Realization of a Low-Carbon Society

Various global initiatives aimed at controlling global warming have started to come into force, including the taking of effect of the Paris Agreement set at the United Nations Framework Convention on Climate Change. Kawasaki is contributing to the prevention of global warming through its products and manufacturing that use energy without waste.
In order to achieve improvements in the efficiency of manufacturing at plants in Japan, we are introducing the energy visualization system and working toward the early discovery of waste, and are also promoting the use of renewable energy. In addition, we are contributing to lower CO2 emissions during product use, through delivery of highly energy efficient products worldwide.


Energy-Saving Promotion Activities

The Company established an energy-saving promotion structure for each business segment and makes various energy-conservation improvements in an effort to reduce CO2 emissions. These include a shift of pumps and fans to inverter types, raising the efficiency of lighting, air conditioning, production and other equipment, and making improvements in the production process.
One example is the improvement of the process of removing resin stuck inside a gear pump before the repair procedure (Nishi-Kobe Works, Precision Machinery Business Division).
Before the improvement, high-temperature incineration of resin in the furnace for many hours turned the resin into ashes, and then power tools and other equipment were used to polish them. After the improvement, a method was established to use solvents that are effective in removing stuck resin by immersing and cleaning. As a result of this, energy that had been used for heating and power tools was reduced, leading to a reduction of CO2 emissions.
As part of our energy-saving activities, we started the Energy-saving Awards Program from fiscal 2018 with an eye to all staff members’ participation in energysaving activities.
A characteristic of the Company’s Energy-saving Awards Program is the twotier awards consisting of the Intra-Division Award, which recognizes activities in each operating division of the Company, and the Company-wide Award, which is decided based on company-wide voting on each improvement recommended per division. As such, this program recognizes various energy-saving initiatives ranging from small improvements made by individuals to major ones by teams and plants.
The grand award of the Company-wide Award for fiscal 2018 was given to “an improvement that ‘prevented excess contract power’ through implementation of ‘measures to reduce peak power consumption’ by ‘full staff participation’ (Gifu Works/Nagoya Works, Aerospace Systems Company).” The winner was found to be outstanding in its improvement effect, return on investment, potential for horizontal development, and creativity and originality.
This improvement prevented excess power demand. It involved concerted efforts by plants through the implementation of the following four steps to curb about 4,000 kW of power in times of tight power supply-demand situations during summer.

1.
Spreading out in advance the operation schedule for facilities that consume large amounts of power.
2.
Staggering operation times, coordinating by telephone on that day, in cases where overlapping operations occur.
3.
In times of tight power demand even after those arrangements, increasing the output of cogeneration power-generation facilities or stopping several air conditioners in rotation.
4.
In times of further tightness of power demand, saving energy through full staff participation by issuing an emergency-power conservation announcement in the plant in two stages.
Figure 3:Before improvement:
Heating incineration of resin
Figure 4:After improvement:
Removal of resin using solvents

Reducing CO2 Emissions from Production Activities

Kawasaki set a goal to reduce CO2 emissions from production activities by 3% year on year, on a per unit of sales basis, and is pursuing activities to cut energy consumption.
In fiscal 2018, despite improvement activities carried out at production sites, CO2 emissions increased by 7,000 tons due to an increase in energy consumption resulting mainly from the launch of new facilities.
As a result, CO2 emissions increased by 2.0% year on year to 328,000 tons.
On a per unit of sales basis, using net sales as the denominator with the CO2 emission factor fixed at that of fiscal 2014, emissions decreased by 3% year on year to 27.7 tons/100 million yen, achieving the target of 3%.

Figure 7:CO2 Emissions from Production Activities

Notes:
1:
For domestic sites, the CO2 emission factors are based on figures published by Japan’s Ministry of the Environment for each power provider in each fiscal year.
2:
For overseas sites, the CO2 emission factors are based on figures published by the Greenhouse Gas Protocol.

