Mitigation of Climate Change and Environmental Impact

Policy and Philosophy

Having set mitigation of climate change and environmental impact, contribution to biodiversity, and contribution to a recycling-based society as materialities, our group aims to help protect the global environment and realize a low-carbon society by fully utilizing its technologies, knowledge, and R&D capabilities. In addition, we are working to develop and promote products that contribute to both stable food production and sustainable agricultural industry by responding to the Strategy for Sustainable Food Systems, MIDORI formulated by the MAFF.

System

The Sustainability Promotion Committee chaired by the Representative Director, President, formulates strategies on ESG issues, such as “mitigation of climate change and environmental impact” and “human capital development / human capital strategy based on the idea of human capital,” manages the progress of the action plan for each issue, and also formulates information disclosure strategies. Important matters discussed by the Sustainability Promotion Committee are reported to the Board of Directors for decision-making and oversight.

Sustainability Promotion System

Governance

The Sustainability Promotion Committee chaired by the Representative Director, President, formulates strategies on sustainability issues, such as “mitigation of climate change and environmental impact” and “human capital development / human capital strategy based on the idea of human capital,” manages the progress of the action plan for each issue, and also formulates information disclosure strategies. The Responsible Care Promotion Committee also makes decisions on policies related to industrial health and safety and chemical substance management, and discusses measures to address these issues. Important matters discussed by the Sustainability Promotion Committee and other bodies are reported to the Board of Directors for decision-making and oversight. The Nomination and Remuneration Committee reviews our efforts in reducing GHG emissions and their results, as well as our initiatives and achievements in the areas of anti-corruption, human rights, and decent work, and incorporates these factors into the determination of remuneration for Directors.

Risk Management

For risk management, we identify risks and opportunities recognized by Kumiai’s divisions, and also identify issues by referring to the recommendations of external organizations such as TCFD, as well as climate-related risks and opportunities recognized by other companies in the same industry. The degree of importance of each issue identified is determined by conducting impact assessments, taking into account the financial impact. Risk issues identified are discussed once a year by the Risk Management & Compliance Committee, a company-wide committee, and measures to address the issues are determined.

Indicators and Targets

Our group set FY2019 as the reference year, and set reducing Scope 1 and 2 GHG emissions of our seven key group companies by 30% compared to FY2019 by FY2030 as our target. Specifically, we introduced CO₂-free electricity generated from renewable energy sources at our main factories and institutes, including the Shizuoka Factory. We also promoted fuel conversion from heavy oil to fuels with lower GHG emissions, thereby continuing to reduce GHG emissions from our business activities and working to achieve our targets. By FY2048, when we celebrates its 100th anniversary, we aim to achieve carbon neutrality by reducing the Scope 1 and 2 GHG emissions of our seven key group companies to virtually zero. In the future, we will also consider the use of low-carbon fuels (such as hydrogen and ammonia), innovative carbon-negative technologies, and carbon credits, as our carbon neutrality goals are difficult to achieve with existing technologies alone.
Regarding the progress to date toward achieving the reduction targets, we believe that our group is making good progress in reducing GHG emissions, because net sales for FY2024 increased by approximately 56% compared to FY2019, but our GHG emissions decreased by approximately 22% compared to FY2019. Through continuous efforts to reduce environmental impacts, we will strive to achieve the targets and disclose related information.

Our group’s GHG emissions reduction targets and progress

KPI FY2030 target FY2024 results Achievement rate for FY2024 (Reference) Base year FY2019 results
GHG emissions for Kumiai Chemical Group
(scope 1 and scope 2)
30% reduction compared to
FY2019 :46,906t-CO₂
52,071t-CO₂ 74.3% 67,009t-CO₂

GHG Emissions and Environmental Data

GHG emissions (t-CO₂/year)
FY2021 FY2022 FY2023 FY2024
Scope 1 Direct Emissions 47,702 47,982 44,182 44,973
Scope 2 Indirect Emissions according to market-based method/Generated by use of electricity, heat, and steam provided by other companies 17,459 18,142 13,997 7,098
Scope 1+2 Total emissions 65,162 66,124 58,178 52,071
Emissions per net sales unit (t-CO₂/Millions of yen) 0.605 0.503 0.397 0.358
Scope 3
Category
1. Purchased goods and services 189,859 195,898 208,663
2. Capital goods 27,470 24,880 28,322
3. Fuel and energy related activities 12,171 11,461 11,197
4. Upstream transportation and distribution 11,715 8,867 9,491
5. Waste generated in operations 7,676 10,902 10,782
6. Business travel 221 220 220
7. Employee commuting 1,003 1,007 989
8. Upstream leased asset 0 0 0
9. Downstream transportation and distribution 769 590 492
10. Processing of sold products 0 0 0
11. Use of sold products 0 0 0
12. End-of-life treatment of sold products 3,729 3,636 2,670
13. Downstream leased assets 66 66 44
14. Franchises 0 0 0
15. Investments 0 0 0
Total emissions 254,680 257,526 272,869
Unit FY2021 FY2022 FY2023 FY2024
Energy consumption (crude oil equivalent) kL 33,559 33,199 31,554 27,895
Amount of purchased electricity MWh 57,016 55,992 55,729 56,022
 Of which amount of renewable energy MWh 12,635 12,420 25,184 40,827
Water withdrawal amounts Thousand m3 4,187 3,835 3,585
Amount of industrial waste Thousand tons 8.653 11.124 12.021
  • Targets include seven group companies, which are, KUMIAI CHEMICAL INDUSTRY, RIKENGREEN, IHARANIKKEI CHEMICAL INDUSTRY, K-I CHEMICAL INDUSTRY, Ihara Construction Industry, ONOMICHI KUMIKA INDUSTRY, and KUMIKA LOGISTICS. The ratio of the seven companies' net sales to consolidated net sales (coverage rate) is 90.7% (FY2024).
  • Kumiai Chemical Group has received the third-party verification regarding the data concerning our Greenhouse Gas emissions since FY2024 from Japan Quality Assurance Organization (JQA).

Initiatives

Appropriate information disclosure

Following the Act on the Rational Use of Energy and the Act on the Promotion of Global Warming Countermeasures, our group reports energy consumption and unit energy consumption by business category to the competent authorities. In addition, we have supported the TCFD and have been promoting information disclosure since 2022.

Introduction of renewable energy

To achieve our GHG emissions reduction target (30% reduction from FY 2019 levels by 2030), we are considering installing solar panels, introducing CO₂-free electricity, and switching fuels at our plants.

Obtained Eco-Rail Mark certification

We have been certified by the Eco-Rail Mark Operation and Examination Committee established by the Ministry of Land, Infrastructure, Transport, Tourism as a company committed to environmentally friendly rail transportation. We have set “reduce climate change and environmental impact” as one of our materialities, and are promoting reduction of GHG emissions and energy conservation. As part of this effort, we are working on a modal shift from truck to rail freight transportation to reduce CO₂ emissions from transportation.

エコレールマーク ロゴ
認定授与式