Management Protecting the Environment Contributing to Societal Development
Protecting the Environment
JFE Group CSR Report 2018
JFE Group CSR REPORT 2018 24 Protecting the Environment Environmental Management
Environmental Philosophy and Strategies Environmental Management System
The JFE Group’s environmental philosophy and Acquisition of ISO 14001 certification is an important strategies target the development of innovative part of every JFE Group company’s environmental technologies and international cooperation aimed at program. All global production sites of JFE Steel and protecting the global environment. JFE Engineering and major offices of JFE Shoji Trade have received certification, encompassing 70% of Environmental Philosophy 41,000 employees at 79 companies covered in this report. During the reporting period, there was no The JFE Group puts top priority on protecting and material breach of any environmental law or regulation enhancing the global environment to maintain its business by any operating company, and no environmental in harmony with the environment, ultimately for the protection violation notice was received from any prosperity of society as a whole. governmental authority.
Environmental Strategies JFE Steel has an Environment Management S Department at its head office and in each 1. Reduce the environmental impact of all businesses 2. Contribute through technologies and products business office, and the Environmental Committee 3. Conserve resources and energy chaired by its president and the Environment 4. Communicate with society Management Committee in each local office. All 5. Facilitate international cooperation JFE Steel production sites have obtained ISO 14001 certification, as have 16 of 37 major subsidiaries, for all operations or at least those related to production. Framework for Environmental Management JFE Engineering’s Environmental Management E System, which encompasses all employees, The JFE Group Environmental Committee, chaired by works to minimize environmental impact at the president of JFE Holdings and operating under the production sites and branch offices and contribute JFE Group CSR Council, sets goals for environmental to environmental protection through all projects protection, monitors the progress of such and products. The major strategies for 2018 are initiatives and works to improve the Group’s overall (1) promote environmental contribution through environmental performance. Specialized committees products for mitigating global warming and climate set up by JFE Group’s operating companies and change, (2) maintain the S-classification of the Energy affiliates implement specific activities. Conservation Law, and (3) eliminate violations of Waste Management And Public Cleansing Law ■ Environmental Management System by implementing a system to manage disposal
JFE Group Environmental Committee outsourcing agreements and manifests. Of JFE Environmental Committee JFE Steel Environmental Committee of Affiliate Engineering’s 10 major group companies, four have
JFE Engineering Environmental Environmental Committee obtained ISO 14001 certification. Committee of Affiliate
JFE Shoji Trade CSR Promotion Council Group Company Environmental JFE Shoji Trade obtained ISO 14001 certification (Environmental Management Meeting) Management Meeting T for its Tokyo head office, Osaka head office and Nagoya branch in 2000. Thereafter, the company secured certification of 23 group companies in Group Environmental Liaison Group Company Environmental Japan, including branch and sub-branch offices Committee Liaison Committee Members Members and 9 manufacturing firms, to ensure thorough Environmental managers at JFE Environmental managers environmental management throughout the JFE Holdings and each operating at each operating company and company Group company Shoji Trade group. Overseas, 12 manufacturing group companies have obtained ISO 14001 certification.
25 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Environmental Auditing Environmental Education
In addition to the regular internal and external audits at The JFE Group actively provides education to foster
ISO 14001-certified sites, the audit and environment a corporate culture of environmental protection. Management departments at each operating company’s head office Education at operating companies includes training for conduct independent environmental audits at their new recruits and newly promoted employees as well production sites. as specific environmental-protection training organized by position and job. Once a year, JFE Steel’s Audit Department S and the Environment, Disaster Prevention and JFE Steel encourages employees to obtain Recycling Department conduct an environmental S qualifications as pollution-control managers. audit at each operational site. Companies are grouped In FY2017, 84 persons were qualified, bringing the by risk assessments of equipment, etc., using self- total to 1,502 people since 2005. A training program Protecting the Environment checks based on checklists, part of an extensive launched in FY2011 for environmental managers at audit conducted every one to five years. A total of group companies was held three times in FY2017. In 170 business sites of addition, JFE Steel provides employees with annual JFE Steel companies training to ensure compliance with environmental require auditing, of laws, and it disseminates information about regulatory which 25 were audited revisions at its semiannual Environmental Liaison in FY2017. Committee meetings for companies in its group. Brush-up training in waste management skills for
on-site personnel is held four times a year. Contributing to Societal Development
JFE Engineering educates all employees E about environmental issues to increase their Environmental audit by understanding of the company’s related policies the operating company at its operational site and initiatives. To ensure proper environmental management at its production sites and construction JFE Engineering places a top priority on sites, training is often tailored to the specific E complying with environmental laws and operations of employees, helping them to enhance regulations. Each year about 50 sites—selected from their capabilities. among the Tsurumi and Tsu manufacturing sites, In FY2018, audit findings and near-violation construction sites in Japan and group company cases at construction sites regarding environment sites—are audited by the Safety and Environment management are incorporated into various Department to confirm compliance with environmental environment-related operation manuals and training laws and regulations. In addition, environmental materials to raise awareness as an organization that inspections are conducted at all construction sites to fully complies with laws and regulations. confirm legal compliance of their daily operations. JFE Engineering also conducts internal audits on its own JFE Shoji Trade complies with ISO 14001 environment management system to evaluate and T requirements by providing all employees with enhance the effectiveness of various environment- general environmental training and specialized training related initiatives. for internal audit staff on an annual basis. In addition, each company performs a self-check using its own JFE Shoji Trade conducts internal environmental extensive checklist to ensure understanding and T audits at all of its affiliate companies that are rigorous compliance with environmental laws. Also, ISO 14001-certified annually. Non-certified companies JFE Shoji Trade provides environmental training to are also audited once every three years by the Audit new executives at group companies and information Department. about revised laws and regulations to environmental management personnel.
