Sustainability Long-term Vision and Sustainability Medium-term Plan

The Kuraray Group recognizes climate change countermeasures as one of the priority measures and aims to achieve carbon net zero by 2050. The total GHG emissions of the Kuraray Group, including its supply chain, amounted to 6,437 thousand tons CO₂e in 2023.

Regarding the reduction target for Scope 1 and 2 emissions, there are projects to develop clean energy sources such as green hydrogen and green ammonia near Kuraray Group's overseas production sites. Considering the possibility that clean energy supply capacity will be in place around 2035, we have set a new target for Scope 1 and 2 emission reductions for the target year of 2035. Additionally, in terms of reducing GHG emissions, it is becoming increasingly important to work towards decarbonization across the entire supply chain related to our business activities. Therefore, the Kuraray Group has also set a target for Scope 3 emissions.

The Kuraray Group has set a new roadmap and target to reduce Scope 1 and 2 emissions by 63% by 2035 compared to 2021 levels. We are steadily implementing reduction measures that can be carried out internally, and we are also working with our utility suppliers to explore the transition of the fuels we use to clean new energy sources. Our aim is to achieve this new target.

In 2024, we calculated the Scope 3 emissions for the entire Kuraray Group (details are shown in the table below). Through the calculation, we identified that the primary source of emissions is from "Purchased Goods and Services" (Scope 3 Category 1). Consequently, we have set a target to reduce Category 1 emissions by 37.5% by 2035 compared to 2021 levels. To achieve this goal, we are working on transitioning to raw materials with lower GHG emissions, such as biomass and recycled materials, and expanding the use of carbon reactivated in our activated carbon business. Additionally, we aim to achieve our reduction target through dialogue and collaboration with our suppliers.

Furthermore, the Kuraray Group aims to obtain SBT certification for the newly set GHG emission reduction targets for Scope 1 and 2 and for Scope 3.

^※SBT (Science Based Targets): Voluntary targets set by business corporations with regards to GHG emission reductions in a manner consistent with the levels required by the Paris Agreement. The SBT certification ensures that the company's targets are scientifically based and aligned with the goals of the Paris Agreement.

GHG Emissions by Scope and Category

（Unit: thousand tons-CO₂e）