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Environment

POLA ORBIS Group Environmental Policy

The POLA ORBIS Group's Environmental Policy

  1. To strive to reduce the burden on the environment through our Product Life Cycles
  2. To set environmental goals, to strive to continuously improve these goals to the extent that is technologically and economically possible, and to prevent environmental pollution
  3. To strive for environmentally friendly product development, resource conservation at offices, low energy use, and the control of waste in order to preserve and improve the environment
  4. To follow laws, local ordinances, agreements, and self-imposed standards related to the environment
  5. To strive for cohabitation with the region and society, and to promote activities to preserve and improve the environment

Environmental Response by Business Partners

The POLA ORBIS Group's CSR Procurement Guidelines ask all suppliers to improve efficiency of energy and resource usage, reduce CO2 emission volumes, water usage and waste output, reduce environmental impact, including response to environmental pollution, and protect the environment, including ecosystems. We check CO2 emission volumes, water usage, waste output and environmental pollution for all our business partners through CSR procurement questionnaires based on the CSR procurement guidelines.

POLA ORBIS Group Environmental Response System

The POLA ORBIS Holdings CSR Secretariat is at the core of the POLA ORBIS Group, with goals for the reduction of environmental burden created by each Group company to reduce environmental goals and to improve environmental problems. The details of these goals are reviewed and the goals are monitored by the Group CSR Committee, with the results reported to the Board of Directers.

Climate Change: Initiatives to Reduce CO2 Output

Support for TCFD

The POLA ORBIS Group believes that in order to continue to grow sustainably with a beautiful Earth, it is necessary to respond to climate change risks. As of 2021, we support the Task Force on Climate-Related Financial Disclosures (TCFD). Based on the TCFD recommendations, we will disclose the risks and opportunities that climate change may pose to our business.

Scenario Analysis

The POLA ORBIS Group has performed scenario-based analyses for both 2 and 4 scenarios to determine what business challenges could be manifested in anticipation of the highly uncertain future accompanying the transition to a decarbonized society. Scenario analyses for all of the Group's businesses were set for 2023 in the medium term and 2029 (100th anniversary) in the long term, based on the Group's medium and long-term strategies. 2050 was used for ultra-long-term considerations. These analyses take into account the entire value chain, including raw materials procurement.

In the physical risk assessment, in the 4 scenario, it was found that the Group's operations could be affected by the potential for disasters and impact on the procurement of natural plant-derived raw materials. In the assessment of migration risks, even in the 2 scenario, it was found that there is a risk of negative financial impact, such as an increase in business costs due to the impact of carbon pricing as a result of emission regulations, and the impact on product makeup due to changes in customer preferences.

Measures to address likely physical risks and emission regulations in migration risks have been discussed by the Group's cross-organizational CSR Committee, reported to the Board of Directors, and determined as priority risks to be addressed by the Group.

Based on these scenario analyses, we have reset targets to conform with the SBT 1.5 scenario. The Group expects its business operations to be affected by further toughening of regulations for reducing CO2 emissions and intensifying competition in low-carbon management among its peers. We have therefore established a cross-group organization and are engaged in considerations to enable technological innovations such as product development and the establishment of plastic circulation models, in addition to existing initiatives such as reducing CO2 emissions, reducing packaging materials, switching to renewable energy, and carbon offsetting throughout the value chain.

Climate Change (CO2 Emission Reduction) Targets and Results

The POLA ORBIS Group has established targets for reducing CO2 emissions by 2029, based on the SBT scenario. These targets are also linked to the Group's remuneration system for executives.

Scope 1 and 2 CO2 emission volumeTarget CO2 emission volume reduction ratio target Baseline year (2019) result2020 result
2029 6,762t-CO2 42.0% 11,659t-CO2 9,600t-CO2
2023 9,677t-CO2 17.0% 11,659t-CO2 9,600t-CO2
Scope3 CO2 emission volumeTarget CO2 emission volume reduction ratio target Baseline year (2019) result 2020 result
2029 492,776t-CO2 30.0% 703,966t-CO2 388,685t-CO2

Our target is to reduce total CO2 emissions (Scope 1, 2 and 3) by 4,484t-CO2 over the three-year period 2021–2023.

Initiatives to Reduce CO2 Output

Initiatives to Reduce Scope 1 and 2 CO2 Emissions

We are engaged in energy-saving initiatives as a measure to adapt to climate change. As part of these efforts, in 2020, POLA CHEMICAL INDUSTRIES' Fukuroi Factory switched to energy-saving equipment, improved the operating efficiency of its factory equipment, and shortened its operating hours. In April 2021, we switched to CO2-free power* derived from 100% renewable energy. This is expected to reduce CO2 emissions by approximately 3,000t, which equates to approximately 30% of the Group's total CO2 reductions. (Scope 1 and 2, comparison with 2019)

*Electric power that is effectively 100% renewable energy, achieved by utilizing environmental value derived from renewable energy

In order to drive the creation of a decarbonized society in Japan, we have also been purchasing J-Credits*–derived from renewable energy power generation–since 2020. As a result, in 2020, we were able to offset 498t of the Group's CO2 emissions.

*J-Credit: A system under which the Japanese government certifies emission reduction volumes and absorption volumes of CO2 and other greenhouse gases as credits through initiatives such as the use of renewable energy.

Initiatives to Reduce Scope 3 CO2 Emissions

In addition to direct emissions, we are also reducing indirect CO2 emissions and adapting to climate change. ORBIS introduced automatic conveyance robots and other equipment to the mail order shipping line of its ORBIS East Japan Distribution Center, a major shipping base for mail order and e-commerce, and reduced CO2 emissions by approximately 71t through the unique automation of its operations from pickup to sorting based on destination / direction.
ORBIS is also working to reduce the need for re-deliveries. In 2018 we reduced CO2 emissions by around 14t by switching from the use of couriers to mail services.
In 2020, DECENCIA changed the packaging of its trial set, which was previously packaged in plastic, to FSC-certified paper. As a result, a reduction of around 7.86t in CO2 emissions is expected.

Forestry Preservation Initiatives

We believe that protecting forests is important as a measure to adapt to climate change. At the ORBIS Forest in the city of Koshu, since April 2012, ORBIS employees have been working on a project together with the Organization for Industrial, Spiritual and Cultural Advancement (OISCA) to develop ruined forests and regenerate them as "satoyama"(agricultural community forests). Jurlique is cultivating plants at its company farms using biodynamic pesticide-free organic farming, and planting trees on its land. The POLA ORBIS Group also uses FSC-certified paper. By joining RSPO, we are also responding to climate change with regard to palm oil.

Initiatives to Reduce Plastic Waste

We believe that plastics have a significant impact on climate change due to the large volume of CO2 emissions released during their disposal. The POLA ORBIS Group began selling refillable containers for the first time as a luxury cosmetics line in 1985. Around 80% of POLA products are still purchased as refills today. ORBIS has also made the change from plastic packaging to paper containers. As of 2020, POLA CHEMICAL INDUSTRIES has been engaged in joint R&D of plant-derived biodegradable plastics in association with Hitachi Zosen Corporation.

ESG Information
Corporate Report2020
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