Sustainability

Environmental Management

Objectives

Environmental Vision 2020

In FY 2010, the Fuji Oil Group set forth Fuji Group Environmental Vision 2020, which includes targets for reducing CO2 emissions and the amounts of water usage and discharge by 20% from base year levels by the year 2020.

Fuji Group Environmental Vision 2020

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In Japan
Global warming prevention: 20% reduction in CO2 emissions by 2020 (compared to base year)
Conservation of water resources: 20% reduction in the amount of water usage/discharge by 2020 (compared to base year)
Recycling of resources: Recycling rate of at least 99.8% by 2020
Active earth greenery and biodiversity conservation activities

*Base year: Mean value of the period 2003-2005 (Tokyo Cap-and-Trade Program)

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Reduction at Group Companies Outside Japan (compared to base year)
Global warming prevention: 20% reduction in CO2 emissions by 2020 (compared to base year)

*Base year: 2006

Progress

In FY 2017, group companies in Japan reduced CO2 emissions by 9.8%, the amount of water usage by 20.7% and the amount of water discharge by 20.4% from the base year. The decreases in the amount of water usage and the amount of water discharge met the targets of Environmental Vision 2020. We will continue efforts to promote day-to-day energy-saving activities, and reduce the amounts of water usage and discharge. We have maintained our resource recycling rate at the high level of 99.96%

Formulation of new Environmental Vision 2030

The Fuji Oil Group will formulate a new Environmental Vision 2030 with a target year of 2030. It will set forth three items: 1. reduction of CO2 emissions, 2. reduction of water usage, and 3. reduction of waste, and apply them in all group companies. In FY 2017, we examined and formulated 1. CO2 reduction of CO2 emissions.

Reduction of CO2 emissions

Since the Paris Agreement, efforts to prevent global warming and climate change have been gaining momentum. The Fuji Oil Group will also promote more aggressive measures to contribute to the prevention of global warming. The Group considered the formulation of Environmental Vision 2030 in line with the approach of Science Based Targets (SBT), which aims to hold the increase in global average temperature to less than 2°C above the pre-industrial level. As a result, in Environmental Vision 2030 we set a CO2 emissions target of a 24% reduction by 2030, compared to the base year of 2016. In June 2018, the Group submitted a commitment letter to SBT, and aims to acquire SBT certification within two years.

Reduction of water usage and waste

In FY 2018 we will continue to follow Environmental Vision 2020. We are planning to ascertain the current status of all Group companies during FY 2018 and formulate new targets for Environmental Vision 2030.

Promotion System

Group Environmental Management System

In the Fuji Oil Group Management Philosophy, we have declared "safety, quality, and the environment" as values that inform the actions of all our employees. On that basis, we have established our Basic Policy of Environmental Integrity, and promote its practice throughout the Group in our business activities, as well as initiatives to raise environmental awareness. The position of Chief Quality Officer (CQO), who is responsible for improving safety, quality and environmental levels from a global perspective, was newly established at Fuji Oil Holdings. We will continue to conduct Group-wide audits and monitoring of environmental measures to apply the Basic Policy of Environmental Integrity to our business activities.

Educational and Awareness-Raising Activities

Meeting of Safety, Quality & Environment
Meeting of Safety, Quality & Environment

The Fuji Oil Group holds a Meeting of Safety, Quality & Environment inside and outside Japan with the aim of raising awareness of safety, quality and the environment, and raising the level of each group company through the exchange of information and ideas. Seven group companies in China participated in the Meeting held at FUJI OIL (CHINA) INVESTMENT CO., LTD. in October 2017. At the Meeting, persons in charge of safety, health, quality assurance, and environmental conservation, mainly plant managers and production managers, gather in one location.
Group companies reported on activities undertaken in the previous fiscal year and their results, future tasks and other matters in addition to sharing information on occupational accidents that occurred. In addition, to ensure thorough implementation of Group policy, Fuji Oil Holdings explained the Fuji Oil Group Basic Policy of Safety, Quality and Environment and held a briefing session on the formulation of a new environmental vision.
We will continue to regularly hold meetings in these areas to further promote sharing of our value of “safety, quality, and the environment” throughout the entire Group.

