The SDGs set 17 goals that aim to solve problems around the world, such as the environment, discrimination, poverty, and human rights, by 2030. Among these, companies are expected to take measures to "make energy affordable and clean for all" and "take concrete measures against climate change." In particular, achieving carbon neutrality is an issue that many companies must address. In this article, we will provide an overview of the SDGs and their relationship to carbon neutrality, as well as the challenges faced by many companies, particularly those in the manufacturing industry, and the efforts being made to achieve them, with examples included.
What are the SDGs?
The SDGs were adopted at the United Nations Summit in 2015 and refer to the goals set out in the 2030 Agenda for Sustainable Development. There are 17 goals in four categories: society, economy, environment, and framework, and efforts are being made to achieve each of them. Specifically, they are as follows:
society
1. No Poverty
2. Zero Hunger
3. Health and Well-Being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
economy
7. Affordable and clean energy
8. Decent work and economic growth
9. Build infrastructure for industry and innovation
10. Eliminate inequalities between people and countries
11. Create sustainable cities and towns
12. Responsible consumption and production
environment
13. Take concrete measures against climate change
14. Protect the abundance of the ocean
15. Protect the abundance of the land
framework
16. Peace, justice and strong institutions
17. Partnerships for the goals
What is the relationship between the SDGs and carbon neutrality?
Carbon neutrality refers to reducing greenhouse gas emissions to zero overall. Specifically, it is not about reducing greenhouse gas emissions to zero, but rather absorbing the same amount of greenhouse gases as those emitted, bringing the impact on the total amount on the earth to zero.
Various efforts are being made in each country, and in 2020, then Prime Minister Yoshihide Suga declared that Japan would reduce greenhouse gas emissions by 46% by 2030 compared to 2013, and achieve carbon neutrality by 2050. Carbon neutrality in the SDGs is related to the seventh goal, "Affordable and clean energy for all," and the thirteenth goal, "Take concrete measures to combat climate change." Expanding the use of renewable energy that does not rely on petroleum-based resources, such as solar, wind, hydroelectric, and biomass. And achieving carbon neutrality by reducing greenhouse gas emissions will lead to the achievement of the SDGs.
The realization of carbon neutrality and its impact on the manufacturing industry
To achieve carbon neutrality, active efforts from the manufacturing industry are essential. This is because the manufacturing industry emits large amounts of carbon dioxide (CO2), the greenhouse gas with the highest emissions. Looking at CO2 emissions by sector, the "2021 Greenhouse Gas Emissions and Absorptions" published by the Ministry of the Environment and the National Institute for Environmental Studies shows that the industrial sector (manufacturing) accounts for 35.1%, or more than one-third of the total.
In other words, it can be said that it will be difficult to achieve carbon neutrality unless the manufacturing industry reduces its CO2 emissions.
Reference material: 2021 Greenhouse Gas Emissions and Absorptions | Ministry of the Environment and National Institute for Environmental Studies
For more information about carbon neutrality in the manufacturing industry, please see this article.
What should the manufacturing industry do to achieve carbon neutrality? Introducing measures and examples | Stratus Blog
Initiatives to achieve carbon neutrality
What kind of efforts are actually needed to achieve carbon neutrality? Here we will introduce some specific efforts.
- Expanding the use of renewable energy
Expanding the use of renewable energy sources that do not emit greenhouse gases, such as solar, wind, hydroelectric, and biomass, is expected to be highly effective in achieving carbon neutrality. - Promoting zero emissions
Promoting zero emissions, a resource-circulating social system that produces no waste, is also an essential initiative for achieving carbon neutrality. When waste is produced, energy is required to process it, which can be a factor in CO2 emissions. Therefore, zero emissions is an initiative to eliminate waste and reduce energy use. - Promoting carbon recycling
Carbon recycling refers to treating CO2 as a resource and reusing it as a new carbon compound. Specifically, CO2 emitted at thermal power plants, steel plants, and factories that manufacture chemical products is captured and reused in the manufacture of chemicals, fuels, minerals, and other products. This is an effort to reduce the amount of CO2 that would otherwise be released into the atmosphere.
Challenges in going carbon neutral
Achieving carbon neutrality is essential to achieving the SDGs, but it is no easy task.
