Environment

Responding to Climate Change

The Eiken Group recognizes that responding to climate change is an especially vital issue for the sustainability of society. One key task is to reduce emissions of CO2 and other greenhouse gases that are factors in climate change. The Group sets medium-to-long term targets for reducing these emissions, as part of energy-saving activities under its environmental management system, and carries out activities to achieve them. As climate disasters grow more intense and frequent, the world’s attitude to global warming is changing, as the Paris Agreement and other landmark events testify. In view of these trends, the Eiken Group is strengthening its efforts to achieve carbon neutrality by 2050. In the past, the Group has framed its reduction targets in terms of CO2 emission volume per unit of net sales. Beginning in FY2022, however, to clarify its approach to reaching carbon neutrality, the Group is switching to targets for absolute emission volume reduction Group-wide. In this way the Group is redoubling its determination to mitigate climate change.

Targets and Results

 

Results for FY2018
(Base year)

Target for FY2024

Target for FY2030

Reduction in CO2 emissions at
business locations
(Scope 1 and Scope 2)

7,268t-CO2

14% reduction
(compared to FY2018)

30% reduction
(compared to FY2018)

 

Note: CO2 output volume for its supply chain (Scope 3) are shown in the “ESG Data.”

  • •*Scope1: Direct emission from own fuel usage or usage in manufacturing processes of the Company
  • •*Scope2: Indirect emissions from usage of electricity or heat purchased by the Company
  • •*Scope3: Indirect emissions related to processes other than Scope1 and Scope2 (procurement of raw materials, product shipment, usage, and disposal, employee commuting, business trips, etc.)

Progress Toward Carbon-Neutral Status (Scope 1 + 2)

Response to the Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)

In 2015 the Financial Stability Board (FSB), an international body based in Switzerland, established the Task Force on Climate-Related Financial Disclosures (TCFD). In its final report, tabled in June 2017, the TCFD recommended that companies disclose climate-related information that may affect their finances. The TCFD recommends disclosure of risks and opportunities presented by climate change in terms of four elements: governance, strategy, risk management, and indices and targets.

The Eiken Group recognizes the risks that climate change poses for financial markets. The Group’s policy is to redouble its current efforts on climate change while conducting repeated analysis and discussion of disclosure in view of the TCFD recommendations, to gradually broaden the scope of its disclosure.

Governance

The Eiken Group recognizes climate change as a materiality. The Group’s Sustainability Committee, chaired by the president and representative director, drafts targets and action plans and manages progress. Activities to tackle climate change as deliberated upon by the Sustainability Committee are reported to and supervised by the Board of Directors and some of their results are reflected in evaluations of the business results of executive officers. In terms of its framework for environmental management, the Group strives for continuous improvement through the Environmental Management Committee, which is chaired by an executive officer from the Business Management Division.
Environmental Management

Strategy

In view of the Paris Agreement of 2015, the IPCC Special Report on Global Warming of 1.5°C published in 2018 and COP26 in 2021, the Eiken Group analyzes scenarios for the risks and opportunities presented by climate change and how they may impact its finances, based on the framework of the TCFD recommendations. On that basis, the Group identifies issues to tackle and drafts management strategies and plans accordingly.

Risk management

Each year the Eiken Group, through its environmental management system, evaluates the impact of its business activities on the environment in terms of two perspectives: compliance and environmental impact. In its risk management framework, once a year the Group conducts a comprehensive risk assessment, including risks not related to the environment and climate change. To respond to climate change, the Group prepares a risk management framework and infrastructure for dealing with expected natural disasters, such as flood. In preparation for infectious diseases that may proliferate or newly emerge as a result of global warming, the Group develops and provides diagnostic and medical products in a timely manner.

Going forward, the Group will assess climate-related risks and opportunities in view of the TCFD recommendations, deliberate on them through the Environmental Management Committee and Sustainability Committee, and work to reduce associated risks and act on related business opportunities.

Indices and targets

The Eiken Group aims to become carbon-neutral by 2050. The Group has set a further target of reducing CO2 emissions (Scope 1 and Scope 2) by 30% compared with FY2018 by 2030.
The Group have disclosed our Scope 3 results in our “ESG Data” and will work toward setting reduction targets.

Results of activities

Utilization of Hydroelectric Power Generation

Eiken Chemical aims to be carbon neutral (Scope 1 and 2) by 2050 and is promoting the introduction of sustainable power. As one of our efforts, we have adopted "Tochigi Furusato Denryoku", which is power generated solely from water without emitting CO₂ during power generation, at our Nogi Plant (Nogi-machi, Tochigi Prefecture) since March 2022. Tochigi Furusato Electricity" is a locally produced and consumed renewable energy provided by Tochigi Prefectural Government and Tokyo Electric Power Energy Partner, Inc. A portion of the electricity charges are used for environmental conservation projects in Tochigi Prefecture, thus contributing to the local community, and we are working to achieve both community partnerships and global environmental conservation.

