CSR

Climate Change

Efforts to Reduce Greenhouse Gas Emissions throughout the Supply Chain

 

Basic ConceptWe ascertain emissions throughout the entire supply chain

The Sekisui Chemical Group strives to reduce greenhouse gas emissions at each stage, from the purchase of raw materials through development, production, shipping, and use. We ascertain emissions throughout the entire supply chain, including not just our own business sites but also raw material suppliers and the use of our products sold, and publish our findings.

 

We ascertain emissions throughout the entire supply chain

 

Combating climate changeSteadily reducing greenhouse gases in all business activities

Aiming to keep the overall volume of greenhouse gas emitted during manufacturing pegged to the fiscal 2013 level and reducing by 1% every year the amount of energy consumed per unit of output, we focus on energy conservation activities particularly at our business sites overseas, where energy consumption has increased in recent years. As a result, we reduced total emissions by 0.3% in fiscal 2016. Under the new environmental medium-term plan that began in fiscal 2017, we have set a reduction target of 6% by fiscal 2019 versus fiscal 2013 levels for emissions of greenhouse gases from business activities. We aim to reduce the amount of energy consumed per unit of output by 1% every year. Sekisui Chemical is also investing heavily in environmental projects to reduce CO2 emissions.

Looking ahead, we will continue reducing greenhouse gases at every stage of our business activities with the aim of reaching COP 21(Paris Agreement) objectives.

 

Kyushu Sekisui Heim Industry Co., Ltd.'s New Heim Plant

Kyushu Sekisui Heim Industry Co., Ltd.'s
New Heim Plant

Business site initiative case studies

At Kyushu Sekisui Heim Industry Co., Ltd., a variety of environmental improvements were made when its plant was updated. In particular, the newly built New Heim Plant was turned into an environmentally friendly eco-factory that proactively utilizes renewable energy and features an insulated roof and thermal insulation coatings to increase energy efficiency.


[Major Environmental Considerations]

(1) Air conditioning systems that use geothermal heat

(2) More greenery

(3) Installation of a solar power generation system

(4) Insulated roof and thermal insulation coatings

(5) LED lighting used throughout entire building



  • *Due to the revised scope of summation, overseas figures have been revised retroactively.
    See Open with New Windowthe Corporate Governance for details.Please see P3 of the PDF version of the Data Book for information about the scope of data collection.


Greenhouse Gas (GHG) Emissions during Manufacturing / Japan

Greenhouse Gas (GHG) Emissions during Manufacturing / Japan

Energy Usage and per Unit of Output (Index) during Manufacturing / Japan

Energy Usage and per Unit of Output (Index) during Manufacturing / Japan

Greenhouse Gas (GHG) Emissions during Manufacturing / Overseas

Greenhouse Gas (GHG) Emissions during Manufacturing / Overseas

Energy Usage and per Unit of Output (Index) during Manufacturing / Overseas

Energy Usage and per Unit of Output (Index) during Manufacturing / Overseas

Breakdown of Greenhouse Gas (GHG) Emissions / Japan

Breakdown of Greenhouse Gas (GHG) Emissions / Japan

Breakdown of Energy Usage / Japan

Breakdown of Energy Usage / Japan

Breakdown of Greenhouse Gas (GHG) Emissions / Overseas

Breakdown of Greenhouse Gas (GHG) Emissions / Overseas

Breakdown of Energy Usage / Overseas

Breakdown of Energy Usage / Overseas

Transportation Volume and Energy per Unit of Output (Index) during Transportation / Japan

Transportation Volume and Energy per Unit of Output (Index) during Transportation / Japan

CO2 Emissions at the Transportation Stage / Japan

CO2 Emissions at the Transportation Stage / Japan

Amount transported in fiscal 2016: 240 million ton-kilometers

Calculation method: Either the improved ton-kilometer method, fuel consumption method, or fuel cost method, depending on the product and transportation method

Laboratory Energy Usage and per Unit of Output (Index)

Laboratory Energy Usage and per Unit of Output (Index)

Energy Usage at Offices per Unit of Output (Index)

Energy Usage at Offices per Unit of Output (Index)

 

Environment-contributing InvestmentsEnvironment-contributing Investment Framework Newly Created to Advance Measures for Combating Global Warming

At the Sekisui Chemical Group, our long-term objective is to reduce CO2 emissions by at least 26% by 2030 compared with fiscal 2013 levels. At production sites, a rather high level of effort is currently being put into reducing CO2 emissions, but in order to meet our ambitious target for cutting emissions, it is essential that we invest heavily in facilities instead of focusing solely onsite operations.

