The Fifth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC), states that the 'warming of the climate system is unequivocal' and there is an extremely high possibility that the impact of human activities is one of the contributing factors. Additionally, the "Paris Agreement" was entered into force in November 2016 and the world's movement toward the reduction of greenhouse gas has been increasingly activated. The Kubota Group is engaged in initiatives to reduce CO2, placing a focus on energy-saving activities in order to prevent global warming.
In RY2016, CO2 emissions were 647 kilotons CO2e, a decrease of 3.9% compared to the previous reporting year. Additionally, CO2 emissions per unit of sales improved by 0.6% compared to the previous reporting year. The decrease in CO2 emissions is mainly due to the reduction of production volume at cast iron production sites in Japan. We are continuously promoting the energy-saving initiatives for production equipment, lighting, etc., fuel conversion, and various other measures.
*1 CO2 emissions for RY1990 are the emissions from energy sources at only Kubota production sites.
*2 CO2 emissions (647 kilotons CO2e) include portions of CO2 that were not released into the atmosphere but absorbed as carbon into products such as iron pipe (24 kilotons CO2e).
*3 CO2 emissions after RY2012 include greenhouse gases from non-energy sources.
*4 CO2 emissions per unit of consolidated net sales.
*1 PJ = 1015J
*2 Energy use per unit of consolidated net sales.
We at SIAM KUBOTA Corporation Co., Ltd. Amata Nakorn Plant (Thailand) worked on reduction of the energy consumption in the painting lines.
The conventional pre-paint treatment solution required heating up to 45 to 50°C. For this temperature control, our plant had to operate four boilers, which consumed approx. 60% of the natural gas used at the entire plant.
We therefore started research and development in cooperation with the manufacturer in 2011 to enable room-temperature management of the pre-paint treatment solution. The switchover to the pre-paint treatment solution available at room temperature started in 2012 for part of the painting lines, and completed by the end of 2015 for all the painting lines.
As a result, operation of the four boilers became unnecessary, and we succeeded in substantial reduction of the use of natural gas in 2016. For this achievement, we received in November 2014 the Prime Minister's Industry Award from the prime minister of Thailand and the Thailand Energy Award from the Department of Alternative Energy Development and Efficiency, Ministry of Energy. We will make continued efforts to further reduce the energy consumption.
In RY2016, CO2 emissions during distribution were 42 kilotons CO2e, a decrease of 5.2% compared to the previous reporting year. Additionally, CO2 emissions during distribution per unit of sales improved by 2.0% compared to the previous reporting year. The decrease in CO2 emissions during distribution is mainly due to the reduction in the volume of freight traffic. We are continuously promoting various approaches such as improving loading efficiency by combining transportation and realizing a modal shift through the use of ships.
* CO2 emissions during distribution per unit of consolidated net sales.
* From KUBOTA REPORT 2017, we combined the volume of freight traffic of transportation by rail and water.
The Kubota Group makes concerted efforts to figure out CO2 emissions throughout the value chain in addition to its business sites. Following guidelines*, we calculate CO2 emissions based on Scope 3, and continue to expand the categories in the Scope of our calculation of CO2 emissions.
* Basic guidelines for calculating greenhouse gas emissions in supply chains issued by the Japanese Ministry of the Environment and Ministry of Economy, Trade and Industry.
|Classification||Scope of calculation||CO2 emissions
|Emissions of the Kubota Group's business sites||Direct emissions
|Use of fossil fuels||306|
|Non-energy-related greenhouse gas emissions||7|
|Purchased electricity use||334|
|Upstream and downstream emissions||Other indirect emissions
|Resource extraction, transportation and manufacturing related to purchased goods, etc.||2061|
|Extraction and production of capital goods such as equipment||219|
|Extraction, production and transportation of fuels for generation of purchased electricity||25|
|Disposal of wastes discharged from business sites||16|
|Employee business travels||9|
|Transportation of products and wastes||42|
|Processing of sold products||65|
|Use of sold products||18440|
|End-of-life transportation and treatment of sold products||38|