Climate Change Data

ADEKA CORPORATION

Climate Impact & Sustainability Data (2013, 2017-04 to 2018-03, 2018-04 to 2019-03, 2020-04 to 2021-03, 2021-04 to 2022-03)

Reporting Period: 2013

Environmental Metrics

Total Carbon Emissions:145,219 tonnes of CO2
Total Energy Consumption:67.6 thousand kℓ (crude oil equivalent)
Water Consumption:11,665 thousand m3
Waste Generated:39,144 tonnes

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Achieved energy intensity of 0.1928 kiloliters per tonne (3.9% reduction from previous year)
  • Generated 39,144 tonnes of industrial waste (1.3% reduction from previous year)
  • Achieved a 43% recycling rate (Recycled 12,279 tonnes out of 5,238 tonnes of externally processed waste).
  • Landfill disposal volume of 21.4tonnes (0.05% of industrial waste generated), Achieve zero emissions
  • Sales ratio of environmentally friendly products reached 7.6% (as compared to 6.5% in fiscal 2012).

Social Achievements

  • Extended maternity leave from two days to three days. Utilized by 48 employees.
  • Changed the units of using the short working hours system from one-hour units to 30-minute units
  • Extended childcare leave to a maximum of two years
  • Extended the maternity leave system (leave that can be taken when an employee’s partner gives birth)
  • Re-employed all retirees who submitted applications for re-employment (13 employees).

Governance Achievements

  • Introduced a new external whistleblowing system to enhance anonymity.
  • Acquired ISO 22301 certification for BCMS in November 2013.

Climate Goals & Targets

Long-term Goals:
  • Achieve landfill disposal volume of zero by fiscal 2020
Medium-term Goals:
  • Reduce energy intensity by 20% by FY2020, compared with FY1990 levels
  • Reduce CO2 emissions by 3.8% by FY2020, compared with FY2005 levels
  • Increase recycling rate for externally processed waste to 100% by FY2020
  • Reduce emission of PRTR substances by 20% compared with FY2010 level by FY2020
Short-term Goals:
  • Reduce energy intensity by 1% or more year on year
  • Reduce CO2 emissions by 1% or more year on year
  • Reduce industrial waste output by 1% or more year on year

Environmental Challenges

  • Globalization creates new and unforeseen risks across the entire supply chain, including human rights, compliance, working styles, interaction with society, and local and global standards.
  • Maintaining zero emission rate of landfill waste.
Mitigation Strategies
  • Deepening understanding of human rights and compliance, working styles, interaction with society, and local and global standards.
  • Implementing MCFS-5G activities to achieve thorough implementation of the 5G (five ways of developing the production site), in order to bring about the four areas of safety.
  • Strengthening management for reducing emissions of PRTR substances
  • Promote green purchasing while striking a balance with cost

Supply Chain Management

Responsible Procurement
  • Procurement activities in a fair and just manner based on a relationship of cooperation and trust with our business partners, and with consideration given to the environment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1, ISO 26000:2010

Certifications: ISO 9001, OHSAS 18001, ISO 22301:2012

Sustainable Products & Innovation

  • Engine oil additives that reduce the emission of CO2
  • Intumescent flame retardants that are able to suppress the generation of carbon monoxide during combustion

Awards & Recognition

  • Excellent Corporation for the Implementation and Management of Uniform Invoices from Taiwan’s Ministry of Finance

Reporting Period: 2017-04 to 2018-03

Environmental Metrics

Total Carbon Emissions:1,016.4 thousand tonnes-CO2 (Scope 1, 2, and 3)
Scope 1 Emissions:63.3 thousand tonnes-CO2
Scope 2 Emissions:88.7 thousand tonnes-CO2
Scope 3 Emissions:865.4 thousand tonnes-CO2
Water Consumption:13,533 thousand m3
Waste Generated:52,326 tonnes (industrial waste)
Carbon Intensity:0.401 t-CO2/t in FY2017

ESG Focus Areas

  • Environmental Impact Reduction
  • Supply Chain Management
  • Employee Well-being
  • Corporate Governance
  • Stakeholder Engagement

Environmental Achievements

  • Reduced CO2 emission intensity by 1.1%
  • Achieved 73% ISO14001 certification rate among manufacturing sites
  • Reduced VOC emissions by approximately 50,000 tons through water-borne coating materials
  • Indirectly contributed to CO2 reduction of approximately 1.32 million tons through ADEKA SAKURA-LUBE

Social Achievements

  • Launched a mentoring system for new employees
  • Implemented a return-to-work program for employees with mental illness
  • Maintained 100% employee attendance rate for periodic medical checkups
  • Supported employee work-life balance through various programs
  • Improved food waste recycling rate

Governance Achievements

  • Strengthened Group compliance through surveys and feedback
  • Established an internal reporting system for compliance issues
  • Conducted an assessment of the effectiveness of the board of directors
  • Implemented an anti-bribery policy and training

