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Dealing with Climate Change

Performance

Performance

GHG Emission Results and Initiatives

Fiscal 2022 Reduction Activities

Total Greenhouse Gas Emissions (non-consolidated + main consolidated subsidiaries)

Total greenhouse gas emissions (non-consolidated + main consolidated subsidiaries) for the Group in fiscal 2022 was 10,487 thousand tons. Which was a decrease of 166 thousand tons compared to fiscal 2021.

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Greenhouse Gas Emissions Derived from Energy Sources (non-consolidated)

In fiscal 2022, our non-consolidated greenhouse gas emissions from energy sources were 3,114 thousand tons. It decreased by 43 thousand tons compared to fiscal 2021.

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* Greenhouse gas emissions derived from non-energy sources comes mainly from limestone, which is used as a raw material. As it is difficult to substitute or reduce volumes of limestone, however, our emissions target covers greenhouse gas emissions derived from energy sources, which can be reduced by energy saving initiatives.

Changes in Greenhouse Gas Emissions per Unit (non-consolidated)

Greenhouse gas emissions on a non-consolidated basis were reduced by 70 thousand tons CO2 (1% reduction) compared to fiscal 2021. Emission intensity improved significantly due to the impact of the increase in production volume for each business and the increase in the use of thermal energy alternatives such as waste plastic and recycled oil at cement plants.

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Changes in Energy Consumption per Unit (non-consolidated)

Energy consumption by Mitsubishi Materials decreased 0.2% year on year. In addition, emission intensity improved 4.5% with the impact of the increase in production volume for each business and the increase in the use of thermal energy alternatives at cement plants. Business Operator Classification Evaluation System : S class (S class: improvement of basic unit of 1% or more on average over the past 5 years).

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  • Energy consumption per unit is calculated in accordance with the periodic report guidelines prescribed under Japan’s Act on the Rational Use of Energy (Energy Conservation Act). As the Company’s business is diverse, we identify a “value intimately related to energy use” for each business and use it as the denominator for calculations. We calculate each business’s contribution by multiplying the year-on-year of each business’s energy consumption per unit with that business’s share of the Company’s total energy use. The product is the Company’s total consumption per unit (year-on-year). Greenhouse gas emissions per unit is calculated in the same way.
  • In the periodic report on fiscal 2022 results prescribed under Japan’s Act on the Rational Use of Energy, business locations for our cement business were excluded from the calculations. However, the values in this table were calculated by including such business locations.
  • In the process of the integration of Cement business and related businesses between UBE Corporation (formerly Ube Industries, Ltd.), on April 1, 2022, MMC's Cement business and related businesses were assumed by Mitsubishi UBE Cement Corporation (an equity method affiliate of MMC) through an absorption-type company split.
    Regarding the Aluminum business , on March 31, 2022, we transferred all of our shares of Universal Can Corporation to Showa Aluminum Can Corporation, and on the same day, we split the Aluminum rolling and processing business from Mitsubishi Aluminum Co., Ltd. into Showa Aluminum Can Corporation through an absorption-type company split.
    Information is posted based on the figures as of March 31, 2021.

Breakdown of Total Emissions for Fiscal 2022[Thousand tons CO2 equivalent]

Category Non-consolidated Domestic group companies Overseas group companies Total 
SCOPE1
(direct)
From energy sources
(fuel, etc.)
2,600 542 609 3,751
From non-energy sources From processes 3,681 175 669 4,526
From waste 434 273 28 734
Greenhouse gases other than CO2 21 34 4 58
(Reference)
Total from non-energy sources
4,136 482 701 5,318
Subtotal 6,736 1,024 1,310 9,069
SCOPE2
(indirect)*1
From energy sources
(power, etc.)
514 390 514 1,418
(Reference) Total from energy sources 3,114 932 1,123 5,169
Total 7,250 1,414 1,824 10,487
  • * “Group companies” includes 118 consolidated subsidiaries (54 domestic, 64 overseas).
  • * As emission factors, the adjusted emission factor of power companies was used for power in Japan, the emission factor published by the International Energy Agency (IEA) was used for power in other countries, and values based on the Act on Promotion of Global Warming Countermeasures were used for fuels and steam.
  • * SCOPE2 (Indirect)*1 emissions are market-based emissions. Location-based SCOPE2 emissions are 1,526 thousand t-CO2e.

