Main Points of
KEIDANREN’s Commitment to a Low Carbon Society
Fiscal 2020 Follow-up Results Summary<Performance in fiscal 2019> [final version](Tentative Translation)
March 31, 2021
KEIDANREN(Japan Business Federation)

Outline of KEIDANREN’s Commitment to a Low Carbon Society Contributing to global long-term global warming countermeasures on a global scale
through efforts based on four pillars.
※62 participating industries

PhaseⅡ

Efforts toward 2020

Pillar1

Efforts toward 2030

Emission reductions from domestic business operations

Setting up
2020 target

Setting up
2030 target

Pillar2

Strengthening co-operation with other interested groups

Pillar3

Promoting contribution at the international level

Pillar
4（Contribution through low-carbon energy-saving products and services）（Deploying and supporting products and technologies on a global scale, including developing countries)

Development of innovative technologies
P

D

C A

（Verification by the Third Party Evaluation Committee)

Towards significant global GHG emission
reductions

PhaseⅠ1

Pillar 1: Emission reductions from domestic business operations- Performance in CO2 emissions  CO2 emissions in FY2019
1. Relative to previous fiscal year (fiscal 2018): reductions were achieved in all sectors (industrial,
energy conversion, commercial), except transportation*Impacts of COVID-19 were limited.

2. Relative to FY2013(*): reductions were achieved in all sectors (industrial, energy conversion,commercial, transportation)(*) baseline year for Japan’s 2030 target<CO2 emissions after power distribution>

SectorIndustrial
Commercial
Transportation
Energy conversion*1

Target industries/
participating ind.
31/31 industries
14/16 industries
12/12 industries
3/3 industries

FY2018emissions354.86 Mt-CO2
15.67 Mt-CO2
125.80 Mt-CO2
380.67 Mt-CO2*1<CO2 emissions before power distribution>-15.6%-10.9%

Relative toprevious FY(FY2017)-2.8%－※2-13.8%-8.7%-32.3%-5.2%-29.1%-4.1%+11.3%-6.9%

Relative to
FY 2005

Relative to
FY 2013*1 Emissions before power distribution are provided for the energy conversion sector; and emissions after power distribution, for other sectors.
*2 Emissions in the commercial sector in fiscal 2005 are not provided due to the status of data collection.

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Pillar 1: Emission reductions from domestic business operations- Factor analysis of change in emissions: relative to FY2018 Breakdown of factors of change in CO2 emissions① Change in economic activity Increase in commercial and transportation sectors, reduction in other sectors←economic situation, changes in demand, etc. *A limited number of industries attributed decreased economic activities to COVID-19.

② Change in CO2 emission factors（decarbonization of energy)
Reductions in all sectors ← Continued operation of restarted nuclear power plants※, utilization of renewable energy,
deployment of high-efficient thermal power plants, etc.

※Ohi Power Station Units 3 & 4, Genkai Nuclear Power Station Units No. 3 & 4 were restarted in fiscal 2018.

③ Change in energy consumption per unit economic activity (energy saving efforts)
Reductions in the commercial sector ←improvements in facility efficiency and operations, etc.

<by sector>③+0.9％①-3.3％②-0.4％

From previous FY: -2.8%
2018

2019

Industrial<Main factors>②：Fuel conversion, energy recovery③：Increased share of fixed costs due toreduced production activities, aging
facilities, increase in energy-intensive
production methods due to high-mix lowvolume production③+1.2％①-3.5％②-4.6％①+5.6％

From previous FY: -6.9%
2018

2019

Energy conversion<Main factors>②：Continued restarted nuclear
power plants, renewable energy,
high-efficient thermal power plants③：Reduced efficiency due toincreased output control at thermal
power plants used as adjustableelectricity sources of renewableenergy②-1.9％③-7.8％

From previous FY: -4.1%
2018

2019

Commercial<Main factors>①：Substantial increase incommunications traffic②：Enjoying the benefits ofdecarbonizing energy, as anenergy-intensive sector③：Improved efficiency offacilities, equipment andoperations①+8.8％③+2.7％②-0.2％

