Measures Against Climate Change

Basic ideas and policies

Although it uses fossil raw materials and fuels in its product manufacturing processes and emits a considerable amount of greenhouse gases (GHG), the Group has many products that contribute to energy conservation and the carbon cycle. We regard measures to combat climate change as a management priority in terms of both risks and opportunities. In May 2019, we announced our endorsement of the recommendations of the Task Force on Climate- related Financial Disclosures (TCFD). In accordance with these recommendations, we are promoting dialogue with our stakeholders while evaluating risks and opportunities related to climate change, conducting scenario analysis to inform initiatives that enhance our resilience, and disclosing information based on the TCFD framework.


Role of board of directors and monitoring system

Sustainability is a building block for our company management, and we define our Purpose as “change society through the power of chemistry.” To this end, we have established Sustainability Vision 2030, identified material issues for sustainability including climate actions to implement the major strategies of our long-term vision, and raised awareness throughout the Company.
The Group CEO supervises the risks and business opportunities, targets, and specific initiatives associated with climate change, while the Group CSO takes responsibility for promoting actions. After being discussed at the Carbon Neutrality Project, those issues are deliberated at the Sustainability Promotion Council and the Management Committee. The progress of each initiative is regularly monitored, and remedial measures are discussed when needed.
The Board of Directors receives periodic reports of what the Sustainability Promotion Council and the Management Committee discussed, and on which points they made decisions and deliberates and supervises them from the perspective of maximizing corporate value. From 2022, we have aligned the evaluation indexes for inside directors and executive officers with the initiatives in the long-term vision and countermeasures against sustainability issues, including climate change, with the aim to strongly incentivize them to manage the Group from a long-term perspective and promote the sustainable growth of the Group.

Positioning of carbon neutrality project (As of June 30, 2023)

カーボンニュートラルプロジェクトの位置付け(2023年6月30日現在) 取締役会-経営会議-サステナビリティ推進会議から3つに派生 レスポンシブル・ケア推進会議 カーボンニュートラルプロジェクト 人権プロジェクト


Short-, medium- to long-term climate change-related risks and opportunities and responses to them

Amid the successful transition to a carbon-neutral society, the Group sees climate change as both a risk and opportunity. The Group will exercise its social responsibility as a company and build further competitive advantages to reduce GHG emissions across the value chain by providing products and services that contribute to decarbonization, achieving co-creation with partners, improving energy efficiency, and increasing usage of renewable energy.
Given the above, the Group analyzes risks and opportunities to evaluate the impact of climate change on the Group businesses under the following two scenarios: (1) The average global temperature will increase by 4°C or more and (2) The average global temperature rise can be kept well below 2°C and continue efforts to limit it to 1.5°C based on the Paris Agreement, which were released by the Intergovernmental Panel on Climate Change (IPCC) or the International Energy Agency (IEA). Based on the analysis, we determine the necessary countermeasures.

Transition risks affecting the Group businesses include increased operating costs due to a rise in energy taxes including carbon pricing. We aim to reduce CO2 emissions to about 3.2 million t-CO2 by 2030, or a 30% reduction from 4.6 million t-CO2 in 2013. Assume that Scope 1 and 2 emissions in fiscal 2030 resulting from sales growth are estimated to be about 5 million t-CO2, the carbon pricing is set at ¥10,000/t-CO2 based on the IEA’s 2°C scenario (SDS)*1 and others, and we need to offset the portion that falls short of reduction target through emission trading. In that case, if we fail to reduce emissions by 30%, the operating cost will increase by about ¥18 billion per year, implying that hitting the reduction target will lead to reducing operating costs. As a company that interrelates with society, we will continue to use other scenario analyses to contribute to realization of a carbon-neutral society in various ways, take measures against climate risks, and achieve a sustainable growth.

