Contributing to Environmental Protection : Review of Activities during FY2021

The Group Receives“1.5℃-Aligned” Approval from Science Based Targets Initiative (SBTi) for Revised 2030 Environmental Targets

CO₂ Emissions from Operations (Scope 1 & 2)

In fiscal 2021, total CO₂ emissions from the Group’s sites increased by 3.8% from the previous fiscal year to 1,334 thousand tons CO₂.

Despite higher production, the emissions from domestic facilities only showed a 34 thousand tons CO₂ increase compared to the previous fiscal year as a result of energy saving activities, such as the replacement of air compressors and periodic repairs to melting furnaces. Meanwhile, the emissions from overseas facilities increased by 15 thousand tons CO₂ compared to the previous fiscal year due to their expanded production.

We will continue to engage in reducing carbon footprint in fiscal 2022 through energy saving efforts, such as replacing equipment, streamlining production lines and improving production efficiencies.

Changes in CO₂ Emissions from Operations^(1)(2)(3)

• Notes:　
• 1.In November 2021, we raised the emissions reduction target from 35% less to 50% less, compared to fiscal 2019.
• 2.We have changed the scope of data collection to solely include Toyo Seikan Group Holdings and its consolidated subsidiaries from the data disclosed in July 2022, excluding affiliates accounted for using equity method that were previously included, and therefore the figures published here are not comparable to those published previously.
• 3.We have corrected the double-counting of emissions we found for some overseas subsidiaries and accordingly revised the sums of emissions from domestic and overseas operations for previous fiscal years.

Greenhouse Gas Emissions from Supply Chain (Scope 3)

The Toyo Seikan Group calculates the amount of greenhouse gas emissions from the upstream and downstream of the supply chain (scope 3), in addition to the emissions from its own operations, which consist of direct emissions from fuel combustion (scope 1) and indirect emissions related to electricity consumption (scope 2). Under our environmental vision Eco Action Plan 2030, we aim to reduce the scope 3 emissions 30% by fiscal 2030 compared to fiscal 2019.

In fiscal 2021, the scope 3 emissions associated with our domestic and overseas operations accounted for approximately 84% of the total emissions from the Group’s domestic and overseas operations and supply chain. Of the total scope 3, the emissions from purchased products (category 1) accounted for approximately 69%, followed by use of sold products (category 11) and disposal of sold products (category 12). This indicates that reducing emissions related to purchased products, or material procurement, is becoming more important. We will continue to work on reducing product weights and using recycled and plant-based materials in cooperation with material suppliers.

GHG Emissions from Supply Chain (FY2021)^*

• *We have changed the scope of data collection to include Toyo Seikan Group Holdings and its consolidated subsidiaries from the data for fiscal 2019, including all overseas consolidated subsidiaries, which were previously excluded from the scope, and therefore the figures calculated with the new scope are not comparable to those calculated with the conventional scope.

Please refer to the Environmental Performance Data for details regarding the Scope 1, 2 and 3 emissions.

More Use of Renewable Energy

As part of our efforts to reduce greenhouse gas emissions from operations, we have been introducing solar power systems to our facilities. Two domestic facilities, Tokan Kogyo's Komaki Plant and Toyo Kohan's Kudamatsu Plant, began to operate the system in December 2020 and in February 2021, respectively. Outside Japan, Toyo Filling International in Thailand launched the system in August 2020. We will step up the introduction of renewable energy as a key measure to address global warming going forward.

Promoting Modal Shift - Recognized as Eco Ship Mark Certified Business

We as a whole group will continue to advance our commitment to reducing environmental impact for the creation of a sustainable world.

Eco-Friendly Products

Launching Re-CUP WASHER

In January 2022, Tokan Kogyo launched Re-CUP WASHER, a cup washer the company developed for food and beverage cups after use.

Re-CUP WASHER is a self-service washing machine for used paper cups at cafes and other venues, creating opportunities for consumers to join environmental activities that lead to engagement in SDGs and promoting recycling. This is aimed at realizing a closed loop of material recycling in which recycled paper made from washed used paper cups is used to produce new paper cups.

