SustainabilityEnvironmentClimate change measures

TOCALO is adopting renewable energy sources and implementing other climate change initiatives to reduce CO₂ emissions.

Global warming mitigation

We are implementing comprehensive measures to reduce electricity consumption, installing energy-saving equipment, and planning to convert to renewable energy sources.

The Group’s CO₂ emissions are primarily the result of the energy sources we use, which include primary energy derived from fossil fuels, such as kerosene, diesel oil, LPG, and city gas, and the secondary energy source of electricity. Converted to CO₂, electricity accounts for the vast majority—83.49%—of our CO₂ emissions.

TOCALO takes meticulous steps to conserve electricity as a regular part of efficient business operations while also implementing measures including installing energy-saving equipment and upgrading aging equipment with environmentally efficient equipment.
We are also taking steps to convert to renewable energy sources that do not emit CO₂ in power generation. These steps include aggressive measures to reduce CO₂ emissions by using solar power to generate our own energy and by purchasing electricity generated from renewable energy sources.

While electricity consumption increased by 3% year-on-year in fiscal 2024, the effects of energy conservation measures were reflected in a 10% reduction in consumption per unit of sales. In addition, CO₂ emissions in fiscal 2024 were 9% lower year-on-year, while CO₂ emissions per unit of sales fell by 21% over the same period, thanks to our CO₂ emission reduction efforts.

Breakdown of energy consumption in fiscal 2023 (CO2 equivalent, consolidated) — Breakdown of consolidated CO₂ emissions (Scope 1, 2) in fiscal 2024

Change in CO2 emissions (Scope 1 and 2)(Non-consolidated) — Change in CO₂ emissions (Scope 1 and 2)(Non-consolidated)

Change in CO2 emissions (Scope 1 and 2)(Consolidated) — Change in CO₂ emissions (Scope 1 and 2)(Consolidated)

Electricity consumption (Non-consolidated)

Electricity consumption (Consolidated) — Electricity consumption (Non-consolidated)

TOPICS

Generating solar power at the Okayama Kurashiki Plant

Okayama Prefecture is known as the “Land of Sunshine” for its low annual rainfall and generally sunny weather. The new plant we opened in Kurashiki, Okayama, in April 2022 is equipped with the Company’s first full-fledged in-house power generation system including approximately 3,500 square meters of solar panels on its expansive roof.

The Kurashiki Plant’s solar power system generated electricity covering 19% of the plant’s total electricity need in fiscal 2024.
We have also been installing solar panels at other sites. As of June 2024, all of our plants and the technical service center have solar panels and are generating their own power.

Along with improving the efficiency of our production operations, using in-house generated electricity to meet our energy needs is a key step to reducing our CO₂ emissions. We plan to take this a step further by introducing in-house power generation that uses renewable energy sources to further reduce our environmental impact and greenhouse gas emissions.

Supporting the Kobe Airport Island Blue Carbon Project

“Blue carbon” is attracting attention as a new countermeasure for global warming. Blue carbon is the carbon that is absorbed by seaweed, sea grass, phytoplankton, and other sea organisms.
Kobe City is promoting blue carbon in its Kobe Airport Island Blue Carbon Project, which focuses on the various types of seaweed growing on the gentle stone seawall around Kobe Airport Island. The Japan Blue Economy Association certified the volume of CO₂ that the ecosystem is absorbing under its J Blue Credit program in 2022.

As a company headquartered near Kobe Airport, in 2023 we purchased J Blue Credits equivalent to absorbing 3.9 tons of CO₂ as one of our measures to counteract global warming. Through initiatives like J Blue Credit, we will continue to work with local communities to reduce our environmental impact.

Kobe City Carbon Neutral Port Initiative:
https://www-city-kobe-lg-jp.translate.goog/a49918/cnp.html?_x_tr_sl=ja&_x_tr_tl=en&_x_tr_hl=en
Carbon Neutral Ports Initiative:
https://www.mlit.go.jp/en/kowan/kowan_fr4_000011.html
Kobe City is promoting blue carbon initiatives to make Kobe Port a Carbon Neutral Port (CNP).

Monitoring survey (underwater photography)

Participation in the Osaka Bay MOBA Link Initiative

Blue carbon ecosystems benefit the environment in numerous ways, such as absorbing and fixing CO₂, improving water quality, and improving biodiversity. Taking the opportunity of the staging of World Expo 2025 in Osaka in the Kansai region, the prefectures of Osaka and Hyogo established the Members of the Osaka Bay Blue Carbon Ecosystem Alliance (MOBA) in January 2024 and are planning the Osaka Bay MOBA Link Concept to connect the entire Osaka Bay with a corridor of blue carbon ecosystems.

The TOCALO Headquarters, Kobe Plant, Akashi Plant, Akashi-Harima Plant, and Thermal Spraying Technology R&D Laboratories all face Osaka Bay, and we joined the Osaka Bay MOBA Link Concept to contribute our surface modification technology to realizing the concept’s goals.

Our efforts to develop and apply surface modification technologies to create habitats where algae can flourish also give us an opportunity to accumulate valuable elemental technologies.

Global warming has progressed to such an extent that the United Nations Secretary-General António Guterres said, “The era of global warming has ended; the era of global boiling has arrived.” We are participating in the Osaka Bay MOBA Link Concept to help realize its goal as quickly as possible and with the hope that the concept will be adopted in other places around the world.

For the latest information about the Osaka Bay MOBA Link Concept please visit
https://www.pref.osaka.lg.jp/o120070/kankyohozen/osaka-wan/moba.html (Japanese language only)

Demonstration seaweed bed created in the inner bay area

CDP certified scores of B for climate change and B- for water security

CDP is an international non-profit organization headquartered in London created in collaboration with institutional investors to collect information on environmental strategies and greenhouse gas countermeasures from major companies around the world. CDP analyzed the data and publishes the results.
In fiscal 2024, CDP evaluated some 24,800 companies—representing more than two-thirds of the worldwide market capitalization—on an eight-point scale for environmental disclosure and performance. The 2024 CDP Climate Change Report gave TOCALO a B score, third the highest, for climate change for the second consecutive year and a B- score, fourth from highest, for water security by a notch compared to last year’s C rating.

Third-party verification

To ensure our environmental data is transparent and accurate, TOCALO engaged third parties to verify the environmental data for fiscal 2024(April 2024 to March 2025) related to greenhouse gas emissions (Scope 1, 2, and 3), water consumption, and industrial waste emissions.

We continuously seek to ensure the highest quality of data by expanding the verification scope and improving data accuracy.

Independent Assurance Report 2025 (1290KB)

Independent Assurance Report 2024 (1290KB)