Climate Change Data

Hokko Chemical Industry Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:31,195 t-CO2 (FY2023, non-consolidated, Scope 1 & 2)
Scope 3 Emissions:251,039 t-CO2 (FY2022, non-consolidated)
Total Energy Consumption:12,008 kL (FY2023)
Water Consumption:451,000 m3 (FY2023)
Waste Generated:5,850 tons (FY2023)

ESG Focus Areas

  • SDGs
  • Climate change
  • Carbon neutrality
  • Energy savings
  • CSR procurement
  • Human capital management
  • TCFD

Environmental Achievements

  • Unit energy consumption: average annual improvement of 3.4% (for 5 fiscal years)
  • 22% reduction in Scope 1 and Scope 2 greenhouse gas emissions by FY 2030 (compared with FY 2013)
  • Carbon neutrality target by FY 2050

Social Achievements

  • Launched Rakuryu, a new spread type formulation significantly reducing pesticide application labor and time
  • Various educational programs for employee development including rank-based training and professional ability-based training
  • Initiatives for diversity, work-life balance, health management, occupational health and safety, and compliance

Governance Achievements

  • Established Basic Compliance Policy, Hokko Chemical Industry Group Code of Conduct, and Basic Regulations on Legal Compliance
  • Established Compliance Committee, internal and external hotlines for anonymous reporting
  • Drafted a business continuity plan (BCP) to minimize damage and ensure business continuity in case of disasters

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality in FY 2050
Medium-term Goals:
  • 22% reduction in Scope 1 and Scope 2 greenhouse gas emissions by FY 2030 (compared with FY 2013)
Short-term Goals:
  • Launch 3 new Rakuryu formulations by the end of FY 2026
  • Register Ipfencarbazone in 5 countries by the end of FY 2026

Environmental Challenges

  • Risks associated with climate change (physical risks like flood damage, transition risks like regulatory changes and market shifts)
  • Impact on chemical pesticides due to increased demand for environmental considerations
  • Rising costs of raw materials and energy
Mitigation Strategies
  • Promoting energy conservation activities
  • Introducing new technologies (energy efficiency), using recycled oil, energy-saving facilities, fuel conversion, solar power generation
  • Developing products with reduced environmental impact and products derived from nature
  • Formulating and disclosing a CSR procurement policy

Supply Chain Management

Responsible Procurement
  • Formulate and disclose a CSR procurement policy

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of flood damage
  • Changes to the agricultural environment associated with temperature and amount of rainfall
Transition Risks
  • Promotion of national policies on decarbonization
  • Delays in low carbonization of proprietary products
  • Rising costs of raw materials and energy
Opportunities
  • Improved competitiveness and reputation associated with the launch of low-carbon products on the market
  • Increased demand for products related to electrical energy
  • Increased demand for naturally-sourced crop protection products and labor-saving formulations

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Sustainable Products & Innovation

  • Rakuryu
  • Products derived from nature
  • Products with reduced environmental impact

Awards & Recognition

  • METI Minister’s Award under the National Award for Factory Greening (Niigata Factory)