CO2 Emissions Reductions (Scope 1, 2, 3)

CO2 Emissions Reductions

Basic Concept & CO2 Emissions Reductions Activities

The Unitika Group has been carrying out environmental preservation activities for over 50 years, with the action guidelines of making sure there is no harmful impact on the global environment during the manufacture of our products. From early on, Unitika has been focusing on reducing greenhouse gas emissions, such as by being a leader among other companies in installing a gas cogeneration system in our production sites (FY 2004 at the Uji Plant, and FY 2006 at the Okazaki Plant).

We have also set yearly reduction targets in the Medium-Term Environmental Plan, which we keep in mind as we continue with our reduction activities. In July 2021, we set a FY 2030 target in the Sustainable Business Promotion Project of a 46% reduction in CO2 emissions (Scope 1&2) from all domestic production sites relative to the FY 2013 level. We are aiming for net zero carbon emissions by 2050. The Sustainability Committee manages the progress of measures for CO2 emissions reductions, and reports its findings to the Board of Directors.

We have also set up a system for calculating the CO2 emissions (Scope 1&2) from all overseas production sites and the CO2 emissions (Scope 3) from the supply chain (excluding Unitika). Going forward, we will use this data to keep advancing our efforts to reduce CO2 emissions.

Reduction of CO2 Emissions Related to Business Activities (Scope 1&2)

Every year, the Unitika Group calculates and reports on the following CO2 emissions: Scope 1, which are direct CO2 emissions from the use of gas and other energy sources at Unitika production sites; Scope 2, which are indirect CO2 emissions from the use of electricity, heat, and steam supplied from other companies.

In FY 2022 we expanded the types of greenhouse gases for calculation to include non-energy-derived greenhouse gases (6.5 gas) in Scope 1. We also recalculated all data since FY 2013 to include non-energy-derived greenhouse gases, and we amended the actual standard value and target value of the KPI of CO2 emissions to values that include non-energy-derived greenhouse gases. We have kept in place the FY 2030 target of a 46% reduction in CO2 emissions (Scope 1&2) from all domestic production sites relative to the FY 2013 level.

The CO2 emissions of all domestic production sites (including the head office and business offices) in FY 2022 was 263 kt-CO2e in total for Scope 1 and Scope 2. The reduction rate with FY 2013 as the standard year, which is the same as the current government target, is 26%. We are moving ahead with various measures, including updating energy-saving equipment, as we work toward achieving the 46% reduction target.

The CO2 emissions of all overseas production sites in FY 2022 was 63 kt-CO2e in total for Scope 1 and Scope 2. The reduction rate, with FY 2018 as the standard year, is 8%.

CO2 emissions from all domestic production sites (Scope 1 and Scope 2) CO2 emissions from all domestic production sites (Scope 1 and Scope 2)

* Includes non-energy-derived greenhouse gases.

CO2 emissions from all overseas production sites (Scope 1 and Scope 2) CO2 emissions from all overseas production sites (Scope 1 and Scope 2)

* Includes non-energy-derived greenhouse gases.

KPIs (FY 2030 targets) of Priority Issues (Materiality)

CO2 emissions (All domestic Group companies)*
FY 2030 target: 193 kt-CO2e (46% reduction relative to the FY 2013 level)
FY 2022 actual results: 263 kt-CO2e (26% reduction relative to the FY 2013 level)

* Includes non-energy-derived greenhouse gases.

CO2 Emissions (Scope 3) from the Supply Chain (excluding Unitika)

In FY 2022, we started calculating the CO2 emissions of Scope 3*. The organizational scope in Unitika Ltd. is calculations done for nine out of the total 15 categories.

* This is the total of CO2 generated from the supply chain (from the procurement of raw materials to the disposal of final products) related to Unitika’s businesses, excluding Scope 1 and Scope 2.

