Climate Change Countermeasures

The Nisshinbo Group’s Contributions to the SDGs

The Nisshinbo Group contributes to the achievement of the Sustainable Development Goals (SDGs) through activities to tackle climate-change.
The Group manages key performance indicators (KPIs) as part of the systematic measures to achieve its environmental targets for reducing greenhouse gas emissions and expanding sales of products that contribute to a sustainable society.

Core SDGs Goals and Targets and the activities of the Nisshinbo Group

The Nisshinbo Group considers SDGs 9.4 and 13.3 as core targets. The Group is promoting the following activities to tackle climate-change.

  • ①The Group is advancing reduction of greenhouse gas emissions through ISO 14001 activities
  • ②The Group is advancing activities to reduce Scope 1 (in-house emissions) and Scope 2 (off-site emissions of electricity, etc.) at manufacturing sites, and to establish environmentally friendly facilities
  • ③In the Micro Devices business, the Group is expanding equipment to reduce the emissions of PFCs*1 and SF6*2 from semiconductor production facilities.
  • ④The Group is developing, manufacturing and sell ingseparator materials, core components of the fuel cells that contribute to the development of a hydrogen-based society. We are also advancing the use of CFCs*3 in insulation products in our Chemicals business.
  • ⑤In the Wireless and Communications business, the Group is offering products for adaptation to climate change. These include dam and river management systems to prevent flooding damage and disaster prevention notification and communication systems to protect local residents in the event of a disaster.

*1 PFCs: Perfluorocarbons

*2 SF6: Sulfur hexa-fluoride

*3 CFCs: Chlorofluorocarbons

  • 9. Industry, innovation, infrastructure

    Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

  • Targets: 9.4

    By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

  • 13. Climate action

    Take urgent action to combat climate change and its impacts.

  • Targets: 13.3

    Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

The Nisshinbo Group's Climate Change Activities

The Nisshinbo Group aims to capture climate change-related business opportunities and reduce risks. To reduce climate-related risks, we are actively promoting climate change measures, such as reducing energy conservation Activities and PFCs (perfluorocarbons)* emissions, with the aim of carbon neutral through 2050.

* PFC (Perfluorocarbon): Fluorinated greenhouse gas used in dry etching in the production process of semi-conductors

The Nisshinbo Group Greenhouse Gas Emissions Reduction Targets

The Nisshinbo Group Greenhouse Gas Emissions Reduction Targets

Analysis of climate change scenarios

The Nisshinbo Group conducted climate change scenario-based analyses in accordance with the recommendations of TCFD*. In fiscal year 2021, these analyses targeted solutions to the Wireless and Communication and the Automobile Brakes businesses, as well as the Chemicals business. See "Disclosure Based on TCFD Suggestions" for the outcomes of climate change scenario analyses.

In fiscal year 2022, the Group plans to expand our operations in the areas of Wireless and Communication (Marine System, ICT/Mechanics, and Mobility), Micro Devices, Precision Instruments, and Textiles to promote climate change scenario analyses.

Through this climate change scenario analysis, the Group will derive the risks and opportunities that climate change will pose to the Group in the future, and utilize this information in the formulation of business strategies to develop more flexible and robust strategies and increase resilience to future risks.

* Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board

Selected as a "Zero Emissions Challenge Company" by METI

The following initiatives were highly evaluated, and each of the initiatives selected as Zero Emissions Challenge Companies by the Ministry of Economy, Trade and Industry of Japan: Technology Development Project for Social Implementation of Marine Biodegradable Plastics by Nisshinbo Holdings Inc.; Project for Realization of Energy-Saving Society with Robots and Drones by Japan Radio Co. Ltd.; and Industry-Academia-Government Collaboration Problem-solving Research and Development Project about Advancement of Fuel Cells, etc. Technologies and Utilization Project by Nisshinbo Chemical Inc.

