Efforts in the Sanitary Facilities Equipment Industry for Measures Against Global Warming - Results Report for FY 2015 Low Carbon Society Implementation Plan February 2017 Japan Sanitary Equipment Industry Association
Contents 1. Overview of Sanitary Equipment Manufacturing Industry 2. Overview of "Low Carbon Society Implementation Plan" of Sanitary Equipment Industry 3. Reduction of Emissions in Domestic Business Activities 4. Enhancing Cooperation between Main Constituents 5. Promotion of International Contribution 6. Development of Innovative Technologies 7. Reduction Target after FY 2020 (formulated February 2015) 1
1.Overview of Sanitary Equipment Manufacturing Industry 1 Manufacturing Industry Producing Sanitary Equipment - Toilet bowls, urinals, wash basins, etc. - Water related equipment (home, public) Industry size (FY 2015) - Number of companies: 3 Companies (centered on large companies) - Market size: approximately 630.1 billion yen Current State of Industry - In fiscal 2015, due to the influence of decline in crude oil prices around the end of 2014, the trend of gradual recovery continued at the start of FY 2015. However, after the summer of 2015, because of the economic downturn in China, etc. business confidence deteriorated and this also had a strong influence on Japan. - The number of new housing in FY2015 increased by 4.6% compared to the previous year with 920,000 units and was the first increase in 2 years. It surpassed the 890,000 units in FY 2012 before the increase in consumption tax and the impact of the increase in consumption tax was minimal. - The carbon emission factor associated with the use of electricity which began to decline in FY 2014, continued to decline. - The volume of production which is an indicator of the amount of production activity of the industry was 630.1 billion yen (-1.8% from the previous year and 17.6% increase compared to FY 1990). 2
1.Overview of Sanitary Equipment Manufacturing Industry 2 Overview of sanitary ceramics production process (representative products of the industry) - About 60% of energy consumption in sanitary ceramics production process is in the firing process - Energy consumption of the entire industry including other production processes is about 60% of electricity, about 40% of fuel Raw Materials Fine Grinding Curing Casting Product Auxiliary Glazing Drying Materials Recycle Raw Materials Fuel Firing Inspection Packing and Shipping Source: Ministry of Economy, Trade and Industry / Trash clipart Waste - Emissions Source: Ministry of Economy, Trade and Industry / Trash clipart 3
1.Overview of Sanitary Equipment Manufacturing Industry 3 Participation in the Japan Business Federation (Keidanren) Environment Voluntary Action Plan (global warming countermeasures) - From FY 2001, goals were set as the (former) Japan Sanitary Equipment Industry Association, and launched voluntary action WG. - April 2015 The Japan Sanitary Equipment Industry Association and the Japan Toilet Seat Appliances Association merged and newly became the Japan Sanitary Equipment Industry Association", but each Sanitary Facilities and Equipment Manufacturing company continued voluntary action WG. FY 2001 FY 2005 FY 2007 FY 2010 FY 2013 FY 2014 2015 ~ Participated from the 4th Japan Business Federation Voluntary Action Plan Follow-up (Global Warming Countermeasures) Goals set as the former Japan Sanitary Equipment Industry Association Launching of Voluntary Action WG "Reduce CO2 emissions from production factories in FY 2010 by more than 20% compared to FY 1990 levels. Reporting started for Ministry of Economy, Trade and Industry "Global Warming Countermeasure Efforts" Target value raised "Reduce the average value of CO2 emissions during 5 years from FY 2008 to FY 2012 (first restraint period of the Kyoto Protocol) generated in production plants by 25% or more compared to FY 1990 levels" Reduction target of the Japan Business Federation Environmental Headquarters "Low Carbon Society Implementation Plan (Phase I) after Voluntary Action Plan" "Reduce CO2 emissions from production bases in FY 2020 by 35% or more compared to FY 1990 levels. End of reporting on first commitment period settled in the Kyoto Protocol, voluntary action plan target achieved. Average value of results for FY 2008 to FY 2012-50.3% (compared to FY 1990) Examine and report reduction target of the Japan Business Federation Environmental Headquarters "FY 2020 and after (Low Carbon Society Implementation Plan (Phase II))" Continue reporting efforts to the Japan Business Federation and Ministry of Economy, Trade and Industry 4
