MORE INFORMATION ON SUSTAINABILITY

Sustainability Data

Environment

Unit

FYE2019

FYE2021

FYE2020

Unit

Greenhouse Gas (GHG) Emissions

FYE2021

FYE2020

Contributions to Environmental Protection through Products

GHG Emissions Scope 1

Thousands oftonnes CO2e

14

1,061

987

GHG Emissions Scope 2

Thousands oftonnes CO2e

4,056

4,747

4,664

GHG Emissions Scope 3 –Total for the Following Categories

Thousands oftonnes CO2e

3,634

GHG Emission Reduction
Contribution

Products and Services

Thousands oftonnes CO2e

1,779

2,373

2,892

Industrial Gases

Thousands oftonnes CO2e

—

—

2,174

72,01470,890418
706

109,512
97,483
11,378651

104,142
93,40010,004738

See pages 183 and 189 for details about reporting boundaries and the calculation methods.

Category 1
Purchased goods and services

Thousands oftonnes CO2e

Category 2
Capital goods

Thousands oftonnes CO2e—

Category 3
Thousands ofFuel- and energy-related activities not included in Scope 1 and Scope 2 tonnes CO2e

—

—

3,662
883
60
276

4,340
883
43
248

Energy Usage

Energy Consumption
Electric power
Fuels
Heat

Terajoules
Terajoules
Terajoules
Terajoules

Reporting boundary: Main consolidated subsidiaries of Nippon Sanso Holdings
The energy of the consumed fuels are calculated based on the gross calorific values specified in Japan’s Act on the Rational Use of Energy. Purchased electricity and purchased steam are converted into primary energy amounts.

Environmental Impact

Category 4
Upstream transportation and distribution (Including transportation
services whose cost is borne by the Company)

Thousands oftonnes CO2e

Category 5
Waste generated in operations

Thousands oftonnes CO2e

—

N/A

2

Category 6
Business travel

Thousands oftonnes CO2e

—

1

1

Category 7
Employee commuting

Thousands oftonnes CO2e

—

3

3

Category 8
Upstream leased assets

Thousands oftonnes CO2e—

Category 9
Downstream transportation and distribution

Thousands oftonnes CO2e

—

40

37

N/A

N/A
N/A

—

N/A

N/A

Category 11
Use of sold productThousands oftonnes CO2e

—

1,583

2,436

Category 12
End-of-life treatment of sold products

Thousands oftonnes CO2e

—

N/A

N/A

Thousands oftonnes CO2e

Category 14
Franchises

Thousands oftonnes CO2e

Category 15
Investments

Thousands oftonnes CO2e

—
—

N/A

N/A

N/A

N/A

816

687

Reporting boundary: Scope 1 emissions and Scope 2 emissions represent main consolidated subsidiaries of Nippon Sanso Holdings. For information on Scope 3 emissions aggregation, pleaserefer to pages 187-188.
Scope 1 emissions: Direct emissions occurring from sources owned or controlled by the company
Scope 2 emissions: Indirect emissions from the use of electricity, steam, and heat
Scope 3 emissions: Indirect emissions other than Scope 2 emissions
GHG emissions in Japan are calculated using emission factors specified in Japan’s Act on Promotion of Global Warming Countermeasures. For GHG emissions overseas, Scope 1 emissions arecalculated using emission factors set forth in Japan’s Act on Promotion of Global Warming Countermeasures, while Scope 2 emissions are calculated using country-specific emission factors
published by the International Energy Agency (IEA). However, for electricity in Europe, beginning FYE2021 a separate emissions factor for each electricity provider is used, and emissions arecalculated making reference to the Guarantee of Origin, resulting in an increase in Scope 2 emission of approximately 244 thousand tonnes CO2e compared with using emission factors provided
by the IEA. See pages 187-188 for details on the calculation method of Scope 3 emissions.
Indicators with mark have been assured by KPMG AZSA Sustainability Co., Ltd. for FYE2021.

