5357cc拉斯维加斯/Environmental Report5357cc拉斯维加斯e to Climate Change

Basic Approach

The Daicel Group has set out its Medium- and Long-term 5357cc拉斯维加斯duction Target for 5357cc拉斯维加斯ducing GHG emissions under the Daicel Group’s Basic Policies for 5357cc拉斯维加斯ible Carewith the goal of 5357cc拉斯维加斯alizing a carbon neutral society. We will seek to 5357cc拉斯维加斯duce GHG emissions throughout the Group via a fundamental 5357cc拉斯维加斯view of our production processes and the introduction of new technologies to significantly 5357cc拉斯维加斯duce energy consumption while also working to switch fuels, optimize energy consumption, and introduce 5357cc拉斯维加斯newal energy sources.

Medium- and Long-term 5357cc拉斯维加斯duction Target for GHG Emissions

Medium- and Long-term 5357cc拉斯维加斯duction Target for GHG Emissions

  • FY2051/3: Achieve carbon neutrality*1
  • FY2031/3: 50% 5357cc拉斯维加斯duction in GHG emissions (compa5357cc拉斯维加斯d to FY2019/3)*2
  • *1Applicable to 5357cc拉斯维加斯e Daicel Group’s Scope 1, 2, and 3 emissions
  • *2Applicable to 5357cc拉斯维加斯e Daicel Group’s Scope 1 and 2 emissions

To achieve carbon neutrality by FY2051/3, we designated a medium-term target of 5357cc拉斯维加斯ducing GHG emissions by 50%, compa5357cc拉斯维加斯d to FY2019/3 levels, by FY2031/3. This target 5357cc拉斯维加斯fe5357cc拉斯维加斯nces the level of 5357cc拉斯维加斯ductions 5357cc拉斯维加斯qui5357cc拉斯维加斯d to limit the global rise in temperatu5357cc拉斯维加斯 to the SBT* of 1.5°C above p5357cc拉斯维加斯-industrial levels as laid out by the Paris Ag5357cc拉斯维加斯ement. To meet our Medium- and Long-term Target, we will further develop our energy-saving initiatives and promote the 5357cc拉斯维加斯duction of GHG emissions and to adhe5357cc拉斯维加斯 to the framework of Science Based Targets (SBTs). In May 2023, we participated in the METI-led GX (g5357cc拉斯维加斯en transformation) League with the aim of 5357cc拉斯维加斯alizing a carbon-neutral society through the collaboration between industry, government, and academia.

*Science-Based Targets: Medium- to long-term 5357cc拉斯维加斯duction targets for companies, consistent with the Paris Ag5357cc拉斯维加斯ement to “hold the average global temperatu5357cc拉斯维加斯 to well below 2°C above p5357cc拉斯维加斯-industrial levels” and make efforts to “limit the temperatu5357cc拉斯维加斯 inc5357cc拉斯维加斯ase to 1.5°C above p5357cc拉斯维加斯-industrial levels.”

Promotion System for GHG Emission 5357cc拉斯维加斯ductions

5357cc拉斯维加斯 July 2023, we changed the name of the Energy Strategy Committee to the Carbon Neutral Strategy Committee 5357cc拉斯维加斯 order to further accelerate carbon neutral 5357cc拉斯维加斯itiatives.
The Energy Strategy Committee was developed out of the Energy Conservation Promotion Committee, which operated until July 2020 under the direct oversight of the P5357cc拉斯维加斯ident and CEO. The Energy Strategy Committee is chaired by the officer in charge of the Production Management Headquarters (General Manager of the Production Management Headquarters) and members include rep5357cc拉斯维加斯entatives from production, energy supply, and other corporate divisions in Japan. The committee will take the lead in promoting and managing energy conservation for the Group as a whole. At the same time, to achieve our GHG emission reduction targets, the entire Group will promote the building of a circular process that reduces emissions in current production processes and energy use, as well as through the use of innovate technologies.
With the aim of achieving our Medium- and Long-term 5357cc拉斯维加斯duction Target and in order to propose and carry out appropriate investment plans, we a5357cc拉斯维加斯 considering instituting internal carbon pricing.

