Realization of a Low-Carbon Society

Various global initiatives aimed at controlling global warming have started to come into force, including the Paris Agreement set at the United Nations Framework Convention on Climate Change.
Kawasaki is contributing to the prevention of global warming through products and manufacturing that efficiently use energy.
Under the Ninth Environmental Management Activities Plan, we improved manufacturing efficiency at plants in Japan by introducing energy visualization systems to quickly identify wasteful operations.
In addition, by advancing the use of renewable energy, we achieved steady reductions in CO2 emissions from business activities.
In light of governmental guidelines, we also adopted new rules for calculating the CO2 reduction effect of product-based contributions. This has made our designation of applicable products and calculation periods more accurate, allowing us to more precisely use product-based contributions to appeal to global markets.


Energy-Saving Promotion Activities

The Company established an energy-saving promotion structure for each business segment and implemented various Company-wide energy-conservation initiatives.

Energy-saving Grand Award

Kawasaki has operated the Company-wide Energy-saving Awards Program since 2017. The fiscal 2018 Energy-saving Grand Award went to “The creation of power source management mechanisms based on the visualization of electric devices used and idle times,” implemented by the Sakaide Works shipyard of the Ship & Offshore Structure Company. A great deal of electric equipment (such as temporary lighting, welders, and fans) is used in ships that are being fitted out (i.e., ships on which the internal equipment is being installed). This improvement was achieved by creating mechanisms to supply power only to the components necessary at any specific time.
Previously, even if employees wanted to turn off the power to devices when they were not using them, they ran into difficulties because some equipment must be left on 24 hours a day, and it is often hard to know who is using what power supply. To address this, the power sources of equipment that must be left on constantly and the supply lines for other equipment were separated, and employees were asked to file applications indicating who would be using what equipment when, revealing which devices did not require constant power supply. The Works then created a timer-based control board to automatically shut off power to unnecessary equipment, significantly reducing power consumption.

Energy-saving electric equipment is used for fitting out ships
Power usage before and after power source management (analysis using the K-SMILE energy visualization system)

Energy-saving Internal Audits

At each of Kawasaki’s plants, the Company maintains facility management ledgers and management standards based on Japan’s Energy Saving Law and works to rationalize energy use. The Akashi Works’ Energysaving Promotion Committee (which is also responsible for the Seishin Works and Kakogawa Works) has created and implemented Kawasaki’s first energy-saving internal audits.
An audit team comprising the energy managers of the Akashi, Seishin, and Kakogawa works and staff from the committee’s administrative office audited nine production sites in fiscal 2018, checking whether energy management was being carried out appropriately. These facilities will continue to execute annual energy-saving management audits to promote the further rationalization of energy use.

An energy-saving internal audit

Working Toward Further Energy Savings in Production

By incorporating production facility utilization data into Kawasaki’s energy visualization system (K-SMILE), we enabled the simultaneous quantitative analysis of facility utilization and energy use. This has created a framework that allows us to understand facilities’ rates of utilization as well as to identify equipment that consumes great deal of energy when not in use and take steps toward improvement. Going forward, we will strive to further improve the energy efficiency of production facilities.

Simultaneous analysis of facility utilization and energy use using the K-SMILE energy visualization system

Reducing CO2 Emissions from Production Activities

To reduce CO2 emissions from production activities, Kawasaki is promoting Company-wide energy-saving activities aimed at cutting energy consumption.
In fiscal 2018, Kawasaki’s energy-saving activities reduced annual energy consumption by approximately 360 TJ and annual CO2 emissions by approximately 16 kt.
As a result, despite increases in energy consumption and CO2 emissions due to increased facility operation and the beginning of operations at a new plant, Kawasaki’s non-consolidated energy consumption for fiscal 2018 was down year on year, at 6,290 TJ.
Furthermore, thanks in part to a year-on-year decrease in CO2 emission factors for specific power providers, CO2 emissions fell to 301,000 tons.

Energy Consumption in Production Activities

CO2 Emissions from Production Activities

Notes:
1.
The CO2 emission factors are the 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 the figures published by the Greenhouse Gas Protocol.

Estimating Supply Chain CO2 Emissions

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, an internationally accepted set of greenhouse gas (GHG) calculation and reporting guidelines. 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 Organizations’ GHG Emissions throughout the Supply Chain, established jointly by the Ministry of Economy, Trade and Industry and the Ministry of the Environment. Using these basic guidelines, Kawasaki calculated CO2 emissions along its supply chain and received third-party verifications of the results, 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 2018—the Kawasaki Group’s Scope 1 and Scope 2 Calculation Results

Category Calculation Targets Calculation
Results
(kt-CO2/year)
Scope 1
Direct emissions Direct emissions through use of fuel at Kawasaki and associated industrial processes 162
Scope 2
Indirect emissions from the generation of purchased energy Indirect emissions accompanying use of electricity and heat purchased by Kawasaki 311

