Mitigation and Adaption to Climate Change

In formulating its medium-term management plan starting in 2021, Kumiai Chemical recognized that the reduction of cultivated land due to climate change would have a significant impact on the Company's risks and opportunities, and selected "SDGs, contribution to a recycling-oriented society, and ESG-oriented corporate activities" as its business strategy, and established the "Kumiai Group Sustainability Basic Policy" and "Basic Environmental Policy" regarding sustainability including climate change.
"Basic Policy on Sustainability" clarifies that we will promote the provision of environmentally friendly products and services and contribute to the realization of a low-carbon society and a recycling economy.

Basic Policy on Sustainability, Promotion Structure, and Other Policies

Kumiai Group Basic Policy on the Environment

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.

Climate-related issues are discussed and reported at the Executive Committee held twice a month. The most important issues are reported to the Board of Directors meeting held about once a month and are supervised by the Board of Directors. The Company decided on a policy to establish innovative technologies that will contribute to "both improvement of productivity and sustainability of the food, agriculture, forestry, and fisheries industries." These also respond to environmental protection and energy issues, which were included in the "Strategy for Sustainable Food Systems, MeaDRI" formulated by the Ministry of Agriculture, Forestry and Fisheries.

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.

Kumiai Group set FY2019 as the reference year, and set reducing Scope 1 and 2 GHG emissions by 30% compared to FY2019 by FY2030 as our target. (Seven key Kumiai Group companies are within the scope.)
As a specific initiative, in FY2023, we introduced CO₂-free electricity at factories and research institutes step by step. By promoting fuel conversion from heavy oil to fuels with lower GHG emissions, we are continuing to reduce GHG emissions from our business activities.
Regarding the progress to date toward achieving the reduction targets, we believe that Kumiai Group is making good progress in reducing GHG emissions, because net sales for FY2023 increased by approximately 5% compared to FY2019, but our GHG emissions decreased by approximately 13% compared to FY2019. Through continuous efforts to reduce environmental impacts, we will strive to achieve the targets and disclose related information.

Following the Law Concerning the Rational Use of Energy (Energy Conservation Law) and the Law Concerning the Promotion of Measures to Cope with Global Warming (Global Warming Prevention Law), Kumiai Chemical and its group companies report 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.
Furthermore, 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.

We are a member of the Japan Chemical Industry Association (JCIA) and participate in the Responsible Care Committee.
The JCIA has stated in its "Ideal Chemical Industry" that it will promote efforts to reduce GHG emissions following the Paris Agreement. Furthermore, as a global solution provider, the chemical industry aims to develop new technologies to reduce GHG emissions and to propose and disseminate them internationally.
We have supported the JCIA's policy on GHG emissions reduction, and we are not only working to reduce GHG emissions in the manufacturing process of our products, but also developing new technologies to reduce GHG emissions in agriculture, which is closely related to our business field, and working to put these technologies to practical use.