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

Kawasaki is promoting energy-saving activities with the established target of reducing annual resource and energy costs by at least 5%. As a result of our energy-saving activities to make energy “visible,” which was fully introduced in 2013 with a focus on our plants, this target was achieved in fiscal 2017, as our energy costs were reduced by 7.1%.
We also make active use of such subsidies as the one by the Ministry of Economy, Trade, and Industry for supporting business operators intending to rationalize their energy use, to introduce energy-efficient equipment. In fiscal 2017, we updated air conditioning equipment, transformers, and other equipment with energy-efficient models at Akashi Works, Kobe Works, Hyogo Works, and Sakaide Works.
We also work to share information and promote energy saving by holding energy-saving practitioners’ conferences aimed at disseminating methods internally to promote energy saving, and energy-saving workshops in which we observe improvement through case studies and visit sites to see how energysaving methods are applied.

LED lighting installed (Seishin Works)
Energy-saving Workshop Dissemination of energy-saving methods (Akashi Works)

Target and Results of Energy Cost Reduction Effect


Rolling out energy visualization system

Toward realization of a low-carbon society, we aim to reduce CO2 emissions and energy consumption through energy-saving approaches. To achieve this end, we are rolling out the energy visualization system to factories throughout the KHI Group and have launched energy-saving activities that have the participation of all employees.
The energy visualization system "sees" utilization conditions for the different types of energy used at factories and pinpoints in real time such information as where, when, and how much energy is being consumed. The system reveals energy waste and irregularities and contributes to the reduction of energy consumption.

System Introduced at Major Factories in the KHI Group

Development of K-SMILE Energy Visualization System

K-SMILE is being developed as an energy visualization system for the KHI Group. Development began with configuration of a system that could tally demand for electricity at each factory in response to the tight supplyand- demand situation that arose in the wake of the Great East Japan Earthquake in March 2011. Today, it is being extended as a corporate system providing at-a-glance measurement data from major factories in Japan and utilizing it as a factory system for detailed analysis of energy savings achieved at each location.
K-SMILE is one strategy that will help us reach our goal to reduce CO2 emissions and energy consumption by more than 5% annually. In conjunction with measures to promote energy-saving improvements at factories, we will create a visualization system with greater sophistication.

Promote energy-saving activities with participation from all employees

In fiscal 2015, we achieved a 2% reduction in energy consumption, with a view to continuing our rollout of the system to all planned locations.
Going forward, we will be pursuing improvement activities involving all employees to accelerate energy-saving potential in several thousand pieces of production equipment.
To encourage all employees to support this system, we organize in-house information exchange opportunities on the topic of energy savings and set up study groups to highlight examples of the system in action. We strive to enhance energy savings and also, by promoting greater sophistication in the system’s energy analysis function, enable individuals who are not necessarily experts in energy management to detect energy waste or discrepancies.

Database for examples of energy-saving improvements

Examples of energy-saving improvements in-house and elsewhere are compiled into a database and shared company-wide.

Study sessions on energy-saving methods

People in all operating divisions who promote energy-saving activities gather at facilities where energy-saving measures have been successful for study sessions. By promoting energy-saving technology, we accelerate associated activities throughout the organization.

Lecture on energy-saving methods

Lectures on approaches to successful energy-saving, presented by invited, an external consultant, enhance awareness and responsiveness throughout the Company.


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 2017, improvement activities at production sites and a reduction in energy consumption using the energy visualization system were key factors in achieving a reduction of CO2 emissions of 6,000 tons.
As a result, CO2 emissions decreased by 1.1% year on year to 321,000 tons. On a per unit of sales basis, using net sales as the denominator, emissions decreased by 0.2% year on year to 28.6 tons/100 million yen, falling below the target of 3%. This is attributable to an increase in energy consumption resulting mainly from the launch of new facilities, and we expect to achieve the target in the future as sales grow due to operation of the new facilities.

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.

Fiscal 2017—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 17.9
Scope 2
Indirect emissions from energy-derived sources Indirect emissions accompanying use of electricity and heat purchased by Kawasaki 31.3

Fiscal 2017—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 556.6
(9.6%)
② Capital goods Emissions from construction and production of Kawasaki’s capital goods 22.3
(0.4%)
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 3.8
(0.1%)
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 0.7
(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 5,208.8
(89.6%)
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 17.1 (0.3%)
*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, to realize continuous reduction in CO2 emissions. In fiscal 2017, CO2 emissions increased by 12% year on year, to approximately 4,000 tons, due to an increase in freight transport to distant areas.

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 2017, we used about 1.7GWh of power from renewable energy sources in-house and reduced CO2 emissions by approximately 1,000 tons.

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
Nagoya Works 1: 750-kW power generation facility
Kawasaki Trading Co., Ltd.Iwaoka Photovoltaic Power Generation Station: 1,505-kW power generation facility

Photovoltaic Output (used in-house)


Reducing CO2 Emissions through Product-Based Contributions

Kawasaki calculates the CO2 emission reduction effect of products in use in four categories—energy & environmental engineering, air transportation systems,land/sea transportation systems, and ROBO-MECH—to determine the CO2 emission reduction effect through product-based contributions, and discloses this information to the public.
An analysis of CO2 emissions along our supply chain reveals that most of the CO2 emissions are released during product use, so our goal is to contribute to lower CO2 emissions through delivery of highly energy efficient products.
In fiscal 2017, the CO2 emission reduction effect through product-based contributions amounted to 898,000 tons, up 20% year on year, thanks to an increase in the number of high-efficiency power generation systems and biomass boilers, high-propulsion performance ships, and other systems delivered.

CO2 Emission Reduction Effect through Product-Based Contributions by Business Category

Category Reduction Effect Main Products Reason for Reduction
Energy & environmental engineering 632,000t-CO2
/year
Gas turbine cogeneration system,compressors, biomass boilers,waste incinerators Waste heat and waste utilization,higher efficiency
Air transportation systems 199,000t-CO2
/year
Aircraft (lightweight body) Better fuel economy
Land/sea transportation systems 39,000t-CO2
/year
Ships (improved propulsion performance) Better fuel economy
ROBO-MECH 28,000t-CO2
/year
Hydraulic equipment, robots Higher efficiency

CO2 Emission Reduction Effect 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 standard, existing products.
3:
Application of waste heat and energy derived from waste materials is counted toward the CO2 emission reduction effect through product-based contributions.

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