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.

TCFD TCFD

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, EOR-CCS, and BECCS)
  • Energy savings and more efficient resource use (HERO/ SUPERHIDIC® and biorefineries)
  • 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 examples
See "Medium-term Management Plan 2021-2025"

Metrics and Targets

TOYO has set the following targets to reduce GHG emissions.

Examples of specific initiatives

Scope 1 & 2 (targets)
  • Achievement net zero emissions by 2050
  • Reduce emissions 30% by 2030 compared to 2021 (based on GHG emissions per employee)*
Note: Our Scope 1 & 2 emissions in 2021 amounted to approximately 11,800 tons (1.87 tons of CO2 per person), and we are using this as a reference as we strive to achieve our targets.
New technology research center
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)
  • 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.

Energy-saving/
renewable energy field

  • SUPERHIDIC® (Currently operating) We delivered our energy-saving distillation system SUPERHIDIC® in response to an order received from Maruzen Petrochemical Co., Ltd., achieving over 50% more energy savings compared to conventional distillation towers.
  • Biomass-fired power generation (Result) We have received orders for a total of 12 biomass-fired power generation plants in Japan since 2017 (total power generated: approximately 650 MW), which we have completed or are currently building (as of June of 2023).

Next-generation energy field

  • Green ammonia production in
    Indonesia     (Feasibility study) We are verifying the feasibility and economic rationality of a project that involves introducing hydrogen produced using renewable energy to an existing fertilizer plant in order to produce clean fuel ammonia.
  • SAF (Demonstrated) On June 17, 2021, we became the world’s first company to, for a commercial flight between Haneda and New Chitose, supply SAF produced in Japan by using wood chips, etc. as raw materials. Our aim is to achieve social implementation by the late 2020s.

Chemical plant field

  • Practical application of ammonia
    fuel for a naphtha cracker     (Under development) Our target is to switch the fuel from the conventionally used methane to ammonia in order to reduce the CO2 emissions during combustion to zero. We are working on demonstrating ammonia-only commercial furnaces with the aim of achieving social implementation by fiscal 2030.
  • g-Methanol® (Business underway) We are promoting initiatives aimed at achieving the social implementation of environmentally friendly methanol synthesis technology that uses CO2 captured from various emission sources as well as hydrogen derived from renewable energy as raw materials. There is a possibility of diversifying carbon recycling options.
Environment

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