Addressing Climate Change
Reduction of CO2 Emissions
CO2 and fluorocarbons are the main causes of global warming. The reduction of these emissions is therefore a global issue. The Taisho Pharmaceutical Group is engaged in reducing the emission of CO2 and fluorocarbons as a company with responsibility for dealing with climate change.
- Objectives
- Reduce the amount of CO2 emissions (Scopes 1 & 2) by 25% by the fiscal year ending March 31, 2031 compared to CO2 emissions in the fiscal year ended March 31, 2014*
- Reduce the average amount of CO2 emissions from offices in Saitama Prefecture from fiscal 2015 to fiscal 2019 by 13% compared with the baseline year
- * Basis for setting target year: Target fiscal year prescribed in Japan’s Intended Nationally Determined Contribution (INDC) (July 2015)
Basis for setting target figures: “The Commitment to a Low Carbon Society” issued by The Federation of Pharmaceutical Manufacturers’ Associations of Japan
Total Emission Volume from Offices in Japan (Scopes 1 & 2)
In fiscal 2019, we undertook measures such as upgrading to equipment with higher energy efficiency focused on factories and research centers in Japan and reviewing the conditions for using air conditioning. CO2 emissions increased by 0.0% (15 tons) compared with the baseline year, but decreased by 4.2% compared to the previous fiscal year. Because emission coefficients for electricity increased in fiscal 2019 compared with the baseline year, CO2 emissions also increased. However, usage amounts for electricity and fuel are being reduced compared with the baseline year.
CO2 Emissions (Scopes 1 & 2) and Basic Unit of CO2
Fiscal year | 2013 (baseline year) | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
Scope 1*1, *2(t-CO2) | 26,236 | 26,295 | 27,201 | 25,766 | 24,841 |
Scope 2*1, *3(t-CO2) | 30,028 | 36,149 | 34,402 | 32,956 | 31,438 |
Total (t-CO2) | 56,264 | 62,444 | 61,603 | 58,723 | 56,279 |
Amount of CO2 emissions compared to fiscal 2013 | — | 111.0% | 109.5% | 104.4% | 100.0% |
Basic unit of CO2 emissions*4 (t-CO2/net sales (millions of yen)) |
0.190 | 0.223 | 0.220 | 0.225 | 0.195 |
- *1. Gas used for calculation: Energy-derived CO2
Coefficient used for calculation: As stipulated by the Act on Promotion of Global Warming Countermeasures
Scope of calculation: Offices in Japan (Taisho Pharmaceuticals Head Office, branches, distribution centers, factories and research centers) - *2. Direct greenhouse gas emissions produced by a company
- *3. Indirect greenhouse gas emissions from consumption of purchased electricity, heat and steam
- *4. CO2 emissions (Output (Scope 1 + Scope 2) / Sales (consolidated))
Overseas Factory CO2 Emissions (Scopes 1*1 & 2*1, *2)
2016 | 2017 | 2018 | 2019 | ||
---|---|---|---|---|---|
PT. Taisho Pharmaceutical Indonesia Tbk | Scope 1 | 364 | 263 | 259 | 219 |
Scope 2 | 1,813 | 1,798 | 2,020 | 1,939 | |
Total(t-CO2) | 2,491 | 2,061 | 2,279 | 2,157 | |
Taisho Pharmaceutical (M) SDN. BHD. | Scope 1 | 0 | 0 | 0 | 0 |
Scope 2 | 1,685 | 1,899 | 2,042 | 1,965 | |
Total(t-CO2) | 1,685 | 1,899 | 2,042 | 1,965 | |
Taisho Co., Ltd. Shanghai | Scope 1 | 488 | 526 | 566 | 644 |
Scope 2 | 508 | 521 | 581 | 641 | |
Total(t-CO2) | 997 | 1,047 | 1,148 | 1,285 | |
Hoepharma Holdings Sdn. Bhd. | Scope 1 | 116 | 175 | 189 | 212 |
Scope 2 | 340 | 395 | 393 | 407 | |
Total(t-CO2) | 456 | 570 | 582 | 619 | |
Taisho Vietnam Co., Ltd. | Scope 1 | 20 | 14 | 13 | 0 |
Scope 2 | 322 | 389 | 406 | 407 | |
Total(t-CO2) | 342 | 403 | 420 | 407 | |
Compañía Internacional de Comercio, S.A.P.I. de C.V. (CICSA) | Scope 1 | 95 | 16 | 15 | 8 |
Scope 2 | 536 | 537 | 481 | 536 | |
Total(t-CO2) | 632 | 552 | 496 | 544 | |
UPSA SAS (UPSA) | Scope 1 | — | — | — | 5,084 |
Scope 2 | — | — | — | 9,281 | |
Total(t-CO2) | — | — | — | 14,365 | |
Douc Hau Giang Pharmaceutical JSC | Scope 1 | — | — | — | 1,541 |
Scope 2 | — | — | — | 16,752 | |
Total(t-CO2) | — | — | — | 18,293 | |
Total | Scope 1 | 1,084 | 993 | 1,043 | 7,706 |
Scope 2 | 5,206 | 5,537 | 5,923 | 31,928 | |
Total(t-CO2) | 6,289 | 6,530 | 6,966 | 39,634 |
- *1. Gas used for calculation: Energy-derived CO2
Coefficient used for calculation: Taken from “CO2 emissions from fuel combustion 2019” - *2. Location-based method
Scope 3 CO2 Emissions
CO2 in the value chain (Scope 3) and basic unit of CO2 emissions
Category | CO2 emissions (t-CO2) |
Method of calculation | |
