Carbon Neutrality
While the worldwide movement of decarbonization has accelerated, the Tokai Rika Group has been enhancing activities we consider to be the responsibility of a global company, and has been promoting CO2 reduction activities within the whole group. These activities include adopting low CO2 materials for our products, developing new materials, and improving the efficiency of the use of energy in production and transportation.
Endorsement of TCFD recommendations
We endorse the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for information disclosure.
We have introduced scenario analysis as recommended by the TCFD and have decided how to respond to the identified risks and opportunities, incorporating them into our mid-term guideline “Carbon-neutral Strategy 2030” and short-term plan “Environmental Action Plan” to ensure a steady and systematic response.
Click here to see the scenario analysis results.
Development of low-CO2 materials that contribute to the reduction of Scope 3
We have developed BAMBOO+, a biomass material made from locally collected bamboo chips, which we have converted into fiber using our proprietary technology, and composited with a resin with a high composition of 51% or more. Bamboo can be used sustainably because it grows quickly and absorbs CO2 as it grows, which greatly reduces CO2 emissions compared to plastics derived from fossil resources. Bamboo is also difficult to manage due to its rapid growth, which can devastate satoyama and negatively impact ecosystems. The BAMBOO+ project contributes not only to carbon neutrality but also to nature positive by regularly harvesting bamboo in Japan, leading to the preservation of bamboo forests and ecosystems.
Reduction scenarios toward carbon neutrality in 2050
Under Scopes 1 and 2, we are implementing various reduction activities with the goal of achieving carbon neutrality by 2050.
We are working to achieve carbon neutrality by replacing SF6 used in the magnesium casting process, expanding the introduction of renewable energy, and innovating production technologies. As a milestone, we have formulated the “Carbon-neutral Strategy 2030” and are working to achieve the long-term goal of 2050.
Introduction of Internal Carbon Pricing System
We are introducing Internal Carbon Pricing (ICP)* to promote capital investment that can contribute to the reduction of CO2 emissions. By setting an in-house carbon price and evaluating the economic effect of CO2 reduction as an investment effect, we are promoting carbon-neutral strategy investment. The introduction of ICP makes it possible to visualize the economic impact of CO2 emissions, leading to appropriate investment decisions.
It is also applied to risk and opportunity scenario analysis to provide a quantitative assessment of the impact of climate change on the company, its countermeasures, and strategies.
*A system that promotes climate action by setting an in-house carbon price and quantifying CO2 emissions in economic terms.
- In-house Carbon Price
- 16,000 yen/t-CO2
- System target
- Carbon neutral strategic investment, energy saving related investment
- Applicable System
- The cost of CO2 emissions associated with eligible capital investment plans is calculated by applying an in-house carbon price, which is used as a reference for investment decisions.
Expanding the introduction of renewable energy
We are expanding the introduction of solar power generation throughout the Group. In FY 2023, we introduced 3,600 kW of solar power generation at our subsidiaries in Japan and at five overseas locations. We are also promoting the introduction of off-site PPA* to procure new and additional renewable energy sources, and in addition to two sites in Nagano and Osaka prefectures, a new solar power plant has been constructed in Yatomi City, Aichi Prefecture, and is now in operation. As a result, the renewable energy rate in FY 2023 increased to 14.1%.
*An agreement whereby the operator installs a solar power plant outside the customer's premises and the customer purchases the electricity
Joint procurement of renewable energy with suppliers
At the off-site PPA power plant in Yatomi City, Aichi Prefecture, which began generating power in FY 2023, we have concluded an agreement with 12 suppliers who are members of Tokai Rika Kyouryoku-kai and Chubu Electric Power Miraiz Co., Ltd.
We will jointly procure renewable energy-derived surplus electricity from a solar power plant installed on the vast roof space of the distribution warehouse (panel output: 5,770 kW). By doing so, our supply chain will work together to promote decarbonization and contribute to the introduction of new renewable energy.
Use of carbon offset city gas
Our head office and plant are supplied with carbon offset city gas (formerly known as carbon neutral city gas) by Toho Gas Co. This city gas utilizes carbon offset LNG (liquefied natural gas), which is CO2 emitted in the process from mining to combustion of natural gas, and is offset with CO2 credits (carbon offset). The amount of city gas used in FY 2023 was 1,156,548 m3 (3,022 tons offset), all of which was certified by SOCOTEC Certification Japan K.K. as carbon offset city gas.
Reduction of energy use
We are working to minimize energy use to achieve carbon neutrality. We are formulating energy conservation guidelines that outline our approach to adopting high-efficiency equipment, steam-less, heat insulation/shielding, non-operation stoppages, airless, and other energy conservation methods. By determining equipment specifications based on these guidelines, we ensure that energy conservation is incorporated from the stage of new equipment installation. We have made a list of examples of past projects and shared examples with partner companies so that all employees can see the progress of each department, thereby ensuring that the horizontal exhibitions are completed.
We are also proceeding with the introduction of an “energy visualization system” that constantly monitors the energy usage of each production facility and line. Managers at each production line monitor energy usage in real time. This allows us to respond immediately when abnormal usage occurs, and to identify waste through daily usage analysis. In the future, we will link this system with a production management system to perceive the amount of energy used per product. By doing so, we plan to improve the accuracy of LCA.
Developed Japan’s first in-mold coating for small parts
In partnership with Seikoh Giken Co., Ltd., we have developed Japan’s first in-mold coating technology for small parts.
The molding, painting, and drying processes, which were previously performed separately, can now be performed consistently inside the mold using an injection molding machine, thereby eliminating both the painting and drying processes, which generate a high volume of CO2.
By introducing this technology, CO2 emissions can be reduced by approximately 60% while maintaining the same appearance as conventionally manufactured products. We are moving forward with the goal of commercialization in 2025.
Development of reflow soldering process
We have developed an atmospheric reflow soldering process to achieve carbon neutrality in collaboration with Senju Metal Industry Co., Ltd.
In order to improve solderability, soldering was performed in a nitrogen atmosphere, but the nitrogen generator increased power consumption. In response to this issue, we developed a solder paste with stronger flux activity for the reflow soldering process, which accounts for 87% of the solder paste used at Tokai Rika’s head plant, enabling soldering in natural atmospheric conditions while maintaining the same solderability as before. As a result, CO2 emissions in the reflow oven have been reduced by 21.1%.
Reduction of greenhouse gases
As we are using SF6* for the shielding gas to prevent melted magnesium from burning when exposed to air in the magnesium casting process, we are proceeding with a changeover to a substitute gas with a smaller greenhouse effect. All domestic bases have completed the changeover, and we plan for overseas bases to have completed it in 2030.
* SF6 has high global warming potential, 23,500 times greater than that of CO2, our standard, so it has been specified as one of the targets of emission control.
Energy conservation support for suppliers
To reduce CO2 emissions under Scope 3, we are promoting initiatives throughout the supply chain. To achieve the “Carbon-neutral Strategy 2030” of 30% CO2 reduction at our major suppliers, we provide energy-saving support, including on-site energy-saving proposals and consultation.
Reduction of Transportation CO2
We are working to reduce CO2 emissions in the transportation process, such as by improving packing that leads to improved storage efficiency and loading efficiency, and reviewing transportation routes to make them more efficient.
Introduction of hybrid vehicles for distribution trucks
As one of our logistics strategies for realizing CN, we will switch 50% of our logistics trucks to eco-friendly vehicles such as HVs by 2030. Two HV trucks are currently being introduced and used as distribution trucks.
