TOYO recognizes that protection of the global environment and prevention of global warming are common issues for all humankind. We conduct business activities as our mission “Engineering for Sustainable Growth of the Global Community” and under the slogan “environmentally-friendly society” which is one of our materialities. In November 2021, TOYO expressed its agreement for the recommendations of the Financial Stability Board (FSB)’s Task Force on Climate-related Financial Disclosures (TCFD), and based on these proposals, TOYO has established the strategies and promoted initiatives.
Governance
We recognize responding to sustainability-related issues as an important management issue in terms of not only avoiding risks but also gaining business opportunities, and—to improve our corporate value in the medium to long term—we have formulated a Sustainability Basic Policy to describe our initiatives aimed at sustainability, and we are building sustainability-related systems supervised by our Board of Directors.
Our climate change measures are also planned, promoted, and monitored by the Sustainability Committee, an advisory committee to the Executive Committee, and our basic policies and important matters are discussed and formulated by the Board of Directors after deliberation and reporting by the Executive Committee.
See "Corporate Governance"
Risk management
Based on our Basic Policy of the Internal Control System, TOYO identifies the events of potential risks, including changes in the business environment, clarifies the processes for classifying, analyzing, assessing, and responding to risks, and the divisions in charge and related regulations, develops and implements risks management system.
In order to identify and mitigate potential risks as quickly as possible, we periodically review and identify key risk items and implement risk management. Regarding identification and assessment of climate change-related issues, we comply with the framework recommended by the TCFD, and analyzes important factors affecting our business through scenario analysis and reflects in the medium-term management plans and other strategies.
See "Risk management and Security"
Strategy
In line with the TCFD recommendations, the report is based mainly on (1) the 2.6°C scenario* (Stated Policies Scenario (STEPS) and (2) the 1.5°C scenario* (Net Zero Emissions by 2050 Scenario (NZE)). “Transition risks” refers mainly to the risks that may occur in course towards the decarbonization society (1.5°C scenario), and “physical risks” refers to the risks that would take place in the emissions reduction failure (2.6°C scenario).
* Refer to World Energy Outlook 2021 of the International Energy Agency (IEA)
2050 Scenario
Major risks and opportunities
Risks, Opportunities, and Strategies in Major Business Fields
Specific Initiatives
Promotion—including co-creation partnerships—of EPC, non-EPC (pre/post-EPC, technological development, and business development), and value chain construction, especially in the fields listed below:
- Carbon-free fuels (ammonia and hydrogen fuels, decarbonized power-generation fuels, and synthetic fuels (e-fuels, SAF, and synthetic methane))
- Green petrochemicals and CCU (g-Methanol™, green/blue ammonia, CO2-derived petrochemical raw materials/fuel, and heating furnace fuel conversion/electrification)
- Renewable power generation and geothermal power generation
- CO2 capture (DAC, CCS, and BECCS)
- Energy savings and more efficient resource use (HERO/ SUPERHIDIC™)
- Renewable/recycling (waste plastic recycling and urban mines/biomining)
We have incorporated the above scenario analyses in our Medium-term Management Plan (2021–2025) strategies.
See "Solution" for specific examplesSee "Medium-term Management Plan 2021-2025"
Metrics and Targets
TOYO has set the following targets to reduce GHG emissions.
- Scope 1 & 2 (targets)
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- Achievement net zero emissions by 2050
- Reduce emissions 30% by 2030 compared to 2021 (based on GHG emissions per employee)*
- New technology research center
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TOYO is building a new technology research center in Chiba and plans to start running it in April of 2024. The center will use solar energy generated by the solar panels installed on its roof. The new center will research and develop technology that includes fuel ammonia, which is expected to help achieve carbon neutrality, as well as green methanol that can be produced with almost no GHG emissions.
- Scope 3 (targets)
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- TOYO will cooperate with its stakeholders to provide new technology, products, and solutions, thereby contributing to the reduced GHG emissions of the plants the Group delivers.
Assurance Report
We have obtained third-party certification of emissions in 2023 by SOCOTEC Certification Japan.
Examples of specific initiatives
Energy-saving/
renewable energy field
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SUPERHIDIC™
(Currently operating) We have delivered basic design documents for the second unit of the SUPERHIDIC™ energy-saving distillation system, which is attracting attention for achieving the worldʼs first commercialization of internal heat exchange distillation tower technology. Studies of further units are underway. In all cases, a roughly 50% reduction in GHG emissions compared to normal distillation towers can be expected.
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Biomass-fired power generation
(Result) In Japan since 2017, we have received orders for 12 biomass-fired power generation plants with total output of about 650 MW, of which five plants with total output of about 250 MW have been completed. The remaining seven plants, with total output of about 400 MW, are under construction and are scheduled for completion in 2024 to 2025.
Next-generation energy field
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Green ammonia production in
Indonesia (Feasibility study) By introducing renewable energy-derived hydrogen for a portion of the fuel of existing ammonia plants, we aim to produce green ammonia and reduce GHG emissions. -
SAF
(Demonstrated) Compared to conventional aviation fuel, SAF has a GHG reduction effect of about 50 to 90%. In 2021, we supplied domestically produced SAF derived from woody biomass for use in commercial flights, a worldʼs first. We are also studying the production of SAF from alcohol raw materials, renewable energy-based hydrogen, and recovered CO2, and will work toward its social implementation in the late 2020s.
Chemical plant field
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Practical application of ammonia
fuel for a naphtha cracker (Under development) By converting naphtha cracking reactor fuel, which accounts for about 90% of ethylene plant CO2 emissions, from conventional methane to ammonia, we aim to reduce CO2 generated from combustion (about 1.3 tons of CO2 per ton of ethylene production) to zero. We plan to begin demonstration operation of a test reactor in FY2026, with the aim of social implementation of an ammonia-only commercial reactor in FY2030 . -
g-Methanol™
(Business under development) g-Methanol™ is a technology for producing e-methanol from renewable energy source-derived hydrogen and CO2. The e-methanol produced is gaining attention for use as a ship fuel, and is expected to yield a roughly 80% reduction in GHGs compared to heavy oil fuel.