Person in charge (department and title at the time of interview)
CEO
Mr. Akihiro Ueda
Manager of CN/ESG Promotion Office, Management Headquarters
Mr. Hirokatsu Furukawa
When calculating greenhouse gas emission amount , "Scope 1 (direct emissions by one company)" and "Scope 2 (indirect emissions associated with the use of electricity, heat, and steam supplied by other companies)" are easy for each company to address, but "Scope 3" requires companies to calculate indirect emissions by other companies related to the company's activity , from raw material procurement to Manufacturing , sales, consumption, and disposal, and many companies are unable to handle it due to its complexity. UEDA SHOKAI GROUP Co.,Ltd.(Noboribetsu City, Hokkaido) has been Manufacturing and selling concrete products since its founding in 1925. While considering the use of a system to ensure greenhouse gas management is not dependent on individual personnel, the company contacted Zeroboard through Iwatani Corporation . We spoke to them about how they began their decarbonization efforts, their efforts to reduce CO2 emission amount, and their outlook for the future.
Background to the start of decarbonization efforts
With ESG management and other issues gaining attention, we wanted to shift to an environmentally conscious business.
Reasons for choosing Zeroboard
Not only did they provide calculation tools, but they also provided us with expert knowledge about Scope 3 in the future.
We learned about the features of the system and the benefits of introducing it from Iwatani Corporation , Zeroboard 's partner.
Obtained effect
In addition to solar power generation, we implemented fuel conversion and were able to work on reducing CO2 emission amount from Energy .
Through obtaining SBT Initiative certification, participating in TCFD, and acquiring forest land, our environmental efforts have become recognized both inside and outside the company.
Employees have become more aware of the "decarbonization" that can be achieved even by concrete Manufacturing companies.
Changing business direction in light of the trend towards ESG management
-Please tell us why you started working on decarbonization.
Ueda: Since around 2020, we have been hearing the term "ESG management" frequently, and we felt that we needed to take the environment into consideration in our business as well.
In this context, in order to reduce CO2 emission amount from the Manufacturing of our main product, concrete, we planned to Manufacturing low-carbon ethical concrete "TUTUMU" at some of our factories, and ultimately decided to Manufacturing it at all of our factories by June 2022.
-What kind of product is "TUTUMU"?
Mr. Ueda: This is an environmentally friendly concrete made from Industry by-products such as fly ash and ground blast furnace slag, and is durable and strong. It uses less cement than regular concrete, reducing carbon dioxide emission amount from the materials by an average of 41%, or about 50 kg per ton.
Next, please tell us how you came to introduce Zeroboard.
Furukawa: Until now, we had been managing our greenhouse gas emission amount using Excel. While we were able to calculate Scope 1 and Scope 2 emissions in-house, the Issue was that they were dependent on individual personnel. Also, for Scope 3, we must calculate emission amount across the entire supply chain. In our business, the majority of Scope 3 emission amount come from cement, which is the raw material for concrete products. Since a large amount of CO2 is generated during the cement Manufacturing process, we wanted to gather information on how other companies in the industry will address this issue in the future.
We received a proposal from Iwatani Corporation , a Zeroboard partner company, and began using the service in April 2023, as we thought it would provide us with knowledge about decarbonization in the future.
Visualizing CO2 emissions with "Zeroboard" and working with Iwatani Corporation to reduce fuel consumption
-How do you use "Zeroboard"?
Furukawa: We use "Zeroboard" to manage Scope 1 to 3. Managing it through the system makes it easy to calculate, and the calculation results can be visualized instantly on the system.
Ueda: We can now display on our official website how many tons of CO2 emission amount from raw materials have been reduced.
Previously, we only reported to our customers the numerical value of how much CO2 emission amount we were able to reduce through construction work, but now we are able to present how much CO2 we can reduce from the estimate stage onwards. Some customers are pleased with this, and it feels like sustainable initiatives are gradually taking hold.
--After introducing Zeroboard, you started working on fuel switching.
