Supplementary Material for Integrated Report 2020
In fiscal 2019, the KOBELCO Group worldwide used a total of 196 PJ of energy (equivalent to 5.06 million kl of crude oil) in all of its business divisions.
| Unit | FY 2017 | FY 2018 | FY 2019 | |
|---|---|---|---|---|
| Energy usage | PJ | 218 | 206 | 196 |
| Net sales | Million yen | 1,881,158 | 1,971,869 | 1,869,835 |
| Energy intensity per Net sales | GJ/ Million yen | 116 | 104 | 105 |
| Compared to FY2017 | - | -10% | -10% | |
| Products (crude steel, aluminum rolled products, copper rolled products) |
Million t | 8.1 | 7.5 | 7.0 |
| Energy intensity per t-product | GJ/ t-Product | 27.1 | 27.5 | 27.8 |
Note:
1. Emissions for past years have been recalculated due to revisions to electric power coefficients, etc.
2. The data above covers 99% of the environmental impact of the KOBELCO Group.
In response to global warming, the KOBELCO Group promotes rationalization and R&D to reduce energy consumption throughout its operations in an effort to decrease greenhouse gas emissions.
In fiscal 2019, the KOBELCO Group’s businesses generated 16.5 Mt of CO2 emissions in total.
| Unit | FY 2017 | FY 2018 | FY 2019 | |
|---|---|---|---|---|
| CO2 emissions (Scope 1 + 2) | Million t-CO2 | 18.7 | 17.4 | 16.5 (16.3*1 ✔) |
| CO2 emissions (Scope1) | Million t-CO2 | 17.7 | 16.4 | 15.6 (15.5*1 ✔) |
| CO2 emissions (Scope2) | Million t-CO2 | 1.0 | 1.0 | 0.9 (0.8*1 ✔) |
| Net sales | Million yen | 1,881,158 | 1,971,869 | 1,869,835 |
| CO2 emission intensity per Net sales | t-CO2/ Million yen | 9.9 | 8.8 | 8.8 |
| Compared to FY2017 | - | -11% | -11% | |
| Products (crude steel, aluminum rolled products, copper rolled products) |
Million t | 8.1 | 7.5 | 7.0 |
| CO2 emission intensity per t-Product | t-CO2/ t-Product | 2.3 | 2.3 | 2.3 |
*1 Kobe Steel, Ltd. and group companies in Japan
*2 The data above covers 99% of the environmental impact of the KOBELCO Group. Emissions from offices are not included.
*3 Emissions from the Iron & Steel Business include those from coke production.
*4 As emission factors from purchased power in fiscal 2019 have yet to be announced, results for fiscal 2018 were used.
*5 Emissions for past years have been recalculated due to revisions to electric power coefficients, etc.
✔: Items covered by third-party assurance. In order to improve the reliability and transparency of CO2 emissions data, Kobe Steel receives a third-party assurance.
| Category | FY 2017 | FY 2018 | FY 2019 | Calculation method |
|---|---|---|---|---|
| 1. Purchased goods and services | 5,805 | 5,353 | 5,214 ✔ | Annual amount of iron ore, coking coal, aluminum and copper multiplied by CO2 emissions unit values*1 |
| 2. Capital goods | 289 | 273 | 263 ✔ | Capital investment cost multiplied by CO2 emissions unit values*1 |
| 3. Fuel- and energy-related activities | 295 | 278 | 302 ✔ | Annual consumption of electricity, steam and fuel etc. multiplied by CO2 emissions unit values*1 |
| 4. Upstream transportation and distribution | 211 | 201 | 192 ✔ | Using the calculation method for energy-derived CO2 emissions related to freight transportation by shippers as stipulated in the Act*2. |
| 5. Waste generated in operations | 41 | 34 | 39 ✔ | The amount of industrial waste for each type multiplied by CO2 emissions unit values*1 * Figures for FY 2017 are estimated based on data from 2018. |
| 6. Business travel | 1 | 1 | 2 ✔ | Number of employees multiplied by CO2 emissions unit values*1 |
| 7. Employee commuting | 5 | 5 | 5 ✔ | Number of employees multiplied by CO2 emissions unit values*1 |
| 8. Upstream leased assets | N/A | N/A | N/A | CO2 emissions associated with the operation of assets leased to Kobe Steel are included in Scope 1 and Scope 2 emissions. |
| 9. Downstream transportation and distribution | N/A | N/A | N/A | We have no applicable business activities. |
| 10. Processing of sold products | 3,131 | 2,946 | 2,713 ✔ | Calculated by multiplying the volume of major steel products by the CO2 emissions per unit of production for each type of steel product. |
