Carbon neutral initiatives
CO2 reduction targets
As we strive to achieve carbon neutrality (Scopes 1 and 2) by 2050, we have set the following individual targets to be achieved in the steel bars segment and other segments by the milestone year of FY2030. We will invest 3-4 billion yen by 2030 to reach these targets.
- Steel Bars segment
Targeting carbon neutrality by developing a CO2-free infrastructure to achieve a target figure of 180,000 tons in reductions, or 10% of carbon intensity (vs. FY2013)
- Other segments
Increasing the target from a 50% to a 75% reduction in total emissions to 11,000 tons (vs. FY2013) through increased use of CO2-free power
Targeting carbon neutrality (effectively zero carbon emissions) by FY2050 by actively promoting conversion of fuel energy
[Features of the Steel Division]
At the Muroran Complex, we reuse by-product gas generated from coke ovens as fuel, and use power generated within the complex for electricity.
[Challenges]
A 10% reduction per unit is insufficient to meet the demands of the stock market.
→ We have started planning ahead
to reduce approximately 30% of the CO2 emissions at the Muroran base, primarily through the purchase of CO2-free electricity.
Carbon neutrality promotion structure
In August 2021, we established the organization-wide Carbon Neutral Committee and began studies toward achieving carbon neutrality by FY2050.
In November 2021, we established the new Sustainability Committee to promote our sustainability initiatives. Under this structure, the Carbon Neutral Committee will function as an organization under the umbrella of the Sustainability Committee.
Leaders of the Carbon Neutral Committee were selected from among younger personnel in their 20s and 30s. The committee is tasked with developing a future outlook based on a long-term perspective.
Related efforts launched at overseas facilities include the addition to the committee organization of the Indonesian business, which generates high levels of CO2 emissions, in August 2022.
We will move forward successively with initiatives at other overseas facilities.
Roadmap toward carbon neutrality
Aiming to achieve carbon neutrality (effectively zero carbon emissions) by FY2050, we have formulated the following roadmap toward carbon neutrality.
- Results of initiatives in FY2022:In segments other than steel bars, three facilities began purchasing CO2-free power in FY2022. The Chiba Works migrated to 100% CO2-free electric power, reducing emissions by approximately 8,000 tons (equivalent to 18% of other segments' emissions in FY2013).
- Initiatives in FY2023: A central aspect of our initiatives in FY2023 is to achieve reductions of approximately 5,000 tons (equivalent to 10% of other segments' emissions in FY2013) by streamlining operations and migrating to 100% CO2-free electric power at the Hirota Works. Steady progress is being made on these activities.
Scope 3 CO2 emissions by category
| Category | FY2021 | FY2022 | Calculation method | ||
|---|---|---|---|---|---|
| Steel Bars | Springs, Formed & Fabricated Products, Machinery, transport | Steel Bars | Springs, Formed & Fabricated Products, Machinery, transport | ||
| 1. Products and services purchased | 1,075 | 73 | 921 | 104 | Volume or amount of raw materials purchased multiplied by CO2 emissions intensity |
| 2. Capital goods | 6 | 7 | 3 | 3 | Amount of capital investment multiplied by CO2 emissions intensity |
| 3. Energy activities other than Scopes 1 and 2 | 42 | 25 | 63 | 22 | Volumes of power purchased and fuel used multiplied by CO2 emissions intensity |
| 4. Upstream transport | 2 | 33 | 1 | 31 | Volume of fuel used in reporting under the Act on the Rational Use of Energy and volume of category 1 purchases multiplied by CO2 emissions intensity |
| 5. Waste | 0 | 1 | 1 | 1 | Waste multiplied by CO2 emissions intensity |
| 6. Business travel | 0 | 0 | 0 | 0 | Number of employees multiplied by CO2 emissions intensity |
| 7. Commuting | 0 | 1 | 0 | 0 | Number of employees multiplied by CO2 emissions intensity |
| 9. Downstream transport | 5 | 3 | 4 | 4 | Volume of fuel used in reporting under the Act on the Rational Use of Energy and individual shipments multiplied by CO2 emissions intensity |
| 15. Investment | 0 | 0 | 0 | 0 | CO2 emissions of companies owned multiplied by ownership stake |
| Total | 1,130 | 143 | 993 | 164 | |
Mitsubishi Steel Muroran Inc., Mitsubishi Nagasaki Machinery Mfg. Co., Ltd., Ryokoh Express Co., Ltd.
Since the second half of FY2022, we have promoted capital investments related to carbon neutrality by using ICP to reflect CO2-reduction effects as virtual prices in domestic businesses.
- Domestic carbon price: 10,000 yen/t-CO2
- Scope: Capital investments in domestic businesses
The Nomination and Compensation Committee and the Board of Directors have decided to revise our executive compensation programs to incorporate nonfinancial indicators in the assessment indicators for bonuses and stock-based compensation starting in FY2023. CO2 emissions reductions are included as an environmental indicator. Achieving these targets is reflected in payment amounts.
- We will promote the adoption of energy-saving technologies at each facility in accordance with each country's carbon neutrality targets.
- We will proceed with demand research and study the production of carbon neutral steel using electric furnaces in Indonesia (JATIM) as well as carbon neutral springs in the springs business.
Efforts to lessen environmental impact at our plants initiatives
Switching to purchasing 100% CO2-free electricity (Chiba Works, Hirota Works)
The Chiba Works switched to purchasing 100% CO2-free electricity in April 2022. The Hirota Works also completed full switchover to CO2-free electricity in April 2023. This means that two of Mitsubishi Steel's four main plants have switched completely to CO2-free electricity.
| Site | Projected CO2 emissions (vs. before adoption of CO2-free electricity) | Time of adoption |
|---|---|---|
| Chiba Works | Reduced by approx. 8,300 t (approx. 50%) | April 2022 |
| Hirota Works | Reduced by approx. 7,600 t (approx. 90%) | March 2023 |
Energy conservation in tempering furnace conveyors for automotive coil springs (Chiba Works)
The Chiba Works has reduced the weight of the conveyor slats installed on the conveyors used in the tempering furnace process for automotive coil springs by switching to thinner, perforated slats. This has reduced the energy used in heating (which is sourced from city gas supplies). (The annual energy savings are equivalent to a reduction of approx. 560 t in CO2 emissions.)
Reducing CO2 emissions through use of hydrogen as an alternative cutting gas for cutting steel bars (Muroran Works) * A Challenge Zero Emissions project
LPG-gas cutting equipment is used to cut slabs cast in continuous casting equipment to appropriate lengths for final products. The Muroran Works aims to reduce CO2 emissions from this process to zero by switching from LPG to hydrogen.
The Muroran Works is working to replace LPG with hydrogen as the cutting gas used to cut slabs cast in continuous casting equipment through a series of steps from the testing and inspection stage through permanent equipment modifications.
