Responding to Climate Change
Environment (E)
- Long-Term Environmental Vision and Environment 2029V
- Environmental Management
- Responding to Climate Change
- Responding to Water Risks
- Contributing to a Resource-Recycling Society
- Contributing to a Society in Harmony with Nature
- Appropriate Chemical Substance Management
- Environmental Communication
- Environmentally Friendly Products
Shareholders and Investors, Suppliers and Other Trade Partners, Local Communities, Global Environment
Basic Approach
The Sumitomo Riko Group has set greenhouse gas (GHG) reduction targets with the aim of becoming carbon neutral by 2050, and is making company-wide efforts to reduce not only its own CO2 emissions (Scope 1 and 2) but also CO2 emissions from its supply chain (Scope 3).
In terms of reducing our own emissions, we are taking a two-pronged approach, not only by switching to renewable energy sources but also by reducing production energy. We are also promoting climate change mitigation and adaptation by fully demonstrating our core technologies in manufacturing, materials, and product development. With regard to the supply chain, we are planning and implementing measures to reduce CO2 emissions related to the purchase, transportation, and disposal of raw materials and parts.
In terms of reducing our own emissions, we are taking a two-pronged approach, not only by switching to renewable energy sources but also by reducing production energy. We are also promoting climate change mitigation and adaptation by fully demonstrating our core technologies in manufacturing, materials, and product development. With regard to the supply chain, we are planning and implementing measures to reduce CO2 emissions related to the purchase, transportation, and disposal of raw materials and parts.
Medium- and Long-Term Targets for GHG Reduction
| Item | Target Year | CO2 Reduction Target Value |
|---|---|---|
| Sumitomo Riko Group Long-Term Environmental Vision 2050 | 2050 | Achievement of Carbon Neutrality |
| 2029 Sumitomo Riko Group Vision (2029V) | FY 2029 | Scope1+2 30% decrease from FY2018 Scope3 15% decrease from FY2018 |
|
2025 Sumitomo Riko Group Mid-term Management Plan (2025P) |
FY 2025 | Scope1+2 20% decrease from FY2018 |
Acquisition of SBT Certificate
In April 2021, the GHG emission reduction targets of the Sumitomo Electric Group, including Sumitomo Riko, were certified under the SBTi (Science Based Targets initiative). The target values were set as "30% reduction of Scope 1+2 by FY2030 based on FY2018 standards, and 15% reduction of Scope 3 by FY2030 based on FY2018 standards."
These targets are consistent with the Paris Agreement (Well Below 2°C: WB2°C: the level at which the global temperature increase is well below 2°C above pre-industrial levels). As the IPCC AR6 Synthesis Report indicates, further efforts to reduce GHG emissions are needed, so we have decided to advance the target achievement year by one year, with a view to the 1.5°C target in the "Environment 2029V" announced in 2023.
These targets are consistent with the Paris Agreement (Well Below 2°C: WB2°C: the level at which the global temperature increase is well below 2°C above pre-industrial levels). As the IPCC AR6 Synthesis Report indicates, further efforts to reduce GHG emissions are needed, so we have decided to advance the target achievement year by one year, with a view to the 1.5°C target in the "Environment 2029V" announced in 2023.
Disclosure on Climate Change Response
Sumitomo Riko Group expressed its support for the TCFD's recommendations in June 2022 and has been striving to disclose appropriate information through its annual securities reports, integrated reports, and this website. We will continue to improve the quality of information disclosure based on trends in international sustainability disclosure standards such as ISSB standards.
Related Information
Efforts to Reduce GHG Emissions in Business Activities
The Sumitomo Riko Group is working to reduce GHG emissions through the introduction of high-efficiency production equipment, maintenance of steam leaks, consolidation of production lines, expansion of solar power generation, and proposals for reduction through energy audits.
GHG Emissions (Sumitomo Riko Group)
The Sumitomo Riko Group as a whole reduced greenhouse gas emissions in FY2023 by 26.6% compared to FY2018. In addition, In FY2023, emissions intensity per sales decreased by 44.3% compared to FY2018.
*1 The denominator of the intensity is the sales amount (after elimination of internal transactions) in the scope of aggregation.
