Climate Change

Viewing climate change as a material issue, the Kureha Group is advancing efforts to reduce CO2 emissions in our own production and reduce global CO2 emissions through our products and technologies, with carbon neutrality by 2050 as our goal.

Goals and Vision

  • Continuously work on reducing greenhouse gas emissions and rationalizing energy usage.

Fiscal Year 2022 Plan

  • Annual average reduction in energy intensity of 1% or greater.

Fiscal 2022 Performance and Outcomes

  • Energy intensity: down 0.7% YoY.
  • Improved equipment and conducted various energy-saving activities.

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.

  • *TCFD recommendations: The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB) in response to a request by the G20 to examine ways of addressing disclosure of climate-related information, approaches by financial institutions, and related matters. In June 2017, TCFD published its final report, recommending that organizations disclose information on governance, strategy, risk management, and metrics and targets concerning climate change-related risks and opportunities.
TCFD

Initiatives for Climate Change Mitigation

With major natural disasters caused by abnormal weather becoming commonplace around the world, the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) formally agreed upon an effective new global target: a "1.5℃ target" that seeks to limit the increase in the global average temperature to 1.5℃. Achieving this will require cutting greenhouse gas (GHG) emissions to net zero by 2050. Joining hands with society, companies must set business strategies and steadily execute management to achieve this net-zero target.
The Kureha Group views "Contribution toward reduced environmental impact" as one of its material issues. Under our "Toward Creating a New Future" New Mid- to Long-term Management Plan, we will set medium- to long-term CO2 reduction goals and work toward the reduction of our environmental impacts through the advancement of production technology.

Kureha Group's CO2 Emission Reduction Target

  • Aim for carbon neutrality* in fiscal 2050
  • Reduce energy-related CO2 emissions by 30% or more by fiscal 2030 compared to fiscal 2013
  • *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.

To achieve this goal, we will act together with society to fulfill our responsibility to mitigate climate change, through means including conversion of the Iwaki Factory's coal-fired power plant, its primary power source, to renewable energy sources, switching the primary power sources of other business sites and Group companies to electrical power from renewable sources, and further conservation of energy at other manufacturing facilities.

CO2 Emissions throughout the Supply Chain

Managing greenhouse gas emissions from business activities is important and there is increasing demand to disclose how we manage our emissions. These emissions consist of (1) direct emissions from our Group 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, and from fiscal 2021 we have begun reporting data from all Scope 3 categories.

Illustration of Scope 1, Scope 2 and Scope 3 Emissions in the Supply Chain

Illustration of Scope 1, Scope 2 and Scope 3 Emissions in the Supply Chain
  • Source:Modified from "Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (ver.2.3)," Ministry of the Environment

CO2 Emissions and Scope Breakdown (Kureha)

(Unit: 1,000 t CO2
  CO2 Emissions
FY2018 FY2019 FY2020 FY2021 FY2022
Scope 1 337 356 340 359 355
Scope 2 42 30 31 31 38
Scope 3* 457 490
  • *Calculated from FY2021 onward.

CO2 Emissions from Energy Use Amounts and Reduction Efforts

Kureha

At the Iwaki Factory, we are steadily implementing energy saving plans, such as systematically updating to energy-saving equipment. We are also implementing various activities to promote energy conservation, such as energy-saving patrols and internal energy audits. In fiscal 2022, energy consumption and CO2 emissions increased from the previous fiscal year due to increased production of some products in line with increased demand. However, by implementing efficient production, we improved energy intensity from the previous fiscal year.
We reduced energy consumption at our Plastics Processing Factory as well by advancing energy-saving measures including upgrades to high-efficiency equipment.
We also promote energy-saving activities at our head office and other business sites.
As a result, Kureha's CO2 emissions from energy use in fiscal 2022 totaled 393 thousand tons, a 7.8% reduction from fiscal 2013.
Moreover, in line with Japan's policies promoting the spread of renewable energy, we have installed solar power generation equipment in the Iwaki Factory premises, which generates approximately 300 MWh of energy for the region per year.

Kureha Group

Kureha Group has production sites in the United States, the Netherlands, China, Vietnam, and other countries. Energy policies differ between each country, but each of our production sites are actively promoting climate change mitigation measures, such as switching the electricity we use to renewable energy, according to the policies of each country. For example, our Europe-based company KREHALON B.V. already runs on electricity from 100% renewable sources. Also, China-based Kureha (Shanghai) Carbon Fiber Materials Co., Ltd. is proactively introducing in solar power generation.
As a result of these efforts, the Kureha Group's overall CO2 emissions from energy use in fiscal 2022 totaled 442 thousand tons, a 5% reduction from fiscal 2013.
We will continue to fulfill our social responsibility to mitigate climate change by making a concerted Group effort to reduce greenhouse gas emissions based on our mid- to long-term CO2 emission reduction targets and activities in the Carbon Neutral Project, and by further raising our reduction targets.

Changes in CO2 Emissions from Energy Use (Kureha Group)

(Unit: 1,000 t CO2
  Energy-related CO2 Emissions
FY2013 FY2018 FY2019 FY2020 FY2021 FY2022
Kureha 426 362 376 363 379 393
Group Companies in Japan 21 22 23 21 20 22
Overseas Group Companies 18 30 28 28 30 26
Total 465 414 428 412 429 442

Energy Use (Kureha Group)

Energy Use (Kureha Group)

CO2 Emission Volume (Kureha Group)

CO<sub>2</sub> Emission Volume (Kureha Group)
  • -

    This is the total sum of CO2 emissions from energy use and from non-energy activities. Fiscal 2013 represents the base year for the Kureha Group's medium- to long-term CO2 emission reduction targets formulated in fiscal 2020.

Climate Change Mitigation in Logistics

As for logistics, Kureha Unyu, which handles 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:

  • Adoption of energy-saving vehicles and larger vehicles
    In collaboration with our sales department and with transport partner companies, we are continuing to work on reducing CO2 emissions by systematically upgrading to energy-saving vehicles, increasing the size of vehicles, and shortening the total transportation distance. As part of these efforts, we have upgraded and have adopted larger sizes for raw material and fuel transport vehicles that run from Onahama Port to the Iwaki Factory. This has significantly contributed to improved transport efficiency and reduced CO2 emissions.
  • Making a modal shift to transport by rail and ship
    We already make partial use of low-environmental-impact rail transport and ship transport for long-distance routes, and are exploring ways to expand their use.

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.
Through these efforts, in fiscal 2022 we improved energy intensity and lowered CO2 emissions from the previous year. We also achieved our goal of improving five-year average intensity by an average of 1% or more per year from fiscal 2018.

  • *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

Endorsement of Regional Carbon Neutrality Declarations

In February 2021, the government of Fukushima Prefecture issued its "Fukushima Prefecture 2050 Carbon Neutral" declaration aimed at achieving a decarbonized society by 2050. With this action, the Fukushima Protocol, under which our Iwaki Factory has participated in advancing voluntary measures to combat global warming, has now become the Fukushima Zero Carbon Declaration. As our Group is also working to achieve carbon neutrality by fiscal 2050, the Iwaki Factory is in agreement with the aims of this declaration.
In the city of Iwaki in Fukushima Prefecture, the Iwaki Decarbonized Society Promotion Partnership Conference was established on November 24, 2022 and the Iwaki Carbon Neutrality Declaration was issued to publicly proclaim Iwaki's united commitment to achieving a decarbonized society by 2050. Endorsing the aims of this declaration as well, the Iwaki Factory is actively undertaking global warming countermeasures to bring about a sustainable society.