| 11. Use of sold products | - | - | 24,702 ✔ | Covers major products sold by Machinery business of Kobe Steel. Calculated based on the emissions associated with use for the duration of the service life. |
| 12. End-of-life treatment of sold products | 71 | 66 | 62 ✔ | Calculated by multiplying CO2 emissions unit values*1 by the production volume of crude steel, aluminum and copper products |
| 13. Downstream leased assets | N/A | N/A | N/A | We have no applicable business activities. |
| 14. Franchises | N/A | N/A | N/A | We do not have franchises. |
| 15. Investments | N/A | N/A | N/A | We have no applicable business activities. |
| Total*3 | 9,850 | 9,157 | 33,494 ✔ |
*1 Green Value Chain Platform of Ministry of the Environment (Used Ver 2.6 for FY 2017 and FY 2018, and Ver 3.0 for FY 2019), etc.
*2 Act on the Rational Use of Energy
*3 As each category is rounded off to a whole number, the total of each category and the sum of categories 1 to 15 may not match.
✔: Items covered by third-party assurance. In order to improve the reliability and transparency of CO2 emissions data, Kobe Steel receives a third-party assurance.
| Item | FY 2017 | FY 2018 | FY 2019 |
|---|---|---|---|
| 1. Energy-derived CO2 emissions*1 | 17,700,000 t-CO2 | 16,400,000 t-CO2 | 15,600,000 t-CO2 |
| 2. Non-energy derived CO2 emissions | 624,000 t-CO2 | 565,000 t-CO2 | 574,000 t-CO2 |
| 3. Methane (CH4) | 6,230 t-CO2 | 5,750 t-CO2 | 5,570 t-CO2 |
| 4. Nitrous oxide (N2O) | 43,700 t-CO2 | 40,500 t-CO2 | 43,600 t-CO2 |
| 5. Hydrofluorocarbons (HFCs) | 0 t-CO2 | 0 t-CO2 | 0 t-CO2 |
| 6. Perfluorocarbons (PFCs) | 0 t-CO2 | 0 t-CO2 | 0 t-CO2 |
| 7. Sulfur hexafluoride (SF6) | 12,900 t-CO2 | 15,600 t-CO2 | 16,900 t-CO2 |
| 8. Nitrogen trifluoride (NF3) | 0 t-CO2 | 0 t-CO2 | 0 t-CO2
|
*1 Includes emissions of Group companies in and outside Japan
| Production facility / company name | Location | Examples of initiatives |
|---|---|---|
| Kakogawa Works, Kobe Steel, Ltd. | Kakogawa, Hyogo Prefecture | Improved output of the furnace top pressure recovery turbine (TRT) power generation facility |
| Introduced latest-model, high-efficiency compressors | ||
| Switched fuel | ||
| Fujisawa Plant, Kobe Steel, Ltd. | Fujisawa, Kanagawa Prefecture | Switched fuel with boiler upgrade |
| Upgraded to invertor-controlled chillers | ||
| Upgraded the cooling tower to an inverter system | ||
| Ibaraki Plant, Kobe Steel, Ltd. | Ibaraki, Osaka Prefecture | Upgraded the heating furnace |
| Switched a portion of plant lighting to LED lighting | ||
| Upgraded chillers to latest models | ||
| Upgraded air conditioners to latest models | ||
| Saijo Plant, Kobe Steel, Ltd. | Higashihiroshima, Hiroshima Prefecture | Upgraded high voltage power receiving and substation facilities to latest models |
| Switched a portion of plant lighting to LED lighting | ||
| Fukuchiyama Plant, Kobe Steel, Ltd. | Fukuchiyama, Kyoto Prefecture | Switched a portion of plant lighting to LED lighting |
| Moka Works, Kobe Steel, Ltd. | Moka, Tochigi Prefecture | Improved insulation for the heating furnace |
| Upgraded compressors to latest models | ||
| Switched a portion of plant lighting to LED lighting | ||
| Chofu Works, Kobe Steel, Ltd. | Shimonoseki, Yamaguchi Prefecture | Upgraded combustion burners on the heating furnace |
| Improved insulation for the heating furnace | ||
| Switched a portion of plant lighting to LED lighting | ||
| Improved insulation for heaters | ||
| Daian Works, Kobe Steel, Ltd. | Inabe, Mie Prefecture | Switched a portion of plant lighting to LED lighting |
| Harima Plant, Kobe Steel, Ltd. | Kakogun, Hyogo Prefecture | Switched mercury lamps and fluorescent lights at standard plant, office, and distribution center to LED lighting |
| Upgraded transformers to latest models | ||
| Takasago Works, Kobe Steel, Ltd. | Takasago, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Upgraded boilers to latest models | ||
| Upgraded transformers to latest models | ||
