Profile

Climate Change (response to TCFD recommendations)tions by the Task Force on Climate-related Financial Disclosures (TCFD) in December 2021. As a chemical manufacturer,
the Sanyo Chemical Group uses fossil fuels in its manufacturing processes for various products and emits CO2. For thisreason, it focuses on reducing CO2 emissions from business sites, and aims to achieve carbon neutrality by developing andspreading the use of products that contribute to energy conservation and CO2 emissions reduction.
scope of analysis will be expanded to the Group companies, and the 4°C scenario will be assessed to formulate
Since FY2021, the Sustainable Management Committee

management risks, including climate change, and to

Climate change risk assessment
Climate changerisk item

● RiskIntroduction /raising of carbon tax● Increase in energy procurement costs〇 Spread of CCUS

Reduction of CO2emissions● Tightening of GHG emission regulations〇 Expansion of the market for productsthat contribute to reducing GHG
emissions

measures.

(chairperson: President and CEO) has been in place
to study appropriate response to issues that may pose

World anticipated in the 1.5°C scenarioReplacementwith low-carbon
products● Top priority placed on the realization of a decarbon-

make decisions under the supervisory system of theBoard of Directors. The committee discusses the response to TCFD recommendations and reports importantmatters to the Board of Directors.
The CSR Promotion Management Committee formulates and implements specific measures to reduce CO2emissions. The committee builds systems and mechanisms and reports the status of CSR activities, which areconducted under the initiative of the committee, to theSustainable Management Committee.

FoundationCNConsidering that response to climate change is an important management issue, we showed support for the recommenda-Governance

Strategyized society, and implementation of an ambitious
climate change policy● Significant increase in the carbon tax rate
● Prohibition of internal combustion engine (ICE) sales,
shift to electric vehicles (EVs), and decarbonization ofenergy and raw materials● Mainstreaming of renewable energy● Reduction in consumption of chemicals through recycling● Manufacture of chemicals from biomass andCO2-derived raw materials● Exacerbation of natural disasters● Realization of carbon neutrality (2050)

Recyclingregulations

Changes inconsumer behavior

Impact of climate change risks〇 Opportunity

Impactassessment● Restrictions on CO2 emissions duringuse〇 Market expansion of products madefrom bio-based raw materials●
Increased costs due to the increased
use of recycled raw materials〇 Increase in demand for recyclable products

Decrease in sales of gasoline-fueled●and hybrid vehicles〇 Increase in sales of electric vehicles

Countermeasure● Reduction of GHG emissions by introducing cogeneration andsolar power generation〇 Establishment of a CCU system using our ionic liquidsHigh● Reduction of GHG emissions during the manufacture of SAP
through energy management

High〇 Expansion of sales of carbon fiber convergents for blades forwind power generation

Intermediate〇 Expansion of sales of surfactants made from bio-based rawmaterials

Intermediate〇 Development of imaging materials using recycled PET〇 Development of chemical recycling technology for urethane〇 Deployment of resin dispersants for recycled materials / organic filler dispersion

High● Increase in sales of lubricant additives that contribute to higher
fuel efficiency of gasoline-fueled and hybrid vehicles〇 Increase in sales of electrolytes in line with the electrificationof vehicles〇 Increase in demand for permanent antistatic agents for IC trays
in line with increasing demand for semiconductors〇 Development of organic cathodes for organic cathode secondary batteries that contribute to weight reduction〇 Reduction in weight of batteries in linewith the higher mileage of vehicles

Strategy
Risk management
The Group conducts scenario analysis as the first stepat the Nagoya Factory and the Kashima Factory, and inmanagement system, reviewing the manufacturing pro-the SDP Group, which account for a large proportion ofcesses, and changing the product portfolio.

toward formulating the strategy, risk management, met-

We anticipate tighter regulations due to policies, includ-

the CO2 emissions of the Group. We will also improve therics, and targets for climate change. We selected busi-

ing carbon pricing toward decarbonization, and a shift

processes and reduce CO2 emissions from our businessness risks and opportunities in the 1.5°C scenario, which

in demand for materials suitable for decarbonization assites.

aims to achieve a shift toward a decarbonized society,the main climate change risks of the Group. We also

assessed their importance, and compiled their impact

study the risks of the accelerated shift toward a circular

CO2 emissions by actively promoting sustainable man-on the Group. The scope of analysis was the business of

economy, and the emergence of innovative technologies

agement, including the review of our business portfolio.

the Company and SDP Global Co., Ltd. The assessment

toward a decarbonized society. As countermeasures,

results were discussed by the Sustainable Management

we will study the possibility of carbon dioxide capture

Committee and reported to the Board of Directors. Theand utilization (CCU) and energy shift to hydrogen, etc.,

Regarding opportunities, we contribute to reducing

The Group’s countermeasures to the main risks andopportunities of climate change
The Group’s countermeasures to the main risks andSystem and roles to promote response to TCFD recommendations

opportunities and the results of impact assessment wereWe will also set indices to promote sales expansion
and development of products that contribute to thereduction of CO2 emissions, and work on the reduction ofCO2 emissions through the supply chain.

Target of CO2 emissions reduction■■ Emissions (Scopes 1+2)
Scope 1: direct emissions from factories, such as fuel use in the manufacturing process
Scope 2: indirect emissions from the purchase of electricity and heat
（10,000 tons）

40.0

compiled. Regarding the impact assessment, the impact
30.9

in terms of the amount of money was estimated and clas-

Board of Directors

30.8
27.6

sified into three categories (high, intermediate, and low),
Sustainable Management Committee

Management Council

Chairperson: President and CEO
Secretariat: General Manager of Corporate
Planning Division

Deployment of measures tosolve important issues

Report on the status ofCSR activities

Secretariat: Manager of Corporate Social Responsibility
Promotion Department

Monitoring of implementationof CSR activities

The Group set long-term targets to achieve net zeroCO2 emissions by 2050 in Scopes 1 and 2, and createda roadmap to reduce CO2 emissions by 50% by 2030
(compared to the FY2013 level). We aim to reduce CO2
emissions significantly by introducing CCU in addition
to increasing energy use efficiency through the use ofrenewable energy and the introduction of an energy

Sanyo Chemical Group Integrated Report 2023

20.0
15.4

CSR Promotion Management Committee

All group companies / all sections

41

25.5

Metrics and targets
Chairperson: General Manager of General Affairs Division

Study of economic and social
value creation programs

depending on the magnitude.

00
2013

2020

（Base year）

2021

2022

2030

2050

（Target） （Target）（FY）

Roadmap toward carbon neutrality
https://www.sanyo-chemical.co.jp/eng/sustainability/environment/tcfd/

Sanyo Chemical Group Integrated Report 2023

42