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:

FY2023 Results and FY2030 Mid-term Targets

Legend　○:Done　×:In progress

ISO 14001 Certification (as of Mar 31, 2024)

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

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.

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 FY2023 further decreased compared to FY2022, while heavy oil used for boilers (excluding that of the biomass power plant) increased. Fossil fuel used increased due to expanded scope of calculation following changes in business structure. We will continue to reduce environmental impact through transition to natural gas and renewable energy, together with 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 FY2023, we saw a decrease in biomass fuel and an increase in CO₂  emissions due to expanded scope of calculation. We remain committed to environmentally friendly efforts, including the operation of our solar power generation business and implementation of emission mitigation programs that combine electricity use with non-fossil fuel energy certificates to eliminate carbon emissions from electricity use. We will continue strategic CO₂ emission reduction initiatives in line with our Greenhouse Gas Reduction Policy.

■CO₂ Emissions

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

■GHG Emissions in the Supply Chain

In FY2024, we assessed CO₂ emissions from Harima Chemicals Group, Harima Chemicals and Harima M.I.D., and received limited warranty from a third-party certification body. Detailed review of data showed that 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)

We collaborate with logistics companies to reduce CO₂ emissions in our fully outsourced distribution operations. We aim to increase use of rail and marine transportation, which have lower CO₂ emissions compared to trucks. Energy consumption increased in FY2023 due to a decline in bulk shipments and reduced use of rail and marine transportation.

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

Floating Solar-Power Generation Business

In Mar 2023, Harima started its first floating solar-power generation business on a reservoir located in the vicinity of the Kakogawa Plant. Our approx. 1,700 solar panels installed on structures on the surface of the reservoir generates an annual 900,000kWh, representing enough power to supply the electricity needs of 250 homes. The power is distributed to the Kakogawa Site via a private transmission line, and also to a local community center for everyday use, as well as for emergency situations when an accumulator and power conditioner will also be on standby.

This project is partially funded by the Ministry of the Environment, Japan (MOEJ) through an emission mitigation grant program, and in Apr 2023, was acclaimed as a model case for solar power facilities implemented in innovative locations such as farmland, reservoirs and waste treatment plants. It is featured on the MOEJ website, recognized for its significant contributions to the environment and the community, as well as disaster resilience through the distribution of electricity for everyday and emergency use.

The project reiterates Harima's long-standing commitment to protect the environment, give back to the community, and enhance business all at the same time.

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.

Achieving Zero Emissions from Electricity Use

Kakogawa Plant introduced the EnneGreen Plan in April 2023, which has resulted in eliminating carbon dioxide emissions from electricity use. Provided by Japan-based Ennet, the plan successfully pairs utilization of electricity with a non-fossil fuel energy certificate which serves as proof that electricity originates from renewable energy sources.

In addition, we introduced the Green Basic Plan at our Ibaraki, Tokyo and Fuji Plants in Japan, which partly replaces purchased electricity with renewable energy. Provided by Japan-based TEPCO Energy Partner, the plan successfully combines FIT* and non-FIT non-fossil fuel energy certificates.

*FIT: Feed-in Tariff Scheme for Renewable Energy

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.

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(FY2023)

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.