In fact, the government plans to reduce greenhouse gas emissions to 46% below 2013 levels by 2030, but as of 2021, it is at -16.9%. Although it was declared in 2020, it has only been reduced by about 17% in the eight years since 2013, which is an average of about 2.1% per year. At this pace, it will only be possible to reduce emissions by 18.9% in the nine years until 2030, and even if we add the 16.9% in 2021, it will only be 35.8%. Since this is more than 10% short of the target, more proactive efforts are required than ever before.
Reference material: 4-01 Trends in greenhouse gas emissions in Japan (1990-2021) | National Center for the Promotion of Activities to Prevent Global Warming
We have already mentioned that the efforts of the manufacturing industry are essential to achieving carbon neutrality. However, the following challenges remain for any company, not just the manufacturing industry, to achieve carbon emission reductions.
- Difficulty in verifying efforts to achieve carbon neutrality To achieve
carbon neutrality, each company must accurately measure greenhouse gas emissions through their own efforts.
Measurements must be done not only for the company itself, but also for the supply chain. Efforts to measure emissions in the supply chain have only just begun, so various efforts will be required in the future. In addition, while "international division of labor" among companies has expanded rapidly in recent years, there is a problem with the current "production-based" CO2 emissions measurement, in which CO2 emitted during the production process of goods exported outside the country is also counted as emissions within the country. To better reflect the actual situation, "consumption-based" measurements are necessary, but this requires more precise data, making it difficult to achieve. - Reducing greenhouse gas emissions, which require high initial investment costs, requires not only the introduction of renewable energy sources but also energy conservation measures. Therefore, the increase in the cost of initial investment is also a major issue. On the other hand, an increasing number of countries in Europe and the United States have introduced carbon taxes, which have been effective to some extent in reducing CO2 emissions.
Carbon taxes are one of the carbon pricing methods that put a price on carbon, and are a policy that aims to curb CO2 emissions. Specifically, they require companies to bear a financial burden commensurate with their CO2 emissions, and it is said that Japan is also in the process of considering the introduction of taxes on fossil fuels, including a carbon tax. Measures
are also being implemented to reduce costs by reducing the tax burden on companies that have made efforts to reduce CO2 emissions, and if corporate awareness of the cost benefits of reducing CO2 emissions can be raised, it is expected that this will lead to the resolution of cost issues.
Examples of companies that are carbon neutral
We will introduce some examples of companies that have actually begun working towards carbon neutrality.
- Examples of companies working to expand renewable energy
One major supermarket has participated in the international initiative "RE100" since 2018, which aims to procure 100% of the energy consumed in business activities from renewable energy. In addition to using solar power generation systems on the roofs of its stores, the supermarket is also expanding and purchasing PPA models, which are mechanisms for utilizing electricity generated by solar power generation systems, and post-FIT electricity. It is also promoting direct renewable energy contracts in each region, and aims to switch 50% of the electricity used in its stores in Japan to renewable energy by 2030. - Examples of companies working to promote zero emissions:
A major drinking water manufacturer established Japan's first environmentally friendly factory with the aim of achieving zero emissions. The factory introduced renewable energy power generation equipment and boilers that use biomass fuel, making it a factory with zero CO2 emissions.
In addition, the amount of water used is kept to a minimum, and water is reused and conserved by being reused after treatment. The forests in the factory's water source recharge area are also being developed and preserved in order to nurture water. - Examples of companies working to promote carbon recycling:
A major general chemical manufacturer has developed polycarbonate made from alcohol and phenol in addition to CO2, and is using it for the exterior of personal computers. Another auto parts manufacturer is conducting research to have a new type of microalgae absorb the CO2 generated from its factory, and produce oil containing starch and diesel components through photosynthesis.
Achieving carbon neutrality in the manufacturing industry requires a company-wide effort
To achieve the SDGs, not only countries but also individuals and companies need to understand the importance and work on it. In this context, companies are being asked to achieve carbon neutrality by promoting the use of renewable energy and carbon recycling.
However, achieving carbon neutrality requires high costs, such as improving various facilities and introducing energy-saving measures. The standards for greenhouse gas emissions are also strict and cannot be achieved easily. Therefore, it is important to raise awareness even more and work on it as a company in the future. It can be said that what is being asked of many companies, especially those in the manufacturing industry, is to understand the outline of carbon neutrality and carefully consider what they can do as a company.
