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Endeavor to Create a Circular Economy

Carbon Neutral Strategy

Carbon Neutrality Declaration

The Mitsui Chemicals Group believes that, as a chemicals company, we have an important role to play in helping to build a sustainable society that can limit the average global temperature rise to 1.5 degrees Celsius. Therefore, in November 2020, we declared our commitment to become carbon neutral by 2050. We developed a carbon neutral strategy which is centered around the two pillars of (1) reducing our own GHG emissions (Scopes 1 and 2), and (2) maximizing the avoided emissions of our products over their entire life cycle, and have implemented concrete measures that contribute to the transformation of society.

Following the full-scale launch of the Japanese-Government-led emissions trading scheme (GX-ETS) in fiscal 2026, shifting from fuels with high GHG emission factors to fuels with lower emission factors has become increasingly important to achieving carbon neutrality.

The Group will respond flexibly and swiftly to changes in society and regulatory frameworks, steadily advancing efforts to achieve its own targets while contributing to the GHG reduction targets set by the government.

The Mitsui Chemicals Group’s Carbon Neutrality Strategy

Strategy (1) Reducing GHG Emissions (Scopes 1 and 2) of the Mitsui Chemicals Group

The Mitsui Chemicals Group aims to reduce its GHG emissions by 40% by fiscal 2030 relative to fiscal 2013 levels to make important progress toward the goal of achieving carbon neutrality by 2050. This is one of our non-financial targets in VISION 2030. To this end, we have made progress toward achieving our FY2030 GHG emissions reduction target by advancing discussions on several initiatives, including: the consolidation of naphtha crackers within the LLP with Idemitsu Kosan Co., Ltd. in the Keiyo area; the installation of ammonia-fueled crackers at our Osaka Works with aid from Green Innovation Fund*; and the promotion of energy efficiency and the introduction of renewable energy.

We will sequentially implement low-carbon and decarbonization measures, while optimizing naphtha cracker production capacity and greening the cracker operations through a joint venture with Asahi Kasei Corporation and Mitsubishi Chemical Corporation in western Japan. While this presupposes that markets, customer needs, regulations, infrastructure and other aspects of the external environment will continue to evolve, by 2050, in addition to implementing the aforementioned measures, we intend to achieve a reduction in GHG emissions of at least 80% by further accelerating fuel switching and regional collaborations as well as carbon capture, utilization, and storage (CCUS). We also plan to move forward with the development and implementation of carbon-negative technologies to tackle the remaining 20%.

Measures and Outcomes of the Group

Strategy (2) Maximizing Avoided Emissions Through Provision of Our Products

Through our supply of Blue Value™ products that make significant environmental contributions, we aim to maximize GHG emissions avoided over the entire product life cycle. In this way, we intend to help all of society achieve carbon neutrality. We have set a target of 40% or more for the sales revenue ratio of Blue Value™ products as one of our non-financial targets in VISION 2030, and we have reflected this in the strategy of each business.

In addition, for some of our Blue Value™ products, we calculate the contribution of avoided emissions under the review of outside experts. By sharing the results of the calculations with our stakeholders, we have continued efforts to make our contributions more visible. In FY2025, we estimated avoided emissions of approximately 3.7 million tons per year.

Maximizing Avoided Emissions Through Provision of Our Products

Initiative 1:

Reforming main chemical complexes and driving greener operations toward carbon neutrality

To achieve carbon neutrality, Mitsui Chemicals is promoting the structural reform and decarbonization of its chemical complexes in eastern and western Japan in an integrated manner.

In the Chiba district, against the backdrop of declining domestic demand and intensifying international competition, we have agreed with Idemitsu Kosan Co., Ltd. to consolidate the naphtha crackers into a single unit, with the aim of optimizing the production system around 2027. Through this consolidation, we will improve facility utilization rates and enhance energy efficiency, simultaneously aiming to reduce GHG emissions and strengthen our competitiveness. Furthermore, we plan to maintain joint operations post-consolidation while strengthening our collaboration with a long-term view toward transitioning to a green chemical complex.

