Carbon Neutrality

SUMITOMO RUBBER INDUSTRIES TOP > Sustainability > Environment > Carbon Neutrality
  • E ●
  • S -
  • G -

The Sumitomo Rubber Group’s Basic Perspective on Carbon Neutrality

  • The Sumitomo Rubber Group

If greenhouse gas (GHG) emissions from the Sumitomo Rubber Group’s business activities further exacerbate climate change, we believe what will be affected most in our business activities are rubber, raw materials for tires; and water, used in the process of manufacturing products. Based on this recognition, we understand that the elements of our priority issues, “climate change,” “resource circulation,” and “biological resources,” are interrelated with each other, and thus, need to be addressed through an integrated approach, rather than being addressed independently, and have moved forward with an integrated approach to these elements.
Climate change, primarily global warming, is a challenge common to all humankind. To pass on a better global environment to the next generations, we need to resolve the challenge. To realize sustainable growth of the Sumitomo Rubber Group as well as a sustainable environment and society, we believe it is an essential part of our social responsibilities that we reduce the generation and emission of CO2, a cause of global warming.

Management

  • The Sumitomo Rubber Group

Establishment and Operation of Carbon Neutrality Subcommittee

In order to promote carbon neutrality initiatives globally, we have established a Carbon Neutrality Subcommittee under the Sustainability Promotion Committee, and have assigned carbon neutrality promotion staff to all manufacturing sites, including overseas sites. This subcommittee holds meetings every six months to a year, depending on the situation at each base, to share information on the progress of carbon neutrality initiatives in Scope 1, 2, and 3 and the efforts being made at each base. We also share the latest information, such as examples of other companies introducing new technologies, to promote the implementation plans at each base.

Disclosure Based on TCFD Recommendations

In June 2021, the Company declared support for the TCFD recommendations. Concerning both risks and opportunities that climate change poses to our business, we have moved forward with information disclosure based on the following four basic elements: governance, strategy, risk management, targets and indicators. Going forward, we will make analyses using the 1.5°C scenario to update disclosure information.

Acquisition of SBT Certification

The Company received a certification for its GHG emissions reduction targets for 2030 from Science Based Targets Initiatives (SBTi) based on the recognition that our reduction targets are consistent with scientific knowledge.
GHG emissions reduction targets certified this time are as shown on the right.

Classification 2030 targets
Scope 1, Scope 2
55% reduction (compared to 2017 levels)
Scope 3
 Category 1: 25%% reduction (compared to 2021 levels)

Commitment to RE100

The Company announced its support of RE100, an international environmental initiative consisting of corporations striving to achieve a 100% switchover to renewable energy.
As part of our goal to achieve carbon neutrality in Scope 1 and Scope 2 by 2050, we have committed to using 100% renewable energy for our business operations, and will continue to strengthen our sustainability initiatives.

Risks and Opportunities

  • The Sumitomo Rubber Group

For information on our Risks and Opportunities, please check the following:

Targets and Results

  • The Sumitomo Rubber Group

Carbon Neutrality Targets

The Sumitomo Rubber Group has set a goal to achieve Scope 1 and 2 carbon neutrality by 2050 and developed scenarios for reducing CO2 emissions based on the actual energy consumption at each site. Specifically, we have raised the emissions reduction target in our Long-Term Sustainability Policy: “Driving Our Future Challenge 2050” from initially set “50% reduction by 2030 (compared to 2017 levels)” to “55% reduction.” To this end, we are making proactive efforts at each of our sites.
Further, in 2023, we also set a Scope 3 emissions reduction target for 2030. (Categories 1, 4, 11, and 12)

Carbon Neutrality Targets and Results for Scope 1 and 2

In fiscal 2023, to reduce Scope 1 and 2 emissions, we continued to work on the installation of energy-saving facilities, the expansion of cogeneration systems, the introduction of solar power generators, and a shift to green energy procured from renewable energy sources. As a result, we reduced CO2 emissions from our production activities at factories in Japan and overseas by 27% compared to the 2017 level.
We recognize that achieving carbon neutrality with regard to fuel that generates steam is an issue requiring particular attention in reducing Scope 1 emissions. With the aim of establishing and developing technologies for the use of hydrogen and other fuels, from 2030 onwards, industry, academia, and government will work together to develop practical applications for decarbonization, including fuel conversion to hydrogen and other fuels, while keeping a close eye on infrastructure development or technological innovation trends.

Carbon Neutrality Targets and Results for Scope 1 and 2

Scope 3 Initiatives

Approximately 90% of the greenhouse gas (GHG) emissions from our entire supply chain are from sources other than our own (i.e. Scope 3), making the reduction of Scope 3 emissions our current challenge. We focus on reducing emissions in categories 1, 4, 11, and 12, which have high emissions within Scope 3.

Scope 3 Initiatives
Material Development
and Procurement
Production
Production
Logistics
Logistics
Sales and Usage
Sales and Usage
Recovery and Recycling
Recovery and Recycling
  • Utilizing sustainable materials
  • Strengthening of supplier engagement
  • Use of renewable energy
  • Promotion of energy-saving facilities
  • Promotion of modal shift
  • Optimization of logistic system
  • Reduction of tiresʼ rolling resistance
  • Longer tire life
  • Lightweight tires
  • Increased production capacity of retreading tires
  • Lightweight tires
  • Use of sustainable raw materials

Each process mentioned above corresponds to the Scope 3 category in the greenhouse gas (GHG) protocol as shown below.

