Tackling Climate Change
The Fifth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC), states that the “warming of the climate system is unequivocal,” and that it is extremely likely that human influence has been the dominant cause of the observed warming since the mid-20th century. Moreover, a new phase of the Paris Agreement - an international framework for tackling climate change - will kick off in 2020, which indicates that the initiatives of individual companies to reduce greenhouse gases are growing increasingly important.
The Kubota Group sees tackling climate change as one item of materiality and has been advancing initiatives toward the “mitigation” of climate change by reducing greenhouse gas emissions mainly through energy-saving activities and the introduction of renewable energy sources and “adaptation” to be prepared for the impact of climate change.
- Activities towards achieving SDGs
- Long-Term Environmental Conservation Targets 2030 and the Results for RY2019
- Medium-Term Environmental Conservation Targets 2020 and the Results for RY2019
- Mitigation of Climate Change
- Adaptation to Climate Change
Activities towards achieving SDGs
|Related SDGs and targets||
|Major Activity Content||
|2030/2020 Activity Targets (KPIs)||
Long-Term Environmental Conservation Targets 2030 and the Results for RY2019
|Goal||Reduce CO2 emissions from the Kubota Group in Japan* by 30% compared to the base year 2014|
|Result||In 2019, CO2 emissions of the Kubota Group in Japan* were reduced by 20.2% compared to the base year 2014|
- CO2 emissions include greenhouse gases from non-energy sources.
Medium-Term Environmental Conservation Targets 2020 and the Results for RY2019
|Actions items||Management Indicators*2||Scope||Base RY||Targets for RY 2020||Results of RY 2019||
|Reduce CO2*1||CO2 emissions per unit of production||Global production sites||2014||-14%||-17.1%||We are promoting the energysaving for production equipment, lighting, air conditioning; fuel conversion; the introduction of renewable energies; and the measures for heat insulation of buildings, etc.|
|Save energy||Energy consumption per unit of production||Global production sites||2014||-10%||-14.3%|
- *1.CO2 emissions include greenhouse gases from non-energy sources. We use the emissions coefficient for electric power of the base year in our calculation of CO2 emissions from energy sources.
- *2.The figures per unit of production represent the intensity of the environmental load per unit of money amount of production. The exchange rate of the base year is used when translating the money amount of production of overseas sites into Japanese yen.
Mitigation of Climate Change
1.CO2 Emissions (Scope 1 and Scope 2)
In RY2019, CO2 emissions were 630 kilotons CO2e, a decrease of 2.6% compared to the previous reporting year. Additionally, CO2 emissions per unit of sales improved by 6.1% compared to the previous reporting year. In addition to the implementation of reduction measures, these are mainly due to the improvement of the emission coefficients for each electricity utility and a reduction in production volume at cast iron production sites in Japan.
Trends in CO2 Emissions and Emissions Per Unit of Sales
- *1.CO2 emissions (630 kilotons CO2e) include portions of CO2 that were not released into the atmosphere but absorbed as carbon into products such as iron pipe (19 kilotons CO2e).
- *2.CO2 emissions include greenhouse gases from non-energy sources.
- *3.CO2 emissions per unit of consolidated net sales. The Kubota Group adopted International Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in the United States of America from RY2018.
- *4.CO2 emissions for RY2016 and RY2017 and CO2 emissions per unit of sales for RY2017 were corrected to improve accuracy.
CO2 Emissions by Region
CO2 Emissions by Business
CO2 Emissions by Emission Source
Trends in Energy Use at Business Sites and Energy Use per Unit of Sales
- *1.PJ=1015J, TJ=1012J
- *2.Energy use per unit of consolidated net sales. The Kubota Group adopted International Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in the United States of America from RY2018.
2. CO2 Emissions during Distribution
In RY2019, CO2 emissions during distribution were 41 kilotons CO2e, a decrease of 6.9% compared to the previous reporting year. Additionally, CO2 emissions during distribution per unit of sales improved by 14.1% compared to the previous reporting year. The Kubota Group continuously promotes various initiatives, including such as improving loading efficiency and realizing a modal shift through the use of ships.