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 26 Environmental Accounting Capital Investment To save energy and reduce environmental impacts Basic Approach stemming from production, the JFE Group invests in The JFE Group is saving energy and reducing its environmental technologies for plants and equipment. environmental impacts by making its production Cumulative investment in energy savings, totaling 492.9 facilities increasingly efficient and introducing billion yen since 1990, has enabled the company to more environmentally friendly equipment. Such achieve energy efficiencies that are among the highest investments, which are categorized as environmental in the world. In total, the Group has invested 692.4 billion costs, cover equipment, facilities and related yen in environmental protection since 1973. expenditures for environmental protection and impact reduction. Results of Environmental Activities Environmental protection costs include efforts to Environmental Investment and Expenses lower unit-based CO2 emissions to prevent global Environmental capital investment totaled 43.3 billion warming and measures to reduce final-disposal waste yen and expenses amounted to 112.1 billion yen in and conserve natural resources through recycling. FY2017. Capital expenditure included 19.1 billion yen Other benefits include reduced discharges of airborne for air-pollution countermeasures, 18.0 billion yen for and waterborne substances with pollution loads and energy savings and other measures to prevent global compliance with statutory regulations concerning warming and 1.6 billion yen for water-pollution prevention. exhaust gas emissions and discharged water. Environmental capital investment as a percentage of The largest environmental capital investment overall capital investment was roughly 24%. in FY2017 was for facilities to address dust and Environmental expenses for environmental soot emitted from coke ovens. Investments in dust activities included 35.6 billion yen for air-pollution collection equipment helped to minimize dust and countermeasures, 27.8 billion yen for global-warming soot from aging coke ovens. The monetary value of countermeasures and 17.1 billion yen for industrial energy savings realized through environmental capital water recycling. Environmental R&D expenses came investments and expenses in FY2017 is about 1.3 to 11.7 billion yen. billion yen.
■ Breakdown of Environmental Costs
FY2016 FY2017 Main Items Investment Cost Investment Cost (billion yen) (billion yen) (billion yen) (billion yen) Impact monitoring and measurement, and EMS expenses Management 0.1 2.4 0.2 2.5 and education Global warming Saving and efficiently use energy 8.8 29.5 18.0 27.8 countermeasures
Recycling industrial water 2.0 17.4 2.8 17.1 Conservation of natural resources Recycling and waste management of internally generated 0.03 5.1 0.09 5.3 materials, etc.
Air pollution countermeasures 27.2 36.8 19.1 35.6
Environmental Water pollution countermeasures 4.6 9.7 1.6 9.2 protection Prevention of soil contamination, noise, vibration and 0.5 0.8 0.02 0.7 subsidences
Other Charges, etc. — 1.4 — 1.4
Technologies for protecting the environment, saving energy R&D 1.2 12.6 1.4 11.7 and preventing global warming Support for nature preservation and forestation, information Societal activities — 0.7 — 0.7 disclosure, exhibitions and public relations
Total 44.4 116.4 43.3 112.1
Note: Data cover all investment activities of JFE Steel Corporation and R&D activities of JFE Engineering Corporation.
27 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Value Chain Initiatives Products and Services A shift toward a low-carbon society is significantly Basic Approach changing the business environment for the JFE Group.
Under the concept of life cycle assessment, the However, the development of products and services Management JFE Group strives to reduce environmental impacts that can compete in these greener markets also throughout its supply chains. Also, operating presents major opportunities. companies work with business partners to reduce The JFE Group offers proprietary products and their use of materials that impact the environment. services for reducing environmental impact and restoring the environment, such as high-performance Promoting Green Procurement steel materials that help save energy, engineering JFE Group’s procurement policies help to conserve technology for renewable energy sources, steel slag resources and protect the environment by ensuring products that can help restore marine environments adherence not only to all laws and regulations but for biodiversity and a ballast water improvement Protecting the Environment also to procurement principles stated in the Charter of system. The Group contributes to sustainable Corporate Behavior developed by the Japan Business societies with products and services that are created Federation. Going forward, the JFE Group expects to with world-leading energy-saving and environmental accelerate such efforts in its supply chains. technologies. In its steel business, the Group has targeted a 10% increase in environmental R&D investment under its Sixth Medium-term Business Environmental Risks and Opportunities Plan (FY2018–FY2020) compared to the previous plan. Moreover, the company is continuously developing
Preventing Global Warming next-generation steelmaking process technologies and Contributing to Societal Development The steel business accounts for 99.9% of the JFE product technologies with a focus on automobiles, Group’s CO2 emissions, so reducing emissions from energy and infrastructure. steelmaking processes is a major goal. Along with helping Japanese steelmaking processes to achieve Preventing Pollution the world’s highest levels of energy efficiency, the JFE The JFE Group ensures compliance with laws Group has played a key role in reducing CO2 emissions and regulations through aggressive equipment worldwide through international cooperation. The investment for environmental protection, and related company also helps to reduce emissions by supplying internal controls and education are steadily being proprietary high-performance steel materials that save strengthened. Also, the transfer and widespread energy and develops engineering technologies for application of proprietary technologies, mainly renewable energy sources. in developing countries, contribute to pollution With the adoption of the Paris Agreement, prevention on a global scale. environmental efforts for the development of sustainable societies are becoming even more Resource Recycling important. Stricter global warming measures could Economic growth in emerging countries is intensifying place certain restrictions on the Group’s activities the need to conserve nonrenewable resources and centered on steel, but they also present opportunities prevent pollution. Addressing these issues requires for growth and heightened competitiveness in a good balance between resource use and economic increasingly low- carbon societies. JFE Steel achieved growth on a global scale. Iron can easily be separated a 20% reduction in its energy consumption intensity and is thus easily recyclable. It can be recycled and compared to the FY1990 level. Overall, the JFE Group reused to make other steel products infinite times is committed to achieving greater energy savings by (closed-loop recycling). So, the JFE Group is raising continuously developing innovative technologies. its rates of recycling co-products from steelmaking and reducing waste at construction sites. Also, the company is utilizing its steelworks infrastructure to develop recycling businesses and export iron scrap as a recyclable resource.
