Approach to Climate Change

The CO2 concentration in the atmosphere has been rising because of humans activities. Due to the greenhouse effect of CO2 and other greenhouse gases, the global temperature has increased by 0.3℃ to 0.6℃ in the past 100 years. Furthermore, it is predicted to increase by 1.4℃ to 5.8℃ in the next 100 years. Temperature rise causes climate change. There is serious concern that climate change will greatly affect the ecosystem and human lives through extreme weather, sea level rise, and increase in species extinction for example.
Reduction of greenhouse gas (GHG such as CO2) emissions and stopping temperature rises are a global issues. In 2020, the Japanese government declared that Japan will achieve greenhouse gas (GHG) reduction in 2030 by 46% compared to that in FY2013, then will achieve carbon neutrality* in 2050.

  • Carbon neutrality: Refers to the state of net zero CO2 emissions achieved through the use of renewable energies and the absorption of CO2 by forests and other means.


As a chemicals manufacturer, the Sanyo Chemical Group contributes to the carbon neutrality of society as a whole by reducing GHG emissions from its business sites and developing and offering products that help reduce CO2 emissions.

GHG emission reduction and energy savings

GHG emission status (FY2022)

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Emission / Absorption /
Product contribution classification
GHG type Emissions volume
(CO2 equivalent)
Emission Direct emissions from fuel oil combustion (Scope 1) 130 thousand tons
        Methane (generated from septic tanks) 10 tons
        Nitrous oxide (by-product of combustion) 36 tons
        other GHG(NF3、PFC、SF6 No emissions
        Fluorocarbons leakage from refrigerators and air conditioners 339 tons
Indirect emissions from the use of electricity, heat, or steam supplied by others (Scope 2) 125 thousand tons
Supply chain emissions (Scope 3) 2,513 thousand tons
Absorption Increase in forest CO2 absorption (based on tree thinning project) 11 tons
Product contribution CO2 reduction by using our products 493 thousand tons

Of GHG emissions from business sites, the main gases other than CO2 are methane from septic tanks, nitrous oxide, which is a combustion by-product, and fluorocarbons, which leak from refrigerators and other equipment (385 tons in total in CO2 equivalent). Emissions of these GHGs other than CO2 account for 0.15%, which is very small compared to the emissions of Scopes 1 and 2. Almost all emissions from the supply chain, including Scope 3, are CO2.

Click here for details of Scopes 1, 2, and 3

Midterm to long-term goals of greenhouse gas emission reduction plan (Scope1+Scope2)

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FY Target
(CO2 equivalent)
2013 309 thousand tons Base year
2030 154 thousand tons Intermediate target (50% reduction compared to base year)
2050 Net Zero Final target (carbon neutrality)
Energy consumption GHG emissions (Scope1+2)

Additionally, in FY2018, we changed the sales management policy to selectively sell high value added products and stop selling low value added products. As a result, domestic production volumes decreased have significantly decreased. Overseas, although the production volumes had been increasing until FY2020, the Chinese affiliate’s production volume has been decreasing particularly largely since FY2021, as a result the group-wide production volume decreased by 20% compared to FY2018. Because of the product mix change and production volumes decreases through sales policy changes and the CO2 reduction measures of by the Work Group, CO2 emissions in FY2022 were 255 thousand tons. In terms of energy consumption in crude oil equivalent, it is also decreasing for the same reasons.

Measures toward carbon neutrality

Most of the GHG emissions from business sites of our Group are CO2. Thus, we aim to achieve carbon neutrality across the supply chain by focusing on efficient utilization through the establishment and operation of an energy management system, and on energy transition (from fossil fuels to sunlight and hydrogen) in Scopes 1 and 2. Meanwhile, in Scope 3, we use low-GHG raw materials (that contribute to carbon neutrality, such as biomass raw materials) and develop technologies for energy conservation, GHG emissions reduction, and resource conservation when using our products and technologies that contribute to CCU (Carbon dioxide Capture and Utilization). The roadmap is shown on the page for information disclosure based on recommendations by the Task Force on Climate-related Financial Disclosure (TCFD).

Monozukuri Transformation (Manufacturing Innovation)

As part of the Reformation of Existing Business set out in the New Medium-Term Management Plan, we have been working to reform the operational process throughout the supply chain based on digital transformation (DX). The production and research teams work together to promote initiatives that lead to carbon neutrality, such as a fundamental review of the production process for existing products and the use of low-GHG raw materials.

Products using biomass

Bio-based raw materials (biomass*) are renewable and sustainable raw materials compared to petrochemical raw materials. Thus, petrochemical raw materials have been increasingly replaced by biomass raw materials. Basic chemicals, such as acrylic acid and ethylene glycol, have also been increasingly derived from biomass. Defossilization of raw materials (a shift to biomass) is expected to accelerate into the future. In fact, we have developed superabsorbent polymers, which have acquired the Biomass Mark, and polyethylene glycol, which has been certified under the ISCC system.

