*1 GHG: Greenhouse Gas

GHG emissions in 2023

Scope 1, Scope 2 and Scope 3 emissions were 47,991 tons, 3,458 tons and 1,136,969 tons, respectively. Scope 1 emissions are CO₂ emitted directly by the Group. These 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 CO₂ emissions associated with the use of energy supplied by others (such as electricity). We have promoted the conversion to sustainable electricity, resulting in zero Scope 2 emissions domestically in 2023. Scope 3 emissions are all other indirect CO₂ emissions from activities of the organization other than Scope 1 and 2. In 2023, Category 1 (Purchased goods and services) accounted for 87% 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 in Sustainability Policy and Data 2023.

2023 CO₂ emissions from energy consumption, by function (Scope 1 and 2)

Manufacturing plants are the function with the highest emissions at 34,013 tons, followed by research laboratories at 11,569 tons, branch offices at 1,589 tons and the head office at 17 tons. Total emissions from research, production and sales sites overseas totaled 3,600 tons.

2023 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 45,527 tons, followed by electricity at 2,007 tons, gasoline at 1,545 tons, heat at 1,451 tons, diesel at 200 tons, LPG at 38 tons and fuel oil at 19 tons.

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

Scope 1 and Scope 2 emissions from energy consumption decreased by 55% from the base year level to 50,787 tons. In terms of Scope 2 emissions, in 2021 factories and research laboratories that consume a lot of electricity started to switch to sustainable electricity provided by electric power companies, and by utilizing Non-Fossil Fuel Certificates at our head office and branches, we have achieved 100% sustainable electricity use across the entire Group in Japan. Overseas business sites are also promoting the use of sustainable electricity, and the Chugai Group as a whole is expected to achieve a sustainable electricity ratio of 100% as stated in its Mid-term Environmental Target 2030. In order to achieve our Mid-term Environmental Target 2030, we also need to reduce direct CO₂ emissions from fuel use (Scope 1), so we are considering conversion of existing facilities as well as facility consolidation and redesign.
To address the global social issue of climate change, we will look further ahead and actively contribute to solving social issues by setting and implementing a long-term goal of zero CO₂ emissions by 2050.

For more information on the Mid-term Environmental Target 2030, please click here.

Change in Scope 3 Emissions

* Category 2: There is an error in the tabulation of consumption tax rates for capital goods and the values for 2019-2022 have been corrected. (2019: incorrect) 69,472 t-CO₂ →correct) 67,542 t- CO₂, 2020: incorrect) 97,997 t- CO₂ →correct) 93,543 t- CO₂, 2021: incorrect) 63,723 t- CO₂ →correct) 60,827 t- CO₂), 2022: incorrect) 513,271 t- CO₂ →correct 489,941 t- CO₂)

Scope 3 emissions were 1,136,969 tons, 1.2 times the base year. In Category 1 (Purchased goods and services), there was a 41% reduction compared to the previous year, due to a decrease in the amount of goods and services purchased and a reduction in CO₂ emissions by suppliers. In addition, in Category 2 (Capital goods), there was a significant increase in 2022 with the completion of the Chugai Life Science Park Yokohama, but this increase was reduced in 2023, resulting in an 84% decrease from the previous year. We believe that it is important to take action to reduce CO₂ emissions throughout the supply chain in order to realize a sustainable society. To this end, we have set a CO₂ emissions reduction target of 30% by 2030, and we will encourage suppliers who have not set CO₂ emission reduction targets to set and promote them.

Change in energy consumption

Energy use in 2023 was 2,214 TJ, and energy consumption per total floor area was 6.2 GJ/m², a 14% decrease from the base year and a 27% increase from the previous year. In 2022, the newly completed Chugai Life Science Park Yokohama and the Kamakura and Fuji Gotemba Laboratories, which are scheduled to be closed, were operating simultaneously, resulting in an increase in total floor area, which in turn reduced energy consumption per total floor area. On the other hand, the total floor area decreased in 2023 due to the closure of the Kamakura and Fuji Gotemba Research Laboratories, but energy consumption per total floor area increased because the respective laboratories were in operation until June and July 2023. 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.

Change in fluorocarbon holdings and supplementation due to leakage in 2023

In 2023, fluorocarbon holdings were 43,845 tons, a decrease of 9,684 tons from 2022. This is attributed to the closure of the Kamakura and Fuji Gotemba Research Laboratories.
In order to achieve a 100% reduction in usage of fluorocarbons by 2030, we are promoting initiatives with specific action plans, such as verification of alternative technologies, and installation of natural refrigerants when constructing new buildings or renewing equipment.
For example, the Welfare Building (Nijikake Nursery School) at Chugai Life Science Park Yokohama was the first in the Chugai Group to install a room air conditioning system that uses CO₂ refrigerant, a natural refrigerant, after repeated discussions with an air conditioning equipment company. 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.

Moreover, as a measure against leakage due to aging equipment and other factors, we have been working to upgrade our equipment starting in 2022. As a result, the amount of fluorocarbons used to refill equipment in 2023 (amount of fluorocarbons leakage) could be reduced to 476 t-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.
New Research Center “Chugai Life Science Park Yokohama” adopting Natural Refrigerant Air Conditioning System in the Welfare Bldg. (Medium-Term Environmental Target: Reduce fluorocarbons usage by 100% by 2030)

Change in total fuel consumption of commercial vehicles

At the end of 2023, the introduction rate of eco-friendly cars for commercial vehicles was 93%, and the total fuel consumption was 23,021 GJ, a decrease of 45% compared to the base year. Due to the gradual recovery of sales activities, which had been restricted due to the COVID-19 pandemic, it has increased by 4% from 2022. The Group will further strengthen its efforts to introduce eco-friendly vehicles such as hybrid cars and highly fuel-efficient vehicles, and will consider the introduction of electric vehicles and other measures to reduce the total fuel consumption of commercial vehicles by 75% by 2030.

• TCFD^*1 Disclosure Based on Proposals: Analysis as of 2023
• SBT^*2 Certified in November 2021
• CDP^*3 Climate Change and Water Security A-List Selection

• *1 TCFD: Disclosure of climate-related information that has a financial impact on the company
• *2 SBT (Science Based Targets): Greenhouse gas emission reduction targets set by companies for the next five to 15 years, consistent with the levels required by the Paris Agreement
• *3 CDP: An international non-governmental organization (NGO) established in the United Kingdom to promote the disclosure of environmental information