SDG alignment across products Reports alignment with multiple SDGs including 2 (Zero Hunger), 3 (Good Health), 6 (Clean Water), 7 (Affordable & Clean Energy), 8 (Decent Work), 9 (Industry & Innovation), 11 (Sustainable Cities), 12 (Responsible Consumption), 14 (Life Below Water), 15 (Life on Land), 16 (Peace & Justice).
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CDP Climate Change A- score (Supplier Engagement Leader 2024) In FY2024, Shin-Etsu Chemical received a CDP climate change evaluation of A-. Also recognized as Supplier Engagement Leader 2024.
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Hydropower PPA (Gunma Model) + on-site solar + biomass cogeneration 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).
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CCU and tree planting form ~6% + 9% of 2050 reduction wedge In its measures-to-2050 pie, the Group attributes 6% to CO2 recovery/reuse (CCU) and 9% to carbon offsets, plus tree planting. They are researching introduction of carbon capture plants and considering offsets in the later 2040s. The bulk (54% electricity-related, 31% manufacturing improvements) comes from direct reductions rather than removals.
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Dependent: Logistics modal shift (truck/air → rail/sea) Modal shift initiatives include switching methanol transport from tank truck to railcar, silicon wafer transport from aircraft to ocean vessel, and silicone products from truck to railcar. These reduce Scope 3 Category 4 emissions and Naoetsu Plant is certified as an Eco-Rail Mark company.
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Hydro PPA in Gunma + on-site solar + biomass cogen in Thailand Shin-Etsu sources renewable electricity through a 'Gunma Model' local-production PPA covering 100% of the Yokonodaira Plant load (~90% GHG reduction at that plant) and is installing on-site solar (e.g., 1,200 kW at Shin-Etsu Magnetics Philippines yielding ~1,500 MWh/yr and 1,026 tCO2/yr saved; 148 kW at Goubara, 137 kW at Takefu, 155 MWh/yr at Isobe). In Thailand, three group companies will receive biomass cogeneration steam and electricity from NS-OG Energy Solutions starting 2027 under a JCM model project, cutting ~48,000 tCO2/yr.
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Dependent: Products enabling customer decarbonisation ~70% of Group sales fall into Japan's 14 'green growth' priority fields. Silicones reduce GHG emissions by 14x their production emissions over their use life (Global Silicones Council 2024 study, ~159 MtCO2/yr global reduction). PVC-framed windows could cut 640,000 tCO2/yr if rolled out across Japanese detached homes by 2030. PVC pipes have 1/5 the lifecycle CO2 of ductile cast-iron pipes (potential 1.79 MtCO2/yr reduction). Rare-earth magnets enable 5-10% efficiency gains in air-conditioner motors and core EV drive motors.
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Primary: 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.
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Carbon offsets and tree planting as residual measures (~9% of plan) 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.
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Net zero Scope 1+2 by 2050 Stated goal to become carbon neutral by reducing Scope 1 and 2 GHG emissions to net zero by 2050. In FY2023 the Carbon Neutral Task Force formulated a specific plan for achieving carbon neutrality by 2050, which was discussed and unanimously approved at the Managing Directors' Meeting.
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