Climate-related disclosures in line with the Recommendations of the TCFD

In December 2020, Kobe Steel announced that it supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

TCFD

TCFDconsortium

Our climate-related disclosures in line with the Recommendations of the TCFD is as follows.

Climate-related Governance

In our company, as an organization specialized in issues related to climate-related risks and opportunities, the CO2 Reduction Promotion Subcommittee (Chairperson: Officer in charge of Corporate Planning Department) was established in the Sustainability Management Committee (Chairperson: Director, Executive Officer) to conduct strategic studies related to climate change. This put into place a structure for facilitating Companywide activities to reduce CO2 emissions.

Assessment and management of climate-related risks and opportunities are regarded as important management issues, and important decisions of the CO2 Reduction Promotion Subcommittee are subject to the approval of the relevant Executive Steering Committee. The Steering Committee consists of directors and executive officers , as knowledge from a wide range of perspectives and viewpoints is required for climate-related issues, including business, management, legal, and technological development.

The results and activities of the CO2 Reduction Promotion Subcommittee and the CO2 Reduction Technology Study Working Group are reported to the Board of Directors once a quarter through the Sustainability Management Committee (Chairperson: Director, Executive Officer) and are supervised by the Board of Directors. In addition, important climate-related decisions are proposed to the Exectutive Council and the Board of Directors through the Sustainability Management Committee, deliberated by the Executive Council, and approved by the President and the Board of Directors.

Climate-Related governance structure

Climate-Related governance structure

Climate-Related Strategy

Kobe Steel analyzes the medium- to long-term risks and opportunities associated with climate change based on consideration for the socio-economic scenarios proposed by the International Energy Agency; the long-term visions formulated and announced by the Japan Iron and Steel Federation, the Japan Aluminium Association, and other industry organizations; and the energy policies of Japan.

Short-to-Medium- and Long-Term Climate-Related Risks and Opportunities

Short-to-Medium- and Long-Term Climate-Related Risks and Opportunities

Responses to Risks and Opportunities (R&D)

production_process

KOBELCO Group's CO2 Reduction Solution on iron making process

—Innovative technology to reduce CO2 emissions from blast furnace operations successfully verified—

Kobe Steel, Ltd. announces that it has successfully demonstrated the technology that can reduce a significant amount of CO2 emissions from blast furnace operations, combining the technologies of Midrex in the engineering business and the blast furnace operation technology in the iron and steel business. This achievement is a result of the integrated efforts of the Kobe Steel Group (also known as the KOBELCO Group) leveraging its diverse businesses. The demonstration test was conducted for a month at a large blast furnace (4,844 m3) of the Kakogawa Works in Hyogo Prefecture, Japan in October 2020.

The quantity of CO2 emissions from the blast furnace is determined by the reducing agent rate (RAR)*1) or the quantity of carbon fuel used in blast furnace ironmaking. In the demonstration test, it was verified that RAR could be stably reduced from 518 kg/tHM (ton hot metal) to 415 kg/tHM by charging a large amount of hot briquetted iron (HBI) produced by the MIDREXR Process. The results indicate that this technology can reduce CO2 emissions by approximately 20% compared to a conventional method*2).

In addition, the world's lowest level of coke rate (239 kg/tHM) has been achieved in the demonstration test of this technology. The company sees it as a promising solution that could become readily available in the near future at a lower additional cost compared to other CO2 reduction measures.

KOBELCOグループの製鉄工程におけるCO<sub>2</sub>低減ソリューション

The key technologies utilized for this achievement are:
  • (1) Technologies of Midrex for HBI manufacturing in the engineering business
  • (2) Blast furnace operation technology in the iron and steel business
  • (e.g. advanced pellet production technology, HBI charging technology for blast furnaces, and blast furnace operation technology utilizing AI)

All of these technologies are developed by the KOBELCO Group as generic solution technologies applicable to various blast furnaces.

The KOBELCO Group has always strived to and will continue to provide solutions to the needs of society by making the best use of the talents of our employees and our technologies with a view to realizing a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

  • *1) Reducing agent rate (RAR) = coke rate (determined by the quantity of coke used in blast furnace) + pulverized coal rate (determined by the quantity of pulverized coal injected into blast furnace). Coke is carbon fuel made from coal. Pulverized coal means crushed coal.

    *2) The results are compared with fiscal 2013, which is the base year of the CO2 reduction targets set by the government and the KOBELCO Group.