From previous FY: +11.3%
2018

2019

Transportation<Main factors>①：Larger coverage③：Reduced transport efficiency due toreduced loading ratio in the context of
economic stagnation

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Pillar 1: Emission reductions from domestic business operations-Probability of target achievement and rate of progress Implement effective measures through the PDCA cycle
 Renew to more ambitious targets, according to status of achievement
 Consider and account for target levels that will enable maximum social commitment
Phase I (FY2020) target

Phase II (FY2030) target

47/62 industries have already achieved their targets

26/62 industries have already achieved their targets- 24 industries have renewed their targets to more

-15 industries have renewed their targets to more
ambitious targets.
（no industy renewed their targets this fiscal year)＜Status of FY 2020 target achievement and review＞

ambitious targets(2 industries renewed their target this fiscal year)＜Status of FY2030 target achievement and review＞

Maximum efforts toward target, 15

Reviewing target, etc., 10

Renewed target, 5

Renewed target, 9Renewed target, 10

Reviewing target, etc., 21

Achieved target, 26

Renewed target, 15
Achieved target, 47

Reviewing target, etc., 17
Reviewing target, etc., 37*Industries that have renewed their targets have been categorized according totheir current achievement status.
*Industries that are currently reviewing their targets will enhance their efforts
toward Phase II and continue to take measures, including renewing their Phase
II target with a view to long-term .

Maximum efforts toward target, 36*Industries that have renewed their targets have been categorized according totheir current achievement status.
*It is important for industries that are currently reviewing their targets tocontinue to analyze trends and make efforts to consider and account for
maximized target levels.

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Status of deployment of renewable energy , energy recovery andutilization
With a view to achieving a low carbon society, more industries are deploying anddeveloping renewable energy (solar power, hydropower, wind power, biomass andgeothermal, etc.)Seek CO2 emission reductions by recovering and utilizing waste heat and byproductgases generated during manufacturing or fuel use, thus reducing fuel consumption
Deployment of renewable energy

Energy recovery and utilization

Renewable power generation (Japan Paper Association, Liaison

Recovery of byproduct energy, including waste heat,use of recovered steam for power generation (The Japan

Group of Japanese Electrical and Electronics Industries for Global Warming,
Japan Cement Association, Japan Auto Parts Industries Association, Japan
Rubber Manufacturers Association, Japan Soft Drink Association, Japan Dairy
Association, Japan Machine Tool Builders’ Association, Brewers Association ofJapan, Japan Industrial Vehicles Association, Electric Power Council for a Low
Carbon Society, Telecommunications Carriers Association, Japan Franchise
Association, Japan Foreign Trade Council, Telcom Services Association,
Association of Japanese Private Railways)

Use of wood biomass at onsite power generation
facilities (Japan Cement Association)
Deployment of biomass power plant (Japan Paper

Iron and Steel Federation)

Use of waste as alternatives for heat (Japan Cement
Association)

Utilization of surplus heat for power generation (Japan

Mining Industry Association, etc.)

Utilization of waste heat from boilers as a heat sourcefor HVAC at plants (Japan Rubber Manufacturers Association,

etc.)

Association)

Use of hydropower at business establishment (Japan

Aluminium Association)

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Pillar 2: Strengthening co-operation with other interested groupsMany industries contribute to achieving avoided emissions along the value chain(procurement, provision of products and services, use, disposal, etc.)
Active communication through the quantification of reductions and Keidanren’s concept bookin order to raise public recognition of products and services that contribute to society-wide
emission reductions＜Examples of emissions reduction efforts along the value chain＞
Procurement of products that emit less before manufacturing
Biomass polyethylene containers (Federation of Pharmaceutical
Manufacturers’ Associations of Japan)<Approach to avoided C02 emissions>