Tonnes

3.0
1.0
1.0
10

3.2
1.4
0.1
10

1.8
1.0
0.1
5

Tonnes29

19

7

TonnesTonnesTonnesReleases of substances designated under the Pollutant Release andTransfer Register (PRTR)
Reporting boundary: Consolidated subsidiaries in Japan, including Taiyo Nippon Sanso Corporation

Water Usage
Breakdown of sourcesof fresh water
withdrawn—

N/A

Thousands oftonnes CO2e

Category 13
Downstream leased assets

Nitrogen oxide (NOx) emissions
Sulfur oxide (SOx) emissions
Particulate emissions
Volatile organic compound (VOC) emissions

Ten thousand of m3

1,362

3,002

4,335

Water supply from local government

Ten thousand of m3

—

1,496

1,472

Municipal waterIndustrial water
Groundwater
Surface water
Other

Ten thousand of m3

—
—
—
—
—

429
1,067
276
1,230
—

490
982
258
2,602
3

Fresh Water Withdrawn

Category 10
Processing of sold products

NIPPON SANSO HOLDINGS CORPORATIONFYE2019

Ten thousand of m3
Ten thousand of m3
Ten thousand of m3
Ten thousand of m3

Reporting boundary: Gas production plants operated by domestic consolidated subsidiaries of Nippon Sanso Holdings, business locations with facilities specified under the Water Pollution
Prevention Act, and main overseas consolidated subsidiaries
In FYE2020, we added business locations with facilities specified under the Water Pollution Prevention Act to the scope of aggregation.

Waste

Waste generated*1
Waste disposed of as landfill*2
Hazardous waste generated*3
Waste recycled*4

TonnesTonnesTonnesTonnes

3,023
362
156
1,695

3,762
284
197
2,381

14,273
7,152
1,325
4,890

Reporting boundary: Main consolidated subsidiaries of Nippon Sanso Holdings
Beginning FYE2021, main overseas consolidated subsidiaries are included in the reporting boundary. Waste generated by the Gas Business in Japan is the volume for which the Company
issued a manifest..
*1 Includes valuable materials *2 Includes residue after intermediate treatment outside the Group company*3 Includes specially controlled industrial waste *4 We consider waste collected to be the amount of resources recycled.

Environmental Accounting

Environmental protection costs
Investments
Expenses
Economic benefits associated with environmental conservation activities

Millions of yen
Millions of yen
Millions of yen

9,655
844
15

1,351
1,033
1,905

7,559
1,089
8

Reporting boundary: Taiyo Nippon Sanso, Japan Fine Products Co., Ltd., Taiyo Nippon Sanso Engineering Corporation, Nissan Unyu K.K., and Thermos K.K.

From FYE2020, the figures for chemical oxygen demand (COD) emissions, nitrogen emissions in wastewater, and phosphorus emissions have been omitted from disclosure since the amounts ofthese emissions have been immaterial. The Nippon Sanso Holdings Group uses water primarily for indirect cooling, and its impacts on water quality are therefore not large. Taiyo Nippon Sanso
and its domestic subsidiaries have five business sites that are subject to restrictions on the concentration of COD, nitrogen, and phosphorous emissions in wastewater. The total amounts of COD,
nitrogen, and phosphorous emissions for all five sites amount to less than one tonne each.

178

INTEGRATED REPORT 2021

NIPPON SANSO HOLDINGS CORPORATION179

INTEGRATED REPORT 2021

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Sustainability Data

FYE2019

Unit

FYE2021

FYE2020

GHG-RelatedSociety

Unit

FYE2019

FYE2021

FYE2020

Employees and Diversity (Consolidated)

