Preventing Global Warming(2020)
Principal Initiatives in Fiscal Year 2020
01Energy Consumption and CO₂ Emissions by the Global DIC Group
Energy consumption by the global DIC Group in fiscal year 2020 declined 3.1% from fiscal year 2019 and 16.9% from the fiscal year 2013 base year. CO₂ emissions
by the global DIC Group amounted to 552,123 tonnes, down 4.3% from fiscal year 2019 and 23.6% from fiscal year 2013, while CO₂ emissions per unit of production,
at 271.7 kg/tonne, edged up 0.6% from fiscal year 2019 but fell 16.9% from the base year.
The DIC Group’s diverse product portfolio includes printing inks, polymers, pigments, LCs, engineering plastics and compounds. Recent years have seen an
uptrend in the output of energy-intensive fine chemicals and a downtrend in the output of general-purpose items, the production of which is comparatively energy
efficient. Against this backdrop, the Group’s success in achieving a reduction in the volume of CO₂ it emits worldwide in excess of its target for the year included a
decline in production volume due to COVID-19, as well as efforts by companies worldwide to break down the target—an average annual decrease of 2.1% from fiscal
year 2018—set forth in the DIC111 medium-term management plan to ensure achievement of its long-term target of a 30.0% reduction from the fiscal year 2013 level
by fiscal year 2030. This achievement also reflected the promotion of energy-saving and decarbonization initiatives beyond what had been necessary to achieve its
previous annual reduction target of 1.0%. Some of these initiatives are outlined below.
Going forward, the Group will continue to implement a variety of energy-saving measures, including introducing highly efficient facilities, promoting process
improvements and boosting capacity utilization rates, while at the same time further advancing its use of renewable energy by shifting to biomass and other clean
fuels and installing solar power facilities.
02Energy Consumption and CO₂ Emissions by the DIC Group in Japan
Energy consumption by the DIC Group in Japan—the 54 sites in Japan operated by DIC and domestic DIC Group companies—in fiscal year 2020 was down 8.5%
from fiscal year 2019 and 13.0% from the fiscal year 2013 base year. Energy consumption per unit of production totaled 3.733 GJ, an increase of 0.8% from fiscal year
2019 but a decline of 10.5% from the base year. CO₂ emissions by the Group in Japan amounted to 194,364 tonnes, a decrease of 12.0% from fiscal year 2019 and
20.5% from fiscal year 2013, while CO₂ emissions per unit of production amounted to 189.6 kg/tonne, down 3.1% from fiscal year 2019 and 18.2% from the base year.
Principal factors behind lower CO₂ emissions by the Group in Japan included a decline in production volume attributable to the COVID-19 pandemic, as well as the
implementation of 468 energy-saving initiatives at sites and start of operations of solar power facilities at six sites, including the Sakai Plant, with a combined annual
generating capacity of 1,277 kW. As of December 31, 2020, the total generating capacity of solar power facilities at DIC Group sites in Japan was 4,341 kW.
Other contributing factors included a decrease in the incineration of waste oil and waste plastic using a rotary kiln at the Chiba Plant and by Group company DIC
Decor, Inc., which resulted in a decline in CO₂ emissions attributable to the incineration of waste equivalent to 2.7% of total emissions attributable to the Group in
Japan in fiscal year 2019.
Renewable Energy as a Percentage of Total Energy Used in Japan: 15.2%
The bulk of renewable energy used by DIC Group companies in Japan is natural energy generated by a biomass boiler and wind and solar power facilities
at the Kashima Plant. In fiscal year 2020, DIC Group companies in Japan used 687,000,000 GJ of renewable energy (equivalent to 17,725 kl of crude oil), up
32.4% from fiscal year 2019 and representing 15.2% of total energy (steam and electric power) consumed by these companies. The increase in renewable
energy use was attributable to a variety of factors, including the fact that electric power generated by the Kashima Plant’s wind power system (two 2,300
kW–capacity wind turbines) fell sharply in fiscal year 2019 as a result of repairs, which required close to three months to complete, and an increase in the
positive impact of biomass boiler performance.
In fiscal year 2020, DIC completed the installation of new solar power facilities at six sites in Japan (the Sakai and Komaki plants, the Central Research
Laboratories and Group company DIC Kyushu Polymer Co., Ltd., and Group company DIC Kitanihon Polymer Co., Ltd.’s Hokkaido and Tohoku plants) with a
combined annual generating capacity of 1,277 kW. As a consequence, the total generating capacity of solar power facilities at DIC Group sites in Japan as
of December 31, 2020, was 4,341 kW, while solar power generated by the DIC Group in Japan during the period rose 42.0%, to 4,341 kWh, from 3,064 kWh
in fiscal year 2019.
