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Response to Climate Change in Business Activities

  • Response to Climate Change in Business Activities
Response to Climate Change in Business Activities
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Introduction of the Internal Carbon Pricing
Expanding the introduction of renewable energy
Initiatives to Reduce Environmental Impacts

Toshiba Group is proactively promoting energy-saving measures at its offices as well as business complex and production sites in Japan and abroad. In terms of energy-derived CO2 emissions from the use of electricity, we are promoting to turn off electricity at our offices, and in business complex and production sites as well as making efforts to improve production efficiency as an energy-saving measure and to introduce renewable energy at our business and production sites. In particular, we have been proactively installing systems to capture and/or remove sulfur hexafluoride (SF6) in particular, which is used to insulate heavy electric machinery, and perfluorocarbons (PFCs), which are used to produce semiconductors. By steadily taking measures to improve our production processes, the Group is contributing to reduce the total volume of GHG* emissions generated from our business activities.

In FY2022, total GHG emissions were 0.77 million t-CO2, so we achieved our target of 1.02 million t-CO2. Energy-derived CO2 emissions per unit activity were 87% compared to the FY2021.

Going forward, Toshiba Group will contribute to the realization of a decarbonized society by working to significantly reduce GHG emissions through the promotion of measures such as expansion of the use of renewable energy at our sites worldwide based on our long-term GHG emissions reduction target. As a new initiative under the Seventh Environmental Action Plan, Toshiba Group will also focus on the reduction of GHG emissions through the use of its digital technologies that enable remote operation, automation, and intelligence.

  • Carbon dioxide (CO2), methane (CH4), dinitrogen oxide (N2O) (= nitrous oxide), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3)

■ Total GHG emissions*

*CO2 emission coefficients for electricity are calculated using emission coefficients provided by power companies.

■ Breakdown of total GHG emissions (FY2022)

■ Energy-derived CO2 emissions and rate of improvement per unit activity*1

■ Breakdown of energy-derived CO2 emissions (FY2022)

  • Basic-unit uses values such as production output, the number of products manufactured, the number of persons and total floor area, etc, that are related to energy consumption associated with manufacturing associated with manufacturing.
  • The rate of improvement per unit activity of output with FY2020 as 100%

Introduction of the Internal Carbon Pricing

In December 2022, Toshiba Group introduced the Internal Carbon Pricing (ICP) system to reduce GHG emissions (Scope 1 and 2) from our business activities. We convert the impact of the investments aiming at reducing GHG emissions on future business into economic value, then by using this information in investment decision making, we will foster internal awareness and promote behavioral change toward carbon neutrality. The ICP will be established on a country-by-country basis based on the future outlook for greenhouse gas emission costs published annually by the International Energy Agency (IEA), and will be reviewed periodically to enhance its operation.

  • Carbon price within Toshiba Group（ICP） : <Japan> 13,827 yen/t-CO2（FY2023） *ICP is country-specific
  • Scope : The investment aiming at reducing GHG emissions
  • Application method : The amount of GHG emission reductions added as a "deemed benefit" by applying the ICP to the subject capital investment is used as the basis for investment decisions.

Expanding the introduction of renewable energy

Renewable energy uses 20.8% of total energy (electricity) consumption　in Toshiba Group. Based on Toshiba Group's long-term GHG reduction targets, we will promote measures such as expanding the introduction of renewable energy at sites in Japan and abroad to significantly reduce emissions and contribute to the realization of a decarbonized society.

Case: Toshiba Group's Kawasaki Head Office achieves 100% supply of renewable energy

Toshiba Corporation

Toshiba Group has introduced a Virtual Power Purchase Agreement (VPPA) for the use of electricity at Smart Community Center, Kawasaki City, Toshiba Group Kawasaki headquarters, and together with the purchases of FIT non-fossil certificated, the Center will be virtulally 100% powered by renewable energy sources from April 2023.

The VPPA is expected to cover the generation of approximately 510,000 kWh of renewable energy per year, with CO2 reduction effect of 244 tons per year, which is equivalent to about 7.3% of the total electricity consumption of the entire Kawasaki Smart Community Center estimated in FY2022. Smart Community Center, by allocating all the remaining amount to FIT non-fossil Certificates, was able to achieve virtually 100% renewable energy by combining VPPA and FIT non-fossil Certificates.

Toshiba Group has formulated “Environmental Future Vision 2050,” as a long-term vision that adopts a global perspective, including responses to climate change and the circular economy, and is promoting activities accordingly. The Vision also includes  “Response to Climate Change,” as a priority item, aiming to achieve carbon neutrality throughout Toshiba Group’s value chain by FY2050. To this end, as a milestone, Toshiba Group aims to cut greenhouse gas emissions by 70% by FY2030 compared to the FY2019 level.

