industries |
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 (2)Hydrogen and fuel ammonia industry |
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 (3)Next-generation heat energy industry |
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 (4)Nuclear power industry |
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  (5)Automotive and storage battery industry |
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 (6)Semiconductor and information and communication industry |
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 (7)Shipbuilding industry |
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 (8)Logistics, people flow and civil engineering infrastructure industry |
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  (9)Food industry, agriculture, forestry and fisheries |
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 (10)Aircraft industry |
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 (11)Carbon recycling and materials industry |
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 (12)Housing, building industry, and next-generation electric power management industry |
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 (13)Resource circulation industry |
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 (14)Lifestyle-related industries |
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*2Source: "Green Growth Strategy Through Achieving Carbon Neutrality in 2050"(announced by the Japanese government in June 2021)
*3Future products are included. The colors of the letters of products and technologies indicate business segments.
- Infrastructure Materials
- Electronics Materials
- Functional Materials
- Processing, Trading & Specialized Services
*4Semiconductor materials refer to silicon wafers, photoresists, mask blanks, sealing materials, pellicles, synthetic quartz glass substrates, high-purity silane, etc. Semiconductor materials fall under the semiconductor industry in field (6), but semiconductors manufactured using semiconductor materials contribute to control systems and other applications in a variety of fields, so they are also listed in fields other than (6).