Under the new environmental medium-term plan that started in fiscal 2017, the Sekisui Chemical Group has created a new Environment-contributing Investment Framework for advancing investments in facilities that help conserve energy, and put into place new internal systems for assisting efforts to cut CO2 emissions by upgrading equipment and using alternatives.

We also implemented measures to promote environmental investment in 2007 and 2010, but the newly created framework greatly expands the amount of financial support and eligible facilities. Through these investment support measures, we aim to reduce annual CO2 emissions by 40,000 tons.

 

Supply Chain Greenhouse Gas Emissions (Scope 3)Reducing emissions at usage stages through business activities

Greenhouse Gas Emissions from Business Activities
(Classified by Scope)

Greenhouse Gas Emissions from Business Activities

Based on our estimates compiled last year, we now understand that most Scope 3 category greenhouse gas emissions are from raw materials procurement and the use of our products. Raw materials procurement accounts for a large portion of emissions because of the nature of our business as a chemicals manufacturer. Moreover, we think that the large volume of emissions when our products are used is attributable to the large amount of CO2 emissions from the homes that we sell. We are therefore focusing our efforts on selling energy-efficient homes such as the Smart Heim series with solar panels that provide renewable energy.

The Housing Company sells renewable energy products that combine solar panel systems and storage batteries. Electricity generated by the solar panels during the daytime is stored in the batteries for use during the evening. This allows households to reduce the amount of electricity they purchase from electric power companies, thereby reducing their CO2 emissions.

Greenhouse Gas Emissions from Supply Chain

Greenhouse Gas Emissions from Supply Chain

 

Climate Change and Our BusinessRisks and opportunities presented by climate change for our businesses

The Sekisui Chemical Group recognizes that global warming and other forms of climate change are a global problem for society. The Sekisui Environment Sustainability Vision 2030 created in fiscal 2013 aims to realize an “Earth with Maintained Biodiversity.” Our concept of an “Earth with Maintained Biodiversity” is a vision where the earth has achieved a state of having solved global-scale social issues, such as climate change, resource depletion and ecosystem degradation.

We also strive to understand the risks and opportunities that climate change presents to the operations of the Sekisui Chemical Group, in terms of their magnitude, scope of impact, and other matters. For identified risks, the Sekisui Chemical Group examines measures to mitigate the risks, and for identified opportunities, it considers the creation of new businesses by developing products and services. Through this kind of management, we believe it is possible to remain a company that meets the demands of society through sustainable business development.

 

Business risks from climate change

The Sekisui Chemical Group is aware of the following risks that climate change poses to its businesses.

  • Higher costs in procurement, production, facilities, and distribution from regulations designed to prevent and lessen the effects of climate change
  • Costs to replace cooling equipment, vehicles and substances used in order to comply with changes in regulations for coolants.
  • Higher costs for building facilities and systems in order to calculate the emission of substances such as CO2 that cause climate change
  • New taxes, such as carbon tax, for restricting the emission of CO2, and costs to acquire emission credits
  • Higher energy costs due to the greater use of renewable energy
  • Additional costs in manufacturing and R&D from new standards or tougher standards for insulation and energy-saving functions of housing products
  • Changes in market needs alongside climate change (fluctuations in demand for smart houses, insulation, agricultural film and other Environment-contributing Products)
  • Costs to calculate and disclose environmental performance required by regulations, such as the energy-saving performance of products and disclosing our carbon footprint
  • Decline in relative cost competitiveness as a result of higher production costs from the tightening of environmental regulations in regions where production sites are located
  • Loss of advantages in the company’s Environment-contributing Products in regions lacking relevant environmental regulations
  • Decline in advantages of the company’s products due to weaker demand for high-insulation properties due to changes in average temperatures
  • Increase in energy costs in regions that have regulated targets for introducing renewable energy
  • A worsening in employment conditions if temperatures increase due to global warming (increased risk of heatstroke, etc.)
  • Inability to operate factories located in low-lying regions due to flooding and rising sea levels
  • Loss of business operations due to increase in employees unable to commute to work due to severe weather such as typhoons, heavy rainfall and strong winds
  • Temporary suspension of procurement and logistics due to severe weather such as typhoons, heavy rainfall and strong winds
  • Decline in number of available construction days at housing construction sites and waterworks infrastructure projects due to sharp increase in rainfall

