Mitsubishi Gas Chemical : Sustainability Data Book 2021(Environment)

Mitsubishi Gas Chemical Sustainability Data Book 2021

Published on January 15, 2022 Mitsubishi Gas Chemical Company, Inc.

Environment

Production-related Inputs and Outputs | Raw Materials / Production Volume | Basic Approach to Climate Change Mitigation | Greenhouse Gas (GHG) Emissions | Basic Approach to Resource Use |

Energy Management | Water Resources | Resource Recycling | PRTR Substances | Pollution Prevention | Environmental Accounting | Biodiversity Conservation Project Expenditures | Environment-related Accidents / Violations of Environmental Laws and Regulations | Status of External Certification

Production-related Inputs and Outputs (Non-consolidated)

Input

Raw materials,
Container/packaging materials	0.71Mt
Energy (as crude oil equivalent)	359ML
Water withdrawal	31Mm3

Output

Production volume	1.14Mt
GHG emissions	0.78 Mt-CO2-e
Water discharge	29Mm3
External waste discharge	14kt
Recycling	25kt

Raw Materials / Production Volume (Non-consolidated)

	Indicator			Unit			FY2017			FY2018			FY2019			FY2020
Raw material input		kt	743	798	764	704
Production volume		kt	1,469	1,416	1,373	1,144

Basic Approach to Climate Change Mitigation

1. Formulate targets for reducing Scope 1 and 2*1 GHG emissions and steadily reduce them through planning, execution, monitoring and reassessment.
2. Assess, manage, monitor and proactively disclose Scope 3*2 GHG emissions and take action to reduce them in collaboration with suppliers.
3. Improve energy efficiency and raw materials' carbon cycle and promote energy transition toward realization of a zero-carbon society by 2050.
4. Contribute to solving energy and climate change challenges through business operations by deploying innovative process technologies and factoring whole-lifecycle GHG emissions into design and development processes.
5. Disclose information through climate change initiatives*3.

*1 Scope 1 emissions are GHG emissions directly generated by MGC. Scope 2 emissions are indirect GHG emissions associated with the use of energy (mainly electric power) purchased from external suppliers.

*2 Scope 3 emissions are indirect GHG emissions generated in supply chains through organizational activities such as raw material sourcing, manufacturing, distribution, sales and waste disposal.

*3 MGC proactively participates in various collaborative activities to mitigate climate change (climate change initiatives)

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Mitsubishi Gas Chemical Sustainability Data Book 2021

Published on January 15, 2022 Mitsubishi Gas Chemical Company, Inc.

Greenhouse Gas (GHG) Emissions

Scope1+2

					FY2017		FY2018		FY2019		FY2020
	Indicator		Unit
			Non-		Non-		Non-		Consolidated
					consolidated		consolidated		consolidated
CO2 emissions from non-energy use		t-CO2-e	788,451	805,250	768,469	1,282,951
CO2 emissions from non-energy use		t-CO2-e	81,146	78,097	78,246	74,596
N2O		t-CO2-e	796	753	841	3,688
CH4		t-CO2-e	524	513	562	685
HFCs		t-CO2-e	1,325	4,257	1,212	875
PFCs		t-CO2-e	0	0	0	0
SF6		t-CO2-e	0	0	0	23
NF3		t-CO2-e	0	0	0	0
Total*1		t-CO2-e	872,242	888,869	849,331	1,362,817
Scope1		t-CO2-e	632,134	599,243	602,661	653,428
Scope2 (market based)		t-CO2-e	240,108	289,626	246,670	709,389
GHG emissions intensity ratio per		t-CO2-e /	2.4	2.4	2.4	2.3
unit to sales		million yen

*1 Due to rounding off figures, there are places where the sums for each item do not match the total.

*Data for prior fiscal years were revised to reflect changes in the Group's composition and revision of calculation standards. *For the above table's reporting boundaries, see MGC Group's Consolidated Subsidiaries on page 32.

