Deal with Climate Change
Response to Climate Change Policy
To reduce CO2 emissions, a cause of climate change, the Kewpie Group is actively working for energy conservation and an energy shift across the entire value chain -- procurement, production, logistics, sales, and office.
Reduction of CO2 emissions is a key sustainability issue, and the Kewpie Group is working to further implement our response to climate change, having set our own domestic CO2 emission reduction targets for the Group in Japan.
Reduction of CO2 Emissions
In response to the progression of climate change, we have reviewed and revised upward our CO2 emission reduction targets.
All companies within the Kewpie Group are working to reform manufacturing and processing operations and discussing the installation of renewable energy sources to achieve a carbon-free society. To this end, in addition to existing initiatives, we are looking to improve efficiency at production plants and install energy-saving equipment to further reduce CO2 emissions.
In terms of distribution, we are actively promoting a modal shift from long-distance truck transportation to rail and ship, while also engaging in joint transportation operations with manufacturers in other industries.
In our offices, we are working to optimize energy usage by utilizing new technologies such as AI.
CO2 Emissions
Targeted plants: Kewpie Group production plants
Emission intensity are calculated based on the Kewpie Group domestic production plants
Making Use of Renewable Energy
The Kewpie Group is steadily installing renewable energy at its locations in Japan and abroad. Under the "on-site PPA model," the Kewpie Kobe Plant provides space on its rooftop for a solar power generation system, which is installed and managed by Kansai Electric Power Company. From December 2022, we switched to 100% renewable energy sources by supplying power from renewable energy sources through Kansai Electric Power Company and purchasing J-credits* equivalent to the CO2 resulting from the fuel (steam) supplied by Mitsui & Co. Ltd. This initiative is expected to result in the Kewpie Group's first net-zero plant, which will reduce CO2 emissions by approximately 3,680 tons per year.
In August 2022, Kitakami Delica Co., Ltd. provided space for a solar power generation system, which will be installed and managed by Looop Inc. under the "on-site PPA model," generating 5.3% of the plant's total electricity consumption, which is expected to reduce annual CO2 emissions by approximately 85 tons per year.
We will continue to actively switch to renewable energy sources for power consumption at the Group's offices and production sites.
*The J-credit system is a system in which the government certifies the amount of greenhouse gas emission reductions and absorption as credits.
Installation status
| Year installed | Site |
|---|---|
| June 2023 | Owari Plant, Kewpie Egg Corporation |
| March 2023 |
Sanda Plant, Kewpie Egg Corporation Enshu Plant, Salad Club, Inc. (Additional installation of panels) |
| January 2023 | KEWPIE MALAYSIA SDN.BHD. |
| August 2022 | Kitakami Delica Co., Ltd. (on-site PPA model) |
| February 2022 | Kewpie Kobe Plant (on-site PPA model) |
| December 2021 | BEIJING KEWPIE CO., LTD. |
| December 2021 | KEWPIE VIETNAM CO., LTD. |
| November 2021 | Ome Plant, Shunsai Deli Co., Ltd. |
| February 2021 | Hanno Plant, Kewpie Egg Corporation |
| April 2020 | Akishima Plant, Shunsai Deli Co., Ltd. |
| April 2018 | KEWPIE (THAILAND) CO., LTD. |
| December 2016 | Kewpie Goka Plant |
| February 2016 | Enshu Plant, Salad Club, Inc. |
| September 2015 | Fujiyoshida Kewpie Co., Ltd.* |
| January 2015 | Green Factory Center Shirakawa |
| April 2014 | Shiga Plant, Kewpie Jyozo Co., Ltd. |
| October 2013 | Sengawa Kewport |
| April 2013 | Head Office Plant, Kpack Co., Ltd. |
| March 2012 | Kewpie Fine Chemicals Headquarters Goka Plant |
*In 2021, the business was transferred to Hakubaku Co., Ltd. The solar panels installed by Kewpie on that site are still owned and managed by Kewpie.
Kewpie Kobe Plant solar panel facility
Kitakami Delica Plant solar panel facility
TCFD Initiatives
The operations of the Kewpie Group are highly dependent on the blessings of nature. Accordingly, these operations could incur impact from climate change in a variety of ways, including through lower harvest yields and reduced quality of ingredients. Moving forward, we will address and respond to future climate-change related events as management risks, while at the same time identifying new opportunities and incorporating them into our corporate strategies.
The Kewpie Group endorses the Task Force on Climate-related Financial Disclosure (TCFD)*1 and has joined the TCFD Consortium,*2 which serves as a forum for collaborations among companies and financial institutions that support TCFD. Internally, the Kewpie Group created the TCFD Project and has engaged in its own initiatives since 2021.
*1Established by the Financial Stability Board (FSB) in 2015 at the behest of the G20. The TCFD recommends that companies assess the financial impacts of climate change risks and opportunities on management and disclose information pertaining to governance, strategies, risk management, metrics and targets.
TCFD website
*2Established in 2019 as a forum for discussing efforts leading to effective corporate information disclosure and the disclosure of information facilitating appropriate investment decisions by financial institutions and other organizations. Companies and financial institutions that support the TCFD recommendations are promoting the initiative.
TCFD Consortium website
Production Initiatives
Reducing CO2 Emissions by the Production Division
The Kewpie Group is committed to saving energy by improving the efficiency of production processes and by installing new equipment. We are converting from using Heavy Fuel Oil A to city gas and natural gas, and we are promoting the use of co-generation and solar power. We are also working to reduce CO2 emissions by sharing and developing the outstanding initiatives taken by group plants.