Detail is below:

Impacts on businesses, strategy and financial planning

According to the "Mandatory Greenhouse Gas Accounting and Reporting System of FY2016 (Ministry of the Environment)" Kobe Steel is the 3rd largest emitter of greenhouse gases in Japan.Our company also pays the Tax for Climate Change Mitigation (CO2 emissions from the use of coal, oil, LPG and LNG: ¥289 per 1 ton), and in the future, if the Tax for Climate Change Mitigation is increased or a new carbon pricing is imposed, it is expected to have a significant impact on our business, so we always keep a close eye on these trends. If regulations or taxes are imposed on CO2 and other emissions in the future, our group's business activities, particularly those related to steel, will be restricted, and there is a possibility that our group's business results will be affected by a decrease in sales or an increase in costs.

The KOBELCO group has been promoting energy conservation efforts as a measure to mitigate the impact of carbon pricing. Our group invested approximately 1.6 billion yen in energy conservation capital investments in fiscal 2020.

Examples of investments in fiscal 2020 included an introduction of inverters to dust collectors at the Kakogawa Works, the renewal of boilers at the Chofu Works. For other initiatives, please refer to the following link.

The KOBELCO group is also engaged in the development of various technologies related to "Reduction of CO2 Emissions in Production Processes" and "Contribution to Reduction of CO2 Emissions through Technologies, Products, and Services" in order to contribute to the reduction of CO2 emissions by society as a whole. In fiscal 2019, we spent approximately 4.5 billion yen on research and development related to climate change.

Scenario Analysis

Implementation and Monitoring of Scenario Analysis

Under the Sustainability Management Committee, we established the CO2 Reduction Promotion Subcommittee to study Companywide measures to lower CO2 emissions. The subcommittee has taken the lead in conducting medium-term (2030) and long-term (2050) scenario analyses of climate change in the Group.

Our scenario analysis is based on the Sustainable Development Scenario (SDS) to limit the global temperature rise to 2 ºC, presented by the International Energy Agency (IEA). We also refer to long-term visions published by industry organizations to which we belong, such as the Japan Iron and Steel Federation (JISF) and the Japan Aluminium Association, to conduct our analyses and evaluations. For the electric power segment, which is closely related to Japan’s energy policy, we conduct scenario analysis based on the energy policy of the national government.

Impact on Business

As more than 90% of our CO2 emissions come from the steelmaking process, the medium- to long-term trends in the steel industry will have the greatest impact on our business. According to the “JISF Long-Term Vision for Climate Change Mitigation—A Challenge towards Zero-Carbon Steel,” there is a certain correlation between economic growth and the amount of steel accumulated per capita. As the population increases, therefore, the total amount of steel stock will grow.

Steel production can be broadly divided into production with natural resources (iron ore, mainly using blast furnaces and direct reduced iron) and production with reusing scrap (mainly using electric furnaces). According to JISF predictions, the reuse of scrap is expected to increase significantly due to the increase in the total amount of steel stock. On the other hand, demand for steel cannot be met by recycling scrap alone. Accordingly, production using natural resources (iron ore) will continue to require the same level of production as at present.

Amid growing interest in addressing climate change and disclosing relevant information, the importance of CO2 reduction efforts in the iron and steel industry is expected to continue increasing. For this reason, we anticipate that our stakeholders, including national and local governments, investors, and customers, will pay greater attention to our efforts to reduce CO2 emissions from our own facilities and expand our environmental menu that contributes to CO2 emission reduction.

Risks and Opportunities

One of our core businesses is the manufacture and sale of steel products, which falls under the industry category of energy intensive basic materials. The Group’s CO2 emissions in fiscal 2020 totaled 15.3 million tons (Scope 1 & 2), which ranks high even in Japan’s manufacturing industry. Accordingly, we recognize that future climate change policies, laws, and regulations, including carbon pricing, are risks that may have a significant impact on our business operations. Please refer to page 36 for our CO2 emission reduction roadmap for 2050. Roadmap is below.

The Japan Meteorological Agency (JMA) and various research institutes have reported that as global warming progresses, the amount of precipitation tends to rise due to the increase of water vapor in the atmosphere, and damage caused by heavy rain and typhoons tends to become more severe. The risk of production stoppages and supply chain disruptions stemming from severe typhoons and heavy rains in recent years is also becoming more and more apparent. We recognize that further intensification of typhoons, floods, and other natural disasters caused by climate change poses a risk that could have a significant impact on our operations and lead to suspension of production activities.