Click here for products using biomass

  • Biomass: A concept that represents the amount (“mass”) of biological resources (“bio”). Biomass refers to “renewable, bio-based organic resources excluding petrochemical raw materials.” Unlike CO2 released from the combustion of petrochemical raw materials, CO2 released from the combustion of biomass is CO2 absorbed from the atmosphere through photosynthesis during the growth process of living organisms. Thus, biomass is regarded as “carbon neutral” resources that do not emit additional CO2 into the atmosphere.

Support Initiatives

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Initiative Sponsoring organization
TCFD Task Force on Climate-related Financial Disclosure
Keidanren Challenge Zero Keidanren (Japan Business Federation)
GX League Ministry of Economy, Trade and Industry
2050 Zero CO2 Emissions from Kyoto Ordinance Kyoto City


Fluorocarbons were heavily used in the mid-20th century as refrigerants and solvents, but it became apparent that fluorocarbons were the causative substance for ozone depletion and were greenhouse gases. Today, substantial restrictions have been imposed on the use by various international agreements and laws, such as the Montreal Protocol.
In Japan, the Fluorocarbon Emissions Control Act was enacted in 2015. In this law, companies who use the air conditioners and refrigerators/freezers including fluorocarbons as a refrigerant are obliged to inspect the devices and report the fluorocarbons leak volume. Our domestic facilities own about 800 devices and annually inspect them in accordance with the law. The total of fluorocarbons leak volume level in FY2022 was 102 kg (of this amount, 20 kg was the leakage ozone depleting fluorocarbons), and this was 339 tons of CO2 equivalent.

Disclosure based on TCFD recommendations

As a chemical manufacturer, the Sanyo Chemical Group uses fossil fuels in its manufacturing processes for various products and emits CO2. For this reason, it focuses on reducing CO2 emissions from business sites, and aims to achieve carbon neutrality by developing and spreading the use of products that contribute to energy conservation and CO2 emissions reduction.
Considering that response to climate change is an important management issue, we showed support for the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) in December 2021.
Assessing the risks and opportunities that climate change may pose to Sanyo Chemical, we will proceed with initiatives based on our scenario analysis. We will actively work on initiatives across the Group toward a “50% reduction in CO2 emissions by 2030 (compared to the FY2013 level) and net zero by 2050,” which are the targets of our Sustainability Action Plan, while aiming to reduce emissions across the supply chain.
Recommendations by the Task Force on Climate-related Financial Disclosure (TCFD) require information disclosure regarding the governance, strategy, risk management, and metrics and targets of climate change. Our Group has been taking action in line with the TCFD recommendations.


Since FY2021, the Sustainable Management Committee (chairperson: President and CEO) has been in place to study appropriate response to issues that may pose management risks, including climate change, and to make decisions under the supervisory system of the Board of Directors. The committee discusses the response to TCFD recommendations and reports important matters to the Board of Directors.
The CSR Promotion Management Committee formulates and implements specific measures to reduce CO2 emissions. The committee builds systems and mechanisms and reports the status of CSR activities, which are conducted under the initiative of the committee, to the Sustainable Management Committee.

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the Sustainable Management Committee System


The Group conducts scenario analysis as the first step toward formulating the strategy, risk management, metrics, and targets for climate change. We selected business risks and opportunities in the 1.5°C scenario, which aims to achieve a shift toward a decarbonized society, assessed their importance, and compiled their impact on the Group. The scope of analysis was the business of the Company and SDP Global Co., Ltd.
We conducted a qualitative scenario analysis of the Group's major business areas, including the Toiletries & Health Care, Petroleum & Automotives, Plastics & Textiles, Information & Electrics/Electronics, and Environmental Protection & Construction. The assessment results were discussed by the Sustainable Management Committee and reported to the Board of Directors.
The scope of analysis will be expanded to our Group companies, and the 4°C scenario will be assessed to formulate measures.

The 1.5°C scenario

Referring to the scenario of strong control of CO2 emissions to limit temperature rise to "+1.5°C" (the long-term outlook "Net Zero Emissions by 2050" at the International Energy Agency), we considered tighter regulations and major social and market transformations as the central scenario of transition risk. The scenario was based on the following assumptions.