Promoting Energy Conservation in the Production Division
The Kewpie Group is promoting the "visualization of energy use" by installing energy measurement devices in all processes at production sites, improving facility operation and maintenance, and introducing energy-saving equipment to promote energy conservation.
Energy Conservation Reduction Targets for the Production Division
- Reduce energy consumption by 1% or more from the previous year.
Energy consumption at Kewpie Group production plants in FY2022 was 3,323,127 GJ, a decrease of 1.3% from the previous fiscal year. Energy consumption per ton of production was 4.37 GJ (calorie basis), about the same as the previous fiscal year.
The decrease in consumption and the basic energy unit is mainly due to efficient production through factory reorganization regarding condiment products, efficient production through business reorganization in the egg business, and planned energy-saving facility upgrades for each business.
Targeted plants: Kewpie Group production plants
Utilizing Natural Refrigerants
The Kewpie Group is installing energy-saving equipment and working to optimize the operation of our facilities. By incorporating natural refrigerants when upgrading our freezer units, we have reduced CO2 emissions and eliminated fluorocarbon use.
Ammonia freezer units
Installation status
| Year installed | Site |
|---|---|
| 2021 | Kewpie Egg Corporation, Owari Plant |
| 2020 | Kewpie Egg Corporation, Itami Plant |
| 2018 | Kewpie Nakagawara Plant |
| 2015 | Kewpie Egg Corporation, Tsukuba Plant |
Logistics Initiatives
The Kewpie Group is collaborating with business partners and Group companies to reduce the environmental burden of all transport and delivery operations, from the transportation of raw materials to the delivery of products.
We are working to improve efficiency by shortening transportation and delivery distances and by improving load efficiency. We also implement eco-friendly driving, which consumes less fuel and offers greater safety. Furthermore, we are promoting a modal shift from long-distance truck transportation to rail and ship to reduce CO2 emissions.
CO2 emissions from the transport and delivery of Kewpie products in FY2022 were 20,598 tons, down 6.0% from the previous year.
CO2 Emissions from Transportation and Delivery
| FY2021 | FY2022 | Year-on-year comparison | ||
|---|---|---|---|---|
| Kewpie products | Transport volume (1,000 tonne-km) | 138,443 | 128,385 | -6.0% |
| CO2emissions (tonnes) | 21,924 | 20,598 | -6.0% |
Promoting a Modal Shift
We acquired ten exclusive-use 31-foot containers (of which four are freezer containers) and are coordinating with transportation professionals to promote modal shifts.*1
In July 2019, Kewpie was certified with the Eco Rail Mark as a company that uses cargo trains for more than a certain percentage of product transportations.
Our modal shift ratio*2 was 33% in FY2022.
*1Modal shift: Shifting long-haul trucking of 500 km or more to container transportation via railroads and ships.
*2Modal shift ratio: Ratio of tonnes shipped by railroads and ships to total tonnes shipped 500 km or more.
We acquired six 31-foot containers for rail and ship transport and are promoting modal shifts in coordination with freight carriers.
Change in the modal shift ratio
Joint Transportation Initiatives with Businesses in Other Industries
Having completed Sengawa Kewport in October 2013, the Kewpie Group is proceeding to consolidate the location of its offices, including the head office and research departments. We have adopted energy-saving designs and equipment, are collaborating between offices to share know-how on achieving the best energy-saving performance, and are making ongoing operational facility improvements and repairs.
Office Initiatives
Since February 2022, we have been procuring electricity with environmental value (FIT Non-Fossil Certificate with Tracking)*1 generated by solar panels at three Group sites (Green Factory Center Shirakawa, Fujiyoshida Kewpie Co., Ltd.,*2 and Salad Club Enshu Plant) from the Japan Electric Power Exchange through TEPCO Energy Partner, Incorporated. The electricity used at the Kewpie Shibuya Head Office and Sengawa Kewport is now 100% renewable. This initiative is expected to reduce CO2 emissions by approximately 1,600 tons per year.
*1This is a certificate representing the "value being derived from a non-fossil power source" of electricity generated by a non-fossil power source. The certificates are procured by retail electricity providers in the non-fossil value trading market and used in electricity sold to customers, thereby allowing them to reduce greenhouse gas emissions.
*2In 2021, the business was transferred to Hakubaku Co., Ltd. The solar panels installed by Kewpie on that site are still owned and managed by Kewpie.
Initiatives at the Shibuya office
The Shibuya office (Shibuya Toyu Building) of the Kewpie Group has a double-skin glass facade that achieves a high degree of thermal insulation from natural ventilation between the glass layers. The office has installed highly efficient air conditioners, LED lighting, and other energy saving equipment.
The double-skin glass facade of the Shibuya office.
hrough such environmental designs, the Shibuya office building has been given an overall rating of A by the Comprehensive Assessment System for Built Environment Efficiency (CASBEE).
In addition, the building has been designated a project for receiving interest subsidies to promote green financing.*
*Project for receiving interest subsidies to promote green financing: These are projects selected through a public offer by the Ministry of the Environment to receive a subsidy for part of the interest paid on the financing of capital expenditures addressing global warming.
Initiatives at Sengawa Kewport
Natural ventilation system
Energy saving features of Sengawa Kewport include air wells providing natural ventilation, a co-generation system, solar power generation, and LED lighting. To maximize the performance of energy saving design, we are deepening our collaboration with equipment makers and are surveying many employees at Sengawa Kewport to operate energy saving equipment more precisely.
Furthermore, in collaboration with Tokyo Gas Engineering Solutions Corporation, we established an optimized operational pattern based on weather forecast data and the operating status of air conditioners (chillers, heat pumps, gas boilers, and cogeneration power generation) using AI on a cloud server. We are taking further steps to automate driving.