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 28 Protecting the Environment Material Flow
JFE Steel works to reduce the environmental impact of its steelmaking processes, including through the effective use of resources. The company recycles 93.5% of the water it uses for production and uses 99.7% of its co-products, such as iron- steel slag. In addition, 100% of co-product gas generated during production is reused as fuel for reheating slabs, generating power for internal use and supplying power to the public.
JFE Steel
Input CO2 Flue gas Greenhouse gases Chemical Wastewater • Scope 1 • SOx emitted during substances (PRTR) transportation • Released 128 million tonnes 3 52.4 million tonnes CO2 4.6 million Nm (domestic distribution) 516 tonnes 3.8 % Total CO2 emissions from • NOx • CO 2 energy and non-energy million • Transferred Evaporation loss sources 11.5 million Nm3 0.37 tonnes CO2 2,726 tonnes million tonnes • Scope 2 • Soot and dust 92 % 6.1 million tonnes CO2 2.7 Raw materials for steel production
71.3million tonnes • Iron ore: 43.5 million tonnes • Coal: 22.0 million tonnes Output • Lime: 5.8 million tonnes Water recycled 6.5% 93.5% Purchased energy 3,190 million tonnes Total water consumption 114.2 PJ 3,410 • Petroleum-based fuels:20.8 PJ million tonnes • Electric power: 93.4 PJ
Industrial water
220 million tonnes
Coke oven and Blast furnace BOF and CC Reheat furnace Rolling sintering plant
Coke oven gas BF gas BOF gas
Recycled
Recycled materials 27.5% • Steel scrap 4.2 million tonnes 1.2million tonnes
• Steel scrap (basic oxygen furnace, or BOF) Landfill
• Waste plastics Landfill • Waste PET bottles 0.3% 0.047 million tonnes • Used consumer appliances • Food waste • Used batteries JFE Group Recycling Processes • Dust, sludge, etc.
29 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Supply Emissions
JFE Engineering (Head Office and Works)
Output Input Management
Consumed Steel 41,800 tonnes by JFE Steel Supplied to Energy society • Electric power purchased 26.9 GWh 63.4% • Class A heavy oil 439.7 kl 36.6% • Kerosene 15.0 kl Recovered energy for recycling Energy supply • Light oil 203.8 kl • Co-product gas • Gasoline 14.6 kl 36.6% • Waste heat recovery Protecting the Environment • steam • Power City gas 410,200 Nm³ • Power generation by blast furnace (BF) top • Fuel gas • LPG 121.2 tonnes gas-pressure recovery • Steam Water 97,000 tonnes turbine (TRT)
Effective use of recovered energy
100% Community, Environment and Society JFE Engineering Contributing to Societal Development • Tsurumi Works • Tsu Works
Shipments Steel products
28.5million tonnes (crude steel base) Output and Emissions
Products tonnes Other products 39,700 • Chemicals CO2 19,300 tonnes • Oxygen • Scope 1 7,000 tonnes • Nitrogen • Hydrogen • Scope 2 12,300 tonnes Effective use of • Argon Waste generated 1,400 tonnes Co-products • Industrial wastes 987 tonnes 99.7％ • General wastes 372 tonnes Marine and land civil engineering materials Wastewater (ocean only) 140,000 tonnes Others (PRTR) tonnes Co-products 11.2 million tonnes 113 15.4 • Materials for cement million tonnes • Roadbed materials Slag: 12.2 million tonnes • Port and harbor construction Dust: 2.2 million tonnes materials Sludge: 0.7 million tonne • Fertilizer Other: 0.3 million tonne Supplied to Society
Recycled products 72.2% • NF Board™ • PET flakes • Palettes • Recycled resin
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 30 Protecting the Environment Climate Change Mitigation
CO2 Emissions of the JFE Group Calculation of Greenhouse Gas Emissions (Scope 3) JFE’s CO2 emissions are mainly generated by its steel business. However, beyond reducing CO2 emissions The JFE Group began calculating greenhouse gas from steel making, each company sets specific targets emissions (Scope 3) in its value chain in FY2015. The corresponding with their operations to further save calculation for FY2017 continued to cover the eight energy and reduce CO2 emissions. categories in the table at the bottom of this page, and the scope was broadened to also include Group ■ CO2 Emissions of the JFE Group companies.
