Nippon Steel's Activities against climate change
Nippon Steel Group’s efforts for energy conservation and CO2 emissions reduction
In March 2021, we announced the Nippon Steel Carbon Neutral Vision 2050, in support of the Japanese government’s ambitious policy to realize a carbon-neutral society in 2050. Through carbon neutralization, we will offer two types of value: “Provision of high-performance steel products and solutions that contribute to reducing CO2 emissions in society” and “provision of carbon neutral steel through decarbonizing steelmaking processes.” We aim to reduce CO2 emissions at the time of production and processing by our customers, at the time of use of our products by end consumers; and in the supply chain of our customers.
In addition, Nippon Steel by itself as well as the Nippon Steel Group including consolidated crude steelmaking companies that have blast furnaces and electric furnaces with high CO2 emissions have set a target for 30% reduction in CO2 emissions in 2030 compared to 2013. Also, our major domestic consolidated subsidiaries aim to be carbon neutral in 2050. Our overall Group will work together to tackle climate change issues.
Nippon Steel Group’s energy consumption and energy-derived CO2 emissions
Nippon Steel has been working on energy conservation from diverse starting points: improving efficient use of energy generated in the steelmaking process (i.e., power generation from recovered by-product gas and waste heat); making operational improvements in each process; renovation of older coke ovens and other equipment; introduction of high-efficiency power generation facilities and oxygen plants; and conversion to regenerative burners in the reheating furnaces.
In fiscal 2022, due to the effects of these energy conservation initiatives and the decrease in production affected by the global slump in demand for steel products, our energy consumption and energy-derived CO2 emissions significantly dropped to 926 petajoules (PJ) and 78 million t-CO2 (a preliminary figure), respectively.
Energy consumption
Energy-derived CO2 emissions
[Calculation method]
Calculation for the Company and its domestic subsidiaries is based on the metrology of the Carbon Neutrality Action Plan.
Overseas subsidiaries follow local regulations or guidelines for calculation.
[Conversion factor]
The Company and its domestic subsidiaries use the “Table of heat generation and carbon emission coefficient by energy source” (revised January 31, 2020) of the Agency for Natural Resources and Energy, METI.
Overseas subsidiaries use relevant emission factors according to local regulations or guidelines.
[Boundary of data collection]
Nippon Steel2, 3, associated EAF mills (Osaka Steel, Sanyo Special Steel, Nippon Steel Stainless Steel, Oji Steel, Tokai Special Steel, Nippon Steel Structural Shapes Corporation, Tokyo Kohtetsu, Ovako, Sanyo Special Steel Manufacturing India, and Standard Steel), and three Sanso Center companies 4
The data collection period used is each company’s accounting period. As Ovako has changed its fiscal year end, Ovako’s fiscal 2021 results cover a period from January 1, 2021 to March 31, 2022 (15 months).
1 Preliminary figure: The amount of CO2 per unit of purchased electricity from each of general power companies in Japan in fiscal 2022 is assumed to be the same amount as in fiscal 2021.
2 Excluding energy consumption and CO2 emission associated with the IPP operation by the steelworks
3 The amounts of energy consumption required for production of coke purchased by Nippon Steel and CO2 emissions are included in the aggregate.
4 Concerning the three Sanso Center companies, the amount of energy consumption required for production of oxygen purchased by Nippon Steel Group and CO2 emissions are included in the aggregate.
Breakdown of greenhouse gas (tons)
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FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | ||
---|---|---|---|---|---|---|
CO2 emissions from energy sources | 94,186,548 | 90,675,141 | 74,045,243 | 83,777,664 | 75,308,906 | |
CO2 emissions from non-energy sources | 3,270,100 | 3,234,831 | 2,977,505 | 3,383,493 | 3,079,737 | |
CH4 | 112,707 | 110,431 | 97,086 | 108,578 | 98,093 | |
N2O | 124,775 | 140,126 | 129,234 | 140,507 | 118,071 | |
CO2 emissions from non-energy sources Total | 3,507,582 | 3,485,388 | 3,203,825 | 3,632,578 | 3,295,901 | |
Ratio of CO2 emissions from energy sources to GHG | 96% | 96% | 96% | 96% | 96% |
CO2 emissions in the value chain
CO2 emissions originated from energy source and generated in Nippon Steel’s manufacturing process (Scope 1 and Scope 2) as well as CO2 emissions in the value chain (Scope 3), which are calculated by using the Green Value Chain Platform of the Ministry of the Environment and other methods are as follows.