GHG Scope 1 + Scope 2

Thousands oftonnes CO2e

4,070

5,808

5,651

Number ofindividuals

18,974

19,341

19,155

Gas Business in Japan

Thousands oftonnes CO2e

2,494

2,273

2,014

Gas Business in Japan

Number ofindividuals

6,171

6,292

6,295

Gas Business in the United States

Thousands oftonnes CO2e

1,087

2,164

2,066

Gas Business in the United States

Number ofindividuals

4,916

4,724

4,534

Gas Business in Europe

Thousands oftonnes CO2e

—

871

1,049

Gas Business in Europe

Number ofindividuals

2,589

2,794

2,884

Gas Business in Asia and Oceania

Thousands oftonnes CO2e

488

499

511

Gas Business in Asia and Oceania

Number ofindividuals

4,026

4,195

4,114

Thermos BusinessThousands oftonnes CO2e

1

1

11

Thermos Business

Number ofindividuals

1,272

1,336

1,328

Thousands ofgigajoules

72,014

109,512104,142Male

15,353

15,54615,307

Gas Business in Japan

Thousands ofgigajoules

Number ofindividuals

38,31937,04833,635

Female

3,621

3,795

3,848

Gas Business in the United States

Thousands ofgigajoules

Number ofindividuals

24,50737,94636,172

Gas Business in Europe

Thousands ofgigajoules—

25,06824,96020s and below

%

16.1

16.8

16.6

Gas Business in Asia and Oceania

Thousands ofgigajoules

9,174

9,437

9,201

30s

%

24.7

24.8

24.6

Thermos BusinessThousands ofgigajoules

14

13

174

40s

%

28.9

29.0

28.6

50s and above

%

30.2

29.4

30.2

Energy Consumption

Employees*

Employees by gender

Total

Electricity Consumption

Employees by age group (Composition ratio)

Millions of kWh

7,290

10,0139,592

Gas Business in Japan

Millions of kWh

3,866

3,742

3,402

Overall average

Years

12.4

12.4

11.3

Gas Business in the United States

Millions of kWh

2,511

2,861

2,824

Men

Years

12.5

12.7

11.7

Gas Business in Europe

Millions of kWh

—

2,464

2,442

Women

Years

11.6

11.5

9.5

Gas Business in Asia and Oceania

Millions of kWh

912

945

908

1

16

41.1

41.0

42.3

Millions of kWh

1

Average age

Years

Thermos BusinessNew hires

Number ofindividuals

2,548

2,095

1,893

3

Ten thousands of m

1,362

3,002

4,335

Employee turnover rate

%

6.2

6.1

5.7

Gas Business in Japan3

Ten thousands of m

683

732

676

Female employees as a percentage of the total number of employees

%

19.1

19.6

20.1

Gas Business in the United States

3

Ten thousands of m

457

724

707

Female managers as a percentage of the total managerial positions

%

13.7

13.7

14.6

Gas Business in Europe

3

Ten thousands of m

—

1,317

2,730

Gas Business in Asia and Oceania

Ten thousands of m3

222

229

205

Ten thousands of m3

—

—

17

Total

Water Withdrawal

Total

Thermos Business
Waste Generated (Including Valuable Materials)*

1

Years of consecutive service* Aggregated from actual figures of the Nippon Sanso Holdings Group companies as of the end of each fiscal year. Due to differences in the reporting periods, part of the data includes figures asof the end of December. Due to a revision of this aggregation method, figures presented in previous fiscal years have been retroactively revised.

Employees and Diversity (Non-Consolidated)
Number ofindividuals

—

—

81*

Male

Number ofindividuals

—

—

66

FemaleNumber ofindividuals

—

—

15

Employees
Tonnes

3,023

3,762

14,273

Gas Business in Japan

Tonnes

2,943

3,675

5,505

Gas Business in the United States

Tonnes

—

—

5,691

Gas Business in Europe

Tonnes——758

Gas Business in Asia and Oceania

Tonnes——395

Female employees as a percentage of the total number of employees

%

—

—

18.5

Thermos Business

Tonnes

80

87

1,924

Female managers as a percentage of the total managerial positions

%

—

—

4.1

Total

*1 Beginning FYE2021, main overseas consolidated subsidiaries are included in the reporting boundary. Waste generated by the Gas Business in Japan is the volume for which the Company
issued a manifest.

NIPPON SANSO HOLDINGS CORPORATION180

INTEGRATED REPORT 2021

Employees by gender* Includes 47 employees working concurrently for Taiyo Nippon Sanso Corporation

NIPPON SANSO HOLDINGS CORPORATION181

INTEGRATED REPORT 2021

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Sustainability Data

Unit

FYE2019

FYE2021

FYE2020

Unit

Employees, Diversity, and Work–Life Balance (Registered employees of Taiyo Nippon Sanso Corporation)
Number ofindividuals

Employees

FYE2019

FYE2020

FYE2021

Others (Consolidated)

1,983

2,024

2,065

Employees by gender

Thousandsof yenExpenditures on social contribution initiatives

40,39649,472

109,706* Data is calculated on a consolidated basis from FYE2021.

