Environment

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Environmental Conservation

Through its business activities, the Tosoh Group contributes to the development of a sustainable society in which the environment, economy and society are in harmony. A large part of that contribution involves environmental conservation activities.

Environmental Conservation Promotion System

Tosoh pursues environmental conservation under its Responsible Care (RC) initiative. Policies governing its activities on behalf of the environment are formulated by the Environment, Security and Quality Control team at Tosoh headquarters, which also monitors the Tosoh Group’s implementation of conservation initiatives. 

The Nanyo and Yokkaichi Complexes and the Tokyo Research Center then devise annual activity policies and targets that reflect the conditions and issues at each site. They subsequently undertake environmental conservation activities in accordance with their policies and targets and, more, with Tosoh Group policies.

The Environment, Security and Quality Control team holds regular, annual meetings for Tosoh Group companies that address environmental conservation. The meetings are an opportunity to exchange information and opinions. Team members also regularly visit Tosoh Group companies to show support for their environmental conservation activities by conducting site inspections and exchanging views.

Input and Output

The Tosoh Group is reducing the environmental impact of its products throughout their life cycles. It even manufactures its products in a way that makes the most effective use of limited resources, or “inputs”—such as fuel, raw materials, and water resources—and that minimizes waste “outputs” and the extent of its operations’ environmental loading on air and water. 

Industrial Waste

The Tosoh Group promotes the three Rs—reduce, reuse, and recycle—chiefly through resource recycling. Tosoh has set a target to reduce its amount of final waste disposal about 70% compared with its fiscal 2000 level for final waste disposal. This target aligns with the  fourth target under Keidanren’s Voluntary Action Plan for Establishing a Sound Material-Cycle Society.

Tosoh's final disposal volume for fiscal 2020 was 919 metric tons, well under the target volume of 1,515 metric tons. Group companies also work hard to manage and dispose of waste.

Equipment Disposal

The Tosoh Group’s domestic companies are proceeding with their disposal of equipment containing polychlorinated biphenyl (PCB) in accordance with Japan’s PCB Special Measures Law.

Tosoh Group companies in Japan completed their disposal of equipment with high concentrations of PCBs, including transformers, in fiscal 2018. All of their other equipment with lower levels of PCB is stored in a designated area. Equipment of mid-level PCB concentrations will be disposed of by fiscal year 2021. And equipment containing low concentrations of PCBs was to be disposed of by fiscal 2020, with the remainder slated for systematic disposal by fiscal 2027.

Designated Substances Emission-Reduction Measures

Tosoh Group companies in Japan are striving to reduce their emissions of chemical substances subject to Japan’s Pollutant Release and Transfer Register (PRTR) system by setting voluntary targets. This system aligns with Japan’s Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (Law concerning Pollutant Release and Transfer Register), which governs materials that require movement and discharge quantity reporting.

In line with the PRTR system, the chlorobenzene treatment facility completed at the Nanyo Complex in fiscal 2019 operated smoothly. Tosoh's emissions in fiscal 2020 amounted to 385 metric tons. This was below its target of 424 metric tons or less and a reduction of more than 30% from the complex’s chlorobenzene emissions in fiscal 2016.

Total emissions by the Tosoh Group’s domestic companies in fiscal 2020 amounted to 133 metric tons. This was a decrease of 2 metric tons from fiscal 2019.

Atmospheric Preservation

Tosoh Group domestic companies monitor their emissions of air pollutants in accordance with Japan’s Air Pollution Control Act. Those companies did not exceed any legal regulatory or agreed-to values in fiscal 2020 for such pollutants as sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter, and volatile organic compounds (VOCs).

In fiscal 2020, Tosoh emitted 1,066 metric tons of VOCs, a reduction of approximately 65% compared with fiscal 2001’s 3,044 metric tons. Tosoh Group companies in Japan emitted 114 metric tons of VOCs, down 17% from fiscal 2019.

Tosoh is also taking action regarding equipment that uses chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) as refrigerants. They are acting in this regard based on environmental laws and regulations, such as Japan’s Ozone Layer Protection Act, and internal administrative guidelines and global trends.

Actions in this regard center on the use of CFC substitutes, for which the companies calculate the amount of leakage and report it to the government in accordance with Japan’s Fluorocarbons Emission Restraining Law. The companies have established control targets and use detectors to isolate leaks for repair at an early stage to minimize leakage.

Water Environment Preservation

The companies within the Tosoh Group in Japan monitor their emissions of COD (chemical oxygen demand), nitrogen, phosphorus, and other pollutants in wastewater based on Japan’s Water Pollution Control Act. In fiscal 2020, they experienced one instance where the quality of a certain volume of water exceeded regulatory values established in a prefectural ordinance.

