Carbon neutral initiatives
CO2 reduction targets
We have set a goal of becoming carbon neutral by 2050 (Scope 1 and 2). For the milestone year of 2030, we had set a target of 15% reduction overall, including 10% reduction in the Steel bars division and 75% reduction in other divisions, but we have revised the target and increased it to 159 thousand tons, a 30% reduction overall. (vs. FY2013)
- ※CO2-free power and renewable energy are both generated with zero CO2 emissions, but renewable energy refers to power that contributes more to carbon neutrality because the equipment used to generate it is also recyclable.
Roadmap toward carbon neutrality
| Springs Business（Chiba Works） | The company has shifted 100% of its electricity consumption to CO2-free electricity since FY2022, resulting in a 50% reduction in CO2 emissions, and is preparing to partially switch to renewable energy sources in FY2025. |
|---|---|
| Formed & Fabricated Products Business（Hirota Works） | CO2 emissions have been reduced by approximately 90% by shifting 100% of electricity used to CO2-free electricity since FY2023. |
We will continue our efforts in the Steel bars division to achieve the target we have raised this time.
Scope 3 CO2 emissions by category
| Category | FY2022 | FY2023 | Calculation method |
|---|---|---|---|
| 1. Products and services purchased | 1,444 | 1,481 | Volume or amount of raw materials purchased multiplied by CO2 emissions intensity |
| 2. Capital goods | 6 | 10 | Amount of capital investment multiplied by CO2 emissions intensity |
| 3. Energy activities other than Scopes 1 and 2 | 16 | 14 | Volumes of power purchased and fuel used multiplied by CO2 emissions intensity |
| 4. Upstream transport | 3 | 8 | 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 | 2 | 2 | Waste multiplied by CO2 emissions intensity |
| 6.Business travel | 0 | 0 | Number of employees multiplied by CO2 emissions intensity |
| 7. Commuting | 1 | 1 | Number of employees multiplied by CO2 emissions intensity |
| 9. Downstream transport | 6 | 6 | 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 | 3 | 4 | CO2 emissions of companies owned multiplied by ownership stake |
| Total | 1,479 | 1,525 |
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.
- In Thailand (MSM THAILAND), we will continue to prepare for and study the introduction of renewable energy.
In February 2024, we joined the "GX League" in support of the "GX League Basic Concept," which aims to transform the entire economic and social system to simultaneously achieve corporate growth, consumer happiness, and contribution to the global environment, with a view to achieving carbon neutrality and social transformation in 2050. Going forward, we will promote efforts to reduce CO2 emissions and contribute to the realization of a carbon-neutral society. We will promote the introduction of energy-saving technologies to each of our bases in line with the carbon neutrality goals of each country.
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.