Fiscal 2018—Kawasaki’s Scope 3 Calculation Results

Category Calculation Targets Calculation
Results
(kt-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 6,049
(4.5%)
② Capital goods Emissions from construction and production of Kawasaki’s capital goods 293
(0.2%)
③ Fuel- and energy-related activities not included under Scope 1 or Scope 2 Emissions associated with procurement of fuel from other providers and procurement of fuel required to generate power, such as electricity and heat 37
(0.0%)
④ Upstream transportation and distribution Emissions associated with logistics of raw materials,parts, purchased goods, and sales-related materials up to delivery to Kawasaki 8
(0.0%)
⑤ Waste generated in operations Emissions associated with transportation and processing of waste generated by Kawasaki 12
(0.0%)
⑥ Business travel Emissions associated with business travel by employees 15
(0.0%)
⑦ Employee commuting Emissions associated with transportation of employees between their homes and their worksites 7
(0.0%)
⑧ Upstream leased assets Emissions associated with operation of assets leased by Kawasaki (excluding those included in Scope 1 or Scope 2 calculations) Included in Scope 1
and Scope 2 calculations
Scope 3 (Other indirect emissions): Downstream
⑨ Downstream transportation and distribution Emissions associated with transportation, storage,cargo handling, and retail sales of products 0
(0.0%)
⑩ Processing of sold products Emissions associated with processing of intermediate products by companies Excluded1
⑪ Use of sold products Emissions associated with use of products by consumers and companies 126,823
(95.1%)
⑫ End-of-life treatment of sold products Emissions associated with transportation and treatment of products upon disposal by consumers and companies Excluded1
⑬ Downstream leased assets Emissions associated with operation of assets leased to other companies Excluded2
⑭ Franchises Emissions by franchisees Excluded2
⑮ Investments Emissions related to operation of investments 173
(0.1%)
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 “Upstream transportation and distribution”), to realize continuous reduction in CO2 emissions.
In fiscal 2018, CO2 emissions increased by 5% year on year, to approximately 4,200 tons (with energy consumption at approximately 60,000 GJ), due to an increase in cargo transport by truck as a result of increased sales volumes of mass-produced products.

CO2 Emissions from Logistics Processes and CO2 Emissions Per Unit of Net Sales

Notes:
1.
Per unit of net sales figures are obtained by dividing CO2 emissions by net sales.
2.
The CO2 emissions factors used are values published by the Agency for Natural Resources and Energy.

Energy Consumption from Logistics Processes



Utilizing Renewable Energy

The Kawasaki Group is making its production and other equipment more energy efficient and advancing the use of renewable energy to reduce the CO2 emissions from its plants. We are installing solar power generating systems at our plants, and currently have a total solar power generation capacity of 4,171 kW, including subsidiaries (some installations were subsidized by the New Energy Promotion Council).
In fiscal 2018, we generated approximately 4.7 GWh of power, of which, approximately 1.6 GWh came from renewable energy sources and was used in-house, reducing CO2 emissions by approximately 700 tons.

Photovoltaic Output (Including Power Sold via FIT)


The Kawasaki Group’s Solar Power Generation Capacity

Name Power Usage Generation
Capacity (kW)
Iwaoka Photovoltaic Power Generation Station1 Sold via FIT2 1,505
Nagoya Works 1 Used in-house 750
Seishin Photovoltaic Power Generation Station1 Sold via FIT 701
Nishi-Kobe Works Used in-house 505
Nishi-Kobe Photovoltaic Power Generation Station1 Sold via FIT 422
Akashi Works Used in-house 140
Sakaide Works Used in-house 50
Kakogawa Photovoltaic Power Generation Station1 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 in which renewable energy is bought back at a fixed rate
Nagoya Works 1: 750-kW power generation facility
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 life cycles of our products is released during the period of their use after they are sold. Therefore, the Company seeks to realize a low-carbon society by providing products that produce only low CO2 emissions during their use. In fiscal 2017, we established new rules for calculating the CO2 emissions reduction through product-based contributions in order to better quantify the contributions of highly energy efficient products to the mitigation of global warming.
Calculations based on these rules showed that the CO2 emissions reduction through products we sold in fiscal 2018 was about 29.1 million tons. Large contributions were made mainly by the Green Gas Engine, a Kawasaki-brand Green Product boasting world-leading power-generation efficiency, and the M7V Series motors for HSTs1, which boasts world-leading output control.
In order to quantify the contributions of highly energy efficient products to the mitigation of global warming, products included in the calculation of CO2 emissions reduction through product-based contributions include power generated through waste heat, waste, renewable energy, and so forth. As a result, some of the products included differ from those included in the calculation of Scope 3, Category 11, which covers only energy-derived CO2 emissions.

1.
HST: Hydrostatic transmission: A non-stage transmission comprising a hydraulic pump and hydraulic motors.

CO2 Emission Reduction through Product-Based Contributions

Notes:
1.
Kawasaki uses 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 the higher energy efficiency of products is based on a comparison using industry standard products.
3.
The application of waste heat, waste, and renewable energy is counted toward the CO2 emissions reduction effect through product-based contributions.

Calculation Rules

  • Products to be assessed: Kawasaki-brand Green Products, products that use waste, waste heat, and renewable energy, as well as cogeneration systems and rolling stock pertaining to modal shifts, etc., were selected for assessment.
  • Period of assessment: We previously used a one-year period of assessment. However, we have now adopted a flow-based approach1 in which the period of assessment is the estimated useful life of products sold in the fiscal year, because the estimated useful lives of our products are long. This allows us to better calculate the difference in CO2 emissions between our products and industry standard class products over the entire period of use.
1.
Please refer to the “Guideline for Quantifying Greenhouse Gas Emission Reduction Contribution” (Ministry of Economy, Trade and Industry, March 2018).

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