CSR Activity Report (CSR Guideline Activity Reports) - Safety, Accident Prevention, and Environmental Preservation

Conserving Energy and Reducing Greenhouse Gas Emissions

Seeking to help build sustainable, low-carbon societies, Toray Group pursues initiatives for reducing greenhouse gas emissions.
In the Toray Group Sustainability Vision announced in July 2018, the Group set out the target of reducing greenhouse gas emissions1 from production activities per unit of revenue by 30% compared with the baseline year of fiscal 2013 across the entire Toray Group worldwide as a quantitative target for fiscal 2030. In addition, in its CSR Roadmap 2022, the Group has set out an interim target of reducing greenhouse gas emissions per unit of revenue1 Group-wide by 20% compared with fiscal 2013. Toward this end, the Group is working to reduce CO2 emissions during manufacturing by conserving energy with improved manufacturing processes, increasing utilization of renewable energy, and reducing coal consumption.

  1. 1 Scope 1 and Scope 2 emissions.

Energy Conserving Activities

Toray Group sets annual energy-conserving targets for each company and plant, and promotes group-wide energy-conserving activities.
It also checks the progress of its energy-conserving measures on a monthly basis.
Toray Industries is promoting energy-conserving activities with a goal of reducing its per-unit energy consumption2 by 2% annually.
In fiscal 2021, production volumes recovered and energy consumption increased by 8.6% year on year.
Meanwhile, per-unit energy consumption improved 12.1% year on year due to production volume recovery. Moreover, per-unit energy consumption also improved 20.1% compared with fiscal 1990, the baseline year set for reduction of per-unit energy consumption.

  1. 2 Energy consumption per converted production volume
Energy Consumption and Per-unit Energy Consumption Index (Toray Industries, Inc.)3
Energy Consumption and Per-unit Energy Consumption Index (Toray Industries, Inc.)
  1. 3 The energy consumption shown in this graph does not include renewable energy.

Review of energy conserving diagnostics via web conferenceReview of energy conserving diagnostics via web conference

As part of its proactive energy-conserving activities, Toray Group organizes energy-conserving teams to help carry out annual energy-conserving diagnostics at plants in Toray Industries and its group companies around the world. In fiscal 2021, these activities were conducted at two of Toray Industries’ plants and at three group company plants in Japan. As a result, the Group reduced greenhouse gas emissions by about 3,400 tons-CO2 equivalent.

Greenhouse Gas Emissions (Toray Group)

Reduction of greenhouse gas emissions per unit of revenue (%)

■Reporting scope
Toray Group
■Target
At least 20% lower than fiscal 2013 (Fiscal 2022)

Result in fiscal 2021

20.6%

Toray Group's greenhouse gas emissions reduction target has been established in the CSR Roadmap 2022. The Group as a whole is implementing systematic reduction measures with the goal of achieving a 20% reduction of greenhouse gas emissions per unit of revenue by fiscal 2022, compared to fiscal 2013.
Overall greenhouse emissions for Toray Group in fiscal 2021 increased by 10.5% year on year to 5.49 million tons-CO2 equivalent due to a recovery in production volumes. On the other hand, in terms of per unit of revenue, the Group reduced emissions by 20.6% compared to fiscal 2013, which was set as the base year in the Sustainability Vision and CSR Roadmap 2022. This reduction was due to efforts to reduce greenhouse gas emissions (energy-conserving through process improvement, utilization of renewable energy, and reduction of coal use, etc.), as well as an increase in sales revenue. Accordingly, the Group was able to contain greenhouse gas emissions resulting from higher production volumes.

Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue) (Toray Group)
Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue) (Toray Group)

Note: Per unit of net sales until fiscal 2019, as Japanese GAAP was used until then, and per unit of revenue from fiscal 2020 onwards, as International Financial Reporting Standards (IFRS) have been adopted since then.

Greenhouse Gas Emissions Throughout the Value Chain of Toray Industries, Inc. (Scopes 1, 2, and 3)

Toray Industries calculates three types of emissions; Scope 1 (direct emissions from plants, offices, and vehicles, etc. owned by the Company), Scope 2 (indirect emissions resulting from the production of electricity and other energy consumed by the Company), and Scope 3 (other indirect emissions).

Annual Scope 1 and 2 Emissions (Toray Industries, Inc.)
Annual Scope 1 and 2 Emissions (Toray Industries, Inc.)

