Response to Climate Change

The Daicel Group 's greenhouse gas (GHG) reduction targets have been approved by the Science Based Targets (SBT) initiative.^*1​

To achieve carbon neutrality, we formulated a medium-term target in 2021: "50% reduction in GHG emissions by 2030 (based on 2018 levels)."

On April 2026, the Daicel Group's greenhouse gas (GHG) emission reduction targets, which update our previous targets, were validated by the Science Based Targets initiative (SBTi). 

Going forward, the Daicel Group will continue to promote initiatives to reduce GHG emissions with a value-chain-wide perspective while striving to balance responses to climate change with sustainable business growth. Through these efforts, we aim to enhance corporate trust and contribute to the creation of a sustainable society.

In July 2023, we changed the name of the Energy Strategy Committee to the Carbon Neutral Strategy Committee in order to further accelerate carbon neutral initiatives.

The Energy Strategy Committee is under the direct oversight of the President and CEO. The Energy Strategy Committee is chaired by the officer in charge of the Production Management Headquarters (the General Manager of the Production Management Headquarters), and members include representatives from production, energy supply, and other corporate divisions in Japan. The committee will take the lead in promoting and managing energy conservation for the Group as a whole. At the same time, to achieve our GHG emission reduction targets, the entire Group will promote the building of a circular process that reduces emissions in current production processes and energy use, as well as through the use of innovate technologies.

With the aim of achieving our Medium- and Long-term Reduction Target and in order to propose and carry out appropriate investment plans, we launched an internal carbon pricing (ICP) system in April 2025.

Going forward, we will respond to the emissions trading scheme that will be implemented from FY2027/3, and by participating in GX Future Consortium, ​GX Future League (Japanese Text Only)and promoting reduction initiatives and investment decisions in an integrated manner, we will further strengthen our efforts to reduce GHG emissions.

In FY2026/3, GHG emissions (Scope 1, Scope 2) for the Daicel Group decreased by 17 ten thousand t-CO₂e from the previous fiscal year to 214 ten thousand t-CO₂e (down 7.4% year-on-year). This is broken down into 145 ten thousand t-CO₂e (down 5.2% year-on-year) in GHG emissions at Daicel’s business sites, 14 ten thousand t-CO₂e (down 28.2% year-on-year) in GHG emissions at domestic Group companies and 54 ten thousand t-CO₂e (down 6.4% year-on-year) in GHG emissions at overseas Group companies.
In order to ensure the reliability of the contents of the report, a third party^* regularly vouches for our calculations concerning GHG emissions (Scope 1, Scope 2).
In addition, energy consumption has a major impact on GHG emissions. In FY2026/3, energy consumption for the Daicel Group was the same as FY2025/3, 831 thousand kL in crude-oil equivalent.

In addition, in FY2024/3, we established an issue-specific subcommittee, the Life Cycle Assessment (LCA) Subcommittee, within the Sustainable Management Committee. Utilizing LCA methodology, we calculate the carbon footprint (CFP) of each product and work toward its reduction. Quantitatively visualizing the environmental impact can help us reduce the environmental impact of existing products and develop new environmentally friendly materials and other products.

To meet the requirements associated with the approval of the Daicel Group’s GHG emissions reduction targets by the Science Based Targets initiative (SBTi), we plan to disclose GHG emissions data from FY2027/3 onward in accordance with the GHG Protocol. The Scope 3 disclosure will be expanded to cover all categories, and the scope of data calculation boundary for each category will be aligned to cover the entire Daicel Group. 

Based on the Ministry of the Environment and METI’s Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.8), we used the guideline’s Emissions Unit Values Database for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.6), AIST-IDEA, for life cycle analysis, and emission factors in the calculation, reporting, and publication system for the Law Concerning the Promotion of the Measures to Cope with Global Warming, etc.

The Daicel Group is striving to curb energy consumption associated with product transportation through initiatives that include promoting a modal shift^*1 and container round use.^*2 In FY2026/3, the amount of energy used for logistics was 5.4 thousand kL, an increase of 9.7% from the previous fiscal year.