Scope３

					FY2017		FY2018		FY2019		FY2020
	Category		Unit		Non-		Non-		Non-		Consolidated
					consolidated		consolidated		consolidated
Purchased goods and services		kt CO2-e	5,329	5,129	5,010	6,110
Capital goods		kt CO2-e	39	53	45	109
Activities related to fuels and
energy not includable in Scopes 1		kt CO2-e	90	84	101	235
and 2
Transportation and distribution		kt CO2-e	723	715	626	642
(upstream)
Waste generated in operations		kt CO2-e	<4	<4	<4	6
Business travel		kt CO2-e	<4	<4	<4	1
Employee commuting		kt CO2-e	<1	<1	<1	1
Leased assets (upstream)		kt CO2-e	<8	<8	<8	7
Transportation and distribution		kt CO2-e	177	109	158	212
(downstream)
Processing of sold products		kt CO2-e		―		―		─		─
Use of sold products		kt CO2-e		―		―		─		─
End-of-life treatment of sold		kt CO2-e	1,760	1,312	2,026	1,824
products
Leased assets (downstream)		kt CO2-e	13	14	34	26
Franchises		kt CO2-e	0	0	0	0
Investments		kt CO2-e	589	513	586	361
Total		kt CO2-e	8,737	7,947	8,604	9,533

*Due to rounding off figures, there are places where the sums for each item do not match the total.

*Data for prior fiscal years were revised to reflect changes in the Group's composition and revision of calculation standards. *For the above table's reporting boundaries, see MGC Group's Consolidated Subsidiaries on page 32.

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Mitsubishi Gas Chemical

Sustainability Data Book 2021

GHG Emissions/Calculated Value-added GHG Emissions Intensity

Published on January 15, 2022 Mitsubishi Gas Chemical Company, Inc.

	Indicator			Unit			FY2017			FY2018			FY2019			FY2020
GHG emissions		kt CO2-e	872		889	849		780
Calculated value added of GHG		100 million yen/	1.12		1.09	1.09		1.16
emissions intensity		kt CO2-e

*Calculated value added: The estimated amount of added value calculated based on MGC Alone net sales of MGC multiplied by the value added rate for the chemical industry published by the Ministry of Economy, Trade and Industry.

*Data for prior fiscal years were revised to reflect changes in the Group's composition.

GHG Emissions in Transportation Sector

	Indicator			Unit			FY2017			FY2018				FY2019			FY2020
By rail		kt CO2-e	0.54		0.59		0.58	0.57
By ship		kt CO2-e	11.5		11.3		10.8	9.9
By truck		kt CO2-e	17.5		17.0		16.2	16.2

Basic Approach to Resource Use

The MGC Group promotes efficient utilization of fuel and other resources (including product raw materials) and development of innovative process technologies at its domestic and overseas production sites and contributes to reduction in GHG emissions.

Energy Management (Non-consolidated)

Energy Use (Ratio of grid power, renewable energy and self-generated energy)

	Indicator			Unit			FY2017			FY2018			FY2019			FY2020
Total energy use*		MWH	3,531,261	3,424,987		3,482,864	3,200,855
Ratio of grid power		─	9.0%	11.3%		9.8%	9.7%
Ratio of renewable energy		─	0.0%	0.0%		0.0%	0.0%
Total self-generated energy		MWH	296,313	205,432		272,094	243,556

*Calculated based on SASB standards

*Data for prior fiscal years were revised to reflect changes in the Group's composition.

Energy Use (Ratio of renewable/non-renewable energy)

	Indicator			Unit			FY2017			FY2018			FY2019			FY2020
Nonrenewable fuels purchased and
consumed (A)		MWH	2,853,996	2,675,134	2,831,478	2,608,631
(nuclear power, coal, oil, natural gas, etc.)
				MWH-
Nonrenewable Electricity purchased (B)		purchased	316,996	388,671	340,631	309,240
				electricity
Steam, heat, cooling and other		MWH	419,329	418,329	377,594	345,762
nonrenewable energy purchased (C)
Renewable energy purchased or
generated. (D)		MWH	0		0		0		10
(wind, energy solar, biomass, hydroelectric,
geothermal etc.)
Non-renewable energy sold (E)		MWH	59,060	57,146	66,839	62,778
(electricity, heating, cooling)
Total non-renewable energy consumed		MWH	3,531,261	3,424,987	3,482,864	3,200,855
(A+B+C-E)

*Data for prior fiscal years were revised to reflect changes in the Group's composition.

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Mitsubishi Gas Chemical Sustainability Data Book 2021

Energy Use (crude oil equivalent)

Published on January 15, 2022 Mitsubishi Gas Chemical Company, Inc.

Indicator		Unit	FY2017		FY2018		FY2019	FY2020
Production and research divisions,		ML-crude oil	394	396	393	359
Corporate Sector		equivalent
Logistics division		ML-crude oil	11		11		10	10
	equivalent
Energy intensity		KL/million ton	20	19	19	20
	kilo

*Data for prior fiscal years were revised to reflect changes in the Group's composition.

