CO2 FREE

Various global initiatives aimed at controlling global warming are accelerating, including the Paris Agreement reached at the United Nations Framework Convention on Climate Change (with the target of holding the increase in the global average temperature to well below 2℃ above pre-industrial levels).

Kawasaki is contributing to the prevention of global warming through products and manufacturing that efficiently use energy.

10th Plan Target

Reduce fiscal 2021 CO2 emissions per unit of net sales by 20% from the fiscal 2013 level (non-consolidated).

Realization of a Low-Carbon Society

Proactive use of onsite power generation facilities
Consider energy supply and demand for each plant and draft concrete plans to adopt onsite power generation facilities. Consider both purchasing such facilities as internal capital expenditure and selling products for such facilities to energy supply companies and then using their power generation services.

Utilize renewable energy
Purchase electricity from solar power generation facilities on the roofs of our plants

Energy-saving activities
Promote energy saving by utilizing energy visualization systems and replacing aging equipment

Expand the CO2-reducing effects of Kawasaki-brand Green Products and other products


Reducing CO2 Emissions from Production Activities

Kawasaki has designated the target of reducing fiscal 2021 CO2 emissions from production activities per unit of net sales by 20% from the fiscal 2013 level. To achieve this target, we are advancing the key strategies of proactively utilizing onsite power generation facilities and utilizing renewable energy while continuing to implement ongoing energy-saving activities.

In fiscal 2019, CO2 emissions per unit of net sales came to 228 t-CO2/billion yen, down 21.6% from the fiscal 2013 level and on-pace to meet our target for fiscal 2021 (Figure 1).The main factors behind this decrease in per-unit CO2 emissions were restrained energy consumption thanks to energy saving activities and decreases in CO2 emission factors for purchased electricity.


Estimating Supply Chain CO2 Emissions

The Kawasaki Group’s CO2 emissions and energy consumption attributable to production activities are shown in Figures 2, 3 and 4. The Group’s supply chain CO2 emissions* are shown in Tables 1 and 2. The scope that Kawasaki is required to cover in tracking CO2 emissions is expanding toward the inclusion of not only its own operations but also those of its supply chain. Within the entire supply chain, the greenhouse gas (GHG) effect accompanying the use of Kawasaki-sold products 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.

* 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 calculates CO2 emissions along its supply chain.

Fiscal 2019—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 169
Scope 2
Indirect emissions from the generation of purchased energy Indirect emissions accompanying use of electricity and heat purchased by Kawasaki 290

Fiscal 2019—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 1,940
(1.6%)
② Capital goods Emissions from construction and production of Kawasaki’s capital goods 230
(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 13
(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) 0
(0.0%)
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 118,550
(98.0%)
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 2019, CO2 emissions decreased by 4% year on year, to approximately 4,100 tons (with energy consumption at approximately 60,000 GJ), due to a decrease in long-distance cargo transport by ship. Amounts for the past five years are shown in Figure 5 and Figure 6.


Onsite Power Generation

Kawasaki utilizes gas turbine and gas engine onsite power generation facilities as part of efforts to efficiently use energy at its plants (Figures 7 and 8). Under the 10th Environmental Management Activities Plan, we have begun considering the implementation of high-efficiency gas turbines and gas engines as well as ways to make greater use of waste heat in order to further reduce CO2 emissions.

In fiscal 2019, focusing mainly on plants where onsite power generation facilities are in operation, we identified current issues and began looking into replacing or newly installing such facilities. Taking into account the demand for electricity and heat at each plant, economic efficiency, and the current issues identified, we are advancing basic considerations of the power generation output and facility configurations that would best enable efficient energy use when optimally combined and balanced with purchased electricity and heat generated by boilers. Once we have finished these basic considerations, we will formulate concrete plans for specific facility configurations and installation methods and put them into action.

In addition, Kawasaki has designated the target of reducing 2030 CO2 emissions by 26% from the fiscal 2013 level. As greater CO2 emissions reductions will be required to achieve this target, we are considering the implementation of onsite power generation facilities that use hydrogen fuel and thus emit no CO2 during use.



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 4,178 kW (Table 3).

In fiscal 2019, these systems generated 4,883 MWh (Figure 9), of which 1,526 MWh was used in-house.*

* Equivalent to 0.3% of Kawasaki’s total energy consumption.

The Kawasaki Group’s Solar Power Generation Capacity

Name Power Usage Generation
Capacity (kW)
Iwaoka Photovoltaic Power Generation Station11 Sold via FIT2 1,505
Nagoya Works 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
Kawasaki Thermal Engineering Co., Ltd. Used in-house 6.6
Harima Works Used in-house 5
Total 4,178
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


Energy-Saving Promotion Activities

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

In fiscal 2019, Kawasaki awarded the Plant Energy-saving Grand Award to the Nishi-Kobe Works, part of the Precision Machinery Business Division, for its heat source energy-saving initiatives. This award praised multiple improvements that realized significant energy-saving effects without requiring large capital expenditure thanks to creative efforts at manufacturing worksites. One such improvement is highlighted below.

In a large building where products are tested prior to shipping, the heat generated by testing equipment made the adjacent work area too hot (Figure 12).

The plant’s employees considered the problem and realized that they could address it without installing additional air conditioning units, simply by more effectively using the cool air from the existing units. By changing the position and angle of the cool air vents, they were able to effectively replace hot air in the work area with cool air, solving the problem (Figure 13).


Reducing CO2 Emissions through Product-Based Contributions

More than 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 lowcarbon society by providing products that produce only low CO2 emissions during their use.

To reduce products’ post-sale CO2 emissions, in addition to increasing product energy efficiency, we are advancing electrification and modal shifts when replacing existing products in our product lineup and expanding our lineup of products that utilize exhaust heat, waste, and renewable energy. Key products that help reduce CO2 emissions are listed in Figure 14. In fiscal 2017, we revised our rules for calculating CO2 emissions reductions through product-based contributions in order to better quantify the contributions of such products to the mitigation of global warming.

Calculations based on these rules showed that the CO2 emissions reduction through products we sold in fiscal 2019 was about 23.1 million tons. Large contributions were made mainly by the M7A Series gas turbines for power generation, Kawasaki-brand Green Products boasting excellent reliability, economy, and environmental friendliness, and the M7V Series motors for HSTs,1 which boast world-leading output control.



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: Until fiscal 2016, we used a one-year period of assessment. However, in line with the revision of the calculation rules, since fiscal 2017, we have adopted a flow-based approach10 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.

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