The Toyo Seikan Group has been implementing the OPEN UP! PROJECT, in which it tackles a variety of issues through innovation to allow for a more affluent society. The Re-CUP WASHER is one of the accomplishments of the project, focusing on social issues related to paper and plastic cups we supply.

Club Partner Agreement with Kashima Antlers

The Toyo Seikan Group signed a club partner agreement with Kashima Antlers F.C. Co., Ltd. Together with the J-League soccer team, their supporters, local communities, and other partner companies, we will work on various initiatives and experiments to realize a society with a closed loop of packaging-to-packaging recycling.

In April 2022, we set up E-DOME, a new type eco-friendly station that uses our DAN DAN DOME ⁽¹⁾, at the club’s Tsukuba Academy Center with its academy members. Along with E-DOME, we have also started an experiment by installing Captain Box, a box to encourage people to collect used PET bottle caps with fun, which was developed with the concept of a field of study of “shaping behavior through design” ⁽²⁾. We will continue to seek solutions to issues in realizing a circular economy.

• Notes:　
• 1.DAN DAN DOME is a prefabricated cardboard tent that is recyclable.
• 2.An empirical study called “Japanese art of shaping behavior through design” that verifies the effect of a device to urge people to take action.

Participating in 2021 Project to Reduce Amount of Foreign Objects in Recycling Bins at Vending Machines

Harmonizing Plastic Packaging with the Environment

Mebius Packaging has a roadmap to implement a series of initiatives to harmonize plastic packaging with the environment, starting from reducing petroleum-based plastics and moving forward to developing recyclable products and achieving horizontal recycling. The company is currently focusing on three main themes of “reducing resin volume,” “using recycled materials,” and “using plant-based materials” in its products, in cooperation with many customers.

As a result of these initiatives, fiscal 2021 saw the following achievements.

Fully capitalizing on its production technologies and know-how in quality control for plastic containers, the company has successfully developed new plastic bottles with the same quality and performance as conventional products, and they have been adopted by several customers.

In fiscal 2022, there are an increasing number of projects underway; the adoption plans for 18 items are now in progress under the three themes of reducing resin volume, using recycled materials, and using plant-based materials. Mebius Packaging will continue to increase its efforts with customers while preparing for addressing the medium- to long-term issues: developing recyclable products and achieving horizontal recycling, aiming to achieve harmony between plastic packaging and the environment.

Risk Management of Production Facilities

Harmful substances and waste liquid that flow out of plants have a long-lasting adverse impact on the surrounding environment. While group companies have been individually implementing risk management with their environment management systems, we are now further enhancing our risk management framework. We identify equipment and facilities that carry high risks of environmental accidents based on the degrees of deterioration in facilities and the characteristics of substances handled by individual plants. The management of piping and storage tanks are given special attention since a leakage from such equipment would have a material impact. In fiscal 2021, we established environmental risk management guidelines common to all group companies to launch a group-wide risk management system.

Addressing Marine Plastic Pollution

Engagement through Clean Ocean Material Alliance

In January 2019, the Clean Ocean Material Alliance (CLOMA) was established with a wide range of business operators participating to address marine plastic pollution, an emerging global challenge. The CLOMA is aimed at promoting a new 3R (reduce, reuse, recycle) initiative toward more sustainable use of plastic products and the development and introduction of alternative materials through public-private collaboration. Toyo Seikan Group Holdings has joined the alliance as a managing partner since the preparation phase and has been working as a key member of a subcommittee of CLOMA to share information and enhance the network with partners from across industries. In 2020, CLOMA formulated an action plan to advance plastic recycling as a countermeasure against marine plastic pollution. Another four companies of our group: Toyo Seikan, Tokan Kogyo, Nippon Closures, and Mebius Packaging, have also joined the alliance to implement measures to achieve the action plan. In working groups that are relevant to their business domains, the companies are tackling new challenges to reduce additional marine plastic litter to zero by 2050.

Program for Forest and Water Conservation by Community Members

FY2021 Material Flow of Domestic Operations of Toyo Seikan Group