In 2007, Daicel Logistics Service switched from road to sea transport between the main ports for imports and exports and Daicel’s plants in order to reduce CO₂ emissions generated from logistics. In addition, we have reduced the transportation distance and CO₂ emissions by changing the ports for exports to ports located near our plants. In FY2026/3, we reduced CO2 emissions to 74% of those for land transportation through modal shifts, including the use of about 6,600 containers^* per year for marine transportation._​​

Reusing imported goods containers for exporting products can reduce CO₂ emissions associated with the transport of empty containers. Daicel Logistics Service Co., Ltd. has adopted the round use method for containers for export and import operations to further reduce CO₂ emissions. This also saves energy by realizing smooth, efficient transport based on its proprietary system for facilitating the matching process for each shipping company. In addition, we strive to ensure safe and efficient transport by reviewing the standards for container use and implementing simple repairs as needed.

The Daicel Group has responded to climate change through the building of a circular process, which will enable us to run our business in harmony with the global environment from the three aspects of reductions in GHG emissions: reductions in GHG emissions in current production processes, innovative technology, and the energy supply divisions.

Energy consumption by the Himeji Production Sector and Ohtake Plant accounts for 90% of overall consumption at Daicel’s business sites. We treat these as if they were a single factory in cyberspace (a virtual factory^*) and centrally manage information related to their manufacturing processes. Furthermore, optimal operation, considering quality, cost, and the environment, is achieved through an autonomous production system, which has been advanced by artificial intelligence (AI) developed in joint research with the University of Tokyo based on the Intellectual and Integrated Production System constructed through DAICEL Production Innovation. We have been steadily implementing this technology in our key acetyl chain plants.

In FY2026/3, we are sequentially launching initiatives for multiple organic synthesis plants, starting with peracetic acid derivatives. We plan to expand these efforts to major plants across the company during the next Mid-term Management Strategy period (until FY2031/3), aiming to reduce GHG emissions.

In order to manage our energy consumption in accordance with the optimal manufacturing plan, we have introduced the Energy Operation Optimization System, which provides online monitoring and controls for the most favorable operating conditions based on actual operating conditions and simulations. This system is used by the Himeji Production Sector and Ohtake Plant.

As part of optimizing energy supply and demand, the Ohtake Plant started sending excess generated electricity to other worksites in West Japan using the self-consignment system. Furthermore, the plant began sending electricity to the Arai Plant in East Japan in May 2020, to the Fuji Plant in April 2021, and to the Kameoka Plant of Daicel Beyond Ltd. in April 2026. We expect to further extend the system to other Group companies toward achieving zero purchased electricity at the Group level.

The Daicel Group looks well beyond efforts to improve and refine its technologies when putting in place energy-saving measures. It also works to comprehensively review its production processes and develop new technologies to reduce its GHG emissions. The R&D costs for environmental load reduction in FY2026/3 were ¥1,037 million.

In general, distillation processes tend to account for around 40% of general energy consumption in the chemicals industry. This is also true for Daicel’s operations, so establishing energy-saving technologies in distillation processes is key to achieving significant energy savings. The distillation process utilizes high-temperature thermal energy but also generates large volumes of low-temperature exhaust heat energy that is released unused. With this in mind, it is essential to also develop technology that effectively recovers and reuses low-temperature exhaust heat energy in addition to reducing high-temperature thermal energy use.

The Daicel Group has launched an innovative energy-saving technology project and has been promoting cross-sectional activities throughout every level of the Company. As a result, these efforts have led to the creation of a modified Petlyuk process and vapor recompression (VRC) technology to reduce the energy consumption of distillation towers. Although these basic technologies have been used in industrial processes for a long time, they have not been scaled up for use in large chemical plants, with Daicel being the first in the world to do so.

Moreover, we are engaged in joint research with several universities to establish the technology for melting wood under mild conditions (which requires less energy) for constructing new biomass product trees that hold the key to a carbon-neutral future. In addition to implementing measures to reduce CO₂ emissions in the manufacturing process, Daicel is developing technology that uses nanodiamonds to convert CO₂ into CO for reuse, with the aim of further reducing CO₂ emissions that would otherwise be released into the atmosphere.

Petlyuk distillation, and its practical application as a dividing-wall column (DWC), is widely recognized as an energy-saving technology. However, implementing a DWC requires the complete replacement of distillation towers since it cannot be retrofitted to existing facilities, resulting in massive amounts of initial expenditures for the installation. By refining Petlyuk technology, Daicel developed a new process technology that allows for its application through improvements to distillation towers. Since 2014, the technology has been applied at the Arai Plant’s acetic anhydride manufacturing facilities. We are also considering introducing this technology to other plants in order to achieve carbon neutrality.