In collaboration with Keidanren, the New Energy and Industrial Technology Development Organization (NEDO), and the Ministry of Agriculture, Forestry and Fisheries (MAFF), METI is working on the Zero Emissions Challenge project, which lists the companies that are accepting the challenge of innovation aimed at achieving 2050 carbon neutrality and which provides investors with useful information.

In cooperation with the Federation of Keidanren, NEDO and MAFF, METI has positioned the company as a Zero Emi Challenge Company to accept the challenge of innovation efforts in order to achieve a decarbonization society. METI announced the TCFD Summit 2021 in October 2021 as a second issue following 2020.

The list of companies covers programs run by METI and MAFF tied to the Zero Emission Innovation Strategy, and 45 projects run by NEDO. A total of 624 companies that agreed to the aims of the Zero Emi Challenge are listed.

ZERO EMISSIONS CHALLENGE
ZERO EMISSIONS CHALLENGE

Participation in Keidanren's Challenge Zero

The Nisshinbo Group participates Challenge Zero (Challengenet Zero Carbon Innovation), a project led by the Federation of the Japanese Economic Organization (hereinafter referred to as the “Keidanren”), participates.

Challenge Zero is a new initiative in which the Keidanren, in cooperation with the Japanese government, strongly promotes and publicizes innovative action by companies and organizations in Japan and overseas that are tackling the challenge of realizing a "decarbonizing society". This initiative positions the aims of the International Framework for Climate Change Control, known as the Paris Agreement, as a long-term goal.

In light of the goal of Challenge Zero, Nisshinbo Holdings Inc. will promote the creation of innovation in order to reduce greenhouse gases and contribute to the realization of a carbon-free society through its business activities.

Keidanren's official "Challenge Zero" website https://www.challenge-zero.jp/jp/ 別ウィンドウ表示

View case studies of the Group's efforts to realize a decarbonizing society is presented.

Challenge Zero
Challenge Zero

CDP Climate Change 2021 Assessment

The CDP is an international NGO working in the environmental field. The CDP surveys more than 13,000 companies worldwide and assigns scores from A to D in more than 1,000 cities, states, and regions to assess how companies effectively responds to the issues of climate change, deforestation, and water security. The Nisshinbo Group received a B– rating in Climate Change 2021.

CDP Climate Change 2021 Assessment
CDP Climate Change 2021 Assessment

Independent Practitioner's Assurance of Environmental Data

The Nisshinbo Group obtained independent practitioner's assurance from Deloitte Tohmatsu Sustainability Co., Ltd. in its Nisshinbo Group Greenhouse Gas Emissions Data 2021 in the Japanese version to improve the reliability of its Greenhouse Gas Emissions (Scope1, Scope2) environmental performance data.

Greenhouse Gas Emissions

The Nisshinbo Group's actual greenhouse gas emissions were approximately 567.4 thousand t-CO2e, up 1% from the previous fiscal year's greenhouse gas emissions. Decreased greenhouse gas emissions were attributed to the abolition of coal boiler fuels in the Textiles business and the switch from HFCs (hydrofluorocarbons) to HFOs (hydrofluoroolefins) in the Chemicals business. However, the recovery demand from the effects of new coronavirus infections resulted in a slight increase in greenhouse gas emissions for the entire group from the restoration of production.

Perfluorocarbons (PFCs) composed 87% of non-energy related greenhouse gas emissions. The PFCs emissions were mainly from the semiconductor product manufacturing process at Nisshinbo Micro Devices Inc.*

* In January 2022, New Japan Radio Co., Ltd., and Ricoh Electronic Devices Co., Ltd., merged to form Nisshinbo Micro Devices Inc.

Trends in Greenhouse Gas Emissions

Trends in Greenhouse Gas Emissions

*In 2018, we changed our fiscal year-end from March 31 to December 31. As a result, the consolidated fiscal year, which is a transitional period, is an irregular accounting period. For this reason, the period used for reference to FY2018 is adjusted to the period from April 1, 2018 to March 31, 2019, to match the period of other consolidated fiscal years.