In accordance with our Risk Management Regulations, we have defined “climate-related regulations” and “natural disaster preparation and recovery” as “Top Risks” that are expected to have a particularly severe impact when an event occurs, with the aim of strengthening our risk management.

Meanwhile, demand for products and services that generate low CO2 emissions is increasing amid growing international interest in climate-related issues. For this reason, we expect demand for products that help reduce CO2 emissions, such as our automotive weight reduction materials and the MIDREX® Process, to grow over the medium to long term. Please refer to pages 37–38 for information on our strategy for the environmental menu that contributes to reducing CO2 emissions.

Risk Management

Basic Policy

n order to respond appropriately to risks that may damage the Group’s corporate value, the KOBELCO Group is working on risk management activities in reference to the international guidance issued by COSO. We have identified high-priority risks that are likely to have a significant impact on the entire Group, if risk materializes, and have defined them as Top Risks or Significant Risks. Risk management activities are promoted under the leadership of the Risk Owners (the Executive Officers in charge). The Board of Directors receives reports on action plans and the implementation status of activities including response to ESG risks associated with the environment, climate change, natural disasters, human rights, health and safety, and quality, etc. The status of these activities is monitored by senior management.

Management Structure

The President is the person ultimately responsible for the Group’s overall risk management, and the Director who oversees the Internal Control and Audit Department is the person responsible for overseeing risk management across the Group. Meanwhile, individual risks are managed by the Risk Owners as the persons responsible for Groupwide management activities of each risk, and the countermeasures to these risks are implemented by the heads of businesses and the Executive Officer responsible for the Head Office under a risk management system that encompasses the entire organization. The Risk Management Committee, which was newly established as an auxiliary body to the Executive Council, undertakes the tasks such as formulating basic policies concerning risk management in general and specific policies concerning important issues in risk management, and evaluating action plans for measures to reduce Top Risks and Significant Risks. The person responsible for overseeing risk management across the Group is appointed as the Committee Chair and all of the Risk Owners are appointed as the Committee Members. Activity results of the Risk Management Committee are periodically reported to the Executive Council and instructions are given to the Risk Owners based on the results of discussions at the Executive Council. The risk management system is operated independently from the Audit & Supervisory Committee.

To ensure the effectiveness of risk management activities, the Board of Directors manages and supervises these activities by receiving reports on action policies of overall risk management, action plans of reducing individual Top Risks and Significant Risks, and the implementation status, and links them to plans for the next fiscal year and beyond. Reports to the Board of Directors include results of discussion about risk management activities at the Executive Council and activity results of the Risk Management Committee.

With regard to climate-related risks, we identify and identify "Migration risks: Policy and legal regulations" and "Physical Risks — Natural Disaster Preparedness and Recovery" as risks that have a significant impact on our group and its stakeholders and that need to be addressed across the Group "Top Risk". Each risk owner is assigned to strengthen risk management.

Types and Definitions of Risk

リスクの分類と定義

Framework of Risk Management Activities across the Group

Framework of Risk Management Activities across the Group

Climate-Related Metrics and Targets

Metrics

The KOBELCO Group sets specific metrics for CO2 reduction activities, such as Reduction of CO2 Emissions in Production Processes (Metric A) and Contribution to Reduction of CO2 Emissions through Technologies, Products, and Services (Metric B), and sets and manages targets for each.

Kobe Steel positions these 2 metrics as non-financial KPIs of and manages them. non-financial KPIs including CO2 reduction are discussed at the Executive Council as important items in the budget once a year, and then discussed and approved by the Board of Directors.

Greenhouse gas Emissions (Scope 1, 2, 3)

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 2020, the KOBELCO Group's businesses generated 15.3 Mt of CO2 emissions from Energy Use in total.

