Contribute to the Realization of a Decarbonized Society
Contribute to the realization of a decarbonized society in the overall supply chain by developing and providing solutiions that help reduce GHG emissions in industries and society and by implementing low-carbon business activities.
The Kurita Group Approach
The Kurita Group views climate change issues, including extreme weather events and natural disasters caused by global warming, as a major global social challenge, and will contribute to the realization of a decarbonized society throughout the entire supply chain by developing and providing solutions that contribute to the reduction of GHG emissions in the industry and society, and by implementing low-carbon business activities.
The Kurita Group has established the "Kurita Group Environmental Policy" as a groupwide policy on environmental issues. Based on this policy, we will continuously promote environmental improvement activities. Business sites that have acquired ISO14001 certification build and operate their own environmental management systems in accordance with this policy. Other business sites that have not acquired certification also build and operate environmental management systems, including necessary regulations, systems, and activity plans, in line with this policy.
Regarding our efforts to address climate change issues, we disclose information on our response to climate change based on the recommendations of the Task Force
on Climate-related Financial Disclosures (TCFD)*1 .
- Task force on climate-related financial disclosures established to examine how climate-related information should be disclosed, and how financial institutions should respond. The task force recommends companies to disclose items related to climate change-related risks and opportunities. The task force dissolved in October 2023, and its supervisory function for the corporate climate change-related disclosure was taken over by the International Sustainability Standards Board (ISSB).
Contribution to Achieving the SDGs
Promotion and Governance System
The Kurita Group has defined “Contribute to the realization of a decarbonized society,” as one of its materialities, and the Sustainability Committee chaired by the Executive General Manager of Sustainability Division, a Corporate Officer of the Company, discusses the activities of the specialized subcommittee (Carbon Neutral Promotion Subcommittee) and each organization, and oversees and promotes the Group’s initiatives to address climate change issues.
The Sustainability Committee discusses or reports on the status of the initiatives to the Executive Committee twice a year in principle, and the Executive Committee deliberates and decides on necessary measures. Additionally, the Executive Committee reports on the status of initiatives to the Board of Directors, which oversees initiatives related to materialities. The Sustainability Advisory Council examines and deliberates on the Company's approach to sustainability management from a multi-stakeholder, medium- to long-term perspective, taking into account global circumstances surrounding sustainability, and provides advice and reports to the Board of Directors.
Carbon Neutral Promotion Subcommittee
The Carbon Neutral Promotion Subcommittee is a specialized subcommittee under the Sustainability Committee that considers measures to achieve the target of rate of reduction in scope 3 emissions and avoided GHG emissions through CSV business related to the materiality "Contribute to the realization of a decarbonized society". In fiscal 2024, we worked on creating new business plans and CSV business that contribute to reducing GHG emissions, and reducing business risks and seizing opportunities by calculating carbon footprints.
In fiscal 2025, we will continue to work on calculating our carbon footprint, as well as building a system for reducing Scope 3 emissions and formulating medium- to long-term scenarios.
Please refer to the details of the CSV business here.
Acquisition of ISO 14001 Certification
The Kurita Group has acquired ISO 14001 certification, focusing on business sites with high environmental impact. Business sites that have not acquired certification build management systems in accordance with the Kurita Group Environmental Policy. Please click here to see the acquisition rate of the entire Group and the list of companies that have acquired certification as of March 2024.
Implementation of Environmental Compliance Assessments
Based on the "Kurita Group Environmental Policy," the Kurita Group conducts activities to comply with environmental laws and regulations applicable in each country and region where it operates as part of its environmental improvement activities. Through "self-assessment sheets" targeting all Kurita Group business sites engaged in environmental improvement activities and "on-site inspections" targeting business sites of the company and group companies in Japan with relatively high risks of environmental law violations, we continuously evaluate and verify the compliance status and corrective actions regarding environmental laws related to chemical substance management, waste management, and wastewater treatment facility management at each group company and business site once a year.
