Kuraray Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Hitoshi Kawahara; hereinafter “Kuraray” or the “Company”) has adopted internal carbon pricing (ICP)* for the Kuraray Group’s capital investment.
Under the system, an internal carbon price will be applied to calculate the cost of CO2 emissions for use as a criterion for decisions about capital investment plans that entail a change in such emissions, thereby promoting CO2 emission reduction.
* ICP: A mechanism for creating economic incentives to reduce emissions and save energy, promoting low-carbon investment and encouraging climate change response by setting an internal carbon price and using it to calculate a monetary cost of emissions.
The Kuraray Group's ICP
|・Internal carbon price||¥5,000/t-CO2 (calculated using internal exchange rates overseas)|
|・Scope||Capital investment entailing a change in CO2 emissions|
|・Method of application||The costs of changes in CO2 emissions will be calculated using the internal carbon price and used as a criterion for investment decisions|
The Kuraray Group will use ICP to incentivize energy saving, identify revenue opportunities and risks, and inform investment decision making, aiming to realize a low-carbon society.
The Kuraray Group's vision for itself under the Kuraray Vision 2026 long-term vision is a “Specialty Chemical Company, growing sustainably by incorporating new foundational platforms into its own technologies.” Aiming to achieve this vision through its business activities, Kuraray Group will strive to improve the natural and social environment while working to create value with society.