Expectations are mounting that VRC technology will become ubiquitous to recover heat as high-temperature steam by compressing the exhaust heat inherent in low-temperature steam. While this technology has been widely used in aqueous-system simple distillation processes, there have been no examples of its application in organic solvent distillation processes. Aiming to do just this, Daicel has been working with a compressor manufacturer to develop a compressor that would enable the use of VRC technology in organic solvent distillation processes. We have completed verification using a prototype distillation process, and we are currently continuing verification through long-term operations. We are also considering horizontal deployment to other facilities.

The evaporation process in distillation consumes massive amounts of energy. Dramatic energy savings, however, are possible if a membrane separation technology is used instead. We are developing membrane separation technology through industry-academia collaborations and are currently conducting demonstration experiments at the Aboshi Plant.

We developed an innovative process, which leverages a newly developed reaction technology with a new catalyst. It has been installed at the Aboshi Plant’s 1,3-BG facility. Energy consumption is reduced by approximately 20% compared to that of conventional technologies.

Carbon dioxide becomes a supercritical fluid under sufficiently high temperature and pressure conditions. In this state, it exhibits both solvating power like an organic solvent and high diffusivity like a gas. By utilizing supercritical carbon dioxide in existing production facilities, we expect to eliminate the use of organic solvents and reduce steam consumption in solvent-recovery operations. We are currently conducting validation experiments to evaluate these potential benefits.

High-efficiency aerobic wastewater treatment technology improves  improves oxygen utilization efficiency, enabling the treatment of high-strength wastewater with lower energy consumption than conventional activated sludge processes. It is expected to downsize the wastewater treatment facilities and lower electricity consumption per unit of BOD removed. We are planning a demonstration trial at the plants to evaluate its performance and practical applicability.

Microfluidic devices are devices that enable chemical operations, such as blending, reacting, and distilling, on a micro scale. Parallelizing 10,000 or more microfluid devices allows manufacturing methods that have been established through research to be expanded into mass production, and at the same time, one can adjust the amount produced to save space, conserve energy, and save resources, as well as to produce the amount required as needed. This technology will help make sustainable next-generation production plants a reality. We introduced a demonstration facility for resist polymer manufacturing by the end of FY2026/3, and started pilot production in FY2027/3.

Each of the Daicel Group’s plants generates its own steam and electricity for manufacturing, and we will also seek further energy conservation and reductions in GHG emissions by upgrading their facilities, promoting fuel conversion for boilers and procuring green energy such as renewables.

In Japan, roughly 100 million scrap tires, or about one million tonnes, are generated each year, placing a considerable load on the environment. On the other hand, about 30% of scrap tires consist of biomass, including natural rubber, making them a superb energy fuel. Having noticed this characteristic, we carry out thermal recycling at the Ohtake Plant with co-firing of coal and scrap tire chips. The addition of scrap tire chips can reduce the use of fossil fuels and CO₂ emissions, so we have been collaborating with manufacturers of power generation equipment, making progress in the improvement of the co-firing rate with scrap tire chips and developing technologies to generate the necessary level of power safely. These efforts have yielded some success.

Moreover, we are promoting recycling through the use of particulates and cinders in cement and roadbed improvement agents, which account for about 61% of the total volume of generated waste and the sorting and collection of plastic waste.

In FY2026/3, we sought to improve the quality control of scrap tire chips used as boiler fuel and achieved a co-firing rate of 63% and a fossil fuel usage rate of 36%. Going forward, we will continue to reinforce our recycling efforts to bring about a sustainable society.

We are also actively utilizing renewable energy sources, such as the introduction of solar power generation systems, at Daicel Group production sites. In FY2026/3, the self-generated power from the photovoltaic systems installed at Daicel Safety Systems (Jiangsu) Co., Ltd., Daicel Safety Systems India Pvt. Ltd., Daicel Safety Systems Europe Sp. z o. o., Daicel Safety Systems (Thailand) Co., Ltd. and Daicel Chiral Technologies (India) Pvt. Ltd. totaled 2,441 MWh.

As part of efforts to help achieve a sustainable society, we have begun introducing renewable energy at the Fuji Plant. Beginning in FY2027/3, we will use a Virtual PowerPurchase Agreement (VPPA)^* to cover nearly 10% of annual power needs at the plant. This initiative is expected to reduce CO₂ emissions by approximately 5,000 tonnes per year. We aim to gradually introduce it with a view to 2030, promoting efforts to reduce our environmental impact and improve corporate value.