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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 2016 energy-related GHG emissions (Scope 1*4, 2*5 and 3*6, Category 6 (business travel)*7). As a result, this data has received a limited warranty. 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 GHG emissions associated with use of aircraft for business travel

GHG Emissions

Scope 1, Scope 2 and Scope 3 – Category 6 emissions were 44,844 tons, 55,032 tons and 3,062 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 6 emissions are computed based on GHG emissions 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 51,724 tons, followed by laboratories at 40,969 tons, branch offices at 6,085 tons, the head office at 562 tons and distribution at 537 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 55,032 tons, followed by city gas at 39,684 tons, gasoline at 4,574 tons, diesel at 406 tons, fuel oil at 106 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 fell by 2% compared to 2015, to 99,877 tons, while CO2 emissions per employee fell by 3% compared to 2015, to 13.8 tons per person. While Scope 2 emissions rose by 386 tons to 55,032 tons, a 2,603 ton reduction in the use of city gas brought Scope 1 emissions to 44,844 tons, resulting in a drop in the total for 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 numerical targets were set for energy consumption for 2016, efforts continued to reduce energy use. Progress in 2016 toward achieving our mid-term environmental goals included a 9% reduction in total energy consumption compared with 2010, to 2,170 GJ and a 16% reduction in energy consumption per employee compared with 2010, to 299 GJ per employee. A 5 percent reduction in consumption of city gas, of which the Chugai Group is a major user, was the main factor in the decrease in 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, our head office, branches (tenant offices) and Chugai Distribution reduced power use by 1% over 2015, to 5,295 MWh. Our plants and research laboratories (five major sites) increased power use by 1% over 2015, to 124,806 MWh. Company-wide, power use increased by 1%, to 130,100 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. The total amount of CFCs and HCFCs used was 5,492 kg, a decrease of 198 kg from 2015. 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.
At the end of 2016, we had a total of 1,431 hybrid vehicles and conventional vehicles with similar fuel efficiency (fuel-efficient vehicles), which accounts for above 60 percent at 75 percent of our fleet. Average fuel efficiency of the MR fleet was on target at 16.0 km/L.

Introduction of Fuel-Efficient Vehicles to Our MR Fleet

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