Reducing greenhouse gas emissions to mitigate climate change is an urgent, global-scale challenge, and it is also a priority issue for the Niterra Group. In particular, as a corporate group engaged in manufacturing, we believe that reducing CO2 emissions from our business activities is a responsibility that our Group must fulfill.
On the premise of aiming to achieve carbon neutrality by 2050, we have declared in “Eco Vision 2030” a target of reducing CO2 emissions (Scope 1 and 2) by 30% by FY2030 compared to FY2018 levels. We will also strive to reduce CO2 emissions across the supply chain and product lifecycle, aiming to achieve the target of reducing CO2 emissions (Scope 3) by 30% by FY2030 compared to FY2018 levels.
Toward achieving these targets, we will implement various measures under four key plans, “Plan A: Energy Conservation,” “Plan B: Manufacturing and Work Style Improvement,” “Plan C: Energy Creation,” and “Plan D: Procurement/Certificates,” thereby promoting both systematic CO2 emissions reduction and economic growth. In the future, we will establish a carbon circulation system and promote the use of hydrogen to reduce CO2 emissions both inside and outside the company so as to contribute to resolving climate change issues.
| Item | Target |
|---|---|
| Scopes 1 and 2 |
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We have created a roadmap to achieve a 30% reduction in Scope 1 and 2 CO2 emissions by 2030. The roadmap mainly consists of four key plans -- “Plan A: Energy Conservation,” “Plan B: Manufacturing and Work Style Improvement,” “Plan C: Energy Creation,” and “Plan D: Procurement/Certificates.” We will implement various measures under these four plans to promote both systematic reduction of CO2 emissions and economic growth.
When introducing production equipment, we create a checklist for energy-efficient design and conduct checks using it. For existing production equipment and ancillary equipment, we are working on equipment improvement to reduce standby energy consumption during holidays and at night.
In addition, we carry out periodic inspections and maintenance to prevent air leaks and other energy loss due to aging equipment.
In addition to switching to LED lighting and turning off lights and PCs during breaks, we encourage “Cool Biz” wear in summer and “Warm Biz” in winter and appropriately control temperature, humidity, and ventilation to save energy.
We review manufacturing conditions (profiles) on an as-needed basis to avoid using excessive energy for production. The amount of CO2 emissions of each internal business company is visualized on an internal dashboard, and daily improvement activities are being carried out at each site to ensure production is as energy efficient as possible. Our Group works as one to promote energy saving activities by sharing successful improvement cases across the Group.
We enhance the use of renewable energy, including solar energy, hydropower, and geothermal energy.
Niterra do Brasil Ltda. and Niterra India Private Limited are equipped with solar power generation units with a maximum power generation capacity of 793 kW and 514 kW, respectively.
The Komaki plant has a solar power generation unit with a maximum power generation capacity of 120 kW and a small hydro generation unit. At the Okusa plant of Sparktec WKS Co., Ltd., a geothermal heat pump system is installed, and the Nagoya plant of the company is equipped with a solar power generation unit and a solar water heater. Our group’s total renewable electricity output in FY 2021 was 2.02 million kWh, which is equivalent to a reduction of 358 tons of CO2.
The Komaki plant already has a hybrid power system using a fuel cell with a rated power output of 250 kW and a compact fuel cell system with a rated power output of 20 kW. We will continue to take on the challenge of reducing CO2 emissions through the creation of clean energy by studying the possibility of installing various energy devices, such as pure hydrogen fuel cell systems and storage batteries.
Pressurized hybrid power systemThe headquarters and SparkTech WKS’s Satsuma Plant and Satsuma Electrode Plant use CO2-free electricity for 100% of their power needs. This initiative has reduced CO2 emissions by approximately 200 tons per year at the headquarters and approximately 20,000 tons per year at the Satsuma and Satsuma Electrode Plants.
We are considering introducing CO2-free electricity at our business sites in the Tohoku area in the future.
In order to contribute to the realization of a carbon-neutral society, we are developing methanation-related technologies (hydrogen production technology that applies ceramic solid electrolytes and CO2 recovery technology that applies oxygen concentrator technology).
As part of efforts to further reduce CO2 emissions, the CO2 emission reduction rate is included as one of the performance indicators for the performance-linked stock compensation plan for directors (excluding directors who are members of the audit and supervisory committee and outside directors) and executive officers (excluding employed officers).
To reduce emissions in Scopes 1 and 2 with the aim of achieving carbon neutrality, we take the following awareness-raising measures: internal carbon pricing, internal carbon taxation, and an internal environmental fund.