The use of renewable energy by DIC Group companies in Japan in fiscal year 2020 accounted for reduction in CO₂ emissions of 43,526 tonnes, or 18.3%,
from the previous fiscal year. Going forward, DIC will continue to take decisive steps to advance its use of renewable energy with the aim of achieving its
long-term target for reducing CO₂ emissions from DIC Group sites by 30.0% from the fiscal year 2013 level by fiscal year 2030.
Solar Power Facilities Installed in Japan in Fiscal Year 2020
03Independent Electric Power Generation in Japan
In fiscal year 2020, electric power consumption by the DIC Group in Japan declined 5.6%, to 255,860,000 kWh, approximately 25.0% of which was generated independently, with that generated using renewable energy accounting for 9.4% and that generated using cogeneration systems representing 15.6%. Despite an increase in independently generated solar power, total independently generated power edged down 0.2%, owing to the temporary stoppage of the Gunma Plant’s cogeneration system.
DIC Wins New Energy Foundation Chairman’s Award in the Adoption and Application Category of the 2018 New Energy Awards
In December 2018, DIC won a New Energy Foundation Chairman’s Award in the Adoption and Application Category of the 2018 New Energy Awards in
recognition of the expanded use of renewable energy at the Kashima Plant. The awards program, which was presented by the New Energy Foundation, was
established with the aim of encouraging the introduction of new energy and promoting awareness by commending particularly excellent initiatives.
The Kashima Plant has installed multiple renewable energy–powered generating facilities, including biomass and methane gas boilers, as well as wind
power and solar power systems. As a consequence, 50% of electric power and 80% of heat consumed annually by the site is generated by using renewable
energy. These facilities also contributed to a reduction in annual CO₂ emissions in fiscal year 2018 of more than 36,000 tonnes. Looking ahead, the
department responsible for the plant’s energy supply will continue working to enhance the combustion efficiency of generating facilities, including biomass
and methane gas boilers, by upgrading maintenance and management technologies and accumulating know-how.
The Chairman’s Award recognizes the positive results of these steadfast efforts. DIC will deploy know-how accumulated by the Kashima Plant at sites both
in Japan and overseas with the aim of increasing its use of renewable energy and reducing its emissions of greenhouse gases around the world.
04Protecting the Ozone Layer
Hydrofluorocarbons (HFCs) are used widely as refrigerants in equipment and facilities. While not an ozone-depleting substance (ODS), HFCs have a warming
potential 100–10,000 times that of CO₂ and their use is expected to account for a 0.5°C increase in the global average temperature by the end of the 21st century. At
the 28th Meeting of the Parties in Kigali, Rwanda, held in October 2016, the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer reached
an agreement to phase out the production and use of HFCs (the Kigali Amendment). Japan subsequently amended its Act on the Protection of the Ozone Layer
Through the Control of Specified Substances and Other Measures in line with the amendment, which as of October 3, 2020, had been ratified by 105 Parties. (Having
surpassed the condition of ratification by at least 20 Parties, the Kigali Amendment entered into force on January 1, 2019.)
In April 2015, Japan also revised its Fluorocarbons Recovery and Destruction Law. The same month, the Act on Rational Use and Proper Management of
Fluorocarbons entered into force, compelling stakeholders to ascertain and
report leaks of fl uorocarbons from commercial equipment and facilities.
In fiscal year 2020, leaked fl uorocarbons from DIC sites were equivalent to
418 tonnes of CO₂. (Leaks in excess of 1,000 tonnes per site or per company
must be reported to the Japanese authorities.) The Company has worked to
effectively manage fluorocarbons since the Act on Rational Use and Proper
Management of Fluorocarbons entered into force and has managed to keep
leaks below the level requiring reporting. Leaked fl uorocarbons in fiscal year
2020 were lower than in an average year as a consequence of the replacement
of fewer chillers. (Leaked fluorocarbons are calculated as the difference
between amount filled into new equipment and amount recovered when
equipment is dismantled.) The DIC Group will continue to select air conditioning
and other equipment using nonfluorocarbon and other refrigerants that do
not negatively impact the environment with the aim of reducing the amount of
leaked fl uorocarbons for which it is responsible.
05Energy Consumption and CO₂ Emissions by the DIC Group Overseas
Notwithstanding a 0.2% dip in production volume by the DIC Group overseas in fiscal year 2020, CO₂ emissions edged up 0.4%, despite being down 25.2%
from the fiscal year 2013 base year, while CO₂ emissions per unit of production rose 0.6%, but were down 14.2% from fiscal year 2013. Energy consumption
edged up 0.3%, but declined 19.0% from the base year.