(Million t-CO2) ■ Scope 1 ■ Scope 2 80 64.3 63.2 61.2 61.2 62.2 60 2 6.6 6.4 7.4 Energy Savings and CO Reduction in Steelmaking 40 54.6 54.8 54.9 Initiatives to Save Energy and Reduce CO2 S 20 JFE Steel had been pursuing CO2 reduction and energy savings, including the introduction of energy-
0 20132014 2015 2016 2017 (FY) saving equipment, since before the Japan Iron and Steel Federation introduced its voluntary action plan. Notes: Data cover 75 companies, including JFE Steel and 29 major domestic and overseas subsidiaries, JFE Engineering and 10 major domestic subsidiaries, and JFE Shoji Trade and 33 major domestic and overseas ■ Unit Energy Consumption at JFE Steel subsidiaries. 100 JFE Steel emissions include CO2 emissions from non-energy sources. Data for certain fiscal years have been recalculated retroactively for 100 88 (FY1973 = 100) -37% improved accuracy. 77 80 64 63 64 63 63 ■ CO2 Emissions by Operating Company (FY2017) 60 JFE Steel JFE Engineering JFE Shoji Trade 40
62,147 thousand t-CO2 57 thousand t-CO2 35 thousand t-CO2 20
99.85% 0.09% 0.06% 0 1973 19851995 2013 2014 2015 2016 2017 (FY)
■ Scope 3 Emissions of the JFE Group (FY2017)
Category CO2 Emissions (thousand t-CO2) Calculation Method
Purchase prices for materials and outsourced work multiplied by CO2 1 Purchased goods and services 13,048 emission factor*
2 Capital goods 921 Capital investment cost multiplied by CO2 emission factor*
Fuel- and energy-related activities not included in Annual consumption of electricity and steam multiplied by CO2 emission 3 386 Scope 1 or Scope 2 factor*
Transportation distance stated in reports (based on Energy Saving Act) 4 Upstream transportation and delivery 650 multiplied by CO2 emission factor*
5 Waste generated in operations 87 Waste volume (by type) multiplied by CO2 emission factor*
6 Business travel 4 Number of employees multiplied by CO2 emission factor*
7 Employee commuting 54 Number of employees multiplied by CO2 emission factor*
Emissions from companies of which more than 20% of their stock is 15 Investments 1,122 held by the Group, and which are accountable under the Energy Saving Act, multiplied by the stock holding ratio
Coverage: (Categories 1, 2, 4, 5) JFE Steel, 25 JFE Steel domestic subsidiaries, JFE Engineering, and JFE Shoji Trade(Category 3, 6, 7) JFE Steel, 25 JFE Steel domestic subsidiaries, 10 JFE Engineering domestic subsidiaries, and JFE Shoji Trade(Category 15) Japan Marine United, and 9 JFE Steel equity-method affiliates (7 domestic and 2 overseas) *Sources: Green Value Chain Platform (Ministry of the Environment) and others
31 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Energy Consumption and CO2 Emissions in ■ CO2 Emissions from Energy Sources and Unit CO2 Emissions of JFE Steel FY2017 (Million t-CO2) ■ Scope 1 ■ Scope 2 ● Unit CO2 emissions from energy sources (t-CO₂/t-s) Energy consumption and CO2 emissions in 100 2.5 2.48 -20% 2.01 2.01 steelmaking are greatly influenced by production 1.99 Management volume. To accurately assess the effects of 80 1.96 1.99 2.0 58.3 57.5 56.6 improvements due to operational technologies and 55.0 55.2 56.6 60 5.2 5.1 4.7 4.7 6.1 1.5 capital investments, JFE Steel is working to reduce its 40 1.0 intensity (energy consumption and CO2 emissions per 52.3 51.5 50.3 50.5 50.5
unit of production) and related energy-conservation 20 0.5 activities. JFE Steel’s crude steel production was 28.46 0 1990 2013 2014 2015 2016 2017 (FY) 0 million tonnes in FY2017, up 1% from FY2016 and Notes: The CO2 coefficient for electricity purchased in FY2017 is that of FY2016 on the Japan Iron and Steel Federation’s Low-Carbon Society up 21% from FY1990. However, thanks to ongoing Implementation Plan. Protecting the Environment Data for certain fiscal years have been recalculated retroactively for energy-saving activities, energy consumption was improved accuracy. down 4% and CO2 emissions were down 3% from FY1990. ■ CO2 Emissions of JFE Steel Group The company’s energy consumption intensity in (Million t-CO2) ■ JFE Steel ■ Group companies 80 FY2017 was 21% below the FY1990 level at 22.6 GJ/ 64.2 63.1 62.1 4.7 4.5 61.0 61.2 3.6 t-steel, while CO2 emission intensity was down 20% 60 4.1 4.2 to 1.99 t-CO2/t-steel. The results prove the success of JFE Steel’s energy-saving activities in recent years, 40 59.5 58.6 56.9 57.0 58.5
including capital investments in energy conservation Contributing to Societal Development
and promotion of energy conservation through the 20 visualization of the reheat furnace fuel basic unit.
