Waste & Environmental Pollution Prevention

Basic Approach

SHI Group strives to curb waste and other emissions discharged during our business operations as well as to recycle and effectively utilize resources in an effort to reduce our environmental footprint. We have also imposed controls on VOCs as well as PRTR and other chemical substances.

Waste

Curbing Waste Emissions

We have established a waste (including hazardous waste) generation target of maintaining the basic sales unit at a level equal to or less than the 2020 to 2023  average.
In FY2025, we achieved a 29.6% reduction, enabling us to meet our target. As we review packing specifications and promote conversion of wood waste into raw material for manufacturing particle board, these and other initiatives will contribute to reducing emissions. In the future as well, we will promote waste reduction with a particular awareness of the 3R principle, including carefully separating waste and recyclable items.
We have also reduced waste emissions by 32.6% overseas, meeting our target as well.

Amount of waste generated
Amount of waste generated (per basic unit of sales)

Zero-Emissions (Landfill Rate Reduction)

For Japan, the SHI Group defines a zero-emission plant as one for which the ratio of landfill disposal volume to waste discharge volume (landfill rate) is less than 0.5%. Since FY2005, we have been promoting efforts to reduce landfill rates. In FY2025, the landfill rate for all domestic works (6 works and 7 plants) and Group companies other than works (10 companies) was 0.02%. We have consistently achieved zero emissions in Japan since FY2011.
Furthermore, our landfill rate target for overseas is not to exceed 5%, and we have been promoting activities to achieve that goal. In FY2025, we achieved our target with a landfill rate of 2.8%. Our combined domestic and overseas landfill rate was 1.4% in FY2025.Recycling through proper waste separation is a key component of our efforts to achieve zero emissions. We will continue to thoroughly separate waste to maintain zero emissions and strive to operate plants that contribute to a sound material-cycle society.

Zero waste emissions

Compliance with Act on Promotion of Resource Recycling Related to Plastics

SHI Group manages waste plastic using metrics for group-wide emissions and the amount of waste generated per basic unit of sales.
On a non-consolidated basis, SHI’s plastic waste emissions in FY2025 were 1,012t, a year-on-year decrease.
SHI Group will continue our activities to manage and reduce waste plastic across the entire group. We will promote the 3Rs (Reduce, Reuse, Recycle) plus renewable for plastic packaging materials and consider more comprehensive actions that even look at product components in our aim to engage in operations with a full awareness of the supply chain.

Plastic Product Reuse Initiatives

When considering how to dispose of the polycarbonate partitions used during the pandemic, the Osaki Head Office made the decision to recycle these rather than scrapping them. Approximately 161 kg was recycled, resulting in a significant contribution to the office’s efforts to recycle reusable plastic.

Prevention of Environmental Pollution

Complete Elimination of Organochlorine Chemical Use

We have continued to strive to completely phase out the use of dichloromethane, tetrachloroethylene, and trichloroethylene, organic chemicals subject to the Soil Contamination Countermeasures Act.
We have completely eliminated and banned the use of ozone-depleting substances HCFC-225 and HCFC-141b since FY2008 and FY2010, respectively. We have been promoting the scheduled replacement of R-22, production of which was discontinued in FY2020.

Control of VOC Substance Emissions

Toluene, xylene, and ethyl benzene contained in paint solvents account for more than 90% of the VOC substances used by the SHI Group in Japan. Under our 7th Medium-Term Environmental Plan, we have set a target of keeping emissions of these substances below the average level for the period from FY2020 to FY2023 and have been promoting related initiatives.In FY2025, although the decrease in production volume had an impact, emissions were reduced by 2.5%, while emissions intensity per unit of sales decreased by 8.9%.We will continue to expand the use of low-solvent coatings and VOC-free cleaning agents, as well as powder coatings, while further improving painting efficiency to reduce the amount of paint and other substances used. Through these efforts, we will continue to reduce VOC emissions.

VOC emissions

PRTR Substance Emissions and Transfer Volume

Paint solvents containing xylene, ethyl benzene, and trimethylbenzene comprise more than 90% of all PRTR substances. Although the total volume increased compared with the previous fiscal year, emissions were reduced by 17.8% compared with the average for the period from FY2020 to FY2023. In addition, emissions intensity per unit of sales decreased by 25.4%.

Although the decrease in production volume in the shipbuilding business had an impact, we will continue to expand the application of low-solvent paints while maintaining quality, as well as install and expand solvent recovery and removal equipment to reduce emissions and transfer volume.

Emissions and transfer volume PRTR substances

PCB Management and Complete Elimination of Equipment Using PCBs

All devices containing high concentrations of PCBs were registered early on with the waste-disposal company Japan Environmental Storage & Safety Corporation. These devices have been systematically detoxified pursuant to the Act on Special Measures Concerning Promotion of Proper Treatment of PCB Wastes. Transformers containing PCBs and stabilizers for lighting equipment containing PCBs have been replaced or updated gradually. Some Works and affiliated companies have completely disposed of all PCBs. Additionally, we have completed our survey to identify equipment containing low concentrations of PCBs, and have been working to detoxify such equipment step-by-step before the deadline.