Environmentally Friendly Products / Utilization of Life Cycle Assessment

• Basic approach
• Targets and achievements
• Redefining Products that Contribute to Sustainability
• Utilization of LCA
• Commitment to ISCC PLUS

Basic approach

We believe that it is important to reduce the environmental impact of our products in order to protect the environment, and we have established the Basic Policy on the Environment (revised in January 2024) and have been striving to provide environmentally friendly products and services "environmentally-friendly Products" from an early stage. In order to promote initiatives such as environmental conservation and sustainable procurement of raw materials, we are promoting manufacturing using LCA (Life Cycle Assessment) with the aim of reducing environmental impact throughout the entire life cycle, including raw material procurement, production, use, disposal and recycling.
In January 2022, we formulated our Sustainability Vision ASV2050/2030, and defined "sustainability-contributing products" by adding "environmental value," which aims to realize a society in which conventional environmentally-friendly products coexist with the environment, and "life value," which aims to realize a comfortable, healthy, and safe society. We aim to solve various social and environmental problems with the promotion of sustainability-contributing products as the goals and KPIs of the new medium-term management plan.

Targets and achievements

Targets

Goals for material issues (material issue 2)

artience Targets for 2027 (FY2024~FY2026)

Goals in asv2050/2030

Achievements

In fiscal 2023, net sales of environmentally-friendly products were 97.5 billion yen (down 7.1% from the previous year), and environmentally-friendly products accounted for 60.2% of net sales (down 2.2 percentage points from the previous year). The percentage of sales of environmentally-friendly products decreased slightly due to the increase in sales of all products, but the proportion of sales of laminating adhesives and UV-curable inks increased.

Aggregation Scope:
(1) environmentally-friendly Products will be provided by a total of five domestic companies in FY2021~2023: core operating companies (TOYOCOLOR Co., Ltd., TOYOCHEM Co., Ltd., TOYO INK Co., Ltd.) and affiliated companies (TOYO VISUAL SOLUTIONS Co., Ltd., Toyo-Morton Co., Ltd.))
* In FY2018~FY2020, there were a total of 6 companies, including Toyo Adre Co., Ltd., but in FY2021, Toyo Adre Co., Ltd. was absorbed by TOYOCHEM Co., Ltd.
(2) Sustainability contribution products are comprised of seven domestic companies (TOYOCOLOR Co., Ltd., TOYOCHEM Co., Ltd., TOYO INK Co., Ltd.)) and affiliated companies (TOYO VISUAL SOLUTIONS Co., Ltd., Toyo-Morton Co., Ltd., MATSUI CHEMICAL Co., Ltd., and TOYO B-Net Co., Ltd.), as well as overseas bases (some sites are not included in the calculation).

Redefining Products that Contribute to Sustainability

In line with the formulation of ASV2050/2030, artience group has added standards for products that have not only "environmental value" but also "life value," and from FY2023, we have redefined the conventional definition of environmentally-friendly products as sustainability-contributing products.
In the past, environmental standards such as the absence of hazardous chemical substances were the main focus of environmentally-friendly products, but in the area of "environmental value," we have changed the standards and directions (decarbonization, resource recycling, and coexistence with nature) to be conscious of providing value to the entire supply chain in order to contribute to the sustainability of the entire supply chain.
In terms of "life value," we have set standards and directions that will enable us to contribute to society and make proposals by further enhancing fields such as digital-related materials for IoT and high-speed communications and sensor materials (safety of autonomous driving and comfort of the living environment).

environmentally-friendly Redefining from a product to a product that contributes to sustainability

environmentally-friendly Redefining from a product to a product that contributes to sustainability

Utilization of LCA

The Group is working to visualize its environmental impact using Life Cycle Assessment (LCA), which is a method for quantitatively assessing the environmental impact of a product's life cycle, including raw material procurement, production, use, disposal, and recycling.
In response to the growing demand for disclosure of greenhouse gas (GHG) emissions from Europe and other industries in recent years, we are building an initiative system that includes the formulation of rules for calculating greenhouse gas emissions (carbon footprint, CFP) for each product and the development of a system in order to provide the value of low-carbon and decarbonized products that solve climate change issues.
At present, we are using the average GHG emission factors that are publicly available, but we will promote cooperation and collaboration with the supply chain to utilize the actual emission factors, which will lead to the design, development, and provision of products that take into account lower carbons.

Examples of initiatives

• Development of human resources who have acquired SuMPO Certified LCA Experts
• Establishment of a CFP Initiative System for Each Product
• Promoting low-carbon value in the product development phase and business exploration (e.g., deinking)

TOPICS
Further reduction of environmental impact by expanding the use of environmentally friendly pressure sensitive adhesives (hot melts for roll labels)

The hot melts pressure sensitive adhesives for roll labels, which are often used in PET bottled beverages, can be easily peeled off, and even if the label is still attached, it can be separated by the alkaline peeling property of pressure sensitive adhesives, making it easy to separate and contribute to the efficiency of recycling. In addition, by reducing the amount of material used as much as possible by making the label base material thinner and partially coating the pressure sensitive adhesives, it is possible to reduce the environmental impact (CO2 emissions) compared to other label systems. TOYOCHEM Co., Ltd. is developing new products for hot beverage bottles in vending machines and proposing non-beverage containers such as daily necessities and seasonings with the aim of further expanding the use of roll labels, and will continue to focus on initiatives aimed at contributing to a recycling-oriented society.

Mr. Miyazaki(left) and  Mr. Suzuki(right) of TOYOCHEM Co., Ltd.

Ms. Arai of Toyochem CO., Ltd.

CO2 emissions by label (CO2 emissions per unit area)

CO2 emissions by label (CO2 emissions per unit area)

* Figures are calculated in-house and have not been verified by a third party.

Commitment to ISCC PLUS