Under our Sustainability Policy, Toagosei is working through environment-conscious business activities to achieve the sustainable development of a prosperous society for future generations.
Among environmental problems today, global warming, or climate change, is a huge risk that threatens our very way of life. Its increasing impacts, as seen in the growing magnitude of typhoons, rising frequency of torrential downpours, and changes in ecosystems, are cause for concern.
Since the chemical industry consumes large quantities of energy, Toagosei considers the mitigation of climate change as a key issue in its environmental actions and is working to reduce greenhouse gas (GHG) emissions.

The Sustainability Promotion Committee, chaired by the President of Toagosei, deliberates on climate change issues as a key item under CSR issues.
The results of these deliberations by the committee are then reported to the Management Committee and Board of Directors, which deliberate and approve the formulation of business strategy, management decisions, and measures and goals for addressing climate change issues.
Deliberations on items related to Responsible Care, risk management, and compliance are conducted by each respective committee.

Toagosei is striving to reduce its GHG emissions through energy conservation and enhancing production efficiency with a target of lowering GHG emissions by 26% compared to 2013 by 2030. As a result of our efforts, we have reduced GHG emissions by 23% in 2021 compared to 2013, making steady progress towards reaching this target.
As climate change risks are growing worldwide, there is also demand for accelerating initiatives for mitigating global warming and decarbonization in Japan.
In order to maintain and improve our standard of living in the future, we revised our existing GHG emissions reduction target, establishing a new target in 2021.

We have set reduction targets for 2030 and 2050 covering GHG emissions generated in our production activities.

In order to achieve our newly established reduction target, we will continue to pursue energy conservation and production efficiency, while also considering and promoting initiatives from various aspects including switching to fuels with lower GHG emissions, introducing renewable energy, and rolling out new technology for separating, recovering, and reusing CO₂.

The measurement of greenhouse (GHG) emissions including those from the supply chain is organized into three scopes: GHG emissions from use of fuel that are directly related to an organization's production activity (Scope 1); emissions from energy supply such as electricity (Scope 2); and GHG emissions resulting from upstream and downstream operations of an organization, including processes from the manufacturing of raw materials to the disposal of manufactured products by end consumers, as well as GHG emissions resulting from activities indirectly related to production activities, such as employees commute and fuels of company-vehicles (Scope 3).
In order to reduce the GHG load incurred within the supply chain related to our business activities, we have calculated the emissions in Scope 3. *Toagosei Co., Ltd.
Within Scope 3, Category 1 (C1: purchased goods and services) accounts for about 70% of GHG emissions, which is considered a major target for reduction in lowering GHG from the raw material procurement process.

Toagosei consumes a large amount of electricity and fuel in the manufacturing process of various chemical products and releases GHGs.
On the other hand, we also provide many products that mitigate climate change in areas such as mobility, electronics and infrastructure.
Responding to climate change is an important aspect of our management, both in terms of reducing GHG emissions and contributing to products; therefore, in June 2019, Toagosei endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
We will conduct scenario analysis following the TCFD guidelines in our information disclosures and sound dialogue with stakeholders going forward.

We analyzed the risks and opportunities of the effects of climate change, with a focus on commodity chemicals which produce large GHG emissions.

[Scenarios]

Scenario Analysis

We will continue to implement systematic initiatives also based on technological progress in order to reach the long-term vision and target for reducing GHG emissions indicated above, with the aim of contributing to the realization of a carbon neutral society.