Environmental Management System

In compliance with ISO 14001, the international standard for environmental management systems, we have established a structure that oversees the entire company while carefully monitoring each site through internal audits and environmental committees. The committees set annual targets using the Sustainable Development Goals (SDGs) as guidance, in areas such as greenhouse gas (GHG) emission reduction and waste management, as described below:

ISO 14001 Certification (as of Mar 31, 2023)

We encourage all sites to commit to ISO 14001 as part of our continuous effort for environmental conservation. Acquisition status at our sites in and outside Japan is as follows:

■Sites in Japan

■Sites outside Japan

EcoVadis Certification

Plasmine Technology and LAWTER have been certified by EcoVadis, the world’s most trusted business sustainability rating provider. Since its founding in 2007, the France-headquartered organization has evaluated more than 100,000 companies from over 200 industries and 175 countries, as of 2022. Our two companies were highly evaluated on the criteria of environmental protection, ethics, labor and human rights, and sustainable procurement, both receiving Silver Medals that place them among the top 25% of companies assessed by EcoVadis.

Recognition for Sustainable Business Management

Harima was recognized as one of the leading companies in sustainable business management and was rated the highest rank in the “SMBC ESG/SDGs Finance Program”. This program is a syndicated loan initiative conducted by established Japanese bank, Sumitomo Mitsui Banking Corporation (SMBC), that encourages funding towards socially-responsible businesses. Companies are evaluated based on strict criteria regarding environment, society, and corporate governance (ESG), as well as contributions to Sustainable Development Goals (SDGs) realization. Harima’s initiative to combat climate change, respect towards employees, and socially-conscious management were acclaimed as outstanding examples.

Wildlife Conservation

Preserving biodiversity is a crucial aspect of environmental conservation. At Kakogawa Plant in Japan, we utilize its spacious area to cultivate various plants including bonesets, an endangered species that has been red-listed by both regional and national authorities. Their numbers have decreased significantly in recent years due to urban development, construction work and herbicide use. We will continue efforts to protect the local vegetation for a vibrant and diverse ecosystem.

Environmental Input-Output Model

We strive to accurately assess the environmental impact of our operations in the procurement, production, waste disposal and recycling processes.

Reduction of Environmental Impact

Fuel Consumption

Components resulted during crude tall oil distillation are used as biomass fuel, letting us utilize every bit of the raw material’s value. In Mar 2005, we established our very own biomass power plant at Kakogawa Site, and since 2009, more than 60% of all energy is sourced from biomass. Decrease in production at related paper companies due to the pandemic as well as higher CTO prices have caused difficulties in the procurement of raw materials, leading to lower rates of biomass fuel used. Biomass fuel used in FY2022 further decreased compared to FY2021, while kerosene and heavy oil used for boilers increased. We will continue to reduce environmental impact through transition to natural gas and initiatives to reduce energy.

NO_X, SO_X, and Chemical Oxygen Demand (COD) Emissions

We strictly monitor SO_X, NO_X, and Chemical Oxygen Demand (COD) emissions, and periodically modernize manufacturing equipment and processes to limit their environmental impact, such as implementing low-NO_X burners for boilers and using high-quality fuel and desulfurizers to curb emissions.

Initiatives for Climate Action

While energy use is now an indispensable part of everyday life, we continue to explore energy sources that can successfully replace fossil fuels. Renewable resources are instrumental in achieving this goal, as non-depleting materials are essential to a sustainable future. Having worked closely with nature for over 70 years, we are committed to making efficient use of renewable resources and reducing environmental impact.

CO₂ Emissions

Our use of biomass fuel has contributed significantly to reducing CO₂ emissions. In 2005, we opened a biomass power plant at Kakogawa Site with the capacity to fulfill all steam and power needs of the site, and any surplus power is supplied to local electricity companies as green energy.
In FY2022, we saw a decrease in biomass fuel, resulting in a slight increase in CO₂ emissions. In line with our Greenhouse Gas Reduction Policy, we have made a large-scale transition to carbon-neutral liquid natural gas (LNG) in FY2021, and introduced further steps to go greener in FY2022, including our first floating solar-power generation business as well as emission mitigation programs that pair utilization of electricity with non-fossil fuel energy certificates to eliminate carbon dioxide from electricity use.

■CO₂ Emissions

Our sustained use of biomass fuel has greatly reduced CO₂ emissions over the years.

■GHG Emissions in the Supply Chain

In FY2023, we expanded our analysis of CO₂ emissions and its sources to Harima Chemicals and Harima M.I.D., from the previous analysis of Kakogawa Site emissions. Detailed review of FY2022 data showed similar resuts; from among the three scopes defined below, Scope 3 was responsible for more than 90% of emissions, of which Category 1 (Purchased goods and services) took up the most percentage. We will continue refining calculation methods to further improve accuracy, and continue to reduce GHG emissions throughout the supply chain.

