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Environmental Preservation

Initiatives Aimed at Curbing GHG Emissions and Reduction Targets for GHG Emissions

Initiatives Aimed at Curbing GHG Emissions and Reduction Targets for GHG Emissions

Reducing the Volume of GHG Emissions to Eventually Achieve Carbon-Neutral Status

To contribute to the realization of the “well-below 2°C target” of the Paris Agreement, in fiscal 2019, we formulated medium- and long-term targets for the reduction of GHG emission volumes (Scope 1 and 2). In line with these targets, our previous efforts have focused on reducing GHG emissions by 26% by fiscal 2030 and by 85% by fiscal 2050 in comparison with the fiscal 2013 levels. However, with the Japanese government declaring its intention to pursue carbon-neutral status in October 2020 amid the growing trend toward the acceleration of international initiatives aimed at countering climate change, we have updated our GHG emission volume reduction targets and decided to strive for the achievement of carbon-neutral status by the end of 2050. To this end, we will step up and accelerate the initiatives listed below.

Examples of Initiatives

Our Medium- and Long-Term Targets for Reduction in GHG Emissions (Scope 1 and Scope 2)

Our Medium- and Long-Term Targets for Reduction in GHG Emissions (Scope 1 and Scope 2)

Scope3 Emissions

  • Note: GHG emissions associated with “Category 10: Processing of sold products” and “Category 11: Use of sold products” have been excluded due to difficulties in performing accurate and reliable calculations.
  • * GHG emissions attributable to waste emissions associated with business operations as well as those attributable to transportation, distribution and employees’ business trips and commuting
Initiatives to Maintain Zero Emissions

We have reduced the volume of industrial waste generated by our facilities via the utilization of such waste as alternative fuel for cement kilns and the improvement of various production processes. We have thus achieved “zero emission”* status and are concentrating on maintaining it. Going forward, we will consider measures to achieve an even greater reduction in the volume of waste currently being disposed of by landfill. In addition, as our cement kilns accept waste from both in-house and external sources, we are helping regional communities curb the volume of waste they dispose of.

  • * In Denka’s definition, “zero emissions” means an emission ratio (amount of landfill waste/ amount of waste generated x 100) lower than 1%.); the “zero emission” status applies only to Denka’s domestic production bases, including its affiliates.
Initiatives to Enhance Information Disclosure

Today, ESG investment—an investment approach that emphasizes investees’ efforts to fulfill their corporate social responsibilities—has become a subject of public interest. In step with this trend, the disclosure of information associated with business efforts that address environmental concerns has become a matter of growing importance. With this in mind, we are proactively disclosing information on our initiatives aimed at reducing environmental burdens via financial and other reporting outlets while releasing such information through external frameworks, including the CDP.
We have been responding to climate change-related and water-related questions from the CDP since fiscal 2015 and fiscal 2019, respectively. As a result, we were granted “A-” and “B” ratings under the CDP2019 scoring program for our climate change-related and water-related initiatives. Moreover, in fiscal 2020 we announced our support of the Task Force on Climate-related Financial Disclosures (TCFD). Looking ahead, we will also strive to practice appropriate information disclosure in conformity with guidelines issued by the TCFD.

Initiatives for Curbing Fluorocarbon Emissions

The Act for Rationalized Use and Proper Management of Fluorocarbons which entered effect in April 2015 defined comprehensive countermeasures spanning the entire life cycle—from production to disposal—of fluorocarbons which destroy the ozone layer and cause global warming. To fulfill our obligations as a manager in possession of applicable equipment*1 under this law, Denka conducts proper equipment maintenance and inspection. At the same time, Denka systematically renewed facilities and worked on fundamental improvement by using refrigerants with little greenhouse effects.
As a result, while managers are obliged to report when annual calculated leakage exceeds 1,000 t-CO2*2, we have been maintaining our performance below this value.

FY FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Calculated leakage 812t-CO2 448t-CO2 440t-CO2 415t-CO2 640t-CO2
  • *1 Equipment scope: Class 1 specified products (commercial air conditioners, freezers, and refrigerators)
  • *2 t-CO2: Conversion value to CO2

Furthermore, as the Act for Rationalized Use and Proper Management of Fluorocarbons did not achieve the target fluorocarbon collection rate during disposal, a revision was announced in June 2019 which entered effect in April 2020. Regarding the newly added requirements for ledger management during equipment disposal and storage of inspection records for three years after disposal, on April 1, 2020, Denka started operating at all our sites the refrigerant management system (RaMS) by the Japan Refrigerants and Environment Conservation Organization which has the only information processing center recognized by the national government. We are not only complying with laws and regulations but also further strengthening initiatives for the prevention of global warming.

Type of equipment Commercial air conditions Commercial freezers and refrigerators Total
Number of units registered in RaMS 3,606 units 2,094 units 5,700 units
As of June 2020
Conduct of Third-Party Verification

We have undergone a third-party verification of our GHG emissions data. This verification was undertaken by Bureau Veritas Co., Ltd. and was intended to enhance the reliability and ensure the transparency of said GHG emissions data through independent verification as part of initiatives aimed at continuously stepping up our environmental management. For details, please see the report posted on the website.

[Period covered by the verification]

April 1, 2018 to March 31, 2019

[Scope of the verification]

① Scope 1 and 2 GHG emissions (CO2 emissions from energy and non-energy sources)
②Categories 1, 6 and 7 of the Scope 3 GHG emissions

[Applicable Sites]

Denka’s six domestic plants (Omi, Omuta, Chiba, Shibukawa, Ofuna and Isesaki)
② Categories 1, 6 and 7 of the Scope 3 GHG emissions

[Scope of Calculation]

For Category 1 (purchased goods and services), the scope covers goods and services procured by six domestic plants (Omi, Omuta, Chiba, Shibukawa, Ofuna and Isesaki) that accounted for the top 90% of procurement transaction costs. For Category 6 (business travel) and Category 7 (employee commuting), the scope covers all employees at Denka.

[Verification Report]
デンカ株式会社, デンカ株式会社 IR室
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