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

Conserving Energy and Reducing Greenhouse Gas Emissions

Initiatives for Reducing Greenhouse Gas Emissions

Seeking to help build sustainable, low-carbon societies, Toray Group pursues initiatives for reducing greenhouse gas emissions. In fiscal 2016, the Group established the Fifth Medium-Term Environmental Plan. 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.

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.

Toray Industries’ Energy Conserving Activities

Toray Industries, Inc. has set a goal of reducing its per-unit energy consumption2 by 2% annually. In fiscal 2020, the Company’s energy consumption was down 9.3% year on year due especially to a decrease in production volumes, mainly as a result of the COVID-19 pandemic. Meanwhile, per-unit energy consumption was up 4.6 % year-on-year. This was due to an increase in the fixed energy ratio unrelated to production, stemming from lower production volumes.
However, per-unit energy consumption was down 10.2% compared with fiscal 1990, the baseline year set for reduction of per-unit energy consumption in the Fifth Medium-Term Environmental Plan.

  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

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 2020, these activities were conducted at three of Toray Industries’ plants, with some activities conduct via web conferencing due to the COVID-19 pandemic. Thanks to these proactive energy-conserving initiatives, the Group reduced greenhouse gas emissions by about 6,000 tons-CO2 equivalent.

Toray Industries’ Efforts to Reduce Greenhouse Gas Emissions

Toray Industries has systematically worked to reduce greenhouse gas emissions, with the goal of maintaining absolute greenhouse gas emissions at least 15% lower than the 1990 level by 2020, in accordance with the Fifth Medium-Term Environmental Plan.
In fiscal 2020, the Company’s CO2 emissions decreased by 188,000 tons-CO2 equivalent year on year. Greenhouse gas emissions were down 10.9% year on year at 1.66 million tons-CO2 equivalent, which was 35.0% below the 1990 level, continuing to meet the Fifth Medium-Term Environmental Plan’s reduction target.

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).4
Scope 1: 1,402,697 ton
Scope 2: 254,742 ton
Scope 3: 770,949 ton

  1. 4 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).

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

Toray Industries and its group companies in Japan are addressing climate change by achieving the goal, set out in the Fifth Medium-Term Environmental Plan, of reducing greenhouse gas emissions per unit of sales revenue by 15% or greater by fiscal 2020 compared to fiscal 1990.
Greenhouse gas emissions were down 10.4% in fiscal 2020 compared to the previous fiscal year. Greenhouse gas emissions per unit of revenue worsened by 3.1% compared to the previous fiscal year, but were still 29.7% below the baseline year established in the Fifth Medium-Term Environmental Plan.

Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue)5 (Toray Group in Japan)
Greenhouse Gas Emissions and Greenhouse Gas Emissions Per Unit of Net Sales (Per Unit of Revenue)5 (Toray Group in Japan)
  1. 5 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 (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 2020

13.7%

Fiscal 2020 greenhouse gas emissions for Toray Group worldwide were 4.97 million tons-CO2 equivalent, a decrease of 13.7% compared to the previous year, attributable mainly to a decrease in production caused by the COVID-19 pandemic and to the Group’s initiatives for reducing greenhouse gas emissions. Greenhouse gas emissions per unit of revenue were 13.7% below fiscal 2013, the baseline year established in the Group’s Sustainability Vision and CSR Roadmap 2022.
Amid the expectation of increased production with business expansion in the future, all Toray Group manufacturing companies and plants will continue to work to achieve the Group's goal of reducing its per-unit energy consumption by 2% annually, and strive to reduce greenhouse gas emissions group-wide, looking to achieve the fiscal 2030 reduction target set out in the Sustainability Vision.

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)

Installing Renewable Energy Systems

A solar power generation system of Toray Plastics Precision (Zhongshan) Ltd. (China)A solar power generation system of Toray Plastics Precision (Zhongshan) Ltd. (China)

Toray Group is systematically installing renewable energy systems. Toray Industries installed and started to operate solar power generation systems at Toray Sakai Weaving & Dyeing (Nantong) Co., Ltd. in fiscal 2019, and Toray Plastics Precision (Zhongshan) Ltd. in fiscal 2020. 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 2020
74,714 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 Fibers (Nantong) Co., Ltd.
  • Toray Sakai Weaving & Dyeing (Nantong) Co., Ltd.
  • Toray Plastics Precision (Zhongshan) Ltd.
  • Toray Advanced Materials Korea Inc.

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.

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