2.Overview of "Low Carbon Society Implementation Plan" Target Index: CO₂ emissions (FY 2020) *Formulated in September 2010 - Reduce CO2 emissions in FY 2020 generated at production bases by 35% compared to FY 1990. (As an industry strive to target 40%) Low Carbon Society Implementation Plan Phase I (2020) Background on Target Formulation - The forecast for activities for FY 2011 and later was based on the economic growth rate indicated by the Japan Business Federation Follow-up, and the number of housing construction in the future, progress of trend for toilets in 2 location for renovations and detached houses, standardization of universal design in public spaces and introduction of environmentally friendly products (water conserving toilets) that reduce CO2 emissions during use, etc., were taken into consideration. Applicable to the domestic production bases for sanitary facilities and equipment of each company participating in the Low Carbon Society Implementation plan. 5
3.Reduction of Emissions in Domestic Business Activities 1 FY 2015 Achievements *Low Carbon Society Implementation Plan Phase I (2020) - CO2 Emissions: 199,000 t-co2 (-60.0% of FY 1990) * Target achieved *Reduction Target (formulated September 2010) Reduce CO2 emissions of FY 2020 by 35% or more CO2 Emissions [10,000t-CO2] (compared to FY 1990) 60 50 40 30 20 10 0 FY 1990 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 CO2 Emissions / Basic Unit Changes Voluntary Action Plan Low Carbon Society Implementation Plan 35% (compare to FY 90) FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2030 0.00010 0.00009 0.00008 0.00007 0.00006 0.00005 0.00004 0.00003 0.00002 0.00001 0.00000 CO2 Emissions Basic Unit [10,000t-CO2/million yen] CO2 Emissions [10,000t-Co2] CO2 Emissions Forecast CO2 Emissions Basic Unit [10,000t-Co2 / million yen] CO2 Emissions Basic Unit Forecast *Participating companies: Janis Ltd., TOTO (including TOTO SANITECHNO), LIXIL (Japanese alphabetical order) 6
3.Reduction of Emissions in Domestic Business Activities 2 Continuing manufacture of highly efficient products such as renovation of manufacturing facilities also in FY 2015 - Significant reduction results anticipated from change in fuel for existing kilns, etc., (shift to small CO2 emission factor fuel) completed. - Transitioning to detailed measures however continuing investment in CO2 reduction. Major measures implemented in FY 2015 CO2 Reduction per FY (t-co2) Investment Amount (1,000 yen) Tunnel kiln updated *Best practice described later 706 398,500 Updated to highly efficient air conditioning equipment and production facilities 4,852 430,990 Factory lighting to LED 26 3,266 Gas heat pump updated 7 26,500 Consolidation of production 7 139,600 Tunnel Kiln updated (described later) LED lights installed in factory Transformer updated 5 6,270 Substation updated 3 47,000 Total 5,606 1,052,126 Unified management of entire lighting of logistics building 7
4.Enhancing Cooperation between Main Constituents 1 Improvement and dissemination promotion of low-carbon products - Improved performance of water conserving toilets, integrated bidet toilet seats, etc. - Educational activities on Japan Rest Room Industry Association website. Toilet Bowl Flush Water Volume 1970s: 13 liters 1990s: 8 liters 2006 and later: 6 liters Energy saving bidet toilet seat (FY 2015, FY 2005 comparison) On-demand type: about 33% energy saving Hot water storage type: about 31% energy saving Hot water storage type: System where water in tank is heated and abundant hot water available by warming water in the tank with a heater, however electricity to maintain heated water necessary. On-demand type: No tank, water instantly heated each time used. Electricity to maintain heat is unnecessary and power consumption is less than "Hot water storage type", however the amount of hot water is limited. Additionally, a large amount of power is needed at instantaneous intervals. 8
4.Enhancing Cooperation between Main Constituents 2 Efforts at Business Sector - Each company promotes CO2 reduction activities throughout entire company including business sector. Initiatives in Transport Sector - Each company as a consignor, collaborates with transport companies to carry out measures to improve transport efficiency. 1) Review logistics plan (redistribution base improvement, routine routes, etc.) 2) Improve transport efficiency (loading efficiency, request drivers to undertake eco-driving, etc.) 3) Periodic reports as specified consignor of energy conservation law Efforts to disseminate information - Industry Association: Introduce reducing CO2 through water conservation on website. - Individual Companies: Posted environmental initiatives on each company website. Light Switch Array Reduction of showroom lighting http://www.janis-kogyo.co.jp/aboutus/quality_control.html http://www.toto.co.jp/company/environment/green/index.htm http://www.lixil.com/jp/sustainability/environment/ 9