| Kobelco Engineered Construction Materials Co., Ltd. | Amagasaki, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Upgraded boilers to latest models | ||
| Amagasaki Works, Shinko Wire Company, Ltd. | Amagasaki, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Upgraded transformers to latest models | ||
| Upgraded air conditioners to latest models | ||
| Onoe Works, Shinko Wire Company, Ltd. | Kakogawa, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Shinko Wire Stainless Co., Ltd. | Izumisano, Osaka Prefecture | Switched a portion of plant lighting to LED lighting |
| Shinko Bolt, Ltd. | Ichikawa, Chiba Prefecture | Switched a portion of plant lighting to LED lighting |
| Toyama Works, Nippon Koshuha Steel Co., Ltd. | Imizu, Toyama Prefecture | Switched fuel and introduced regenerative burners for the heating furnace |
| Koshuha-Foundry Co., Ltd. | Hachinohe, Aomori Prefecture | Switched a portion of plant lighting to LED lighting |
| Upgraded transformers to latest models | ||
| Shinko Leadmikk Co., Ltd. | Kitakyushu, Fukuoka Prefecture | Switched a portion of plant lighting to LED lighting |
| Upgraded air conditioners to latest models | ||
| Kobelco & Materials Copper Tube, Ltd. | Hadano, Kanagawa Prefecture | Upgraded chillers to latest models |
| Switched a portion of plant lighting to LED lighting | ||
| Shinko Engineering Co., Ltd. | Ogaki Gifu Prefecture | Switched a portion of plant lighting to LED lighting |
| Hiroshima Factory, Kobelco Construction Machinery Co., Ltd. | Hiroshima, Hiroshima Prefecture | Switched a portion of plant lighting to LED lighting |
| Ogaki Factory, Kobelco Construction Machinery Co., Ltd. | Ogaki, Gifu Prefecture | Switched a portion of plant lighting to LED lighting |
| Okubo factory, Kobelco Construction Machinery Co., Ltd. | Akashi, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Harima Plant, Kobelco Eco-Solutions Co., Ltd. | Harimacho, Hyogo Prefecture | Upgraded compressors to latest models |
| Switched a portion of plant lighting to LED lighting | ||
| Shinko Industrial Co., Ltd. | Kurayoshi, Tottori Prefecture | Switched a portion of plant lighting to LED lighting |
| Saved energy by adding a steam decompression valve | ||
| Kobelco Power Kobe Inc. | Kobe, Hyogo Prefecture | Switched a portion of plant lighting to LED lighting |
| Kobelco MIG Wire (Thailand) Co., Ltd. | Thailand | Optimized equipment motor capacity |
| Thai Kobelco Welding Co., Ltd. | Thailand | Upgraded to invertor-controlled chillers |
| Switched a portion of plant lighting to LED lighting | ||
| Kobe Precision Technology Sdn. Bhd. | Malaysia | Upgraded compressors to latest models |
| Switched a portion of plant lighting to LED lighting | ||
| Kobe Aluminum Automotive Products, LLC | USA | Switched a portion of plant lighting to LED lighting |
| Kobelco Aluminum Products & Extrusions Inc. | USA | Installed new invert-type high-efficiency compressors |
| Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd. | China | Switched a portion of plant lighting to LED lighting |
| Kobelco & Materials Copper Tube (Thailand) Co., Ltd. | Thailand | Upgraded compressors to inverter types |
| Switched a portion of plant lighting to LED lighting | ||
| Upgraded pumps to latest models | ||
| Kobelco & Materials Copper Tube (M) Sdn. Bhd. | Malaysia | Upgraded the cooling tower’s motor to the latest model |
| Switched a portion of plant lighting to LED lighting | ||
| Kobelco Construction Machinery (China) Co., Ltd. | China | Switched a portion of plant lighting to LED lighting |
| Kobelco Construction Machinery Southeast Asia Co., Ltd. | Thailand | Upgraded some equipment to inverter types
|
In December 2020, Kobe Steel announced that it supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
As a member of the Global CCS Institute and the Carbon Recycling Fund Institute, we actively acquire the latest information on CCUS (Carbon dioxide Capture, Utilization and Storage) technology and work on technological development and research on CO2 separation, capture, recycling and sequestration for future practical use.
