CO₂ Emissions Reduction

Management information

Relevance to our business

Global issues such as global warming and climate change are intensifying, seriously impacting people’s lives and business activities. As a food ingredient manufacturer, the Fuji Oil Group uses energy and emits CO₂ in all value chain processes, including our factory operations as well as the procurement and transportation of raw materials.

Basic approach

As a corporate citizen, the Fuji Oil Group seeks not only to create economic value but also to be mindful of the global environment at every stage in our value chain. The Paris Agreement, an international framework that aims to “[hold] the increase in global average temperature to well below 2ºC above pre-industrial levels and [pursue] efforts to limit the temperature increase to 1.5ºC above pre-industrial levels,” requires countries to set targets for reducing greenhouse gas emissions and to “achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century.” In 2021, the Japanese Government decided to aim to achieve at least a 46% reduction (base year: FY2013) in greenhouse gas emissions by FY2030 as a medium-term target, with strong efforts to achieve a 50% reduction. Against this backdrop, the Fuji Oil Group, based on our Basic Policy of Environmental Integrity,^*1 has committed to CO₂ emissions reduction with the announcement of Environmental Vision 2030 in 2018.^*2 By 2030, we aim to reduce Scope 1 and 2 emissions by 40% and Scope 3 (Category 1) emissions by 18% compared to the baseline year of 2016. These targets were approved by the Science Based Targets initiative (SBTi) in May 2020.^*3 We aim to advance CO₂ emissions reduction and achieve these targets through continued efforts to conserve energy, install energy-efficient equipment, and use renewable energy at production sites. To strengthen management of these efforts, in FY2020 we created an energy management department in Japan that is directly overseen by the Group president.

*1 Follow the link below to learn more about the Basic Policy of Environmental Integrity.

https://www.fujioilholdings.com/en/sustainability/policy/basic_policy/
*2 Follow the link below to learn more about the Environmental Vision 2030.

https://www.fujioilholdings.com/en/sustainability/environment/management/
*3 Organizations set science-based targets to reduce their greenhouse gas emissions over a five to 15-year horizon. Targets are considered “science-based” if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.

Management system

The Chief “ESG” Officer (C“ESG”O) oversees initiatives in this area. The ESG Committee,^*1 an advisory body to the board of directors, has been monitoring the progress and results of initiatives as a material ESG issue. ^*2 The ESG Committee reports insights to the board of directors for review.

*1 Follow the link below to learn more about the ESG Committee.

https://www.fujioilholdings.com/en/sustainability/approach/
*2 Follow the link below to learn more about material ESG issues.

https://www.fujioilholdings.com/en/sustainability/materiality/

Goals / Results

2030 targets^*1	FY2020 results^*1	Progress
Scopes 1^2 & 2^3: 40% reduction in total CO₂ emissions (All Group companies)	19% reduction	48%
Scope 3^4 (Category 1^5): 18% reduction in total CO₂ emissions (All Group companies^*6)	6% increase	0%

*Follow the link below to learn more about analysis on results for 2030 targets:

https://www.fujioilholdings.com/en/sustainability/environment/management/
*1 Base year: 2016
*2 Scope 1: Direct emissions of greenhouse gases from our own operations
*3 Scope 2: Indirect emissions from the use of electricity, heat and steam supplied by third parties
*4 Scope 3: Emissions from the activities of non-Group companies in our value chain (Categories 1-15)
*5 Category 1: Raw materials
*6 Excluding Industrial Food Services (Australia)

At least 90% complete At least 60% complete Less than 60% complete

FY2020 Goals	FY2020 Results	Self-assessment
Promote the reduction of CO₂ emissions in an effort to realize Environmental Vision 2030 by providing support and raising awareness at Group companies	Sent FY2019 environmental data (including CO₂ emissions, water use, and waste generation) to Group companies as feedback and facilitated the sharing of best practices between companies Distributed introductory learning materials (on approaches to energy conservation and CO₂ emissions calculation, for example) and held briefings on Environmental Vision 2030 for Group companies (online for companies outside Japan)
Consider the implementation of internal carbon pricing	Performed an initial calculation of the impact of carbon taxes on revenue in 2030 and 2040
Introduce an environmental data collection system	Completed basic design of the system. To be introduced in FY2021
Increase the accuracy of our Scope 3 emissions data and devise measures toward their reduction	Revised the data collection format for Scope 3 emissions. This improved data quality by making the data collection process easier to understand for employees who input data. We will create measures for reducing category 1 emissions in the next fiscal year

Analysis

To realize Environmental Vision 2030, we shared energy conservation ideas and other information with Group companies through online environmental audits. For internal carbon pricing, we completed an initial calculation of the impact of carbon taxes on the Fuji Oil Group based on carbon taxes in various countries and on International Energy Agency (IEA) data. Going forward, we will look at ways to implement an internal price on carbon. For collecting environmental data, we focused on the basic design of a data collection system.