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Scope1 and 2
CO2 emissions (thousand tons-CO2) | Calculation method | ||||||
---|---|---|---|---|---|---|---|
FY2013 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | ||
Scope 1 Direct emissions from owned sources associated with use of fuel | 89,578 | 81,337 | 78,5757 | 63,0107 | 71,3157 | 63,397 | Based on the Carbon Neutrality Action Plan. See the boundary of data collection stated below. |
Scope 2 Indirect emissions from the generation of purchased energy | 13,825 | 12,850 | 12,1007 | 11,035 | 12,4627 | 11,9125 | |
Scope1+2 (Energy consumption per ton of crude steel: t–CO2/t) |
103,403 1.89 |
94,187 1.89 |
90,6757 1.93 |
74,0457 1.97 |
83,7787 1.88 |
75,3095 1.92 |
|
Crude steel production8 (consolidated-base, 10,000 tons) | 5,474 | 4,990 | 4,709 | 3,766 | 4,445 | 3,913 |
[Conversion factor]
The Company and its domestic subsidiaries use the “Table of heat generation and carbon emission coefficient by energy source” (revised January 31, 2020) of the Agency for Natural Resources and Energy, METI.
Overseas subsidiaries use relevant emission factors according to local rules or guidelines.
[Boundary of data collection]
Nippon Steel6 and associated EAF mills (Osaka Steel, Sanyo Special Steel, Nippon Steel Stainless Steel, Oji Steel, Tokai Special Steel, Tokyo Kohtetsu, Nippon Steel Structural Shapes Corporation, Ovako, Sanyo Special Steel Manufacturing India, and Standard Steel). The data collection period used is each company’s accounting period.
As Ovako has changed its fiscal year end, Ovako’s fiscal 2021 results cover a period from January 1, 2021 to March 31, 2022 (15 months).
5 Preliminary figure: The amount of CO2 per unit of purchased electricity from each of general power companies in Japan in fiscal 2022 is assumed to be the same amount as in fiscal 2021.
6 Excluding CO2 emission associated with the IPP operation by the steelworks.
7 Due to a review of the summary values and changes in coefficients and other factors, the figure for this past year was revised retroactively.
8 This does not include G/GJsteel
Scope 3 All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company
CO2 emissions (thousand tons-CO2) | Calculation method | |||
---|---|---|---|---|
FY2020 | FY2021 | FY2022 | ||
①Purchased goods and services | 14,379 | 15,994 | 12,939 | Calculated using method9 below for purchased iron ore, coking coal, coke, and oxygen |
②Capital goods | 1,632 | 1,400 | 1,503 | [Amount of capital expenditures] X [Emission factor] |
③Fuel and energy related activities not included in Scope 1 or 2 | 291 | 338 | 293 | [Amount of electric power procured and fuel used] X [Emission factor] |
④Upstream Transportation and Distribution | 629 | 710 | 638 | [Transportation distance reported in the Energy Saving Law document] X [Emission factor] |
⑤Waste generated in operations | 4 | 5 | 5 | [Amount of waste] X [Emission factor] |
⑥Business travel | 4 | 4 | 4 | [Number of employees] X [Emission factor] |
⑦Employee commuting | 14 | 14 | 13 | [Number of employees] X [Emission factor] |
⑮Investments | 1,125 | 1,053 | 1,193 | [Emissions by subsidiaries and affiliates that emit GHG of over 10,000 tons] X [Equity stake of each company] |
[Source of emission factor]
“Emissions unit value database for accounting of greenhouse gas emissions throughout the supply chain (ver. 3.3)” (March 2023, Ministry of the Environment)
“Table of heat generation and carbon emission coefficient by energy source” (Revised January 31, 2020; METI, Agency for Natural Resources and Energy)
[Boundary of data collection] Nippon Steel
9 Iron ore and coal: [Amount purchased of procured iron ore and coal] X [Emission factor]
Coke: [Amount purchased of procured coal at source] X [Emission factor] + [Amount of energy used in production of coke] X [Emission factor by energy source]
Oxygen: [Amount of energy used in production of oxygen] X [Emission factor by energy source]
In FY2022, due to partial changes in the source of emission intensity, CO2 emissions decreased compared to FY2021.
If we use the same emissions factor as in FY2021, CO2 emissions in FY2022 would be 14,619 thousand t-CO2.