---|---|---|---|
FY2018 | FY2019 | ||
Scope 1*1 | 25,766 | 24,841 | Global warming potential based on “Act on Promotion of Global Warming Countermeasures” |
Scope 2*2 | 32,956 | 31,438 | |
Scope 3*3, *4 | |||
1. Purchased products & services | 51,107 | 47,581 | Calculated by aggregating each purchased raw material, then multiplying by the basic unit |
2. Capital goods | 14,883 | 26,797 | Calculated by multiplying the amount of capital investment in the fiscal year by the basic unit |
3. Fuel and energy-related activity not included in Scope 1 & 2 | 2,414 | 4,537 | Calculated by multiplying the amount of used electricity/heat by the basic units for the amount of energy used |
4. Transportation, delivery (upstream) | 9,704 | 8,894 | Calculated by multiplying the delivery volume from suppliers to factories, between factories, and from factories to shipping destinations by the basic unit |
5. Waste from business activities including manufacturing | 3,026 | 1,567 | Calculated by categorizing the waste generated by factories and research centers by treatment, then multiplying the weight of treated waste by the basic unit |
6. Business trips | 703 | 2,114 | Calculated by multiplying the expense amount supplied to use aircraft (domestic and overseas) by the basic unit |
7. Employee commuting | 2,065 | 2,434 | Calculated by multiplying the expense amount supplied for commuting expenses for each mode of transportation by the basic unit |
8. Leased assets (upstream) | Outside scope of calculation | — | |
9. Transportation, delivery (downstream) | Outside scope of calculation | — | |
10. Manufacturing of sold products | Outside scope of calculation | — | |
11. Usage of sold products | Outside scope of calculation | — | |
12. Waste of sold products | 889 | 815 | Calculated by multiplying the usage amount of each material at the time of application under the Containers and Packaging Recycling Act by the basic unit |
13. Leased assets (downstream) | Outside scope of calculation | — | |
14. Franchises | Outside scope of calculation | — | |
15. Investments | Outside scope of calculation | — | |
Basic unit of CO2 emissions (Scope 3)*5 (t-CO2/net sales (millions of yen)) |
0.324 | 0.328 | |
Basic unit of CO2 emissions (total)*6 (t-CO2/net sales (millions of yen)) |
0.548 | 0.523 |
- *1. Direct greenhouse gas emissions produced by a company
- *2. Indirect greenhouse gas emissions from consumption of purchased electricity, heat and steam
- *3. Indirect greenhouse gas emissions not covered in Scopes 1 & 2
- *4. Gas used for calculation: Energy-derived CO2
Coefficient used for calculation: From the emission basic unit database (ver. 3.0) for organizations to use when calculating greenhouse effect gas emissions generated throughout their supply chains.
Scope of calculation: Offices in Japan (Taisho Pharmaceuticals Head Office, branches, logistics branches, factories and research centers) - *5. CO2 emissions (Scope 3) / Sales (consolidated)
- *6. CO2emissions (Scope 1 + Scope 2 + Scope 3) / Sales (consolidated)
CO2 Emission Volume Associated with Sales and Transport, etc.
Fiscal year | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
Sales (t-CO2) | 4,026 | 4,922 | 6,282 | 5,768 | 4,048 |
Logistics (t-CO2) | 7,074 | 6,889 | 6,552 | 6,345 | 5,950 |
Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance (Offices in Saitama Prefecture)
Approximately 80% of Taisho Pharmaceutical’s CO2 emissions are produced within Saitama Prefecture, including the Omiya and Hanyu factories, along with the Research Center.
At offices in Saitama Prefecture, we are pursuing a reduction in the average amount of CO2 emissions by 13% for the second plan period (fiscal 2015 to fiscal 2019) when compared to the baseline year (average from fiscal 2002 to fiscal 2004) with a system for planning global warming countermeasures in accordance with Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance.
During fiscal 2019, efforts to improve energy efficiency at the Hanyu Factory resulted in a 15.0% reduction in CO2 emissions, compared to the previous fiscal year. The average annual rate of reduction in the second planning period is 12.7%. We will appropriately address the shortfall in CO2 emissions reduction against the target in accordance with the obligation to make efforts described in the “Target-Setting Emissions Trading Program” in Saitama.