Highlights: Incentives for Employees
As of FY 2016, we have established a Safety, Quality & Environment category in our management awards program to recognize departments and group companies that have made excellent efforts to contribute to society through their business activities. Once a year, we present awards to companies and departments among the group companies that have achieved outstanding results.

ISO 14001 Certification

To more rigorously manage the environmental impacts of its production activities, the Fuji Oil Group’s production bases and group companies have obtained ISO 14001: 2015 certification, a globally recognized standard for environmental management systems.
In September 2000, the Hannan Business Operations Complex, which accounts for 85% of the Group’s production volume in Japan, obtained ISO 14001 certification. By December 2010, all six of our six production plants and our research laboratories in Japan had obtained the certification.

See the following website for the latest status of ISO 14001 certification.

https://www.fujioilholdings.com/en/about/authen/iso14001/

Environmental Audits

Overview of safety, quality and environment-related audits

The Fuji Oil Group carries out in-house audits on safety, quality, and the environment according to the contents stipulated within our Basic Policy of Safety, Quality and Environment with the goal of improving manufacturing controls at our group companies.
Audits are promoted by not just performing checks, but also by explaining why they are important. By verifying, evaluating, and offering advice on the initiatives of each group company through these audits, we will continue working to prevent accidents related to workplace safety, quality, and environmental conservation, while also improving and boosting productivity.

Environmental Audits

The Fuji Oil Group and its group companies in Japan perform in-house environmental audits every year that cover production bases and every department to monitor compliance with all applicable environmental laws and regulations. In addition, every year these same bases and departments are inspected by an external ISO certification body.
In FY 2017, 56 departments from group companies in Japan underwent in-house environmental audits and external audits. No nonconformities were found. In-house environmental audits were also conducted at 13 bases outside Japan.
Going forward, we will continue to conduct these audits and to streamline the auditing system, review our procedure manuals, and make on-site improvements.

Serious environment-related violations and measures

In FY2017, there were no serious violations in the environmental area in the Fuji Oil Group.

External evaluations

Received the Osaka Stop Global Warming Awards Special Prize in FY 2017

Award ceremony
Award ceremony

In December 2017, Fuji Oil Co., Ltd. received the Osaka Stop Global Warming Awards Special Prize for FY2017. These awards are presented by Osaka Prefectural Government to honor businesses that have made outstanding efforts in areas including reduction of greenhouse gas emission in their business activities. We received the award in recognition of achieving a 1.3% year-on-year reduction in greenhouse gas emissions in FY 2016 due to proactive introduction of equipment and operational improvements at Fuji Oil Co., Ltd.

Evaluation and preferential tax treatment under Japan’s Energy Conservation Act

For the three consecutive years from FY 2015 to FY 2017, Fuji Oil Co., Ltd. has received an “S evaluation,” the highest rating, under the “Business Operator Classified Evaluation System” based on the regular reporting to which specified business operators and specified chain operators are subject pursuant to Japan’s Act on the Rational Use of Energy (Energy Conservation Act).
In addition, Fuji Oil Co., Ltd. is a business eligible to receive tax measures under the Energy Conservation Promotion Taxation System of the Incentives for Investment in Advanced Energy Conservation and Renewable Energy established in Japan’s 2018 tax reforms. These tax measures allow for the receipt of preferential tax treatment such as special depreciation when designated equipment as set forth in the mid- to long-term plan of the Energy Conservation Act is newly acquired within the applicable period and used for business purposes.

Data

Environmental Audit Results (In-house Environmental Audits, External audit) (Group Companies in Japan)

(Unit/Post)

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  In-house environmental audits External audit
FY 2013 Nonconformity 0 0
Monitoring required 59 2
FY 2014 Nonconformity 0 0
Monitoring required 79 6
FY 2015 Nonconformity 0 0
Monitoring required 67 6
FY 2016 Nonconformity 0 0
Monitoring required 54 8
FY 2017 Nonconformity 0 0
Monitoring required 26 5

Note: Audits of 56 departments (including documentation audits of 23 departments)

Overview of Environmental Impacts (Input/Output)

The Fuji Oil Group records and analyzes inputs, such as materials and energy, and outputs, such as waste, from raw material procurement to production and logistics, in order to mitigate environmental impacts of its business activities.