5.Promotion of International Contribution International Contribution through Dissemination of Water Conserving Toilets - Participating in the promotion (Ministry of Economy, Trade and Industry Policy, Construction Materials Industry Association Contracted Project) of Green Construction Materials Business (nickname name), dissemination activities of Japan's water conserving toilet standards (not just "water conserving") but also 1 bowl surface washing, 2 flushing performance, 3 satisfaction of all conveyance performance) to ASEAN countries. - Efforts by individual companies such as "Global introduction and dissemination of water conserving products", "providing simple toilet pans that do not use water" Participation in promotion of Green Construction Materials Business (nickname) Standards/Certification System Meeting with Standards / Certification Body Indonesia 1 Joint seminar held (August) @ Bandung 2Technical exchange meeting held (December) @ Tokyo Global Introduction and Dissemination of Water Conserving Products (Individual Companies) Effort achievements of FY 2015: CO2 emissions reduced by 2.87 million tons - Water conserving toilet shipment ratio / Domestic 78%, Overseas 59% - Water consumption when products used / 6.6 million m3 reduction When product disseminated with same capacity of 2005 660 million m 3 Fiscal 2017 target Volume of contribution to water conservation Reduction of 700 million m 3 When evolved product introduced and disseminated Presentation of excellence, standards, certification system of Japan's water conserving toilets adoption of JIS (Standard) Achieved Target Target 10
6.Development of Innovative Technologies Best Practice, Introduction and promotion of BAT *1 - The firing process in the production for sanitary ceramics consumes a large amount of energy and has been updated to realize a labor conserving, energy conserving tunnel kiln *2. - When updating production facilities, highly efficient equipment is introduce in practical stages and maximum introduction of Top Runner equipment is promoted for production base infrastructure such as air conditioning, lighting equipment, compressors, etc., Update of Kiln Introduction of BAT Conventional brick-layered kiln updated to highly combustion efficient, high thermal insulation ceramic fiber tunnel kiln, 706 t- CO2 / year reduction. The illuminance of the 5,000 units of LED lights for the logistics building can be set for each unit of the lighting areas, allowing unified management in the control room. Updated to the latest compressor Updated to Top Runner transformer *1 BAT: Best Available Technology *2 Tunnel kiln: a continuous firing kiln for ceramic toilets, etc. Trucks carrying objects to be fired are placed in a tunnel shaped kiln and sequentially preheated, fired and cooled while moving through the tunnel and sent out the opposite side of the tunnel. All processes are continuously carried out and the advantages are consistent products can be produced in large volumes and is highly economically efficient with fuel expenses and costs. 11
7. Reduction Target after FY 2020 (formulated February 2015) Low Carbon Society Action Plan Phase II (2030) (formulated in February 2015 Review in FY 2017) - Reduction target: Reduce CO2 basic unit by 49% compared to FY 2005 *FY 2030 basic unit: 32t - CO 2/100 million yen (Standard FY, FY 2005) Note: Review of standard year and target value carried out every 3 years. Basis for Setting - In the mid to long term, the trend for the number of housing developments in Japan is on the decline, however production activity volume is anticipated to be steady due to expansion of the home renovation market, development of high value added products by every company and efforts to expand applications. - Additionally, it is anticipated that the volume of production activity will increase, such as the demand rush before consumption tax increase and the special demand from the Tokyo Olympic Games. However, it can be considered that a subsequent reduction in demand reduction will also occur. - The forecast for the long-term trend of the housing construction materials market is that there will be no expansion and will be steady. - On the other hand, fuel conversion that contributed to the reduction of CO2 emissions was completed around FY 2005 and following this, the energy structure became highly depended on electricity and the volume of CO2 emissions derived from electricity increased by more than 50% in FY2013. In the future, use of electricity will further increase with the introduction of automated facilities in the production process and the outlook for the electrical power emission coefficient is also uncertain. 12
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