With the Global Environment(The Environment)

Global Warming Preventive Measures

We are developing an environmental management system to be an Asian company. In order to take measures to significantly cut the amount of greenhouse gases with a view to achieving a low-carbon society, we expanded the scope of our reporting targets.


Summary for Fiscal 2014

If calculated for the existing scope of operations using the electricity emissions factor of 0.378 kg-CO2/kWh (which is the overall power average in 2000 as reported by the Federation of Electric Power Companies), the KOKUYO Group's CO2 emissions in fiscal 2014 totaled 26,264 tons, 362 tons(1.4%) more than in the previous fiscal year. Based on estimates, there were emission reductions of 784 tons due to operational improvements and 311 tons due to equipment improvements. Manufacturing operations and the closing and consolidating of facilities raised emissions by 1,477 tons. As a result, there was an effective reduction in CO2 emissions of 1,095 tons from a combination of operational and equipment improvements. Consequently, excluding the impact of production activities, emissions were down 4.1% from the previous fiscal year to allow us to meet our goal of a 1.3% reduction.

Looking at sources of CO2 emissions, there was a decrease of 525 tons at factories due to higher manufacturing efficiency and other improvements. However, factories recorded a net decrease in emissions of about 136 tons because growth in production volume raised emissions by 389 tons. For distribution activities, although emissions increased by 114 tons because of a higher volume of operations, there was a reduction of 138 tons due to heightened measures to conserve electricity and other energy use for a net increase in emissions of 24 tons. In the offices, emissions were down approximately 200 tons thanks to the more efficient use of heating and cooling systems and the effective use of heat storage. Additionally, to use energy more efficiently, we oversee unit energy consumption, which is obtained by dividing energy consumption by sales. In fiscal 2014, our unit energy consumption was 1.4% less than in the previous fiscal year.

Major Increase in CO2 as Emission Figures Worsen

If the figures for each of the various countries on the greenhouse gas (GHG) protocol website made public by the World Business Council for Sustainable Development (WBCSD) and the World Resource Institute (WRI) are adopted as the figures for the CO2 emission coefficients and added to the Japanese CO2 emission coefficients based on the Act Concerning the Promotion of Global Warming Countermeasures (for fiscal 2014, actual emission coefficients for each power company for fiscal 2012 and 2013), then the total rises 7,974 tons to 34,238 tons.


Expanding the Scope of Reporting

While 16 companies were included in the scope of CO2 emission reporting (reporting scope A *1 ) until fiscal 2011, all consolidated subsidiaries came to be included in the scope of reporting starting in fiscal 2012 (for fiscal 2014, 33 companies; reporting scope B *2 ). As a result, CO2 emissions totaled 45,479 tons (including 1,743 tons at non-consolidated sales companies). The use of a less favorable emission coefficient and the extension of CO2 emission reporting to the supply chain have resulted in significant changes for the KOKUYO Group. Consequently, we believe that the medium-term goals for emissions will have to be reexamined.

*1: A: KOKUYO Co., Ltd., 12 consolidated subsidiaries, and 3 affiliated companies

*2: B: KOKUYO Co., Ltd., 22 consolidated subsidiaries, and 10 affiliated companies

* See: 「Changes in CO2 emissions

Measures for the prevention of global warming in our plants


A reduction of approximately 170 tons in CO2 emissions was achieved by our plant in Thailand thanks in part to a review carried out into the operations of molding machines

A reduction of 316 tons in CO2 emissions was achieved at our plants thanks to operational improvements attributed in part to a shortening of the time required to make changes in product types, the thorough application of rules for the operations of production equipment, the conducting of inspections, the elaboration of production schedules, and a reduction of waste made possible through energy checks. In addition, a reduction of 209 tons in CO2 emissions was achieved by switching from LPG to LNG, adapting systems to enable the installation of inverters, switching to LED lights, and otherwise embracing energy-saving equipment. While an increase in production resulted in an increase in CO2 emissions of 389 tons on a year-on-year basis, there was a net reduction of 136 tons in CO2 emissions (reduction of 179 tons domestically and an increase of 43 tons overseas) resulting from a reduction of 525 tons attributed to the above operational improvements and equipment improvements.

Measures for the prevention of global warming in the area of logistics


Hybrid streetlights installed at our Metropolitan Area Integrated Distribution Center (IDC)

In the area of logistics (storage and shipping), we achieved a reduction of 24 tons in CO2 emissions compared to the preceding fiscal year. A reduction of 88 tons in CO2 emissions due to operational improvements attributed to the promotion of energy-saving activities carried out on a day-to-day basis was achieved. In terms of equipment improvements, a reduction of 50 tons in CO2 emissions was achieved thanks to the introduction of energy-saving lighting fixtures and a review of the optimal luminance of the distribution center. In operating an automated three-dimensional warehouse, KOKUYO Logitem's Ina Distribution Center adopted an electricity demand meter as part of efforts to reduce peak electricity consumption in response to tight demand-and-supply conditions for electricity. While CO2 emissions increased by 114 tons due to an increased rate of operations in 2014, a net reduction of 24 tons in CO2 emissions was achieved by way of a reduction of 138 tons due to operational improvements and equipment improvements.

Global Warming Preventive Measures at Offices


Solar panels installed at our Shinagawa office

Offices lowered CO2 emissions by 202 tons over the previous fiscal year. To accomplish this, we conducted a review of the methods by which heating and cooling systems were being operated, a review of working styles, promotion of no-overtime days and activity encourages employees to go home early, and reduction of electricity use, such as by replacing lighting fixtures with LEDs. At our Shinagawa office, an electric power visualization system is used to lower electricity use during on-peak hour of daytime through the efficient operation of heating and cooling systems and heat storage tanks. In addition, a program that encourages people to use public transportation for sales activities cut gasoline use by 8%, which represents a reduction in CO2 emissions of 160 tons. In fiscal 2014, the cool biz and warm biz campaigns were combined into a smart biz campaign that is in effect all year long.

Ascertaining GHG emission volumes for the entire supply chain

Emission volumes by scope
Emission volumes by scope

In recent years, a movement to engage in carbon disclosure projects (CDP) and otherwise manage and externally disclose Scope 3 (encompassing production, shipping, business trips, commutation, and other categories) emissions generated through supply chains that indirectly emit GHG has been gaining steam. While the KOKUYO Group has also endeavored to engage in such actions in shipping and certain other areas, initiatives were undertaken beginning in 2014 in accordance with the Ministry of the Environment's Basic Guidelines on Calculating Volumes of Greenhouse Gas Emissions Generated Through Supply Chains. The volume of GHG emissions for the entire supply chain in fiscal year 2014 was 544,430 tons of CO2. Scope 3 emissions accounted for approximately 90 percent of this figure with 70 percent thereof attributed to “Category 1 purchased products and services”. Since data has not yet been fully collected from all cooperating plants, however, this percentage figure is expected to rise. Given that there are also problems relating to other categories, amelioration will proceed beginning next term. Third-party verification services provided by Bureau Veritas Japan have also been secured to ensure the reliability of disclosed information and data.

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