Initiatives Aimed at Curbing GHG Emissions

To contribute to the realization of the “well-below 2°C target” of the Paris Agreement, in fiscal 2019, we formulated medium- and long-term targets for the reduction of GHG emission volumes (Scope 1 and 2). These targets focused on reducing GHG emissions by 26% by fiscal 2030 and by 85% by fiscal 2050 in comparison with the fiscal 2013 levels.
Later, as the world accelerated its efforts to tackle climate change, the Japanese government announced a declaration on carbon neutrality in October 2020. In response, we have announced that we aim to become carbon neutral (net zero emissions) by 2050, and we have also strengthened our 2030 reduction target to 50% of the fiscal 2013 level. To achieve this goal, we will further enhance and accelerate the following initiatives.

In fiscal 2022, emissions across the entire product value chain (Scope 3) decreased in energy categories not included in Scope 1 and 2, mainly the transportation, delivery and disposal of our products, although production increased due to the recovery in economic activity that continued from the previous year. We will continue to work with upstream and downstream suppliers to reduce emissions through the development and provision of products and technologies that will further contribute to the environment that draw on our unique technologies.

Initiatives to Maintain Zero Emissions

We have reduced the volume of industrial waste generated by our facilities via the utilization of such waste as an alternative source of fuel and heat energy for cement kilns and the improvement of various production processes. We have thus achieved “zero emission”* status and are concentrating on maintaining it.
Going forward, we will consider measures to achieve an even greater reduction in the volume of waste currently being disposed of by landfill.

• * In Denka’s definition, “zero emissions” means an emission ratio (amount of landfill waste/ amount of waste generated x 100) lower than 1%; the “zero emission” status applies only to Denka’s domestic production bases, including its affiliates.

Initiatives to Enhance Information Disclosure

Today, ESG investment—an investment approach that emphasizes investees’ efforts to fulfill their corporate social responsibilities—has become a subject of public interest. In step with this trend, the disclosure of information associated with business efforts that address environmental concerns has become a matter of growing importance. With this in mind, we are proactively disclosing information on our initiatives aimed at reducing environmental burdens via financial and other reporting outlets while releasing such information through external frameworks, including the CDP.
In FY2022, Denka was awarded an A- ranking in "Climate Change", and a B ranking in "Water Security".

Initiatives for Curbing Fluorocarbon Emissions

Denka is striving to implementing the following initiatives to fulfill our responsibilities as an administrator who owns the target devices^*1.

1.

From April 1 2020, all equipment owned by non-consolidated seven sites containing fluorocarbons^*2 had been registered with the Refrigerant Management System (RaMS) developed by the Japan Refrigerants and Environment Conservation Organization (JRECO), we are appropriately managing equipment in general, from equipment installation to disposal, as stipulated in the Fluorocarbons Emissions Control Law.

2.

In the course of renewing aged air conditioners and freezers, we promote the switchover to refrigerants with less global warming potential. We will continue to implement appropriate inspections and early measures to prevent leaks, and take steps to prevent global warming as well as comply with laws and regulations.

(JRECO) annually assess organizations on their level of understanding/awareness, initiatives and the dissemination of information in relation to the Fluorocarbons Emissions Control Law, and Denka has received the highest rating of A for the second consecutive year.

We will continue to promote the group.Going forward, we will steadily implement proper inspections and measures aimed at ensuring the early prevention of leakage and take steps to prevent global warming as well as comply with laws and regulations.

Conduct of Third-Party Verification

We have undergone a third-party verification of our GHG emissions data. This verification was undertaken by Bureau Veritas Japan Co. Ltd. and was intended to enhance the reliability and ensure the transparency of said GHG emissions data through independent verification as part of initiatives aimed at continuously stepping up our environmental management.
For details, please see the report posted on the website.

[Period covered by the verification]

April 1, 2021 to March 31,2022

[Scope of the verification]

①

Scope 1 and 2 GHG emissions(CO₂ emissions for energy and non-energy sources)

②

Categories of 1,6,7 of the Scope 3 GHG emissions

[Applicable Sites]

①

Denka's 10 Domestic Plants (Omi, Omuta, Chiba, Bibai, Shibukawa, Ofuna, Isesaki, Isesaki-Ota, Niigata and Kagamida)

②

Categories of 1,6,7 of the Scope 3 GHG emissions

[Scope of Calculation]

Scope 1 and 2 are energy and non-energy sources CO₂ emissions associated with business activities at Denka’s ten domestic plants from April 2021 to March 31 2022.
Scope 3 is Category 1, 6 and 7 emissions from April 2021 to March 31 2022.
However, the calculation range for each category is based on our decision.

[Verification Report]

• Independent Assurance Report (142kB) May 31 2023