Independent verification of environmental performance data

The Chugai Group believes it is important that we disclose highly transparent, reliable environmental information. We received independent verification from Bureau Veritas Japan Co., Ltd. of our greenhouse gas emissions associated with energy consumption in fiscal 2018, including Scope 1^*4, 2^*5 and 3^*6, and Category 5 (industrial waste)^*7 and 6 (business travel)^*8. As a result, we have received a limited warranty with regards to this data. Chugai will continue to disclose highly transparent, reliable information, make effective use of third-party verification, and advance ongoing improvements in 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

• Environmental Performance Data Independent Verification Report [PDF 1.3MB]
• GHG Emissions Verification Statement [PDF 1.3MB]

Scope 1, Scope 2 and Scope 3 emissions were 49,488 tons, 62,108 tons and 4,583 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 by function (Scope 1 and Scope 2)

Plants are the function with the highest emissions at 62,859 tons, followed by laboratories at 40,026 tons, branch offices at 5,314 tons, distribution at 617 tons, and the head office at 581 tons. Emissions from an overseas research laboratory totaled 1,951 tons.

GHG emissions by energy type (Scope 1 and Scope 2)

In energy, electricity generated the largest volume of emissions at 61,120 tons, followed by city gas at 44,579 tons, gasoline at 3,680 tons, heat at 988 tons, diesel at 554 tons, fuel oil at 355 tons and LPG at 72 tons.

Change in Scope 1 and Scope 2 Emissions

Scope 1 and Scope 2 emissions increased by 10,744 tons from 2017 to 111,348 tons. CO₂ emissions per employee increased 1.4 tons to 15.0 tons per employee. The increase in Scope 1 and Scope 2 emissions was due to the newly constructed UK3 manufacturing plant for handling biological API production within the Ukima Plant, which saw an increase in Scope 1 emissions of 5,365 tons and in Scope 2 emissions of 4,991 tons.

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.
Other targets for 2018 included reducing both energy consumption and CO₂ emissions by greater than 2% compared to 2017 levels. In terms of progress in 2018 toward achieving these mid-term environmental goals, total energy consumption increased 1.6% versus 2010, to 2.421 million gigajoules (GJ), while energy consumption per employee fell 8.2% to 326 GJ. Total energy consumption increased by 10.8% compared to 2017. This was primarily due to the UK3 manufacturing plant for handling biological API production newly constructed within the Ukima Plant.

The Chugai Group works to conserve electricity throughout the year, including through its participation in the “Cool Biz” program in the fiscal 2018 summer (June - September) and the “Warm Biz” program in the winter (December - March). Factoring into electricity use in 2018 were an increase in tenants at the head office and branches, the launch of data collection from overseas research labs, and the newly constructed UK3 manufacturing plant for handling biological API production within the Ukima Plant. Together, these resulted in an increase of 14,471 MWh over 2017 levels, to 144,493 MWh.

The Chugai Group has targeted the elimination by 2020 of equipment using specific CFCs and HCFCs that act to deplete the ozone layer.
We are working to shift to equipment using halogenated hydrocarbons with less of an ozone-depleting action, and in 2018, the total volume of CFCs and HCFCs held in equipment fell by 886 kg over 2017 levels to 3,760 kg. While progress is gradual, we continue working to reduce our use of specific CFCs and HCFCs as we work toward their complete elimination. Note that we also strictly check the volume of refills (leaked volume equivalents to the volume of CFCs and HCFCs refilled).

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 16 km/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 December 31, 2018, Chugai had introduced a cumulative total of 1,415 hybrid and fuel-efficient vehicles in its MR fleet. The ratio of eco-friendly cars was 80%, remaining above the target of 60%. Meanwhile, average fuel efficiency was 15.6 km/L, falling just short of the target of 16 km/L.