SUSTAINABILITY

（1）Introduction of energy-efficient equipment
（2）Reduction of CO₂ emissions through the use of renewable energy
（3）Use of CO₂ capture, absorption, and storage technology and utilization of carbon offsetting

The Group’s energy conservation initiatives

（1）CO₂ emissions

（Unit: 1,000 tons CO₂）

（2）Energy consumption

（Unit: TJ）

Information Disclosure based on the TCFD (Task Force on Climate-related Financial Disclosures) Recommendations

The Osaka Steel Group assesses potential climate change impacts on its business operations, implementing measures to manage risks appropriately through adaptation while pursuing business opportunities.

Governance

We have established a Sustainability Committee chaired by our Representative Director and President, with members appointed by the chair. This committee identifies materiality, including climate-related matters, and deliberates sustainability strategies, regularly reporting to the Corporate Policy Committee and Board of Directors.
The Corporate Policy Committee and Board of Directors oversee risk management by reviewing regular reports on progress and target achievement from the Sustainability Committee.

Strategy

The Osaka Steel Group utilizes scenario analysis to assess climate change impacts on its business, implementing measures to manage risks appropriately while pursuing business opportunities.
The 1.5°C and 4°C scenario outlooks and main reference reports used in our analysis are detailed below.

Risk Management

Our Carbon Neutrality Promotion Committee identifies and evaluates climate-related risks and management issues, developing policies to minimize risks and seize opportunities, which are reported to the Sustainability Committee. The Sustainability Committee consolidates these with other sustainability matters and directs response measures to internal departments and Group companies. It also reviews the progress of response measures and achievement of targets, reporting regularly to the Board of Directors.

Metrics and Targets

We use greenhouse gas (GHG) emissions as our key metric for climate change initiatives. Our GHG emission performance is shown below. Scope 3 emissions (other indirect emissions beyond Scope 1 and Scope 2) are currently being calculated.

Notes:
1: Calculated for energy and carbon material-derived CO2 at manufacturing sites in Japan
2: Using a Ministry of the Environment database
3: Using adjusted emission factors (FY2023 confirmed values)

We have established a GHG reduction goal to decrease Scope 1+2 emissions by 46% from 2013 levels by 2030.
Progress toward last year’s target stands at 31%.

Contribution through the recycling of iron resources

Iron is an important material that is indispensable to today’s society. Excellent in terms of cost and production, it also supports our lives in various ways. At the end of its use, steel is sorted and captured as scrap. After scrap is melted and recycled in an electric arc furnace (EAF), recycled steel is sent back to our society. Osaka Steel is an EAF steelmaker, and EAF steelmakers engaged in the recycling of iron using this CO₂-free ironmaking process are gaining importance. Osaka Steel will contribute to the creation of a sustainable society through the very business of iron resource recycling.

Promotion of internal zero emission

Steel slags, dust, and other byproducts are generated in the ironmaking process, and in FY2022, some 90,000 tons of byproducts were generated when we produced about 800,000 tons of crude steel. Osaka Steel strives to reduce byproducts mainly by recycling most of them both internally and externally, and maintains a high recycling rate currently at approximately 90% or more. We will continue to promote efforts to achieve internal zero emission.

Acquisition of SuMPO EPD (formerly EcoLeaf) Environmental Label

The Osaka Steel Group has acquired the environmental label “SuMPO EPD※(formerly EcoLeaf)”, which is registered and published by the Sustainable Management Promotion Organization (SuMPO), for six products including Equal angles and other steel products. SuMPO EPD is one of the Environmental Product Declaration (EPD) certification programs compliant with ISO 14025 that aim to disclose environmental information on the entire life cycle of products (from resource extraction, manufacturing, and distribution to usage, disposal, and recycling) in quantitative terms using the life cycle assessment (LCA) method. This enables customers to use the label as evidence for judging when quantitatively and objectively evaluating the environmental impacts of products they use and purchasing environmentally conscious products.

If customers use a certain amount or more of products with a SuMPO EPD Environmental Label for their buildings, they can obtain additional points when applying for an LEED certification (America’s international performance evaluation system aimed at assessing the environment of buildings and cities). We expect to contribute greatly to customers who strive to acquire an LEED certification.