Furukawa: After introducing "Zeroboard" to systematize the visualization of CO2 emission amount , we began working to reduce Scope 1 and 2 emissions that we could reduce ourselves. Energy consumption in the Manufacturing of concrete products accounts for around 10-20% of the total, but the CO2 emission amount from this portion are of primary importance. At the Sunahara Plant, we took advantage of a subsidy program proposed by Iwatani Corporation to switch to LPG as fuel and update our equipment to a highly efficient steam boiler in February 2024. By switching from heavy oil to LPG, we have been able to reduce CO2 emission amount from Energy by around 15% compared to the previous level, and we also expect energy savings and CO2 reduction effect from the highly efficient boiler.
By visualizing CO2 emissions using "Zeroboard ," we are able to see firsthand the CO2 reduction effect of the fuel conversion we are working on with Iwatani Corporation .
Furthermore, the Sunahara Factory has installed solar panels to help reduce CO2 emission amount from electricity generation.
The Chitose Factory has been using city gas for about 15 years, which has been effective in reducing CO2 emission amount. Solar power generation has also been introduced, and in the summer it covers 60 to 70% of the factory's Energy.
--Is there anything other you are working on?
Ueda: We are also working on forest cultivation from a nature-positive* perspective. In December 2023, we purchased a forest in Atsuta Ward, Ishikari City, and are managing it in cooperation with the Ishikari City Forestry Association.
*: Efforts to halt the damage to natural capital such as biodiversity and put it on a path to recovery in the future.
Promoting sustainable initiatives and aiming for decarbonization throughout the supply chain
--You are the first concrete manufacturer in Japan to receive SBT Initiative certification.
Mr. Ueda: The SBT initiative is an international initiative that allows the Settings of greenhouse gas emission reduction targets through specific targets based on scientific evidence. To be honest, there are still not many cases where customers choose UEDA SHOKAI GROUP Co.,Ltd.'s products simply because they are certified by the SBT initiative. However, I feel that by quickly obtaining this certification, we have become more easily recognized as a company that is implementing environmentally friendly initiatives.
We have other participated in the TCFD, which actively promotes the disclosure of financial information related to climate change.
--What efforts do you plan to make in the future to further promote decarbonization?
Furukawa: We would like to further promote solar power generation and fuel conversion, as well as reduce our cement usage in order to reduce Scope 3 emissions. Cement, which gives concrete its strength and durability, emits around 760 kg of CO2 per ton of raw material. The Energy required to Manufacturing concrete accounts for around 10 to 20 percent of CO2 emission amount. In other words, the majority of CO2 emission amount are due to cement.
Reducing cement raw materials by even 10% would lead to a total reduction of approximately 4,000 tons of CO2 emission amount, which is equivalent to reducing all of our Scope 1 and Scope 2 CO2 emission amount.
In fact, by successfully Manufacturing environmentally friendly concrete using Industry by-products such as ground blast furnace slag and fly ash, CO2 emission amount have been reduced by an average of 41% compared to concrete products with standard blends, which is a significant effect.
Furukawa: We also want to select materials with low CO2 emission amount when procuring raw materials. We would like to prioritize concrete Company that are working to reduce CO2 emission amount as our business partners, and work together across the entire supply chain to reduce CO2 emission amount.
Further reductions in emission amount can be expected in the future as cement manufacturers develop cement with lower CO2 emission amount . If information on cement manufacturers' CO2 emission amount is provided to concrete Manufacturing through Zeroboard , they will be able to select cement with a lower environmental impact.
Ueda: We are also developing "carbon negative concrete," which reduces CO2 emission amount during concrete Manufacturing to virtually zero. We plan to introduce this when the timing is right, and are conducting demonstration experiments at the Sunahara Plant.
By branding "TUTUMU," more and more companies across the industry are switching to using low-carbon concrete. We are already planning to sign contracts with companies in Sapporo and Ibaraki, and hope to see further expansion of our efforts using our own brand.
By continuing our efforts toward low carbonization with Iwatani Corporation and Zeroboard, we hope to raise the awareness of our employees toward decarbonization, and to give them a sense of pride and fulfillment in their company's efforts. We would also be happy if the image of UEDA SHOKAI GROUP Co.,Ltd. improves from the customer's perspective.