Process
Material Development and Procurement
Material Development and Procurement
Logistics
Logistics
Sales and Usage
Sales and Usage
Recovery and Recycling
Recovery and Recycling
Scope 3 Category in GHG Protocol
Category 1

(Purchased goods/services)
Category 4

(Upstream transportation and distribution)
Category 11

(Use of sold products)
Category 12

(End-of-life treatment of sold products)

Main Targets for Each Category

Category 1: Material Development and Procurement

We will strengthen supplier engagement through measures such as holding supplier briefings and obtaining primary data from suppliers. We will also promote green procurement and effective use of sustainable raw materials, aiming to reduce CO2 emissions by 25% in 2030 compared to 2021 levels.

Category 4: Logistics

After interviewing logistics companies about decarbonization measures, we will examine and implement transportation methods that emit less CO2, load export products at the port nearest the production factories, and reduce transfers between warehouses (reducing transportation weight), aiming to reduce CO2 emissions by 10% in 2030 compared to 2021 levels.

Category 11: Sales and Usage

Approximately 90% of CO2 emissions over the life cycle of tires occur when fuel is combusted during vehicle operation (indirect use-phase emissions). We contribute to reducing CO2 emissions by reducing rolling resistance of tires and improving fuel efficiency.

Category 12: Recovery and Recycling

We will work to reduce CO2 emissions by promoting a circular economy throughout the Group's business activities, including extending the lives of tires, expanding the production capacity of retread tires, and promoting their use.

Example of our Achievements in Initiatives

· Initiatives in Domestic Logistics (Tires)

In fiscal 2023, we focused on reducing transportation distances by optimizing production locations and loading exports at the port nearest the production plant, among other measures. The CO2 emissions from tire transportation decreased by 6.1% year-on-year to 23 kt CO2 as a result of a decrease in transport weight and a reduction in transport distance. On the other hand, the emission intensity increased by 1.2% as a result of increased shipment in lighter loads, stemming from decreased production volume or other factors.

Related Information

Financial and Non-Financial Data

Initiatives Toward Carbon Neutrality

  • The Sumitomo Rubber Group

Realized Carbon-Neutral Manufacturing of Tires

From August 2021 to March 2024, at our main tire factory, the Shirakawa Factory in Fukushima Prefecture, we conducted a verification test for utilizing hydrogen, which is expected to be a next-generation energy source. This project was supported by a subsidy program of the New Energy and Industrial Technology Development Organization (NEDO). Besides introducing hydrogen energy, we installed solar panels in the employee parking lot, and in January 2023, we began mass production (Scope 1 and 2) of the carbon-neutral tires using hydrogen energy and solar power for the first time in Japan*1.

*1 Based on Sumitomo Rubber Industries’ own research (as of January 2023)

Hydrogen boiler

Hydrogen boiler

Hydrogen receiving facility

Hydrogen receiving facility

Solar panels

Solar panels

Initiative to Utilize Hydrogen Energy at Shirakawa Factory—Introduction of Hydrogen Producing Equipment

To decarbonize fuel, we conducted a verification test for utilizing hydrogen at our Shirakawa Factory. This project was subsidized by the New Energy and Industrial Development Organization (NEDO) as one of its grant projects.
The aim of this project is to supply steam produced by hydrogen-fired boilers to the curing process of our leadingedge NEO-T01 Manufacturing System, which employs a high-precision metal core and enables the production of tires boasting extremely high performance with a compact, streamlined process. Currently, we procure hydrogen within Fukushima Prefecture. In the future, however, we will take steps to produce hydrogen within the factory, using the Power-to-Gas (P2G) systems that produce hydrogen using electricity derived from renewable energy sources. This project, subsidized by NEDO and supplied with small-scale packaged P2G systems developed jointly by the Yamanashi prefectural government and a private-sector firm, will commence operations in April 2025.
This will enable us to produce hydrogen in-house.

Initiative to Utilize Hydrogen Energy at Shirakawa Factory—Introduction of Hydrogen Producing Equipment

Increasing Volume of Energy Procured from Renewable Energy

In 2022, we switched to renewable energy at two Chinese factories (Changshu and Hunan) in January, and then at another Chinese factory (Zhongshan), some domestic affiliates, and the Turkey factory. In 2023, we are planning to also switch to renewable energy at our Brazil Factory, Kobe Head Office, Tokyo Head Office (office building only), Thailand Factory, and Indonesia Factory. Furthermore, the Thailand Factory is planning to implement a cogeneration system and install the world's largest rooftop solar power generation system.

Sample image of the solar power generation system at the Thailand Factory
Sample image of the solar power generation system at the Thailand Factory

Enhancing Internal Information Dissemination

We are implementing environmental awareness-raising activities to deepen the understanding of each employee regarding environmental issues and to encourage them to actively participate in environmental conservation initiatives. In 2022, as a company-wide initiative, we set up Carbon Neutral Hub on the Sumitomo Rubber website, where we provide information on our initiatives for carbon neutrality and environmental information in video format. Furthermore, as a way of raising awareness among younger employees and getting them to think about the global environment of the future, we hold roundtable discussions on carbon neutrality for new employees.

An internal intranet site created based on the results of a survey conducted among new employees in 2021
An internal intranet site created based on the results of a survey conducted among new employees in 2021