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Environmental Preservation

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

Updated in October 2022

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

Initiatives Aimed at Curbing GHG Emissions

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). These targets focused on reducing GHG emissions by 26% by fiscal 2030 and by 85% by fiscal 2050 in comparison with the fiscal 2013 levels.
Later, as the world accelerated its efforts to tackle climate change, the Japanese government announced a declaration on carbon neutrality in October 2020. In response, we have announced that we aim to become carbon neutral (net zero emissions) by 2050, and we have also strengthened our 2030 reduction target to 50% of the fiscal 2013 level. To achieve this goal, we will further enhance and accelerate the following initiatives.

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

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

  • * Denka Group (consolidated)
  • * Starting from the Denka Report 2021, values for the entire Denka Group are shown.

Examples of Initiatives

Emissions (Scope 3) across the entire product value chain in fiscal 2021 increased in categories such as purchased raw materials, transportation, and disposal as economic activity recovered and production increased.
We will strive to reduce emissions (Scope 3) throughout the entire product value chain by working with our upstream and downstream business partners, as well as by developing and providing environmentally friendly products and technologies that reduce environmental impact through our unique technologies.

Current State of Greenhouse Gas Emissions from the Value Chain (Scope 3, Fiscal 2021)

Current State of Greenhouse Gas Emissions from the Value Chain (Scope 3, Fiscal 2021)

Initiatives to Maintain Zero Emissions

We have reduced the volume of industrial waste generated by our facilities via the utilization of such waste as an alternative source of fuel and heat energy 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.

Initiatives for Curbing Fluorocarbon Emissions

Denka is striving to implementing the following initiatives to fulfill our responsibilities as an administrator who owns the target devices*1.

1.
From April 1 2020, all equipment owned by non-consolidated seven sites containing fluorocarbons*2 had been registered with the Refrigerant Management System (RaMS) developed by the Japan Refrigerants and Environment Conservation Organization (JRECO), we are appropriately managing equipment in general, from equipment installation to disposal, as stipulated in the Fluorocarbons Emissions Control Law.
2.
In the course of renewing aged air conditioners and freezers, we promote the switchover to refrigerants with less global warming potential.
We will continue to implement appropriate inspections and early measures to prevent leaks, and take steps to prevent global warming as well as comply with laws and regulations.
We will continue to promote the group.

Going forward, we will steadily implement proper inspections and measures aimed at ensuring the early prevention of leakage and take steps to prevent global warming as well as comply with laws and regulations.

Actual amount of chlorofluorocarbon leakage from Denka business sites (seven sites + one research institute)
Fiscal year 2017 2018 2019 2020 2021
Estimated volume of leakage (t-CO2) *3 440t-CO2 415t-CO2 640t-CO2 572t-CO2 790t-CO2
  • *1Equipment scope: Class 1 specified products as defined in the Act on Rational Use and Proper Management of Fluorocarbons (commercial air conditioners, freezers, and refrigerators)
  • *2Total machines: 6,112 (3,804 air conditioning machines / 2,308 refrigerators and freezers) As of March 2022
  • *3Estimated volume of leakage: CO2 equivalent
Conduct of Third-Party Verification

We have undergone a third-party verification of our GHG emissions data. This verification was undertaken by Bureau Veritas Japan 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, 2020 to March 31, 2021

[Scope of the verification]
Scope 1 and 2 GHG emissions (CO2 emissions from energy and non-energy sources)
Categories 1, 6 and 7 of the Scope 3 GHG emissions
[Applicable Sites]
Denka’s ten domestic plants (Omi, Omuta, Chiba, Bibai, Shibukawa, Ofuna, Isesaki, Isesaki-Ota, Niigata and Kagamida)
Categories 1, 6 and 7 of the Scope 3 GHG emissions
[Scope of Calculation]

Scope 1 and 2 are energy and non-energy sources CO2 emissions associated with business activities at Denka’s ten domestic plants from April 2020 to March 31 2021.
Scope 3 is Category 1, 6 and 7 emissions from April 2020 to March 31 2021.
However, the calculation range for each category is based on our decision.

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