Preventing Global Warming

Reducing CO2 Emissions and CO2 Emissions Intensity

Status of Scope 1 and Scope 2

Since fiscal 2013, Toyo Tires Group has been working toward the target of reducing Scope 1 and Scope 2* CO2 emissions intensity per unit of production at its production sites in Japan by 15% compared to fiscal 2005 by the end of fiscal 2020.

In FY 2016, the CO2 emissions intensity increased by 2.1% compared to the previous year. In Japan, it has been surpassing the level in FY 2005 due to declining energy efficiency of some older equipment.

Toyo Tire & Rubber decided to install new equipment at Sendai Plant, one of our main plants, to transition from coal and oil to natural gas as an energy source. We began construction in FY 2017.

We plan to start using the equipment in FY 2018 and ramp up the use. This will improve energy efficiency and reduce CO2 emissions, and we expect to lower our CO2 emissions intensity by 15% by the end of FY 2020 compared to FY 2005.

  • * Scope 1: Direct emissions from business operations (e.g. fuel use in plants).
  • * Scope 2: Indirect emissions from energy consumption (e.g. use of purchased electricity).

CO2 emissions intensity per unit of production (Scope 1 and 2) (in Japan)

CO2 emissions intensity per unit of production (Scope 1 and 2) (in Japan)

  • * CO2 emissions calculated by the thermal power unit of production method in accordance with the “Greenhouse Gas Emissions Calculation and Reporting Manual of the Ministries of the Environment and of Economy, Trade and Industry for Rubber Business Operators” published by the Japan Rubber Manufacturers Association.
  • * As the electricity CO2 emission factor, the actual emission factor of power receiving terminal for fiscal 2005 was used; as the denominator, the combined value of new rubber consumption and the amount of materials converted to new rubber at our plants was used.

Trend in CO2 emissions intensity per unit of production (Scope 1 and 2) (in/outside Japan)

Trend in CO2 Intensity per Unit of Production (Scope 1 and 2) (In and Outside Japan)

  • * Data is based on a fiscal year from January to December.

Responding to Scope 3 Emission Control Requirements

Since fiscal 2013, We have been calculating Scope 3* from our tire business towards the goal of reducing CO2 emissions throughout the entire value chain, from the procurement of raw materials to the disposal of products. In FY 2016, Scope 1 and 2 CO2 emissions accounted for 3.9% of our total emissions. It was 96.1% for Scope 3. The area with the most CO2 emissions was Category 11 of Scope 3 (users of the products), accounting for 85.3% of all scopes.

We will focus in particular on the reduction of CO2 emissions from product use, through further popularization and performance upgrading of fuel-efficient tires while working on the improvement of data collection and management accuracy.

  • * Scope 3: Indirect emissions from other activities (e.g., transporting and using our products, employees’ commute and business trips, etc.).

LCA of Tires

LCA (lifecycle assessment) is a method of quantitatively calculating, analyzing and evaluating impacts on the environment throughout a product or service’s entire lifecycle, from procurement of raw materials to discarding and recycling.

To calculate CO2 emissions for the entire lifecycle of tires, Environment Subcommittee and Technical Committee of the Japan Automobile Tyre Manufacturers Association published “Tyre LCCO2 Calculation Guidelines (Ver. 2.0)” in April 2012. These Guidelines have been developed based on the Tyre LCA Calculation Method, which has a track record for use in the Japanese tire and rubber industry, and by referring to standards and systems related to LCA in Japan and abroad (ISO14044, the Japanese Carbon Footprint system, PAS2050, BPX30-323, and GHG protocol).

Tire CO2 emissions calculated in accordance with these Guidelines are as follows.

Greenhouse gas emissions (converted to CO2) over the lifecycle of a tire

[Tires for Passenger Vehicles (PCR)] Calculation was performed for the most popular tire size (195/65R15).

