Climate Change Countermeasures

The Chugai Group considers climate change to be an important issue for global environmental protection, and is working to reduce the volume of its GHG*1 emissions. As part of this effort, we are working to reduce energy consumption, promoting the introduction of eco-friendly cars*2, and reducing the use of CFCs and HCFCs*3 toward our goal of discontinuing their use by 2020.

  • *1 GHG:Greenhouse Gas
  • *2 Includes hybrids and fuel-efficient vehicles
  • *3 CFC: chlorofluorocarbon, HCFC: hydrochlorofluorocarbon

Reducing GHG emissions

Independent verification of environmental performance data

The Chugai Group believes in the importance of disclosing highly transparent, reliable environmental information, and we received independent verification from Bureau Veritas Japan of our 2017 energy-related GHG emissions (Scope 1*4, 2*5 and 3*6, Category 5 (waste)*7 and Category 6 (business travel) *8). As a result, this data has received a limited assurance. We will continue to disclose highly transparent, reliable information, while making effective use of third party verification and working toward continuous improvement of our environmental management.

  • *4 Direct emissions
  • *5 Indirect emissions from energy consumption (emissions associated with energy generation supplied by other companies)
  • *6 Indirect emissions other than Scope 1 and 2 (other companies’ emissions associated with business activities)
  • *7 Greenhouse gas emissions associated with the disposal and processing of industrial waste generated by business activities.
  • *8 GHG emissions associated with use of aircraft for business travel

GHG Emissions

Scope 1, Scope 2 and Scope 3 emissions were 46,032 tons, 54,999 tons and 5,037 tons, respectively. Scope 1 emissions are computed based on direct emissions from energy-related sources, and include gasoline, diesel, A fuel oil, city gas and LPG. Scope 3 – Category 5 emissions are computed based on GHG emissions associated with the disposal and processing of industrial waste and Category 6 from business travel which involves use of airplanes.
Note that the coefficients used in computing energy and CO2 emissions are listed in the collected data.

GHG Emissions

GHG emissions by function (Scope 1, 2)

Plants are the function with the highest emissions at 52,503 tons, followed by laboratories at 41,165 tons, branch offices at 5,811 tons, distribution at 569 tons, and the head office at 555 tons.

GHG emissions by function (Scope 1, 2)

GHG emissions by energy type (Scope 1, 2)

The energy type responsible for the highest emissions was electricity, at 54,999 tons, followed by city gas at 40,693 tons, gasoline at 4,186 tons, diesel at 543 tons, fuel oil at 108 tons, and LPG at 74 tons.

GHG emissions by energy type (Scope 1, 2)

Change in Scope 1 and 2 Emissions

Scope 1 and 2 emissions were 100,604 tons, an increase of 728 tons from 2016, while CO2 emissions per employee fell by 0.2 tons from 2016 to 13.6 tons per person. While Scope 2 emissions fell by 33 tons to 54,999 tons, CO2 emissions resulting from the use of city gas increased by 1,008 tons. As a result, Scope 1 emissions increased by 760 tons to 45,605 tons, factors which explain the increase in Scope 1 and 2 emissions.

CO2 Emissions

Reducing Energy Consumption

The Chugai Group in mid-term environmental goals set a target of reducing energy consumption by 20 percent compared with the 2010 level of 350 gigajoules (GJ) per employee.
While no quantitative targets were set for energy consumption for 2017, efforts continued to reduce energy use. Progress in 2017 toward achieving our mid-term environmental goals included a 9% reduction in total energy consumption compared with 2010, to 2.185 million GJ and a 17% reduction in energy consumption per employee compared with 2010, to 296 GJ per employee. Total energy consumption increased by 0.7% compared to 2016. The primary factor behind this rise was an increase of 2.5% versus 2016 in the use of city gas, which represents a significant proportion of total energy consumption.

Energy Consumption

Power-Saving Measures

The Chugai Group engages in power-saving measures year-round. Through our summer (June-September) “cool biz” and winter (January-March, December) “warm biz” campaigns, in 2017, our head office, branches (tenant offices) and Chugai Distribution reduced power use by 1% over 2016, to 5,239 MWh. Our plants and research laboratories (five major sites) reduced power use by 23MWh over 2016, to 124,783 MWh. Company-wide, power use decreased by 178MWh, to 130,022 MWh.

Electricity Usage

Discontinuation of Use of and Conversion from Halogenated Hydrocarbons

By 2020, the Chugai Group aims to eliminate equipment that uses chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), which have a high global-warming potential and deplete the ozone layer.
We are working to replace it with equipment that uses less ozone-depleting hydrocarbons. In 2017, the total amount of CFCs and HCFCs used was 4,646 kg, a decrease of 846 kg from 2016. We are also closely monitoring the amount of hydrocarbons used to replenish the portion that leaked from equipment (the amount of CFCs and HCFCs refilled in 2016).

CFCs and HCFCs Used to Fill Equipment

Introduction of Eco-friendly cars

Chugai began introducing hybrid vehicles to its MR fleet in 2003. We have been increasing the ratio of hybrid vehicles to reach the goal we set in 2006 of 50 percent of our MR fleet by the end of 2012. In 2014, we once again set 60 percent or higher of our MR fleet and a fuel efficiency goal of 16 km/L by 2020, and we continue working toward even greater efficiency.
Hybrid and fuel-efficient vehicles in the MR fleet as of the end of 2017 totaled 1,413 cars, a deployment rate of 78%, as we maintained our target of 50% or higher deployment. Meanwhile, average fuel economy was 14.2 km/L, and we were unable to achieve our target of 16 km/L or higher.

Introduction of Fuel-Efficient Vehicles to Our MR Fleet

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Environmental Protection, Safety and Health

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