Environmental Report

Approaches to the Environment

Global Warming Prevention

The reduction volume of GHG of Kuraray Group in Japan was 18,000tons-CO2e. It’s the result of their CO2 reduction efforts, such as increasing biomass fuel volume, using of waste plastics as a fuel, higher operating efficiency, installing of energy saving equipment, and steady energy saving activities. As the result, the environmental efficiency of Kuraray Group in Japan is steadily progressing (109, environmental efficiency in 2010 was 100), however that didn’t reach the initial target (112).
On the other hand, energy consumption of abroad Kuraray Group increased compared to 2014 due to the business expansion with M&A and increasing production volume, even though abroad Kuraray Group also addresses energy saving activities. As the result, environmental efficiency of abroad Kuraray Group has extremely decreased since 2014, and it was as same as the efficiency of benchmark, 2010. Because more intermediate manufacturing processes are in operation after business acquisitions, causing an increase in energy consumption that doesn’t contribute directly to an increase in sale.
Actual GHG emissions and energy consumption in 2015 are as follows.

Domestic Kuraray Group Total: 1,265,000t-CO2
[FY2014: 1,239,000t-CO2]
Overseas Affiliated Companies 443,000kL (crude oil equivalent)
[CY2014 352,000kL (crude oil equivalent)]

Power Generation by Biomass Fuel

At Kurashiki Plant of Kuraray in Tamashima, Kurashiki City, a biomass fuel* (wood chippings from construction debris and other sources) has been used as a substitute fuel of coal and the consumption of biomass fuel is steadily increasing. In 2015, efforts were made to increase the supply sources of biomass fuel and about 55,000 tons of biomass fuel, roughly the same level as that in Fiscal 2014, was consumed, contributing to a reduction of about 82,000 tons-CO2 in its emissions.

  • * Biomass absorbs CO2 in the atmosphere as it grows and can be considered to emit no CO2 when the CO2 that is generated while biomass is burnt is subtracted from CO2 that is absorbed during its growth.

Trends in GHG Emissions at Kuraray Group

Trends in Energy Consumption at Overseas Affiliated Compamies

Reducing Environmental Load during Product Transportation

Kuraray is also reducing its environmental load in the distribution stage of delivering its products to the users, in addition to GHGs emitted by itself during the manufacture of products at its plants and other facilities. Kuraray is continuously active in the “modal shift” of changing transportation means from trucks to cargo trains, ships and other means. Since Fiscal 2010, its emissions of GHGs and nitrogen oxides during product transportation have gradually been decreasing. In Fiscal 2015, Kuraray emitted almost the same levels of GHGs and nitrogen oxides as those of Fiscal 2014.

Emissions of Scope 3 GHG

The GHG Protocol* classifies GHG emissions into three categories, Scopes 1, 2 and 3.
Mandated under the law by which businesses voluntarily calculate and report Scope 1 and Scope 2 to the government, we have been reporting these to the government and publishing the results in our CSR Report and elsewhere.
In the case of Scope 3 GHG emissions that take into account the entire supply chain, there is movement for Japanese applicant manufacturers to calculate and announce Scope 3 emissions. Due to the increasing number of survey questionnaires requesting company Scope 3 emissions that are being received from environmental NGOs and other organizations, Kuraray decided to start calculations from those giving Fiscal 2013 performance.
Calculations were made in Fiscal 2015 for 7 categories in Scope 3, among 15 categories in total, excluding 4 categories that are not applicable to Kuraray and 4 categories for which data could not be collected.

* GHG Protocol (Greenhouse Gas Protocol) is an initiative scheme to develop international standards and related tools on greenhouse gases and climate change led by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) and participated by corporations, NGOs, government institutions and other organizations throughout the world.

  • Scope1; Direct emissions. GHG emissions generated by fuel combustion, such as at places of business
  • Scope2; Indirect emissions. GHG emissions associated with purchased energy, such as purchased electricity
  • Scope3; Other indirect emissions. GHG emissions along the entire supply chain (from raw materials to product disposal)

Image of Control on Emissions of Greenhouse Gases in Entire Sco pe-3 Supply Chain (① to ⑮ show categories of Scope 3)