*1 In January of 2022, Ricoh Electronic Devices Co., Ltd. changed its name to Nisshinbo Micro Devices Inc.

(Thousand t-CO2e)

      2017 2018
(Reference value after adjustment)
*1
2019 2020 2021
Greenhouse Gas Emissions Scope1 (Energy
related
+
Non-
Energy
related)
255.0 263.4 243.8 246.7 237.9
(Energy
related)
198.4 187.0 183.1 187.7 173.7
(Non-
Energy
related)
56.6 76.3 60.7 59.0 64.2
Scope2 (Energy
related)
366.7 373.0 348.6 317.4 329.4
Scope1
+
Scope2
(Energy
related
+
Non-
Energy
related)
621.7 636.3 592.4 564.1 567.4*2

*1 The same reference values are shown in the graph above for Trends in Greenhouse Gas Emissions.

*2 Data on greenhouse gas emissions are assured by a third party (Deloitte Tohmatsu Sustainability Co., Ltd.).

[Calculation method]

Scope1:

Energy related Greenhouse Gas Emissions = Σ[Fuel Consumption × CO2 Emission Factor*1]

Non-Energy related Greenhouse Gas Emissions = Non-Energy related CO2 Emissions + Σ [Greenhouse Gas Emissions other than CO2 × Global Warming Potential*2]

*1 Emission factors based on the Act on Promotion of Global Warming Countermeasures are used. Coal, however, uses a factor (1.893 t-CO2/t) calculated based on actual calorific values.

*2 Global warming potential based on the Act on Promotion of Global Warming Countermeasures.

Scope2:

Energy related Greenhouse Gas emissions = Σ [purchased electricity and purchased steam volume x CO2 emission factor*3]

*3 Purchased electricity uses, in Japan, adjusted emission factors for each electric company based on the Act on Promotion of Global Warming Countermeasures, and in foreign countries, the emission factors for each electric company, and if unavailable,the latest country-specific emission factors of IEA Emissions Factors. Purchased steam uses emission factors based on the Act on Promotion of Global Warming Countermeasures.

*4 For purchased electricity, alternative emission factors by electric power supplier were used until fiscal year 2020 based on the Act on Promotion of Global Warming Countermeasures. For data for past fiscal years after fiscal year 2014, greenhouse gas emissions were retroactively adjusted using the emission factors in *3 above.

[Subject Organizations]

In fiscal year 2021, a total of 102 companies, including Nisshinbo Holdings Inc. and 101 consolidated subsidiaries, were counted.

In greenhouse gas emissions by business, the Textiles business accounted for 32% of total emissions. This was followed by the Automobile Brakes business and the Micro Devices business, each of which accounted for 28%.

Greenhouse Gas Emissions by Business

Greenhouse Gas Emissions by Business

* In January of 2022, Ricoh Electronic Devices Co., Ltd. changed its name to Nisshinbo Micro Devices Inc.

(Thousand t-CO2e)

  2017 2018
(Reference value after adjustment)
*
2019 2020 2021
Electronics 128.6 173.4 -- -- --
Wireless and Communications -- -- 21.5 23.0 24.6
Micro Devices -- -- 139.0 150.4 158.4
Automobile Brakes 162.0 150.9 138.2 121.2 129.5
Precision Instruments 76.7 76.9 70.4 61.3 64.4
Chemicals 22.7 17.2 10.3 6.3 6.7
Textiles 225.8 212.1 207.7 196.5 179.1
Others 5.9 5.8 5.3 5.3 4.6
Total 621.7 636.3 592.4 564.1 567.4

*1 In 2018, we changed our fiscal year-end from March 31 to December 31. As a result, the consolidated fiscal year, which is a transitional period, is an irregular accounting period. For this reason, the period used for reference to FY2018 is adjusted to the period from April 1, 2018 to March 31, 2019, to match the period of other consolidated fiscal years.

