Teijin Limited announced that it has introduced an internal carbon pricing (ICP) system for capital investment plans throughout the group. The ICP mechanism creates economic incentives to reduce CO2 emissions by quantifying CO2 emissions as costs that the company can consider when making investment decisions, ultimately to help address the problem of climate change.Teijin will apply its ICP system to all future capital investment plans that are expected to impact the group’s CO2 emissions.
Teijin’s goals for lowering the groupwide environmental impact include reducing CO2
emissions in fiscal 2030 by 20% compared to the fiscal 2018 level, and then achieving
net zero emissions by fiscal 2050. In addition, Teijin is striving to lower CO2 emissions
in its supply chain, specifically to make the amount of avoided emissions by use of its
products larger than actual emissions groupwide, including from the group’s upstream
supply chain.
Through the launch of this new ICP system, Teijin expects to implement capital
investment plans that contribute to its long-term goals for CO2 emissions reduction and
to prepare the company for expected future rises in global carbon prices.