CO2 Emissions (Scope 3) from the Supply Chain (excluding Unitika)

Unit: kt-CO2e
2021 2022
Total
613 586
Category 1 - Purchased goods and services*1
417 399
Category 2 - Capital goods
11 13
Category 3 -
Fuel and energy related activities (not included in scope 1&2)*2
68 66
Category 4 - Upstream transportation and distribution*1
33 29
Category 5 - Waste generated in operations
3.8 4.4
Category 6 - Business travel
0.2 0.2
Category 7 - Employee commuting
0.6 0.6
Category 8 - Upstream leased assets
No applicable activities No applicable activities
Category 9 - Downstream transportation and distribution
Not calculated due to difficulties in collecting data Not calculated due to difficulties in collecting data
Category 10 - Processing of sold products
Not for calculation*3 Not for calculation*3
Category 11 - Use of sold products
Not for calculation*4 Not for calculation*4
Category 12 - End-of-life treatment of sold products
77 72
Category 13 - Downstream leased assets
No applicable activities No applicable activities
Category 14 - Franchises
No applicable activities No applicable activities
Category 15 - Investments
1.8 1.8
Unit: kt-CO2e 2021 2022
Total 613 586
Category 1 Purchased goods and services*1 417 399
Category 2 Capital goods 11 13
Category 3 Fuel and energy related activities (not included in scope 1&2)*2 68 66
Category 4 Upstream transportation and distribution*1 33 29
Category 5 Waste generated in operations 3.8 4.4
Category 6 Business travel 0.2 0.2
Category 7 Employee commuting 0.6 0.6
Category 8 Upstream leased assets No applicable activities No applicable activities
Category 9 Downstream transportation and distribution Not calculated due to difficulties in collecting data Not calculated due to difficulties in collecting data
Category 10 Processing of sold products Not for calculation*3 Not for calculation*3
Category 11 Use of sold products Not for calculation*4 Not for calculation*4
Category 12 End-of-life treatment of sold products 77 72
Category 13 Downstream leased assets No applicable activities No applicable activities
Category 14 Franchises No applicable activities No applicable activities
Category 15 Investments 1.8 1.8*5

*1 Some of the items have been accounted for within the scope of consolidation.
*2 The organizational scope is the Unitika Group.
*3 Category 10 is not included in the calculations as the World Business Council for Sustainable Development (WBCSD) Guidance for Accounting and Reporting Corporate GHG Emissions in the Chemical Sector Value Chain stipulates that “chemical companies are not required to report on downstream emissions, since reliable figures are difficult to obtain due to the diverse application and customer structure.”
*4 Not relevant. Because the products sold by Unitika are primarily materials, there are no products which use electricity or fuel, and there are no direct GHG emissions at the use phase.
*5 Provisional value based on FY 2021 data.

Reduction of CO2 Emissions in Logistics

Unitika undertakes a variety of efforts to reduce the environmental impact associated with the delivery and emission of raw materials, products, waste, and other materials. These include promoting the shift of cargo transportation modes to more environmentally-friendly methods (modal shifts), and streamlining transportation to improve efficiency. As a specified consignor, Unitika reported 53,672 kt-km of freight and 19.0 kt of CO2 emissions (28% reduction relative to the FY 2013 level) to the government in FY 2022. Unitika will strive for eco-friendly logistics within the whole group by implementing a variety of practices. These include but are not limited to: expanding the use of trains, promoting idle stops, and the use of ecological tires.

TOPIC

Unitika Glass Beads Co., Ltd. acquires the S (excellent energy saving) rating for the fourth consecutive year, in the Business Operator Classification Evaluation System of the Energy Saving Act

The Ministry of Economy, Trade and Industry has awarded Unitika Glass Beads Co., Ltd., a general manufacturer of glass beads, the S (excellent energy saving) rating for the fourth consecutive year for its actual results from FY 2018 to FY 2021, in the Business Operator Classification Evaluation System (SABC Evaluation System) of the Act on Rationalizing Energy Use (Energy Saving Act). All employees will continue working together on energy-saving efforts going forward, as a business operator (that achieves its targets) with excellent energy-saving initiatives.

https://www.enecho.meti.go.jp/category/saving_and_new/saving/enterprise/overview/institution/

(The Business Operator Classification Evaluation results are published on the website of the Agency for Natural Resources and Energy.)

The Business Operator Classification Evaluation results are published on the website of the Agency for Natural Resources and Energy.