Water is a resource indispensable to the Tosoh Group’s operations worldwide. Tosoh Group members, therefore, each make every effort to maintain and improve the quality of their wastewater for reuse in their operations and to use the water resources in the vicinity especially of manufacturing complexes sustainably. They also make effective use of water input.

Biodiversity Preservation

The preservation of biodiverse ecosystems is an important issue that needs to be addressed by society as a whole. Tosoh understands the relationship between its business activities and biodiversity.

Tosoh Group chemical products have the potential to significantly adversely affect ecosystems if improperly managed throughout their entire life cycle. The manufacture of chemical products uses energy, mineral, and water resources whose extraction from the earth can damage ecosystems. And then there are the emissions from chemical manufacturing processes and, of course, the end-of-life disposal of chemical products, all of which have the potential to harm ecological systems.

Every company in the Tosoh Group seeks to minimize its footprint on ecosystems to ensure that the biodiversity necessary for a sustainable world thrives. Each company takes into account the nature of its business and of where it conducts its business activities and works to comply with all environmental laws and regulations.

* For more details, please see Tosoh Report 2020 Key Data and References in Downloads & FAQs.

Response to Climate Change

Climate change is one of the greatest concerns globally. And the Tosoh Group recognizes that contributing to the reduction of greenhouse gas (GHG) emissions is critical, for the planet and for the Tosoh Group’s medium- to long-term growth. It is, therefore, working to raise the efficiency of its energy usage and to develop technologies to facilitate its use of CO₂.

CO₂ Reduction Promotion System

Tosoh iinitiatives to combat climate change are driven primarily by its CO₂ Reduction and Effective Use Promotion Committee and its Central Energy Management Committee.

We also collect information on social trends, regulatory requirements, and risk management related to climate change and share this information with Tosoh Group companies. Matters related to these activities are reported to the Board of Directors for approval as appropriate and instructions are received as necessary.

CO₂ Reduction and Effective Use Promotion Committee

The CO₂ Reduction and Effective Use Promotion Committee is chaired by the director in charge. It promotes our reduction and use of energy-derived CO₂ emitted by our thermal power generation plants. The committee’s activities include identifying issues, formulating policies, conducting investigations and analyses, and managing progress in our reduction of energy-derived GHG emissions, including shifting to alternative fuels and recovering and using CO₂ by converting it into raw materials.

Central Energy Management Committee

Our Central Energy Management Committee is chaired by the general manager of Production and Technology Planning and works to achieve comprehensive energy conservation. This includes the improvement of energy consumption units for production and transport and the promotion of the use of alternative energy sources. Specifically, the committee discusses and determines all matters, including policies on initiatives, related to energy management, from medium-term and annual plans and the status of compliance to the methods of assessing the status of compliance.

CSR Advancement Liaison Meeting

The Tosoh Group CSR Promotion Team serves as the secretariat to the two committees cited above, and through the CSR Advancement Liaison Meeting, it shares information on climate-related social trends and exchanges opinions with those committees on the compilation of group-wide greenhouse GHG emissions.

Reduction Targets and Fiscal Year 2020 Results

Tosoh participates in the Low Carbon Society Action Plan of the Japan Chemical Industry Association (JCIA). In March 2019, the JCIA revised the CO₂ emission reduction targets for the Japanese chemical industry. And we, in compliance, target a 6% reduction in our business-as-usual (BAU; production x base year 2014 CO₂ basic unit) energy-derived CO₂ emissions by fiscal year 2026. We are investing in equipment and examining fuel conversion and energy conservation technologies to achieve this aim.

Tosoh utilizes an internal carbon pricing system to promote capital investment that contributes to energy conservation.

Energy Consumption Index of Energy Used

Tosoh Corporation’s fiscal 2020 energy unit consumption index was 96.4% compared with fiscal 2010. This marked a decrease of 1.5 percentage points from fiscal 2019. The company has implemented an energy reduction plan, including energy efficiency improvements, at the ethylene plant at the Yokkaichi Complex.

Tosoh Group Greenhouse Gas Emissions

GHG emissions for Tosoh Corporation in fiscal year 2020 totaled 7,637 kilotons-CO₂e, a decrease of 81 kilotons- CO₂e compared with fiscal year 2019 due to progress in the energy reduction plan. The company is also on target to reduce its energy-derived CO₂ emissions, as it is furthering its capital investment in fuel conversion and energy conservation as planned. We are on track to reduce CO₂ emissions equivalent to 3.2% of the 6.0% reduction in BAU emissions in fiscal 2026.

The Tosoh Group’s GHG emissions decreased 0.51% compared with fiscal 2019.

Tosoh Group Greenhouse Gas Emissions by Scope

To ascertain greenhouse gas emissions across its supply chain, the Tosoh Group calculates the scope of the emissions. 