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World anticipated
in the 1.5°C scenario
  • Top priority placed on the realization of a decarbonized society, and implementation of an ambitious climate change policy
  • Significant increase in the carbon tax rate
  • Prohibition of internal combustion engine (ICE) sales, shift to electric vehicles (EVs), and decarbonization of energy and raw materials
  • Mainstreaming of renewable energy
  • Reduction in consumption of chemicals through recycling
  • Manufacture of chemicals from biomass and CO2-derived raw materials
  • Exacerbation of natural disasters
  • Realization of carbon neutrality (2050)

Risk management

We anticipate tighter regulations due to policies, including carbon pricing toward decarbonization, and a shift in demand for materials suitable for decarbonization as the main climate change risks of the Group. We also study the risks of the accelerated shift toward a circular economy, and the emergence of innovative technologies toward a decarbonized society.
As countermeasures, we will study the possibility of carbon dioxide capture and utilization (CCU) and energy shift to hydrogen, etc. t the Nagoya Factory and the Kashima Factory, and in the SDP Group, which account for a large proportion of the CO2 emissions of the Group. We will also improve the processes and reduce CO2 emissions from our business sites.
Regarding opportunities, we contribute to reducing CO2 emissions by actively promoting sustainable management, including the review of our business portfolio.

The Group’s countermeasures to the main risks and opportunities of climate change

The Group’s countermeasures to the main risks and opportunities and the results of impact assessment were compiled. Regarding the impact assessment, the impact in terms of the amount of money was estimated and classified into three categories (high, intermediate, and low), depending on the magnitude.

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Climate change
risk item
Impact of climate change risks
● Risk    〇 Opportunity
Impact assessment Countermeasure
Introduction / raising of carbon tax
  • Increase in energy procurement costs

  • Spread of CCUS
  • Reduction of GHG emissions by introducing cogeneration and solar power generation

  • Establishment of a CCU system using our ionic liquids
Reduction of CO2 emissions
  • Tightening of GHG emission regulations

  • Expansion of the market for products that contribute to reducing GHG emissions
  • Reduction of GHG emissions during the manufacture of SAP through energy management

  • Expansion of sales of carbon fiber convergents for blades for wind power generation
Replacement with low-carbon products
  • Restrictions on CO2 emissions during use

  • Market expansion of products made from bio-based raw materials
  • Expansion of sales of surfactants made from bio-based raw materials
Recycling regulations
  • Increased costs due to the increased use of recycled raw materials

  • Increase in demand for recyclable products
  • Development of imaging materials using recycled PET

  • Development of chemical recycling technology for urethane

  • Deployment of resin dispersants for recycled materials / organic filler dispersion
Changes in consumer behavior
  • Decrease in sales of gasoline-fueled and hybrid vehicles

  • Increase in sales of electric vehicles

  • Reduction in weight of batteries in line with the higher mileage of vehicles
  • Increase in sales of lubricant additives that contribute to higher fuel efficiency of gasoline-fueled and hybrid vehicles

  • Increase in sales of electrolytes in line with the electrification of vehicles

  • Increase in demand for permanent antistatic agents for IC trays in line with increasing demand for semiconductors

  • Development of organic cathodes for organic cathode secondary batteries that contribute to weight reduction

Metrics and targets

Target of CO2 emissions reduction

■ Emissions (Scopes 1+2)

The Group set long-term targets to achieve net zero CO2 emissions by 2050 in Scopes 1 and 2*, and created a roadmap to reduce CO2 emissions by 50% by 2030 (compared to the FY2013 level). We aim to reduce CO2 emissions significantly by introducing CCU in addition to increasing energy use efficiency through the use of renewable energy and the introduction of an energy management system, reviewing the manufacturing processes, and changing the product portfolio.

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Target of CO2 emissions reduction(Scope1+Scope2)
Target of CO2 emissions reduction(Scope1+Scope2)
  • Emissions are expected to increase during the period of the new medium-term management plan (FY2023-FY2025) as production volume increases, but we will continue to improve manufacturing processes and reduce CO2.
  • A 50% reduction is targeted for FY2030 (compared to FY2013) through the use of CCUs and green hydrogen.

Roadmap toward carbon neutrality

We aim to reduce GHG emissions significantly by introducing CCU in addition to GHG emissions reduction measures, including energy transition (introduction of energy management, introduction of solar power generation and green hydrogen, and expansion of cogeneration), review of the manufacturing process, and changes in the product portfolio.

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Roadmap toward carbon neutrality

Emissions through the supply chain (Scope 3)

We will also set metrics to promote sales expansion and the development of products that contribute to the reduction of CO₂ emissions, and will work on the reduction of CO₂ emissions in Scope 3 (emissions through the supply chain). Starting in FY2022, we use a standard questionnaire tool (common SAQ) formulated by the Global Compact Network Japan to reduce CO2 emissions through the supply chain.

Toward the future

We will continue to conduct scenario analysis in line with the recommendations by TCFD, quantitatively evaluate the impact of climate change, and expand the scope of evaluation to Group companies. We will also practice PDCA by periodically reporting the review results to the Board of Directors and holding deliberations each year to disclose information about target setting and progress.