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.
Reduction scenarios toward carbon neutrality in 2050
As a milestone toward the long-term goal of carbon neutrality by 2050, we have formulated “Carbon-neutral Strategy 2030” with a target of reducing emissions by 60% by 2030. This strategy outlines a roadmap to hit our target, with a focus on substituting out greenhouse gases, advancing energy conservation, expanding the adoption of renewable and new energy sources, and developing innovative production engineering. We will systematically advance our efforts according to this roadmap.
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 of 16,000 yen/t-CO2 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 adoption of renewable energy
In addition to installing solar power generation equipment on-site, we are substantially increasing our adoption of renewable energy by using new, scalable off-site PPAs.*1 In FY 2024, we installed solar power generation equipment totaling 3,980 kW across 10 locations in Japan and overseas. Furthermore, by procuring environmental value through off-site VPPAs,*2 our renewable energy usage rate increased to 19%, achieving our 15% target for FY 2025 ahead of schedule.
- *1 Off-site Power Purchase Agreement: A method of directly procuring electricity from dedicated renewable energy sources installed off-site.
- *2 Virtual Power Purchase Agreement. A method of procuring only the environmental value associated with electricity generated from renewable energy sources.
Thin-Film Solar Panels
We are adopting glassless and frameless thin-film solar panels, which differ from conventional silicon-based solar panels, and are conducting tests to establish ways to install solar power generation equipment on roofs with low load-bearing capacity and flat roofs—where installation was previously difficult. In FY 2024, we installed 60kW thin-film solar panels on flat roofs using an adhesive method and conducted tests to verify matters regarding construction, durability, and power output.
Forest J-Credits
We purchase Forest J-Credits* that have been generated through appropriate forest management. Beyond reducing CO2 emissions, these credits contribute to local communities in many ways, from preventing landslides to supporting regional economies and conserving biodiversity. We purchase these credits to offset CO2 emissions from energy sources where fuel conversion is difficult.
* Forest J-Credits: Credits calculated based on CO2 absorption from three methods of forest growth: forest management, afforestation, and reforestation.
Reduction of energy consumption
To achieve carbon neutrality, we are implementing various initiatives to minimize energy consumption. These include thoroughly eliminating waste, upgrading to high-efficiency equipment, switching fuels, revising construction methods, and developing innovative production engineering.
When installing new equipment, we incorporate energy-saving specifications based on our internal energy-saving guidelines and make investment decisions that consider CO2 emissions in addition to cost.
Furthermore, we have implemented a system that visualizes energy consumption by production line, allowing anyone to check usage status in real time via the company intranet. This helps us immediately respond to abnormalities, identify waste by analyzing daily usage, and consider measures to tackle high CO2 emission hotspots, leading to further reductions in energy consumption.
Introduction of wet air-type air conditioner “WETCOM II” for paint booths
Because the painting process generates significant CO2 emissions, we have been focusing our efforts on reducing energy consumption. Conventional paint booths used steam to regulate temperature and humidity, but this method presented challenges such as energy loss in the steam piping. Therefore, by introducing the WETCOM II* wet air-type air conditioner, which does not use steam as a heat source, we were able to reduce energy consumption by approximately 70%.
*An air conditioner developed by ANDEX Co., Ltd. and Chubu Electric Power Miraiz Co., Inc.
Awarded at the Energy Conservation Grand Prize
At the FY2024 Energy Conservation Grand Prize, our initiative, the “Development of an Atmospheric Reflow Soldering Method to Achieve Carbon Neutrality,” received the Energy Conservation Center Chairman’s Award in the Energy Conservation Best Practice category. Traditionally, nitrogen had been used in the soldering process for automotive electrical components. However, we newly developed* a nitrogen-free solder paste that offers equivalent soldering performance and long-term reliability.
This new method helps reduce energy consumption by approximately 14% compared to conventional methods.
* This development was conducted jointly with Senju Metal Industry Co., Ltd.
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.
