Our Initiatives Toward Carbon Neutrality in the Cement Industry
Japan’s Cement Industry and CO2 Emissions
Introduction
The majority of the raw materials for cement consists of limestone. Japan is one of the world’s leading countries in terms of both the volume and quality of its limestone resources. For over 100 years, Japan’s cement industry has contributed to the construction of the country’s infrastructure by leveraging these abundant limestone resources.
In cement manufacturing, limestone is blended with raw materials containing silica and alumina, along with iron ore, and then fired at 1,450°C in a rotary kiln. In addition to the CO2 emissions generated by the combustion of fossil fuels during this process, CO2 is also released by the decarbonation reactions that the limestone undergoes. The former is known as
energy-related emissions, while the latter is referred to as process-related emissions. Process-related emissions account for approximately 60% of the CO2 emissions at cement plants.
Value Creation Story
Current Status of CO2 Emissions from the Cement Industry
Sustainability
To help achieve a recycling-oriented and decarbonized society, and to respond to the needs of the times by providing solutions to environmental issues as an “environmental solutions company,” we are pursuing initiatives aimed at balancing the sustainable and healthy development
Cement manufacturing
Approximately 40%
Energy-related (fossil fuels and electricity consumption)
CO2
emissions
Approximately 60%
Process-related (limestone decarbonation*)
* CaCO3 CaO+CO2
Limestone
of the Group with the resolution of social issues.
Japan’s Greenhouse Gas Emissions Data: Final Figures for Fiscal 2020 (Source: National Institute for Environmental Studies)
Other
47 Our Initiatives Toward Carbon Neutrality in the Cement Industry
48 Sustainability Advancement Framework
49 Sustainability Strategy
50 Greenhouse Gas (GHG) Reduction Targets for 2030 and Status of Initiatives
52 11 Steps to Carbon Neutrality by 2050
6%
Energy 7%Tertiary Industry 17%Household 16%Transportation 18%
Domestic CO2 emissions
by sector
Sustainability
Manufacturing 36%
Other 7%
Non-Ferrous Metals
4%
Food & Beverage
5%
Paper & Pulp 5%
Machinery 12%
Value Creation Strategy
Manufacturing CO2 emissions by manufacturing industry
Steel 35%
Chemicals 16%
Ceramics &
Cement
16%
Our Progress Toward Reducing Greenhouse Gases
54 CCU Using CO2 Recycling Artificial Limestone
58 TCFD-Based Information Disclosure
60 Scenario Analysis and Impact Evaluation Related to Climate Change
62 Responding to a Wide Range of Rule-making Activities
64 Contributing to the Development of a Recycling-Based Society
66 Environmental Management
Following the Japanese government’s “2050 Carbon Neutral Declaration” in October 2020, in December 2020 the Company formulated and announced SOCN2050, outlining its roadmap toward carbon neutrality by 2050, as well as specific reduction targets for 2030. Since then, we have been working to reduce greenhouse gases (GHGs) in several ways, including through being selected for the Green Innovation Fund project operated by NEDO (New Energy and Industrial Technology Development Organization), and participating in the GX League led by the Ministry of Economy, Trade and Industry. Furthermore, we launched operations at a pilot-scale manufacturing test facility for CO2 recycling artificial limestone in April 2025, and have been reconfiguring our organization to strengthen our framework.
Governance
Meanwhile, the government has revised its Strategic Energy Plan and its Plan for Global Warming Countermeasures, and submitted new emissions reduction targets for Japan-its Nationally Determined Contributions (NDCs)-to the United Nations in February 2025. Furthermore, various programs, such as an emissions trading scheme, are scheduled to be introduced over time under the revised GX Promotion Act. In light of these changes in the external environment and other factors, we are currently working on revising our SOCN2050.
67 Environmental Initiatives
2019
2020 2021
2022 2023 2024 2025
Data Section
70 Biodiversity and Natural Capital Initiatives
Aug. Identified SDGs Identified five materiality items
Apr. 2050 Carbon Neutral Task Force Established the Sustainability Department
Aug. Endorsed TCFD
Apr. Established the Sustainability Committee, by reconfiguring the Sustainable Measures Committee, and established the Carbon Neutral and Environment Subcommittee
Apr. Reconfigured the Sustainability Promotion Office as the Sustainability Promotion Department to strengthen
the organizational structure Commenced pilot-scale test
46
Sumitomo Osaka Cement Co., Ltd.
Apr. Established the Sustainable Measures Committee
Dec. Announced the 2050 Carbon Neutral Vision “SOCN2050”
May Participated in the GX League
Jan. Project selected by the Green Innovation Fund
47
INTEGRATED REPORT 2025
manufacturing for CO2 recycling artificial limestone (Green Innovation Fund project)
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