Results of Efforts to Reduce Greenhouse Gases and Energy Consumption

In FY2017, the amount of GHG emitted by the entire group increased by 21,000 tons-CO₂e compared to FY2016. Specifically, the sites in Japan increased their emissions to 211,000 tons-CO₂e from 197,000 tons-CO₂e in FY2016, while the sites outside Japan increased to 303,000 tons-CO₂e from 296,000 tons-CO₂e in FY2016 (see G1).
The amount of energy used by the entire Group increased by 9,000 kL compared to FY2016. Specifically, the sites in Japan increased their usage to 94,000 kL from 88,000 kL in FY2016, while the sites outside Japan increased to 129,000 kL from 126,000 kL in FY2016 (see G2).
Energy usage is broken down into 93% for SCOPE 2 and 7% for SCOPE 1 (see G3).
Improvement in energy intensity, which we aim to achieve in the medium term, was 22.6% in FY2016 and FY2017 on average (see G4).
We will continue to review production processes with a focus on core products to further improve the production efficiency for larger energy usage.

• Note: Changes in the conversion factor have a major impact on GHG calculations, so the medium environmental targets were set according to energy consumption (crude oil equivalent), a factor that has measure able results.
• Note: GHG emissions are calculated using GHG Protocol factors (electricity by country).

G1: GHG Emissions
(calculated from total energy consumption)

G2: Energy Consumption
(crude oil equivalent)

G3: Breakdown of Energy Consumption
(crude oil equivalent)

G4: Average Energy Consumption Per Unit
(results compared to target)

Efforts on Indirect Emissions Other than from Energy Use (SCOPE 3)

In recent years, there has been a growing demand from our stakeholders to disclose information on SCOPE 3 emissions, in addition to information on SCOPE 1 and SCOPE 2 emissions. To meet this demand, we are working to obtain a clear picture of our SCOPE 3 emissions.
We have ascertained that our GHG emissions from purchased goods and services in FY2017 were 328,000 tons-CO₂e (group), 7,046 tons-CO₂e from commutes (domestic sites), 459 tons-CO₂e from business trips (domestic sites), 5,142 tons-CO₂e from disposal and processing of waste (domestic sites), and 34,905 tons-CO₂e from transporting products (group).