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 in the MR fleet, and reducing the use of CFCs and HCFCs*3 toward our goal of discontinuing their use by 2020.
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 are working to conduct scenario analysis based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendation*4 framework, thereby addressing the risks and opportunities presented by climate change through enhanced information disclosure.

  • *1 GHG:Greenhouse Gas
  • *2 Includes hybrids and fuel-efficient vehicles
  • *3 CFC: chlorofluorocarbon, HCFC: hydrochlorofluorocarbon
  • *4 TCFD: Disclosure of information related to mechanisms 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. We received independent assurance from KPMG AZSA Sustainability Co., Ltd. of our greenhouse gas emissions associated with energy consumption in fiscal 2019, including Scope 1*5, 2*6 and 3*7 – Category 4 (distribution)*8, 5 (industrial waste)*9 and 6 (business travel)*10. Chugai will continue to disclose highly transparent, reliable information, make effective use of third-party assurance, and advance ongoing improvements in our environmental management.

  • *5 Direct emissions
  • *6 Indirect emissions from energy consumption (emissions associated with energy generation supplied by other companies)
  • *7 Indirect emissions other than Scope 1 and 2 (other companies’ emissions associated with business activities)
  • *8 GHG emissions associated with transport from the distribution center to the wholesaler warehouse
  • *9 GHG emissions associated with the disposal and processing of industrial waste generated by business activities
  • *10 GHG emissions associated with use of aircraft for business travel

GHG Emissions

Scope 1, Scope 2 and Scope 3 emissions were 48,089 tons, 61,226 tons and 5,587 tons. Scope 1 emissions are computed based on direct emissions from energy-related sources, and include gasoline, diesel, fuel oil, city gas and LPG. Scope 3 – Category 4 emissions are computed based on GHG emissions from that portion of transport and delivery (upstream) involving transport from the distribution center to the wholesale warehouse. Category 5 emissions are computed based on GHG emissions associated with the disposal and processing of industrial waste, and Category 6 from business travel by airplanes.
Note that the coefficients used in computing energy and CO2 emissions are listed under Sustainability Policy and Data 2019.

GHG Emissions

GHG emissions by function (Scope 1 and Scope 2)

Plants are the function with the highest emissions at 63,113 tons, followed by laboratories at 37,473 tons, branch offices at 3,960 tons, the head office at 637 tons and distribution at 568 tons. Emissions from overseas and production sites totaled 2,746 tons.

GHG emissions by function (Scope 1 and Scope 2)

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

In energy, electricity generated the largest volume of emissions at 59,929 tons, followed by city gas at 44,089 tons, gasoline at 2,607 tons, heat at 1,297 tons, diesel at 347 tons, fuel oil at 158 tons and LPG at 70 tons.

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

Change in Scope 1 and Scope 2 Emissions

Scope 1 and Scope 2 emissions decreased by 3% from the 2018 level to 108,497 tons. CO2 emissions per employee decreased by 0.3 tons. Reductions in the MR fleet, the deployment of eco-friendly cars, and promotion of eco-friendly driving were the main factors behind a significant decrease in gasoline and diesel consumption.

CO2 Emissions

Reducing Energy Consumption

The Chugai Group 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.

It also set targets for fiscal 2019 of reducing both energy consumption and CO2 emissions by 2% or more compared to 2018. In terms of progress in 2019 toward achieving the mid-term environmental goals, total energy consumption decreased by 2% versus 2018, to 2.367 million GJ, while energy consumption per employee fell 10% versus 2010, to 320 GJ per employee. This was due not only to the deployment of highly energy-efficient equipment and fuel conversion, but to the introduction of an energy visualization system and advancements in energy-saving measures in everyday business activities.

Energy Consumption

Power-Saving Measures

The Chugai Group works to conserve electricity throughout the year, including through its participation in the “Cool Biz” program in fiscal 2019 summer (May–September) and the “Warm Biz” program in the winter (December–March). Advancing energy-saving measures in everyday business activities reduced electricity use in 2019 by 2,816 MWh over 2018, to 141,677 MWh.

Electricity Usage

Discontinuation of Use of and Conversion from Halogenated Hydrocarbons

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 2019, the total volume of CFCs and HCFCs held in equipment fell by 1,013 kg over 2018 levels to 2,746 kg. In 2020, we will 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).

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 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 the end of 2019, Chugai had introduced a cumulative total of 1,278 hybrid and fuel-efficient vehicles in its MR fleet. The ratio of eco-friendly cars was 81%, above the target of 80%. Further, average fuel efficiency was 19.6 km/L, significantly exceeding the target of 16 km/L.

Introduction of Fuel-Efficient Vehicles to Our MR Fleet

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