*2 In FY2023, the CO2 emission factor for electricity is changed from location-based to market-based, and the emission factors for each electric utility (in part, the 2020 country-specific factors listed in the IEA “Emissions Factors 2022”) are used.
*3 CO2 emission factors other than those for electricity are those listed in the "Manual for Calculation and Reporting of Greenhouse Gas Emissions" published by the Ministry of the Environment.
*4 The factors have been changed since FY2023 in accordance with the revision of the Act on Promotion of Global Warming Countermeasures.
*5 The quantitative emissions data in this section is assured by a third-party organization. However, the emission intensity is not included in the assurance.
*2 In FY2023, the CO2 emission factor for electricity is changed from location-based to market-based, and the emission factors for each electric utility (in part, the 2020 country-specific factors listed in the IEA “Emissions Factors 2022”) are used.
*3 CO2 emission factors other than those for electricity are those listed in the "Manual for Calculation and Reporting of Greenhouse Gas Emissions" published by the Ministry of the Environment.
*4 The factors have been changed since FY2023 in accordance with the revision of the Act on Promotion of Global Warming Countermeasures.
*5 The quantitative emissions data in this section is assured by a third-party organization. However, the emission intensity is not included in the assurance.
Primary Energy Consumption (Sumitomo Riko Group)
The primary energy consumption by the entire Sumitomo Riko Group in FY2023 decreased by 11.8% compared to FY2022.
*1 The emission intensity is not included in the assurance.
*2 The denominator of the intensity is the sales amount (after elimination of internal transactions) of the scope of aggregation.
*3 Primary energy conversion factors are based on the Law Concerning the Rational Use of Energy (Energy Conservation Law) of Japan's Ministry of Economy, Trade and Industry.
*4 Since FY2023, the factors have been changed in accordance with the revision of the Energy Conservation Law.
*2 The denominator of the intensity is the sales amount (after elimination of internal transactions) of the scope of aggregation.
*3 Primary energy conversion factors are based on the Law Concerning the Rational Use of Energy (Energy Conservation Law) of Japan's Ministry of Economy, Trade and Industry.
*4 Since FY2023, the factors have been changed in accordance with the revision of the Energy Conservation Law.
Renewable Energy Consumption (Sumitomo Riko Group)
The renewable energy consumption by the entire Sumitomo Riko Group in FY2023 increased by 21% compared to the previous year, and the renewable energy ratio increased by 1.8%.
*1 Renewable energy rate = amount of electricity generated from renewable energy / Total power consumption
Examples of GHG Emission Reductions
①Introduction of solar power
Solar power generation is a primary renewable energy source that does not emit greenhouse gases, and the Sumitomo Riko Group is actively adopting it.
In FY2023, solar power generation facilities with the total capacity of 6.2MW were installed at bases in Japan, Thailand, China, Mexico, and Vietnam, bringing the total power generation capacity to 16.2 MW (1.6 times greater than last year) and the annual CO2 emission reduction to 8,000 [tons-CO2].
In FY2023, solar power generation facilities with the total capacity of 6.2MW were installed at bases in Japan, Thailand, China, Mexico, and Vietnam, bringing the total power generation capacity to 16.2 MW (1.6 times greater than last year) and the annual CO2 emission reduction to 8,000 [tons-CO2].