In western Japan, we are collaborating with Asahi Kasei Corporation and Mitsubishi Chemical Corporation to integrate naphtha crackers and promote decarbonization, targeting fiscal 2030. Specifically, while enhancing efficiency through facility consolidation, we aim to establish a decarbonized manufacturing process for basic chemicals by shifting to bio-based raw materials and implementing new technologies. Additionally, utilizing a government support project (the Ministry of Economy, Trade and Industry’s “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries”), we will promote the demonstration and commercialization of chemical manufacturing technologies derived from bioethanol, thereby promoting the decarbonization of naphtha crackers and optimizing the production system.

In this way, we are advancing clean energy transition toward carbon neutrality in stages, driven by the twin pillars of greater efficiency through facility consolidation and lower carbon emissions through shifts in feedstocks and production processes.

Initiative 2:

Driving green transformation and carbon neutrality in logistics

Mitsui Chemicals is systematically advancing initiatives in the field of logistics to achieve carbon neutrality.

First, to enhance transport efficiency and reduce CO₂ emissions, we are driving visualization and optimization through digital transformation in logistics. By designing optimal logistics routes based on transport lane data, we have implemented relay transport and modal shifts, working to streamline long-distance transport and reduce driver workloads. In recognition of these achievements, we jointly received the Encouragement Award at the 26th Logistics Environmental Award, with Sankyu Inc. and Dow-Mitsui Polychemicals Co., Ltd., our partners in the initiative.

Additionally, in 2025, we commenced demonstration trials for collaborative logistics involving multiple companies through the Chemicals Working Group of the Physical Internet Realization Council, which is led by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Through modal shifts leveraging rail transport and shared container operations, we aim to resolve transport capacity shortages while reducing GHG emissions and the number of trucks.

In 2026, we leveraged digital tools to optimize our port selection, shifting and consolidating shipments from the Port of Tokyo to the Port of Chiba. This has shortened land transport distances and enabled us to avoid traffic congestion, thereby reducing both GHG emissions and driver working hours between the port and warehouses by approximately 70%.

In these ways, by combining measures such as digital-driven visualization and optimization, modal shifts, and collaborative logistics, we aim to both reduce logistics-related GHG emissions and ensure stable transportation, thereby steadily promoting carbon neutrality across the entire supply chain.

Rerouting land transport by optimizing port selection

Initiative 3:

Carbon-Negative Technology – Successful Demonstration of Methanol and Para-Xylene Synthesis From CO₂

Mitsui Chemicals, Inc., in collaboration with Osaka University and Kawasaki Heavy Industries, Ltd., has successfully conducted a demonstration test of a technology for synthesizing para-xylene using methanol derived from CO₂.

Methanol, in addition to its conventional use as a chemical feedstock, is now being utilized as a low-environmental-impact fuel for ships and other applications. Para-xylene is widely used in the production of polyester resins for clothing and plastic bottles. By converting CO₂—captured from the atmosphere via direct air capture (DAC) or collected from industrial emissions—into methanol and para-xylene, this approach contributes to both the reduction and fixation of CO₂ emissions.

The production method developed in this project enables a significant reduction in CO₂ emissions compared with conventional petroleum-based processes. Going forward, we will continue to advance this development and promote efforts toward commercialization, contributing to the realization of a carbon-neutral society.

This initiative was carried out as part of the Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation project, a program run by the New Energy and Industrial Technology Development Organization (NEDO).

Figure 2 Overview and output of this project

Osaka University, Kawasaki Heavy Industries and Mitsui Chemicals Successfully Synthesize Methanol and Para-xylene From CO2

Other Initiatives

Energy Efficiency: Adoption of Energy-Saving Process Using LNG Cold Energy

Renewable Energy: Installation of Solar Power Generation Facilities under a PPA Model at Nagoya Works