Provision of products and services that emit less during use
High-function steel (The Japan Iron and Steel Federation)
Residential thermal insulation material (Japan Chemical Industry
Association)
High-efficiency IT products and solutions (Liaison Group of JapaneseElectrical and Electronics Industries for Global Warming)
Improved fuel economy, next-generation vehicles (Japan Automobile
Manufacturers Association)
High mileage tires (Japan Rubber Manufacturers Association)
Smart meter (Electric Power Council for a Low Carbon Society)
Latent heat recovery type high-efficiency oil hot water boiler (Petroleum
Association of Japan)
Provision of lightweight products that emit less during transport
Lightweight paper and cardboard (Japan Paper Association)
Disposal of products (3R)
Effective utilization of waste and byproducts (Japan Cement Association)
Reuse of glass bottles (Japan Dairy Industry Association)

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Pillar 3: Promoting contribution at the international level

Many industries contribute to reducing global GHG emissions through overseas
transfer of our advanced products and services and overseas deployment of our
products and services.
Industries are promoting the quantification of emissions avoided throughinternational contribution, as done in measures taken under Pillar 2.

＜Examples of avoided emissions overseas＞
Overseas transfer of technologies and knowhow

Provision of low-carbon products and services

Ion-exchange membrane for the production of caustic
soda (Japan Chemical Industry Association)
CDQ (coke dry quenching) and TRT (top-pressure
recovery turbine) power generation (The Japan Iron andHigh efficient thermal power generation andrenewable power generation technologies, highefficiency IT products, solutions (Liaison Group of Japanese

Steel Federation)

Aluminum recycling (Japan Aluminum Association)
Renewable power generation (Electric Power Council for a

Low Carbon Society, The Japan Gas Association)

Renewable energy IPP (independent power producer)
business (Japan Foreign Trade Council)
RE100 plants (Japan Rubber Manufacturers Association)
CO2 zero emission plants (Japan Industrial Vehicles

Association)

Electrical and Electronics Industries for Global Warming
Prevention)

Next-generation vehicles (Japan Automobile Manufacturers
Association)

Energy-saving ships (Shipbuilders’ Association of Japan &Cooperative Association of Japan Shipbuilders)

Permanent magnet synchronous motors (PMSM) for
railway vehicles (Japan Association of Rolling Stock Industries)
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Pillar 4: Development of innovative technologies

The creation of completely new innovations is key to achieving significant greenhouse gas
reductions in the medium- to long-term, as drastic reductions cannot be achieved along thelines of conventional measures.
Medium- to long-term R&D that the private sector finds difficulty in committing to alone will be
continued through collaboration with the Government.

＜Examples of innovative technologies and services＞＜Examples of innovative technology development in
partnership with the Government＞

Deployment started

Aluminum rolling industry

Green chemistry (Federation of Pharmaceutical Manufacturers’
Associations of Japan)
Cellulose nanofiber (Japan Paper Association)
Smart energy networks (The Japan Gas Association)
5G (Telecommunications Carriers Association)

To be deployed in 2020 and beyond
Biofuels (Japan Paper Association)
High-efficiency petroleum refining technologies (Petroleum

Association of Japan)

LNG bunkering technologies (The Japan Gas Association)
Alternative aviation fuels (Scheduled Airlines Association of Japan)

R&D under the NEDO “Demonstration Project forAchieving a Horizontal Closed-Loop Vehicle
Recycling System”
Copper and brass industry
R&D under the NEDO “Development of ‘Heteronano’ super high strength copper alloy material
contributing to energy conservation strategy”

To be deployed in 2030 and beyond

Shipbuilding industry

COURSE50, ferrocoke (The Japan Iron and Steel Federation)
Artificail Photosynthesis Project (Japan Chemical Industry Association)
High-temperature superconductive cables (The Japanese ElectricWind Challenger Program (next-generation sailing
vessel)Wire & Cable Makers’ Association)

Innovative cement production process (Japan Cement Association)

