Climate Change
Policy and Basic Approach
The issue of climate change affects the entire planet, and also threatens human safety and security worldwide. The Kansai Paint Group recognizes climate change as a pressing issue warranting urgent solutions and is seeking to address climate change as a key management issue from a Groupwide perspective.
As an enterprise that uses chemicals in its businesses, the Kansai Paint Group has established the Corporate Policies on Environmental Conservation and carries out responsible care activities including properly managing and reducing use of substances that impact the environment. In November 2021, we announced new materiality items and declared our aim of realizing carbon neutrality in 2050.
1. To supply products after full consideration of their potential impacts on people and the environment.
2. To undertake proactive countermeasures to cope with the potential effects ofproducts on people and the environment.
3. To contribute to society while raising awareness about the environment, safety and health.
4. To disclose and provide information related to the environment, safety and health.
Structure & System
The Kansai Paint Group has established the Sustainability Promotion Committee under the Corporate Governance Committee to oversee the improvement of corporate value from a non-financial perspective and make prompt decisions. The Sustainability Development Department, a standing organization, revises plans, while the Sustainability Promotion Department collaborates with other departments to execute inventive yet feasible measures. They work together with business units to improve corporate value over the long term. Going forward, we will continue to steadily promote sustainability initiatives within a framework aligned with our new management policies.
Initiatives
Disclosure Based on TCFD Recommendations
The Kansai Plant Group will gradually disclose the 11 recommended disclosure items in the TCFD recommendations.
KPCCM2030
We have selected activity targets and KPIs for the environment by combining the KPIs for realizing our Materiality with the KPIs for reduction of environmental impact which we have been promoting in our responsible care activities. To achieve these KPIs, the Sustainability Promotion Department coordinates with each business unit and Group companies to promote countermeasures and improvement activities.
Of the KPIs that we have set for realizing our materialities, the target of reducing secondary energy consumption by 20% is an extremely ambitious goal, but it is also one of the most important KPIs as energy prices continue to rise. To achieve that, we must not only completely eliminate waste, but also drastically reexamine the supply chain and actively take measures to improve our work styles. Various initiatives to this end are already underway, including office relocation.
Regarding efforts to minimize our environmental impact, we have revisited substances that have already met the target levels outlined in ALES ECO PLAN 2021 and reorganized our KPIs. While we will continue to monitor ozone-depleting substances no longer employed in our operations, as well as lead, which has been phased out, these elements have been excluded from our KPIs.
- Summary of Scope 3 Categories for Estimated GHG Emissions in the Supply Chain
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To comprehend the present GHG emissions of Kansai Paint and advance efforts for their reduction, we initially established and structured individual Scope 3 categories internally in Japan and India, using the calculation guidelines provided by the Ministry of the Environment and IDEA v3.3 for reference. We then calculated emissions for the primary Scope 1, 2, and 3 categories by portfolio (by field), and proceeded to identify priority issues.
Note: Kansai Paint Co., Ltd. and consolidated subsidiaries in Japan (coverage ratio in Japan: 72%)
- Ratio of CO2 Emissions by Category
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The efforts to reduce Scope 3 GHG emissions are largely affected by Category 1 emissions related to the production and procurement of raw materials, Category 4 and Category 9 emissions related to logistics, and Category 11 emissions related to painting and drying to paint film processes.
- Green Energy Plan
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We are promoting a greener energy mix with the aim of reducing CO2 emissions globally. Leading the way in transitioning to green energy, the Indian region has restructured its factories and invested in solar and wind power facilities. Consequently, it has already achieved a renewable energy utilization rate of 48.6%. With the Group’s overall utilization rate standing at 6.7%, we will actively promote the adoption of green energy for 2030 at 15% or more, through region-specific approaches to further enhance its usage.