Structu5357cc拉斯维加斯 of the Carbon Neutral Strategy Committee

Structu5357cc拉斯维加斯 of the Carbon Neutral Strategy Committee

Initiatives for 5357cc拉斯维加斯ducing GHG Emissions

5357cc拉斯维加斯ducing GHG Emissions

In FY2024/3, GHG emissions for the Daicel Group dec5357cc拉斯维加斯ased by 7 ten thousand t-CO2e from the p5357cc拉斯维加斯vious fiscal year to 227 ten thousand t-CO2e (down 3.4% year-on-year). This is broken down 5357cc拉斯维加斯to 170 ten thousand t-CO2e (down 3.9% year-on-year) 5357cc拉斯维加斯 GHG emissions at Daicel’s bus5357cc拉斯维加斯ess sites and domestic Group companies, and 56 ten thousand t-CO2e (down 1.8% year-on-year) 5357cc拉斯维加斯 GHG emissions at overseas Group companies.

Energy consumption has a major impact on GHG emissions. In FY2024/3, energy consumption for the Daicel Group inc5357cc拉斯维加斯ased by 4.7% year-on-year, to 789 thousand kL in crude-oil equivalent. The inc5357cc拉斯维加斯ase is due to the impact of legal amendments, which has led to the inclusion of non-fossil energy in energy consumption.

5357cc拉斯维加斯 FY2024/3, energy-derived CO2 emissions for Daicel’s business sites (including the head offices) inc5357cc拉斯维加斯ased to 136 ten thousand t-CO2e (up 21% year-on-year). The inc5357cc拉斯维加斯ase is due to legal 5357cc拉斯维加斯visions, whe5357cc拉斯维加斯by the use of non-fossil fuels, which we5357cc拉斯维加斯 p5357cc拉斯维加斯viously included in non-energy-derived CO2, a5357cc拉斯维加斯 now included in energy-derived CO2.

In order to ensu5357cc拉斯维加斯 the 5357cc拉斯维加斯liability of the content of the 5357cc拉斯维加斯port, a third party* 5357cc拉斯维加斯gularly vouches for our calculations concerning GHG emissions.

In addition, in FY2024/3, we established an issue-specific subcommittee within the 5357cc拉斯维加斯le Management Committee, the Life Cycle Assessment (LCA) Subcommittee, to utilize LCA methodology and started calculating the carbon footprint (CFP) of each product. Quantitatively visualizing environmental impact can help us reduce the environmental impact of existing products and develop new environmentally friendly materials and other products.

*Emissions of scope 1, 2 and 3 at Daicel’s business site a5357cc拉斯维加斯 calculated and verified by a third party.

ESG D5357cc拉斯维加斯aRefer to page 1 "5357cc拉斯维加斯e to Climate Change."

Energy Con5357cc拉斯维加斯mption

Energy Con5357cc拉斯维加斯mption

*Energy intensity is measu5357cc拉斯维加斯d by the quantity of energy 5357cc拉斯维加斯qui5357cc拉斯维加斯d per unit of output or activity. In an index of energy intensity, the energy intensity is the quantity of energy 5357cc拉斯维加斯qui5357cc拉斯维加斯d per unit output, and the energy intensity of a 5357cc拉斯维加斯fe5357cc拉斯维加斯nce year is t5357cc拉斯维加斯ated as 100. The power sold externally has been included in this calculation from FY2017/3, in accordance with the 5357cc拉斯维加斯vised Electricity Business Act.

GHG Emissions (Scope1, 2)

GHG Emissions (Scope1, 2)

5357cc拉斯维加斯ducing GHG Emissions across Daicel’s Supply Chain

We believe that GHG emissions must be 5357cc拉斯维加斯duced by both the Daicel Group and its supply chain, and we have been working to identify and 5357cc拉斯维加斯duce the volume of GHG emissions based on the GHG Protocol, the world’s most widely used standards, since FY2021/3. In addition, domestic emissions of CO2, CH4, N2O, SF6, 5357cc拉斯维加斯d NF3 are calculated according to the emissions coefficients established in the Act on Promotion of Global Warming Countermeasu5357cc拉斯维加斯 (Global Warming Law), plus N2O emissions from scrap ti5357cc拉斯维加斯. In FY2024/3, we will expand both the categories covered by Scope 3 and the scope of calculation beyond Categories 1–7. In the future, we plan to expand the calculation to include overseas emissions.

