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Climate Change: Initiatives Aimed at Carbon Neutrality
Climate Change: Initiatives Aimed at Carbon Neutrality
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.
Current Reduction Measures
We are currently working on the following reduction measures. We will also focus on considering new reduction measures.
| Reduction measures | Details |
|---|---|
(1)Power-related |
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(2)Improvement and innovation of manufacturing technologies, etc. |
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(3)Utilization of carbon-neutral natural gas (natural gas with emission credits), hydrogen, etc. |
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(4)Promotion of recycling |
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For concrete examples of initiatives, please see Reduction of environmental impact in plants.
Reducing greenhouse gas emissions by participating in “Local production for local consumption type PPA (Gunma model)”
In March 2024, Shin-Etsu Chemical decided to participate in the “Local production for local consumption type PPA”* (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%.
*PPA
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
Gunma PPA model (based on materials provided by Gunma Prefecture)
Shin-Etsu Wins Chairman's Award in Industrial Category at COGENERATION AWARD 2023
Shin-Etsu Chemical’s Gunma Complex and Naoetsu Plant have installed cogeneration systems* 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. Presenting the award, the selection committee noted, “The cogeneration system shares steam between two widely separated plants with different thermoelectric ratios to ensure that the plants’ ratios stay in balance. In addition, the installation of large-scale cogeneration facilities has dramatically improved the self-sufficiency rates for electricity and heat. We were also highly impressed by the way the system incorporated every possible preparation for power outages.”
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.
*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.
Related information
Initiatives toward 2050
Measures of the reductions currently supposed are as follows.
| Reduction measures | Details |
|---|---|
(1)Power-related |
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(2)Utilization of green and blue hydrogen |
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(3)Continued improvement of manufacturing technologies, etc. |
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(4)CO2 separation and recovery, and utilization |
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(5)Utilization of biomass fuel |
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(6)Promotion of recycling |
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(7)Carbon offset |
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The Group's reduction measures
*“Manufacturing methods, improvements and innovations, etc.” includes the use of hydrogen, use of biomass fuel, and promotion of recycling. “Related to electric power” includes the purchase of renewable energy and the installation of solar power generation equipment.
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.
As our US subsidiary Shintech, Inc. plans to increase its production capacity in the years ahead, the Group’s greenhouse gas emissions are expected to increase around 2025, but we will continue to work to reduce emissions to achieve carbon neutrality by 2050.
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* 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) |
*Modal 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 FY2022 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*1 | Products and technologies listed in the Green Growth Strategy | Shin-Etsu Chemical Group products and technologies that contribute to green growth strategies*2 |
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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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*1Source: "Green Growth Strategy Through Achieving Carbon Neutrality in 2050"(announced by the Japanese government in June 2021)
*2Future 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
*3Semiconductor 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).
Key Sustainability Issues
- The foundation of all activities: legal compliance, fair corporate activities
- Health and safety of employees and contractors
- Energy-saving, resource-saving, and reduction of the environmental impacts
- Product quality improvements and product safety control
- Promoting CSR procurement and the diversification of supply sources
- Respect for human rights, the development of human resources, and the promotion of diversity
- Respect for and protection of intellectual property
- Contribution to industry and social initiatives
- Accurate and timely information disclosure and communication with stakeholders