Male

Number ofindividuals

1,758

1,775

1,789

FemaleNumber ofindividuals

225

249

276

20s and below

%

17.9

18.9

19.5

30s

%

19.8

19.7

20.1

40s

%

31.8

29.6

27.6

50s and above

%

30.5

31.8

32.9

Overall average

Years

18.1

17.9

17.8

Men

Years

18.6

18.5

18.5

Women

Years

14.4

13.8

12.9

Average age

Years

42.6

41.9

42.3

New hires

Number ofindividuals

108

109

102

Employee turnover rate*1

%

2.8

3.1

2.8

Employee training hours

Total hours
per year

5,175

5,547

2,296

Unions members

Number ofindividuals

1,106

1,146

1,195

%

55.8

56.6

57.8

0

0

0

Employees by age group (Composition ratio)

Occupational Health and Safety

Frequency rate of occupational accidents resulting in lost workdays(Number of injuries / fatalities due to occupational accidents per million work hours)
Nippon Sanso Holdings Group (Including Taiyo Nippon Sanso Group)

—

2.32

1.99

2.30

Taiyo Nippon Sanso Group

—

0.73

0.73

0.64

Reporting boundary: Consolidated subsidiaries with production divisions in Japan and overseas
Nippon Sanso Holdings include overseas subsidiaries of Thermos K.K. from January 2017 and Nippon Gases Euro-Holding from January 2019.

Years of consecutive service

Union members as a percentage of the total number of employees

Number ofindividuals

Layoffs*2
Female employees as a percentage of the total number of employees

%

11.3

12.3

13.4

Female managers as a percentage of the total managerial positions

%

1.4

1.5

1.5

Employment ratio of persons with disabilities (as of June 1 of each fiscal year)

%

2.2

2.3

2.3

Number of employees reemployed after retirement

Number ofindividuals

57

64

74

Consolidated subsidiaries in Japan including Taiyo Nippon Sanso Corporation; Matheson Tri-Gas, Inc.; Nippon Gases Euro-Holding S.L.U. andEmployees using childcare leave systems

Number ofindividuals

7

7

16

its consolidated subsidiaries; Leeden National Oxygen Ltd.; Nippon Sanso Ingasco, Inc.; Nippon Sanso Ingasco Philippines, Inc.;

Men

Number ofindividuals

2

0

6

Women

Number ofindividuals

5

7

10

Number ofindividuals

0

0

0

61.3

62.5

60.2

4

0

0

Employees using nursing care leave or long-term nursing care leave
Usage rate for annual paid leave*3%
Number ofindividuals

Employees using volunteer leave system*1 Employee turnover rate is the number of employees leaving the Company during the fiscal year (including mandatory-age retirees and excluding personnel transferring to other Group
companies) divided by the number of employees at the end of the fiscal year
*2 Employees leaving the Company for reasons attributable to the Company (dismissals)*3 The number of new days granted in the reporting year is the denominator. The number of days used in the reporting year is the numerator. The denominator does not include the number ofdays carried over from the previous year.

NIPPON SANSO HOLDINGS CORPORATION

182

INTEGRATED REPORT 2021

Reporting Boundary
Main consolidated subsidiaries

Nippon Sanso Ingasco Clark, Inc.; Nippon Sanso (Thailand) Co., Ltd.; Ayutthaya Industrial Gases Co., Ltd.; Taiyo Gases Co., Ltd.;
Nippon Sanso Vietnam Joint Stock Company; Taiyo Nippon Sanso India Pvt. Ltd.; Shanghai Taiyo Nippon Sanso Gas Co., Ltd.;
Suzhou Taiyo Nippon Sanso Gas Co., Ltd.; Dalian Changxing Island Taiyo Nippon Sanso Gas Co., Ltd.; Dalian Taiyo Nippon Sanso Gas Co., Ltd.;
Yangzhou Taiyo Nippon Sanso Semiconductor Gases Co., Ltd.; Nippon Sanso Taiwan, Inc.; Taiyo Nippon Sanso Engineering Taiwan, Inc.;Fu Yang Gas Co., Ltd.; Supagas Pty Ltd; Nippon Sanso Myanmar Co., Ltd.; Top Thermo Mfg. (Malaysia) Sdn. Bhd.; Vacuumtech Philippines Inc.