Products and technical solutions that contribute to reducing CO2 emissions
in various areas of society NSCarbolex™
NSCarbolex is a brand that integrates NSCarbolex Neutral, steel products allocated the amount of CO2 emissions reductions in the steel making process, and NSCarbolex Solution. Under the Nippon Steel Carbon Neutral Vision 2050 set forth toward the realization of a carbon neutral society in 2050, we are committed to reducing CO2 emissions in society by providing high-performance products and solutions, in addition to CO2 emission reductions in our manufacturing processes.
CO2 emission reduction by manufacturing Blast furnace cement
By using blast furnace slag for cement production, we are able to reduce the amount of lime and fuel required, and reduce CO2 emissions per ton of cement by 320 kg (more than 40% reduction compared to ordinary cement).
CO2 emissions from cement production
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2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|---|---|
Cement production (1,000 tons) | 221 | 208 | 216 | 218 | 207 | 199 | 186 |
Cement production capacity (1,000 tons) | 335 | 335 | 335 | 355 | 335 | 335 | 335 |
Clinker production (1,000 tons) | 134 | 130 | 136 | 131 | 130 | 125 | 120 |
Clinker production capacity (1,000 tons) | 163 | 163 | 142 | 142 | 140 | 140 | 140 |
Clinker / cement ratio | 0.61 | 0.63 | 0.63 | 0.60 | 0.63 | 0.63 | 0.64 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|---|---|
CO2 emissions(1,000 t-CO2) | 122 | 118 | 122 | 117 | 117 | 110 | 105 |
CO2 emission per ton of cement(kg-co2/ton) | 552 | 567 | 564 | 536 | 563 | 555 | 561 |
Contribution to the global value chain (Eco Solutions)
The Japanese steel industry, including Nippon Steel, contributes to reducing CO2 emissions on a global scale by transferring Japan's excellent energy- saving technology overseas. Specifically, we are promoting bilateral energy conservation and environmental international cooperation with India and countries in Southeast Asia, through three ways: public-private partnership meetings; technologies customized list; and assessment of steelworks on their status of energy saving. Since fiscal 2021 this activity has been undertaken in collaboration with the Japan International Cooperation Agency (JICA).
The reduction effects of CO2 emission by transfer of Japanese steelmakers’ energy-saving technologies have amounted to 75.55 million ton reduction in CO2 emissions per year in total. Noteworthy is the technology transfer for the Coke Dry Quenching (CDQ) equipment; use of this equipment has a significant effect on reducing CO2 emissions. The transfer was made by Nippon Steel Engineering Co. of the Nippon Steel Group, contributing to CO2 emission reduction of approximately 28.73 million tons globally by fiscal 2021.
Adaptation to climate change
In addition to taking mitigation actions against climate change, we take into account the diverse impact of climate change and appropriately prepare for risks, as adaptive initiatives, and at the same time seek to capture business opportunities.
Preparation for risks
There is a risk that operations and shipments may be interrupted due to the flooding of steelworks and other events, including some caused by abnormal weather as a consequence of climate change. To prevent such risks, we are implementing measures against typhoons and heavy rains, measures to prevent crane overturn, installation of levees, reinforcement of embankments and gradients, and measures to prevent wind and flood damage at each steelworks.
Moreover, our steelworks have enhanced facilities to prevent water pollution. These facilities were provided to increase waste water treatment capacity and involved installation of a large storage tank so that water tainted with iron ore powder would not directly be released into the sea even if our steelworks were subjected to localized heavy rain.
In addition, some administration offices are built on a piloti structure, which means there is open space with no walls on the ground level. This makes the buildings less vulnerable to tsunami. This is a part of our efforts to be well prepared for emergencies such as flooding and high waves.
Capturing business opportunities
We have many products that are used for a long time as construction material for embankments and other public infrastructure. They contribute to providing solutions for “national resilience,” such as protecting towns from flooding or high tides caused by heavy rains or typhoons. Adaptation to climate changes also leads to business opportunities for Nippon Steel.
For example, we have developed and provided for actual use various types of products and product utilization technologies in the civil engineering field. They include hat-type sheet piles (contributing to national resilience in a wide range of ways, including measures against liquefaction of river levees, water leakage, and tsunami reaching coastal levee), linear-type steel piles (having a high-tensile strength at the joints, being suitable to cell-type quays, erosion-control dams and water shut-off work, and contributing to measures for sand embankments and against landslide at the time of heavy rain or a typhoon), and a method of preventing subsidence by use of sheet piles.