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

MGC has quantitative set targets for reducing GHG emissions (Scope 1 & 2) and is taking action to achieve those targets.

  2023 2030 2050
MGC Group - Reduce by 36% compared to 2013 Achieve carbon neutrality
MGC non-consolidated Reduce by 28% compared to 2013 Reduce by 36% compared to 2013 Achieve carbon neutrality

GHG Emissions

Results of energy consumption/GHG emissions in fiscal 2022

  Energy consumption GHG emissions GHG emissions
(ML crude oil equivalent) (1,000 tons CO2 equivalent) (1,000 tons CO2 equivalent)
MGC Group 633 744 584
MGC (non-consolidated) 348 564 163
Consolidated subsidiaries 285 180 421

Scope 1 + 2 Emissions

graph: Scope 1 + 2 Emissions of GHG. It indicates annual GHG emissions MGC and consolidated subsidiaries.
  • 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 4,200 6,100
Cat.2 Capital goods 180 180
Cat.3 Fuel- and energy-related activities not included in Scope 1 or Scope 2 130 280
Cat.4 Upstream transportation and distribution 220 310
Cat.5 Waste generated in operations 8 8
Cat.6 Business travel <1 1
Cat.7 Employee commuting 1 1
Cat.8 Upstream leased assets 6 6
Cat.9 Downstream transportation and distribution 46 53
Cat.10 Processing of sold products
Cat.11 Use of sold products 360 420
Cat.12 End-of-life treatment of sold products 3,000 3,000
Cat.13 Downstream leased assets 7 1
Cat.14 Franchises 0 0
Cat.15 Investments
Total 8,100 10,400

Energy-Saving and GHG Emission Reduction Initiatives (non-consolidated)

MGC is committed to energy conservation and reduction of GHG emissions. We will curtail the use of fossil fuels to contribute to reducing environment impact in terms of both reduced resource use and reduced GHG emissions from the use of energy. In fiscal 2022, we reviewed waste liquid detoxification treatment methods  and implemented measures to improve thermal recycling. The GHG reduction effects from these measures are equivalent to 4,300 tons of CO2. In addition, we introduced renewable energy as the source of energy used in production on a large scale. The GHG reduction effects from the introduction of renewable energy are equivalent to 22,000 tons of CO2. In the future, we plan to review co-generation systems, update large-scale facilities, and take of the measures.

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

graph: It indicates annual energy consumption and energy intensity index of MGC (non-consolidated)

MGC non-consolidated GHG emissions and GHG intensity index

graph: It indicates MGC non-consolidated GHG emissions and GHG intensity index

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

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) in fiscal 2022 have undergone third-party verification and have obtained a verification statement.

[Scope of Accounting and Verification]

Mitsubishi Gas Chemical Company, Inc., CO2 emissions, Scope1,2,3

[Targeted Period]

April 1, 2022 - March 31, 2023

[Accounting and Verification Standards]

GHG Protocol Corporate Accounting and Reporting Standard (reviced edition)

[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. GHG intensity improved by 1.5% in fiscal 2021.

MGC transportation sector CO2 emissions

Graph: CO2 emissions from MGC transportation sector. It indicates CO2 emissions and CO2 according to transportations and CO2 intensity.

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.

Initiatives for Circular Carbon Methanol Concept “CarbopathTM

CarbopathTM represents the Circular Carbon Methanol Concept promoted by MGC. The CarbopathTM initiatives fully leverage the technologies, supplies chains, and resources that the company has developed over many years to manufacture methanol from resources that previously were not used, such as CO2, biomass, and waste materials. This is an initiative that contributes to the creation of new value and the realization of a circular and sustainable society.

We already manufacture methanol from CO2 at the Niigata Plant, and in 2024 we will start manufacturing and supplying bio-methanol from unused biogas generated at a nearby sewage treatment plant. We are promoting implementation of the Circular Carbon Methanol Concept with various companies in Japan, and in Australia, we are also looking into commercialization of large-scale methanol manufacture and sale utilizing CO2 emitted during the cement manufacturing process.

Carbopath™ can achieve a transition away from fossil fuels and will not only reduce GHG emissions, but will also contribute to achieving carbon neutrality through carbon recycling. The manufactured methanol will be used as the main raw material for a variety of materials such as plastics and can also be used in various forms of carbon neutral fuels, achieving a truly circular economy.

Figure: Initiatives for Circular Carbon Methanol Concept “Carbopath™”
The Carbopath™ name is derived from “carbon” and “pathfinder.”

MGC Starts production of ISCC PLUS-Certified MX-Nylon

MX-Nylon, which is manufactured at the MGC Niigata Plant, received ISCC PLUS certification.

ISCC PLUS certification is an international certification that guarantees that a product is manufactured using sustainable raw materials, such as biomass and recycled materials. With this certification, MGC started manufacturing and marketing using sustainable raw materials allocated by the mass balance approach.

With its excellent gas barrier properties and high rigidity, MX-Nylon contributes to waste reduction by extending the shelf life of food products and weight reduction  of automotive parts. MGC is currently working to achieve our goal of net-zero CO2 emissions in manufacturing by improving energy efficiency in manufacturing process and actively using raw materials derived from plants.

Various environmental data including GHG data is reported in the Sustainability Data Book.
In addition to this page, refer to the Sustainability Data Book.