0 2013 2014 2015 2016 2017 (FY) ■ Production of Crude Steel of JFE Steel Notes: Data cover JFE Steel and 29 domestic subsidiaries for CO2 emissions (Million tonnes/year) from energy sources, JFE Steel for CO2 emissions from energy and non-energy sources. 30 28.67 28.44 28.13 28.46 27.36 Data for certain fiscal years have been recalculated retroactively for improved accuracy. 21% 25 23.55
CO2 Emissions from Non-energy Sources Lime and dolomite, which are used as auxiliary 20 materials in blast furnaces and converters, emit CO2 in decomposition. CO2 emissions from non-energy 0 1990 2013 2014 2015 2016 2017 (FY) sources in FY2017 totaled 1.91 million t-CO2.
■ Energy Consumption and Unit Energy Consumption of JFE Steel ■ CO2 Emissions from non-energy sources of JFE Steel
（PJ） ■ Energy consumption ● Unit energy consumption (GJ/t-s) (Million t-CO2) 800 32 2.5 670 653 645 633 644 625 1.851.94 1.94 1.85 1.85 1.91 2 600 28.5 29
-21% 1.5 400 26 1
200 23 22.8 22.7 22.9 22.5 22.6 0.5
0 1990 2013 2014 2015 2016 2017 (FY) 0 0 1990 2013 2014 2015 2016 2017 (FY)
Note: Data for certain fiscal years have been recalculated retroactively for improved accuracy.
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 32 Japanese Steel Industry Initiatives short of achieving the target, mainly due to the deterioration of coke oven bricks, which were not foreseen when the target was established. Low-carbon Society Implementation Plan *Business As Usual emissions: Estimated level of emissions in the absence The Japan Iron and Steel Federation (JISF) is promoting of any special measure. its Low-Carbon Society Implementation Plan, which focuses on the Three Ecos initiatives and the development Revolutionary Steelmaking Process Development of innovative new steelmaking processes. JFE Steel is COURSE 50 actively implementing initiatives to help achieve the plan’s About 30% of CO2 emissions can be reduced through targets. hydrogen reduction along with separation and capture of CO2 from blast furnace gases. The first facility is expected Assessment of Low-carbon Society Implementation to come online by 2030, followed by other plants by 2050. Plan Results In FY2016 emissions by the Japanese steel industry Ferro Coke decreased 2.46 million t-CO2 compared to the BAU* The Japanese steel industry intends to develop ferro emissions benchmark. Various self-improvement efforts, coke that accelerates and lowers the temperatures of the such as raising the efficiency of coke ovens and generation reduction reaction in a blast furnace as well as its operational facilities, started to take effect and thereby reduce emissions. processes to conserve energy further and expand the use of Although the result was better than in the previous year, it fell low-rank materials.
■ CO2 Reduction Medium-Long Term Targets (Japan Iron and Steel Federation’s “Commitment to a Low-Carbon Society”)
Three Ecos Eco-Processes Eco-Products Eco-Solutions
Provide high-performance steel Reduce CO2 in developing countries Further improve energy efficiency by materials that result in high performing through the transfer and application of Goal taking full advantage of cutting-edge end-products and thus reducing CO2 world-leading, energy-saving Eco-Process technologies emissions technologies
Reduce CO2 emissions by 5 million tonnes compared to the BAU benchmark The use of major high-performance steel FY2020 Estimated CO2 reduction impact of 70 Energy conservation: 3 million tonnes materials to contribute to a CO2 reduction (phase-I) ・ million tonnes ・ Efficient use of waste plastics, etc.: 2 of approximately 34.0 million tonnes Targets million tonnes
The use of major high-performance steel FY2030 Reduce CO2 emissions by 9 million Estimated CO2 reduction impact of 80 materials to contribute to a CO2 reduction (phase-II) tonnes compared to the BAU benchmark million tonnes of approximately 42.0 million tonnes
Reduced 2.46 million tonnes of CO2 Domestic and international use Status as of FY2016 CO2 reduction impact of 60.01 million emissions (energy conservation etc.), contributed to a CO2 reduction of 28.47 year-end tonnes compared to the BAU benchmark million tonnes
Source: Public data from the Japan Iron and Steel Federation.
Reduced CO2 Emissions through High-performance Steel Materials (Effects of Eco-Products) The Japan Iron and Steel Federation estimates the contribution of five types of high-performance steel ■ CO2 Reduction Resulting from the Use of Five High-performance materials to the reduction of CO2 emissions. It is Steel Materials in Japan and Abroad estimated that the use of major high-performance steel materials for cars, transformers, ships, power generator ■ Ships ■ Power-generator boilers ■ Cars ■ Trains ■ Transformers boilers and trains in Japan and overseas (FY2016 production: 7.36 million tonnes, 6.9% of crude steel 0.58 2.10 1.93 production) helped to reduce CO2 emissions by 28.47 3.87 million tonnes in FY2016. 6.35 0.26 Domestic 0.96 Export Notes: Estimates created by the Institute of Energy Economics, Japan. reduction of reduction of Materials included are steel sheets for automobiles, directional electrical steel sheets, thick steel sheets for shipbuilding, steel 9.83 18.64 tubes for boilers, stainless steel sheets. million t-CO2 million t-CO2 For the domestic figures, the calculation includes data from FY1990 4.58 7.84 onward. For the export figures, the calculation includes data from FY2003 onward for automobile and shipbuilding, from FY1998 onward for steel pipes for boilers and from FY1996 onward for electrical steel sheets.