Initiatives to Reduce Environmental Impacts

Case: Energy-saving activities by optimizing steam supply in the site

Oita Operations, Japan Semiconductor Corporation 

Oita Operations, which manufactures automotive analog semiconductors, etc., is a type 1 designated energy management factory that uses 80,241 kiloliters of energy per year in crude oil equivalent. Since slightly more than 90% of such energy is electricity, we have been carrying out energy-saving initiatives mainly to reduce the amount of electricity used. Recently, however, we have conducted energy-saving activities with a focus on city gas, of which we use 5,689 kiloliters per year in crude oil equivalent.
Specifically, we reviewed the steam supply system between buildings in the site to minimize heat radiation loss, maximized operational efficiency using water tube boilers along with newly installed compact once-through boilers after more precisely predicting the required steam within the Operations, and adjusted the steam supply pressure.
As a result of these initiatives, we successfully reduced our city gas consumption by 520 kiloliters per year (9.1% compared to the previous year) in crude oil equivalent. These initiatives received Energy Conservation Center Chairman's Award in the Energy Saving Category at the awards ceremony for the 2022 Energy Conservation Grand Prize for excellent energy conservation equipment.

Awards ceremony for the 2022 Energy Conservation Grand Prize

Case: HTT promotion activity to save, generate, and store electricity

Fuchu Complex, Toshiba Infrastructure Systems & Solutions Corporation

The Tokyo Metropolitan Government has been encouraging residents and business operators to promote its HTT campaign to "save" (Herasu), "generate" (Tsukuru), and "store" (Tameru) electricity as a measure to achieve “Zero Emission Tokyo.”
At Fuchu Complex, all employees are working to reduce electricity consumption through efforts such as visualizing electricity consumption via the in-house portal (Demand EYE) and communicating special energy-saving measures via in-house broadcasting. The Tokyo Metropolitan Government recognized and awarded these efforts as a contribution to avoiding an electricity supply and demand crisis as well as to realizing a decarbonized society.

Fuchu Complex has also been certified as one of the “Top Level Facilities” due to its outstanding global warming countermeasure efforts under The Tokyo Cap-and-Trade Program*. Fuchu Complex, as a large-scale office complex built in 1940, was recognized for its efforts to reduce peak electricity and power consumption such as installing solar power generation and high-efficiency production equipment as well as introducing and utilizing natural lighting.
Going forward, we will continue to manage our office complex, which has excellent environmental performance, in pursuit of achieving harmony with the environment and improving production efficiency.

  • The Tokyo Cap-and-Trade Program
    A program to reduce the GHG emissions of large office complexes in Tokyo started by the Tokyo Metropolitan Government in 2010. Under the program, an obligation to reduce GHG emissions is imposed on offices (cap), while they can trade to other offices the amount of GHG emissions that they have reduced more than the obligation (trade). Once certified as a Top-Level Facility, the reduction obligation amount for the certification period (up to 2024) is halved, allowing them to secure an even greater amount more than their allowances.

Case: Reducing environmental impacts by upgrading boiler equipment and switching fuels

Mie Operations, Toshiba Infrastructure Systems & Solutions Corporation

Mie Operations, which is manufactures transformers, compact once-through boilers facilities are installed for drying treatment of components (coils and iron cores) for vehicle transformers and compact oil-immersed transformers. Because the equipment had used for 14 years since its installation, we replaced it with three new compact once-through boiler units. This replacement has enabled appropriate operation control according to workload and successfully reduced power consumption by 25% compared to the previous configuration. This reduction is due to improved boiler efficiency and energy management, which has also led to cost reductions. In addition, by switching the fuel used from kerosene to city gas, combustion efficiency improved, and CO2 emissions fell by approximately 23%. Going forward, we will continue to implement sustainable initiatives that take the environment into account.

Newly installed compact once-through boiler

Case: Use of Carbon Neutral LNG at Toshiba Group

Toshiba Corporation

Toshiba Group is a member of the Carbon Neutral LNG Buyers Alliance and started using Carbon Neutral LNG (CNL) in Fuchu Complex and Komukai Complex for the first time within Toshiba Group. CNL is a type of LNG that offsets greenhouse gases generated in the process from extraction to the burning of natural gas by carbon credits (carbon offsetting) obtained by projects that help conserve biodiversity and reduce poverty in emerging countries. Thus, it is deemed to be carbon neutral on a global scale even when burned. Toshiba Group will contribute to the realization of a sustainable society by responding to climate change and other social issues through increasing the use of CNL.