F actors contributing to the increase in CO₂ emissions included the fact that efforts by individual DIC Group companies to break down the Group’s
emissions reduction targets and promote decarbonization initiatives were countered by the inclusion beginning in fiscal year 2020 of production facilities
operated by affiliates in the PRC and Taiwan.
Laws and regulations, as well as infrastructure, differ between countries and regions. The DIC Group strives to promote energy savings and efficient operations wherever it is active and in so doing sets precedents for the global chemicals industry. DIC Group companies overseas continue to implement a broad range of energy-saving initiatives, including improving production efficiency, reducing base load energy consumption, choosing high-efficiency models when replacing equipment and switching to LED lighting.
Asia–Pacific Region
The 22 DIC Group sites in the Asia–Pacific region account for roughly 19% of the Group’s total global CO₂ emissions. With production volume in fiscal year 2020
down 5.7% from fiscal year 2019 and 5.2% from the fiscal year 2013 base year, energy consumption by Group companies across the region decreased 1.0% from
the previous fiscal year, despite being up 3.4% from fiscal year 2013, while CO₂ emissions edged up 0.7% from fiscal year 2019, but were down 7.1% from the base
year. Indonesia is home to the Group’s mother plant for pigments, production of which is comparatively energy intensive. The pigments business accounts for more
than 50% of the Group’s energy consumption and CO₂ emissions in this region, underscoring its influence on results for the region as a whole. Accordingly, the
Group continues to promote a variety of initiatives at this site—including replacing a portion of the coal used to fire boilers with palm kernel shells (PKS), a biomass
fuel, an effort that began in fiscal year 2016, and earning certification under ISO 50001, the International Organization for Standardization’s benchmark for energy
management systems—with the aim of reducing its regional CO₂ emissions.
As part of its effort to ensure achievement of the CO₂ emissions target set for the global DIC Group, corporate headquarters assists regional Group companies
by formulating and implementing energy-saving plans; promoting ongoing energy-saving analyses to support the identification of energy-saving themes and the
implementation of remedial measures; deploying a practical energy management manual and best practice case study materials to establish management practices
and promote horizontal deployment; and launching and providing support for energy-saving and carbon-reduction projects at suitable sites.
Greater China
The DIC Group’s 18 sites in Greater China account for approximately 10% of the Group’s total global CO₂ emissions. Production volume in fiscal year 2020 was down 4.0% from fiscal year 2019, but up 2.4% from the fiscal year 2013 base year. Energy consumption by Group companies across the region decreased 1.9% from the previous fiscal year, although it was 3.9% higher than in fiscal year 2013, while CO₂ emissions declined 2.0% from fiscal year 2019 and 5.8% from the base year. Significant improvements were seen in energy consumption per unit of production at manufacturers DIC Graphics (Guangzhou) (printing inks), Changzhou Huari New Material (synthetic resins) and DIC Synthetic Resins (Zhongshan) Co., Ltd. (synthetic resins and metal carboxylates).
Americas and Europe
The DIC Group has 122 sites in the Americas and Europe (this category also includes sites in Africa), which account for roughly 35% of the Group’s
CO₂ emissions. In fiscal year 2020, production volume was down 3.3% from the previous fiscal year and 4.9% from the fiscal year 2013 base year.
Energy consumption by DIC Group companies across the region edged up 0.2% from the previous fiscal year, but was down 20.9% from fiscal year
2013, while CO₂ emissions declined 0.3% from fiscal year 2019 and 27.6% from the base year.
DIC Group companies in the Americas and Europe promote a variety of measures with the aim of lowering CO₂ emissions. These include making
use of biomass energy (landfill biogas), solar and small hydroelectric power, employing outsourcing to contract energy-efficiency consultants
to advance the reduction of energy consumption, and promoting the integration of production facilities alongside measures to boost production
efficiency. These initiatives have yielded consistently positive results since fiscal year 2014.
In fiscal year 2019, the Group’s regional headquarters, Sun Chemical, installed solar power facilities with an annual generating capacity of
approximately 800 kW with the goal of expanding its use of renewable energy. Going forward, companies in the Americas and Europe will continue
to implement ambitious initiatives that contribute to the reduction of its global CO₂ emissions.
Sun Chemical’s Approach to Sustainability
Sun Chemical promotes innovation with the aim of improving the sustainability of its manufacturing processes and products, maintaining a constant
awareness of environmental impact. The company strives to use manufacturing processes that demonstrate environmental excellence through
reduced waste generation, lower energy and water use, and a strong safety performance as measured using key metrics such as greenhouse
gas emissions, energy and water consumption, carbon footprint and safety record. Sun Chemical is also committed to meeting local regulatory
requirements in the countries and territories in which it operates and to working proactively with government, industry organizations and business
partners in its value chain to better define, measure and promote sustainability.
