HomeCSRCSR Report 2015JSR Group CSR Priority Issues (Materiality) Energy Saving, Resource Saving, and Climate Change Countermeasures The Environment (Initiatives to Prevent Global Warming)

CSR Report

Inclusion into International Indices and Universe for International Socially Responsible Investment (SRI)

Energy Saving, Resource Saving, and Climate Change Countermeasures The Environment (Initiatives to Prevent Global Warming)

Initiatives Aimed at Preventing Global Warming

Energy Consumption

JSR's Responsible Care Committee adopted a Medium-Term Voluntary Environmental Preservation Plan. This plan sets targets regarding energy intensity for reducing energy use as measures to prevent global warming. In order to reach these targets, the entire Group has been promoting E-100Plus project activities in order to reduce energy and resource use. However, we were unable to meet our energy reduction intensity targets in FY2015 due to production decreases and other factors. The entire Group remains committed to energy conservation activities and will continue to work toward reducing energy consumption.

Energy Reduction Targets

Reduce energy consumption per unit of production by an average of 1% per annum, using FY1999 as the base year (voluntary standard based on the amended energy conservation act*1) (The standard has been maintained since FY2013.)

*1 Act on the Rational Use of Energy

Energy Consumption (Crude oil Equivalent)*2 and Energy Intensity Index*3

Energy Consumption (Crude oil Equivalent)*2 and Energy Intensity Index*3

Initiatives to Reduce Greenhouse Gases

With increasing moves in recent years by businesses to manage greenhouse gases indirectly emitted from their supply chains and disclose their emissions at the global level, JSR has launched initiatives based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain issued by Japan’s Ministry of the Environment.

Scope 1:
Direct greenhouse gas emissions by sources owned or managed by a company or household (use of fuel: factory, heater, private automobile, etc.)
Scope 2:
Indirect emissions from the use of electricity, steam, or heat (use of purchased electricity, etc.)
Scope 3:
Other indirect emissions besides Scope 2.
("Company" includes procurement of raw materials, the business trips of employees, subcontracting of the disposal of waste, etc "Household" includes purchase of products, travel, subcontracting of disposal of waste, etc)

Scope of Greenhouse Gas Emissions from Businesses (conceptual illustration)

Scope of greenhouse gas emissions from businesses (conceptual illustration)

Source : Ministry of the Environment and Ministry of Economy, Trade and Industry, Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 1.0, Fig. 4-1

Accounting for Greenhouse Gas Emissions Throughout the Value Chain

Category FY2014 emissions FY2015 emissions Emissions subject to accounting
CO2
(t)
Percentage
(%)
CO2
(t)
Percentage
(%)

Ⅰ.Direct emissions
(Scope 1)

380,869 55.7 397,548 56.5

■ Direct emissions from the use of fuel and industrial processes by the reporting company

Ⅱ.Energy-derived indirect emissions
(Scope 2)

264,955 38.7 261,351 37.2

■ Indirect emissions from the use of electricity and heat purchased by the reporting company

Ⅲ.Other indirect emissions
(Scope 3)

38,303 5.6 44,219 6.3
Other indirect emissions (breakdown of Scope 3)
Category 1 Purchased goods and services Emissions from activities up to manufacture of raw materials, parts, purchased goods, sales-related materials, etc.
· Not calculated.
Category 2 Capital goods Emissions from the construction and manufacturing of the reporting company's capital goods
· Not calculated.
Category 3 Fuel and energy related activities not included in Scope 1 or 2 6,302 16.5 10,273 23.2 Emissions from procurement of fuel used in power generation, etc., for electricity and heat procured from other entities
· Not calculated.
Category 4 Transportation and delivery
(upstream)
10,489 27.4 12,028 27.2

① Emissions from distribution of raw materials, parts, purchased goods, sales-related materials, etc., up to delivery to the reporting company

② Emissions (emissions from distribution paid for by the reporting company) amount of activity from ① Other distribution services (transport, handling, and storage) purchased in the fiscal year of the report: Amount of domestic and overseas shipment distribution
· Not calculated.

Category 5 Waste from business operations 7,625 19.9 8,569 19.4 Emissions from transportation and processing of waste generated by the reporting company
Category 6 Business travel 321 0.8 321 0.7 Emissions from business travel by employees
Category 7 Employee commuting 1,159 3.0 1,159 2.6 Emissions from transportation of employees when commuting to and from the place of business
Category 8 Leased assets
(upstream)
45 0.1 43 0.1 Emissions from operation of assets leased to the reporting company (excluding emissions calculated under Scope 1 or 2)
Category 9 Transportation and delivery
(downstream)
12,307 32.1 11,770 26.6 Emissions from transport, storage, cargo handling, and retail sales of products
(limited to those items not paid for by the reporting company)
· Not calculated.
Category 10 Processing of sold products Emissions from processing of intermediate products by the reporting company
· Not calculated.
Category 11 Use of sold products Emissions from the use of products by users (consumers and companies)
· Not calculated.
Category 12 Disposal of sold products Emissions from transportation and processing of products upon disposal by users (consumers and companies)
· Not calculated.
Category 13 Leased assets
(downstream)
55 0.1 56 0.1 Emissions from operation of assets leased to other entities
Category 14 Franchises 0 0.0 0 0.0 Emissions from franchises

·  No emissions; business structures are not franchises.