33 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Efforts for the Commitment to a The “Two-stage Jet Burner for Igniting Sintering Low-Carbon Society Furnace” is used during the manufacturing of sintered ore, the main ingredient fed into a blast furnace. The
Development of Energy-conserving technology stabilizes and accelerates the speed of Management S Technologies the burner flame heating the ore bed surface, thereby JFE Steel was awarded two prizes at the 2017 conserving energy. This has been installed on all Energy-Efficient Machinery Award (Japan Machinery sintering furnaces (three units) at sintering plants in Federation). The “Two-stage Jet Burner for Igniting the Kurashiki District, achieving about a 30% reduction Sintering Machine” received the Agency of Natural in fuel gas consumption and an annual reduction of Resources and Energy Director’s Award and “Radiant approximately 6,000 tonnes (total impact of three Tube Burner with Effluent Gas Recirculation” received units) of CO2 emissions. the JMF’s President Award. The “Radiant Tube Burner with Effluent Gas
Recirculation” is a burner that uses radiant heat for a Protecting the Environment ■ Two-stage Jet Burner for Igniting Sintering Furnace continuous annealing furnace in steel plate production. Its burner features the lowest NOx emissions in Conventional Burner Two-Stage High Speed Burner Japan, and along with a compact heat exchanger, the Gas Main gas Air unit lowers NOx emissions and conserves energy. A total of 162 units were installed in annealing furnaces Main air in the Fukuyama District, achieving a 12% reduction in gas emissions, while CO2 emissions are being reduced by 1,900 tonnes per year. Contributing to Societal Development Life Cycle Assessment Sub gas In order to accurately evaluate the environmental Gas mixxture Sub air impact of products, assessment and quantification is required over their entire life cycles, from raw resource mining to material production, product manufacture, use and final disposal. Life Cycle Assessment (LCA) is Burner flame one method for conducting this evaluation. Max. After final products such as automobiles and temperature buildings finish their mission in society, all of their steel components can be recycled and reused. This closed- Max. temperature Burner loop recycling ability is an excellent characteristic flame of steel materials. If LCA is conducted and this characteristic is taken into account, steel can be viewed as having extremely low environmental impact compared to other materials.
Ore bed surface Ore bed surface All of our research, development and production processes carefully evaluate the environmental impact of products through LCA. Sintering raw material Note: JFE Steel, together with the WSA (World Steel Association, comprising of approximately 170 steel manufacturers and steel-related Ignition furnace organizations) and the Japan Iron and Steel Foundation (JISF), is Pallet working to establish LCA as an international standard methodology for Chimney calculating LCI for steel products.
Crushing Fan
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 34 ■ Life Cycle of Steel Materials
Scope of the international standard under development
Scrap Mine
Scrap Iron ore Coal C losed-loop recyclin
The Japan-India Public and Private Collaborative Meeting Steelworks
Ironn productsprodu g
Industrial goods process Industrialstrial goodsgo
Daily life
End of productproduct lifetime
Disposal
Substitution for other material(s) Climate Action Member Certificate Heat conversion
Addressing Global Warming CO2 Reduction in the Value Chain ISO 14404 is an international standard proposed by the Japan Iron and Steel Foundation (JISF) to the JFE Steel initiatives to reduce CO2 emissions International Organization for Standardization (ISO) as S include lowering the environmental impact a methodology for the globally unified calculation of of distribution, providing high-performance steel CO2 intensity from iron and steel production, ultimately materials that save energy in final products to assess the energy efficiency of steelworks. The and international cooperation in environmental Japanese steel industry is addressing global warming technologies. through international public-private collaborations, including ISO 14404-based assessment of steelworks Energy Saving in Transportation in developing countries and recommending specific To reduce the environmental load of transporting steel, technologies best suited to respective countries. JFE Steel is actively shifting its transport modes to JFE Steel is also addressing global warming by ships and rail. The modal shift rate* for FY2017 was participating in international activities, such as the 92.7%.
Japan-India Public and Private Collaborative Meeting, *Percentage of transportation volume (minimum 500 km) by rail or ship. the Japan-ASEAN Steel Initiative and the Japan- China Steel Industries Exchange. In addition, JFE Steel is involved with the World Steel Association’s Climate Action Program, which uses ISO 14404 as the standard for measurement and calculation.
35 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Shoji Trade offices in Japan work to reduce CO2 Reduction Initiatives T their use of energy and paper, as well as strictly The head office, branch offices and works manage waste separation. Energy consumption E of JFE Engineering strive to reduce CO2 has been lowered significantly by observing days Management emissions. In 2017, JFE Engineering achieved the when employees are encouraged to leave work reduction target set by the Energy Conservation Law. on time, prohibiting night work and introducing In addition to reducing CO2 emissions from its pinpoint lighting. In FY2017, 899 thousand kWh of own business, it also helps clients reduce their CO2 energy was consumed, a 56% reduction compared emissions by providing them with environmentally to FY2001. In addition, the company has introduced sound products and services, including technologies video conferencing systems in offices worldwide to that harness renewable energy and energy-saving reduce printed reference materials and domestic and products. international business trips.
