Response to Climate Change

Our Group's CO₂ Reduction Targets and Monitoring Indicators

Our Group's CO₂ Reduction Targets and Monitoring Indicators

We recognize that an environmental contribution consisting only of a reduction in our CO2 emissions is not enough to secure corporate sustainability. Along with these reduction efforts, we need to contribute to society by providing low-carbon energy with a view to transitioning to a low-carbon society in the future. Moreover, we also aim to contribute economically by generating constantly robust profits even as we shift our business portfolio. We consider all of these endeavors to be matters of equal importance.
In addition to our fossil fuel business, we conduct business related to the development of renewable energy and environmentally friendly products, as well as research aimed at solving social issues. These activities contribute to the reduction of CO2 emissions on a global scale throughout our value chain. We recognize that this concept will become even more important in the future along with the reduction of CO2 emissions by the Group.
Based on this recognition, in 2019 the Group established three indices to accelerate its efforts to reduce CO2 emissions.
In light of the Japanese government’s declaration of achieving carbon neutrality by 2050, we aim to contribute to the reduction of CO2 emissions through the supply of low-carbon energy.

Figure
Target value
Indicator 1Reduction of the Group’s Scope 1 + 2 emissions
(An indicator of the extent to which “Scope 1 + 2 emissions” have been reduced through the promotion of energy conservation activities at refineries, complexes, and plants, etc.)

2030 Target: Cut levels by 2 million ton-CO2 (compared to 2017 levels)
(Calculation formula) = CO2 emissions in target year (Scope 1 + 2) − CO2 emissions in base year (Scope 1 + 2)

FY2019 Results: down 1.3 million ton-CO2 (reduction activities: down 0.19 million tons; other: down 1.11 million tons)

In fiscal 2019, the progress of energy conservation activities at refineries and plants was ahead of schedule, and the Company’s CO2 reduction activities are steadily contributing to progress toward the target (see the graph on the right). It should be noted that, due to a long-term unplanned suspension caused by malfunctioning equipment at a refinery, the lower CO2 emissions from the reduced operations dovetailed nicely with our deliberate efforts to cut emissions, resulting in a larger than expected reduction.

Results of our reduction efforts targeting
Scope 1 + 2 emissions
Graph
Monitoring indicator
Indicator 2Low carbon level of supplied energy
(Indicator of the extent to which an energy company can reduce the “CO2 emissions per unit of energy” supplied to society)

2050 Indicator Level: down 30%

(Calculation formula)

FY2019 results: down 0.8%

  • * CO2 reduction contribution throughout the entire value chain

(We intend to revise this target from time to time in light of social trends)

Indicator 3Degree of carbon exit from corporate earnings
(Indicator of how the “Revenue level per unit of CO2 emitted by the Company as a whole is being raised)
(Calculation formula)

We have not currently established a target for this indicator and use it for internal purposes only.

  • * CO2 reduction contribution throughout the entire value chain

In May 2021, as we published our Medium-term Management Plan (FY2020 - 2022), we also renewed our emissions reduction target.
・FY2050 target : carbon neutral (= net zero CO2 emissions)
・FY2030 target: 4 million ton-CO2 (compared to FY2017) ※including Group refineries
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Reducing CO2 Emissions Throughout Entire Value Chains

We are committed to reducing CO2 emissions globally along the entirety of our value chains. We will promote the reduction of CO2 emissions through our business activities in the following five areas.

出光興産, DFF Inc.