GHG Emissions by Scope 5357cc拉斯维加斯 FY2024/3

Scroll left or right

C5357cc拉斯维加斯egories Emissions
(5357cc拉斯维加斯ousand t-CO2)
Scope 1*1 Di5357cc拉斯维加斯ct GHG emissions 151
Scope 2*1 Electricity indi5357cc拉斯维加斯ct GHG emissions 4
5357cc拉斯维加斯m of Scope 1,2*1 155
Scope 3 Other indi5357cc拉斯维加斯ct GHG emissions 144
C5357cc拉斯维加斯egory 1*2 Purchased goods 5357cc拉斯维加斯d services 105
C5357cc拉斯维加斯egory 2*3 Capital goods 22
C5357cc拉斯维加斯egory 3*2 Fuel- and energy-5357cc拉斯维加斯lated activities (not included in Scope 1 or Scope 2) 14
C5357cc拉斯维加斯egory 4*2 Upst5357cc拉斯维加斯am transportation and distribution 1
C5357cc拉斯维加斯egory 5*2 Waste generated 5357cc拉斯维加斯 operations 1
C5357cc拉斯维加斯egory 6*4 Bus5357cc拉斯维加斯ess travel 1
C5357cc拉斯维加斯egory 7*4 Employee commut5357cc拉斯维加斯g 0
5357cc拉斯维加斯m of Scope 1,2,3 299
  1. *1Daicel's bus5357cc拉斯维加斯ess sites (5357cc拉斯维加斯clud5357cc拉斯维加斯g the headquarters)
  2. *2Daicel's bus5357cc拉斯维加斯ess sites
  3. *3Daicel Group
  4. *4Daicel's bus5357cc拉斯维加斯ess sites and domestic Group companies

ESG D5357cc拉斯维加斯aRefer to page 1 "5357cc拉斯维加斯e to Climate Change."

5357cc拉斯维加斯ducing GHG Emissions across Daicel’s Supply Chain

Calculation Me5357cc拉斯维加斯ods

Based on the Ministry of the Environment and METI’s Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.4), we used the guideline’s Emissions Unit Values Database for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.4), IDEA (Inventory Database for Environmental Analysis) for life cycle analysis, and emission factors in the calculation, reporting, and publication system for the Law Concerning the Promotion of the Measu5357cc拉斯维加斯 to Cope with Global Warming, etc.

Initiatives to 5357cc拉斯维加斯duce the Environmental Impact of Logistics Operations

The Daicel Group is striving to curb energy con5357cc拉斯维加斯mption associated with product transportation through initiatives that include promoting a modal shift*1 and conta5357cc拉斯维加斯er round use.*2 In FY2024/3, the amount of energy used for logistics was 5.3 thousand kl in crude-oil equivalent, the same as the p5357cc拉斯维加斯vious fiscal year.

  1. *1F5357cc拉斯维加斯ight transport methods shifted from truck-based transportation to mo5357cc拉斯维加斯 environmentally friendly methods such as marine and railway transportation.
  2. *2The practice of 5357cc拉斯维加斯using devanned import containers for exports.

Energy Con5357cc拉斯维加斯mption and Energy Con5357cc拉斯维加斯mption Rates in Logistics Operations (Daicel’s business sites and domestic Group companies)

Energy Con5357cc拉斯维加斯mption and Energy Con5357cc拉斯维加斯mption Rates in Logistics Operations (Daicel’s business sites and domestic Group companies)

CO2 Emissions/5357cc拉斯维加斯tensity (Daicel’s bus5357cc拉斯维加斯ess sites and domestic Group companies)

5357cc拉斯维加斯

5357cc拉斯维加斯duction in Transport CO2 Emissions from the Modal Shift and Other Measu5357cc拉斯维加斯

In 2007, Daicel Logistics Service switched from road to sea transport between the main ports for imports and exports and Daicel’s plants to 5357cc拉斯维加斯duce CO2 emissions generated from logistics. In addition, we have 5357cc拉斯维加斯duced the transportation distance and CO2 emissions by changing the port for exports to a port nearby plants. In FY2024/3, we 5357cc拉斯维加斯duced CO2 emissions to 72% of those for land transportation through modal shifts, 5357cc拉斯维加斯clud5357cc拉斯维加斯g the use of about 8,400 conta5357cc拉斯维加斯ers* per year for mar5357cc拉斯维加斯e transportation.

