Climate change due to global warming is causing serious environmental issues on a worldwide scale, such as by severely impacting biological and water resources. We recognize it as a major risk to our global operations.
In aiming to contribute to a decarbonized, more sustainable society, the Otsuka group is working to reduce greenhouse gas (GHG) emissions throughout the value chain in line with the international targets and indicators adopted under the Paris Agreement.
The Otsuka group has established 2050 Environmental Vision, “Net Zero,” with the aim of reducing the total environmental impact across all its business activities to zero. In addition to revising our CO2 emissions reduction target upward (from a 30% reduction by 2030 to a 50% reduction by 2028; compared to 2017), we have joined the international RE100 initiative and continue to promote activities aimed at decarbonization. Looking ahead, we will maximize group synergy and proactively engage in efforts to achieve carbon neutrality.
Initiatives toward Carbon Neutrality
Joining the RE100 Initiative
In April 2022, the Otsuka group joined the international RE100 initiative, which asks companies to commit to using 100% renewable energy in their business activities. As the world transitions to a decarbonized society, under our 2050 Environmental Vision, “Net Zero,” through which we aim to reduce the total environmental impact across all business activities to zero, we will continue to proactively implement measures to reduce CO2 emissions.
Otsuka Group Joins RE100 International Initiative - Committed to 100% Renewable Energy - | Otsuka Group News | Otsuka Holdings Co., Ltd.
Increasing Utilization of Renewable Energy and Maximizing Energy Efficiency
The Otsuka group has set the target of reducing CO2 emissions by 50% (compared to 2017) by 2028. To achieve this target, we are increasing our renewable energy usage through the introduction of CO2-free electricity and solar power generation equipment, and maximizing our energy efficiency through the adoption of co-generation systems.1
In 2021, we introduced CO2-free electricity at all 23 manufacturing sites of five2 Otsuka group companies, and as a result reduced our annual emissions by approximately 109,800t-CO2.3 Furthermore, in Tokushima Prefecture, which is home to many Otsuka group production facilities, we have begun upgrading the co-generation facility at Otsuka Chemical’s Tokushima Factory. This will enable us to supply electricity and steam to neighboring Otsuka group manufacturing sites and improve our energy efficiency. The new co-generation system is scheduled to begin operation in 2024, and is expected to cut annual emissions by approximately 8,000 t-CO2. In addition, we have introduced a new cogeneration system and changed boiler fuel at Otsuka Pharmaceutical Factory’s Naruto Factory, which should result in an annual reduction of approximately 4,800 t-CO2.
- 1:The engines, turbines, or fuel cells of co-generation systems generate electricity from natural gas, LPG, or other fuel sources. At the same time, the systems collect the waste heat, thereby achieving efficient use of both heat and electricity
- 2:Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Chemical, and Otsuka Foods
- 3:Compared to 2017
Introducing CO2-Free Electricity at Four* Indonesian Group Companies
Among our overseas businesses, the highest generator of CO2 emissions after Japan is Indonesia, where we are engaged in the pharmaceutical, nutraceutical, and chemical businesses. In Indonesia, we have introduced CO2-free electricity from geothermal power, which we forecast will reduce annual CO2 emissions by about 60%.
Moving forward, we will continue increasing our use of renewable energy and maximizing energy efficiency both in Japan and around the world, and make use of group synergy to contribute to a decarbonized, more sustainable society.
- *PT Otsuka Indonesia, PT Amerta Indah Otsuka, PT Widatra Bhakti, and PT Lautan Otsuka Chemical
Four Otsuka Group Companies in Indonesia Adopts CO2-Free Electricity - Approximately 13% reduction in annual CO2 emissions - | Otsuka Group News | Otsuka Holdings Co., Ltd.
Building a New Integrated Energy Service Structure
As one effort to achieve 2050 Environmental Vision, “Net Zero,” and reduce the total environmental impact across all business activities to zero, the Otsuka group has established a new integrated energy service structure under the retail electricity provider model. Through this move, we will be able to procure renewable energy from power producers and other sources, and more efficiently supply electricity generated within the Otsuka group to group business sites.
Otsuka Group Establishes a New Integrated Energy Service Structure -Contribute to a decarbonized society through collaboration among group companies - | Otsuka Group News | Otsuka Holdings Co., Ltd.
Validation of Otsuka Pharmaceutical and Taiho Pharmaceutical Goals under the SBT Initiative1
GHG reduction goals set by Otsuka Pharmaceutical and Taiho Pharmaceutical have been validated under the Science Based Targets (SBT) Initiative.
In order to achieve these new goals, we will optimize energy use and introduce renewable energy, and continue to promote reduction of GHG emissions throughout the value chain.
Reduction of greenhouse gas emissions (Scope 12 and 23) by 30% compared to 2017
Reduction of greenhouse gas emissions (Scope 34) by 20% compared to 2017
- 1:An international initiative led by the United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF). Validates companies' CO2 emission reduction targets that align with scientifically-based reduction scenarios, in order to achieve the Paris Agreement goal of holding the global average temperature increase below 2℃ above pre-industrial levels.
- 2:Scope 1: Direct emissions
- 3:Scope 2: Indirect emissions from energy sources
- 4:Scope 3: Other indirect emissions
Support Recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)
The Otsuka group has supported for recommendations issued by the Task Force on Climate-related Financial Disclosure (TCFD). We are actively engaged in analysis of climate-related business risks and opportunities and development of appropriate responses.
In order to improve the transparency and reliability of its environmental data, the Otsuka group has its GHG emissions Scopes 1 and 2 (CO2 emissions from energy sources, including energy consumption), and Scope 3 (Category 1) verified by third-party organizations. This helps us identify emissions trends and implement improvements. We will continue to expand the scope of verification and further enhance the reliability of our data.