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 have been working to reduce energy consumption, promoting the introduction of eco-friendly cars*2 in the MR fleet, and reducing the use of CFCs and HCFCs*3 toward our goal of discontinuing their use by 2020.
Globally, climate change countermeasures are increasingly coming into focus as an important issue. With an expected strengthening of fluorocarbon regulations, efforts which are simply an extension of previous initiatives have their limits, making an even higher level of initiatives essential. With the completion of its new Chugai Life Science Park Yokohama and the consolidation of its research laboratories; promotion of reduced, more efficient use of energy; and a shift to the use of sustainable electricity, the Chugai Group aims to bring its use of sustainable electricity to 100% by 2025. Because this will also require a reduction in direct CO2 emissions (Scope 1) from fuel consumption, Chugai is also considering the conversion of existing facilities, and facility consolidation, elimination and redesign.
Furthermore, we have set a long-term goal of zero CO2 emissions with 2050 as the final year. We will implement long-term and large-scale climate change measures to achieve our goals.

The impact of climate change also grows more severe each year, and as a result, investors and other stakeholders are seeking appropriate disclosure from companies regarding the impact on their business activities. In response to these stakeholder demands, at Chugai we have conducted scenario analysis based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations*4. Through that analysis, we will work to address climate change risks and opportunities and engage in further improvement of disclosure.

Scenario Analysis in Climate Change Risks

  • *1 GHG: Greenhouse Gas
  • *2 Eco-friendly cars: Includes hybrids and fuel-efficient vehicles
  • *3 CFC: chlorofluorocarbon, HCFC: hydrochlorofluorocarbon
  • *4 TCFD recommendations : Disclosure of climate-related information with a financial impact on the Company

Reducing GHG Emissions

Independent assurance of environmental performance data

The Chugai Group believes it is important that we disclose highly transparent, reliable environmental information, and each year we undergo independent assurance of our environmental performance data. The data indicated with for the year of 2020 have been assured by KPMG AZSA Sustainability Co., Ltd. Chugai will continue to disclose highly transparent, reliable information, make effective use of third-party assurance, and advance ongoing improvements in our environmental management.

Independent Third-party Assurance Report [PDF 2.0MB]
Sustainability Policy and Data 2020

GHG Emissions

Scope 1, Scope 2 and Scope 3 emissions were 42,771 tons, 59,935 tons and 1,075,945 tons respectively. Scope 1 emissions calculate direct emissions by the Company and include CO2 emissions associated with the use of gasoline, diesel, fuel oil, city gas, and LPG, and emissions of chlorofluorocarbons and carbon dioxide gas, etc. The range for calculating Scope 3 emissions was expanded in 2020 to cover all relevant categories of greenhouse gas emissions.
Note that the coefficients used in calculating energy and CO2 emissions and the calculated boundary of each scope and category are listed under Sustainability Policy and Data 2020.

GHG Emissions

CO2 emissions from energy consumption by function (Scope 1 and 2)

Plants are the function with the highest emissions at 60,248 tons, followed by laboratories at 35,176 tons, branch offices at 2,359 tons, the head office at 548 tons and distribution at 561 tons. Emissions from overseas and production sites totaled 2,770 tons.

CO2 emissions from energy consumption by function (Scope 1 and 2)

CO2 emissions from energy consumption by energy type (Scope 1 and 2)

Energy type with the largest volume of emissions is electricity at 58,569 tons, followed by city gas at 40,044 tons, heat at 1,367 tons, gasoline at 1,307 tons, diesel at 172 tons, fuel oil at 136 tons and LPG at 69 tons.

CO2 emissions from energy consumption by energy type (Scope 1 and 2)

Change in Scope 1 and Scope 2 Emissions

Scope 1 and Scope 2 emissions from energy consumption decreased by 6% from the 2019 level to 101,663 tons. CO2 emissions per employee decreased 20% from the 2010 level. CO2 emissions per employee are forecast to drop further since Green Energy Certificates are expected to be applied to 2020 energy consumption. CO2 emissions per employee dropped primarily due to the deployment of highly energy-efficient equipment, fuel conversion and advancements in energy-saving measures, which resulted in a reduction in direct CO2 emissions (Scope 1) associated with fuel use.
One effort to reduce CO2 emissions, taken in anticipation of advancing Mid-term Environmental Goals 2030, were the contracts entered into with electric power companies beginning in 2021 to introduce sustainable electricity at the Utsunomiya Plant, the Ukima Plant, and the Kamakura and Gotemba research laboratories.
In 2020, the Ukima Plant, which is eligible for Tokyo Cap-and-Trade Program, cooperated in helping Metropolitan Tokyo achieve its Zero Emissions Tokyo goal, efforts which on April 1, 2021 were recognized with a certificate of appreciation from Tokyo’s governor.

CO2 emission reduction

Reducing Energy Consumption

Chugai worked to steadily to advance efforts to achieve the Mid-term Environmental Goals in 2020, their final year. Per-employee energy consumption was reduced by only 17% compared to 2010. However, we plan to use Green Power Certificates to be applied to 2020 energy consumption, this will result in a 20% reduction when calculating per-employee non-renewable energy consumption. Chugai will continue to advance efforts to reduce energy consumption going forward, through deployment of highly energy-efficient equipment, fuel conversion, deployment of eco-friendly vehicles, and through energy-saving movements as part of everyday business activity.

Energy reduction

Discontinuation of Use of and Conversion from Halogenated Hydrocarbons

The Chugai Group has advanced efforts to shift to equipment using halogenated hydrocarbons with less of an ozone-depleting action, with the goal of eliminating by 2020 equipment using specific CFCs and HCFCs that act to deplete the ozone layer. That goal was almost reached, with just 34kg of specific CFCs and HCFCs remaining as of the end of 2020. These 34kg in use are in the buildings and equipment at the Gotemba and Kamakura research laboratories, which are scheduled to be dismantled with the 2023 relocation to the Yokohama Research Laboratory, at which point their use will be discontinued. Other specific CFCs and HCFCs were completely eliminated at the end of 2020. Note that until they are eliminated, we continue to strictly check the amount of refills (leaked amount equivalents to the amount of CFCs and HCFCs refilled).

CFCs and HCFCs Used to Fill Equipment

Introduction of Eco-friendly cars

In 2003, Chugai began introducing hybrid vehicles in its MR fleet. In 2006, we raised the ratio of hybrid vehicles with a target of bringing that ratio to 50% by the end of 2012. We continue to validate our targets--a deployment ratio of eco-friendly cars greater than 60% by 2014, fuel efficiency of greater than 16km/L by 2020 and an eco-friendly car deployment ratio of greater than 80% by 2019--as we work toward even greater efficiency.
As of the end of 2020, Chugai had introduced a cumulative total of 1,294 hybrid and fuel-efficient vehicles in its MR fleet. The ratio of eco-friendly cars was 85%, above the target of 80%. CO2 emissions from the MR fleet continue to drop year by year. In 2020, the drop can also be attributed to restraints and curbs on sales and marketing activities intended to prevent the spread of the novel coronavirus. Further, average fuel efficiency was 27km/L, significantly exceeding the target of 16km/L.

CO2 emissions from MR fleet and ratio of eco-friendly cars

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