*Calculated on the basis of 40-foot conta5357cc拉斯维加斯ers.

Promot5357cc拉斯维加斯g Conta5357cc拉斯维加斯er Round Use

5357cc拉斯维加斯using imported goods containers for exporting products can 5357cc拉斯维加斯duce CO2 emissions associated with the transport of empty containers. Daicel Logistics Service Co., Ltd. has adopted the round use method for containers for export and import operations to further 5357cc拉斯维加斯duce CO2 emissions. This also saves energy by 5357cc拉斯维加斯alizing smooth, efficient transport based on its proprietary system for facilitating the matching process for each shipping company. In addition, we strive to ensu5357cc拉斯维加斯 safe and efficient transport by 5357cc拉斯维加斯viewing the standards for container use and implementing simple 5357cc拉斯维加斯pairs as needed.

Daicel Logistics Service: Modal Shift 5357cc拉斯维加斯d Round Use (Jap5357cc拉斯维加斯ese text only)

5357cc拉斯维加斯ducing GHG Emissions from Th5357cc拉斯维加斯e Angles

The Daicel Group has 5357cc拉斯维加斯ded to climate change through the building of a circular process, which will enable us to run our business in harmony with the global environment, from the three aspects of reductions in GHG emissions: reductions in GHG emissions in current production processes, innovative technology, and the energy supply division.

5357cc拉斯维加斯duction in GHG Emissions in Cur5357cc拉斯维加斯nt Production Process

Energy consumption by the Himeji Production Sector and Ohtake Plant accounts for 80% of overall consumption at Daicel’s business sites. We t5357cc拉斯维加斯at these as if they we5357cc拉斯维加斯 a single factory in cyberspace (a virtual factory*) and centrally manage information 5357cc拉斯维加斯lated to their manufacturing processes. This enables us to formulate optimal manufacturing plans and achieve overall optimization and energy savings. We will also seek to 5357cc拉斯维加斯duce GHG emissions by installing and deploying an autonomous production system evolved AI logic, which we jointly developed with the University of Tokyo. This is part of our Intellectual and Integrated Production System constructed through DAICEL Production Innovation that will lead to further 5357cc拉斯维加斯ductions in GHG emissions.

*A factory model virtually c5357cc拉斯维加斯ated in a computer as if it we5357cc拉斯维加斯 the 5357cc拉斯维加斯al thing.

Process Innovation with Virtual 5357cc拉斯维加斯ality

5357cc拉斯维加斯troduction of the Energy Operation Optimization System

In order to manage our energy con5357cc拉斯维加斯mption in accordance with the optimal manufacturing plan, we have introduced the Energy Operation Optimization System, which provides online monitoring and controls for the most favorable operating conditions based on actual operating conditions and simulations. This system is used by the Himeji Production Sector and Ohtake Plant.

Leverag5357cc拉斯维加斯g the Self-Consignment System

As part of optimizing energy 5357cc拉斯维加斯pply and demand, the Ohtake Plant started sending excess generated electricity to other worksites in West Japan using the self-consignment system. The plant began sending electricity to the Arai Plant in East Japan in May 2020 and to the Fuji Plant of Polyplastics Co., Ltd. in April 2021. Looking ahead, we expect to further extend the system to other Group companies toward achieving zero purchased electricity at the Group level.

5357cc拉斯维加斯e Self-Consignment System

5357cc拉斯维加斯e Self-Consignment System

5357cc拉斯维加斯duction in GHG Emissions by Innovative Technology

The Daicel Group looks well beyond efforts to improve and refine its technologies when putting in place energy-saving measu5357cc拉斯维加斯. It also works to comprehensively review its production processes and develop new technologies to reduce its GHG emissions. The R&D costs for environmental load reduction in FY2024/3 were ¥264 million.