Solar Panel Installation

Solar panels were installed on the roofs of the Nogi Division’s Operation Management Center (OMC) and Dried Product Plant (DPP) facilities, and they currently generate approximately 6,000 kWh per month on average. In addition, a monitor displaying a visualization of power generation conditions was installed. This real-time display spreads information about power generation and increases awareness of energy conservation.

At the Nasu Division, the solar energy from solar panels installed on some buildings is used to charge low-environmental-impact electric vehicles (EVs) introduced as Company vehicles.

Implementation of Supply Chain Environmental Evaluations

At the Company, an initiative to calculate supply chain greenhouse gas emissions as Scope1, Scope2, or Scope3 is underway. At each step from procurement of raw materials to shipping products, usage, and disposal, the steps with the largest greenhouse gas emission volumes and potential for reduction can be identified. In this way, we can reduce not only our own emissions but also those of raw material suppliers, product buyers, and other parties within the supply chain as a whole. This can also promote the sharing of information with the companies that make up the supply chain, helping to build understanding among these related parties so we can all work together to reduce greenhouse gases.

 

  • •*Scope1: Direct emission from own fuel usage or usage in manufacturing processes of the Company
  • •*Scope2: Indirect emissions from usage of electricity or heat purchased by the Company
  • •*Scope3: Indirect emissions related to processes other than Scope1 and Scope2 (procurement of raw materials, product shipment, usage, and disposal, employee commuting, business trips, etc.)

Developing Products which are Environmentally Friendly (environmentally-conscious products)

The Company is always carrying out environmentally-conscious initiatives for product development. The polyvinyl chloride used in conventional products has been reduced by planned replacement, and this material is currently no longer used in our products. One specific initiative is the transition of storage requirements from freezing to room temperature for the TB-LAMP tuberculosis detection system which is also used in developing countries. This reduces the energy requirements related to cooling during shipping and also eliminates the need for a refrigerator in testing facilities, making examinations possible without concern for electricity. This also links to reduced plastic requirements for examinations, reducing waste and achieving a more environmentally-conscious product. Through initiatives for detail-oriented design and development of medical devices to meet customer demands, we are working to improve characteristics such as miniaturization, weight reduction, power conservation, short-term processing, and recyclability. Installation of the latest energy conservation equipment and high-performance processing machinery is promoted by setting goal values for each fiscal year.

Environmental Impact Assessments of All Existing Products

Once a year, Eiken Chemical conducts environmental impact assessments of all existing products. The criteria applied differ by type of product. For reagents and fixtures, criteria include sales volume, storage conditions, shipping load, expiration date, inclusion of toxic substances, user complaints and environmental requirements. For devices, criteria include number of units installed, service life, power consumption, use/non-use of consumables, device materials and packaging, user complaints and environmental requirements. Similar criteria are applied to new products, which are assessed before product launch.

Registration for COOL CHOICE

COOL CHOICE is an initiative promoted by the Japanese Ministry of the Environment to encourage people to make all kinds of "smart choices" in their daily lives, such as replacing products, using services, and choosing lifestyles that contribute to the creation of a decarbonized society in order to reduce emissions of greenhouse gases such as COOL CHOICE.
 The Company are registered as an endorser of the "COOL CHOICE" initiative and are promoting various initiatives at each of our business sites as follows.

Measures at Each Location

Measures Overview

Eco Day: All Employees Leave
Work at the Same Time

At each of the Company’s business sites, all employees finish work at the same time, and this initiative reduces energy expenditure for air conditioning and lighting.

Cool Biz, Warm Biz

The Company has established periods during the year for Cool Biz and Warm Biz dress codes, and the air conditioning is set at reduced levels in accordance with the Ministry of the Environment recommendations: 28 degrees Celsius in the summer and 20 degrees Celsius in the winter.

IT Utilization for Improved Operation Efficiency and Reduction of Printing Costs and Paper Usage

In order to improve the operation of our business systems and to respond to globalization, The Company have launched an IT project and have been working on it since 2017. As The Company have been working on the IT implementation of the core business system, we were able to achieve paperless operation in most of our operations by April 2021.

Promoting the Adoption of Hybrid Vehicles for Company Use

The Company has promoted the adoption of hybrid vehicles for use as company cars, and this conversion was completed in 2019. In FY2020, average gasoline consumption was reduced by 40% from the level before the conversion.

ECO DRIVE Campaign The Company is conducting a campaign to raise awareness of eco-driving, one of the decarbonization actions recommended by the Ministry of the Environment.
Green Curtain Project
The Company has been growing goya (bitter melon) at its Nasu Plant every summer to create a green curtain, as part of the Green Curtain Project recommended by the Ministry of the Environment.

Expansion of Forest Stewardship Council (FSC) Certifications for Printed Materials

FSC certified paper is used for our corporate brochure and internal bulletins, indirectly supporting forest conservation all over the world.

Promotion of Green Purchasing

The Company is promoting the use of Eco Mark products because we believe their use will minimize environmental burdens.