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Initiatives to Reduce CO2 Emissions

The Kyowa Hakko Kirin Group upholds the global goal of reducing CO2 emissions in fiscal 2020 to no more than 380,000 tons, or 85% of its fiscal 1990 level. In addition, as part of its efforts to prevent global warming, the Group collaborated with its parent company, Kirin Holdings Company, Limited, to formulate a global group target from the Science Based Targets (SBT) approach*. The target is to reduce CO2 emissions in fiscal 2030 to no more than 289,000 tons, that is, to 20% less than the fiscal 2015 level, and actions have been launched to achieve it.

The Kirin Group’s medium-term greenhouse gas (GHG) emissions reduction target became the first target set by a Japanese food company to be approved by the Science Based Targets (SBT) Initiative, a global initiative to promote science-based target setting.

SBT Initiative

The Science Based Targets (SBT) Initiative was jointly established in 2015 by CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wildlife Fund (WWF) to encourage firms to set greenhouse gas (GHG) emissions reduction targets based on scientific evidence with the aim of controlling global warming within 2°C above pre-industrial levels. Presently, 222 corporations around the world (as of March 23, 2017) have endorsed the initiative, of which 40 corporations have their targets publicly disclosed as certified SBTs.

The CO2 emissions in 2016 from plants and research laboratories in Japan and overseas plants increased slightly from the previous year to 364,000 tons. This was attributable to the increase in production volume at overseas plants as a result of operations commencing at the new amino acid production plant of Thai Kyowa Biotechnologies Co., Ltd. However, ongoing efforts are made to reduce CO2 emissions, including improving our facilities to save more energy. Specifically, we are introducing energy-efficient air conditioners, installing facilities with cutting-edge energy-saving features at our new buildings, and employing spot air conditioners. We are also trying to improve our facility management, for example, by optimally controlling freezers and air conditioners to save more energy. Our CO2 emissions have been maintained at 81% of the fiscal 1990 level, which is well in line with the fiscal 2020 global target.

Change in CO2 emissions

Change in energy consumption

Installation of Photovoltaic Power Generation Facilities

To promote the use of renewable energy, Kyowa Hakko Kirin started installing photovoltaic (PV) power generation facilities at its plants and research laboratories in 2011. As of 2016, such facilities are operating at its Tokyo Research Park, Fuji Plant, Ube Plant and Takasaki Plant.
In 2016, 141,000 kwh of PV power was generated, equivalent to 82 tons* in terms of CO2 emissions.

In terms of indirect emissions assuming that the power was purchased

Change in power generated by PV power generation facilities

To make effective use of its resources and promote the use of natural energy, Kyowa Hakko Bio rents out part of its land at the Yamaguchi Production Center (Hofu and Ube) to DENKEN Co., Ltd. (Yufu City, Oita Prefecture; representative director: Genta Ishii, President and COO), which constructed on the land Solar Farm Ube equipped with a photovoltaic (PV) capacity of 1.2 MW and Solar Farm Hofu with a PV capacity of 12.0 MW and commenced operations in May 2015 and October 2016, respectively. The two facilities combined can produce enough electricity for 4,000 households.

Photo: Solar Farm Hofu

Replacing Sales Vehicles with Hybrid Vehicles

Kyowa Hakko Kirin has been replacing its low-emission-certified sales vehicles with hybrid vehicles in phases since 2009. As of the end of fiscal 2016, the proportion of hybrid vehicles reached 85.9% of all cars owned by the Company. We are making efforts to reduce fuel used by sales activities, and have managed to decrease CO2 emissions from such activities. We will proceed with our initiatives to become a low-carbon corporate group by remaining mindful of the environmental impact of our sales activities including providing information to customers.

Number of hybrid vehicles and fuel consumption* The data aggregation method was partly changed to present the data for the past five years.

Promotion of Green Office Plan

As part of its measures to comply with ISO 14001, the Kyowa Hakko Kirin Group undertakes the following environmental protection activities across all clerical divisions of its head offices, plants, research laboratories and sales sites, in collaboration with the labor union and the administration divisions. In fiscal 2016, the Group’s green purchasing rate reached 82.0%, which exceeded its target of 80%. Electricity consumption per employee decreased by 19.4% from the previous year and copier paper consumption per employee declined by 11.4% from the average consumption in the past three years. We will continue tackling these initiatives on an ongoing basis.

Targets under our Green Office Plan

  • Reduce per-unit electricity consumption by 1% a year
  • Achieve green purchasing rate of at least 80%
  • Reduce per-unit copier paper consumption by 1% a year (vis-à-vis average consumption in the past three years)

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