Climate Change Mitigation

Statement of Support for TCFD Recommendations and TCFD Recommendation-based Disclosure

Kureha Corporation expressed its support for TCFD recommendations on April 20, 2022.
Furthermore, the Company conducted a qualitative analysis and evaluation of climate-related risks, opportunities, and responses for the Group’s main businesses using multiple climate scenarios, identified important items, and compiled the results in line with the TCFD recommended disclosure framework (governance, strategy, risk management, and metrics and targets ).

The Company will contribute to the creation of a sustainable society by continuing to increase its disclosure of climate change-related information and move forward with its response to achieving carbon neutrality.

Initiatives for Climate Change Mitigation

The Paris Agreement was concluded as a world-wide measure to combat climate change, and Japan along with many other developed countries have declared the goal of carbon neutrality* by 2050 and are actively promoting measures and technological innovations necessary to reduce greenhouse gas (GHG) emissions. Fighting climate change and achieving carbon neutrality is one of the most important issues for the Kureha Group, toward which we will make a united effort under the following basic policy:

Basic Policy on Climate Change

Fighting climate change is one of the most important issues for the Kureha Group. We will work to actively reduce GHG emissions related to our business activities in order to fulfill our corporate social responsibility.

  • * Carbon neutrality: bringing the balance of greenhouse gas emissions overall to zero. In other words, by subtracting absorption/removal from emission, we should reach net zero.

In fiscal 2020, we conducted an informational survey on energy use and CO2 emissions for the entire group, our energy demand forecasts, the circumstances of the countries and regions where each Group company is located, and various countermeasures for climate change mitigation. We have formulated the following CO2 emission reduction target for fiscal 2030 based on that survey:

Kureha Group's CO2 Emission Reduction Target

The Kureha Group's CO2 emissions from energy use should be reduced in phases to a total of 376 thousand tons, a 20% reduction from fiscal 2013, by fiscal 2030.

(CO2 emissions from energy use were 470 thousand tons in fiscal 2013)

To achieve this target, we will curb the operation of the coal-fired power plant at the Iwaki Factory, switch to renewable energy as the main power source at other Kureha offices and Kureha Group companies, and promote high-efficiency when replacing equipment and various energy-saving activities.
In April 2021, an independent, in-house Carbon Neutral Drive Committee was organized, and is composed primarily of full-time staff. They will aim to further raise our reduction targets and achieve carbon neutrality before 2050, and have started looking into new measures and working on new technologies.

Following the Japanese government's announcement of the country's new greenhouse gas reduction goal in late April, we have decided to further reinforce and accelerate our corporate effort with a revised and more ambitious target to reduce CO2 emissions across Kureha Group operations. A new company-wide project, the Carbon Neutrality Project, is therefore set up to oversee and promote activities to achieve carbon neutrality and zero emissions in 2050, including measures to reduce industrial wastes.

CO2 Emissions throughout the Supply Chain

Managing greenhouse gas emissions from business activities is important and requests are rising to disclose how we manage our emissions. These emissions consist of (1) direct emissions from our company resulting from the use of fuel, electricity, etc. (Scope 1); (2) indirect emissions resulting from the use of electricity, heat, steam, or other energy purchased from utilities (Scope 2); and (3) indirect emissions that are outside of Scope 2 and that originate in our supply chain from operations ranging from raw material sourcing to waste disposal (Scope 3). Data inclusive of Scope 3 has been reported since fiscal 2017.

CO2 Emissions and Scope Breakdown (Kureha)

Unit: 1,000 t CO2
  CO2 Emissions
FY2017 FY2018 FY2019 FY2020
Scope 1 363 338 356 340
Scope 2 34 42 31 31
Scope 3* 7 7 6 6
  • * Scope 3 emissions represent the total volume for Category 4 (transport, delivery (upstream)), 6 (business travel), 7 (employee commuting), and 9 (transport, delivery (downstream)) emissions.

Changes in CO2 Emissions from Energy Use (Kureha Group)

Unit: 1,000 t CO2
  Energy-derived CO2 Emissions
FY2013 FY2016 FY2017 FY2018 FY2019 FY2020
KUREHA 431 380 389 370 376 363
Group Companies in Japan 21 15 13 22 23 21
Overseas Group Companies 18 20 35 30 28 28
Total 470 415 437 423 428 412

CO2 Emissions and Reduction Initiatives in Scope 1 and 2

Kureha

At the Iwaki Factory, we are steadily implementing energy saving plans, such as systematically updating to energy-saving equipment, and we are also implementing various activities to promote energy conservation, such as energy-saving patrols and internal energy audits. At the plastics processing factories, we work to use equipment efficiently by disseminating the results of internal energy audits, and we also promote energy-saving activities at our head office and other offices.

Kureha Group

Kureha Group has production bases in the United States, the Netherlands, China, Vietnam, and other countries. Energy policies differ between each country, but each of our production bases are actively promoting climate change mitigation measures, such as switching the electricity we use to renewable energy, according to the policies of each country.

Energy Use

Energy Use
  • Starting fiscal 2017, four companies have been added to the figure for overseas group companies, two of which are Kureha (Changshu) Fluoropolymers Co., Ltd. and Kureha PGA LLC.

CO2 Emission Volume

CO2 emission Volume
  • Fiscal year 2005 was the base year for Kureha's own long-term target, Kureha ECO2 Actions 2020, based on the Commitment to a Low Carbon Society by Keidanren (reduce BAU CO2 emissions so that fiscal 2020 is less than fiscal 2005 by 10% or more). Fiscal year 2013 represents the base year for the Kureha Group's medium- to long-term CO2 emission reduction targets formulated in fiscal 2020.
  • Starting fiscal 2017, four companies have been added to the figure for overseas group companies, two of which are Kureha (Changshu) Fluoropolymers Co., Ltd. and Kureha PGA LLC.

Climate Change Mitigation in Logistics

As for logistics, Kureha Unyu, which takes on the transportation of our products, and related departments within Kureha are collaborating to reduce energy intensity* by at least 1% per year on average by making the following efforts:

  • Switching to larger, more energy-efficient vehicles
  • Switching the mode of transportation from trucks to trains and ships

In addition to these efforts, Kureha is continually working to reduce our environmental footprint by not only reforming our logistics and storage operations, but also through optimal placement of distribution warehouses and improved transportation efficiency.

  • * Kureha's energy intensity index (logistics): based on the fiscal 2006 revised Energy Conservation Act, an index with the energy intensity (energy consumption divided by transportation weight) of specific consigners for fiscal 2006 set at 100.

CO2 Emissions and Energy Intensity from Logistics

CO2 Emissions and Energy Intensity from Logistics