For example, if all of the renewable energy-related Protecting the Environment plants that JFE Engineering has constructed by ■ Electric Power Consumption by JFE Shoji Trade
FY2017, including those currently under construction, (1,000 kWh) 2,500 were in operation, their estimated contribution to CO2 2,031 reduction would mount up to 4.06 million tonnes per 2,000 year. -56% Companies of the JFE Engineering group also work 1,500 1,060 1,022 956 915 899 2 to reduce CO through energy-saving initiatives suited 1,000 257 branches to their respective businesses. Nagoya 36 500 Osaka 237 Contributing to Societal Development *For renewable energy power generation plants, the characteristics of each Tokyo 369 plant is taken into consideration while estimating their CO2 emissions. 0 2001 2013 2014 2015 2016 2017 (FY)
■ CO2 Emissions of the JFE Engineering Group ■ CO2 Emissions of the JFE Shoji Trade Group
(1,000 t-CO2) North and Central China: 100 America: 3.4 thousand 14.9 thousand 72.3 68.2 75 63.7 62.9 Asia: 56.5 5.4 thousand Other 10.8 Total: 50 35.0 thousand t-CO2 JFE 28.5 KkKankyo 25 Japan: JFE 17.3 11.4 thousand Engineering 0 2013 2014 2015 2016 2017 (FY)
Note: Data cover CO2 emissions from energy sources by JFE Engineering and Note: The graph shows CO2 emissions from electric power consumption by 10 domestic subsidiaries. JFE Shoji Trade and 33 domestic and overseas consolidated subsidiaries (steel-processing companies).
■ Contribution to CO2 Emission Reductions by Renewable Energy Plants Other (solar power, biogas engine, etc.): 0.46 Disclosure of Climate Change Waste power generation: 1.64 Mitigation Measures
Contribution to CO2 JFE Holdings is responding to requests to disclose its Emission Reductions efforts to mitigate climate change and is providing 4.06 million t-CO2/year inputs to the Carbon Disclosure Project (CDP)*.
Biomass power *CDP: an international non-profit organization that works with institutional generation: 1.97 investors to collect and disclose information from corporations on their greenhouse gas emissions and other climate change risks.
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 36 Protecting the Environment Protecting the Environment
Controlling Air Emissions Preventing Water Pollution
JFE Steel is increasingly controlling emissions JFE Steel strives to reduce its environmental S by installing low-NOx burners in reheat S impact on waterways by thoroughly purifying furnaces, switching to low-sulfur fuels and deploying water used in steelmaking processes before releasing desulfurization and denitration devices in sintering it into public waterways or sewers. Chemical plants, all major sources of SOx or NOx emissions. oxygen demand (COD), the water-quality index for In addition, the company suppresses dust dispersion wastewater, was 3.0 tonnes per day. through measures that include enhancing on-site cleaning, installing sprinklers and windbreak fences in ■ Chemical Oxygen Demand (COD) raw material yards, and improving the performance of (Tonnes/day) ■ JFE Steel (non-consolidated) 4.0 dust collectors. 3.1 3.0 3.1 3.1 3.0 3.0 ■ SOx Emissions (Million Nm3) ■ Emission by JFE Steel (non-consolidated) 2.0 40 36.8
1.0 30
0 20 2013 2014 2015 2016 2017 (FY)
Group companies* − − − − 0.08 0.13 0.14 10 6.0 3.8 3.8 4.0 4.5 4.6 *12 JFE Steel consolidated subsidiaries in Japan.
0 (FY) Wastewater from each JFE Engineering works 1973 1990 2013 2014 2015 2016 2017 E Group companies* − − − − 0.03 0.03 0.05 is released into public waterways or sewer
*13 JFE Steel consolidated subsidiaries in Japan. systems. Water quality is strictly controlled at each outlet to ensure regulatory compliance. ■ NOx Emissions (Million Nm3) ■ Emission by JFE Steel (non-consolidated) ■ Chemical Oxygen Demand (COD) in Wastewater Released 40 34.6 Publicly
(kg/day) ■ Tsu Works 30 30 23.1 20 Regulation (Tsu) 13.7 20 11.4 10.3 10.4 10.9 11.5 10
10 5.7 6.0 6.1 5.6 0 1973 1990 2013 2014 2015 2016 2017 (FY) 4.5 Group companies* − − − − 0.24 0.22 0.20 0 2013 2014 2015 2016 2017 (FY) *14 JFE Steel consolidated subsidiaries in Japan. This report uses the maximum value of each year.