Total annual CO₂ emissions (Scopes 1 & 2) and CO₂ emissions intensity

Next step

Raising awareness of environmental issues at the level of each employee is essential for driving reduction of our CO₂ emissions. To address this issue, we set the following goals for FY2021.

Make sure all employees are familiar with Environmental Vision 2030
Take CO₂ emissions reduction efforts to the next level through environmental audits
Support Group companies in putting together a CO₂ emissions reduction strategy (e.g., introduce data collection systems that make it easier for managers to check their CO₂ data quickly and easily; share best practices, such as solar installation projects, between Group companies)
Start a questionnaire survey of suppliers (supplier engagement) as a Scope 3 (Category 1) emissions reduction initiative

Specific initiatives

Energy management in Japan

To promote effective energy management in Japan, we rebuilt and strengthened our energy management system using the requirements of Japan’s Energy Conservation Act^* as a foundation. These requirements are to establish an energy management system and set action policies and targets.
In April 2020 we organized the Energy Management Department, and in October 2020 we formulated our Energy Management Regulations and launched an Energy Management Committee. Our action targets for Japan are to reduce energy intensity by 1% each year from the previous year (to comply with the Energy Conservation Act) and to achieve the CO₂ emissions reduction targets of Environmental Vision 2030.
The Energy Management Committee is chaired by the president of Fuji Oil Co., Ltd. and the Energy Management Department serves as its secretariat. Committee members organize activities to achieve the targets, with a core member holding legally mandated responsibility. These activities include measuring and visualizing energy use, using our energy management rules, training personnel on energy management, and distributing energy-related information.

* Also titled the Act on the Rational Use of Energy.

Enhancing the energy efficiency of production equipment

Below are examples of the initiatives that we implemented in FY2020 to enhance energy efficiency.

The Hannan Business Operations Complex at Fuji Oil Co., Ltd. (Japan) began operating a new cogeneration system, achieving improved efficiency and balance of electricity and steam. It also began reusing waste heat from cooling processes in oils and fats production (the heat was previously vented to the outside) to create hot water.
Omu Milk Products Co., Ltd. upgraded to a higher-efficiency boiler and changed the type of fuel it uses.
The Chiba Plant at Fuji Oil Co., Ltd. (Japan) and Woodlands Sunny Foods Pte. Ltd. (Singapore) installed solar power generation systems.
Blommer Chocolate Company (U.S.), PT. Freyabadi Indotama (Indonesia), and Harald Indústria e Comércio de Alimentos Ltda (Brazil) raised energy efficiency by switching to LED lighting and installing motion sensors.
Shanghai Xuyang Food Co., Ltd. (China) and Blommer Chocolate Manufacturing (Shanghai) Company Ltd. (China) saved energy by adjusting the start conditions of cooling equipment.

Introducing renewable energy

The Fuji Oil Group is also using renewable energy to realize Environmental Vision 2030. This began in 2016, when the Fuji Oil Tsukuba Research and Development Center installed solar panels. Thereafter, Fuji Oil Europe (Belgium) in June 2019 and Fuji Oil Co., Ltd. Rinku Plant in February 2020 installed solar panels and started generating electricity. In FY2020, Fuji Oil Co., Ltd. Chiba Plant in August and November 2020 and Woodlands Sunny Foods Pte. Ltd. (Singapore) in September 2020 began using new solar power generation systems, meeting a portion of their electricity needs with renewable energy. Blommer Chocolate Company (U.S.) has begun using renewable energy as required by state laws in Pennsylvania, Illinois, and California and purchased a Renewable Energy Certificate (REC).
For offices, the Fuji Oil Holdings Inc. office in Osaka uses power certified as green. Purchasing Green Power Certificates enables us to use solar power generated off-site in Kochi Prefecture, contributing to a CO₂ emissions reduction of approximately 24t-CO₂ in FY2020. We plan to continue using green power in FY2021.

CO2 Emissions Reduction