Beginning FYE2021, environmental data includes the HyCO plant and liquid carbon dioxide plant of Nippon Gases Euro-Holding S.L.U. and its consolidated subsidiaries, Top Thermo Mfg. (Malaysia) Sdn. Bhd and Vacuumtech Philippines Inc.

NIPPON SANSO HOLDINGS CORPORATION183

INTEGRATED REPORT 2021

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Sustainability Data

GovernanceUnit

FYE2019

FYE2021

FYE2020

Unit

Activities of Committees

FYE2019

FYE2021

FYE2020

Activities of Committees
Number ofindividuals

6

9

9

Internal directors

Number ofindividuals

4

7

7

Independent outside directors

Number ofindividuals

2

2

2

Directors serving concurrently as executive officers

Number ofindividuals

3

4

3

50.0

44.4

33.3

Management Configuration

Percentage of directors serving concurrently as executive officers%

Independent outside directors as a percentage of total Board of
Directors’ members

%

33.3

22.2

22.2

Female directors as a percentage of total Board of Directors’ members

%

0.0

0.0

0.0

Term of appointment

Years

1

1

1

Frequency of Board of Directors’ meetings

Times

15

12

11

Attendance at Board of Directors’ meetings

%

97.8

99.1

98.0

Attendance of independent outside directors at Board of Directors’ meetings

%

96.7

100.0

100.0

Number of directors attending less than 75% of Board of Directors’ meetings

Number ofindividuals

0

0

0

Audit & Supervisory Board members

Number ofindividuals

4

4

4

Internal Audit & Supervisory Board members

Number ofindividuals

1

1

1

Independent outside Audit & Supervisory Board members

Number ofindividuals

3

3

3

Independent outside Audit & Supervisory Board members as a percentage of total Audit & Supervisory Board members

%

75.0

75.0

75.0

Female Audit & Supervisory Board members as a percentage of total
Audit & Supervisory Board members

%

0.0

0.0

0.0

Frequency of Audit & Supervisory Board meetings

Times

18

16

16

Attendance at Audit & Supervisory Board meetings

%

100.0

92.2

100.0

Attendance of independent outside Audit & Supervisory Board members
at Audit & Supervisory Board meetings

%

100.0

89.6

100.0

Number of Audit & Supervisory Board members attending less than 75%
of Audit & Supervisory Board meetings

Number ofindividuals

0

1

0

Years

65.5

64.3

64.8

Number ofindividuals

23

22

7

%

0.0

0.0

0.0

Average age of directors and Audit & Supervisory Board members
Number of executive officers*
Female executive officers as a percentage of total executive officers* Figures for FYE2021 represent executive officers of Nippon Sanso Holdings (including the president). Figures for FYE2020 and earlier represent executive officers of Taiyo Nippon Sanso
Corporation (including the president).

NIPPON SANSO HOLDINGS CORPORATION184

INTEGRATED REPORT 2021

Advisory Committee on Appointments and Remuneration
Number ofindividuals

3

3

3

Internal directors

Number ofindividuals

1

1

1

Independent outside directors

Number ofindividuals

2

2

2

Members

Frequency of meetings

8

11

6

100.0

100.0

100.0

Number ofindividuals

17

17

13

Times

21

16

6

%

99.1

97.1

100.0

Number ofindividuals

12

12

15

Times

2

2

1

%

95.5

100.0

93.3

Number ofindividuals

—

—

17

Times

—

—

1

%

—

—

100.0

Number ofindividuals

—

—

17

Times

—

—

1

%

—

—

100.0

Number ofindividuals

20

20

20

Times

1

0

0

100.0

—

—

Times

Attendance%Management Committee
Members
Frequency of meetings
Attendance*

1

Investment Committee
Members*2
Frequency of meetings
Attendance*

1

Global Strategy Review Committee
Members
Frequency of meetings
Attendance
Global Risk Management Committee
Members
Frequency of meetings
Attendance
Global Compliance Committee
Members
Frequency of meetings*3
Attendance%*1 Average attendance rate
*2 Excluding additional attendees and secretariat*3 Not held during FYE2020 or FYE2021 due to COVID-19

