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JSR Group contributes to climate change mitigation by reducing its consumption of necessary energy and greenhouse gas emissions in various product production and supply processes.

1. Energy Consumption

JSR's Responsible Care Committee adopted a "Medium-Term Environmental and Chemical Management Plan." This plan contains per-unit targets for energy reduction, which serve as measures to help prevent global warming. In order to reach these targets, JSR is engaged in "TSC Plus" cost-reduction activities targeted at reducing energy and resource use. The change in our per-unit energy consumption in FY2017 was 0.7%, which fell short of our per-unit energy reduction target. Nonetheless, JSR remains committed to energy conservation activities and will continue to work toward reducing energy consumption.

(1) JSR

(2) Domestic Group Companies

Energy consumption

(3) Overseas Group Companies

Energy consumption

2. Initiatives to Reduce Greenhouse Gases

Amid a global trend whereby businesses are managing greenhouse gases indirectly emitted from their supply chains and disclosing their emissions, JSR Group has launched initiatives to calculate and ascertain emissions and reduce emissions based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain issued by Ministry of the Environment, Government of Japan.

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 the procurement of raw materials, employee business trips, subcontracting of waste disposal, etc.
"Household" includes the purchase of products, travel, subcontracting of waste disposal, etc.)

Scope of Greenhouse Gas Emissions from Businesses (conceptual illustration)

(1) Accounting for Greenhouse Gas Emissions Throughout the Value Chain

• * See ESG Data for details.

(2) Actions for Scope 1 and Scope 2

JSR is endeavoring to reduce its greenhouse gas emissions through various energy saving activities under the Medium-Term Environmental and Chemical Management Plan.

1. CO2 Reduction Targets and Current Emissions

CO2 Emissions Reduction Target

Promotion of CO2 reductions with attention to government goals

In FY2012, JSR established its "System to Reduce Total CO2 Emissions from Three plants by 6% Compared to FY1990" 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 FY2017, JSR successfully reduced CO2 emissions by approximately 9% over FY1990 levels.

JSR

Domestic Group Companies

Overseas Group Companies

2. 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)

The Yokkaichi Plant installed a natural gas-fired turbine cogeneration system in April 2010. By using natural gas instead of coal, a heavy oil-fired steam boiler and condensing steam turbine system, this new system helped us to cut CO2 emissions by approximately 35,000 tons in FY2017.

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

Sludge dryer system (Yokkaichi Plant)

In FY2012 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 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 approximately 1,600 tons in FY2017.

Example 3: Measures to Cut Power Consumption at the Head Office

Power Saving Target for the Head Office

8% reduction compared to the average power consumption from the base years of FY2009 and FY2010

Major Efforts

• - Policy of turning off lights and office equipment such as printers when not in use.
• - Implemented the so-called "Cool Biz" dress code.
• - Introduced a daylight savings time scheme on two days/week from June to September.
• - Maintained a proper air-conditioned room temperature that achieves a balance between energy savings and operational efficiency.

Power Consumption at the Head Office

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 FY2017, as a result of these efforts, our power consumption decreased by 21% over the average consumption of the base years.

(3) Actions for Scope 3

1. Environmental Measure in Logistics: Improving Transport Efficiency

As part of our environmental efforts in transportation, we have taken steps to reduce our transport energy use as a designated shipper under the amended Energy Conservation Act. We are working to reduce per-unit transport energy by switching to large-scale transport and making a modal shift from road to rail and water transport.
In FY2017, as a result of policies to transport goods and raw materials by railway and ship, we achieved a modal share of approximately 86%, thus maintaining last year's high level, and successfully held down per-unit transportation energy.

Transport Statistics

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