Sumitomo Chemical Formulates Grand Design to Achieve Carbon Neutrality by 2050
-Setting a New Goal of Reducing Greenhouse Gas Emissions by 50% by FY2030 and Laying Out Major Initiatives Toward Carbon Neutrality-

Dec. 10, 2021

Sumitomo Chemical has formulated a grand design to achieve carbon neutrality by 2050, setting out a direction for its initiatives and goals for its activities. The Sumitomo Chemical Group^*1 commits itself to reducing its greenhouse gas emissions by 50% by FY2030, compared to the level of emissions in FY2013, and to achieving carbon neutrality by 2050. Having raised its emissions reduction target by FY2030 to 50%, on December 10, 2021, Sumitomo Chemical once again received certification from the Science Based Targets (SBT) ^*2 initiative for this new target as meeting the standard of “well-below 2°C.”^*3 To achieve this newly certified target and carbon neutrality, Sumitomo Chemical will accelerate reductions in greenhouse gas emissions by approaching the issue from the perspectives of both obligations and contributions, implementing initiatives that are built on scientific, logical and quantitative foundations and leveraging the expertise and technological capabilities the Company has developed as a diversified chemical company.

1. Direction for the Sumitomo Chemical Group’s Initiatives to Achieve Carbon Neutrality

2. Major Initiatives to Achieve Carbon Neutrality
(1) The Sumitomo Chemical Group’s obligation to bring its own greenhouse gas emissions close to zero

In 2018, Sumitomo Chemical became the first diversified chemical company in the world to have its emissions reduction targets certified by the SBT initiative, and now it has once again received that certification, significantly increasing its emissions reduction target for FY2030 to meet the “well-below 2°C” standard. The Company will implement initiatives based on scientific, logical and quantitative perspectives to achieve this newly certified target, a reduction in its Scope 1 and Scope 2 emissions by 50% by FY2030. As achieving this target calls for making full use of the best available technology, in addition to taking thoroughgoing energy-saving measures, Sumitomo Chemical has now begun implementing a variety of initiatives, including building liquid natural gas (LNG) power generation facilities at its Ehime Works and deploying highly-efficient gas turbine energy generation equipment at its Chiba Works. The Sumitomo Chemical Group aims to achieve its goal of halving emissions by FY2030 by making full use of the Group’s capabilities, with a primary focus on its own direct greenhouse gas emissions. In addition, the Group will pursue a further increase in its emissions reduction target, with a view to having its target certified by the SBT initiative as meeting the standard of a “1.5°C pathway.”

The Sumitomo Chemical Group considers that it would be extremely difficult to meet its target for 2050 only by using existing technologies, and that innovation will be essential. Going forward, the Group will lead and advance a variety of initiatives to develop innovative technologies for carbon capture and utilization (CCU) ^*5 and carbon negative solutions, as well as to deploy those technologies in society, in order to achieve carbon neutrality by 2050.

(2) The Sumitomo Chemical Group’s contributions through its products and technologies to reducing global greenhouse gas emissions

The Sumitomo Chemical Group, in collaboration with a broad range of stakeholders, will strive to deploy products and technologies that contribute to reducing greenhouse gas emissions in society as quickly as possible. Specifically, the Group will take a multifaceted approach only possible for a diversified chemical company, which comprises three elements:

Approach 1: Supplying products and solutions that contribute to carbon neutrality
[Specific initiatives]
i. Providing manufacturing technologies and products that contribute to reducing greenhouse gas emissions
・ Promoting the licensing of proprietary technologies for manufacturing chemical products that lead to emissions reduction (such as the propylene oxide-only process that does not produce any byproducts and consumes less energy
・Supplying innovative products that contribute to emissions reduction (such as materials used in lithium-ion secondary batteries
・Designating those technologies and products as “Sumika Sustainable Solutions”^*6 to promote their deployment and sale
ii. Evaluating the carbon footprints of products
・After establishing rules for evaluating carbon footprints and building a proprietary calculation system, Sumitomo Chemical will complete carbon footprint evaluations for all its products by the end of December, 2021.
・ In addition to actively disclosing the results of its carbon footprint evaluations for its products to its stakeholders, Sumitomo Chemical will also make its proprietary carbon footprint calculation system freely available, contributing to promoting reductions in greenhouse gas emissions.

Approach 2: In collaboration with various partners, accelerating the development of products and technologies that contribute to carbon neutrality, and leading efforts to promote their rapid deployment in society
[Specific initiatives]
i. Building a circular carbon economy in collaboration with a variety of partners
・ Sumitomo Chemical will develop material recycling and chemical recycling technologies for plastics, and promote their deployment in society.
・ Sumitomo Chemical will drive initiatives to build a circular carbon economy, such as Meguri™, its new brand for recycled plastics.
ii. Developing innovative manufacturing process technologies that will lead to reductions in greenhouse gas emissions, and promoting their rapid deployment in society
・Sumitomo Chemical will develop technologies such as membrane separation systems and wastewater treatment systems, and deploy them in society

Approach 3: Taking on long-term challenges, such as the development of carbon negative technologies
[Specific initiatives]
i. Developing carbon negative technologies
・Sumitomo Chemical will work to develop carbon negative technologies such as soil carbon storage technology using agricultural materials.
ii. Developing CCU technologies
・ Sumitomo Chemical will work to develop CCU technologies such as an alcohol manufacturing technology using CO₂ and syngas.

3. Initiatives toward a Circular Economy for Plastics

The Sumitomo Chemical Group commits itself to increasing the amount of recycled plastic resources used in its manufacturing processes to 200 thousand metric tons per year by FY2030.
The Group will work to advance plastic resource recycling in society by promoting plastic products manufactured using material or chemical recycling technologies under its new brand Meguri™, while also partnering with businesses and industries engaged in processing and recycling used products, in order to contribute to a circular carbon economy.

The Sumitomo Chemical Group expects to invest about 200 billion yen by FY2030 in its initiatives to achieve carbon neutrality. From FY2013 to today, the Company has already made decisions with respect to about 80 billion yen of investments in areas such as energy-saving measures and fuel conversions that will lead to reduced greenhouse gas emissions. Going forward, to achieve its goal for FY2030, the Company aims to make additional investments
totaling around 120 billion yen not only in reducing greenhouse gas emissions, but also in new businesses that will contribute to achieving carbon neutrality, including chemical recycling.

The Sumitomo Chemical Group has put forward contributing to the advancement of human society through its business activities as one of the pillars of its Business Philosophy. Going forward, the Group will continue to strive as one to resolve major issues in society, including the achievement of carbon neutrality by 2050.

*1: Referring to Sumitomo Chemical Co., Ltd. and its consolidated subsidiaries in and outside Japan
*2: Science based targets refers to high-level targets for greenhouse gas emission reductions set by companies
based on climate science in order to achieve the goals set out in the Paris Agreement
*3: Referring to the globally-shared long-term goal set out in the Paris Agreement, a goal of holding the increase in the global average temperature to less than 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels
*4: Scope 1: Greenhouse gases directly emitted by plants, such as in the use of fuels and in manufacturing products
Scope 2: Greenhouse gases emitted indirectly, such as through the purchase of electric power or steam from outside the company’s plants
*5: The collection and effective use of CO2 emitted from plants and other facilities
*6: An initiative launched in 2016 in which Sumitomo Chemical, based on evaluations by outside experts, designates those Group products and technologies that contribute throughout their lifecycles to responding to global warming or reducing environment impact, in order to promote their development and spread. As of November 2021, 57 products and technologies have been designated as Sumika Sustainable Solutions.

 

Contact

Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/