Addressing Climate Change
We are undertaking efforts to address climate change, with the Earth Environment Subcommittee established under the CSR Committee, and the Energy Officers Conference in charge of implementation. We are working to conserve energy and to reduce carbon intensity through various measures, for example by utilizing our own environmental capital investment program.
We are also using carbon life cycle analysis (cLCA), which involves calculating a product's contribution to carbon dioxide emission reductions by quantitatively assessing the emissions throughout the product lifecycle and making a comparison with similar products. We also calculate our indirect carbon dioxide emissions (Scope 3) through the supply chain.
Energy Conservation Efforts
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Our efforts at the Kaneka Group to address climate change include energy conservation, using energy intensity index (see note 1) as an indicator for management.
The energy intensity index of all parent plants in fiscal 2015 was 83.5, a reduction of 2.9% from the previous fiscal year due to factors such as energy conservation activities and differences in the product mix. Annual reduction over the five years was 1.5% on average, which means we met our target.
Non-consolidated energy consumption (see note 2) was 429,000 kiloliters, a decrease of 4.9% from the previous fiscal year.
1. Energy intensity index is a numeral value calculated by dividing the energy used in manufacturing (at all our parent plants) by the active mass and indexing it against the baseline year of fiscal 1990 as 100.
2. This energy consumption is the total for Kaneka alone (manufacturing plants and other facilities), with the boundaries being consistent with the Act on the Rational Use of Energy and the Action Plan for a Low Carbon Society prepared by the Japan Chemical Industry Association.
■ Energy Consumption (Crude Oil Equivalents) and Energy Intensity
Initiatives to Cut Carbon Intensity
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At Kaneka, we are working to reduce carbon intensity, using a carbon intensity index (see note 3) as an indicator for management, based on carbon dioxide emissions from energy consumption associated with production activities.
The carbon intensity index of all parent plants was 77.8 in fiscal 2015, so we achieved our target of 77.8 for the year, based on a target of 74 for fiscal 2020.
Non-consolidated carbon dioxide emissions (see note 4) decreased by 2.9% from the previous fiscal year to 1,123,000 tons. Main factors in the decrease included activities to reduce carbon intensity and differences in the product mix.
3. The carbon intensity index is calculated as carbon dioxide emissions from energy consumption in production activities divided by activity volume, with the index set at 100 in the base year of fiscal 1990 (using fixed numbers for Kaneka). It helps in the visualization of the impact of our activities, and was used to establish targets for fiscal 2020.
4. Carbon dioxide emissions are calculated as prescribed by the Act on Promotion of Global Warming Countermeasures. Since last year's report, the carbon dioxide emissions from purchased electricity are calculated using actual emission coefficients, and as with energy the figure is a non-consolidated total for Kaneka.
■ CO2 Emissions from Energy Consumption and Carbon Intensity
Investments in Energy-Efficient Facilities
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To continue reducing energy intensity and carbon intensity, we are implementing our own environmental capital investment program (with an annual budget of 200 million yen for small and medium investments that have a relatively long payback period), through activities in three areas (addressing climate change, efficient use of resources, and reducing environmental impacts) that are priorities in Kaneka’s environmental management program. In fiscal 2015 we continued allocating a large portion of this fund to projects that address climate change, including broader initiatives such as on visualizing energy consumption. Going forward we will continue to use this investment program for activities to reduce energy intensity and carbon intensity.
■ Results of Our Own Environmental Capital Investment Program
|Fiscal Year||Investments||Number||Reduced CO2 Emission|
|2011||\200 million||30||2,027 tons-CO2 per year|
|2012||\200 million||19||1,929 tons-CO2 per year|
|2013||\200 million||29||1,993 tons-CO2 per year|
|2014||\200 million||37||1,644 tons-CO2 per year|
|2015||\200 million||22||1,435 tons-CO2 per year|
Energy-Efficiency Initiatives in Logistics
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To achieve an annual 1% reduction in energy intensity as a specified consigner under the amended Act on Rational Use of Energy, in fiscal 2015 we continued working plant by plant on the theme of new reductions of energy intensity, with a focus on modal shifts and improved cargo load ratios. In fiscal 2015 we worked to improve cargo load ratios and greater use of the Japan Freight Railway Company, leading to an 11.1% decrease in energy intensity compared to fiscal 2014, but carbon dioxide emissions only decreased by 1,000 tons, due to an increase in the distance of coastal shipping.
■ CO2 Emissions and Energy Intensity from Logistics