Estimating CO2 Emissions in Supply Chain

The scope that Kawasaki is required to cover in tracking CO2 emissions is expanding, characterized by an accelerating trend toward the inclusion of not only its own operations but also those of its supply chain. The standards for calculating emissions along our supply chain include the Corporate Value Chain (Scope 3) Accounting and Reporting Standard, established by the Greenhouse Gas Protocol as an internationally accepted greenhouse gas (GHG) calculation and reporting guideline. In Japan, the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain—a Japanese version of Scope 3— were prepared by the Research/Study Committee on Standards for Accounting and Reporting Organization’s GHG emissions throughout the Supply Chain, established jointly by the Ministry of Economy, Trade and Industry and the Ministry of the Environment, to look into methods for calculating greenhouse gas emissions along corporate supply chains. Using these basic guidelines, Kawasaki calculated CO2 emissions along its supply chain, and presents the results below. According to this data, the GHG effect accompanying the use of Kawasaki-sold products over the whole supply chain is extremely high. We have been making progress in reducing CO2 emissions through product-based contributions, but going forward, we will take an even more proactive approach.

Table 1:Fiscal 2018—the Kawasaki Group’s Scope 1 and Scope 2 Calculation Results

Category Calculation Targets Calculation Results (104t-CO2/year)
Scope 1
Direct emissions Direct emissions through use of fuel at Kawasaki and associated industrial processes 17.6
Scope 2
Indirect emissions from energy-derived sources Indirect emissions accompanying use of electricity and heat purchased by Kawasaki 32.6

Table 2:Fiscal 2018—Kawasaki’s Scope 3 Calculation Results

Category Calculation Targets Calculation Results (104t-CO2/year)
Scope 3 (Other indirect emissions) Upstream
① Purchased goods and services Emissions associated with activities up to production of raw materials, parts, purchased goods and sales-related materials 603.3
(6.5%)
② Capital goods Emissions from construction and production of Kawasaki’s capital goods 27.6
(0.3%)
③ Fuel- and energy-related activities not included under Scope 1 or Scope 2 Emissions associated with procurement of fuel purchased from other providers and procurement of fuel required to generate power,such as electricity and heat 3.9
(0.0%)
④ Transportation and distribution (upstream) Emissions associated with logistics of raw materials, parts, purchased goods and salesrelated materials up to delivery to Kawasaki 0.8
(0.0%)
⑤ Waste generated in operations Emissions associated with transportation and processing of waste generated by Kawasaki 1.9
(0.0%)
⑥ Business travel Emissions associated with business travel by employees 1.4
(0.0%)
⑦ Employee commuting Emissions associated with transportation of employees between their homes and their worksites 0.6
(0.0%)
⑧ Leased assets (upstream) Emissions associated with operation of assets leased by Kawasaki (excluded if included in Scope 1 or Scope 2 calculations) Included in Scope 1 and Scope 2 calculations
Scope 3 (Other indirect emissions) Downstream
⑨ Transportation and distribution (downstream) Emissions associated with transportation,storage, cargo handling and retail sales of products 0.0
(0.0%)
⑩ Processing of sold products Emissions associated with processing of intermediate products by companies Excluded*1
⑪ Use of sold products Emissions associated with use of products by consumers and companies 8,679.6
(93.0%)
⑫ Disposal of sold products Emissions associated with transportation and treatment of products upon disposal by consumers and companies Excluded*1
⑬ Leased assets (downstream) Emissions associated with operation of assets leased to other companies Excluded*2
⑭ Franchises Emissions by franchisees Excluded*2
⑮ Investments Emissions related to operation of investments 17.4(0.2%)
*1
Excluded from calculation target because Kawasaki is unable to confirm reference data at this time.
*2
Excluded from calculation target because it is outside of the scope of our business.