*2 In fiscal year 2019, the Electronics business was separated into the Wireless and Communications business and the Micro Devices business.

Emissions in Japan accounted for 40% of greenhouse gas emissions.

Greenhouse Gas Emissions in Japan and Other Countries

Greenhouse Gas Emissions in Japan and Other Countries

* In January of 2022, Ricoh Electronic Devices Co., Ltd. changed its name to Nisshinbo Micro Devices Inc.

(Thousand t-CO2e)

  2017 2018
(Reference value after adjustment)
*
2019 2020 2021
Japan 216.0 248.0 220.7 217.5 228.2
Propotion 35% 39% 37% 39% 40%
Other countries 405.7 388.3 371.7 346.5 339.2
Propotion 65% 61% 63% 61% 60%
Total 621.7 636.3 592.4 564.1 567.4

*In 2018, we changed our fiscal year-end from March 31 to December 31. As a result, the consolidated fiscal year, which is a transitional period, is an irregular accounting period. For this reason, the period used for reference to FY2018 is adjusted to the period from April 1, 2018 to March 31, 2019, to match the period of other consolidated fiscal years.

Introduction of Renewable Energy

Operations of photovoltaic modules installed by the Nisshinbo Group remained steady throughout fiscal 2020, generating 4.8 thousand MWh of power.
In fiscal year 2022, new photovoltaic modules will be established and operated at Nisshinbo Micro Devices (Thailand) Co., Ltd.

Generation Capacity by Business Site in Fiscal 2021

Installation site Generation capacity (kW) Year operation commenced Use
Nisshinbo Mechatronics Inc.
Miai Machinery Plant
430 2010 Self-consumption
Nisshinbo Chemical Inc.
Chiba Plant
150 2011 Electric power sales,
self-consumption
Nisshinbo Brake Inc.
Tatebayashi Plant
300 2011 Self-consumption
Nagano Japan Radio Co., Ltd.
Head Office & Factory
110 2013 Electric power sales
Nisshinbo Holdings Inc.
Tokushima Plant
1,768 2013 Electric power sales, test facility
Nisshinbo Precision Instrument & Machinery Hiroshima Corp. 1,020 2015 Electric power sales
New Japan Radio Co., Ltd.
(the present Nisshinbo Micro Device Inc.)
Kawagoe Works
19 2018 Self-consumption
Total 3,797

Examples of the Nisshinbo Group Activities

Expanding the use of renewable energy

The Nisshinbo Group is promoting the use of renewable energy.

In April 2022, the Nisshinbo Holdings Inc. Head Office* began using electricity derived from renewable energy sources. As a result, CO2 emissions from the use of electricity at the head office will be zero, and a CO2 reduction effect of 400 t-CO2 per year is expected.

The Group will continue to work to expand the use of renewable energy.

* Electricity contracts at Nisshinbo Holdings Inc. head office sites include the head office sites of Nisshinbo Brake Inc., Nisshinbo Mechatronics Inc., Nisshinbo Chemical Inc., and Nisshinbo Textile Inc., as well as the Tokyo head office of NISSHINTOA IWAO INC.

Adoption of Low Pollution Vehicles

Nagano Japan Radio Co., Ltd., is successively switching company-owned cars to low-pollution cars (HVs). In fiscal year 2021, the company updated one vehicle; now, 10 out of 22 are low-pollution vehicles. In fiscal year 2022, the company plans to employ low-pollution cars for four of the five renewals. As a reduction in environmental impact, the company expects a 7% reduction in the use of gasoline from the fiscal year 2021 results.

The company selects a car type and chooses an HV vehicle based on the distance traveled. In addition, JRC Logistic Service Co., Ltd., which is responsible for delivering in-house mail, employs electric cars (two light cargo vehicles). The company and its affiliates are working to reduce CO2 by switching to low-pollution cars.