Calculated Values for Scope 3 Emissions (kilotons-CO₂e)

Scope 1: Direct emissions from fuel combustion and plant operation by Tosoh
Scope 2: Indirect emissions from electricity and heat, etc., supplied by other companies
Scope 3: Other indirect emissions, including emissions from the excavation and transportation of raw fuels and transport in general, the use and disposal of products, and employee commuting and business trips*

*Figures for Scope 3 emissions for fiscal 2018 have been revised following a review of the accounting methods used.

Before revision, Category 1: 2,687 kilotons-CO₂e; Category 3: 1,503 kilotons-CO₂e; Category 11: 8 kilotons-CO₂e; Category 12: 1,870 kilotons-CO₂e, such that the Scope 3 total was 6,550 kilotons-CO₂e
After revision, Category 1: 2,395 kilotons-CO₂e; Category 3: 1,133 kilotons-CO₂e; Category 11: 18 kilotons-CO₂e; Category 12: 1,886 kilotons-CO₂e, such that the Scope 3 total is 6,051 kilotons-CO₂e

*Greenhouse gas emissions are calculated using Japan’s Mandatory Greenhouse Gas Accounting and Reporting System. The data presented here includes emissions from the former NPU for the period from fiscal 2010 to September of fiscal 2015, before NPU’s merger with Tosoh. Data for fiscal 2018 does not include emissions from the former Tosoh F-Tech, Inc. Data to fiscal 2018, moreover, is for CO₂ and N₂O emissions only, whereas data for fiscal 2019 onward represents the total of CO₂, N₂O, CH₄, SF₆, and HFC emissions.

Logistics-related CO₂ Emissions and Basic Energy Unit

Tosoh’s CO₂ emissions from logistics fell 3.3% in fiscal 2020 compared with fiscal 2019 owing to an improvement in energy use, in kilotons. The logistics basic energy unit—energy consumption converted to crude oil (kiloliter) / transport tonne-kilometers (one million tonne-kilometers)—was 18.6, unchanged from fiscal 2019.

Tosoh is working to reduce its CO₂ emissions by improving its energy efficiency through a modal shift in transport that sees it promoting marine and rail transport. It is also improving its fuel efficiency.

*The logistics basic energy unit = energy consumption converted to crude oil (kiloliter) / transport ton-kilometers (one million ton-kilometers).

Reducing CO₂ Emissions by Licensing Energy-saving Technologies

Tosoh has developed energy-saving technologies for processes in the manufacture of caustic soda and vinyl chloride monomer (VCM). We license these technologies to businesses overseas. Their utilization of these technologies contributes to reducing CO₂ emissions from their manufacturing plants.

The cumulative reduction in CO₂ emissions through fiscal 2020 was 9.256 million metric tons.

Reductions in CO₂ Emissions by Department

At Tosoh, each department is working to reduce CO₂ emissions through a variety of initiatives, including the

• installation of a gas turbine at the Yokkaichi Complex and improved the efficiency of the naphtha-cracking furnace,
• use biofuels in production activities, and
• use of waste at the Nanyo Complex cement plant

Carbon Offset

A highlight among our carbon offset initiatives is a kelp bed along the seawall at Tosoh Hyuga Corporation, which is headquartered in Hyuga City, Miyazaki Prefecture, Japan. That kelp bed absorbs and retains greenhouse gases, thereby helping to mitigate climate change and foster the diversity and well-being of sea life in its vicinity.

Technology Study on the Recovery and Use of CO₂ Emitted by Power Plants

Tosoh is studying technologies for the use of CO₂. Specifically, we are investigating technologies to separate and recover the CO₂ emitted from power plants and to convert the recovered CO₂ into raw materials for such chemical products as polyurethane.

We have carried out some of these studies in collaboration with research institutes and universities. We are, for example, participating in the leading research program of Japan’s New Energy and Industrial Technology Development Organization (NEDO).

NEDO has adopted the theme of CO₂ conversion to raw materials and separation and recovery technologies. And jointly with Japan’s National Institute of Advanced Industrial Science and Technology, Tosoh is studying the direct conversion of low-concentration CO₂ from exhaust gas into useful products. We are also conducting joint R&D with Kyushu University on energy-saving CO₂ capture technology using an innovative CO₂ separation membrane.

More recently, Keidanren, or the Japan Business Federation, has launched an initiative to promote innovation toward the realization of a decarbonized society, the main objective of the Paris Agreement. Tosoh has endorsed Keidanren’s Declaration on Challenge Zero and has made public the initiatives that the company is pursuing to meet that challenge.

Endorsement of the Task Force on Climate-related Financial Disclosure

In November 2019, Tosoh expressed support for the recommendations of the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD). As such, the Tosoh Group will openly disclose information in accordance with the recommendations.

The TCFD provides a framework for the disclosure of information useful to understanding climate-related corporate risks and opportunities. And the Tosoh Group is assessing the potential financial impact on its members of such risks and opportunities through scenario analysis in accordance with the TCFD recommendations

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