KOBELCO Group worldwide CO2 emission data over the past three years

Category Unit FY 2018 FY 2019 FY 2020
CO2 emissions from Energy Use (Scope 1 + 2) Million t-CO2 17.4 16.5 15.3 ✔
CO2 emissions from Energy Use (Scope1) Million t-CO2 16.4 15.6 14.5 ✔
CO2 emissions from Energy Use (Scope2) Million t-CO2 1.0 0.9 0.8 ✔
Net sales Million yeb 1,971,869 1,869,835 1,705,566
CO2 emission intensity from Energy Use per Net sales t-CO2/Million yen 8.8 8.8 9.0
Compared to FY 2018 0% 2%
Products (crude steel, aluminum rolled products, copper rolled products) Million t 7.5 7.0 6.3
CO2 emission intensity from Energy Use per t-Product t-CO2/t-Product 2.3 2.3 2.4
  • *1 The data above covers 99% of the environmental impact of the KOBELCO Group. Emissions from offices are not included.

    *2 Emissions from the Iron & Steel Business include those from coke production.

    ✔: Items covered by third-party assurance. In order to ensure the accuracy and transparency of Energy Consumption and CO2 emissions data, Kobe Steel receives a third-party assurance.

Estimated GHG Emissions (Kobe Steel, Ltd.) (Scope1)

Item FY 2018 FY 2020 FY 2021
1. Energy-derived CO2 emissions*1 16,400,000 t-CO2 15,600,000 t-CO2 14,500,000 t-CO2
2. Non-energy derived CO2 emissions 565,000 t-CO2 574,000 t-CO2 498,000 t-CO2
3. Methane (CH4) 5,750 t-CO2 5,570 t-CO2 5,210 t-CO2
4. Nitrous oxide (N2O) 40,500 t-CO2 43,600 t-CO2 49,600 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) 15,600 t-CO2 16,900 t-CO2 18,000 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

Kobe Steel, Ltd. Scope 3 emissions over the past three years (unit: thousand t-CO2)

Category FY 2018 FY 2019 FY 2020 Calculation method
1. Purchased goods and services 5,353 5,214 4,766 ✔ Annual amount of iron ore, coking coal, aluminum and copper
multiplied by CO2 emissions unit values*1
2. Capital goods 273 263 262 ✔ Capital investment cost multiplied by CO2 emissions unit values*1
3. Fuel- and
energy-related activities
except scope 1 and 2
278 302 299 ✔ Annual consumption of electricity, steam and fuel etc.
multiplied by CO2 emissions unit values*1
4. Upstream transportation
and distribution
201 192 180 ✔ 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 34 39 30 ✔ The amount of industrial waste for each type multiplied by CO2
emissions unit values*1
6. Business travel 1 2 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 2,946 2,713 2,622 ✔ 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 36,985 ✔ 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 66 62 56 ✔ 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 9,157 33,494 45,208 ✔
  • *1 Green Value Chain Platform of Ministry of the Environment (Used Ver 2.6 for FY 2018, Ver 3.0 for FY 2019 and Ver 3.1 for FY 2020), 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 ensure the accuracy and transparency of Energy Consumption and CO2 emissions data, Kobe Steel receives a third-party assurance.

Energy Usage during Manufacturing Processes

In fiscal 2020, the KOBELCO Group worldwide used a total of 182 PJ of energy in all of its business divisions.

KOBELCO Group worldwide energy data over the past three years

Unit FY 2018 FY 2019 FY 2020
Energy usage PJ 206 196 182 ✔
Net sales Million yen 1,971,869 1,869,835 1,705,566
Energy intensity per Net sales GJ/ Million yen GJ 104 105 107
Compared to FY 2018 0% 2%
Products (crude steel, aluminum rolled products,
copper rolled products)
Million t 7.5 7.0 6.3
Energy intensity per t-product GJ/ t-Product 27.5 27.8 28.7
  • ✔: Items covered by third-party assurance. In order to ensure the accuracy and transparency of Energy Consumption and CO2 emissions data, Kobe Steel receives a third-party assurance.

