Environment
Environmental Performance
By providing solutions that contribute to the global environment and a rich life and working to reduce environmental impacts and disclose timely information in fundamental business domains, Kaneka Group engages in various environmental initiatives.
Material Balance
Kaneka Group is working to reduce environmental impacts by aggregating the status of energy and resource inputs and material outputs through emissions and products to grasp production activity volume, targeting Kaneka and Group companies within and outside Japan.
In fiscal 2021, the main raw material, energy consumption, and water inputs decreased by 71 thousand tons (4.2%), 53 thousand kiloliters (8.0%) and 2.1 million m3 (6.0%), respectively from the previous year. The product, GHG, SOx, COD, and SS outputs increased by 134.1 thousand tons (6.6%), 92.8 thousand tons-CO2e (7.2%), 23.6 tons (37.6%), 32.2 tons (10.3%), and 23.1 tons (11.0%), respectively. Meanwhile, the amount of externally recycled waste decreased by 5,730.4 tons (9.4%) due to the decrease in the amount of waste generated by Kaneka, and the final landfill waste output decreased by 1,320.6 tons (19.5%) due to differences in the product mix for some Group companies outside Japan.
For data of indicators related to climate change and environment protection, we have received third-party assurance to ensure the reliability and transparency of Data Sheet 2022.
For indicator data, some calculation methods have been changed. For details, please refer to “Calculation Methods for Data of Indicators related to Environment”.
Fiscal 2021 Results
*1 Kaneka, 40 Kaneka consolidated subsidiaries in Japan, and seven non-consolidated subsidiaries. Consolidated subsidiaries in Japan do not include subsidiaries of Cemedine Co., Ltd.
Environmental Accounting
We efficiently and effectively promote environmental conservation activities by quantitatively grasping the investment and expenditure costs related to environmental conservation and the quantitative and economic impacts of environmental measures. We calculate these costs and effects based on the 2005 edition of the Environmental Accounting Guidelines by Japan’s Ministry of the Environment with Kaneka's own unique way of thinking, targeting all parent manufacturing sites and 30 Group companies in Japan (manufacturing companies).
In fiscal 2021, environmental costs (investments) were 3,988 million yen, an increase of 2,938 million yen from the previous fiscal year.
In terms of environmental costs (expenditures), pollution prevention costs increased by 543 million yen, resource recycling costs decreased by 132 million yen, and research and development costs increased by 50 million yen.
The economic impacts of environmental measures yielded 398 million yen more in cost reductions over the previous year, due largely to cost reductions from energy conservation. Income earned from recycling and other activities was 4 million yen while improved resource conservation and intensity yielded cost reductions of 1,133 million yen. However, cost reductions due to recycling and other activities were lower by 361 million yen.
Environmental Costs (Investments, Expenditures)
(Millions of yen)
| Cost Classifications | Main Efforts | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Investments | Expenditures | Investments | Expenditures | Investments | Expenditures | |||
| Business Area | 1,314 | 5,674 | 1,049 | 5,637 | 3,987 | 6,048 | ||
| 1. Pollution Prevention | Air and water pollution prevention | 1,293 | 3,550 | 947 | 3,338 | 3,737 | 3,881 | |
| 2. Environmental Conservation | Addressing climate change and energy saving | - | - | - | - | - | - | |
| 3. Resource Recycling | Waste processing, recycling, and reduction | 20 | 2,096 | 102 | 2,299 | 250 | 2,167 | |
| Upstream and Downstream | Product recycling, collection, and processing | 0 | 8 | 0 | 25 | 0 | 25 | |
| Management Activities | Environmental education for employees and environmental impact monitoring and measurement | 7 | 463 | 0 | 397 | 1 | 419 | |
| Research and Development | Research and development of products contributing to environmental conservation | - | 9,364 | - | 9,169 | - | 9,219 | |
| Social Activities | Greening, beautification, and disclosure of environmental information | 0 | 113 | 1 | 114 | 0 | 107 | |
| Environmental Damage | Payment of sulfur oxide emission charges | 0 | 9 | 0 | 8 | 0 | 2 | |
| Total | 1,321 | 15,604 | 1,050 | 15,350 | 3,988 | 15,820 | ||
We calculate these costs and effects based on the 2005 edition of the Environmental Accounting Guidelines by Japan’s Ministry of the Environment with Kaneka's own unique way of thinking, targeting all parent manufacturing sites and 30 Group companies in Japan (manufacturing companies).
Note: Figures do not include global environment conservation investments and expenditures and research and development investments. Amounts reported here may not fully match, due to rounding.
