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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 2019 decreased 7.2% compared with fiscal 2017. CO2 emission intensity in fiscal 2019 was 3.2% lower than in fiscal 2017.

CO2 emissions (Sumitomo Riko Group)

Independent Assurance

Graph: CO2 emissions (Sumitomo Riko Group)
  • *1 Data boundary in fiscal 2015 and fiscal 2016: Sumitomo Riko, nine Sumitomo Riko Group companies in Japan, and 14 Sumitomo Riko Group companies overseas.
  • *2 16 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 2019, coefficients by country for 2016 indicated in "CO2 Emissions From Fuel Combustion (2018 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 2019 fell by 2.7% compared with fiscal 2017.

Energy consumption (Sumitomo Riko Group)

Independent Assurance

Graph: Energy consumption (Sumitomo Riko Group)
  • *1 Data boundary in fiscal 2015 and fiscal 2016: Sumitomo Riko, nine Sumitomo Riko Group companies in Japan, and 14 Sumitomo Riko Group companies overseas.
  • *2 16 Sumitomo Riko Group companies overseas were added to the boundary of data aggregation from fiscal 2017.

Breakdown of CO2 emissions throughout the supply chain (Sumitomo Riko Group)

Following its selection in fiscal 2018, Sumitomo Riko was again selected for the Ministry of the Environment’s “Public Support for Supply Chain Emissions Accounting” project for fiscal 2019 to calculate Scope 3 emissions of the Sumitomo Riko Group (calculated based on results for fiscal 2018). In future, we will proceed with the formulation of medium- to long-term reduction targets for the entire supply chain, including emissions from the use of sold products (Category 11).

Graph: Breakdown of CO2 emissions throughout the supply chain (Sumitomo Riko, non-consolidated)

Breakdown of CO2 emissions

  • Scope1: 84 thousand t-CO2/year
  • Scope2: 314 thousand t-CO2/year
  • Scope3: 1,716 thousand t-CO2/year
  • * Category 1: Purchased goods and services
    Category 2: Capital goods
    Category 3: Fuel and energy related activities
    Category 4: Transportation and distribution (upstream)
    Others: Category 5 to 7, 9, 10, 12 and 15

Example of reduction in CO2 emissions

1.Introduction of photovoltaic power generation

Photo

Solar panels installed on the roof, TRIN (India)

The Sumitomo Riko Group is vigorously introducing photovoltaic power generation because it is clean, emitting no air pollutants such as carbon dioxide (CO2), sulfur oxides (SOx), and nitrogen oxides (NOx) during power generation. In fiscal 2018, Tokai Rubber (Guangzhou) Co., Ltd. (China) and Tokai Rubber Auto-Parts India Pvt. Ltd. (India) introduced a 2,440 kW system and a 365 kW system, respectively.

2.Introduction of a wood-fired boiler

Photo

Newly installed wood-fired boiler, SRK-BI (Brazil)

In the calculation of CO2 emissions according to the United Nations Framework Convention on Climate Change and the Kyoto Protocol, CO2 emissions by combustion of timber are excluded because plant-derived CO2 is by its very nature highly recyclable. In this regard, SumiRiko do Brasil Indústria de Borrachas Ltda. (Brazil), which previously had been using an LPG-fired boiler, installed a new boiler that can use waste wood as fuel. This has resulted in major reductions in LPG consumption and CO2 emissions, because not only waste wood but also waste wooden pallets are used as fuel.

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

To control emissions of CO2, NOx and floating particles (PM) discharged from our trucks traveling on the road, Sumitomo Riko has been promoting high-efficiency transportation through (1) change of transportation methods (modal shift) and (2) intensive transportation (using larger vehicles and combining deliveries to reduce the number of trips), thereby reducing the environmental burden. For this purpose, we are accelerating modal shift of transportation from truck to ship.
In fiscal 2018, the impact of blocked railroads caused by natural disasters resulted in an increase in CO2 emissions, but in fiscal 2019, we undertook a drastic review of cargo and transport routes and aggregation of warehouses, which led to a reduction in the number of trips. We also resumed rail transport. These and other activities resulted in a major reduction in CO2 emission intensity to 1.74 t-CO2 per 100 million yen of output, which was approximately 15% less than the previous year.

CO2 emissions in logistics (Sumitomo Riko, non-consolidated)
Graph: 物流CO2排出量 (Sumitomo Riko, non-consolidated)
  • *1 CO2 emissions calculations were made as prescribed in the Guidebook on Energy Saving for Shippers, authored/edited by the Energy Efficiency and Conservation Division of the Agency for Natural Resources and Energy, and in the Manual on Calculation and Reporting of Emissions of Greenhouse Gases (Ver. 4.3.2, June 2018), published 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.

Issues to Be Addressed and Responses

Environmental Management Promotion Officers of Business Headquarters will lead our CO2 emissions reduction initiatives in fiscal 2020 to achieve the objective for fiscal 2022 (8% reduction of the emission intensity compared with fiscal 2017). Our CO2 emissions reduction measures are summarized below. The progress of implementation of the reduction plan of each business unit is monitored to promote reduction initiatives.

  1. Energy-saving activities: Activities to detect any energy-saving potential and implement corresponding measures (e.g. effective use of energy-saving diagnostics)
  2. MONOZUKURI innovation: Activities to reduce CO2 emissions through the development of innovative technologies for production processes

In fiscal 2020, Sumitomo Riko continues to pursue these two approaches. Regarding cases in which initiatives achieved significant CO2 emissions reduction, Environmental Management Promotion Officers of Business Headquarters will take the lead in applying them to other sites where such measures are expected to be effective, thereby enhancing CO2 emissions reduction initiatives throughout the Sumitomo Riko Group.

SUMITOMO RIKO COMPANY LIMITED.

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