Overview of Environmental Impacts from business activities of domestic group companies

Overview of Environmental Impacts from business activities of domestic group companies

Environmental accounting

Environmental costs and benefits were calculated in accordance with the Environmental Accounting Guidelines 2005 published by the Ministry of the Environment of Japan.

Scope of tabulation

Fuji Oil Co., Ltd. (non-consolidated)

Period

April 2017 to March 2018

Calculation methods

Investment amount: Where 50% or more of the investment amount was for environmental protection, the entire amount was considered an environmental investment.
Depreciation: The declining-balance method of depreciation was used for all investments in the prior six years for which 50% or more of the amount was for environmental protection. The depreciation period was set at 10 years in all cases.
Costs that were directly known were tabulated in their entirety. Costs that could not be directly known were calculated and tabulated based on the percentage pertaining to the actual application.
Economic benefit realized from environmental protection was recorded only where demonstrated.

Environmental costs

(Million yen)

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Category Key Activities FY2013 FY2014 FY2015 FY2016 FY2017
Investment Expenses Investment Expenses Investment Expenses Investment Expenses Investment Expenses
Business area cost   108 930 108 991 360 908 401 1,202 846 1,313
Details (1) Pollution prevention cost 15.9 358 36.6 353 67 351 67 407 352 420
(2) Global environmental conservation cost 16.1 260 54.2 326 271 223 287 374 486 486
(3) Resource recycling cost 76.5 311 16.9 312 22 334 47 422 8 407
Upstream / downstream cost ntroduction of cardboard-free facilities, premiums of green purchases, etc. 78 18 118 35 1 27 0 3 0 3
Administration cost Development / maintenance of ISO 14001 management system, employee training, creation of environmental reports, etc. 239 248 238 0 236 0 236
R&D cost Research on advanced use of resources, etc. 147 142 139 0 142 0 130
Social activity cost Cleanup activities around plants, support for groups engaged in environmental conservation, etc. 3.44 4.07 3.65 0 3.51 0 3.51
Environmental remediation cost Pollution load charges 7.85 8.13 7.27 0 5.93 0 5.93
Total 187 1,345 226 1,429 361 1,323 401 1,593 846 1,691

Environmental benefits

Note: Data from 2013 onward have been changed due to a revision of the range of the totals, including conversion coefficients.

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Category Environmental Performance Indicator Unit FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Benefit related to resources input into business activities Energy consumption per unit of production L/t 174.9 158.7 153.4 149.1 152
Amount of water usage Thousand m3 2,870 2,759 2,845 2,859 2,713
Water discharged per unit of production m3/t 5.69 5.16 5.16 4.90 4.83
Benefit related to waste or environmental impact originating from business activities CO2 emissions per unit of production kg- CO2 /t 342 309 300 291 299
Amount of water discharged Thousand m3 2,058 1,993 2,073 2,069 1,969
Water discharged per unit of production m3/t 4.05 3.73 3.60 3.54 3.51
Amount of waste discharged /t 18,543 18,456 18,439 19,850 18,529
Waste discharged per unit of production kg/t 65.1 21.7 12.4 17.0 33.0
Benefit related to goods and services produced from business activities Waste recycling rate % 99.97 99.96 99.97 99.94 99.96

Some figures may be different from those published in last year’s report due to changes made to the energy conversion coefficient and other data.

Economic benefit associated with environmental conservation activities

(Million yen)

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Category Details Amount
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Revenue Profit from sale of valuable materials obtained through waste recycling (soy pulp, waste oil, used cardboard) 17 18 20 21 14
Cost reduction Cost reduction through waste reduction activities 160 173 176 156 164
Total 177 191 196 177 177

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