Climate change-related risks and opportunities and major response measures

Impact of climate change Domain Risk category Opportunity category Time frame*2 Response
Transition risks and opportunities Increase in tax (cost) due to the introduction of carbon pricing (ICP) All business domains
Policy/ Regulation
  Medium term
  • Revision of GHG emissions reduction targets for 2030 and establishment of the roadmap
  • Implementation of carbon neutrality initiatives pertaining to chemicals and petrochemicals
  • Participation in the GX League
Switchover to renewable energy and increased procurement costs due to stronger GHG emission reduction requirements
Market/ Technology
  Short to medium term
  • Utilized hydroelectric facilities
Growing demand for a circular economy leading to GHG reductions
Market/ Technology

Product/Service/ Market
Short to medium term
  • Stepped up initiatives for plastic chemical and iron recycling (graphite electrodes)
Increasing demand for manufacturing process to become carbon neutral
Market/ Technology
  Short to medium term
  • Reviewed manufacturing processes and introduced innovative technologies
Government support under the policies for decarbonization initiatives of companies
Policy/ Regulation

Product/Service/ Market
Short to medium term
  • Development of eight-inch SiC wafers for next-generation green power semiconductors (adopted as part of the NEDO Green Innovation Fund project)
  • Development of a low-concentration CO2 separation system employing an innovative separation agent (adopted as part of the NEDO Green Innovation Fund project)
  • Reinforcement of the global semiconductor material supply chain (adopted under the Ministry of Economy, Trade and Industry subsidiary program for overseas market survey projects for building resilient supply chains in the Indo-Pacific area)
Increases/decreases in sales due to changes in consumer behavior and awareness
Market/ Technology

Product/Service/ Market
Short to medium term
  • Promotion of products, development of new products, and improvement of competitiveness in response to the needs of a decarbonized society
  • Advancement of R&D based on long-term themes at the Stage for Co-creation (new research facility)
Greater request for initiatives and disclosure related to decarbonization from customers
Market/ Technology
  Short term
  • Establishment of life cycle assessment (LCA) and carbon footprint of products (CFP) calculation frameworks, tracking of CO2 emissions, and formulation of reduction plans
Re-evaluation by investors depending on how effectively the Group captures needs from society and customers to solve environmental issues

Product/Service/ Market
Short to medium term
  • Adding value to our products/services to help solve the problems that society and customers face
  • Attracting investments through proactive measures against climate change and promotion of a recycling-oriented society
Response to technological innovation and reductions to the electricity consumption of semiconductor devices Semiconductor and Electronic Materials
Market/ Technology

Product/Service/ Market
Short to medium term
  • Establishment of the JOINT2 consortium to develop next-generation semiconductor packaging technologies (adopted as part of the advanced semiconductor manufacturing technology development project under the NEDO post-5G telecommunications system platform reinforcement R&D program)
  • Assessment of environmental standard conformity of product designs, and development of low-carbon products
Growing demand for energy-saving, nextgeneration power semiconductors in conjunction with an increase in data processing volumes brought about by digitalization
Market/ Technology

Product/Service/ Market
Short to medium term
  • HD media R&D to reduce electricity consumption of data centers
  • Response to increased demand for SiC power semiconductors
Increasing demand for development of battery-related materials and composites Mobility
Market/ Technology

Product/Service/ Market
Short to medium term
  • Maximized synergies in materials development through integration (solutions for materials such as heat, sound, and electromagnetic wave control, and modular solutions in system design such as modularization of components)
Expanding demand for materials and components that contribute to lower fuel/energy consumption by automobiles and to the spread of EVs
Market/ Technology

Product/Service/ Market
Short to medium term
  • Developed materials that contribute to miniaturizing and reducing the weight of parts
  • Responded to increasing demand for SiC power semiconductors
Physical risks Suspended operation of manufacturing sites due to flooding, and decrease in profit caused by an increase in the equipment repair cost All business domains
  Short term
  • Analysis of flood risks at manufacturing sites
  • Regular risk identification and reduction activities, and enhancement of business continuity planning
  • *1 2°C scenario (SDS): Sustainable development scenario
  • *2 Time frame: Short term: less than three years; Medium term: three to less than 10 years; Long term: 10 to 30 years
  • * Adopted scenarios: 1.5/2°C scenarios (IPCC/RCP2.6, IEA/SDS, IEA/NZE [partial]), 4°C scenarios (IPCC/RCP8.5, IEA/STEPS)

Risk Management

Process to assess, identify, and manage risks

The Group conducts a scenario analysis to assess “transition risks” and “physical risks” arising from climate change for each business, identifies material risks for the Group, and then develops countermeasures against them. Material issues in identifying risks and developing countermeasures are reported to the Board of Directors. We will continue to conduct the scenario analysis to update risks and countermeasures, along with monitoring the progress of the existing countermeasures.