Targets and Results on Risk and Opportunity

Metric A Reduction of CO2 Emissions in Production Processes

2050 Vision:
Take on the challenge of achieving carbon neutrality
Fiscal 2030 Target:
Reduce CO2 emissions in production processes 30% to 40% *1 *2reduction (compared with fiscal 2013)
Result:
Compared with fiscal 2013, we generated 21% less CO2 emissions in fiscal 2020, partly due to a decline in production volume in the first half of the year.
  • *1 Total of Scope 1 and Scope 2
  • *2 Covered range for reduction target: Business operations of Kobe Steel, Ltd., and Kobelco Construction Machinery Co., Ltd. (together representing around 94% of CO2 emissions of the entire Group)(Fiscal 2020 performance)
  • Fiscal 2013 emissions in covered range: 18.2 million tons
    Fiscal 2020 emissions in covered range: 14.4 million tons
Initiatives:
  • In the wake of the oil crisis, which spanned from the 1970s to the 1990s, Japan’s steel industry moved to utilize energy more effectively by installing waste heat recovery systems and conserving energy while switching to continuous process flows and streamlined processes. From the 1990s, the steel industry took steps to effectively use waste materials, focused on upgrading waste heat recovery systems and increasing the efficiency of equipment. In recent years, industry players have installed highly efficient gas turbine power plants. Kobe Steel has maintained a consistent approach in advancing various energy conservation and CO2 reduction measures through proactive capital investments. For example, the Company installed highly efficient gas turbine power generation facilities that use gas from blast furnaces at Kakogawa Works over the period from fiscal 2009−2014, resulting in a substantial reduction of CO2 emissions.
  • Compared with fiscal 2013, we generated 21% less CO2 emissions in fiscal 2020, partly due to a decline in production volume in the first half of the year.
  • In the ironmaking process, we successfully demonstrated a technology that can reduce CO2 emissions from the blast furnace by around 20%. This was made possible by charging a large amount of hot briquetted iron (HBI) produced by the MIDREX® Process, a direct reduced iron production method using natural gas, into a blast furnace. (See page 70 for details.)
  • We also developed an AI-based blast furnace heat prediction system, which has been in operation since August 2020 in the No. 2 blast furnace at Kakogawa Works. This enables automatic and highly accurate prediction of hot metal temperatures five hours in advance, thus preventing in-furnace temperature drops and other problems and leading to more stable operations. We will promote further development of this blast furnace operation technology utilizing AI to enable more advanced control of furnace conditions. The KOBELCO Group will continue striving to reduce CO2 emissions in order to achieve its fiscal 2030 targets and fiscal 2050 vision.

Metric B Contribution to Reduction of CO2 Emissions through Technologies, Products, and Services

Kobe Steel has a wide range of products and services that contribute to the reduction of CO2 emissions. We are also contributing to the reduction of CO2 emissions at the usage stage through expanding sales of these products and services.

FY2050 Vision:
CO2 emission reduction contribution: 100 million tons or more
FY2030 Target:
CO2 emission reduction contribution: 61 million tons or more
Result:
The CO2 Reduction Promotion Subcommittee estimates that the KOBELCO Group’s technologies, products, and services contributed to reduction of CO2 emissions totaling 40.9 million tons in fiscal 2020.

CO<sub>2</sub>排出削減貢献量

Initiatives:
The KOBELCO Group contributes to reduction of CO2 emissions in various areas of society through its distinctive technologies, products, and services. For these contributions, the Group has set the vision for fiscal 2050 and raised the targets for fiscal 2030 from the level announced in September 2020.
Regarding the contributions to reduction of CO2 emissions through technologies, products, and services, the Group has instituted an internal accreditation system. For the formulas used in accreditations, we receive advice from Kiyotaka Tahara, the Director of the Research Laboratory for IDEA at the Research Institute of Science for Safety and Sustainability, Department of Energy and Environment, AIST.

認定の流れ

Other major technologies, products, and services that contribute to CO2 emission reductions (The amount of contribution will be calculated in the future.)

Technologies, Products, and Services Concept behind Reduction
Automotive/transportation field Fuel-cell separator materials, aluminum shapes for rolling stock, titanium for aircraft components, crankshafts for ships, compressors for LNG carriers, microbinary generators for ships* Improvement of fuel economy by reducing weight of automobiles and transportation vehicles, effects of replacing gasoline-powered automobiles for next-generation vehicles, energy conservation by achieving higher efficiency and utilizing unused energy
Hydrogen utilization field High-purity Hydrogen Oxygen Generator (HHOG) Effects of reducing fossil resource consumption through hydrogen utilization
Power generation/storage field Conversion of sludge to fuel, utilization of sludge at coal-fired thermal power plants, compressed air energy storage system* Reducing fossil resource consumption through utilization of resources that contribute to carbon neutrality, utilization of excess electricity

* Products and services planned to be provided to customers in the future

Metric A and Metric B’s qualitative and quantitative targets (including 2030 targets) with progress