Climate Goals & Targets

Medium-term Goals:
  • Achieve a 3% reduction in energy intensity by FY2020 from the FY2017 level
  • Achieve a 3% reduction in CO2 emission intensity by FY2020 from the FY2017 level
  • Achieve a food recycling rate of 95% in FY2020
Short-term Goals:
  • Reduce energy intensity by 1% or more year on year
  • Reduce CO2 emission intensity by 1% or more year on year
  • Maintain zero emissions for landfill disposal of industrial waste

Environmental Challenges

  • Increased number of workplace accidents in FY2017
  • Need to further reduce environmental impact, particularly CO2 emissions
  • Ensuring sustainable palm oil procurement
  • Strengthening supplier compliance
Mitigation Strategies
  • Onsite inspections at overseas sites with accidents
  • Implementation of energy-saving initiatives and modal shift in logistics
  • Obtained RSPO supply chain certification
  • Conducting supplier surveys and audits
  • Developing a global purchasing system

Supply Chain Management

Supplier Audits: Biennial audits of existing suppliers, compliance questionnaire survey for new suppliers

Responsible Procurement
  • Sustainable palm oil procurement
  • Control of chemical substances
  • Elimination of conflict minerals
  • Global Management System (GMS) for data sharing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard 2016, Japanese Standards Association ISO 26000:2010

Certifications: ISO 9001, FSSC 22000, ISO 14001 (73% of manufacturing sites), RSPO Supply Chain Certification

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 7: Affordable and clean energy
  • Goal 8: Decent work and economic growth
  • Goal 9: Industry, innovation and infrastructure
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action
  • Goal 17: Partnerships for the goals

Sustainable Products & Innovation

  • Water-borne epoxy resins
  • Metal-free PVC stabilizers
  • ADEKA SAKURA-LUBE

Awards & Recognition

  • Environmental Logistics Special Award

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:996.0 thousand tonnes-CO2 (Scope 1, 2, and 3 combined)
Scope 1 Emissions:64.3 thousand tonnes-CO2
Scope 2 Emissions:90.5 thousand tonnes-CO2
Scope 3 Emissions:841.2 thousand tonnes-CO2
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:52,612 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced greenhouse gas emissions (details in report, but not quantified in a single percentage)
  • Improved recycling rate (details in report, but not quantified in a single percentage)
  • Achieved complete zero emissions for landfill disposal of industrial waste

Social Achievements

  • Implemented action plan to increase the ratio of women in management positions
  • Implemented measures to promote work-life balance, including childcare and nursing care support programs
  • Improved employee engagement through various initiatives (details in report)

Governance Achievements

  • Established a robust compliance structure with training programs and reporting mechanisms
  • Implemented risk management system with risk management committee and internal auditing
  • Maintained a 100% union membership rate for general employees

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the number of male employees who take childcare leave to five or more and raise the ratio of female employees who take childcare leave to 80% or more by 2021 (General Employer Action Plan)
Short-term Goals:
  • Raise the ratio of women in management positions to 5% by 2021 (Action Plan)

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, OHSAS 18001, ISO 9001, ISO 22301, HACCP, TPM, IMS, FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Various TPM awards for different plants (details in report)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:227.6 kt-CO2e (Scope 1+2)
Scope 3 Emissions:13.2 kt-CO2e
Total Energy Consumption:102.5 thousand kl crude oil equivalent
Water Consumption:605,152.6 thousand m3
Waste Generated:61,284 tons

ESG Focus Areas

  • Environmental protection
  • Making better use of human resources
  • Strengthening governance
  • Supply of eco-friendly products
  • Creating value that meets society’s expectations

Environmental Achievements

  • Reduced energy consumption by 541 kl crude-oil equivalent through energy-saving activities.
  • Achieved complete zero emissions (less than 0.1%) through recycling for landfill disposal volume of industrial waste.
  • Achieved 95.5% rate of food recycling.

Social Achievements

  • Launched Remote Work Promotion Project and Business Digitalization Project.
  • Average overtime hours per month decreased from 14.6 hours in fiscal 2019 to 12.8 hours in fiscal 2020.
  • 100% of women took childcare leave.

Governance Achievements

  • Established the Nomination and Remuneration Committee.
  • Reorganized as a Company with Audit and Supervisory Committee.
  • Implemented advance-warning anti-takeover measures.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 12% from 2013 (Scope 1+2) by 2030
  • Achieve consolidated operating profit of 35 billion yen, consolidated net sales of 380 billion yen and ROE of 9% in fiscal 2023.
Short-term Goals:
  • Reduce CO2 emission intensity by 1.0% or more year on year
  • Reduce energy intensity by 1.0% or more year on year

Environmental Challenges

  • Worldwide economic downturn and COVID-19 pandemic impacted profit targets.
  • Missed profit targets in BEYOND 300 mid-term management plan.
  • Decreased marine and railway container shipping volume due to COVID-19 pandemic, resulting in a lower modal-shift rate than targeted.
Mitigation Strategies
  • Formulated ADX 2023 mid-term management plan focusing on bolstering earnings and incorporating new social needs such as carbon-neutrality.
  • Implementing personnel and DX strategies.
  • Strengthening supply chain against risk by retaining multiple suppliers for main raw materials and making successive amendments to the supply chain.