Low emission vehicle
Low emission vehicle
Electric Vehicles for In-house Distribution
Electric Vehicles for In-house Distribution

Reducing emissions of greenhouse gases by introducing PFC detoxification facilities

PFCs (perfluorocarbons)*1 and power emissions of greenhouse gases are high in Nisshinbo Micro Devices Fukuoka Co., Ltd.

With the aim of reducing the use of three burning-type decontamination devices with great reduction effects in facilities that use PFCs, the company introduced one PFC decontamination device for “Concept-One” equipment (two) in CVD*2 process in 2018, which has been in full-scale operation since 2019.

As of 2021, the introduction of a second system has been postponed because of the economic downturn. In fiscal year 2021, the production load increased by 22.0% from the previous fiscal year, PFC emissions decreased to 16,980 t-CO2 per year, and total greenhouse gas emissions decreased to 29,292 t-CO2 per year. The introduction of the second PFC detoxification system, which is being delayed, is ensured by the 2022 facility investment plan, and the plan now is to introduce the third system by 2030, while observing any changes in greenhouse gas emissions.

*1 PFC (perfluorocarbon) is a type of alternative fluorocarbon gas used in the manufacturing process of microdevice products.

*2 CVD (chemical vapor deposition): Methods for supplying raw material gases to substrates and surface treatment of substrates by chemical reactions

PFC detoxification system
PFC detoxification system

Initiatives on Dust with Neighborhood Farmers on Dust

Nisshinbo Micro Devices (Thailand) Co., Ltd., sometimes experienced odors from dust and smoke of PM 2.5* every February to April. The dust and smoke were caused by the yearly burning by farmers adjacent to the plant for crop cultivation before tillage. There was also a problem of the need to discharge water around the external walls of the company in order to prevent the spread of the fires.

Awareness of the importance of reducing PM2.5 and other dust and smoke levels, the company discussed the situation with farmers in 2020 and suggested ways to till fields rather than burning prior to tillage. In February 2021, the company incorporated a budget to harvest the field and contracted with farmers about cultivating the field rather than burning it. The field was cultivated twice a year in February and June, and the personnel section checked the conditions of the site after cultivation. As a result, fields have not been burned since 2021. This has resulted in a 100% reduction of PM2.5 dust and smoke produced by burning fields.

* Very small particles 2.5μm (1μm (micrometer) = 1000 times 1 mm) or less in diameter suspended in the atmosphere

ZPlowing the field
Plowing the field

Participate in Manufacture 2030 platforms

Nisshinbo Automotive Manufacturing Inc. in the USA participated in the Manufacture 2030 Platform in fiscal year 2021 to ascertain and reduce CO2 emissions. This platform allows the company to set up projects aimed at optimizing the process of reducing energy use in plants, tracking and reducing waste, reducing water use, and reducing carbon emissions in the production processes.

To reduce CO2 emissions, the company is working to reduce the use of city gas and electricity in the manufacturing processes of its plants and to reduce the volume of wastewater treated to reduce the environmental impact. In fiscal year 2021, eight projects were launched in an effort to reduce emissions through activities to plan and implement improvement measures for each project, and the company was able to reduce emissions by approximately 129 t-CO2.

Selected as grade 3 in companies with excellent achievements in the reduction of greenhouse gases

Saeron Automotive Corporation in Republic of Korea was awarded a grade 3 by the Korean Environmental Corporation (KECO) after evaluating its achievement of reducing greenhouse gas emissions in fiscal year 2021.

As part of the support for greenhouse gas reduction policies under the Greenhouse Gas and Energy Target Management System, KECO selected designated controlled companies that have substantially reduced greenhouse gas emissions from the previous year. For the selection, a reduction grade category has been established according to the amount of reduction. In 2021, 164 companies were selected.