Initiatives for
Implementation
Long-Term Policies Medium-Term Targets Fiscal 2020 Results
Self-assessment
〇: Progressing as planned △: Some issues remaining ×: Plan not achieved
Measures against
global warming
Help prevent global warming by promoting energy conservation and CO2 reduction in all business activities
<Target for 2030>
Reduce CO2 emissions from production processes by 30-40% (compared with FY2013).
<Vision for 2050>
Take on the challenge of achieving carbon neutrality
Promote medium- to long-term technological development based on the roadmap and continue working on energy conservation initiatives, in order to achieve the targets for 2030 and vision for 2050

CO2 Reduction Promotion Subcommittee and CO2 Reduction Technology Study Working Group further studied various issues, reviewed targets for 2030, and formulated the vision for 2050

  • 2050 Vision: Take on the challenge of achieving carbon neutrality
    Fiscal 2030 Target: 30% to 40% reduction (compared with fiscal 2013)
    Fiscal 2020 Result: 21% reduction (compared with fiscal 2013)

Demonstrated a technology that reduces CO2 emissions by around 20% by charging into the blast furnace a large amount of hot briquetted iron (HBI) produced with the MIDREX® Process (developed by U.S.-based Midrex Technologies, Inc., a wholly owned subsidiary of Kobe Steel)

Contributing to the
environment through technologies,
products,
and services
Create environmentally sustainable products and new businesses with due consideration to the environment in all technological and product development
<Target for 2030>
Contribution to CO2 emission reduction: 61 million tons (including at least 45 million tons of MIDREX®)
<Vision for 2050>
Contribution to CO2 emission reduction: 100 million tons or more
Contribute to the creation of a low-carbon society through the efforts of the entire KOBELCO Group by working on issues related to the environment and energy fields, such as weight reduction of transportation vehicles, the creation of a hydrogen-based society, and the diversification of power sources

CO2 Reduction Promotion Subcommittee and CO2 Reduction Technology Study Working Group further studied various issues, reviewed targets for 2030, and formulated the vision for 2050

  • 削減貢献目標:
    Vision for 2050: Contribution to CO2 emission reduction: 100 million tons or more
    Target for 2030: Contribution to CO2 emission reduction: 61 million tons
    Fiscal 2020 Result: CO2 emission reduction: 40.9 million tons

Demonstrated technology that reduces CO2 emissions by around 20% by charging into a blast furnace a large amount of hot briquetted iron (HBI) produced with the MIDREX® Process (developed by U.S.-based Midrex Technologies, Inc., a wholly owned subsidiary of Kobe Steel) Established and participated in the Japan Hydrogen Association with eight other private companies to promote global collaboration and formation of supply chains in the hydrogen field

Climate-related Organizations to Which We Belong

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.

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 FY 2030 Industry targets for reducing CO2 emissions
from production processes in the Commitment to a Low Carbon Society
The Japan Iron and Steel Federation Eco Process: Reduction of 9 million tons versus BAU
Japan Aluminium Association 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 6% energy intensity versus BAU with production activity volume of 380,000 tons
The Japan Society of Industrial Machinery Manufacturers Reduction of 10% in CO2 emissions versus FY 2013
Japan Construction Equipment Manufacturers Association Reduce the manufacturing energy consumption rate by 17% from the actual achievement of 2013.

*1 BAU (Business As Usual): emissions of greenhouse gases, or emissions per unit, assuming no additional measures are taken

Relationship with Industry Associations

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.

Initiatives to Save Energy and Reduce CO2 Emissions

Examples of Energy-saving and CO2 Emission Reduction Initiatives in the KOBELCO Group (FY 2020)