NIPPON SANSO HOLDINGS CORPORATION185

INTEGRATED REPORT 2021

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Sustainability Data

Unit

FYE2019

Calculation Methods for Scope 3 GHG Emissions

FYE2021

FYE2020

Remuneration for Officers

Remuneration for directors (excluding outside directors)
Millions of yen

249

255

263

Basic remuneration

Millions of yen

151

162

169

Corporate political contributions

Millions of yen

97

93

94

Millions of yen

25

25

27

Millions of yen

25

25

27

Millions of yen

102

102

100

Millions of yen

102

102

100

Millions of yen

212

198

210

Remuneration for audit services

Millions of yen

209

195

209

Other remuneration for independent auditors

Millions of yen

3

3

1

Total

Remuneration for Audit & Supervisory Board members(excluding independent outside members)
Total
Basic remuneration

Referenced Guidelines
Our Scope 3 GHG emissions are calculated based on the Corporate Value Chain (Scope 3) Accounting and Reporting Standard
issued by the GHG Protocol. For emission factors, we used the emission factor database Ver. 3.1 provided in the Green Value
Chain Platform, the Inventory Database for Environmental Analysis (IDEA v2) for supply-chain GHG emissions accounting, andinformation included in MiLCA Ver. 2, a life-cycle assessment software developed by the Japan Environmental Management
Association for Industry.
Reporting Boundary
Unless otherwise specified, the data covers consolidated subsidiaries in Japan, including Taiyo Nippon Sanso Corporation

Remuneration for independent outside directors
Total
Basic remuneration

Calculation Method by Category

Category 1
Purchased goods and services

Calculated by multiplying the amounts of products and services in physical or monetary units purchased by Taiyo Nippon Sanso Corporation by the respective emission factor for each type of productor service. However, emissions from transport and shipping services and from oxygen, nitrogen, andargon purchased from Taiyo Nippon Sanso’s consolidated subsidiaries or affiliates are included in thereporting boundary of Scope 1 or 2, or categories 4 and 15 of Scope 3, and are therefore deductedfrom the procured amounts used for this calculation.

Category 2
Capital goods

Calculated by multiplying the amounts of capital investment during each reporting fiscal year by anemission factor per price of capital goods.

Category 3
Fuel- and energy-related activities
not included in Scope 1 and 2This category includes emissions associated with the extraction, production, and transportation of­purchased fuels and those consumed in the production of electricity and steam that are purchasedby the Group.
Fuels: Calculated by multiplying the amount purchased during the fiscal year by an emission factor
for each fuel type.
Electricity and steam: Calculated by multiplying the amount purchased from outside the Group by
the upstream emission factor for each purchased energy reflecting electricity transmission loss.

Category 4
Upstream transportation and distribution (Including distribution services
whose cost is borne by the Group)

Calculated by subtracting the CO2 emissions from logistics subsidiaries, which are included in Scope 1
emissions, from the CO2 emissions reported for Taiyo Nippon Sanso Corporation and Nippon Ekitan
Corporation as specified shippers in accordance with the Act on Promotion of Global WarmingCountermeasures.
CO2 emissions related to transportation and distribution of products for which Taiyo Nippon Sanso
Corporation and Nippon Ekitan Corporation bear the transportation costs are included in this category.

Category 5
Waste generated in operations

Calculated by multiplying industrial waste output by the emission factors for each waste type(including transportation stages).

Category 6
Business travel

Calculated by multiplying the number of employees of consolidated subsidiaries in Japan, including
Taiyo Nippon Sanso Corporation by the emission factor (0.13 tonnes of CO2/person/year).