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Challenges and measures to be taken(1) Pillar 1 (Emission reductions from domestic business operations)
・ Promotion of sustained efforts toward industry-specific targets
・ Close observation of COVID-19 impacts
・ Accounting for the validity and progress of targets(2) Pillar 2, 3 (Strengthening co-operation with other interested
groups/Promoting contribution at the international level)
・ Development and domestic and overseas deployment of energysaving products and services of excellence with a view to emission
reductions on a global scale
・ Further promotion of “visualization” of avoided emissions(3) Pillar 4 (Development of innovative technologies)
・Promotion of social deployment of innovative technologies
・Promotion of R&D led by industry-government-academia
collaboration that will serve substantial reductions in the long-term
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Reductions achieved in six years in relation to Pillar 1
 CO2 emissions in the industrial sector were reduced by approx. 10.9% from fiscal 2013 to 2019.
 Total CO2 emissions (after electric power distribution) in all sectors (industrial, energy conversion,commercial and transportation) were reduced by approx.10.7% from fiscal 2013 to 2019.
＜Changes in emissions from participating industries and companies -performance in FY2013～2019-＞
Fiscal 2020 Follow-up Results, final count (after electric power distribution)

Total, all sectors

Industrial sector
total CO2 emissions (10,000t-CO2）

40,00039,807

Approx. 10.9%
reductions in 6 years

38,00035,48636,00034,00032,000

total CO2 emissions (10,000t-CO2）

60,00042,00059,662

Approx. 10.7%
reductions in 6 years

55,00053,30050,00045,00040,00030,000FY2013

FY2019FY2013

FY2019※ The final version reports total CO2 emissions (after electric power distribution) from 60 industries outof the 62 participating industries. Real Estate Companies Association of Japan and Japan Building
Owners and Managers Association have not reported emissions, and are thus not included in thegraph.
※The coverage of emissions differ between fiscal 2013 and fiscal 2019 for reasons including offshoring.

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〔Reference〕Avoided emissions across the global value chain Formulation of the Long-term Vision(Long-term global warming countermeasures toward 2050 ） Keidanren promotes multidimensional global warming countermeasures in addition to Keidanren’s
Commitment to a Low Carbon Society
Avoided emissions across the global value chain

Long-term vision（１）Contribute to CO2 emission reductions on a global scale from the （ １ ） Companies and organizations proactively present their businessperspective of product and service life cycles through collaboration
approach and long-term vision of long-term global warming
among various actors along corporate value chains spread across thecountermeasures toward 2050, thus accelerating ESG investment andworld
global warming countermeasures worldwide.
（２）”Visualize” avoided CO2 emissions and accelerate the deployment of （ ２ ） In Oct. 2018, Keidanren called on its member companies andexcellent products and services.
organizations to formulate a “Long-term Vision” of global warming
countermeasures toward 2050.
（３）Published concept book “Guidelines for Quantifying GHG emission
reductions of goods or services through Global Value Chain”. (Nov（３）As a result, 129 companies and organizations have formulated and2018)
134 companies andannounced their Long-term Visions.
Introduces 29 measures taken by 18 diversified industries/companies.
organizations, have started discussing the formulation of a LongExamples of measures (excerpts)
term Vision. (as of Feb. 28, 2021)
・High-tensile strength steel (The Japan Iron
and Steel Federation)・Aircraft material (Japan Chemical Industry
Association)・Electric vehicles (Japan Automobile
Manufacturers Association), etc.

（４）Status of formulation / consideration of Long-term Visions can befound on the Keidanren website. (Information is updated as
required.)
URL :http://www.keidanren.or.jp/policy/2019/001.html

URL : http://www.keidanren.or.jp/en/policy/vape/gvc2018.pdf（※）These measures differ in character from Keidanren’s Commitment to a Low Carbon Society which embraces targets that must be firmly achieved;
and therefore, Long-term Visions do not constitute a part of the PDCA process under the follow-up.

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〔Reference〕Challenge Zero
(1)
(2)
(3)

In cooperation with the Japanese government, Keidanren strongly publicizes and encourages
innovation actions that companies and organizations take to realize a decarbonized society,both in Japan and abroad.
Keidanren encouraged its members to participate in the Challenge Zero and to submit
introductions of innovations; launched in June 2020.
As of end of February 2021, 181 participating companies and organizations havesubmitted 379 challenges.

Encouraging ESG investment and collaboration through “Challenge Zero” (Image)Company

Industrial
Organization

Collaboration andreflection to
innovation policies

Government

Collaboration

Collaboration
Collaboration

Company

Company
ESG Investment

URL: https://www.challenge-zero.jp/

University/
Research
InstituteFinancial
Institution/Investor

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