Response to Climate Change

Approach to Climate Change

Today, it is believed that the effects of climate change are unavoidable. To this end, mitigation procedures and response measures are necessary. In the knowledge that it is part of an energy-intensive industry, the AGC Group is working to reduce greenhouse gas emissions over its entire lifecycle—from procurement through production, sales and logistics, use and disposal—and is promoting various initiatives as an enterprise making contributions to a sustainable society.

In addition, while the Group is conscious of the risk which climate change poses to its business activities and is continuously formulating appropriate measures for the risk, it also sees the situation as a business opportunity. As such, it is actively working to expand its sales and development of environmental productsOpen New Window that can contribute to the resolution of climate change issues.

Responding to Climate Change

Although measures to mitigate the effects of climate change are being taken across the globe, it is almost certain that some effects will remain. Accordingly, the AGC Group has advanced a variety of initiatives towards the prevention and mitigation of damage resulting from climate change. Also, the Group develops and provides multiple products that contribute to society’s ability to adapt to climate change.

For example, the Group has formulated a worldwide business continuity plan (BCP) to reduce the impact of natural disasters caused by climate change on the Group's business activities. The AGC Group has conducted a survey on water-related risks due to the unavoidable effects of climate change, particularly in sites that are prone to heavy rains, floods or tsunamis. These sites are being evaluated and an action plan is being formulated from BCP’s perspective.

Furthermore, the Group continues to develop and sell products that minimize damage in the event of a natural disaster. One such product is safety glass, which has proven effective in times of natural disasters. Moving forward, the Group hopes to make it more available to consumers.

2015 Energy-Related Material Balance (AGC Group)

2015 Energy-Related Material Balance (AGC Group)

  • (Note 1) Because the AGC Group’s disclosed data for greenhouse gas emissions (the following diagram, etc.) includes partial Scope 3 data, it differs from the values for Scope 1 + 2.
  • (Note 2) 2014 figures

Total Energy Consumption (Left) • Greenhouse Gas Emissions (Right)

Total Energy Consumption • Greenhouse Gas Emissions

(Note) Due to rounding, the percentage sum for each item does not necessarily amount to 100%.

Greenhouse Gas Emission Trends (AGC Asahi Glass)

Greenhouse Gas Emission Trends (AGC Asahi Glass)

Mitigating Climate Change (Initiatives in the Manufacturing Process)

The AGC Group has set a target value of 1.3 as measured by the AGC Environmental Indicator for greenhouse gas emissions and is promoting energy conservation initiatives in its manufacturing processes. Specifically, it is promoting the introduction of cogeneration systems, the improvement of production processes through fuel conversion, total oxygen combustion and other methods, utility-related energy conservation assessments, and other initiatives. The AGC Environmental Indicator for greenhouse gas emissions in 2015 deteriorated by 0.2 from the previous year, for a total of 2.0.

At present, in order to respond to rising infrastructure demands in Asian regions, the AGC Group is increasing the production capacity of its local glass and chemicals businesses in the regions. In order to fulfill its social responsibility in business operations, the Group promotes measures to simultaneously realize expanded production and a reduced environmental load.

Furthermore, third parties verified the emission volume of CO2 from production process energy usage at a number of Group companies.

Trends in Energy-Related Data in Production Processes (AGC Group)

Input 2014 2015
Electricity used (million MWh) 8.23 7.90
Fuel used (PJ) 77 68
Output 2014 2015
GHG Emissions: Scope 1 (million t-CO2) 5.32 4.93
GHG Emissions: Scope 2 (million t-CO2) 4.67 4.43
CO2 Emissions: Scope 1+2 (million t-CO2) 9.90 9.36

Reducing Greenhouse Gases Besides CO2

The AGC Group manufactures and sells products that emit greenhouse gases besides CO2, including fluorinated gases such as HFCs and SF6. Because the Global Warming Potential (GWP) of these fluorocarbons can range from 124 to 22,800 times that of CO2, they can be regarded as serious contributors to climate change. In this context, the Group is actively working to reduce the fluorocarbon emissions generated by its manufacturing processes. In addition, in order to contribute to reducing the greenhouse gas emissions of society as a whole, the Group is working to develop and popularize low GWP refrigerants, and has implemented initiatives to recover, break down and recycle fluorinated gases for its customers since fiscal 1997.

Emission of Greenhouse Gases Other than CO2 (AGC Group)
FY Greenhouse gases other than CO2
2013 90,000 tons-CO2
2014 90,000 tons-CO2
2015 110,000 tons-CO2

Initiatives in Non-manufacturing Process (Office, Logistics)

The AGC Group also promotes energy conservation in its non-manufacturing divisions, including business and sales.

In specific terms, the Group is working to reduce the environmental load of its buildings, including office buildings. It has set the target of a 25% reduction (compares to 2011) in energy use per unit area by 2015 at its major offices in Japan, North America and Europe, and has promoted various initiatives. In 2011, AGC Asahi Glass implemented energy conservation measures upon moving its headquarters location, and continues to develop new measures to that end. In addition, in 2013, AGC Glass Europe moved into a new office building with an environmentally conscious design. This resulted in an energy reduction of 31% in 2015 as compared to 2011.

In addition, since the AGC Group manufactures and sells energy-saving architectural glass and other products that contribute to the reduction of greenhouse gas emissions over their entire lifecycle, in order to promote the spread of these products and to foster an environment in which all of society works together to reduce greenhouse gas emissions, the Group conducts educational activities. The AGC Group sets its office energy conservation targets in order to take the lead in building-related energy conservation.

In the area of logistics, the Group is proactively working to implement modal shifts to railways and ships in each region and is working to conserve energy by switching to highly energy-efficient large trucks and ships.

Reduction in office energy use per unit area

Reduction in office energy use per unit area

(Note) Applies to major office buildings in Japan, Europe and North America

Scope 3 Greenhouse Gas Emissions (AGC Group)

  Scope 3
FY 2013 (million t-CO2) 6.91
FY 2014 (million t-CO2) 7.09

(Note) Scope 3 calculations are performed for the following categories (items): Purchased goods and services; capital goods; fuel and energy-related activities not included in Scopes 1 or 2; upstream transportation and distribution; waste generated in operations; business travel; employee commuting; use of sold products; end-of-life treatment of sold products; and investments.

AGC Glass Europe

Reducing Environmental Impact by Switching to Railway Logistics

AGC Glass Europe (AGEU) has successfully reduced its environmental impact by switching shipments of sand and soda ash from truck to rail. Specifically, it upgraded a railway bridge to meet regulations and built a rail loop and unloading station at its Boussois Plant in France, enabling deliveries to be made by rail from February 2014. Before that, numerous trucks had been contracted for deliveries each day. The main goal of the project was to reduce environmental load by improving the efficiency of logistical flow and switching to rail transport, which emits less CO2 on average than transport by trucks.

By switching to rail, AGEU has dramatically decreased the impact on the environment due to transportation. Sand and soda ash previously transported by over 4,000 truck deliveries annually were handled by only 77 train deliveries, effectively reducing CO2 emissions by about 250 tons. Furthermore, fewer fine dust particles were emitted by the plant, and surrounding roads became safer and less damaged because of the significant drop in truck traffic. In recognition of this initiative, the Boussois Plant received an environmental performance award in France in 2014. The project also attracted media coverage in the country, including a video produced

specifically for the awardOpen New Window.

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