[TOPIC] Aiming for significant reduction in CO2 Emissions

Subaru aims to significantly reduce the Subaru Group’s direct CO2 emissions.

The Subaru has set a new target of reducing the Subaru Group’s direct CO2 emissions (Scope 1 and 2) to 30% below FYE2017 levels (on a total emissions volume basis) by FYE2031 and has begun formulating the Subaru Environmental Action Plan.
Ahead of the plan’s implementation, we embarked on a precursor initiative in April 2018 that aims to reduce CO2 emissions by approximately 5,400 t-CO2/year. Under the Tochigi Furusato Denki program, Japan’s first program for local production and local consumption of electricity without CO2 emissions, approximately 11,500 MWh/year will be supplied to two plants at our Aerospace Company’s Utsunomiya Plant.
We also plan to install Japan’s largest-scale captive-consumption solar power system* (approximately 5,000 MWh/year) at the company’s Gunma Oizumi Plant. Through this initiative, the new facility is expected to bring a reduction of approximately 2,370 tons of CO2 per year, equivalent to around 2% of total annual carbon dioxide emissions at the Oizumi Plant by March 2020.

* Based on a study by Japan Facility Solutions, Inc., which will install and operate the facilities.

Established for “Tochigi Furusato Denki” program
Established for local electric power generated at hydroelectric power plants owned by Tochigi Prefecture is supplied to plants. The part of the power charges paid by Subaru being used for environmental protection initiatives in Tochigi prefecture. (photograph: Subaru presented with a certificate at the Tochigi prefectural government office)
Plan to install Japan’s largest solar captive-consumption solar power system
We aim to make our Gunma Oizumi Plant cleaner by introducing solar energy (Renderinge of the completed solar power system at the Gunma Oizumi Plant)

1. Climate change and their implications for society and the Subaru Group

It is difficult to fully explain how the impact that climate change (global warming) affects our lives. However, the IPCC*1 Fifth Assessment Report states that (1) global warming is the dominant cause of anthropogenic CO2 emissions; and (2) the impact on our lives should be measured if the temperatures rise is not kept below 2 degrees Celsius.

IPCC: Intergovernmental Panel on Climate Change

The Range of Impacts of Climate Change

Compiled on the basis of IPCC reports (SREX and ARS WG2 SPM) and translated.

Source: Trends in Global Warming and Other Recent Developments (Ministry of the Environment) (Japanese version only)

As an example of the risks of climate change, the report states that if effective measures to combat climate change are not taken, floods and/or droughts of a kind seen only once in 100 years in the 20th century will occur worldwide by the 2080s. Subaru’s key markets in the U.S.A., Japan, and Oceania will not escape these impacts.

The report also points out that the global mean sea level could rise by as much as 82 cm by the end of the 21st century, which would impact major coastal cities worldwide and has the potential to affect the Subaru Group’s business in some form or another.

2. Subaru will promote a medium- to long-term perspective in promoting environmental Initiatives

In light of this situation, we have been discussing our future approaches to environmental initiatives on our Environmental Committee (Chairman: Director of the Board and Corporate Executive Vice President).
In the process of these deliberations, the committee discussed setting an overarching target by backcasting from the future environment facing the Subaru Group, as well as examining approaches to implementing the action plan with a view to achieving that target.
As a result, the committee decided to start by setting an overarching target of reducing the Subaru Group’s direct CO2 emissions (Scope 1 and 2) from plants, offices, and the like, taking into account the fact that Subaru Environmental Policies position climate change as the most crucial issue to be tackled.
The new target is based on the IPCC’s 2°C scenario*1 and encompasses the ideas of Japan’s NDC*2 and SBT*3. We will assess and revise it as required, taking into account changes in society’s expectations, the technical environment, and the Subaru Group’s own circumstances.
As it appears difficult to achieve this target under our current medium- to long-term action plan, the Subaru Voluntary Plan for the Environment, we began formulating the Subaru Action Plan for the Environment in FYE2019 to serve as a new action plan to encourage the whole of Subaru to do its utmost to contribute to this goal.
While taking maximum advantage of the knowledge and know-how gained in the process of this initiative, the Subaru Group will move forward with deliberations concerning measures to reduce indirect CO2 emissions and address other environmental issues.

2°C scenario: A scenario in which CO2 emissions are reduced by approximately 40–70% worldwide by 2050 to keep the rise in global temperatures since the Industrial Revolution below 2°C
NDC: Nationally Determined Contribution. National targets submitted to the United Nations by each country that has ratified the Paris Agreement
SBT: Science Based Targets. A process formulated by the United Nations and other bodies, used to determine the CO2 reduction rates expected of companies and other bodies every five years from 2025

Subaru Action Plan for the Environment: Road Map

3. The Subaru Group will actively promote initiatives to tackle climate change

As the Subaru Group believes tackling climate change to be an issue of the utmost urgency, we are not only redoubling our efforts to conserve energy, but also introducing natural forms of energy that minimize CO2 emissions.
For example, we have adopted “Tochigi Furusato Denki” program at the Aerospace Company’s Utsunomiya Plant. Under this initiative, which is Japan’s first program for locally produced and consumed CO2-free electricity, power generated by hydroelectric plants belonging to the local government is supplied to the participating plants. The part of the electricity charges paid by Subaru will be used for environmental protection initiatives in Tochigi Prefecture.
We also plan to expand the use of natural forms of energy by installing Japan’s largest scale captive-consumption solar power system at the company’s Gunma Oizumi Plant (due to be completed before the close of FYE2020).
The Subaru Group will promote activities of this nature to strike a balance between the creation of low-carbon society in the areas and communities and the achievement of business sustainability.

“Tochigi Furusato Denki” program logo