CO2 Reduction Measures
Basic Approach
SHI Group recognizes that responding to climate change is a key challenge in managing our environment. Of the strategies we are implementing to reduce our environmental footprint across all business activities including product lifecycle, our top priority has been to reduce CO2 emissions.
Each month, the Environmental Management Division supervises results achieved by each business division and provides feedback to those in charge. In addition, these results are reported to management three times a year at meetings of the Executive & Operating Officers Committee. SHI Group divisions promote climate change adaptation by mobilizing all personnel in these efforts, making sure their activities are visible, and implementing them to improve various processes so that the outcome is more efficient utilization of energy.
Scope 1, 2
Reduction of CO2 Emissions During Product Manufacture
Although SHI Group’s CO2 emissions during product manufacture in Japan increased 4.4% compared to FY2019 levels in FY2023 due to the increase in operations and utilization of new plant building capacity, our business divisions and affiliates have implemented a range of reduction measures. During the four-year period from 2020 to 2023 (term of the 6th Medium-Term Environmental Plan), we achieved a reduction of approximately 5.7% compared to FY2019 levels.
Under the 7th Medium-Term Environmental Plan, we will continue to take a proactive approach that includes updating to more energy efficient equipment, optimizing facilities, and cooperating with engineering division to re-examine reduction measures. We will also be promoting the same level of activities on a global scale.
Improvements in Energy Productivity
SHI Group has set and managed metrics for emissions as well as energy productivity (sales/CO2 emissions) as part of our efforts to enhance production efficiency and carry out activities aimed at reducing CO2 emissions. For FY2023, we raised our target to a 4% improvement over the FY2019 level for our activities, which we achieved with a 19.8% improvement in Japan and a 18.2% improvement overseas.
Under the 7th Medium-Term Environmental Plan as well, we will continue to set management metrics in our aim to further improve production efficiency. We will proactively invest in energy efficient equipment in addition to implementing activities to conserve energy in terms of management and operations that will include setting and practicing non-operating days, updating to high-efficiency equipment, and reducing equipment and facility standby power usage.
Adoption of Renewable Energy
SHI Group has promoted adoption of renewable energies. Since 2020, we have proceeded to install solar power generation systems at new buildings of our SHI Group plants. In FY2023, an additional 1,203 MWh became available for a cumulative global capacity equivalent to 4,415 MWh.
We are continuing to actively set up systems both in Japan and around the world to achieve our intermediate benchmark of a 50% reduction by 2030 in comparison to FY2019 of CO2 emissions during product manufacture. In addition, we have also planned purchases of renewable energies. In FY2023, these purchases amounted to 68,202 MWh globally. The scale of these purchases is determined by taking into consideration the installation of solar power generation systems chiefly for new buildings and the reduction in CO2 emissions of 1% annually through a variety of energy-saving measures. We are promoting CO2 emission reductions with the aim of being carbon neutral by 2050.
Scope 3
Promotion of Green Logistics
SHI Group is endeavoring to eliminate waste and enhance efficiency in product transport in order to reduce CO2 emissions. In FY2023, we achieved our domestic target, achieving a 8.1% reduction vis-à-vis our target of maintaining a level no greater than that in FY2019 per basic unit of shipping (t-CO2/weight).
Under the 7th Medium-Term Environmental Plan also, we will continue to improve and optimize load factors, effectively utilize modal mixes, and engage in other efforts to reach our target.
CO2 Emissions (t-CO2) Across Entire Product Lifecycle
In FY2023, product lifecycle CO2 emissions amounted to 76,918,000 tons, of which CO2 emissions during product use accounted for 98.1% or 75,463,000 tons. To reduce CO2 emissions across the product lifecycle, we recognize that increasing the number of and providing products that deliver outstanding resource and energy savings (Sustainability Plus Products) is an important business challenge for us in addressing climate change. We are actively improving our products, developing applicable technologies, and making other efforts so that we may offer even more of these superior products.
In addition, we are also focusing on building a cooperative framework with our suppliers to extend coverage of CO2 emissions associated with raw material procurement, which is categorized as Scope 3 and has the second-highest ratio of emissions after CO2 emitted during product use.
Endorsement of Japan Climate Initiative
SHI Group has endorsed the message of the Japan Climate Initiative (JCI): “Now is the time to accelerate renewable energy deployment: Calling for stronger climate change action in the midst of the fossil energy crisis.” So that we may be a world leader in striving to achieve the 1.5°C target, we will accelerate our own activities to increase energy efficiency and renewable energy use as well as strengthen collaboration with non-state actors domestically and internationally as part of our efforts to bolster initiatives that contribute to achieving net zero CO2 emissions by 2050.