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Climate Change Countermeasures

Initiatives to Reduce CO2 Emissions at Our Business Sites

The Sumitomo Riko Group is working to reduce CO2 emissions and energy consumption through introduction of high-efficiency production facilities, maintenance to prevent steam leakage, consolidation of production lines, and wider use of photovoltaic power generation as well as undergoing energy-saving diagnostics and making proposals for reduction of energy consumption.

CO2 emissions (Sumitomo Riko Group)

CO2 emissions of the Sumitomo Riko Group as a whole in fiscal 2020 decreased 14.3% compared with fiscal 2017. CO2 emission intensity in fiscal 2020 was 0.2% increase compared to fiscal 2017.

CO2 emissions (Sumitomo Riko Group)

Independent Assurance

Graph: CO2 emissions (Sumitomo Riko Group)
  • *1 Data boundary in fiscal 2016: Sumitomo Riko, eight Sumitomo Riko Group companies in Japan, and 25 Sumitomo Riko Group companies overseas.
  • *2 17 Sumitomo Riko Group companies overseas were added to the boundary of data aggregation from fiscal 2017.
  • *3 The denominator of the emission intensity is net sales of companies within the scope of data aggregation (after elimination of intracompany transactions).
  • *4 For CO2 emission coefficients for electricity in fiscal 2020, coefficients by country for 2017 indicated in "CO2Emissions From Fuel Combustion (2019 edition)" published by the International Energy Agency (IEA) are applied.
  • *5 For CO2 emission coefficients for non-electricity, coefficients indicated in “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.3.2)” (June 2018) published by the Ministry of the Environment of Japan are applied.
  • *6 Emission intensities are not covered by the third-party assurance.

Energy consumption (Sumitomo Riko Group)

Energy consumption of the Sumitomo Riko Group as a whole in fiscal 2020 fell by 9.3% compared with fiscal 2017.

Energy consumption (Sumitomo Riko Group)

Independent Assurance

Graph: Energy consumption (Sumitomo Riko Group)
  • *1 Data boundary in fiscal 2016: Sumitomo Riko, eight Sumitomo Riko Group companies in Japan, and 25 Sumitomo Riko Group companies overseas.
  • *2 17 Sumitomo Riko Group companies overseas were added to the boundary of data aggregation from fiscal 2017.

Example of reduction in CO2 emissions

1.Introduction of photovoltaic power generation

Photo

Solar panels installed on the roof, TRIN (India)

Solar power generation is a typical renewable energy source that does not produce greenhouse gases, therefore, the Sumitomo Riko Group has been actively adopting this technology. In fiscal 2018, Tokai Rubber (Guangzhou) Co., Ltd. introduced 2,440 kW, and Tokai Rubber Auto-Parts India Pvt. (abbreviated as TRIN, India) introduced 365kW, and in fiscal 2019, Tokai Imperial Hydraulics India Pvt. (India) installed a new 700kW facility for solar power generation.

2.Introduction of Heat Recovery type Air Conditioners

Photo

Appearance of equipment SRK-P (Poland)

In the rubber vulcanization process, a large amount of heat is contained in the exhaust gas. SumiRiko Poland Sp. z o.o. (abbreviated as SRK-P, Poland) has introduced a heat recovery air-conditioning system to reuse the exhaust heat from vulcanization waste gas for air-conditioning at the plant, which reduced energy consumption and CO2 emissions.

3.Energy-saving diagnostics

Photo

Energy-saving diagnostics, TRT(China)

The Sumitomo Riko Group is working on energy-saving diagnostics in order to reduce CO2 emissions at production processes. Until the previous fiscal year, we had asked outside experts to perform the diagnosis, but we are now training our employees to perform such diagnosis in-house, so that it can be carried out regularly and continuously. As a first step, we are working to build up diagnostic know-how in Sumitomo Riko for later deployment in the rest of the Group.

