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.
Basic Policy on Sustainability, Promotion Structure, and Other Policies
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.

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 | ー | 189,859 | 195,898 | 208,663 | |||
2. Capital goods | ー | 27,470 | 24,880 | 28,322 | ||||
3. Fuel and energy related activities | ー | 12,171 | 11,461 | 11,197 | ||||
4. Upstream transportation and distribution | ー | 11,715 | 8,867 | 9,491 | ||||
5. Waste generated in operations | ー | 7,676 | 10,902 | 10,782 | ||||
6. Business travel | ー | 221 | 220 | 220 | ||||
7. Employee commuting | ー | 1,003 | 1,007 | 989 | ||||
8. Upstream leased asset | ー | 0 | 0 | 0 | ||||
9. Downstream transportation and distribution | ー | 769 | 590 | 492 | ||||
10. Processing of sold products | ー | 0 | 0 | 0 | ||||
11. Use of sold products | ー | 0 | 0 | 0 | ||||
12. End-of-life treatment of sold products | ー | 3,729 | 3,636 | 2,670 | ||||
13. Downstream leased assets | ー | 66 | 66 | 44 | ||||
14. Franchises | ー | 0 | 0 | 0 | ||||
15. Investments | ー | 0 | 0 | 0 | ||||
Total emissions | ー | 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.

