In its business activities, including procurement, manufacturing and logistics, Sumitomo Heavy Industries Group has been taking measures to reduce CO2 emissions by positioning it as the most important issue.
In the Sumitomo Heavy Industries Group, activities to prevent global warming are positioned as a part of environmental management with discussions conducted at evaluations by the President on visits to the manufacturing floor. The results from each business division are fed back for monthly processing at the Environmental Management Division. The results are also announced at the quarterly meetings of the Executive Board.
Each division in the Group promotes activities to prevent global warming and is engaged in activities to improve a range of processes in order to further enhance the efficient use of energy and to "visualize" activities and initiatives through "the participation of all employees."
The Sumitomo Heavy Industries Group started to take action in FY2005 with the First Medium-Term Environmental Plan to reduce CO2 emissions by 10% from FY2004 levels by FY2007. As of FY2011, we launched the Third Medium-Term Environmental Plan aiming to further reduce CO2 emissions by 19% from the FY2004 level by FY2013. Compared to the benchmark year of FY1990 for the Kyoto Protocol, the target is to achieve a 28% reduction.
In FY2012 we were able to control emissions to far exceed the target with a 36% reduction (21% reduction in the basic unit) over FY2004 levels and a 43% reduction over FY1990 levels.
For other countries, we have set a target of 2% reduction year on year taking production increases into account. The emissions volume is trending upward because of the new establishment and expansion of factories in countries like China, where the CO2 emissions coefficient is higher. For fiscal year 2012, we achieved the target value for the year with a 7% reduction in emissions.
The combined target value for Japan and other countries is total emissions of 161,000 tons, which represents a 19% reduction from the fiscal 2004 reference value in Japan and an annual 2% reduction in other countries. The target was achieved with an actual figure of 139,000 tons, which represents a 14% reduction from the target value.
Starting in fiscal year 2009, Sumitomo Heavy Industries Group has been taking the characteristics of Group businesses into account and using the new unified index of energy productivity (net sales/CO2 emissions: the reciprocal of the basic unit) in Japan. We are pursuing management and operation on a monthly basis at each business unit (BU).
For fiscal year 2012, we declared a 6% increase over fiscal year 2008 as the target for our program. We achieved this target with an 18% increase at our principal production bases in Japan.
The target for our programs in other countries was set at 1% increase year on year. We achieved this target in fiscal year 2012 with an increase of 5.3%.
The combined figure for Japan and other countries shows a 6% decline because of the increase in CO2 overseas.
Going forward, we will continue to promote the following measures.
In transportation, we have been making efforts to reduce CO2 emissions by eliminating waste and by improving efficiency. With FY2006 as the benchmark year, we aimed to achieve an 13% reduction in the basic unit of transportation (t-CO2/weight) in FY2012. We promoted such measures as improving loading ratios and switching to modal shift in fiscal year 2012, but the reduction was limited to 4% due to the decline of sales in other countries relative to the reference year and the increase in long-distance truck transport to the Tohoku Region to meet earthquake recovery demand. In terms of total CO2 volume, however, the reduction was 37%.
For our fiscal year 2013 activities, we are setting a target of 14% reduction relative to fiscal year 2006.
Reducing paper use is part of activities to save resources and at the same time, it is linked to activities to prevent global warming such as reducing CO2 emissions in the papermaking process. In FY2013, the Sumitomo Heavy Industries Group aims for a 45% reduction compared to FY2005 levels.
In FY2012 we exceeded the target of a 43% reduction over FY2005 levels with a reduction of 54%.
The Sumitomo Heavy Industries Group has created systematic and voluntary standards across the Group such as carrying out Lifecycle Assessments*, improving recycling rates at the time of disposal, reducing the volume of packaging, curtailing harmful substances contained in products, and developing products that consume less energy, weigh less, are more compact and last longer. We have launched initiatives for continuous improvements and evaluation based on these standards.
In fiscal year 2012, therefore, we have been able to add another four products to the 11 "environmentally friendly first-class products" we had already designated.
The 11 products were the biomass boiler, compact 25-ton biomass boiler, and dry-type desulphurization equipment (Energy & Environment Group); hydraulic excavator and asphalt finishers (Sumitomo (S.H.I.) Construction Machinery Co., Ltd.); bag filter (Nihon Spindle Mfg. Co., Ltd.); electric-powered reach forklifts (Sumitomo NACCO Materials Handling Co., Ltd.); plastic injection molding machines (Plastics Machinery Division); turbines with longer blades (Shin Nippon Machinery Co., Ltd.); hot forging presses (Industrial Equipment Division); and dividing-wall distillation columns (Sumiju Plant Engineering Co., Ltd.). The four added products are kiln equipment (Energy & Environment Group); a hybrid electric power source for transfer cranes (Sumitomo Heavy Industries Material Handling Systems Co., Ltd.); the Cle-Eco Ⅲ (Nihon Spindle Mfg. Co., Ltd.); and the SHX-III/S ion implantation system (SEN Corporation).
* Lifecycle Assessment: A method of objective and quantitative evaluation of environmental impact throughout the lifecycle (all stages from extracting the resources to manufacturing, use, disposal and transportation) of products and services