Reduction of CO2 Emissions in Logistics Processes

Kawasaki takes steps to pinpoint CO2 emissions and promote energy-saving activities in its logistics processes, which cover some of its supply chain (Scope 3, Category 4 “Transportation and distribution (upstream)”), to realize continuous reduction in CO2 emissions.
In fiscal 2018, CO2 emissions decreased by 5% year on year, to approximately 4,000 tons (with energy consumption at approximately 60,000 GJ), due to a decrease in freight transport to distant areas.Amounts for the past five years are shown in Figure 10.

Figure 10:CO2 Emissions from Logistics Processes and Per Unit of Sales

Notes:
1:
Per unit of sales basis is a measurement obtained by dividing CO2 emissions by net sales.
2:
The CO2 emissions factor is based on values published by the Agency for Natural Resources and Energy.

Utilizing Renewable Energy

The Kawasaki Group is making its production and other equipment more energy efficient, and advancing the use of renewable energy, as efforts to reduce the CO2 emissions from its plants. We are installing solar power generating systems at our plants, and have a total generation capacity of 4,171 kW, including subsidiaries (some of the equipment installations were subsidized by the New Energy Promotion Council).
In fiscal 2018, we used about 1.6GWh of power from renewable energy sources in-house and reduced CO2 emissions by approximately 1,000 tons.

Table 3:The Kawasaki Group’s Solar Power Generation Capacity

Name Power Usage Generation
Capacity (kW)
Iwaoka Photovoltaic Power Generation Station*1 Sold via FIT*2 1,505
Nagoya Works 1 Used in-house 750
Seishin Photovoltaic Power Generation Station*1 Sold via FIT 701
Nishi-Kobe Works Used in-house 505
Nishi-Kobe Photovoltaic Power Generation Station*1 Sold via FIT 422
Akashi Works Used in-house 140
Sakaide Works Used in-house 50
Kakogawa Photovoltaic Power Generation Station*1 Sold via FIT 48
Hyogo Works Used in-house 25
Kobe Works Used in-house 20
Harima Works Used in-house 5
Total 4,171
*1
Power generation facility operated by Kawasaki Trading Co., Ltd.
*2
FIT: Feed-in tariff; a program where renewable energy is bought back at a fixed rate

Figure 12:Photovoltaic Output (used in-house)


Figure 13:Nagoya Works 1:
750-kW power generation facility
Figure 14:Nishi-Kobe Works:
927-kW power generation facility
(of which 422 kW are sold via FIT)

Reducing CO2 Emissions through Product-Based Contributions

About 90% of CO2 emitted during the lifecycles of our products is released during the period of their use after they are sold. Thus, the Company seeks to realize a low-carbon society by providing products that produce only low CO2 emissions during their use. We established a new rule for calculating the CO2 emissions reduction through product-based contributions, in order to quantify contributions of highly energy efficient products to the mitigation of global warming.
Calculations based on this rule showed that the CO2 emissions reduction through products we sold in fiscal 2018 was about 22.9 million tons. Large contributions were made mainly by the Green Gas Engine, which achieved the world’s highest power-generation efficiency in its class, and the CKK System, which reduced cement calcination fuel by combining cement manufacturing with waste processing.
In order to quantify contributions of highly energy efficient products to the mitigation of global warming, calculation of CO2 emissions reduction through product-based contributions includes power generated through waste heat, waste, renewable energy, and so forth. As a result, some of the products differ from those included in the calculation of Scope 3, Category 11, which covers only CO2 emissions from energy-derived sources.
Amounts for the past five years are shown in Figure 15.

Figure 15:CO2 Emission Reduction through Product-Based Contributions

Notes:
1:
Kawasaki used CO2 emissions factors provided in the list of calculation methods and emissions factors published by Japan’s Ministry of the Environment.
2:
The CO2 emission reduction effect through product-based contributions achieved through higher energy efficiency of products is based on a comparison using industry standard class products.
3:
Application of waste heat, waste, and renewable energy is counted toward the CO2 emissions reduction effect through productbased contributions.

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