GHG emissions
KH Neochem has declared Seven Promises to its stakeholders to drive Sustainable Management. To address one of the promises, "We will conduct business conscious of reducing our impact on the environment," we have set the reduction of GHG emissions as a management goal and will contribute to the reduction of environmental impact throughout the life cycle of our products.
In addition to aiming to be carbon neutral by 2050, we have set a milestone of reducing GHG emissions (Scope 1 and 2) by 30% by 2030 relative to FY2017 levels. We have taken various measures toward this reduction target, including the introduction of an advanced plant control system for more efficient operation and the deployment of high-efficiency LNG generators. As a result, in FY2022, we reduced GHG emissions by 20% relative to FY2017 levels.
In addition, to contribute to reductions during the product life cycle, we are making a significant contribution to reducing GHG emissions from air conditioners worldwide by supplying refrigeration lubricant raw materials used in environmentally friendly refrigerants.
Amount of Greenhouse Gas (GHG) released trends (Scope1、Scope2) (Non-Consolidated)
Unit: kt-CO2
| fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|
| Scope1 | 390.6 | 383.6 | 372.6 | 321.5 | 360.7 | 327.8 |
| Scope2 | 83.0 | 65.4 | 67.6 | 82.6 | 61.7 | 51.2 |
| amount | 473.6 | 448.9 | 440.2 | 404.2 | 422.4 | 379.1 |
*1 Figures reported based on the Act on the Rational Use of Energy.
*2 Starting in fiscal year 2021, we have been deducting the amount of CO2 that was generated in our production processes, captured, and used as raw materials from our GHG emissions.
*3 Round to the nearest hundredth place.
Amount of Greenhouse Gas (GHG) released trends (Scope3) (Fiscal year 2022, Non-Consolidated)
| Category | Category name | CO2 emissions [kt-CO2] | Breakdown ratio [%] |
|---|---|---|---|
| Category 1 | Purchased products and services | 818 | 77.6% |
| Category 2 | Capital goods | 57 | 5.4% |
| Category 3 | (Not included in Scope 1 and 2) Fuel- and energy-related activities | 61 | 5.8% |
| Category 4 | Upstream transportation and distribution | 24 | 2.3% |
| Category 5 | Waste generated in operations | 1 | 0.1% |
| Category 6 | Business travel | <1 | 0.0% |
| Category 7 | Employee commuting | <1 | 0.0% |
| Category 8 | End-of-life treatment of sold products | 92 | 8.7% |
| Total | 1,054 | 100% | |
*1 Period covered: January 2022 to December 2022 (Category 3,5 is April 2022 to March 2023)
Contributing to GHG emissions reduction through the supply of refrigeration lubricant raw materials
We manufacture refrigeration lubricant raw materials used in environmentally friendly air conditioners. Various types of gases are used as refrigerants in air conditioners, and the type of refrigeration lubricant required depends on the type of refrigerant. Global GHG emissions from CFC substitutes used as refrigerants amount to approximately 1 billion tons of CO2 equivalent per year, of which more than 90% is said to be produced by air conditioners. As a result, a global shift to environmentally friendly refrigerants is progressing, with KH Neochem's refrigeration lubricant raw materials indispensable for the production of refrigeration lubricants compatible with these new refrigerants.
Global Annual GHG Emissions of CFC Substitutes, etc. (CO2 Equivalent)
Source: Produced by KH Neochem based on "Trends in Global CO2 and Total Greenhouse Gas Emissions," 2020 Report PBL Netherlands Environmental Assessment Agency
Furthermore unlike gasoline-powered cars, air conditioners installed in electric vehicles (EVs), which are becoming increasingly popular around the world use the same system as home air conditioners, so our refrigeration lubricant raw materials are also used in these vehicles.
As a leading supplier in the field of these refrigeration lubricant raw materials, we contribute to the reduction of GHG emissions around the world through the supply of our products.
Initiatives to reduce GHG emissions
Installation of advanced control systems at plants
Chemical plants are lined with many pipes, and the flow volume of raw materials and products is constantly fine-tuned to ensure safe plant operation. The advanced control system is a state-of-the-art system that uses AI and other technologies to automatically estimate and adjust plants to appropriate conditions, taking into account various conditions such as temperature and pressure. With this system implemented, we are able to minimize production losses and achieve energy-efficient operation.
We will continue to promote CO2 reduction by increasing the number of plants with this system installed and promoting further energy conservation.
Using CO2 as a raw material
Our core technology, oxo synthesis (also known as hydroformylation), is a process where oxo a mixture of carbon monoxide (CO) and hydrogen (H2), reacts with raw materials, such as olefins, to synthesize aldehydes. CO2 is used as a raw material in the CO and H2 production process, and is one of the reactions that has actually been industrialized as an effective way to utilize CO2. In addition to collecting CO2 generated by other companies for use as raw materials, we also collect some of our own CO2, thereby contributing to the reduction of CO2 generated in the manufacturing process.