Category Grade 1 Grade 2 Grade 3 Grade 4 Total
Number of companies 16 34 48 66 164

* Reduction grade: Grade 1 (10% reduction), grade 2 (20% reduction), grade 3 (30% reduction), grade 4 (40% exclusion)

In Korea, a greenhouse gas emission trading system based on the Law Concerning Allocation and Trading of Greenhouse Gas Emissions has been implemented, and the government has allocated the allowable total emissions to greenhouse gas multi-discharging companies. The company was able to reduce greenhouse gas emissions to 97% in 2019 and 88% in 2020. As part of the initiative, the company installed a function to automatically turn off the power supply to the filtration dust collector and compressor when they stop to reduce power consumption. In addition, the company was able to reduce the use of city gas by installing regenerative exhaust gas treatment equipment (RTO).

Category 2019 2020
Discharge allowance 22,723 t-CO2e 24,610 t-CO2e
Emission results 22,154 t-CO2e 21,579 t-CO2e
Difference 569 t-CO2e 3,031 t-CO2e
Emission rate 97% 88%

Promote non-CFC use of rigid urethane foam foaming agents

Nisshinbo Chemical Inc. is working to switch from HFCs (hydrofluorocarbons) for fluorocarbons to water and HFOs (hydrofluoroolefins) for rigid urethane foam used in the insulation for housing and buildings, freezing and cooling vehicles, cold chain-related operations for freezing and cooling units, and cavity restoration work on the back of tunnels to HFCs (hydrofluorocarbons) for non-fluorocarbons.

As a result of this initiative, HFC consumption in the first half of fiscal year 2021 was reduced by 22.3% compared to the same period the previous fiscal year. In this context, by 2024, the target fiscal year based on the Freon Emission Control Law, it was necessary that the GWP* weighted average of foaming agents used for insulation materials of rigid polyurethane foam be 100 or less (before 2024, the target fiscal year for other designated product categories), and the demand for switching to HFOs with very low GWP has increased.

However, because of the worldwide supply shortage of HFOs in the second half of fiscal year 2021, some customers had to use HFCs as a primary measure to maintain production systems. As a consequence, in fiscal year 2021, HFC consumption was reduced by only 7% compared to the previous fiscal year, resulting in a reduction of approximately 891 metric t-CO2 in emissions. After the concern about the supply of HFO is resolved, the company will continue to switch to HFOs to help prevent global warming and conserve energy.

* GWP: Global warming potential (the factor that describes how many times the gas has a greenhouse effect than carbon dioxide)

Expand manufacturing and marketing of carbon separators for fuel cells

Nisshinbo Chemical Inc. has been delivered carbon separators to fuel cell manufacturers worldwide since 2000.

In 2009, the household fuel cell Enefarm was commercialized, and mass production and marketing of carbon separators were initiated. In the meantime, the company's separators has been patronized by clients at home and abroad, even in the setting of emergency power supplies.

In recent years, carbon neutral has been required globally, and fuel cell applications have expanded to include emergency power supplies for data centers and power supplies for factories and offices. As a result, demand for fuel cells continues to grow; therefore, the company will contribute to the prevention of global warming through the manufacture and sale of carbon separators.

Fuel cell carbon separator
Fuel cell carbon separator

Shutdown of in-house power generation facilities for coal

PT. Nikawa Textile Industry stopped its coal power plant in November 2021, which has been in operation for about 16 years since 2005. The company plans to reduce greenhouse gas emissions by approximately 89 thousand t-CO2 on an annual basis.

Along with the shutdown of the coal power generation facilities, which were responsible for supplying about half of the electricity and steam used by the company, all of the electricity switched to purchased electricity from a state-owned company and to steam supplied from natural gas boilers, which have a lower environmental impact.

The company is located in one of the world's leading coal-producing countries in Indonesia, the decision was made to stop using the equipment by considering the magnitude of greenhouse gas emissions and environmental impacts, although there were geopolitical advantages of coal self-generation that could provide a stable supply. In the future, the company will continue to conduct activities aimed at a sustainable manufacturing base.

In-house coal power generation facilities that have been shut down
In-house coal power generation facilities that have been shut down