Product stewardship and risk management are important components of Sun Chemical’s sustainability policy. The company continues to take a
responsible, analytically based approach to fulfilling its role as a steadfast leader in this area. Through such ongoing efforts, the company increases
environmental efficiency by helping its customers enhance the sustainability of their manufacturing processes and products. Sun Chemical’s longstanding
reputation for quality, service and innovation and its dedication to improving sustainability infl uences both its daily operations and its global
strategic direction.
Along with DIC, Sun Chemical has committed to a long-term strategic target for CO₂ emissions, which is to achieve a reduction of at least 30%
by fiscal year 2030, with fiscal year 2013 as the base year, following the Paris Agreement, which succeeded the Kyoto Protocol (1990–2012) as the
global framework for addressing the challenge of dealing with greenhouse gas emissions. This level, if implemented across all industries, would limit
the increase in global average temperature due to climate change to below 2.0°C above pre-industrial levels. To achieve this target, Sun Chemical
will focus on investments in sustainable energy, as well as on measures to improve the efficiency of its manufacturing processes.
Sun Chemical Steps Up Investment in Renewable Energy by Introducing Solar Panels
Sun Chemical has concluded a solar power purchase agreement (PPA) with Onyx Renewable Partners and installed solar panels on the roof of the parking structure at its R&D site in Carlstadt, in the U.S. state of New Jersey. The use of clean energy thus generated was expected to reduce the facility’s carbon footprint. Installation of the panels began in fall 2017 and was completed in January 2018. The system came on line in March 2018.
Sun Chemical has since completed a year-round solar panel operating configuration at the site that makes it possible to generate enough solar power on sunny days to satisfy 90% of the site’s needs. Between May 14, 2018 and May 13, 2019, the system generated a total of 871 MWh of power, reducing CO₂ emissions by an estimated 1,358,092 pounds (616 tonnes) over the same period.
Solar panels installed on the roof of the Carlstadt R&D site’s parking structure
Adoption of Renewable Energy by DIC Group Companies Overseas
Against a global trend toward decarbonization, DIC Group companies overseas are working to popularize the use of renewable energy. Companies
in the Asia–Pacific region, Greater China, and the Americas and Europe are making use of government subsidies and support to, for example, install
biomass boilers and solar power facilities. In fiscal year 2020, new solar power facilities with a combined annual generating capacity of 1,277 kW
commenced operation. As of January 2021, the Group’s global solar power generating capacity (for internal consumption) was 6,445 kW, comprising
4,341 kW in Japan and 2,104 kW overseas. The DIC Group will continue to promote efforts to expand its solar power generating facilities worldwide.
In fiscal year 2021, the Group plans to install new solar power generating facilities with a total generating capacity of 2.5 MW worldwide.
In fiscal year 2020, the global DIC Group used a total of 781,542 GJ of renewable energy, an increase of 20.1% from 650,996 GJ in fiscal year
2019. The use of renewable energy accounted for a reduction in the Group’ s global CO₂ emissions of 49,319 tonnes.
Initiatives in Areas Other than Production (Offices and Research Facilities)
In fiscal year 2020, energy consumed by the DIC Group’s 22 production and research sites in Japan (excluding the Central Research Laboratories) declined 0.3%. Of particular note, DIC’s headquarters, the most energy intensive of the 22 domestic sites, achieved a decrease of 11.4%. Principal energy-saving initiatives implemented include replacing aged light fixtures and air conditioning equipment with newer, highefficiency models that satisfy standards set by the Energy Conservation Center, Japan (ECCJ) for its Top Runner program, turning off lights when not needed and implementing mandatory 22°C winter and 28ºC summer air conditioning settings, working with facility management companies to implement diligent energy-saving measures and promoting efforts in line with Japan’s Cool Biz and Warm Biz campaigns.
Grasping CO₂ Emissions Across the Supply Chain
Regarding CO₂ emissions across its supply chain (Scope 3* emissions), in fiscal year 2017 DIC participated in a lecture on the Science Based Targets (SBT) initiative organized by Japan’s Ministry of the Environment. As a consequence, DIC now reports global data for all categories of Scope 3. The Company also obtains third-party verification for its data for waste generated in operations.
- Scope 3 emissions are indirect emissions from production, trans port, business travel, commuting and other activities in the supply chain.
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- Principal Initiatives in Fiscal Year 2021
- Principal Initiatives in Fiscal Year 2020
- Principal Initiatives in Fiscal Year 2019
- Principal Initiatives in Fiscal Year 2018
- Principal Initiatives in Fiscal Year 2017
- Principal Initiatives in Fiscal Year 2016
- Principal Initiatives in Fiscal Year 2015
- Principal Initiatives in Fiscal Year 2014
- Principal Initiatives in Fiscal Year 2013