Toray Industries Scope 3 Emissions

(10,000 tons-CO2eq)

Category1: Purchased goods and services 231.5
Category2: Capital goods 9.2
Category3: Fuel and energy related activities 19.0
Category4: Upstream transportation and distribution 4.3
Category5: Waste generated in operations 2.0
Category6: Business travel 1.3
Category7: Employee commuting 0.2
Total 267.5

Note: Toray is currently working to identify and calculate Scope 3 emissions for all of Toray Group.

Related Information

Toray Industries has obtained third-party assurance of its greenhouse gas emissions from LRQA Limited for Scope 1 and 2 emissions, as well as for Scope 3 emissions (categories 2, 3 and 4).

Greenhouse Gas Emissions (Toray Industries and Its Group Companies in Japan)

Due to a recovery of production volumes, greenhouse gas emissions at Toray Industries and its group companies in Japan increased by 11.7% in fiscal 2021 compared to the previous fiscal year. Meanwhile, greenhouse gas emissions per unit of revenue improved by 7.9% compared to the previous fiscal year, due to efforts to reduce emissions and an increase in sales revenue. This resulted in a 26.4% reduction compared to fiscal 2013.

Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue) (Toray Group in Japan)
Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue) (Toray Group in Japan)

Note: Per unit of net sales until fiscal 2019, as Japanese GAAP was used until then, and per unit of revenue from fiscal 2020 onwards, as International Financial Reporting Standards (IFRS) have been adopted since then.

Installing Renewable Energy Systems

Toray Group is systematically installing renewable energy systems. It installed and started to operate solar power generation systems at Toray Plastics Precision (Zhongshan) Ltd. in fiscal 2020, as well as at Toray Industries Seta Plant No. 3 and at Toray Precision Co., Ltd. in fiscal 2021. In addition, the Tokai Plant of Toray Industries began co-combusting sludge fuel, which is carbon neutral, as boiler fuel from fiscal 2017.

  • Solar power equipment at Toray Industries Seta Plant No. 3Solar power equipment at Toray Industries Seta Plant No. 3
  • Solar power equipment at Toray Precision Co., Ltd.Solar power equipment at Toray Precision Co., Ltd.
Renewable energy generated in fiscal 2021
102,496 MWh

Toray Group has installed solar power generation facilities at the following plants:

Toray Industries, Inc.

  • Seta Plant
  • Ehime Plant
  • Mishima Plant
  • Okazaki Plant
  • Nasu Plant

Group companies in Japan

  • Toray Textiles, Inc.
  • Toyo Plastic Precision Co., Ltd.
  • Toray Advanced Film Co., Ltd.
  • Toray Fine Chemicals Co., Ltd.
  • Soda Aromatic Co., Ltd.
  • Toray Carbon Magic Co., Ltd.
  • Toray Construction Co., Ltd.
  • Toray Engineering Co., Ltd.
  • Toray Engineering Central Co., Ltd.
  • Toray Engineering West Co., Ltd.
  • Toray Precision Co., Ltd.
  • Toyo Jitsugyo Co., Ltd.

Group companies outside Japan

  • Toray Membrane USA, Inc.
  • Toray Plastics (America), Inc.
  • Thai Toray Synthetics Co., Ltd.
  • Penfabric Sdn. Berhad
  • Toray Fibers (Nantong) Co., Ltd.
  • Toray Sakai Weaving & Dyeing (Nantong) Co., Ltd.
  • Toray Plastics Precision (Zhongshan) Ltd.
  • Toray Advanced Materials Korea Inc.

Effective Use of 100% Renewable Electricity at the Headquarters of Toray Industries

Toray Industries signed a green power supply service4 agreement with Mitsui Fudosan Co., Ltd. for the Toray head office located in Tokyo's Nihonbashi Mitsui Tower.
By utilizing, through Mitsui Fudosan, the environmental value of the wind power facilities that Electric Power Development Co., Ltd. operates, Toray’s head office has effectively used 100% renewable energy since April 2022. On a global basis, the estimated annual reduction in greenhouse gas emissions should be around 1,500 tons-CO2.

  1. 4 Green power supply service: A unique service developed by Mitsui Fudosan that uses non-fossil fuel energy certificates to provide electricity to the tenants of its office buildings, which is effectively generated using 100% renewable energy.

Initiatives to Protect the Ozone Layer

Toray Industries ceased using chlorofluorocarbons (CFCs) in all manufacturing processes and stopped purchasing CFCs for use in refrigeration equipment in 1994. The Company finished upgrading refrigeration equipment using CFCs in fiscal 2019.

Related Information

For disclosure of information related to climate change in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), refer to Toray Group’s Approach to Climate Change.

Click here for the main initiatives for CSR Guideline 3, “Safety, Accident Prevention, and Environmental Preservation” in CSR Roadmap 2022.