General Purpose Tires (per tire): 300.6 kgCO2e
Fuel Efficient Tires (per tire): 243.9 kgCO2e

[Tires for Passenger Vehicles (PCR)] Calculation was performed for the most popular tire size (195/65R15).

[Tires for Trucks and Buses (TBR)] Calculation was performed for the most popular tire size (275/80R22.5).

General Purpose Tires (per Tire): 2,330.3 kgCO2e
Fuel Efficient Tires (per tire): 1,888.1 kgCO2e

[Tires for Trucks and Buses (TBR)] Calculation was performed for the most popular tire size (275/80R22.5).

  • * Regarding the amount of greenhouse gas emissions during disposal and recycling:
    For PCR, calculation was performed taking into account the emission reduction effects of thermal use (thermal recycling).
    For TBR, as a result of calculation taking into account the emission reduction effects of thermal use (thermal recycling), product reuse (retreading), and material reuse (material recycling), net GHG emissions became negative.
  • * Source: The Japan Automobile Tyre Manufacturers Association, Inc.

Promoting Energy-Saving Activities

Our new corporate headquarters with solar panels on the roof top. (Itami, Hyogo Prefecture)Our new corporate headquarters with solar panels on the roof top. (Itami, Hyogo Pref.)

We are pursuing Group-wide concerted energy-saving efforts to achieve the target of reducing energy consumption per unit of production by an average of at least 1% per year, from the medium- and long-term perspective. In FY 2016, our energy consumption went down by 1.2%, but our energy intensity went up by 3.7% due to declining energy efficiency of some equipment.

In FY 2017, we continue to reduce our energy consumption. At our plants, we are reducing energy loss by switching to LED lighting, installing more efficient equipment, and minimizing air and steam leakage. At offices in site of our plants, we are utilizing renewable energy from solar panels. In our administrative offices, we are taking small but effective steps to conserve energy by using an optimal temperature for air conditioning and having casual dress codes not to require excessive air conditioning.

Major energy-saving activities at our plants

  • Replacing mercury and fluorescent lights with LED lights.
  • Replacing high-efficiency transformers.
  • Improving the motor control of hydraulic tire vulcanizing machine.
  • Improve efficiency by installing boilers.
  • Installing demand monitoring systems.
  • Reducing the loss by leaking of steam, air, and or nitrogen gas.
  • Evaluating and replacing the insulation for heaters.

Major energy-saving activities at R&D and administrative offices

  • Introducing solar power generation systems.
  • Setting upper and lower temperature limits for air conditioning and turning off air conditioners where unnecessary.
  • Removing lights where unnecessary and turning off lights (including during lunch breaks).
  • Frequently turning off office equipment and lowering the brightness of PC monitors.
  • Implementing Cool-Biz and Warm-Biz activities (having casual dress codes not to require excessive air conditioning).
  • Introducing circulators.
  • Encouraging the use of stairs instead of elevators.
  • Thorough implementation of No Overtime Day.

Energy-Saving Efforts in Logistics

In our logistics, of course, we have been promoting energy-saving activities with the goal of reducing transportation energy consumption per unit of weight transported by an average of at least 1% per year, from the medium- and long-term perspective.

In FY 2016, we continued to switch our freight method from trucks to boats and railroad containers. However, the output level increased by 6.9% due to more long distance freights and less consolidated shipments by logistics companies. We were able to reduce the average output level for the past five years by 2.7%. We will continue to make our logistics operation better for the environment.

Major energy-saving activities in logistics

  • Promoting a modal shift from truck to ship and rail container transportation.
  • For the transportation of shipments from overseas, reducing the land transportation distance within Japan by sending goods to ports nearest their respective destinations.
  • Reducing the transportation distance by delivering products directly to customers instead of passing through a warehouse.
  • Joint transportation through the use of trucks on return journeys from customers.
  • Improving the loading efficiency of long-distance truck transportation by using relay points.
  • Promotion of energy-saving through the use of fuel-efficient tires.

ACTION FOR CSR