Challenges to Realize Carbon Neutrality

Basic ideas and policies

Climate change phenomena are occurring frequently and on a global scale. According to the science, greenhouse gases are considered to be a major factor for such phenomena. Under the Paris Agreement, a leading international initiative to tackle this issue, a goal was set to keep the rise in mean global temperature to less than two degrees Celsius above pre-industrial levels (“two degree target”), and efforts to address this challenge are expected to be accelerated over the coming years.
In order to support such efforts, the Resonac Group will take up new challenges aimed at carbon neutrality, setting goals for 2050. This is one of our key approaches to becoming a “company that contributes to a sustainable global society,” the ideal state defined in our Long-term Vision.


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.

Roadmap to carbon neutrality in 2050

Toward carbon neutrality in 2050, we will streamline our businesses, increase efficiency, save energy, and switch to gas fuels (high-efficiency co-generation system) until 2030. Furthermore, the Group will develop technology for sustainable plastic chemical recycling and facilitate new technology for CO2 separation, capturing, and use. From 2030 onward, with the aim to achieve 2050 target, the Group plans to promote fuel conversion and mixed combustion to ammonia and hydrogen, as well as electrification of manufacturing processes. We will also change our manufacturing process to those using our own hydroelectric power generation and renewable energy sources. We pursue carbon neutrality by implementing sustainable plastic chemical recycling technologies, applying innovative CO2 separation and capturing technologies, and using recycled CO2 as chemical materials. To achieve the target, we have broken it down to business division level targets, reduction measures, and actions.

Road to carbon neutrality

load to cn

Initiatives for carbon neutrality

High-efficiency co-generation system

The Resonac Group has installed in-house thermal power generation systems with the boiler and the steam turbine designed so as to ensure the efficient supply of electricity and heat (steam) energy sourced from fossil fuels. This is to allow the energy to be used effectively for each of the different production processes, such as heating and distillation, at chemical plants. Also, this off-grid power supply function represents an essential BCP item at chemical plants in preparation for the contingency of a power outage.

We will upgrade the above in-house thermal power generation systems so as to serve our carbon neutrality initiatives. The plan consists of two steps. In the first step, we will introduce a state-of-the-art high-efficiency gas turbine co-generation system, among others, to improve overall energy efficiency, and then switch to fuels with lower CO2 emissions per calorie in an effort to promote lower-emission operations. These measures involve conversion from solid to liquid fuels, which will effect a significant reduction of CO2 emissions, thereby contributing to environmental conservation.
The second step is the planned adoption of co-firing systems based on carbon-free ammonia and other fuels as well as of carbon capture utilization (CCU) and other carbon recycling processes, aiming for carbon neutrality.

Promotion/expansion of chemical recycling

In order to facilitate carbon neutrality in the chemicals industry, it is imperative, along with increasing energy use efficiency, to reduce the use of fossil resources, a leading raw material for many chemical products, as exemplified by plastics. In Japan, a reported 70% of used plastics are incinerated, resulting in CO2 emissions, including for the purpose of heat recovery.
Among a number of proposed solutions to this issue, chemical recycling—referring to the reuse of plastic waste as a raw material for chemical products—is drawing broad attention.

The Resonac Group is already engaged in plastic chemical recycling for ammonia and hydrogen manufacturing. Based on the practical knowledge on plastic waste utilization that has been cultivated through past operations, we are ramping up R&D activities to expand the application of chemical recycling capabilities. Specific plans are discussed for adopting recycled plastics to manufacture ethylene, propylene and other substances used as raw materials for plastics and many other types of organic chemical products in place of petroleum naphtha, a primary conventional option.

We are striving to raise the chemical recycling rate to the extent possible, overcoming limitations related to dirt and impurities, with the aim of achieving fossil-free chemicals production, which represents a significant stride toward a carbon neutral society. We will accelerate our efforts to introduce the results of the above activities to the market as early as possible to broaden the range of applicable products that support a recycling-oriented, carbon neutral society, thus fulfilling our social responsibility as a chemicals manufacturer.

TOPICSIntellectual Property on Chemical Recycling Technology

The Resonac Group takes a proactive approach to intellectual property on our chemical recycling technologies, centering on the Kawasaki Plastic Recycle (KPR) process for which we own a patent concerning the “gasification furnace operating method to reduce slag viscosity (international application number PCT/JP2020/047249).” We are building a solid patent portfolio across the entire process of chemical recycling, while making strategic IP investments aimed to underpin our sustainable business development.