Main Climate Change Countermeasures
We are working to counter the effects of climate change, primarily through the following four measures.
1 Reduction of GHG Emissions in the Production Process
We are working to reduce GHG emissions generated in the production process through a medium- to long-term approach outlined below.
Energy saving
E.g., Upgrade to highly efficient facilities, improve production processes, introduce AI and IoT
Energy transition
E.g., Transition to LNG, electricity, hydrogen, and biofuels
Utilizing external technologies, businesses, and policies
E.g., New CO2 -free fuels such as synthetic methane, hydrogen, and ammonia as renewable energy sources Carbon capture, utilization, and storage (CCUS) technology
Using Internal Carbon Pricing
The SMM Group implemented Internal Carbon Pricing (ICP), an action in which companies set an in-house carbon price to promote capital investments for decarbonization and energy savings and consider GHG emission reductions as a capital investment effect. Since introducing an ICP in September 2020, we have moved forward with decarbonization investments that make active use of ICP at business sites. Specifically, in addition to energy-saving investments, such as introducing LED lighting and replacing to highly efficient air conditioning equipment, we are actively taking on various challenges, including those related to solar power and a fuel transition from heavy oil to LNG, which previously could not be undertaken because of poor investment return. We plan on further expanding ICP measures.
| Investments subject to ICP1 | Anticipated CO2 emissions reduction (t-CO2/year)2 |
|---|---|
| 33 | 76,755 |
- 1.Covers investments for which the application of the system was decided between 2021 and March 2023
- 2.As this includes investments that will be implemented from FY2024 onward, the period in which effects manifest and the period in which application was decided are not concurrent
■ ICP System Application Examples
| Toyo Smelter & Refinery | Transition from heavy oil to LNG as fuel for some heat supply equipment (to be completed in stages from FY2023 to FY2025) |
|---|---|
| Niihama Nickel Refinery | Transition from heavy oil to LNG as boiler fuel (to be completed in FY2023) |
| Harima Refinery | Transition to electricity generated from renewable sources for 100% of purchased electricity (underway since FY2022) |
| Hishikari Mine | Transition to electricity generated from renewable sources for 100% of purchased electricity (underway since 2023) |
| CBNC | Transition to co-firing by replacing some fuel coal with woody biomass (currently being trialed) |
2 Development and Supply of Products that Contribute to a Low-Carbon Society
Products or materials that contribute to reducing GHG emissions at a society-wide level through their production and supply by our Group are positioned as low-carbon products, and their development and supply to the market are actively promoted. In FY2022, they contributed to reducing GHG emissions by 540 kt-CO2e.*
Of our products, the combined value that cathode materials for automobile batteries and near-infrared absorbing material (CWO® (only for automobile glass)) from objectively calculated technical data provided by the public or by customers
3 Realizing a Stable Supply of Non-Ferrous Metal Resources
The main mineral resources for renewable energy, which is a major trend in realizing a carbon neutral society, and used in the electrification
of EVs and other vehicles are shown in the table below. We provide many of these materials. We are also developing technologies
for the efficient recovery of lithium from salt lake water and studying its industrialization.
The exact metal usage per vehicle increases as electrification advances, with copper requiring 3.6 times the weight equivalent of a
gasoline-powered vehicle. We believe that meeting the growing demand for such materials is an important role that our Group
should fulfill.
| System and Fundamental Technology | Main Metal Resources Required* | ||
|---|---|---|---|
| Renewable energy sector | Power generation and batteries | Wind power generation | Copper, aluminum, rare earths |
| Solar power generation | Indium, gallium, selenium, copper | ||
| Geothermal power generation | Titanium | ||
| Large-capacity storage batteries | Vanadium, lithium, cobalt, manganese, copper | ||
| Automobile sector | Batteries, motors, etc. | Lithium-ion batteries | Lithium, cobalt, nickel, manganese, copper |
| Solid-state batteries | Lithium, nickel, manganese, copper | ||
| High-performance magnets | Rare earths | ||
| Fuel cells (electrodes, catalysts) | Platinum, nickel, rare earths (scandium) | ||
| Hydrogen tanks | Titanium, niobium, zinc, magnesium, vanadium | ||
Materials in a blue font are produced by the Group
■ Metal Used per Vehicle (kg)
- Source: The Agency for Natural Resources and Energy’s Mineral Resources Policy for Achieving Carbon Neutrality in 2050
4 Establishing Innovative Technologies that Support Decarbonization
In achieving carbon neutrality for our Group, it is essential to develop innovative technologies that lead to a dramatic reduction in GHG emissions within smelting and refining operations, which account for 90% of our total emissions, and to apply these technologies to our production processes. In copper smelting and refining, we are developing hydrogen reduction technology to reduce coal consumption, and for nickel smelting and refining, we are developing a next-generation process and CO2 fixation technology. We have our eye on the future as we work in collaboration with multiple universities and companies to proactively pursue next-generation technology.