Scope 3 Emissions for Fiscal 2022[Thousand tons CO2 equivalent]

Item Object Non-consolidated Group Total Approach to determining the amount of activity
Category
1
Purchased products and services Same as organizations covered by environmental data other than greenhouse gas emissions              1,563 3,268 4,830 The use of raw materials accepted from outside the Group (excluding waste as raw materials and by-products as raw materials) in terms of physical quantity
Category
2
Capital goods Same as consolidated financial statements 105 131 237 Capital expenditure in the reportable fiscal year
Category
3
Fuel and energy-related activities that do not fall under Scopes 1 and 2 Same as organizations covered by data on greenhouse gas emissions 525 221 746 Fuel consumption by type and volume of electric power and steam purchased from outside the Group
Category
4
Transportation and distribution (upstream) Same as organizations covered by environmental data other than greenhouse gas emissions              617 1,374 1,992 1) Emissions from the physical distribution of products and services, which were purchased in the reportable fiscal year, from suppliers to the company
・A transportation scenario was set for each major raw material (excluding waste as raw materials and by-products as raw materials).
・Distances between countries were set using the IDEA database on distances between countries, and other distances were set using a distance search site (with distance given by an in-house company in a questionnaire adopted in some cases).
2) Emissions from the physical distribution of products that were shipped and transported in the reportable fiscal year at the expense of the company 
・A transportation scenario was set for each major shipped product. 
・Distances between countries were set using the IDEA database on distances between countries, and other distances were set using a distance search site.
Category
5
Waste generated from operation Same as organizations covered by environmental data other than greenhouse gas emissions              2 8 10 The amount of industrial waste (waste recycled into resources and landfilled waste) was included.
Category
6
Business trip Consolidated 0 3 3 For Mitsubishi Materials (non-consolidated), the number of employees at each base (plants and offices) was used for the calculation. 
However, in consideration of the voluntary restraint on business trips for controlling the spread of COVID-19, travel expenses in the reportable fiscal year were compared with those in a normal fiscal year, and the value obtained by multiplying the number of employees by the ratio of travel expenses in the reportable fiscal year to that in a normal fiscal year was regarded as the value for the amount of activity.
For consolidated subsidiaries, the number of employees of each in-house company from human resources information given in the securities report was used for the calculation.
Category
7
Employee commute Consolidated 2 9 11 For Mitsubishi Materials (non-consolidated), the number of employees at each base (plants and offices) was used for the calculation. 
For the head office and other offices, however, in consideration of the voluntary restraint on going to workplaces to control the spread of COVID-19, the value obtained by multiplying the number of employees by the rate of employees who commuted to work for the reportable fiscal year was regarded as the value for the amount of activity.
For consolidated subsidiaries, the number of employees of each in-house company from human resources information given in the securities report was used for the calculation.
Category
8
Leased assets (upstream) While there are leased assets, they were excluded from the calculation because they are included in Scope 1 and Scope 2.
Category
9
Transportation and distribution (downstream) Same as organizations covered by environmental data other than greenhouse gas emissions              126 289 415 Emissions from physical distribution of products that were shipped and transported to sales destinations at the expense of other companies
Transportation from sales destinations to final consumers was excluded.
Distances between countries were set by using the IDEA database on distances between countries, and other distances were set by using a distance search site (with the distance given by an in-house company in a questionnaire adopted in some cases).
Category
10
Fabrication of sold products  Same as organizations covered by environmental data other than greenhouse gas emissions              215 501 717 For products sold, the value for the amount of products shipped by each in-house company to companies other than group companies was regarded as the value for the amount of activity.
Emissions from processing were calculated by setting the primary processing assumed for each product.
Category
11
Use of sold products Products sold were excluded from the calculation because they are materials and parts that are used by a wide range of users and it is therefore difficult to follow their paths to final products.
Category
12
Disposal of sold products      Same as organizations covered by environmental data other than greenhouse gas emissions              107 241 348 For products sold, the value for the amount of products shipped by each in-house company to companies other than group companies was regarded as the value for the amount of activity.
Emissions from disposal were calculated by setting a disposal method assumed for each product.
Category
13
Leased assets (downstream)  Leased assets were excluded because virtually no such asset is owned. 
Category
14
Franchises Franchising business was excluded because the company does not operate such a business.
Category
15
Investment Investments made in the pure pursuit of profit were excluded from the calculation because no such investment is made.
Total 3,263 6,046 9,309  
  • Raw material procurement, transportation, and product shipment scenarios were set based on FY2020 results.
  • The calculation was made by referring to the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.4 from the Ministry of the Environment and the Ministry of Economy, Trade and Industry. Greenhouse gas emissions per unit was calculated by referring to the emission intensity database for calculating greenhouse gas emissions of an organization through the supply chain (ver. 3.2) from the above ministries.
  • Scope 3 emissions for FY2022 reflect data on Mitsubishi Materials Corporation (including the cement business that has been transferred) and 63 consolidated subsidiaries (excluding the aluminum business that has been transferred) as of March 31, 2022.
  • In the process of the integration of Cement business and related businesses between UBE Corporation (formerly Ube Industries, Ltd.), on April 1, 2022, MMC's Cement business and related businesses were assumed by Mitsubishi UBE Cement Corporation (an equity method affiliate of MMC) through an absorption-type company split.
    Regarding the Aluminum business, on March 31, 2022, we transferred all of our shares of Universal Can Corporation to Showa Aluminum Can Corporation, and on the same day, we split the Aluminum rolling and processing business from Mitsubishi Aluminum Co., Ltd. into Showa Aluminum Can Corporation through an absorption-type company split. The information is based on values as of March 31, 2022.