For internal carbon pricing, our group has decided to collect 10,000 yen per ton of CO2. Internal carbon taxation is a system under which fees are collected from departments, including internal business companies and group companies, depending on the amount of their CO2 emissions. This system is expected to further raise awareness of and accelerate CO2 emissions reduction.
The internal environmental fund is a system to appropriate the fees collected through internal carbon taxation for capital investment as a grant to reduce CO2 emissions. For example, in FY 2021, we provided a grant for a solar power generation unit to Niterra India Private Limited.
Under this initiative, our company receives from Chubu Electric Power Miraiz a supply of electricity with added environmental value, which is derived from surplus electricity* generated from solar power systems at employees’ homes, and uses the supplied electricity at the Komaki Plant. In addition, employees who provide environmental value of surplus electricity will be given incentives through Chubu Electric Power Miraiz.
Through this initiative, we will promote carbon neutrality together with our employees.
| Item | Target |
|---|---|
| Scope 3:Category 1 “Purchased goods and services” Category 4 “Upstream transportation and distribution” (in part) Category 11 “Use of sold products” |
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Scope 3 emissions are indirect greenhouse gas emissions excluding those in Scopes 1 and 2 (emissions from other companies associated with our business operations), divided into 15 categories.
Our emissions in Category 1 “Purchased goods and services,” Category 4 “Upstream transportation and distribution,” and Category 11 “Use of sold products” make up 97.6％ of our total Scope 3 emissions. Therefore, we work on reducing CO2 emissions by setting a target to be achieved by FY 2030 in terms of these three categories.
For Category 1 emissions, through the CSR and Sustainability Procurement Guidelines, we ask our business partners to set a target for reducing CO2 emissions and work toward achieving the target. We also provide our business partners with support when needed.
For Category 4 emissions, as a specified consigner stipulated in the Act on the Rational Use of Energy, we work to reduce CO2 emissions associated with transportation by reducing shipping distances through the restructuring/consolidation of plants and the reconsideration of waste-disposal service vendors.
For Category 11 emissions, which account for the largest portion of total Scope 3 emissions, we work on, for example, designing products to improve their energy efficiency while being used.
To promote CSR and sustainability initiatives throughout our supply chain, we have issued the “CSR and Sustainability Procurement Guidelines” and distributed them to our suppliers.
These Guidelines stipulate what we expect our suppliers to comply with. They also outline our response to climate change, and in the Guidelines, we ask our suppliers to set CO2 reduction targets and take measures to achieve them. We also ask our suppliers to disseminate these Guidelines to their suppliers and encourage their implementation.
In order to understand CO2 emissions related to our company at our suppliers, we have been conducting surveys of CO2 emissions related to products for our company. We also provide necessary support to suppliers upon request depending on the amount of their CO2 emissions.
We hold seminars for our suppliers to introduce the risks of climate change and our efforts to reduce CO2 emissions as case studies.
Products manufactured at our plants are transported by land to the nearest port and shipped by sea worldwide.
Products manufactured at the Satsuma Plant were previously shipped overland to Nagoya Port and Hakata Port, but we have additionally started using Satsumasendai Port, which is located close to the Satsuma Plant. By transporting some of the products manufactured at the Satsuma Plant to the Satsumasendai Port, we aim to achieve more efficient transportation and reduce CO2 emissions from land transport.
By reviewing logistics bases, we expect to achieve an annual CO2 emission reduction of approximately 42 tons.
Our Group also contributes to CO2 reduction in its own products.
Among our products, we certify products with particularly high environmental performance throughout their product lifecycles as “Nittoku Green Products,” and we strive to expand our lineup of such products.
For example, a vehicle equipped with precious metal plugs and wide-range oxygen sensors certified as “Nittoku Green Products” saves 13 liters of gasoline annually per vehicle and reduces CO2 emissions by about 30 kg per year compared to a vehicle equipped with conventional products.
Assuming that precious metal plugs are installed in 80 million vehicles per year, this would lead to a reduction of approximately 2.4 million tons of CO2 emissions. Similarly, assuming that wide-range oxygen sensors are installed in 25 million vehicles, CO2 emissions would be reduced by approximately 750,000 tons.
In July 2020, the Niterra Group announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
We will examine the impact of climate change on our Group’s business, strategies, and finance within the company-wide risk management framework based on TCFD Recommendations, and these topics will be discussed at the Risk Management Committee and the CSR and Sustainability Committee attended by the entire board of directors. We will also promote voluntary and proactive disclosure of information in accordance with the recommendations.
To enhance our efforts to mitigate climate change, our group participates in the following organizations and initiatives: