GHG emissions
KH Neochem has declared Seven Promises to its stakeholders to drive Sustainable Management. To address one of the promises, "We will conduct business conscious of reducing our impact on the environment," we have set the reduction of GHG emissions as a management goal and will contribute to the reduction of environmental impact throughout the life cycle of our products.
To achieve carbon neutrality by 2050, we have set for ourselves the target of reducing emissions by 30% compared to FY2017 by 2030, and aim to achieve this target ahead of schedule during the period of our 5th MTBP. By utilizing advanced plant control systems, upgrading in-house power generation equipment, and introducing CO2 capture equipment, in FY2024 we achieved a 21% reduction in emissions compared to FY2017 (based on the Act on the Rational Use of Energy). Furthermore, when taking into account the consumption of CO2 as a raw material, which is one of our strengths, our progress works out to a 29% reduction.
In addition, to contribute to reductions during the product life cycle, we are making a significant contribution to reducing GHG emissions from air conditioners worldwide by supplying refrigeration lubricant raw materials used in environmentally friendly refrigerants.
Current progress
As a result of our shift to a business structure that emphasizes added value over quantity, such as strengthening Performance Materials, production volumes have decreased and therefore so have GHG emissions. In addition, by fortifying energy-saving measures, including upgrading our in-house power generation equipment and expanding the adoption of advanced plant control systems, we achieved a 29% reduction in GHG emissions in FY2024 compared to FY2017.
Policy (strategy) for the path ahead
In 2025, we commissioned new CO2 capture equipment at our Chiba Plant, and by pursuing energy-saving initiatives through further utilization of advanced control systems, we aim to achieve a 30% reduction in CO2 emissions by FY2027 compared to FY2017.
GHG emissions (Scope 1 and Scope 2)
Initiatives to reduce GHG emissions
Upgrading of In-house Power Generation Facilities at the Chiba Plant
In March 2021, we upgraded the in-house power generation facilities at our Chiba Plant. Along with the facilities upgrade, we reviewed the type of fuel used, enabling us to reduce CO2 emissions from the entire Chiba Plant by 15% compared to the previous in-house power generation facilities.
Installation of advanced control systems at plants
Chemical plants are lined with many pipes, and the flow volume of raw materials and products is constantly fine-tuned to ensure safe plant operation. The advanced control system is a state-of-the-art system that uses AI and other technologies to automatically estimate and adjust plants to appropriate conditions, taking into account various conditions such as temperature and pressure. With this system implemented, we are able to minimize production losses and achieve energy-efficient operation.
We will continue to promote CO2 reduction by increasing the number of plants with this system installed and promoting further energy conservation.
Using CO2 as a raw material
Our core technology, oxo synthesis (also known as hydroformylation), is a process where oxo a mixture of carbon monoxide (CO) and hydrogen (H2), reacts with raw materials, such as olefins, to synthesize aldehydes. CO2 is used as a raw material in the CO and H2 production process, and is one of the reactions that has actually been industrialized as an effective way to utilize CO2. In addition to collecting CO2 generated by other companies for use as raw materials, we also collect some of our own CO2, thereby contributing to the reduction of CO2 generated in the manufacturing process.
Amount of Greenhouse Gas (GHG) released trends (Scope1、Scope2) (Non-Consolidated)
Unit: kt-CO2
| fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|
| Scope1 | 390.6 | 383.6 | 372.6 | 321.5 | 360.7 | 327.8 | 328.1 | 318.4 |
| Scope2 | 83.0 | 65.4 | 67.6 | 82.6 | 61.7 | 51.2 | 50.3 | 56.5 |
| amount | 473.6 | 448.9 | 440.2 | 404.2 | 422.4 | 379.1 | 378.4 | 374.9 |
*1 Figures reported based on the Act on the Rational Use of Energy.
*2 Starting in fiscal year 2021, we have been deducting the amount of CO2 that was generated in our production processes, captured, and used as raw materials from our GHG emissions.
*3 Round to the nearest hundredth place.
Aiming to reduce environmental impact throughout the supply chain
Approximately 80% of our Scope 3 GHG emissions come from Category 1, “Purchased goods and services.” As the majority of these emissions relate to procured raw materials, we are working to reduce the environmental impact throughout our supply chain by deepening cooperation with industrial complexes and other suppliers.
GHG emissions (Scope3)
(April 2024 to March 2025 for Categories 3 and 5)
Amount of Greenhouse Gas (GHG) released trends (Scope3) (Fiscal year 2024, Non-Consolidated)
Unit: kt-CO2
| Category | Category name | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|---|
| Category 1 | Purchased products and services | 1087 | 818 | 853 | 831 |
| Category 2 | Capital goods | 18 | 57 | 34 | 44 |
| Category 3 | (Not included in Scope 1 and 2) Fuel- and energy-related activities | 69 | 61 | 60 | 63 |
| Category 4 | Upstream transportation and distribution | 35 | 24 | 43 | 45 |
| Category 5 | Waste generated in operations | 1 | 1 | 2 | 1 |
| Category 6 | Business travel | <1 | <1 | <1 | <1 |
| Category 7 | Employee commuting | <1 | <1 | <1 | <1 |
| Category 12 | End-of-life treatment of sold products | 121 | 92 | 92 | 90 |
*1 Period covered: January 2024 to December 2024 (Category 3,5 is April 2024 to March 2025)