Integration into enterprise risk management

Given the importance of building an enterprise risk management system, the Group pursues integrated risk management using a common framework across the Group. Information on climate change and other risks with the potential to impact the Group’s management is registered in an integrated manner into our risk management system via companywide risk identification activities (as part of risk assessment procedures). Top risks, which are deemed to have a particularly high frequency or degree of impact, are deliberated by a dedicated committee (Risk Management Committee). Important matters examined by the Sustainability Promotion Council and the Risk Management Committee are submitted to the Management Committee for deliberation and decision before being reported to the Board of Directors.

Risk management structure (as of June 30, 2023)

リスクマネジメントの流れ(2023年6月30日現在)CXO組織、事業部門事業所、グループ会社 戦略リスクはCSO、CFO、オペレーショナルリスクやハザードリスクはCRO管掌の下、リスクマネジメントを推進→リスクマネジメント委員会 重点リスクの審議→経営会議 リスクマネジメント方針・計画の審議および活動の承認→取締役会 リスクマネジメント方針・計画の承認および活動の監督

Indicators and Targets

Toward carbon neutrality in 2050, upon the formation of the new company, we reviewed our GHG emissions reduction targets for 2030 in 2021 and set the target of a 30% reduction relative to the 2013 level. We will review medium- to long-term plans for each business, aiming to create a low-carbon economy. To achieve our GHG emissions reduction targets for 2030, we will further reduce our GHG emissions and promote energy conservation. Carbon neutrality will also be pursued leading up to 2050, to accomplish the goal of becoming a company that contributes to a sustainable global society as put forth by our long-term vision. In 2022, we reduced our GHG emissions by 7.3% compared to the level in 2013, due to a decrease in production volume in some products and a procurement of renewable energy.

Targets and results of KPIs on material issues

KPIs on material issues 2030 targets Results in 2022
Reduction of greenhouse gas (GHG) emissions 30% reduction in GHG emissions (Scope 1 + Scope 2) from fiscal 2013 (consolidated) 7.3% reduction in GHG emissions (Scope 1 + Scope 2) from 2013 (consolidated)

* Given the integration of the two companies, the actual reduction has been revised. Also, we consider starting the calculation and disclosure of Scope 3 emissions from upstream activities before setting a reduction target.

Scope3 GHG emissions (2022)

Category1,5,6,7:Former Showa Denko K.K., Category2,3:Resonac Group, Category4:Resonac Corporation

  Category The amount of emission (kt/Year)
1 Purchased goods and services 1,969
2 Capital goods 308
3 Fuel- and energy-related activities 466
4 Upstream transportation and distribution 26.5
5 Waste generated in operations 10
6 Business travel 1
7 Employee commuting 0.5
  Total upstream emissions 2,781
レゾナック単体 2018年 513百万トンキロ 2019年 468百万トンキロ 2020年 427百万トンキロ 2021年 372百万トンキロ 2022年 382百万トンキロ

Freight ton-km

輸送部門のCO2排出量(レゾナック単体) 2018年 32.8千t 2019年 28.9千t 2020年 25.9千t 2021年 26.4千t 2022年 26.5千t 輸送エネルギー消費原単位(レゾナック単体) 2018年 28.5kl/百万トンキロ 2019年 28.0kl/百万トンキロ 2020年 27.7kl/百万トンキロ 2021年 27.0kl/百万トンキロ 2022年 26.2kl/百万トンキロ

Transportation sector's CO2 emissions and energy consumption rate

In order to reduce the environmental impact associated with logistics, we are promoting a modal shift from truck to rail and ship transportation as well as making efficient use of large trucks and increasing their loading efficiency to reduce our CO2 emissions.While transportation volume increased in 2022, CO₂ emissions remained almost the same, resulting in a year-on-year improvement in unit transportation energy consumption.