[INTERVIEW] Energy-Saving and Decarbonization Strategies – Interview with Tsuyoshi Furusawa, Executive Officer of TANAKA PRECIOUS METAL TECHNOLOGIES –

Energy conservation and creation as the core of the "POLARIS" initiative
Carbon neutrality through precious metal recycling

Focusing on energy saving and energy creation

――Please tell us about the overall picture of your energy-saving and decarbonization strategy.

古澤：In response to the government's declaration to achieve carbon neutrality by 2050, we began study sessions, mainly among executives, to consider what we should do. In 2022, we launched the "Polaris Project." The term "Polaris," which means the North Star, has been used as a guide for navigation and direction since ancient times. We chose this name in conjunction with the long-term goal of carbon neutrality. Given that this is a long-term and grand plan, we added the term "Project". This is a company-wide project directly under the President, and we are currently engaged in various activities.

As a mid-term target for reducing greenhouse gas emissions, we set a target of reducing emissions by more than 50% compared to 2013 levels by 2030. As of 2023, we have been able to reduce emissions by 23%. The Company has factories, technology sites, sales offices, stores, and offices, but factories consume overwhelmingly more energy than the others. Therefore, we are considering measures at factories based on two main pillars: energy conservation and energy creation. We are implementing energy-saving measures at factories, including energy conservation for air conditioning and lighting, the installation of power monitoring meters for each system, and the proactive introduction of sensors to detect air leaks in compressors. On the other hand, as part of energy creation, we have introduced solar power generation at all factories except one in urban areas. At each factory, solar power generation accounts for about 5% of electricity consumption. In addition, we have also been taking measures with the help of energy-saving consultants who provide third-party assessments. Furthermore, in terms of budgeting, we have established a framework that allows us to focus specifically on carbon neutrality, separate from investments in production equipment, and are prioritizing energy conservation and energy creation. In addition, we are also promoting contracts for 100% renewable energy. Recently, we have decided to install a stationary pure hydrogen fuel cell system with one of the largest power generation capacities in Japan, 500 kW, at our Shonan Factory in Hiratsuka City, Kanagawa Prefecture. It is scheduled to start operation in 2026. We consider contributing to a hydrogen society and hydrogen business to be very important, and this is a bold investment.

For sustainable development

――What specific activities are being carried out as part of the Polaris Project?

Furusawa: This initiative began as a project in FY2022, and I am responsible for it as the project leader. The actual activities differ depending on the workplace, such as factories and sales offices, so we share progress reports on various activities at project reporting meetings and, if necessary, expand them within the Company. Furthermore, as this will be a long-term initiative toward 2050, we hold various study sessions to enhance our knowledge and ensure that the initiative does not become a mere formality. We invite external experts to update information and knowledge on hydrogen strategies, next-generation perovskite solar cells, and trends in our customers' industries, such as semiconductors and automobiles, to understand what each industry is aiming for.

Expectations for Catalysts

――Many of the precious metals you handle contribute to energy saving and decarbonization, and I believe there are areas where you are focusing on as a business.

Furusawa: For example, there is platinum. As a precious metal with excellent catalytic properties, it plays an important role that is essential for technologies aimed at achieving carbon neutrality. As we shift toward carbon neutrality, I believe that there will not be a day when we do not hear in the news about the arrival of a hydrogen society. Platinum is used as a catalyst in fuel cells that use hydrogen. Furthermore, iridium catalysts are used in water electrolysis equipment for hydrogen production, and both are areas of expertise for us. We have a long history of research and development on these catalysts and have now become a leading company with a top share globally. The areas of hydrogen utilization where the use of catalysts is anticipated are rapidly expanding in passenger cars, buses, trucks, and forklifts, and with the introduction of hydrogen in ships, railways, and aircraft, we are currently preparing our production system at our overseas bases to meet this demand.

Precious metal recycling is also one of our core businesses. We offer a series of products using 100% recycled precious metal materials. This is because we engage in a series of circular businesses that involve manufacturing and selling, as well as recovering and remanufacturing. We intend to continue utilizing this business model in the future. For example, when comparing the CO₂emissions of precious metals from mines and those recovered from urban mines, the difference is said to be between 30 and 200 times depending on the type of precious metal. This recycling business contributes to a circular society and is also linked to carbon neutrality.

Reducing CO ₂ emissions in the supply chain

――What measures will you take to reduce CO₂emissions, focusing on those from production activities, as well as those throughout the entire supply chain, including so-called Scope 3?

古澤：We have a preliminary understanding of Scope 3 figures. One thing I felt again is that among Scope 3, the portion related to procurement of raw materials accounts for more than 80% of the total and has a significant share. I also found that the logistics portion has a relatively large weight as well. We recognize this as an initiative across the entire supply chain. It is essential to have the perspective of working together with everyone involved in that area. We aim to accurately disclose Scope 3 next year and call for initiatives.

Communicating Information Inside and Outside the Company

—What kind of company do you aim to be as you promote energy saving and decarbonization?

FURUSAWA: We have set carbon neutrality as a major goal, but I believe this is not just about activities to reduce environmental impact. In other words, we believe that our mission is to contribute to the realization of a decarbonized society and to build a sustainable society. To achieve this, it is necessary to continue providing information to stakeholders. In addition to providing information on what we consider carbon neutrality, it is also necessary to participate in initiatives such as the GX League and provide information on fuel cells and recycling. Furthermore, it is also necessary to actively communicate information within the Company and raise employee awareness. We need to ensure that information about our diligent efforts, such as which factories have introduced solar power and which sites have contracted 100% renewable electricity, is accurately conveyed within the Company.

In addition, our involvement in the supply and recovery of various products contributes to the reduction of CO₂emissions. In fact, this recycling-based circular business model has been in place since our founding. Platinum was used as a filament for light bulbs during the Meiji era, and we were already engaged in the recovery of platinum at that time. This means that the recycling business is something that is ingrained in our employees' DNA. While cherishing this DNA, we believe that our recycling activities—conducted as a matter of course rather than as something special—will ultimately lead to a decarbonized society.