Shin-Etsu Chemical

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Shin-Etsu participates in Gunma Prefecture's 'Local production for local consumption PPA' (Gunma Model), receiving hydroelectric power that will cover all electricity used at the Yokonodaira Plant and cut its GHG by ~90%. Installed solar panels at Goubara (148 kW), Isobe (new in July 2023, 155 MWh/year), Takefu (137 kW, 125 MWh/year) and Shin-Etsu Magnetics Philippines (~1,200 kW, ~1,500 MWh/year, -1,026 tCO2/year). In Thailand, three Group companies will receive biomass cogeneration renewable energy from NSET starting 2027 under the JCM Model Project (~48,000 tCO2/year reduction).

The Group's 2050 carbon-neutral mix shows carbon offsets at ~9% and CO2 recovery/reuse (CCU) at ~6%, with the remainder from electricity decarbonisation (54%) and manufacturing improvements (31%). Specific measures listed include tree planting and carbon offsets, plus a planned carbon capture plant. Removals are positioned as a last-resort, post-2040 lever rather than the primary route.

• Electricity decarbonisation (Scope 2 — 54% of reduction plan)

  The largest decarb lever, accounting for ~54% of planned reductions, is purchasing hydroelectric and low-carbon electricity (e.g., Gunma PPA covers 100% of Yokonodaira Plant electricity, cutting that site's GHG by ~90%), installing solar PV at multiple plants, and transition of electric power companies to carbon neutral.

• Process efficiency and energy-saving in manufacturing

  Continuous productivity improvement, reaction efficiency improvement, heat pump utilization, heat recovery in raw material production, high-efficiency equipment, increased use of charcoal reducing agents, and transition to new manufacturing processes. New silicone intermediate manufacturing method introduced in 2023 cut energy by 48% and GHG by 47% vs. previous method.

• CCU and carbon capture deployment

  Introduction of carbon capture plant and utilization (CCU) is targeted for the 2030–2050 phase, contributing ~6% of the carbon-neutral plan. The Naoetsu Plant is investigating advanced technologies for waste heat recovery and CO2 recovery.

• Fuel switching to natural gas, CN gas, hydrogen, biomass, ammonia

  Switching from heavy fuels to natural gas, then to carbon-neutral natural gas (with emission credits), green/blue hydrogen, biomass fuel, and ammonia. Cogeneration systems using natural gas at Gunma Complex (2 new gas turbines at Isobe + 1 at Matsuida added Nov 2022, saving ~24,000 tCO2/year and achieving 100% self-sufficiency) and Naoetsu Plant.

• Logistics modal shift (Scope 3 Cat 4 + 9)

  Modal shift from road/air to rail/ship for methanol, silicon wafers, and silicone products; acquired Eco-Rail Mark company certification. Started recycling product shipping cartons for heat-dissipating silicone grease, eliminating need for dry ice and reducing supply chain CO2.

• Resource recycling — PVC, rare earth magnets, and other products

  Material recycling of PVC (60% of used PVC pipes/joints recycled into new pipes, 70% of agricultural film into flooring). Rare earth magnet recycling since 2007 from internal scrap and since 2013 from end-of-life appliances and hybrid cars, including a partnership with Toyota Motor Corporation to recycle neodymium and dysprosium from HEV motors. Shintech achieved +Vantage Vinyl Silver certification supporting U.S. vinyl industry recycling.