Category 15 Investments Emissions related to the management of investments
· Not calculated.
Scope 3 total
(Categories 1 through 15)
38,303 100 44,219 100

Actions for Scope 1

CO2 Emissions

JSR set a CO2 emission reduction target under the Medium-Term Voluntary Environmental Preservation Plan and is striving to meet this target through various energy saving activities.

CO2 Emission (three plants)

CO2排出量(3工場)

CO2 Emissions Reduction Target

Reduced the total CO2 emissions from three plants by 6% in total compared to FY1991

In FY2013, JSR established its "System to Reduce the Total CO2 Emissions from Three plants by 6% Compared to FY1991 " by upgrading its energy-saving technologies through the introduction of fuel conversion at the Kashima Plant (Kashima South Joint Power Corporation) and a sludge dewatering system at the Yokkaichi Plant. In FY2015, JSR was successful to reduce its CO2 emissions by approx. 8.9% compared to FY1991 levels, thus reaching its target.

Examples of Measures Taken to Reduce CO2 Emissions

Example 1: Introduction of a natural gas-fired turbine cogeneration system

Natural gas-fired turbine cogeneration system (Yokkaichi Plant)

Natural gas-fired turbine cogeneration system (Yokkaichi Plant)

The Yokkaichi Plant installed a natural gas-fired turbine cogeneration system in April 2010. By using natural gas as fuel, this system helped us to cut CO2 emissions by approx. 30,000 tons in FY2015 compared to emissions using the previous coal and heavy oil-fired steam boiler and condensing steam turbine system.

Example 2: Introduction of a sludge dryer system that makes sludge combustible

Sludge dryer system (Yokkaichi Plant)

Sludge dryer system (Yokkaichi Plant)

In FY2013 a sludge drying system was adopted at the Yokkaichi Plant in order to dry the sludge generated from its general wastewater treatment facility. Previously, sludge containing a high percentage of water was burned with a combustion support fuel (heavy oil), but drying allows us to use the sludge itself as fuel, which in turn allows us to reduce the amount of combustion support fuel we use. This led to a reduction in CO2 emissions of approx. five thousand tons in FY2015.

Actions for Scope 2

Measures to Cut Power Consumption at the Head Office

Power Saving Target for the Head Office

An 8% reduction compared to the average power consumption from the base years of FY2010 and FY2011

Major Efforts

  • · Reduced the number of lights and office appliances, such as printers.
  • · Visualized our power saving situation, and made our employees become more aware of turning off the power for unused machines and rooms.
  • · Implemented the so-called "Cool Biz."
  • · Changed our employees' working schedule to have them begin work and return home earlier than usual on two days per week in June and September.
  • · Maintained a proper air-conditioned room temperature that achieves a balance between energy savings and operational efficiency.

Power Consumption at the Head Office

本社ビル電力使用量の推移

The Tokyo Metropolitan Government requires major tenants of a building occupying 5,000 square meters or more in floor area or consuming six million kWh or more of electricity annually to reduce its CO2 emissions under the Tokyo Metropolitan Ordinance on Environmental Preservation.
Although we are not subject to this obligation, we are promoting energy conservation on our own initiative by voluntarily setting a specific power saving target.
In FY2015, as a result of the efforts specified below, our power consumption decreased by 22% compared to average consumption from the base years.

Actions for Scope 3

Measure of Logistics for Environment: Improving Transport Efficiency

As part of our environmental efforts in transportation, we have taken systematic steps to reduce our energy use in transportation as a designated shipper under the FY2007 amended Energy Conservation Law. We are trying to reduce transport energy intensity by at least an average of 1% per annum by using larger tanker trucks and shifting from road to rail and water transport.
In FY2015, as a result of our promotion of the transportation of goods and raw materials by railway and ship, modal share improved 2% over the previous fiscal year, which led to a reduction of 2.1% in transportation energy intensity comparing to the previous year.

Transport Statistics

FY 2011 2012 2013 2014 2015
Transport volume (million ton-kilometers*) 479 473 471 492 523
Rail/Sea transport ratio (%) 84 83 82 83 85
Energy consumption level (kiloliters: converted to crude oil) 8,729 8,726 8,655 9,026 9,388
Energy intensity (kiloliters/1,000 ton-kilometers) 0.0182 0.0184 0.0184 0.0184 0.0180
CO2 emission level (tons) 22,100 22,218 21,907 22,960 23,984
■ Transportation and delivery of raw materials and other materials (tons) 9,953 10,294 9,686 10,489 12,028
■ Transportation of waste from plants (tons) 269 219 175 164 186
■ Transportation and delivery of products (tons) 11,834 11,705 12,046 12,307 11,770

*Ton-kilometer: Freight Tonnage (Ton) x Transport Distance (km)