The Chugai Group considers climate change to be one of important issues for global environmental protection and is working to reduce the volume of its GHG*1 emissions. To continue and further accelerate the efforts of the previous mid-term (ending in 2020) environmental goals, we have formulated our next set of mid-term environmental goals, which we plan to reach by 2030. The goal to reduce greenhouse gas emissions in the Mid-term Environmental Goals 2030 are consistent with the goals of the Paris Agreement*2, and was certified as a Science Based Target*3 (SBT) in November 2021.
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 the new Chugai Life Science Park Yokohama and the consolidation of its research laboratories, promotion of reduced and 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, facility consolidation/elimination and redesigns.
Furthermore, we have set a long-term goal of zero CO2 emissions to be achieved by 2050. 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, Chugai has conducted scenario analyses based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations*4. Through this analysis, we will work to address climate change risks and opportunities and engage in further improvement of disclosure activities.
Please see the following page for details on TCFD.
Scenario Analysis in Climate Change Risks
In recognition of such goal setting, efforts, and information disclosure, we were selected as an “A List” company, the highest evaluation, in the 2022 CDP climate change research and countermeasures category for two consecutive years from CDP*5, a non-profit organization that conducts international environmental research and information disclosure.
- *1 GHG: Greenhouse Gas
- *2 The Paris Agreement: A legally binding international treaty on climate change for limiting global warming to well below 2°C preferably to 1.5°C, compared to pre-industrial levels.
- *3 SBT (Science Based Targets): A greenhouse gas emission reduction target set by a company with a target year of 5 to 15 years, which is consistent with the level required by the Paris Agreement.
- *4 TCFD recommendations: Disclosure of climate-related information with a financial impact on the Company
- *5 CDP: An international non-governmental organization (NGO) established in the UK that promotes environmental information disclosure
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 since 2016 we undergo independent assurance checks of our environmental performance data. The data indicated with for the year of 2022 have been assured by KPMG AZSA Sustainability Co., Ltd. Chugai will continue to disclose highly transparent and reliable information, make effective use of third-party assurance, and continue ongoing improvements in our environmental management.
Scope 1, Scope 2 and Scope 3 emissions were 50,265 tons, 11,940 tons and 2,251,205 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. Scope 2 emissions are indirect GHG emissions associated with the use of energy supplied by others (such as electricity). In 2022, we promoted the conversion to sustainable electricity provided by electric power companies at domestic plants and research laboratories that consume high levels of electricity, and reduced Scope 2 emissions by 82% compared to the base year. Scope 3 emissions are all other indirect GHG emissions from activities of the organization other than Scope 1 and 2. In 2022, category 1 (purchased goods and services) accounted for 74% of Scope 3.
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 2022.
CO2 emissions from energy consumption, by function (Scope 1 and 2)
Manufacturing plants are the function with the highest emissions at 36,340 tons, followed by laboratories at 19,113 tons, branch offices at 2,422 tons and the head office at 231 tons. Total emissions from research, production and sales sites overseas totaled 3,238 tons.
CO2 emissions from energy consumption by function (Scope 1 and 2)
CO2 emissions from energy consumption by energy type (Scope 1 and 2)
The energy type with the largest volume of emissions is city gas at 47,731 tons, followed by electricity at 10,597 tons, gasoline at 1,382 tons, heat at 1,343 tons, diesel at 182 tons, LPG at 70 tons and fuel oil at 39 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 46% from the base year level to 61,344 tons. Scope 2 emissions decreased by 82% from the base year level. This was achieved by factories and research laboratories that consume a lot of electricity starting in 2021 to switch to sustainable electricity provided by electric power companies, switching to 100% sustainable electricity at the Fujieda Plant from August 2022, and the utilization of purchased Green Electricity Certificates and Non-Fossil Fuel Certificates. With this, all factories in Japan have achieved sustainable electricity conversion. In addition, we have started to switch to sustainable electricity at sites other than factories and research laboratories, and from April 2022, almost all electricity on floors contracted by our company in the head office building has been practically converted to sustainable.
