Climate Change
GHG Emissions in the Value Chain (Scope 3)
Scope 3 GHG emissions generated in FY2022 amounted to 4,530 kt-CO2e. The percentage of Category 1 emissions out of overall Scope 3 emissions was high, so we will communicate with business partners to make the calculation of Scope 3 emissions volumes more accurate and we will set reduction targets.
- 1.Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
- 2.Excludes Categories 8–12, 14, and 15
■ Scope 3 Emissions and Percentage of Overall Emissions
| Category | Emissions (kt-CO2e) |
Percentage | Calculation Method |
|---|---|---|---|
| Total Scope 3 Emissions | 4,530 | 61.6% | |
| 1. Purchased goods and services | 3,737 | 50.8% | Σ (weight of key raw materials x emissions intensity)1 |
| 2. Capital goods | 518 | 7.0% | Σ (amount of capital expenditures x emissions intensity x 1.05)2 Capital expenditures include construction in progress, used equipment, and intragroup transactions |
| 3. Fuel- and energy-related activities not included in Scope 1 or Scope 2 | 239 | 3.3% | Σ (electricity and fuel consumptions x emissions intensity [electricity,2 fuel1]) |
| 4. Upstream transportation and distribution | 26 | 0.3% | Emissions from domestic transportation are calculated based on the Japanese laws the “Act on Rationalizing Energy Use” and “Act on Promotion of Global Warming Countermeasures.” |
| 5. Waste generated in operations | 7 | 0.1% | Σ (amount of waste by type (major sites in Japan) x emissions intensity by waste type)2 |
| 6. Business travel | 1 | 0.0% | Σ (number of employees (major sites in Japan) x emissions intensity)1 |
| 7. Employee commuting | 3 | 0.0% | Σ (number of employees (major sites in Japan) x number of business days x emissions intensity)2 |
| 8. Upstream leased assets | Not applicable3 | ||
| 9. Downstream transportation and distribution | Not applicable4 | ||
| 10. Processing of sold products | Not applicable4 | ||
| 11. Use of sold products | Not applicable4 | ||
| 12. End-of-life treatment of sold products | Not applicable4 | ||
| 13. Downstream leased assets | 0.2 | 0.0% | Σ (electricity and gas consumption by tenants of the Head Office building x emissions intensity)5 |
| 14. Franchises | Not applicable6 | ||
| 15. Investments | Not applicable7 |
- Scope includes the entire SMM Group (however, data for Category 5 to 7 only covers Group companies in Japan)
- 1.For emissions intensity, we used values from the National Institute of Advanced Industrial Science and Technology’s IDEA Ver. 3.3
- 2.For emissions intensity, we used values from the Database for Calculating GHG Emissions of the Supply Chain, Ver. 3.3, prepared by the Ministry of Environment and the Ministry of Economy, Trade and Industry in Japan
- 3.Not applicable as it is included in calculations of Scope 1 and 2 emissions
- 4.This category is not applicable because it is difficult to calculate emissions since our products are mainly non-ferrous metals and highly advanced materials, which have diverse applications after sales destinations, and each application has different GHG emission characteristics
- 5.Emissions intensity was calculated based on the list of calculation methods and emission factors of the Ministry of the Environment’s Greenhouse Gas Emissions Calculations Reporting and Publication System
- 6.Not applicable as we do not operate any franchise businesses
- 7.Not applicable as it is the disclosure of information on investments for profit