Category 7
Employee commuting

Taiyo Nippon Sanso Corporation employees: For train commuters, the annual payment for commuter
passes is multiplied by an emission factor per transportation expense. For car com­muters, the roundtrip distance is multiplied by the annual number of commuting days and an emission factor perperson-kilometer for passenger car.
Employees of domestic consolidated subsidiaries: The number of employees is multiplied by theannual number of commuting days, and multiplied by the emission factor per commuting day.

Remuneration for independent auditors
Total

OthersAnti-takeover measures—

Not adopted

Not adopted

Not adopted

Code of ethics—

AdoptedAdoptedAdopted

Policy on transparency of tax affairs—

Adopted(Internal)

Adopted(Internal)(Currently disclosed on
the Company website)

Corporate political contributions

YenIntellectual Property and Researchand Development

Unit

0

FYE2019

Adopted00

FYE2021

FYE2020

Intellectual Property

Registered patents
Patents

1,147

1,255

1,560

Japan

Patents

774

802

925

Overseas

Patents

373

453

635

Total

* Figures for FYE2019 and earlier are based on a December 31 fiscal year-end. Figures for FYE2020 and later are based on a March 31 fiscal year-end. Figures through 2020 represent
Taiyo Nippon Sanso Corporation on a non-consolidated basis, while figures for 2021 represent the total for all operating companies.

Research and Development

Research and Development
Millions of yen

3,494

3,389

3,315

Gas Business in Japan

Millions of yen

2,846

2,691

2,694

Gas Business in the United States

Millions of yen

614

658

589

Thermos BusinessMillions of yen

34

39

32

Total

NIPPON SANSO HOLDINGS CORPORATION186

INTEGRATED REPORT 2021

NIPPON SANSO HOLDINGS CORPORATION187

INTEGRATED REPORT 2021

MORE INFORMATION ON SUSTAINABILITY

Sustainability Data

Calculation Methods for GHG Emission Reduction Contribution

Category 8
Upstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are not calculated.

Category 9
Downstream transportation anddistribution

The emissions associated with the transportation of sold products whose cost is borne by Taiyo
Nippon Sanso Corporation and Nippon Ekitan Corporation fall within category 4 as the Group basically bears the cost of transporting products.

Category 10
Processing of sold products

The Taiyo Nippon Sanso Group’s main product group is gas, and since it is difficult to rationallycalculate the GHG emissions associated with the processing of these products, the emissions are
not calculated.

Category 11
Use of sold products

The amount of CO2 emissions generated from the use of propane gas (LP gas), liquefied carbon
dioxide gas, and dry ice, and from use of electricity for the operation of its ASUs during the service
life, which were sold to customers outside of the Taiyo Nippon Sanso Group.

Category 12
End-of-life treatment of sold products

The Taiyo Nippon Sanso Group’s primary products are gases (oxygen, nitrogen, and argon). After use,these gases return to the atmosphere and do not become waste. Furthermore, since the gas containers are loaned, and therefore the amount of waste from sold is negligible, emissions in this category
are not calculated.

Category 13
Downstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are not calculated.

We include the following products and services sold by consolidated subsidiaries of Nippon Sanso Holdings and certain affiliatedcompanies in the calculation of GHG emission reduction contribution. The calculation method per product or service is as follows. The CO2 emission factor used for electricity is 0.470 t-CO2/MWh.
Product or Service

Calculation Methods of GHG Emission Reduction Contribution

Combustion-type exhaust gas
abatement system
Reporting Boundary: Consolidated subsidiaries
in JapanSF6 recovery service
Reporting Boundary: Consolidated subsidiaries
in Japan

SCOPE-Jet®
Reporting Boundary: Consolidated subsidiaries
in Japan

MG Shield®
Category 14
Franchises

As the Group does not have any businesses in this format, there are no emissions in this category.

Reporting Boundary: Consolidated subsidiaries
in Japan

New refrigerants

Category 15
Investments

Calculated by multiplying the emissions of each of the seven main affiliates of Taiyo Nippon Sanso
Corporation in Japan by the Company’s shareholding ratio (as of the fiscal year-end). The sevencompanies’ GHG emissions are based on their actual emissions in the reporting period.