Production facility / company name Location Examples of initiatives
Kakogawa Works, Kobe Steel, Ltd. Kakogawa, Hyogo Prefecture Switched to inverter-controlled dust collector
Fujisawa Plant, Kobe Steel, Ltd. Fujisawa, Kanagawa Prefecture Switched to inverter-controlled chiller pump Abbreviation of blower with annealing carrier
Ibaraki Plant, Kobe Steel, Ltd. Ibaraki, Osaka Prefecture Upgraded to inverter-controlled motor
Switched a portion of plant lighting to LED lighting
Saijo Plant, Kobe Steel, Ltd. Higashihiroshima, Hiroshima Prefecture Upgraded drying oven control system
Upgraded compressor
Upgraded high‐voltage phase‐advancing capacitor
Reduced kerosene consumption for steam boiler
Fukuchiyama Plant, Kobe Steel, Ltd. Fukuchiyama, Kyoto Prefecture Switched a portion of plant lighting to LED lighting
Repaired air leakage
Moka Works Kobe Steel, Ltd. Moka, Tochigi Prefecture Upgraded transformer
Upgraded duplicated floor of furnace
Switched a portion of plant lighting to LED lighting
Chofu Works, Kobe Steel, Ltd. Shimonoseki, Yamaguchi Prefecture Upgraded transformer
Upgraded boiler
Daian Works, Kobe Steel, Ltd. Inabe, Mie Prefecture Switched a portion of plant lighting to LED lighting
Repaired air and steam leakage
Harima Plant, Kobe Steel, Ltd. Kakogun, Hyogo Prefecture Switched a portion of plant lighting to LED lighting
Research & Development Laboratory, Kobe Steel, Ltd. Kobe, Hyogo Prefecture Accumulated and upgraded transformer
Switched a portion of plant lighting to LED lighting
Takasago Works, Kobe Steel, Ltd. Takasago, Hyogo Prefecture Switched a portion of plant lighting to LED lighting
Upgraded transformer
Upgraded absorption type hot and chilled water generator
Kobelco Engineered Construction Materials Co., Ltd. Amagasaki, Hyogo Prefecture Optimized operation of power receiving/ transformer units
Optimized operation of air supply fan for painting
Amagasaki Works, Shinko Wire Company, Ltd. Amagasaki, Hyogo Prefecture Switched a portion of plant lighting to LED lighting
Highly optimized transformer
Onoe Works, Shinko Wire Company, Ltd. Kakogawa, Hyogo Prefecture Switched a portion of plant lighting to LED lighting
Switched to inverter-controlled motor
Repaired air and steam leakage
Nishikinohama Works, Shinko Wire Company, Ltd. Kaizuka, Osaka Prefecture Reduced energy consumption of boiler and drying oven
Shinko Bolt, Ltd. Ichikawa, Chiba Prefecture Switched a portion of office lighting to LED lighting
Koshuha-Foundry Co., Ltd. Hachinohe, Aomori Prefecture Switched a portion of plant lighting to LED lighting
Upgraded high voltage transformer to high efficiency product
Shinko Aluminum Wire Co., Ltd. Sakai, Osaka Prefecture Upgraded oven burner
Shinko Metal Products Co., Ltd. Kitakyushu, Fukuoka Prefecture Repaired air and steamleakage
Shinko Leadmikk Co., Ltd. Kitakyushu, Fukuoka Prefecture Optimized production by process management
Kobelco & Materials Copper Tube, Ltd. Hadano, Kanagawa Prefecture Upgraded transformer
Switched a portion of plant lighting to LED lighting
Hanshin Yosetsu Kizai Co., Ltd. Hanshin Yosetsu Kizai Co., Ltd. Highly optimized pumps and motors
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 Reduced compressed air consumption
Okubo factory, Kobelco Construction Machinery Co., Ltd. Akashi, Hyogo Prefecture Reduced gas consumption for welding
Harima Plant, Kobelco Eco-Solutions Co., Ltd. Harimacho, Hyogo Prefecture Switched a portion of office lighting to LED lighting
Shinko Industrial Co., Ltd. Kurayoshi, Tottori Prefecture Switched a portion of plant lighting to LED lighting
Kobelco Power Kobe Inc. Kobe, Hyogo Prefecture Improved turbine efficiency
Reduced driving steam
Kobelco Spring Wire (Foshan) Co., Ltd. China Reused lubricant and heat insulation sand
Reduced power consumption by switching motor for turbulation of water treatment chemicals
Hangzhou Kobelco Construction Machinery Co., Ltd. China Switched a portion of plant lighting to LED lighting
Kobe Precision Technology Sdn Bhd Malaysia Switched a portion of plant lighting to LED lighting
Kobe Aluminum Automotive Products (KAAP) The United States Switched a portion of plant lighting to LED lighting
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 pumps and motors
Switched a portion of plant lighting to LED lighting
Kobelco Construction Machinery (China) Co., Ltd. China Switched to high-efficiency motors
Kobelco Construction Machinery Southeast Asia Co,.Ltd. Thailand Reduced compressed air consumption

Response to the CDP Climate Change Questionnaire

Kobe Steel, Ltd. has been responding to questionnaires from CDP*1, an international NGO, since fiscal 2009. Please refer to the following for our response to the 2021 Climate Change Questionnaire.

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