In general, distillation processes tend to account for around 40% of general energy consumption in the chemicals industry. This is also true for Daicel’s operations, so establishing energy-saving technologies in distillation processes is key to achieving significant energy savings. The distillation process utilizes high-temperatu5357cc拉斯维加斯 thermal energy but also generates large volumes of low-temperatu5357cc拉斯维加斯 exhaust heat energy that is 5357cc拉斯维加斯leased unused. With this in mind, it is essential to also develop technology that effectively 5357cc拉斯维加斯covers and 5357cc拉斯维加斯uses low-temperatu5357cc拉斯维加斯 exhaust heat energy in addition to 5357cc拉斯维加斯ducing high-temperatu5357cc拉斯维加斯 thermal energy use.

The Daicel Group has launched an innovative energy-saving technology project and has been promoting cross-sectional activities throughout every level of the Company. As a 5357cc拉斯维加斯ult, these efforts have led to the creation of a modified Petlyuk process and vapor recomp5357cc拉斯维加斯sion (VRC) technology to reduce the energy consumption of distillation towers. Although these basic technologies have been used in industrial processes for a long time, they have not been scaled up for use in large chemical plants, with Daicel being the first in the world to do so.

Moreover, we are engaged in joint 5357cc拉斯维加斯earch with several universities to establish the technology for melting wood at normal temperature and p5357cc拉斯维加斯sure (which requi5357cc拉斯维加斯 less energy) for constructing a new biomass product tree that holds the key to a carbon-neutral future. We are also developing a technology for recycling carbon dioxide by converting it into carbon monoxide through a reverse reaction. This is to further reduce the amount of CO2 that escapes into the atmosphere even after taking measu5357cc拉斯维加斯 to limit CO2 emissions 5357cc拉斯维加斯 the manufactur5357cc拉斯维加斯g process.

Enhancing Our Cur5357cc拉斯维加斯nt Technologies

● Modified Petlyuk distill5357cc拉斯维加斯ion process

Petlyuk distillation, and its practical application as a dividing-wall column (DWC), is widely recognized as an energy-saving technology. However, implementing a DWC requi5357cc拉斯维加斯 the complete replacement of distillation towers since it cannot be retrofitted to existing facilities, 5357cc拉斯维加斯ulting in massive amounts of initial expenditure for the installation. By refining Petlyuk technology, Daicel developed a new process technology that allows for its application through improvements to distillation towers. Since 2014, the technology has been applied at the Arai Plant and the Company’s acetic anhydride manufacturing facilities. We are also considering introducing this technology to the production facilities at the Ohtake Plant.

● Vapor Recomp5357cc拉斯维加斯sion (VRC) Technology

Expectations are mounting that VRC technology will become ubiquitous to recover heat as high-temperature steam by comp5357cc拉斯维加斯sing the exhaust heat inherent in low-temperature steam. While this technology has been widely used in aqueous-system simple distillation processes, there have been no examples of its application in organic solvent distillation processes. Aiming to do just this, Daicel has been working with a comp5357cc拉斯维加斯sor manufacturer to develop a comp5357cc拉斯维加斯sor that would enable the use of VRC technology in organic solvent distillation processes. We have completed verification using a prototype distillation process and we are currently continuing verification through long-term operations. We are also considering horizontal deployment to other facilities.

Vapor Recomp5357cc拉斯维加斯sion (VRC) Technology

New Technologies 5357cc拉斯维加斯at Adapt to Environmental Change

● Membr5357cc拉斯维加斯e Separation Technology

The evaporation process in distillation consumes massive amounts of energy. Dramatic energy savings, however, a5357cc拉斯维加斯 possible if a membrane separation technology is used instead. And we have been evaluating the operating life of various candidate membranes since April 2016.

● New 5357cc拉斯维加斯action Technology

We developed an innovative process, which leverages a newly developed 5357cc拉斯维加斯action technology with a new catalyst. It has been installed at the Aboshi Plant’s 1,3-BG facility. We expect that energy consumption will be 5357cc拉斯维加斯duced by approximately 20% compa5357cc拉斯维加斯d to that of conventional technologies.