Trends in the Amount of CO2 Emissions for the Second Plan Period for Global Warming Countermeasures
Fiscal year | Baseline year (2002–2004) |
2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
Emissions*(t-CO2) | 48,275 | 43,265 | 42,688 | 41,444 | 41,056 |
Reduction rate (%) | — | 10.4 | 11.6 | 14.2 | 15.0 |
Average reduction rate in the 2nd planning period (%) | — | 12.7 |
- * The calculation for CO2 emissions uses emission coefficients presented in the Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance
Participation in FPMAJ’s Low-Carbon Society Project
To contribute to a low-carbon society, Taisho Pharmaceutical is participating in the Low-Carbon Society Project led by the Federation of Pharmaceutical Manufacturers’ Associations of JAPAN (FPMAJ).
Promotion of Environmentally Friendly Offices
- Objectives
- Taisho Pharmaceutical will work on improving the energy consumption rate*1, and will continue to receive “A-class or higher”*2 in evaluation system by class under the Energy Conservation Law
- *1. Energy consumption rate
Factories, research centers: Energy consumption (kL) / Number of production lots (hundred million) {or production (hundred million yen)} x Floor area (m2)
Sales and back offices: Energy consumption (kL) / Floor area (m2) - *2. In order to continue to receive “A-class or higher,”
the following conditions have to be avoided:
· Energy consumption rate of 100% or more for two consecutive years
· Average consumption rate is 105% or more for five consecutive years
Taisho Pharmaceutical will continue to work on eliminating CO2 emissions in the medium and long terms, and also on improving the energy consumption rate, for the purpose of using limited energy.
In fiscal 2019, we replaced equipment to improve energy efficiency and undertook other initiatives to reduce energy waste at factories and research centers. However, the energy consumption rate increased 3.0% year on year. The increase in the energy consumption rate reflected the strengthening of raw materials storage temperature management at factories in summer and a decrease in total floor area, chiefly due to the removal of warehouses. Anyway, we maintained a Class A evaluation under the Energy Conservation Act system, which was our goal.
Change of Energy Consumption Amount (Calorific Value) and Energy Consumption Rate
Fiscal year | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
Energy consumption (heating value TJ) | 1,060 | 1,091 | 1,074 | 1,044 | 1,041 |
Energy consumption rate compared to the previous fiscal year (%) | — | 96.5 | 98.0 | 98.6 | 103.0 |
Average consumption rate for 5 fiscal years (%) | 101.0 |
Measures to Save Energy and Reduce CO2 Emissions in Fiscal 2019
Measures | |
---|---|
Taisho Pharmaceutical Company | 1) Upgraded to higher-efficiency equipment |
2) Applied LED lighting and turned certain lights off | |
3) Conducted Cool-Biz Campaign | |
4) Participated in Lights-Down Campaign | |
Production, Research and Logistic Headquarters | 5) Reviewed manufacturing equipment and air conditioning |
6) Upgraded to higher-efficiency equipment | |
7) Improved activities to combat energy loss (air leak, heaters) |
Promotion of Environmentally Friendly Logistics Operations
- Objectives
- Reduce average annual energy consumption associated with transport by 1% or more by the fiscal year ending March 31, 2020
The annual amount Taisho Pharmaceuticals transports as a cargo owner is 30 million ton-km or more, so we fall under the category “Specified Shippers” in the Energy Conservation Law.
We are undertaking activities that include promoting a modal shift (changing transportation methods to reduce environmental load), reducing transportation frequency, and improving fuel efficiency to reduce energy consumption during transportation.
In fiscal 2019, the energy consumption rate fell 3.2% year on year. The five-year average improved 0.7%. In fiscal 2019, we improved transportation efficiency by encouraging the use of heavy-duty trucks and increasing the proportion of shipments transported by railroad.
Energy Consumption Rate and Specific Energy Consumption Associated with Transport
Fiscal year | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|
Energy consumption (converted to crude oil) (kL) | 2,690 | 2,626 | 2,494 | 2,413 | 2,267 |
Transportation amount (10,000 ton-km) | 8,000 | 7,934 | 7,507 | 7,169 | 6,953 |
Energy consumption rate* | 0.336 | 0.331 | 0.332 | 0.337 | 0.326 |
Change of average consumption rate for 5 fiscal years (%) | 100.3 |
- * Energy consumption rate: Energy consumption (kL) / Amount transported (10,000 ton-km)
Control of Fluorocarbon Emissions
- Objectives
- Comply with the act (simple inspections, periodic inspections, report on calculated leaks),
- provide education to fluorocarbon managers Companywide and reduce leaks
To ensure compliance with the Act on Rational Use and Proper Management of Fluorocarbons, we have established a Groupwide system for managing devices using fluorocarbons, etc. and have selected a general manager and assigned responsible managers and management representatives at respective offices to form a system that allows systemized management.
Amount of Fluorocarbons Leaked
Fiscal year | 2017 | 2018 | 2019 |
---|---|---|---|
No. of incidents | 17 | 9 | 4 |
Amount of fluorocarbons leaked (t-CO2e) | 474 | 63 | 75 |