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Greenhouse Gas Emission Reduction

MGC considers risks associated with climate change to be an important business issue. It is moving forward with efforts to reduce emissions of greenhouse gas (GHG) and to reduce the negative impact of climate change on its business.
At the same time, new needs in society associated with climate change also represent a business opportunity. MGC recognizes that contributing to the achievement of a sustainable society through its products and technologies is an important issue.

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. *1 Scope 1 emissions are GHG emissions directly generated by MGC. Scope 2 emissions are indirect GHG emissions associated with use of energy (mainly electric power) purchased from external suppliers.
  2. *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. *3 MGC proactively participates in various collaborative activities to mitigate climate change (climate change initiatives).

Greenhouse Gas Reduction Targets (non-consolidated)

MGC considers the solving energy and climate change problems as one of the priority issues (materiality), and is setting KPIs and working toward achieving the goals.

  • GHG emissions compared to fiscal 2013: 28% reduction in 2023, 36% reduction in 2030
  • GHG emissions intensity* compared to fiscal 2013: 19.9% reduction in 2023, 28.0% reduction in 2030
  • Renewable energy as a percentage of electric power purchased: 10% in 2023, 50% in 2030
  • *GHG emissions intensity: volume of greenhouse gas emissions per production volume

GHG Emissions

Results of energy consumption/GHG emissions in fiscal 2020

  Energy consumption GHG emissions
(ML crude oil equivalent) (1,000 tons CO2 equivalent)
MGC (non-consolidated) 359 780
Consolidated subsidiaries 216 583
MGC Group 576 1,363

Scope 1 + 2 Emissions (MGC Group)

Scope 1 + 2 Emissions Volume (MGC Group)
  • Note: Domestic MGC Group GHG emissions noted only for fiscal 2015 and later.
  • Note: Overseas MGC Group GHG emissions noted only for 2017 and later.
  • Note: In fiscal 2020, we reviewed the organizational scope of Scope 1/2/3, and revised the emissions retroactively till fiscal 2013.

Scope 3 Emissions (MGC Group)

Category Scope 3 Emissions
(1,000 tons CO2 equivalent)
MGC (non-consolidated) MGC Group
Cat.1 Purchased goods and services 4,700 6,100
Cat.2 Capital goods - 110
Cat.3 Fuel- and energy-related activities not included in Scope 1 or Scope 2 110 240
Cat.4 Upstream transportation and distribution 560 640
Cat.5 Waste generated in operations 5.9 5.9
Cat.6 Business travel <1 1.2
Cat.7 Employee commuting 1 1
Cat.8 Upstream leased assets 7 7
Cat.9 Downstream transportation and distribution 210 210
Cat.10 Processing of sold products
Cat.11 Use of sold products
Cat.12 End-of-life treatment of sold products 1,500 1,800
Cat.13 Downstream leased assets 26 26
Cat.14 Franchises 0 0
Cat.15 Investments 690 360
Total 7,900 9,500

Emission Reduction Initiatives (non-consolidated)

MGC is committed to energy conservation and reduction of GHG emissions. In fiscal 2020, we reduced energy consumption and GHG emissions by reviewing raw material procurement, strengthening heat retention, and changing operation control methods. The effect of these initiatives is 4500 kL crude oil equivalent, and effect of reduction of GHG emissions is 11,000 tons CO2 equivalent.   In the future, we are planning to implement initiatives such as reviewing operation methods, strengthening heat recovery, and enhancing operation control methods.

Energy consumption and energy intensity index of MGC (non-consolidated)

MGC production division energy consumption and energy intensity index

MGC Production Division GHG emissions and GHG emissions intensity index

MGC Production Division GHG emissions and GHG emissions intensity index

Third-Party Verification of Greenhouse Gas Emissions (non-consolidated)

Beginning with the fiscal 2016 report, a third-party organization has verified the GHG emission data reports disclosed by MGC to enhance reliability and transparency.

MGC GHG emissions (Scope1,2,3) have undergone third-party verification and have obtained a verification statement in fiscal 2021.

[Scope of Accounting and Verification]

Mitsubishi Gas Chemical Company, Inc., CO2 emissions, Scope1,2,3(Category2,3,5,6)

[Targeted Period]

April 1, 2020 - March 31, 2021

[Accounting and Verification Standards]

ISO14064-1:2018
ISO14064-3:2019

[Verification Statement]

Initiatives in the Transportation Sector (non-consolidated)

In the Transportation Sector, MGC is implementing measures with a focus on modal shifts to more environmentally-friendly transportation methods to reduce energy consumption and GHG emissions.
Energy consumption in fiscal 2020 declined by 4% year-on-year.

MGC transportation sector CO2 emissions

MGC transportation sector CO<sub>2</sub> emissions

Wasabizawa Geothermal Power Plant Commences Operations

The Wasabizawa Geothermal Power Plant (Yuzawa City, Akita Prefecture), a joint venture of Electric Power Development Co., Ltd., Mitsubishi Materials Corporation, and MGC, began commercial operations in May 2019. It is the first large-scale geothermal power plant constructed in Japan in 23 years. Geothermal power plants generate electricity using subterranean steam, making geothermal power a renewable form of energy that produces virtually no CO2 during generation.
In September 2019, construction started on the Appi Geothermal Power Plant (Hachimantai City, Iwate Prefecture), also a joint venture with Electric Power Development and Mitsubishi Materials.
Through these geothermal power projects, MCG is contributing to the increased use of renewable energy.

Use of Solar Power Generation Facility

MGC Group products that contribute to reducing GHG emissions and that help lessen society's impact on the environment are featured on the Spotlight on Eco-Friendly Products page.