GHG Reduction Targets for FY2030

In line with the goal set by the Daicel Group of reducing GHG emissions (Scope 1 and 2) by 50% compared to 2018, the Polyplastics Group aims to reduce its GHG emissions intensity per unit of resin (includes CO2 derived from raw materials) by 30% compared to 2018.

FY2024 Performance and Medium-Term Targets

CO2Emissions Reduction

In FY 2024, CO2 emissions increased slightly on a year-on-year basis from an increase in the volume of manufacturing, trial operations conducted at our new plant in Nantong, China (90,000 tons per year), and an increase in the amount of steam and electricity used to deal with plant-related problems. However, the rapid establishment of our new plant in Nantong, which came online in November, brought the rate of steam usage down by 11% over the initial forecast, resulting in lower CO2 emissions than originally expected.
We plan to make large investments for growth toward 2030, and although CO2 emissions are expected to increase as a result, we aim to reduce emissions to the same level as in 2018, the base year. We will do it with thorough energy conservation through production and technological innovation, energy conversion away from fossil fuels, and other measures, as well as significantly reducing emission intensity.

Daicel Group total CO2 emissions (Scope 1, 2)

Medium-Term Target

Industrial Waste Reduction

From 2023 onward, the Daicel Group is using recycling rate as a management indicator.
This fiscal year, our recycling rate rose by 0.2 points over the previous fiscal year to reach 99.0% thanks to the progress made in the sorting of items to be disposed of at the Kuantan plant. We are also continuing to study the feasibility of new ways of recycling waste at each of our plants.
We are striving to further improve our recycling rate.^*

• *Recycling rate = Amount recycled (including salable resources) / Total by-products and waste generated

Recycling rate

Medium-Term Target

Reducing Emissions of Chemical Substances (PRTR^* Substances)

In accordance with the Law for PRTR and Promotion of Chemical Management (PRTR Law), we survey and monitor our annual emissions of the chemical substances covered by the law, and report the results to the government.
In FY 2024, we maintained zero emissions of benzene as we had in the preceding fiscal year. On the other hand, we were unable to sufficiently remove formaldehyde with exhaust-treating scrubbers because of rising water temperatures during the summer, such that PRTR emissions rose slightly over the preceding fiscal year, which unfortunately prevented us from meeting our targets for FY 2024. We will work on reducing emissions of PRTR substances by studying the introduction of an exhaust gas combustion facility while continuing to upgrade our current facilities.

• *Pollutant Release and Transfer Register

PRTR substance emissions (kg)

Medium-Term Target