NOF Corporation

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.

In Phase 2 of the carbon neutral roadmap, NOF is working on conversion to renewable energy sources, including considering the introduction of Internal Carbon Pricing (ICP), electrifying non-electrified facilities, converting energy sources by reviewing production processes, and introducing electricity certified to come from non-fossil fuel sources. NiGK Corporation has installed solar panels in Kawagoe. Head Office purchases electricity certified to come from non-fossil fuel sources.

Nippon Koki Co., Ltd. owns approximately 149 hectares of forest in Fukushima Prefecture and has been certified under the Fukushima Prefecture Carbon Dioxide Absorption by Forest Maintenance Activities Certification System as having absorbed 282 tons of CO2 (2012-2013). NOF METAL COATINGS ASIA PACIFIC supports forest maintenance on about 10 hectares under the Kanagawa Forest Restoration 50-Year Project, with forests absorbing about 247 tons of CO2 over five years.

• Energy conservation and high-efficiency equipment upgrades

  Phase 1 focused on horizontal rollout of existing energy conservation through waste heat recovery, energy conservation improvement activities, and upgrading to high-efficiency equipment. Ongoing updates to high-efficiency boilers, promoting electrification of vacuum generators that utilize steam, and shifting from heavy oil boiler fuel to lower-impact alternatives.

• Process electrification and CFC regulatory control

  Promoting electrification of vacuum generators that previously utilized steam. Introducing equipment using natural refrigerants to address regulatory control of CFCs. Investments in energy conservation and efficiency improvement of manufacturing facilities to reduce CO2 emissions.

• PFC emissions reduction at Aichi Works

  At the Aichi Works, NOF manufactures products using perfluorocarbon (PFC), which has high global warming coefficient, as diluent for organic peroxides. In fiscal 2023, PFC emissions decreased approximately 37% from fiscal 2022 due to facility improvements (from 12.0 to 7.5 thousand tons CO2). Going forward, aim to reduce emissions through maintaining steady operation of recovery equipment and promoting use of alternative diluent.

• Energy conservation and high-efficiency equipment (Phase 1)

  Phase 1 focuses on horizontal rollout of existing energy conservation through waste heat recovery and other energy conservation improvement activities, upgrading to high-efficiency equipment, and the introduction of solar power generation at the Daishi Plant. Strategic investment of ¥2.1 billion has been allocated to environmental response in the 2025 Mid-term Management Plan. Promoting electrification of vacuum generators that utilize steam, shifting boiler fuel to lower environmental impact options, and ongoing updates to high-efficiency boilers.

• PRTR substances emissions reduction

  NOF set a KPI of reducing emissions of PRTR Act-controlled substances to 170 tons or less each year. Examining manufacturing methods that do not use PRTR Act-controlled substances, adopting alternative substances and environmentally friendly manufacturing methods, and optimizing operating conditions of recovery equipment to improve emission recovery rates. FY2023 emissions were 167 tons.

• Modal shift and joint deliveries in logistics

  Promoting modal shifts and joint deliveries to reduce greenhouse gas emissions from transportation. The Oita site implements modal shifting. Safety data sheets and GHS labels manage hazard information for safe delivery with low environmental impact.

• Sustainable raw materials and biomass procurement

  Promoting initiatives for a sustainable society including production of raw materials for chemicals made from biomass. Switching from petrochemical-based raw materials to plant-based raw materials, utilization of biomass chemicals, and carbon recycling (solvent recycling). RSPO-certified oil purchase ratio reached ~13% in fiscal 2023, double the previous year.

• Products contributing to environment (EVs, wind/solar, biodegradable lubricants)

  Developing products that contribute to climate change mitigation and adaptation: anti-corrosive coatings for EV components and wind power blades, biodegradable lubricants for ships and offshore wind, organic peroxides for cross-linked polyethylene used in high-voltage wires from renewable generation, base materials for refrigerating oils (alternative CFCs). Market scale for these opportunities is rated Large.

• Products contributing to EV transition and renewables

  Developing products for electric vehicles (anti-corrosive coatings for bolts, lubricants for electronic units, anti-fog agents for LED headlamps, resin additives for noise reduction) and wind/solar power generation (anti-corrosive coatings for bolts, biodegradable lubricants for gear oil, organic peroxides for cross-linked polyethylene for high-voltage wires). Expected market scale Large for EVs. These avoided/enabled emissions support customer decarbonisation.

• Sustainable raw materials and RSPO-certified oil

  Continue to give consideration to the sustainability of raw materials procured. The purchase ratio of RSPO-certified oil in fiscal 2023 was about 13%, about double that of fiscal 2022. As customers' understanding of RSPO certification grows, NOF will continue aiming to increase the ratio of certified oil. Also switching from petrochemical-based raw materials to plant-based raw materials, utilizing biomass chemicals, and exploring carbon recycling (solvent recycling).