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
SHI Group’s CO2 emissions during product manufacture decreased approximately 1.3% against our target of reducing CO2 emissions equivalent to 1% of FY2019 CO2 emissions. ※
Although the decrease in production volume had an impact on CO₂ emissions, we have seen the results of initiatives tailored to each business, including the development and implementation of plans to reduce CO₂ emissions through lead time reduction and the promotion of electrification.
Going forward, we will continue to proactively implement CO₂ reduction initiatives by upgrading to energy-efficient equipment, optimizing facilities, and reviewing reduction measures in collaboration with our engineering divisions. We will also promote the same level of initiatives across our global operations.
※Baseline: Amount equivalent to 1% of FY2024 CO2 emissions minus FY2019 CO2 emissions
Improvements in Energy Productivity
SHI Group sets and manages metrics not only for CO₂ emissions but also for energy productivity (sales/CO₂ emissions) to improve production efficiency and reduce emissions. In FY2025, we set a target of a 2% improvement over the FY2023 level. Although the improvement in overseas operations was limited to 1.1% due to factors such as reduced demand in China, domestic operations achieved a 3.3% improvement, meeting the target.Under our ongoing initiatives, we will continue to aim for further improvements in production efficiency by proactively investing in energy-saving equipment, and by promoting operational energy-saving measures. These include implementing company-wide simultaneous shutdown days, upgrading to high-efficiency equipment, and reducing standby power consumption across equipment and facilities.
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 FY2025, an additional 2,340 MWh became available for a cumulative global capacity equivalent to 14,500 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 FY2025, these purchases amounted to 105,000 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
We are working to reduce CO2 emissions by eliminating waste and improving efficiency in product transportation. In Japan, the FY2025 transportation intensity (t-CO2/weight) was reduced by 7.7% compared with the average for FY2020–FY2023, achieving the target of maintaining the transportation intensity below the FY2020–FY2023 average.
Going forward, we will continue our efforts to improve and optimize vehicle loading efficiency, promote modal shift, and make effective use of consolidated transportation services.
CO2 Emissions (t-CO2) Across Entire Product Lifecycle
In FY2025, product lifecycle CO2 emissions amounted to 116,030,000 tons, of which CO2 emissions during product use accounted for 98.0% or 113,004,000 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.
Carbon Footprint
SHI Group calculates the carbon footprint of plastic injection molding machines, cryopumps, and construction machinery excavators as finished products independent of our other main products.
Going forward, we plan to expand the range of products subject to carbon footprint calculation and prepare detailed calculations for leading models.
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.