 

Business opportunities from climate change

The Sekisui Chemical Group recognizes the following opportunities that climate change may bring to its businesses.

  • Expand world market for Environment-contributing Products as environmental awareness increases in emerging countries
  • Increase demand for Environment-contributing Technologies and Environment-contributing Products in tandem with changes in temperatures and rainfall and more frequent occurrence of natural disasters
  • Stronger demand for Environment-contributing Products as regulations and tax codes are established to prevent and mitigate climate change
  • Growth in Environment-contributing Products from stronger needs to reduce energy costs and greater awareness of energy conservation among consumers around the world
  • Increase in sales opportunities for the company’s products for which information can be provided via labeling that assesses the use of natural capital as a result of the introduction of environmental labeling system, such as for energy-saving performance
  • Competitive advantages from being able to produce at minimal cost even if tighter environmental regulations are made, thanks to ongoing efforts to reduce environmental load at production sites
  • Improvement in corporate image from environmental activities and availability of Environment-contributing Products

 

Risks brought on by climate change can be broadly put into three categories: higher costs to address climate change, changes in market needs alongside climate change, and deterioration in plant operation and working conditions from an increase in temperatures and natural disasters. Meanwhile, the main opportunity presented by climate change is stronger demand for Environment-contributing Products.

Every effort is being made to avoid risk through effective management. The Sekisui Chemical Group also recognizes the importance of continuously carrying out the three missions stipulated under the Sekisui Environment Sustainability Vision 2030, namely expanding and creating markets for Environment-contributing Products, reducing environmental impact, and conserving the natural environment in order to steadfastly grasp opportunities.

 

Higher costs to address climate change can be met with reductions in environmental impact

As an initiative to reduce environmental impact, the Sekisui Chemical Group aims to visualize its energy usage and reduce the volume used through its Manufacturing Development Innovation Center, which was established for the purpose of greatly increasing energy efficiency in production processes. We also created a system where employees can select an eco-car from the list of company-owned vehicles, and conduct environmental impact assessments and energy conservation assessments when installing new equipment in our plants. Through these and other efforts, the Sekisui Chemical Group has put in place a structure that allows it to meet new environmental regulations around the world at minimal cost.

 

Changes in market needs and stronger demand for environmental products can be addressed by improving Environment-contributing Products

We manage risks that arise from climate change and other global social issues by continuing to develop Environment-contributing Products and disclosing and distributing detailed data on outcomes, and this also allows us to precisely identify opportunities arising from strengthening demand.

In particular, we believe it is possible to magnify the impact of the products and services we create by quantifying as much as possible the size of their contribution to solving social issues, which leads to opportunities to create and transform markets in ways that help solve global issues and change the awareness of consumers.

 

Deterioration in operating and working conditions can be addressed on a case-by-case

If climate change becomes a grave problem and significantly increases the highest and lowest temperatures, it is possible that people in manufacturing and construction would be unable to work as much. Since climates vary by region, it may be possible to minimize the effects of climate change by proposing to do construction work and projects during the more favorable seasons in the region. Each company division and Group company has formulated its own BCP based on their unique situation as a means of avoiding as much as possible the risk of loss in operations and work availability due to natural disasters.