Quantitative Impact of Environmental Conservation Efforts
| Category | Initiatives | Items | Units | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 |
|---|---|---|---|---|---|---|
| Pollution Prevention | Atmospheric and water discharges of hazardous substances | SOx emissions | Tons | 86.7 | 61.7 | 85.5 |
| NOx emissions | Tons | 871.7 | 877.1 | 876.3 | ||
| Chemical oxygen demand | Tons | 234.7 | 220.9 | 236.2 | ||
| PRTR Law‒designated chemical emissions | Tons | 186.2 | 188.3 | 166.0 | ||
| Environment | Greenhouse gas emissions | GHG |
Thousand tons-CO2e | 1,189.6 | 1,177.1（*2） | 1,219.6 |
| Energy consumption | Crude oil equivalents | Thousand kiloliters | 508.0 | 520.4 | 557.6 | |
| Resource Recycling | Final landfill | Landfill | Tons | 760.8 | 479.5 | 350.2 |
| External recycling | Amounts recycled | Tons | 47,263.3 | 55,750.8 | 48,906.8 |
*2 In making group companies in Japan subject to third-party assurance starting with fiscal 2021 results, we reviewed fiscal 2020 data to confirm year-on-year changes. As a result, we discovered input and other errors, and have corrected fiscal 2020 figures.
Economic Impacts of Environmental Measures
(Millions of yen)
| Measures | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 |
|---|---|---|---|
| Revenue from recycling | 131 | 189 | 184 |
| Cost reductions by better resource efficiency (output per unit of input) | 8 | 1,335 | 202 |
| Waste disposal cost reductions by recycling | 253 | 481 | 120 |
| Cost reductions by energy conservation Total | 227 | 24 | 422 |
| Total | 619 | 2,028 | 927 |
Note: Amounts reported here may not fully match, due to rounding.
Environmental Investments (Kaneka)
We continue to invest in environmental conservation.
Environmental investments in fiscal 2021 totaled 3,906 million yen. Of this total, 80.3% was for water quality, 11.0% was for air quality, 6.4% was for industrial waste, 1.9% was for the work environment, 0.3% was for noise reduction, and 0.1% was for dust. The main reason for the year-on-year increase was the enhancement of wastewater treatment equipment to address the higher wastewater volume associated with expanded production capacity of KANEKA Biodegradable Polymer Green Planet™. Specifically, we rolled out a range of equipment to treat the increased environment impact (total organic carbon content [TOC], total phosphorus, total nitrogen), including anaerobic treatment equipment, nitrification and denitrification equipment, coagulation sedimentation equipment, sludge dehydration equipment, and desulfurization and boiler equipment. We plan to use biogas generated by the anaerobic treatment equipment as fuel for steam generation.
Environmental investment over the past five years averages about 1,600 million yen, leading with water quality (55.1%), followed by air quality (20.3%) and the work environment (12.1%). We will continue to invest proactively to maintain and improve the environment.
Environmental Investments in Fiscal 2021
Cumulative Environmental Investments
Environment Efficiency (Kaneka)
Kaneka assesses the environmental impact of our production activities using Environmental Impact Points (EIPs), which are compiled using the JEPIX methodology, and we use these points to assess our environmental efficiency. Our total environmental impact increased by 10.0% from the previous year in fiscal 2021, primarily in terms of greenhouse gases ozone-depleting substances, and discharges COD and nitrogen in coastal waters, with EIPs at 4.77 billion. However, environmental efficiency improved by 8.8% from the previous year.
Environment Efficiency
Details of Total Environmental Impact
| Fiscal Year | Net Sales (million yen) |
Environmental Impact (100 million EIPs) |
Environmental Efficiency (yen/EIP) |
|---|---|---|---|
| 2019 | 292,084 | 45.4 | 64.3 |
| 2020 | 279,774 | 43.3 | 64.5 |
| 2021 | 334,675 | 47.7 | 70.2 |
CHECK & ACT
Under environmentally friendly management, we continue working to reduce environmental risks by complying with environmental regulations and legislation and criteria in agreements with local governments and by checking compliance with them through various means, including ISO 14001 internal audits and ESG safety and quality inspections.
We will also continue working to further reduce environmental impact and improve environmental efficiency by promoting energy conservation activities.
TOPICSGreen Bond (Environmental Bond) Issued
As its 7th unsecured straight bond, Kaneka issued a green bond (environmental bond) to procure funds for the manufacture and R&D of KANEKA Biodegradable Polymer Green Planet™ (“Green Planet™”) in September 2019. A green bond is an ESG bond, and fund usage is limited to projects that contribute to resolving environmental issues. It is the first such industrial bond issued by a Japanese chemical company.
Green Planet™ is a 100% plant-based polymer extracted from microorganisms that process plant oils and is biodegradable in the sea and soil. It is expected to contribute to reducing marine pollution caused by microplastics.
For the issuance of the green bond, Kaneka has established the Green Bond Framework, which conforms to the Green Bond Principles 2018 of the International Capital Market Association (ICMA) and the Green Bond Guidelines 2017 Edition of Japan’s Ministry of the Environment. To obtain eligibility for and transparency of this green bond and raise its appeal for investors, as a third-party evaluation, Kaneka has obtained a second opinion from Rating and Investment Information, Inc. (R&I) of how this framework conforms to the Green Bond Principles 2018 and the Green Bond Guidelines 2017 Edition. Kaneka has also obtained top-level evaluation in the green bond assessment by R&I, the GA1 preliminary evaluation.
The relevant business segments of the green bond principles and the relevant development objectives of the SDGs are shown in the table below.
| Green bond principles / Green project categories | SDGs Development objectives |
|---|---|
|
 |
Annual Reporting
・Green Bond 2020 Annual Reporting (PDF)