The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and deliver climate neutrality. The institute is headquartered in Melbourne, Australia, with offices in Tokyo, Washington DC, Brussels, Beijing and London.
The Carbon Recycling Fund Institute aims to address the global warming issue and improve the energy access throughout the world. The institute promotes innovation in carbon recycling by public relations and sponsoring the research and development in the field.
In addition, each of the following industry groups to which the KOBELCO Group belongs has formulated a Commitment to a Low Carbon Society. We will contribute to the achievement of the targets set out in the Commitment to a Low Carbon Society of each industry group to which we belong by pursuing energy savings and CO2 reduction in production processes.
| Industry groups | Industry targets for reducing CO2 emissions from production processes in the Commitment to a Low Carbon Society | |
|---|---|---|
| FY 2020 target | FY 2030 target | |
| The Japan Iron and Steel Federation | Eco Process: Reduction*1 of over 3 million tons versus BAU*2 | Eco Process: Reduction of 9 million tons versus BAU |
| Japan Aluminium Association | Reduction of 1.0 GJ/t energy intensity per unit of rolled volume versus BAU in FY 2005 | Reduction of 1.2 GJ/t energy intensity per unit of rolled volume versus BAU in FY 2005 (best effort target) |
| Japan Copper and Brass Association | Reduction of 4% energy intensity versus BAU with production activity volume of 380,000 tons | Reduction of 6% energy intensity versus BAU with production activity volume of 380,000 tons |
| The Japan Society of Industrial Machinery Manufacturers | Average annual improvement of at least 1% energy consumption per unit (kL/¥100 million) | Reduction of 10% in CO2 emissions versus FY 2013 |
| Japan Construction Equipment Manufacturers Association | Reduce the manufacturing energy consumption rate by 8% from the 5-year average of 2008 to 2012. | Reduce the manufacturing energy consumption rate by 17% from the actual achievement of 2013. |
*1 The Japan Iron and Steel Federation prioritizes 3 million tons of reduction arising from energy conservation and other voluntary actions by steelmakers. For waste plastics and other recycled materials, the emission reduction counts only a decrease resulting from the increase in the volume of these materials collected compared to FY2005.
*2 BAU (Business As Usual): emissions of greenhouse gases, or emissions per unit, assuming no additional measures are taken
The President and CEO of Kobe Steel has been appointed as vice chairman of the Japan Iron and Steel Federation, and Kobe Steel is actively and deeply involved in the activities of the industry organizations to which it belongs.
Kobe Steel’s officers and employees have been appointed to various committees of industry associations related to climate change. They are actively involved in industry association activities such as setting goals, following-up the results and summary, sharing information, and attending meetings organized by industry organizations to exchange opinions with government officials.
Kobe Steel has taken the following steps to ensure consistency with the positions of industry associations. When business associations discuss matters related to public policy, relevant committees present draft proposals. As Kobe Steel’s officers and employees are appointed as members of various committees related to climate change, they share the proceedings of these committees within the company to confirm whether they are in line with Kobe Steel’s position and policy. If there are any inconsistencies, they make adjustments through the committees. We also constantly exchange information with industry groups on Kobe Steel’s climate change strategies and targets in order to ensure consistency with their positions and targets. Through this process, we ensure Kobe Steel’s climate change strategy is aligned with the efforts of industry associations.
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