Initiatives to Achieve Carbon Neutrality

To promote carbon neutrality with regard to Scope 1 and 2 emissions, we have engaged in discussions to determine the feasibility of and priorities in our options for individual initiatives, including the installation of energy-saving facilities, cogeneration systems and solar power generators, a shift to energy procured from renewable energy sources, the replacement of fuel-fired energy with non-fuel energy and the incorporation of hydrogen as an alternative fuel. We have also recognized that achieving carbon neutrality with regard to fuel used to generate steam is an issue requiring particular attention. In line with this recognition, we prepared a plan for utilizing hydrogen.

Based on an assessment of the actual status of energy use at each base, we promoted deliberations with base representatives while distributing videos featuring carbon neutrality topics to raise employee awareness. Currently, the preparation of carbon neutrality scenarios is under way at each base.

In January 2022, our Changshu Factory and Hunan Factory in China shifted all purchased energy to energy procured from renewable energy sources, with an eye to contributing to a carbon-neutral society. Thanks to this move, the volume of CO₂ emissions from tire manufacturing at these two factories in fiscal 2022 is expected to decrease by approximately 70% compared with the fiscal 2021 level.

Furthermore, the Turkey Factory and SRI Engineering Co., Ltd., have similarly shifted to their purchased energy to energy procured from renewable energy sources.

Published in 2011, ISO 50001 is an international standard for energy management systems that supports the systematic and constant improvement of energy use. Within the Sumitomo Rubber Group, the Changshu Factory, China, and Brazil and Turkey factories are certified under ISO 50001.

The Sumitomo Rubber Group has identified a target of reducing its Scope 1 and 2 CO₂ emissions by 55% by 2030 (compared with the 2017 level) and achieving carbon neutrality by 2050. To this end, each base has undertaken the preparation of carbon neutrality scenarios that include the installation of energy-saving facilities, the expansion of cogeneration systems, the introduction of solar power generators, a shift to the procurement of green energy and the adoption of hydrogen as an alternative fuel.

If the reduction of CO₂ emissions progresses in line with these scenarios, we will be able to reduce our CO₂ emissions by 55% in 2029, a year ahead of schedule. To raise awareness among employees, we also launched an intranet website that disseminates informational videos on carbon neutrality. Furthermore, as part of efforts to nurture a keen awareness of the need to protect the Earth’s environment into the future among younger employees, we host roundtable talk events in which new recruits are invited to discuss carbon neutrality.

Other than CO₂, the Sumitomo Rubber Group’s GHG emissions consist of methane, dinitrogen monoxide, fluorocarbons and sulfur hexafluoride.

As for fluorocarbons, we conduct the maintenance and periodic inspection of relevant equipment in accordance with the Act for Rational Use and Proper Management of Fluorocarbons while regularly calculating the volume of activities and leakage. With regard to the mandatory reporting of the calculated amount of leaked fluorocarbons, no applicable incident occurred during fiscal 2022.

In fiscal 2022, we endeavored to shorten transportation distance by, for example, optimizing the location of our production sites and promoting the loading of export products at ports nearest to production sites.

CO₂ emissions from transporting tires decreased 7.7% from the previous fiscal year to 25.0 kt-CO₂e, reflecting a decline in overall cargo weight and shorter transportation distance. The environmental impact indicator fell 2.4%.

In fiscal 2023, we will continue promoting the loading of export products at ports nearest to production sites and optimizing the location of our production sites.

We have identified reducing the burden placed on drivers and providing them with a better working environment as a priority issue that we should address as a shipper in terms of securing a sufficient number of operating vehicles as well as ensuring legal compliance. We are therefore striving to ensure that the process from the moment a truck enters our premises to the completion of cargo loading is completed as quickly as possible.

Accordingly, we have introduced ICT systems, including for notifying drivers of their designated time of entry, while curbing the number of instances where goods are transported between factory warehouses. Through these and other various initiatives, we work to reduce waiting time as well as time taken for loading.

The initiatives discussed above also contribute to the reduction of CO₂ emissions. Looking ahead, we will strive to improve the quality of logistics operations so that we can harmoniously coexist and achieve mutual prosperity with transportation companies.