Energy Use/Calculated Value-added Energy Intensity

Indicator

Unit

FY2017

FY2018

FY2019

FY2020

Energy use

ML-crude oil

394

396

393

359

equivalent

Energy intensity of calculated

100 million yen

/ML-crude oil

2.49

2.45

2.35

2.52

added value

equivalent

*Calculated value added: The estimated amount of added value calculated based on MGC Alone net sales of MGC multiplied by the value added rate for the chemical industry published by the Ministry of Economy, Trade and Industry.

*Data for prior fiscal years were revised to reflect changes in the Group's composition.

Water Resources (Non-consolidated)

Water Resource Risk Management

MGC uses large quantities of water, both as a raw material of chemical products and for various other purposes, including steam-heating and cooling in chemical manufacturing processes, product refining and cleaning containers. To sustainably use water resources essential to manufacturing chemicals, MGC manages a variety of risks. Specifically, MGC monitors its actual water consumption and uses water efficiently by measuring water withdrawal, water discharge, water usage and water recycling. In drawing from water sources, MGC restricts its intake to permitted quantities in accord with applicable laws or agreements with municipalities. Additionally, MGC discharges wastewater into rivers, the sea or other public water bodies in compliance with effluent standards after treating it to filter out identified pollutants. Data on these water-related environmental impacts are presented in detail below.

Additionally, MGC maintains a sanitary water-use environment at all its sites to provide its workforce with access to properly functioning, safely managed sanitary facilities (wash service).

From a business continuity standpoint, MGC has identified production downtime due to drought or flooding of production facilities as a water-related risk, formulated a business continuity plan (BCPs) that addresses this risk and implemented measures to mitigate it. None of the areas in which MGC's plants are located has experienced either adverse impacts on production activities due to water stress or conflicts with stakeholders regarding use of water resources.

Meanwhile, MGC sees opportunities in businesses that provide solutions for issues surrounding the coolant water of air conditioning equipment and cooling systems. Such solutions include water treatment agents that maintain healthy coolant water quality by killing disease-causing legionella bacteria and a comprehensive water treatment system service offered through affiliate Dia Aqua Solutions Co., Inc.

Going forward, MGC will set qualitative and quantitative targets for efficient water usage to more effectively preserve water resources.

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Mitsubishi Gas Chemical Sustainability Data Book 2021

Use of Water Resources

Published on January 15, 2022 Mitsubishi Gas Chemical Company, Inc.

	Indicator			Unit			FY2017			FY2018			FY2019			FY2020
	Municipal water supplies		Mｍ3	440	420	407	497
	(tap water)
Water	Fresh surface water		Mｍ3	10,415	9,892	9,601	10,084
(lakes, rivers, etc.)
withdrawal
Ground water		Mｍ3	406	391	368	392
	Total		Mｍ3	30,919	29,370	31,089	30,838
	River/lake/reservoir		Mｍ3	18,532	17,182	17,819	18,265
	Sewage system		Mｍ3	2,121	2,104	1,959	1,935
Water
Ocean/sea		Mｍ3	8,393	7,962	9,050	8,540
discharge
	Other		Mｍ3	0		0		0		0
	Total		Mｍ3	29,046	27,248	28,827	28,740
Net fresh water consumption*1		Mｍ3	1,873	2,122	2,262	2,098
Percentage of water recycled for use*2		Mｍ3		―	23,585	460,079	421,920
Ratio of water recycled for use		％		―	45	94	93
*1 Water withdrawal ― Water discharge

*2 Value for FY2018 is small due to a narrow survey scope

Water Withdrawal/Calculated Value-added Water Withdrawal Intensity

	Indicator			Unit			FY2017			FY2018				FY2019			FY2020
Water withdrawal		Mｍ3	30.9	29.4		31.1	30.8
Calculated added value of water		100 million	31.7	33.1		29.7	29.4
withdrawal intensity		yen/Mm3

*Calculated value added: The estimated amount of added value calculated based on MGC Alone net sales of MGC multiplied by the value added rate for the chemical industry published by the Ministry of Economy, Trade and Industry.

Water Consumption/Calculated Value-added Water Consumption Intensity

	Indicator			Unit			FY2017			FY2018				FY2019			FY2020
Water consumption		Mｍ3	1.9	2.1		2.3	2.1
Calculated added value of water		100 million	523	458		409	432
consumption intensity		yen/Mm3

*Calculated value added: The estimated amount of added value calculated based on MGC Alone net sales of MGC multiplied by the value added rate for the chemical industry published by the Ministry of Economy, Trade and Industry.

Water recycling achievement status

Indicator	Unit	FY2017	FY2018	FY2019	FY2020
Water recycling rate	％	-	45	94	93
Target: at least 95%	-	-	×	×	×

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