Biomass Power Generation

Our biomass power plant at Kakogawa Site was approved by the Japanese Ministry of Economy, Trade and Industry in FY2003 as a green initiative for the future of energy production and was opened in Mar 2005. The facility uses components resulted during crude tall oil distillation, letting us utilize every bit of the raw material’s value. The plant has the capacity to fulfill all steam and power needs of the site, and any surplus power is supplied to local electricity companies as green energy so that nothing goes to waste. In addition, biomass power contributes significantly to reducing CO₂ emissions.

■CO₂ Emissions Reduction (Manufacturing operations)

Transition to Greener Energy Sources

As municipal gas and liquefied natural gas (LNG) emit significantly less CO₂ than heavy oil and kerosene, we are actively involved in converting to these cleaner fuels in our operations.

■CO₂ Emissions Reduction (Distribution operations)

Energy consumption decreased in FY2022 due to increased use of marine transportation as well as optimization of logistics through systems that allow distribution in smaller lots.

Scope:Harima Chemicals and Harima M.I.D.

Solar Power Plant at Iho Site

In Dec 2014, we opened a solar power plant with a capacity of 1,129kW at the Iho Site in Japan. Through the "Feed-in Tariff (FIT) for Renewable Energy" policy that guarantees a fixed price for electricity sale, all generated power is distributed to local electricity companies. By utilizing our facility to generate solar power, we contribute to the promotion of green energy and reduction of CO₂ emissions, also in light of the latest related initiatives promoted by the Japanese government.

■Solar Power Generation

Introduction of Carbon-Neutral LNG

Harima has started the use of carbon-neutral liquified natural gas (LNG) at the Kakogawa Plant, dimer acid plant at Harima M.I.D., and CTO storage tank facility at Iho Site, Japan. Carbon-neutral LNG offsets the GHG emissions from the natural gas supply chain, through carbon offset credits granted to companies that actively reduce emissions through environmental conservation projects. Introducing carbon-neutral energy sources at our sites in Japan is a significant step towards that goal, with a substantial impact on the reduction of the company’s carbon footprint as a whole. These initiatives will be further enhanced and deployed Group-wide, for the realization of carbon-free operations by 2050.

Solar Power Generation for On-Site Use

In an effort to reduce CO₂ emissions, LAWTER - Concordia has implemented a solar power system on its premises. The power is generated for on-site use, contributing to the further promotion of renewable energy.

Harimatec Czech Goes Eco

Harimatec Czech has planted its first pines on the factory premises. Space limitations called for the selection of a shorter specimen, with Pinus Leucodermis (commonly “Bosnian pine”) known for its robust structure yet slow growth, reaching a maximum of around 4 meters. A dense, pyramidal tree, this species is low-maintenance and serves as a great windbreak and noise absorbent.
Increasing greenery is now a popular trend around the world, with aesthetic and environmental benefits such as energy savings and cleaner air. Together with planting trees on its premises, Harimatec Czech has also been involved in efficient water and waste management at the facility, achieving a reduction of 18% in water consumption and of 17% in hazardous waste, both over a period of 3 years and eliminating biodegradable waste using a vermicomposter.

ISO 50001 Certification for Energy Management Systems

LAWTER - Kallo has obtained the ISO 50001 certification, an international standard for energy management systems, and plans to reduce 30% of CO₂ emissions by 2030, in comparison to FY2013, and further employ measures for energy conservation and promote eco-friendly operations.

Initiatives for Waste Reduction

We stay true to our circular business model by strictly managing waste, in addition to reducing waste generation and encouraging recycling.

Waste Generation Breakdown

■Waste Flow Chart(FY2022)

Scope:Harima Chemicals and Harima M.I.D.

Scope:Harima Chemicals and Harima M.I.D.

Zero-Emissions

Maintaining Zero-Emission Operations

Landfill use is a less-visible aspect of emission that only occurs at the very end of a product’s life cycle. In the past, landfill disposal rates were over 2%, mostly composed of residue from biomass combustion that could not be processed any further. In FY2005, we discovered a way to recycle the residue by using it for cement, gradually shifting landfill use to less than 1%. The rate was further reduced to zero in FY2011 when we established means to recycle waste glass, accomplishing the zero-emission level we maintain today.

Scope:Harima Chemicals and Harima M.I.D.

Packaging Recycling Program

In light of the EU’s “Packaging and Packaging Waste Directive” (PPWD), member countries are required to establish organizations and policies to collect and recycle said waste. The “Czech Recycling Act” demands companies that purchase and use packaging for their products sold and distributed in the country, to cover recycling costs in proportion to the amount of waste generated. To comply with the act, Harimatec Czech has partnered with EKO-KOM, a government-approved recycling management company, to cover related recycling costs accordingly, thus actively supporting measures that encourage recycling.

Project Bottle Cap

Harima do Brasil is participating in a campaign to collect plastic bottle caps for recycling. Not only are the bottle caps turned into plastic products thus reducing the CO₂ emission that would have been generated in the combustion process, but also any generated revenue is donated towards healthcare and people with disabilities. We will continue to play a part in the cause, believing that our actions, however small, can make a difference.