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.
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.
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.
Initiatives to Introduce Renewable Energy and Maximize Energy Use Efficiency
In 2022, the Otsuka group brought forward its climate change targets from 2030 to 2028, and further revised its SCOPE 1 and 2 targets upward from 30% (compared to 2017) to 50% (compared to 2017). The group is also a member of RE100, an initiative that aims to achieve 100% renewable energy for all electricity used. To achieve this goal, the group is working to maximize the efficiency of energy use throughout the group by supplying highly efficient energy to group companies, such as by introducing CO2-free electricity, utilizing renewable energy through the installation of solar power generation equipment, and through cogeneration systems1. In Japan, we have completed the switch to 100% renewable energy-derived electricity for all electricity purchased from external sources at all 23 factories and offices of five companies in the Group2, and renewable energy now accounts for approximately 61% of the total electricity purchased. In April 2022, four Group companies3 introduced CO2-free electricity in Indonesia, reducing annual emissions by approximately 103,500 t-CO2, or 60% of total emissions in Indonesia. In India, a large-scale solar power generation facility was introduced in June 2022, which is expected to reduce annual CO2 emissions by approximately 14,500 t-CO2.
- 1.A system that uses natural gas, LP gas, etc. as fuel to generate electricity by means of an engine, turbine, fuel cell, etc., and simultaneously recovers the waste heat generated during the process, thereby utilizing heat and electricity without waste.
- 2.Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Chemical, Otsuka Foods
- 3.PT Otsuka Indonesia, PT Amerta Indah Otsuka, PT Widatra Bhakti, PT Lautan Otsuka Chemical
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.
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
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.