In response to the ever-more serious issue of global warming, momentum is increasing around the world for realizing carbon neutrality that would eliminate all greenhouse gas (GHG) emissions by 2050 in order to keep the global temperature increase to within 1.5 °C of pre-industrial levels.
The signing of the 2015 Paris Agreement sparked rising interest in climate change around the world at the national and governmental levels. As a result, stakeholders also have heightened expectations toward the roles companies should play and the initiatives they should invest in regarding climate change.
Against this backdrop, in February 2021 the AGC Group set forth its long-term goals for 2050 of aiming to achieve net zero GHG emissions resulting from its business activities and contributing to the realization of net zero carbon emissions globally by leveraging its products and technologies.
The Sustainability Committee focuses its discussion on climate change as a particularly important issue (materiality) concerning sustainability and proactively examines policies to guide the AGC Group’s business activities in a low-carbon and decarbonized direction.
Regarding the impact of climate change, an important factor in formulating management and business strategies, the AGC Group has identified and evaluated risks and opportunities that could materialize, while keeping in mind that the world is likely to change significantly, to achieve the target of net zero carbon emissions by 2050
Specific Examples of Climate Change Risks and Opportunities
|Policies, laws, and regulations||Cost increases due to carbon pricing, such as a carbon tax, and other expanded regulations on GHG emissions|
|Technology||Increased costs to realize the transition to low-carbon technology, such as establishment of manufacturing methods that do not require fossil fuels|
|Markets||Decrease in demand for existing products due to changes in consumer preferences|
|Physical risks||Short-term||Effects on operations and logistics due to natural disasters such as heavy rainfall, floods, and droughts|
|Long-term||Effects on operations and logistics due to inundations caused by long-term rising sea levels, greater frequency of storms, and typhoons stemming from an average global temperature increase|
|Heatstroke in hot workplaces during the summer due to the rise in average global temperature|
|Opportunities||Resource efficiency||Cost reductions through more efficient use of mineral and water resources|
|Diversification of raw material options by utilizing recycled resources such as glass cullet and recovered fluorite|
|Products||Development and sales promotion of products that contribute to the alleviation of and adaptation to climate change, such as low-E double-glazing glass, alternative fluorocarbons with low global warming potential, and ion exchange membranes that contribute to the production of drinking water and water reuse|
|Markets||Access to new markets leveraging the strengths of the Group's technologies|
In its new Medium-Term Management Plan, which started in 2021, the AGC Group introduced sustainability targets for the creation of social value, an important issue for the Group. Established in a wide range of domains where the Group can harness its strengths, these sustainability targets serve as a fulcrum for further promoting sustainability management that balances the continuous development of societies and the world with the continuous development of the Group. Based on our belief that the reduction of GHG emissions is an issue of particular importance for the promotion of sustainability management, we have formulated targets for 2030 in the following four domains.
Reduction of GHG emissions from our business activities (Scope 1 + Scope 2)
- Total GHG emissions: Reduce by 30% compared with 2019
- Total GHG emissions per unit of sales: Reduce by 50% compared with 2019
Reduction of GHG emissions generated from our supply business activities
- Expand diverse examples of collaborative projects with major suppliers
Products and technologies contributing to reducing GHG emissions
- Popularize and expand range of products and technologies contributing to the achievement of net zero carbon emissions
Business models contributing to reducing GHG emissions
- Expand diverse practical examples that leverage business assets
The Group is making concerted efforts to strengthen initiatives aimed at ensuring their achievement while examining raising the targets and implementing concrete measures for them.
Specifically, we have embarked on efforts that include formulating an action plan to achieve the targets by 2030 and developing key technologies for reducing GHG emissions. Meanwhile, to analyze the risks and opportunities associated with climate change in more detail, we implemented a scenario analysis utilizing the Task Force on Climate-related Financial Disclosures framework.
The results confirmed that the impact of carbon pricing—one of our major risk items—would be particularly significant. Accordingly, we have proceeded with the formulation of long-term targets aimed at reducing GHG emissions (announced in February 2021), the establishment of emission reduction targets in each business division, the development of production technologies and processes, the exploration and trial of carbon capture and utilization technology, the introduction of internal carbon pricing, and the promotion of low-carbon investment by incorporating climate change risk investment benchmarks.
Contribution Through Products
Energy-Saving Architectural Glass
▶ Energy-saving products: Addressing global warming
Ecology glass (Low-E Double-Glazing Glass)
Energy-saving glass with excellent heat insulation and thermal shielding that raises the efficiency of heating and air-conditioning Helps improve the energy efficiency of buildings and reduces CO2 emissions generated through the use of heating and air-conditioning
Energy-saving glass for renovations
PairPlus™High-performance Low-E double-glazing glass for use in renovations Madomado™Double-glazing window (enhanced window functionality by adding another pane of glass to the interior while maintaining the existing sash and glass) ATTOCH™Site-fabricated Low-E glass for retrofitting
Vacuum-insulating glass that balances* outstanding heat-insulating properties with a slimline profile (total thickness of 6.7 mm and up) by vacuum sealing two panes of glass
Equivalent to an approximately 4 mm-thick triple glass pane with argon gas and developed in collaboration with Panasonic Corporation
Solar Power Generation System
SUNJOULE™—Light-collecting, solar power generation module
▶ Energy-saving product: Response to global warming
Solar power generation system using a light-collecting, large-scale module primarily composed of laminated glass
▶ Energy-saving product: Response to global warming
Cool verre™—Energy-saving glass for automobiles
UV Verre Premium Cool on™
UV Verre Premium Privashield™
F-CLEAN™—Fluoropolymer film for use in greenhouses
A fluoropolymer film replete with functions needed for greenhouses (including anti-dripping and ultraviolet ray blocking properties) that helps limit plastic waste due to its long life span and combines high light transmittance and weather resistance