SEKISUI CHEMICAL CO., LTD. (President: Keita Kato, hereinafter "SEKISUI CHEMICAL") announced that it has established new targets for reducing greenhouse gas (hereinafter "GHG") emissions by 2030 and will accelerate its efforts to achieve carbon neutrality by 2050.
SEKISUI CHEMICAL Group's Climate Change Measures and Background of the Establishment of New Targets
The SEKISUI CHEMICAL Group recognizes that climate change is a major social issue as well as a major risk to the Group, and has been actively working to solve it. The Group obtained SBT certification in 2018 for the first time in the chemical industry, and has set the target of reducing GHG emissions by 26% from the FY2013 level by the year 2030. To achieve this target, the Group has been promoting energy consumption innovation, such as the replacement of aging facilities, and energy procurement innovation, such as shifting the source of purchased electricity to renewable energy and the introduction of solar power facilities for in-house consumption.
As a result, in FY2021, 20 business sites both inside and outside Japan switched 100% of their purchased electricity to renewable energy, and 12 sites installed solar power facilities for their own consumption, raising the ratio of renewable energy in the Group's total purchased electricity to 20%. This is twice the ratio projected in the original plan, and the GHG emission reduction rate has reached 21% compared to the FY2013 level.
Moreover, as climate change measures become an even more urgent social issue, the Group has made the decision to accelerate its technically difficult initiatives, such as the electrification of facilities that consume fossil fuels, switching to low-carbon fuels, and reduction of GHG emissions from fossil fuels through production process innovation, in order to increase the GHG emission reduction rate by 2030.
New GHG Emission Reduction Targets
The GHG emission reduction target for Scope 1+2 has been updated from the existing target of 26% reduction from the FY2013 level to 50% reduction from the FY2019 level, and the GHG emission reduction target for Scope 3 has also been revised upward by adding resource circulation initiatives. SEKISUI CHEMICAL will accelerate its efforts to reduce GHG emissions in both its own operations and that of its supply chain. The new reduction target for Scope 1+2 is equivalent to the 1.5°C target of the Paris Agreement and has been submitted for SBT certification.
Measures to Achieve Scope 1+2 Target
SEKISUI CHEMICAL will continue to advance the shift of the purchased electricity to renewable energy to reach the target for Scope 1+2, and will complete the transition to renewable energy by 2030. From 2023, SEKISUI CHEMICAL will shift to electrification and the use of low-carbon fuels in its facilities that use fossil fuels. Specifically, to electrification and the use of renewable energy for air conditioning systems that use fossil fuels, from heavy oil to LNG for boilers, and to HVs and EVs for business vehicles. In addition, SEKISUI CHEMICAL will also accelerate its efforts for a technically difficult task of converting the steam generation source to fuel, and for reducing energy consumption through production process innovation.
A total of 40 billion yen is planned to be allocated by 2030 for capital investment and procurement of electricity from renewable energy sources that will contribute to the GHG emission reduction measures under Scope 1+2.
Measures to Achieve Scope 3 Target
SEKISUI CHEMICAL will promote reduction of emissions in Scope 3 through resource circulation initiatives. Specifically, raw resin materials, which account for 50% of purchased product services (Category 1), will be replaced with non-fossil origin materials and the use of recycled materials will be increased. This will also lead to a reduction in GHG emissions from the disposal of sold products (Category 12). Additionally, SEKISUI CHEMICAL will start promoting the recycling of waste plastics and make new efforts to reduce waste from operations (Category 5).
For the use of sold products (Category 11), increased sales of ZEH housing with SEKISUI HEIM's energy-saving performance and large-capacity PV and large-capacity batteries have contributed significantly to the reduction of GHG emissions. SEKISUI CHEMICAL will continue to expand sales of ZEH housing to achieve further reductions.
SEKISUI CHEMICAL states in its long-term vision "Vision 2030" that "Innovation for the Earth" is its vision statement, and pledges to "support basis of LIFE and create "peace of mind that continues into the future" toward the realization of a sustainable society" through innovation. Going forward, SEKISUI CHEMICAL will continue to strive for both the realization of a sustainable society and the growth of the SEKISUI CHEMICAL Group, contributing to solving social issues such as climate change and continuing to be a company that is trusted by its stakeholders.
Scope 1: Direct emissions of greenhouse gases by the business operator itself (combustion of fuels, industrial processes)
Scope 2: Indirect emissions from the use of electricity, heat and steam supplied by other business operators.
Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions of other companies associated with the activities of the business operator)
Scope 3 Categories
Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel and energy related activities not included in Scope 1 or Scope 2
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 8: Upstream leased assets
Category 9: Downstream transportation and distribution
Category 10: Processing of sold products
Category 11: Use of sold products
Category 12: End of life treatment of sold products
Category 13: Downstream leased assets
Category 14: Franchises
Category 15: Investments
About SEKISUI CHEMICAL Group
Headquartered in Japan, SEKISUI CHEMICAL CO., LTD. (TSE: 4204) and its subsidiaries make up the SEKISUI CHEMICAL Group. 26,000 employees in over 190 companies throughout 21 countries aim to contribute to improving the lives of the people of the world and the earth’s environment. Thanks to a history of innovation, dedication and a pioneering spirit, SEKISUI CHEMICAL now holds leading positions in its three diverse business divisions as well as top global market share in interlayer film, foam products, conductive particles and more.
Since its foundation in 1947, the SEKISUI CHEMICAL Group has dedicated itself to social and environmental contribution and is now an internationally recognized leader in sustainability and environmental initiatives, having recently been selected as one of the Global 100 most sustainable companies. SEKISUI CHEMICAL Group will continue to maintain a strong corporate presence for 100 years and beyond.
Public Relations Department, SEKISUI CHEMICAL
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.