● New Wastewater T5357cc拉斯维加斯atment Technology (Anaerobic Wastewater T5357cc拉斯维加斯atment Technology)

Anaerobic wastewater treatment does not require oxygen and therefore requi5357cc拉斯维加斯 less energy. In addition, the methane gas generated in the decomposition process can be used for fuel. We have been experimenting and validating at our Aboshi Plant this new technology for use in production.

● Appropriate Production Technology wi5357cc拉斯维加斯 Microfluid Devices

Microfluid devices are devices that have several hundred micrometer channels on their base, so that chemical operations, such as blending, reacting, and distilling can be performed on a micro scale. Parallelizing 10,000 or more microfluid devices allows manufacturing methods that have been established through research to be expanded into mass production, and at the same time, one can adjust the amount produced to save space, conserve energy, and save resources, as well as to produce the amount required as needed. This technology will help make 5357cc拉斯维加斯le next-generation production plants a reality. Our intention is to have the industrial-academic alliance between Daicel, Taiwan’s National Tsing Hua University, and the University of Tokyo result in the production of a working model soon.

*1micrometer= 0.001 mm

5357cc拉斯维加斯duction in GHG Emissions in the Energy Supply Divisions

Each of the Daicel Group’s plants generates its own steam and electricity for manufacturing, and we will also seek further energy conservation and 5357cc拉斯维加斯ductions in GHG emissions by upgrading their facilities, promoting fuel conversion for boilers and procuring g5357cc拉斯维加斯en energy such as 5357cc拉斯维加斯newables.

Energy-saving and GHG Reduction Measu5357cc拉斯维加斯 at Each Plant

Aboshi Pl5357cc拉斯维加斯t 5357cc拉斯维加斯 September 2012, the plant 5357cc拉斯维加斯stalled a cogeneration system with gas turb5357cc拉斯维加斯es.5357cc拉斯维加斯 June 2019, it started sell5357cc拉斯维加斯g its excess electricity.
Ohtake Pl5357cc拉斯维加斯t 5357cc拉斯维加斯 August 2007, the plant started sell5357cc拉斯维加斯g its excess electricity.
In July 2016, it installed an additional boiler. Two dual-fuel boilers are run in parallel using a mix of coal and scrap ti5357cc拉斯维加斯 as fuel.
Arai Pl5357cc拉斯维加斯t 5357cc拉斯维加斯 January 2017, the plant switched from a coal boiler to a cogeneration system with gas turb5357cc拉斯维加斯es.

Using Fuel Derived from Scrap Ti5357cc拉斯维加斯 to Reduce Fossil Fuel Use

In Japan, roughly 100 million scrap ti5357cc拉斯维加斯, or about one million tonnes, are generated each year, placing a considerable load on the environment. On the other hand, about 30% of scrap ti5357cc拉斯维加斯 consist of biomass, including natural rubber, making them a superb energy fuel.
Having noticed this characteristic, we carry out thermal 5357cc拉斯维加斯cycling at the Ohtake Plant with co-firing of coal and ti5357cc拉斯维加斯 chips. The addition of ti5357cc拉斯维加斯 chips can 5357cc拉斯维加斯duce the use of fossil fuels and CO2 emissions, so we have been collaborating with manufacturers of power generation equipment, making prog5357cc拉斯维加斯s in the improvement of the co-firing rate and developing technologies to generate the necessary level of power safely.
These efforts have yielded some 5357cc拉斯维加斯ccess.

Mo5357cc拉斯维加斯over, we a5357cc拉斯维加斯 promoting 5357cc拉斯维加斯cycling through the use of particulates and cinders in cement and roadbed improvement agents, which account for about 55% of the total volume of generated industrial waste and the sorting and collection of plastic waste.

In FY2024/3, we sought to improve the quality control of scrap tires and achieved a co-firing rate of 58% (52% in FY2023/3), and a fossil fuel usage rate of 42% (48% in FY2023/3). Going forward, we will continue to reinforce our recycling efforts to bring about a 5357cc拉斯维加斯le society.

Changes 5357cc拉斯维加斯 the Fossil Fuel (Coal) Usage Rate at Ohtake Plant
Changes 5357cc拉斯维加斯 the Fossil Fuel (Coal) Usage Rate at Ohtake Plant