②Global Information Sharing Activities
The Sumitomo Riko Group is conducting “Global Information Sharing Activities” to ensure that energy-saving examples verified at "mother factories" in Japan, or factories that play a central role in domestic and overseas production bases, are implemented at its group companies without fail. In FY2023, the Carbon Neutral Promotion office and persons in charge from SumiRiko Tennessee, Inc. (SRK-TN: U.S.A.) and Tokai Rubber (Guangzhou) Corporation (TRG: China), which are the top CO2 emission bases, held regular carbon neutrality meetings. As a result, energy reduction activities with a focus on "Switch-off Activities" (switching-off of unnecessary lights, fans and other equipment) and planned power blackouts were carried out at both SRK-TN and TRG, which had been proven effective at Komaki Plant. (Sumitomo Riko FY2024 Environmental Award Winning project)
【CO2 reduction effect (SRK-TN): 412 ton-CO2/year】
【CO2 reduction effect (TRG): 1,082 ton-CO2/year】
【CO2 reduction effect (TRG): 1,082 ton-CO2/year】
③Reduction of air consumption (looping of piping/reduction of compressor pressure)
The Sumitomo Riko Group is focusing on activities to reduce air consumption. Tokai Chemical Industries, Ltd. has been repairing air leaks since 2021, and in 2023, construction of closed circuit piping, or looping of air piping, was carried out to reduce air loss. As a result, the load on compressors was greatly reduced, which made it possible to lower the pressure of compressors and minimize the number of units in operation, leading to a reduction in energy consumption.(Sumitomo Riko FY2024 Environmental Award Winning project)
【CO2 reduction effect: 258 ton-CO2/year】
④Reduction of operating loss in cooling towers (optimization of pump and cooling fan operation)
We optimized the operation of cooling towers, which supply cooling water to plant facilities. We examined the minimum operating conditions required for cooling and reviewed the pump speed and cooling fan settings. As a result, energy consumption was reduced by 60-90%. Using this case as a model, we will implement similar initiatives at other bases including global bases.
【CO2 reduction effect: 35 ton-CO2/year】
Initiatives to Reduce GHG Emissions in Logistics
Promoting Modal Shift and Transportation Efficiency
Sumitomo Riko is also working to reduce environmental impact in logistics through efficient transportation, such as “reforming transportation methods (modal shift)” and “consolidating cargo and increasing the size of vehicles for delivery with fewer trips than before (reduction of trips)”.
We will continue our efforts to reduce emissions by consolidating cargo and improving routes.
We will continue our efforts to reduce emissions by consolidating cargo and improving routes.
GHG Emissions in the Supply Chain
The Sumitomo Riko Group understands the importance of conducting activities to reduce greenhouse gas (GHG) emissions to achieve carbon neutrality by 2050.
To this end, we focus not only on GHG emissions from our own business activities such as direct emissions from fuel combustion (Scope1) and indirect emissions from the use of purchased electricity (Scope2), but also on indirect emissions from the procurement of raw materials and the use and disposal of products sold throughout the supply chain (Scope3) .
The GHG emissions of the entire supply chain of the Sumitomo Riko Group in FY2023 were 7.8% for Scope 1+2 and 92.2% for Scope 3. In particular, in Scope 3, emissions were reduced by 2.8% compared to FY2018 due to the introduction of sustainable materials and the expansion of product lines for electric vehicles.
To this end, we focus not only on GHG emissions from our own business activities such as direct emissions from fuel combustion (Scope1) and indirect emissions from the use of purchased electricity (Scope2), but also on indirect emissions from the procurement of raw materials and the use and disposal of products sold throughout the supply chain (Scope3) .
The GHG emissions of the entire supply chain of the Sumitomo Riko Group in FY2023 were 7.8% for Scope 1+2 and 92.2% for Scope 3. In particular, in Scope 3, emissions were reduced by 2.8% compared to FY2018 due to the introduction of sustainable materials and the expansion of product lines for electric vehicles.
•Scope1: 74,000t-CO2eq
•Scope2: 217,000t-CO2eq
•Scope3: 3,444,000t-CO2eq
Category 1 = Purchased goods and services
Category 11 = Processing of sold products
Other = Categories 2-10, 12-15
•Scope2: 217,000t-CO2eq
•Scope3: 3,444,000t-CO2eq
Category 1 = Purchased goods and services
Category 11 = Processing of sold products
Other = Categories 2-10, 12-15
Future Issues and Responses
The United Nations' latest report on global warming (the IPCC AR6 Synthesis Report), released in March 2023, strongly urges countries around the world to reduce GHG emissions more drastically and more promptly than the current situation. The Sumitomo Riko Group also believes that it is necessary to steadily advance its current GHG reduction plan, achieve reduction targets ahead of schedule, and set new targets. In order to achieve carbon neutrality, we will work not only on our own, but also with the Sumitomo Electric Group, local neighborhood companies, and companies in other industries to avoid a crisis for the entire planet.