CO2 emission from energy consumption (Scope1 and 2)
Change in Scope 3 Emissions
Scope 3 emissions were 2,251,205 tons, 2.3 times the base year. In 2022, Category 1 (purchased goods and services) increased from 833,110 tons in the base year to 1,670,420 tons, a 2.0-fold increase, due to an increase in production by the development of new products. In addition, Category 2 (capital goods) increased from 69,472 tons in the base year to 513,271 tons with the completion of Chugai Life Science Park Yokohama in October 2022. We believe that it is important to take action to reduce CO2 emissions throughout the supply chain in order to realize a sustainable society, and to achieve the goal of reducing CO2 emissions by 30% compared to the base year by 2030, we will encourage suppliers who have not set CO2 emission reduction targets to set and promote reduction targets.
CO2 emission (Scope 3)
- * There is an error in the historical data, and the values for 2019-2021 have been corrected.
(2019: Incorrect) 897t-CO2 → Correct) 966t-CO2, 2020: Incorrect) 958t-CO2 → Correct) 1,050t-CO2, 2021: Incorrect) 1,120t-CO2 → Correct) 1,228t-CO2)
Reducing Energy Consumption
In 2022, energy consumption was 2,301 GJ and energy consumption per total floor area was 5.3 GJ/m2, a decrease of 32% compared to the base year. This is because the Chugai Life Science Park Yokohama, which was completed in 2022, and the Kamakura Research Laboratories and Fuji Gotemba Research Laboratories, which are scheduled to close in 2023, are both in operation, resulting in a larger total floor area.
In order to achieve the reduction of energy consumption per total floor area by 5% in 2025 and 15% in 2030 compared to 2019 (mid-term environmental target 2030), we are promoting efforts to reduce energy consumption through several actions such as introducing high energy efficiency equipment, fuel conversion, introduction of eco-cars, and energy-saving campaigns in our business activities.
Discontinuation of / Conversion from Fluorocarbons
In order to achieve reduction of usage of halogenated hydrocarbons by 25% in 2025 and 100% in 2030 compared to 2020 (mid-term environmental target 2030), we identified issues such as the need to find and verify alternative technologies. To solve these issues, we are promoting efforts to establish specific action plans such as installation of natural refrigerants equipment when constructing new buildings or renewing equipment. At Chugai Life Science Park Yokohama’s Welfare Building (Nijikake Nursery School), which was completed in October 2022, after repeated discussions with an air conditioning equipment company, it became the first in the Chugai Group to use CO2 refrigerant, a natural refrigerant, for room air conditioning. In addition, in the research building of Chugai Life Science Park Yokohama, we have, with the cooperation of manufacturers, introduced centrifuges and ice machines that use natural refrigerants. Going forward, we will continue to upgrade to equipment that uses natural refrigerants, actively promote technological developments with construction companies and equipment/device manufacturers, promote conversion to natural refrigerants with low greenhouse effect, and work on climate change countermeasures.
In 2022, holding amount of fluorocarbons was 53,529 tons, an increase of 9,215 tons from 2021. This is because the Chugai Life Science Park Yokohama, which was completed in 2022, and the Kamakura Research Laboratories and Fuji Gotemba Research Laboratories, which are scheduled to close in 2023, are both in operation.
We also strictly monitor the amount of fluorocarbons used to refill equipment (e.g. leaks, etc.). In 2021, 1,824t-CO2e leaked due to aging equipment, etc., but in 2022, due to equipment renewal, etc., that decreased to 773t-CO2e. We will continue to optimize our voluntary management by gaining an understanding of the amount of fluorocarbons leaked.
Please see the following page for details on the use of CO2 refrigerant in room air conditioning.
Adaptation of a natural refrigerant air-conditioning system in the Welfare Building of Chugai Life Science Park Yokohama, a new research site (Toward 100% reduction in fluorocarbon usage by 2030 (mid-term environmental goal))
Halogenated hydrocarbons Used to Fill/Refill Equipment
Status of Introduction of Eco-friendly cars
Chugai, in the mid-term environmental goals 2030, moved ahead with the introduction of eco-cars, such as hybrid cars and highly fuel-efficient vehicles, which it has been working on since 2003, and set a goal to reduce the total fuel consumption of commercial vehicles by 35% by 2025 and by 75% by 2030 compared to 2019. In order to achieve these goals, we consider specific action plans such as the introduction of electric vehicles.
At the end of 2022, the introduction rate of eco-friendly cars for MR vehicles was 94%, and the total fuel consumption was 22,770 GJ, a decrease of 47.6% compared to the base year. Due to the gradual recovery of sales activities in 2022, which had been restricted due to the COVID-19 pandemic, it has increased by 8% from 2021.
Change in total fuel consumption of MR vehicles