Targets and Results
The Kurita Group is working to achieve a decarbonized society by setting targets to reduce GHG emissions through the provision of solutions to customers, and to reduce Scope 1, 2, and 3 emissions in business activities. The Kurita Groupʼs targets and results this materiality are shown as below.
| Metrics | Targets（Upper row） and Results（Lower row） | |||||
|---|---|---|---|---|---|---|
| FY2024 | FY2025 *1 | FY2026 | FY2028 | FY2031 | FY2051 | |
| Rate of reduction in Scope 1+2 emissions (compared to FY2020) |
17% | 50% | 52% | 73% | 80%*2 | Net-Zero |
| Achieved (21.2%) |
||||||
| Rate of reduction in Scope 3 emissions (compared to FY2020) |
11% | 14% | 17% | 22% | 30% | Net-Zero |
| Not achieved (-56.7%) |
||||||
| Avoided GHG emissions through CSV business | 630 thousand t | 900 thousand t | 1,100 thousand t *1 | 1,600 thousand t *1 | - | - |
| Achieved (733 thousand t) |
- | - | ||||
- The targets for fiscal 2025 were reviewed by the Sustainability Committee and decided by the Executive Committee. The target for fiscal 2026 and fiscal 2028 were revised upwards from the initial target based on the target for fiscal 2025 and approved by the Board of Directors.
- Previously, the target was set to achieve a 100% reduction, including the purchase of carbon credits. However, to align with international consensus, we have changed our target to an 80% reduction through means that meet the requirements for SBT certification as of October 29, 2024.
Evaluation of Results and Outline of Activities
The Kurita Group has set a long-term goal of "Net-Zero" with fiscal 2020 as the base year, and is working to reduce Scope 1, 2, and 3, which are the metrics of materiality. In fiscal 2020, the base year for the metrics, the Kurita Group's GHG emissions were approximately 2% for Scope 1 + 2 and approximately 98% for Scope 3.
| Type | Scope of calculation areas |
|---|---|
| Scope 1 |
|
| Scope 2 | Use of externally purchased electricity, heat, etc. |
| Scope 3 |
|
Rate of Reduction in Scope 1+2 Emissions
As the majority of Scope 1 + 2 emissions are GHG emissions from electricity in Scope 2, we will therefore promote the transition to electricity derived from renewable energy, purchase of renewable energy certificates, and gradually switch from gasoline cars to electric and hybrid vehicles. In fiscal 2024, we achieved our target of reducing Scope 1 + 2 by 21.2% compared to the base year of fiscal 2020, mainly due to the adoption of renewable energy at domestic bases that have a large amount of GHG emissions from electricity.
Trends in GHG emissions in Scope 1 and 2
For data on renewable energy installations and energy consumption, please click on the link below.
Rate of Reduction in Scope 3 Emissions
The actual results for fiscal 2024 fell short of the target, increasing by 56.7% compared to the base year of fiscal 2019, due to an increase in the procurement of pumps in Category 11 "Use of sold products" in Scope 3. Going forward, we will promote the decarbonization of solutions provided to customers. This will be achieved primarily through the development and deployment of CSV businesses, enhancing the Kurita Group's competitive advantage.
Trends in Scope 3 GHG emissions
Avoided GHG emissions through CSV business
The Kurita Group has set a target for avoided GHG emissions through CSV business, and aims to realize a decarbonized society throughout the supply chain by developing and providing solutions that contribute to GHG reduction in industry and society.
The actual amount of avoided GHG emissions through CSV business in the fiscal 2024 reached 733 thousand tons, achieving the target, due to contributions from newly registered CSV businesses.
Changes in avoided GHG emissions through CSV business
Please refer to the details of the CSV business here.
Other Related Initiatives
Participation in External Initiatives
Participation in METIʼs GX League
The Company participates in the GX League. The GX League was organized by Japan’s Ministry of Economy, Trade and Industry (METI) to realize the Japanese government’s target of “carbon neutral by 2050.” Specifically, the GX League will provide a forum for discussion on transformation of the socioeconomic system through collaboration between companies actively engaging in green transformation (GX) and entities in government, academia, and finance, as well as practical implementation for the creation of new markets.
Participation in the Japan Business Federation's Challenge Zero program
The company is taking part in Challenge Zero, an initiative run by Keidanren (Japan Business Federation) to develop innovative net zero greenhouse gas emission technologies. As of August 2023, 195 companies and groups had signed up to the initiative, aiming to rapidly achieve the net zero greenhouse gas emissions targets in the Paris Agreement.
Participation in the Japan Society of Industrial Machinery Manufacturers’ Basic Environmental Action Plan
The company participates in the basic environmental action plan of the Japan Society of Industrial Machinery Manufacturers, which is working on countermeasures for global warming. We report regularly on the status of our response to climate change.