Fiscal 2019 CSR Activity Report- Safety, Accident Prevention, and Environmental Preservation

Energy Saving and Curbing Climate Change

Environment

Addressing Climate Change

With a view to helping realize sustainable, low-carbon societies, Toray Group has been pursuing initiatives for reducing greenhouse gas emissions. Toward this end, the Group is working to reduce CO2 emissions and save energy during manufacturing by improving manufacturing processes, increasing utilization of renewable energy and reducing coal consumption in accordance with its Fifth Medium-Term Environmental Plan launched in fiscal 2016 and the Toray Group Sustainability Vision announced in July 2018.

Toray Industries’ Energy Saving Activities

Toray Industries, Inc. has set a goal of reducing its per-unit energy consumption1 by 2% annually. In fiscal 2019, the Company’s energy consumption was down 4.0% year-on-year due mainly to a decrease in production volumes at some plants. Meanwhile, per-unit energy consumption was up 3.1 % year-on-year (14.1% reduction compared with the baseline year of fiscal 1990). This was due to an increase in the fixed energy ratio unrelated to production, stemming from lower production volumes.

  1. 1 Energy consumption per converted production volume
Energy Consumption and Per-unit Energy Consumption Index (Toray Industries, Inc.)
Energy Consumption and Per-unit Energy Consumption Index (Toray Industries, Inc.)

Review for energy saving diagnostics outside Japan(Toray Textiles(Thailand)Public Company Limited)Review for energy saving diagnostics outside Japan(Toray Textiles(Thailand)Public Company Limited)

Toray Group organizes energy saving teams to help carry out annual energy saving diagnostics at plants in Toray Industries and its group companies around the world. In fiscal 2019, these activities were conducted at 6 of Toray Industries’ plants, along with 4 group company plants at in Japan and one outside Japan. Thanks to these proactive energy-saving initiatives, the Group reduced greenhouse gas emissions by about 31,000 tons-CO2 equivalent.

Toray Industries’ Efforts to Fight Climate Change

Reduction of greenhouse gas emissions per unit of sales

■Reporting scope
Toray group (Japan)
■Target in Fiscal 2019
At least 15% lower than fiscal 1990

Result in fiscal 2019

32%

Toray Industries systematically works to reduce greenhouse gas emissions, with the goal of maintaining greenhouse gas emissions at least 15% lower than the 1990 level by 2020. In fiscal 2019, the Company’s CO2 emissions decreased by 95,000 tons year-on-year. Greenhouse gas emissions were down 4.8% year-on-year at 1.86 million tons, which was 27.1% below the 1990 level, continuing to meet the reduction target (15% below fiscal 2013 level).
Moving forward, Toray Industries will endeavor to meet its reduction targets despite the higher production volumes projected due to business growth.

Greenhouse Gas Emissions (Toray Industries, Inc.)
Greenhouse Gas Emissions (Toray Industries, Inc.)

Related Information

Toray Industries has obtained third-party assurance of its greenhouse gas emissions from Lloyd’s Register Quality Assurance Limited (LRQA) for Scope 1 (direct emissions from plants, offices, vehicles, etc. owned by the Company), Scope 2 (indirect emissions from the generation of energy), and Scope 3 (other indirect emissions). 2
Scope 1: 1,560,000 ton
Scope 2: 300,000 ton
Scope 3: 860,000 ton

  1. 2 Scope 3 emissions are calculated for Category 2 (capital goods), Category 3 (fuel and energy-related activities not included in Scope 1 or Scope 2), and Category 4 (upstream shipping and distribution).

Installing Renewable Energy Systems

A solar power generation system of Penfabric Sdn. Berhad (Malaysia)A solar power generation system of Penfabric Sdn. Berhad (Malaysia)

Toray Group is systematically installing renewable energy systems. Toray Industries installed and started to operate a small hydroelectric system that generates power using the incoming industrial water pressure in Nagoya Plant in fiscal 2016, and installed solar power generation systems in Seta Plant in fiscal 2017, Nagoya Plant (Toray Engineering Central Co., Ltd.) and Penfabric Sdn. Berhad (Malaysia) in fiscal 2018. Those systems have been operating. In addition, the Tokai Plant of Toray Industries began co-combusting sludge fuel, which is carbon neutral, as boiler fuel from fiscal 2017.

Renewable energy generated in fiscal 2019
11,149 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 Engineering Co., Ltd.
  • Toray Engineering Central Co., Ltd.
  • Toray Engineering West Co., Ltd.
  • Toray Construction 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 Polytech (Nantong) Co., Ltd.
  • Toray Advanced Materials Korea Inc.

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

Toray Industries and its group companies in Japan are addressing climate change under a goal of reducing emissions by 15% on a per-unit-of-sales basis by fiscal 2020 compared to the fiscal 1990 level.
Greenhouse gas emissions were down 5.6% in fiscal 2019 compared to the previous fiscal year. Greenhouse gas emissions per unit of sales improved by 2.1 points compared to the previous fiscal year and were 31.8% below the base year.

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

Greenhouse Gas Emissions (Toray Group)

Fiscal 2019 greenhouse gas emissions for Toray Group worldwide were 5.76 million tons-CO2 equivalent, an increase of 2.3% compared to the previous year. All Toray Group manufacturing companies and plants will continue to work to achieve the Group's goal of reducing the per-unit energy consumption rate by 2% each fiscal year.

Greenhouse Gas Emissions (Toray Group)
Greenhouse Gas Emissions (Toray Group)

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.