Trends in CO2 Emissions during Distribution and Emissions per Unit of Sales (Japan)
- CO2 emissions during distribution per unit of consolidated net sales. The Kubota Group adopted Inter national Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in the United States of America from RY2018.
Trends in Freight Traffic (Japan)
3. CO2 Emissions throughout the Value Chain
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 its calculation of CO2 emissions.
- Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain issued by the Japanese Ministry of the Environment and Ministry of Economy, Trade and Industry
CO2 Emissions in Each Stage of Value Chain
- *1.The value for RY2017 was corrected to improve accuracy.
- *2.In addition to the data for Japan, CO2 emissions from overseas subsidiaries has been included from RY2019.
- *3.In addition to the data for Japan, CO2 emissions associated with the overseas shipping of certain products from Japan has been included from RY2018.
4. Measures to Reduce CO2 Emissions
The Kubota Group has established its Medium- and Long-Term Environmental Conservation Targets and is devoting efforts to reducing CO2 emissions and energy use associated with its business activities.
We have also established medium-term reduction measure implementation plans, which are reviewed every year by each production site. When the plans are reviewed, Internal Carbon Pricing* is introduced to calculate their effect on reducing CO2 emissions and energy consumption, as well as the investment cost for the amount of CO2 reduced, in the capital expenditure plans. The effectiveness and economical rationality of each project are identified from an environmental standpoint and used as resources for making investment decisions. Some of the specific reduction measures that have been implemented include eliminating loss in energy consumption through a switch to equipment with higher energy efficiency and proper operation management, and promoting the visualization of power consumption in each process. At the same time, all global sites have been expanding their use of LED lighting. In RY2019, initiatives included a change in fuel for production equipment and heaters. We are also accelerating the introduction of renewable energy. In RY2019, a new solar power generation system came online at the Kubota Sakai Rinkai Plant. This brought the renewable energy consumption of the entire Group to 2,604 MWh, an increase of 8.0% compared to RY2018. As a result of the efforts toward achieving the Medium-Term Environmental Conservation Targets 2020 for CO2 reduction, global production sites achieved a reduction of 38.8 kilotons CO2e in RY2019 compared with the case where countermeasures were not implemented from the base year (RY2014). The economic effects of these measures reached 1.14 billion yen compared to RY2014. CO2 emissions per unit of production in RY2019 improved by 17.1% compared to RY2014. We will continue to implement measures to save energy on production equipment and air-conditioning/lighting, as well as promote measures to reduce waste and loss in the use of energy based on the concept of the Kubota Production System (KPS) and expand the use of renewable energy.
- Refers to the placing of an internal monetary value on carbon by an organization
Introducing cogeneration systems
Installation of solar power generation system
Adaptation to Climate Change
Measures to Adapt to Climate Change
Various impacts are being felt by the progression of climate change, such as the frequent occurrence of weather disasters, changes in agricultural practices, and an increase in the number of heat stroke cases. The response to climate change needs to include measures to reduce greenhouse gas emissions, as well as to avoid or reduce damage brought on by climate change.
As part of its strategy to adapt to climate change, the Kubota Group is implementing a number of initiatives at its business sites and in its products and services.
Provision of Water Pump Vehicle for Disaster Recovery
With all the equipment necessary for effective drainage, including a drainage hose, a control panel, and a generator, as well as a lightweight specialized submersible pump that a person can easily carry, the equipment can be dispatched immediately to sites where flooding is in progress due to torrential rains and rapidly drain water from the location.
Initiatives taken at Business Sites
Efforts at our business sites include the formulation of BCPs and disaster response manuals. To be prepared for high tides and torrential rain, the sites have also installed sump pumps, hold emergency drills, and are equipped with water tanks for use during water shortages.
Installation of Weather-Resistant Roofing Material
Kubota Manufacturing of America Corporation (US) installed weather-resistant roofing material (thermoplastic olefin sheets) to improve resistance against torrential downpours and high temperatures.