Supply Chain Management

Supplier Audits: 75% of the Group’s purchases by value have agreed to the ADEKA Purchase Guidelines.

Responsible Procurement
  • ADEKA General Purchase Policy
  • ADEKA Purchase Guidelines
  • Sustainable sourcing of palm oil (RSPO certification)
  • Avoidance of trading in conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard, ISO 26000:2010, UNGC

Certifications: ISO 9001, ISO 14001, ISO 45001, FSSC 22000, HACCP, RSPO

Sustainable Products & Innovation

  • Reactive emulsifiers
  • Marvelous bread-baking margarine
  • APPLAUD insecticide
  • ADK CYCLOAID plastic additives

Awards & Recognition

  • 2019 Good Risk Sense Award
  • 2020 Nikkei Superior Products and Services Awards (Marvelous)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:230.3 thousand t-CO2e (2021)
Scope 1 Emissions:67.3 kt-CO2e (ADEKA 2021)
Scope 2 Emissions:83.5 kt-CO2e (ADEKA 2021)
Scope 3 Emissions:621.5 kt-CO2e (ADEKA 2021)
Total Energy Consumption:108.6 thousand kL crude oil equivalent (2021)
Water Consumption:13,641 thousand m3 (2021)
Waste Generated:65,733 tons (2021)

ESG Focus Areas

  • Conserving the global environment
  • Supply of eco-friendly products
  • Creating value that meets society’s expectations
  • Dialogue with stakeholders
  • Respect for human rights
  • Expanding opportunities for utilizing human resources
  • Strengthening Group governance and risk management

Environmental Achievements

  • Reduced CO2 emissions by 46% from 2013 (Scope 1+2) by 2030
  • Achieved complete zero emissions (landfill disposal < 0.1% of industrial waste generated) in 2021
  • Reduced energy consumption by 915 kL crude-oil equivalent in 2021 through energy-saving activities
  • Increased renewable energy share (specific percentage not provided)

Social Achievements

  • Launched Deli-PLANTS series of plant-based foods
  • Launched ADK CYCLOAID brand of eco-friendly polymer additives
  • Increased number of male employees taking childcare leave to 27 in 2021
  • Achieved 100% return-and-retention rate for employees who took childcare leave
  • Rehired 100% of mandatory retirees in 2021
  • Employed 2.13% of employees (25 people) with disabilities in 2021
  • Received recognition under the 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program

Governance Achievements

  • Transitioned from a Company with Audit & Supervisory Board to a Company with Audit and Supervisory Committee in June 2021
  • Revised ADEKA Group Corporate Governance Guidelines in 2021 and 2022
  • Submitted a CG report in December 2021 in compliance with the revised 2021 Corporate Governance Code
  • Implemented a paperless system for Board meetings

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 46% from 2013 (Scope 1 and 2) by 2030
  • Raise the proportion of managers who are women to 5% or more by FY2025
Short-term Goals:
  • Reduce energy intensity by 1.0% or more year on year
  • Reduce CO2 emission intensity by 1.0% or more year on year

Environmental Challenges

  • Climate change (transition and physical risks)
  • Supply chain disruptions
  • Rising raw material and fuel prices
  • Fluctuations in demand for products
  • Intensification of wind and water damage due to rising temperatures
Mitigation Strategies
  • Established a roadmap to become carbon neutral by 2050
  • Established the Carbon-Neutral Strategy Department
  • Developed and commercialized industrial processes for decarbonization
  • Developed and sales expansion of eco-friendly, low-carbon products
  • Improved BCP drills and measures for offices located in coastal areas
  • Developed alternative sourcing strategies
  • Business portfolio review

Supply Chain Management

Responsible Procurement
  • ADEKA General Purchase Policy
  • ADEKA Purchase Guidelines
  • Sustainable palm oil procurement (RSPO certification)
  • Conflict minerals avoidance
  • Sedex membership and SMETA audits

Climate-Related Risks & Opportunities

Physical Risks
  • Intensification of wind and water damage
Transition Risks
  • Introduction of carbon pricing
  • Shift to renewable energy
  • Growing demand for low-carbon products
Opportunities
  • Development of energy-efficient products
  • Growing demand for low-carbon products and manufacturing processes

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard, ISO 26000:2010, TCFD

Certifications: ISO 9001, FSSC 22000 (7 sites), ISO 45001

Sustainable Products & Innovation

  • Deli-PLANTS series
  • ADK CYCLOAID series
  • Eco-friendly materials for next-generation mobility

Awards & Recognition

  • Best Partner Awards from Samsung Electronics
  • Best Supplier Innovation Webinar Award from L’Oréal Japan