Initiatives for CO2 Reduction in Logistics

Promotion of modal shift and transportation efficiency

Sumitomo Riko is trying to reduce the environmental impact of logistics by reforming transportation methods (modal shift), consolidating cargo and using larger vehicles to make fewer deliveries than before (reduction of the number of deliveries), and other efficient transportation methods.
In fiscal 2020, there were concerns about a decrease in production volume due to the impact of the new coronavirus and a decrease in transportation efficiency of regular deliveries due to a decrease in transportation volume. However, thanks to efforts such as reducing the number of deliveries by optimizing the truck loading ratio, CO2 emissions intensity remained almost unchanged from the previous year at 1.77 (t-CO2/100 million yen), and the total amount of CO2 emissions decreased to 2607 t-CO2, down 16.5% from the previous year.
In addition, we have received the following awards in recognition of our efforts to reduce CO2 emissions so far.

CO2 emissions in logistics (Sumitomo Riko, non-consolidated)
Graph: 物流CO2排出量 (Sumitomo Riko, non-consolidated)
  • *1 Calculation standards for CO2 emissions are based on the "Energy Conservation Act Guidebook for Shippers" edited by the Energy Efficiency Division of the Agency for Natural Resources and Energy and the "Greenhouse Gas Emissions Calculation and Reporting Manual" by the Ministry of the Environment and the Ministry of Economy, Trade and Industry.
  • *2 Sumitomo Riko's non-consolidated sales amount was used as a denominator for the calculation of emission intensity.

Breakdown of CO2 Emissions in the Entire Supply Chain (Sumitomo Riko Group)

In order to achieve carbon neutrality by 2050, we recognize the importance of grasping not only the direct CO2 emissions from our own business activities (Scope 1) and indirect emissions from the use of purchased electricity (Scope 2), but also the indirect emissions from the entire supply chain (Scope 3), such as emissions from the procurement of raw materials and the use and disposal of products sold, and working to reduce CO2 emissions.
The Sumitomo Riko Group's overall supply chain CO2 emissions in fiscal 2020 were 7.2% for Scope 1+2 and 92.8% for Scope 3. We will continue our efforts to reduce emissions, starting with those items that are expected to have the greatest reduction effect.

サプライチェーン全体での<sub>2</sub>排出量内訳(住友理工グループ)

Breakdown of CO2 Emissions

  • Scope1: 74 thousand t-CO2/year
  • Scope2: 270 thousand t-CO2/year
  • Scope3: 4,401 thousand t-CO2/year
  • ※ Category 1 = Purchased products and services
    Category 11 = Product use
    Other = Categories 2-10, 12-15

Obtaining SBT Certification

In April 2021, the greenhouse gas emission reduction targets of the Sumitomo Electric Group, including Sumitomo Riko, were certified by SBTi. The Group's greenhouse gas reduction target is to reduce Scope 1+2 by 30% by fiscal 2030 based on fiscal 2018 standards, and Scope 3 by 15% by fiscal 2030 based on fiscal 2018 standards. As a member of the Sumitomo Electric Group, Sumitomo Riko defines environmental conservation efforts to be one of the most important management issues, and will continue to work on environmental conservation through the provision of its products and services.

Future Issues and Responses

In fiscal 2021, the business unit promotion managers will lead activities to achieve the fiscal 2022 target (8% reduction of emission intensity compared to fiscal 2017).
The main contents of CO2 reduction measures are as follows. We check the implementation status of reduction plans in each department and promote reduction activities.

  1. Energy conservation activities: Activities to identify energy waste and reduce it by making improvements (e.g., effective use of energy conservation diagnoses)
  2. Monozukuri Innovation: Activities to reduce CO2 emissions through the development of innovative technologies for production processes.

In fiscal 2021, we will continue with the above two measures, and in addition, the person in charge of promoting activities in the Business Unit will deploy highly effective reduction examples to effective sites, in an effort to strengthen the reduction activities of each Group company.

SUMITOMO RIKO COMPANY LIMITED.

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