Principal Initiatives at Each Business

We regard it as a top priority to save energy wherever possible at our manufacturing facilities and plants. That is why we are so committed to energy saving activities. Specific activities include switching fuels, making effective use of untapped energy, upgrading processes and equipment, installing high-efficiency equipment, optimizing device specifications, and reviewing equipment controls and operating practices. We are constantly working to save energy at smaller facilities, too, including Head Office, branches, sales offices and research facilities, through measures such as installing LED lighting.

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Logistics Initiatives

Our CO2 emissions from transportation for fiscal 2022 totaled 18,534 tons for Mitsubishi Materials*1 (up 1,443 tons from the previous fiscal year), and 30,237 tons in total including emissions from group companies*2 (up 981 tons from the previous fiscal year). Meanwhile, energy consumption per unit*3 came to 21.47 kiloliters per million ton-kilometers for Mitsubishi Materials, which was 0.4% better than the previous fiscal year.
We will continue to promote a modal shift with a focus on long-distance transport and optimize logistics throughout the Group in our efforts to build a logistics system with low environmental impact.

CO2 Emissions According to Mode of Transport (Unit: Tons CO2)

  FY2021 FY2022
Mitsubishi Materials Group companies Total Mitsubishi Materials
*1
Group companies
*2
Total
CO2 emissions from logistics Total 17,091 12,165 29,256 18,534 11,703 30,237
Breakdown Road 9,872 5,213 15,086 10,666 4,989 15,655
Ocean 7,170 6,948 14,118 7,809 6,712 14,521
Rail 23 4 27 20 3 23
Air 26 0 26 38 0 38
  • *1 Effective on April 1, 2022, our cement business was succeeded by Mitsubishi UBE Cement Corporation (an equity method affiliate) through absorption-type company split, as a result of integration of cement business, etc. with UBE Corporation (former Ube Industries, Ltd.). Accordingly, the cement business was excluded from data for fiscal 2021 and fiscal 2022.
  • *2 Regarding our aluminum business, effective on March 31, 2022, we transferred all shares in Universal Can Corporation that we held to Showa Aluminum Can Corporation, and effective on the same date, we had the aluminum rolling and extrusion business of Mitsubishi Aluminum Co., Ltd. succeeded by Showa Aluminum Can Corporation through an absorption-type company split.
    Accordingly, the above data for both fiscal 2021 and fiscal 2022 include data for Onahama Smelting and Refining Co., Ltd. and Diasalt Corporation as group companies.
  • *3 Value obtained by converting energy consumption into crude oil (kl) and dividing it by transportation in ton-kilometers (million ton-kilometers)
MMC