Reporting Boundary: Consolidated subsidiaries
in Europe

Nitrogen gas supply system for laser
processing (PSA)
Reporting Boundary: Consolidated subsidiaries
in Japan

Shuttle Chef®
Reporting Boundary: Consolidated subsidiaries
in JapanHydrogen station
Reporting Boundary: Consolidated subsidiaries
in Japan

Oxygen-enriched combustionin blast furnaces
Reporting Boundary: Consolidated subsidiaries
in Japan and affiliated companies in JapanNIPPON SANSO HOLDINGS CORPORATION188

INTEGRATED REPORT 2021

An average processing capacity of 0.6 L/min for nitrogen trifluoride (NF3) gas per one combustiontype exhaust gas abatement system was assumed, and this value was multiplied by the number ofsuch systems that were installed in FYE2019 and FYE2021, the number of operating hours per year,
and the global warming potential (GWP) of NF3 to calculate the GHG emission reduction contribution. The amount of CO2 emissions from fuel used in combustion equipment was deducted.
The volume of sulfur hexafluoride (SF6) gas recovered in FYE2021 was multiplied by its GWP to calculate GHG emission reduction contribution.
Based on actual observed values at two electronic furnace manufacturers who had introduced
SCOPE–JET®, the electricity-saving effect per volume of jet oxygen (kWh/Nm3) was calculated. The
ratio of the number of plants that have introduced SCOPE–JET® to the total number of electric furnace manufacturing plants was multiplied by the volume of crude steel products by electric furnaces
in Japan in FYE2021, and the resulting number was assumed to be the production volume of crude
steel contributed by the electricity saving from SCOPE–JET®. The amount of oxygen consumed by
SCOPE–JET® in the production of this crude steel, and the amount of electricity saved per volumeof oxygen were multiplied by the CO2 emission factor for electricity to calculate the GHG emission
reduction contribution. The amount of the CO2 emissions generated during the manufacture of
the oxygen was deducted.
The amount of SF6 gas whose use was avoided through use of MG Shield® sold in FYE2021 was
multiplied by the gas’ GWP to calculate the GHG emission reduction contribution.
We calculated the amount of reduction contribution by assuming a 7% per year leakage rate of new
refrigerants sold in FYE2021, and multiplying leakage amount by the difference between the GWP ofalternative refrigerants and the GWP of new refrigerants.
The annual power consumption of Taiyo Nippon Sanso Corporation’s conventional air compressor
was compared with that of the energy-saving type nitrogen gas supply system to calculate the annual
electricity saving from using the energy-saving type system. The annual electricity saved was multiplied by the CO2 emission factor for electricity and the cumulative number of units sold fromFYE2012 to FYE2021 to calculate the GHG emission reduction contribution.
The amount of electric power usage saved per year from using Shuttle Chef® when cooking was
multiplied by the CO2 emission factor for electricity and the total number of units sold over the three
years from FYE2019 to FYE2021 to calculate the GHG emission reduction contribution.
The annual CO2 emissions, which include emissions during the manufacture of the hydrogen, emitted
by fuel cell vehicles (FCVs) filled with hydrogen at hydrogen stations sold or operated by Taiyo Nippon
Sanso Corporation and operated during FYE2021 was compared with the annual CO2 emissions ofgasoline cars to calculate the GHG emission reduction contribution.
We calculated the GHG emission reduction contribution as the difference between the amount CO2
emissions in the production of crude steel using 100% coke and the production of crude steel via
pulverized coal combustion based on crude steel production by the six steel companies to whom
Taiyo Nippon Sanso Group supplied oxygen in FYE2021.
This calculation method is described in “The Impact of Oxygen on Reducing CO2 Emissions in Blast
Furnace Ironmaking” (July 2011) by Dr. Michael F. Riley.
We deducted the amount of CO2 emitted during the production of oxygen and the pumping ofgas into the blast furnace.

NIPPON SANSO HOLDINGS CORPORATION189

INTEGRATED REPORT 2021

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NIPPON SANSO HOLDINGS CORPORATION191

INTEGRATED REPORT 2021