To ensure compliance with the Air Pollution E Control Law and local regulations on soot- Water-related Risks and Mitigation and smoke-emitting facilities, JFE Engineering regularly measures and strictly controls nitrogen JFE Steel identifies and evaluates water-related oxide emissions, etc., at its Tsurumi and Tsu works. S risks based on damage reported in the past In addition, efforts are being made at construction for each steelworks and on forecast data from the sites to appropriately control the environmental Meteorological Agency. Using tools such as the World impact of construction machinery and on-site vehicles Resource Institute (WRI)’s Aqueduct, these risks are in compliance with the NOx Law and the Off-Road further evaluated from different perspectives. While Vehicle Law. Japan possesses a plentiful water supply, there are risks of water shortages and flooding associated with
37 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation climate conditions. JFE Steel identifies steelworks Chemical substances at JFE Engineering works having risks that are affected by climate change and E are generated primarily from painting steel mitigates their risks by creating a BCP. structures and welding. The company controls the
release or transfer of these substances in accordance Management with Japan’s Law Concerning Pollutant Release and Management of Chemical Transfer Register (PRTR Law). Substances and Emission Control ■ Release and Transfer of PRTR-registered Substances at JFE Engineering Works JFE Steel lowers its environmental impact by S voluntarily reducing the chemical substances ■ Amount released into atmosphere and public waterways (Tonnes) ■ Amount transferred it releases. In FY2017, chemical substances released 150 into the atmosphere and public waterways totaled
96 104 Protecting the Environment 516 tonnes. The Japan Iron and Steel Federation 92 100 87 formulated a voluntary action plan to reduce VOC 85 emissions by 30% from FY2000 levels by FY2010. Actual reductions in the industry were significantly 50 28 28 28 better than the levels targeted for FY2020, and follow- 24 24 up efforts are helping to prevent any increase in 0 emissions. JFE Steel, a member of the federation, 2013 2014 2015 2016 2017 (FY) Group companies* has cut its VOC emissions by more than 50% from its Amount released − − − − 45,567 (tonnes) FY2000 level. Amount − − − − 6,183 (tonnes) transferred Contributing to Societal Development ■ Release and Transfer of PRTR-registered Substances at JFE *4 JFE Engineering consolidated subsidiaries in Japan. Steel
■ Amount released into atmosphere and public waterways by JFE Steel (non-consolidated) PCB Waste Management at JFE (Tonnes) ■ Amount transferred by JFE Steel (non-consolidated) 4,000 3,590 Polychlorinated biphenyl (PCB) waste is properly stored and managed at the JFE Group’s facilities. High- 3,000 2,726 concentration PCB waste is treated in accordance with 2,235 2,212 guidelines set by the Japan Environmental Storage 1,775 2,000 & Safety Corporation (JESCO). The Yokohama Eco Clean Plant and Mizushima Eco-Works of JFE Kankyo 1,000 419 463 456 429 516 Corporation treat insulating oil contaminated with slight amounts of PCB, helping to reduce pollutants 0 2013 2014 2015 2016 2017 (FY) both in and outside the JFE Group. Group companies* Amount released − − 386 413 381 (tonnes)
Amount − − 5,048 4,835 6,208 transferred (tonnes) Initiatives to Preserve Biodiversity *18 JFE Steel consolidated subsidiaries in Japan. The JFE Group actively engages in preserving ■ VOC Emissions biodiversity through its business operations. Examples (Tonnes) include lowering the environmental impact of its 2,000 business operations, developing eco-friendly products 1,541 and technologies, and conducting environment-related 1,500 -53% training for local communities. For more information,
1,000 please refer to the following pages. 735 718 653 696 693 Pages 7, 8 JFE Group in Society—Ballast Water Management System 500 Eco-friendly Products and Technologies—Improving Marine Page 44 Environments with Marine Stones™ Page 54 Local Activities—Initiatives to Preserve Biodiversity 0 2000 2013 2014 2015 2016 2017 (FY)
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 38 Protecting the Environment Resource Recycling
Resource Recycling Water Consumption E JFE Engineering and its subsidiaries strive to Each operating company of the JFE Group carries out efficiently use water in their business operations at resource recycling suited to its particular business. each site, such as manufacturing industrial equipment We continue to pursue increasingly efficient uses and steel structures, waste disposal and treatment, of resources in both the production and product/ and recycling. service phases of its businesses, including steel scrap recycling, biomass fuel production and waste-to- ■ JFE Engineering Group’s Water Consumption Amount energy initiatives. Other: 0.1 J Farm: JFE Kankyo: 20 714
Efficient Use of Water in Response JFE Engineering: to Water Risks 97 Total: 832 thousand Cyclic Use of Water tonnes S A large amount of water is used in the steelmaking process to cool facilities and process products. JFE Steel actively recycles and cascades this water in thorough purification processes, such as *Scope: JFE Engineering by itself and 6 of its domestic subsidiaries. biological and chemical wastewater treatments, which enabled the company to achieve a high recycling rate of 93.5% in FY2017. Reducing Generation and Emission of Co-products and Reusing Co-products ■ Industrial Water Accepted/Circulated ■ Industrial water accepted by JFE Steel (non-consolidated) JFE Steel carefully controls the occurrence (Million tonnes)● Industrial water circulated*¹ by JFE Steel (non-consolidated) (%) S 400 100 and emission of iron and steelmaking slag 93.8 93.7 93.9 93.7 93.5 (steelmaking co-product), iron dust from blast furnaces 300 75 and converters, sludge from water treatment facilities 208 208 203 212 220 and other co-products. Dust and sludge with high 200 50 iron content are fully recycled as raw materials for steelmaking. All iron and steelmaking slag is recycled 100 25 for reuse in cement and other construction materials, and new applications as an environmental material 0 0 2013 2014 2015 2016 2017(FY) are being promoted. As a result of such efforts, the •JFE Steel company achieved a 99.7% recycling rate for slag, Total amount 3,336 3,313 3,326 3,340 3,410 (Million tonnes) Industrial water dust and sludge in FY2017. accepted 208 208 203 212 220 (Million tonnes)
•Group companies*² ■ Landfill of Byproducts and Recycling Rates Total amount (Million tonnes) (Million tonnes)■ Landfill amount (JFE Steel) ● Recycling rate (JFE Steel) (%) used − − − 339 280 0.5 100 Amount of industrial 0.48 99.9 water accepted − − 25 26 21 (Million tonnes) 99.8 99.7 99.7 99.7 *1 Industrial water circulated (%) = (Total amount − industrial water 0.4 98 accepted)/total amount × 100 *2 Data cover 25 domestic consolidated subsidiaries of JFE Steel 0.3 95.6 96
0.2 94
0.1 92 0.021 0.029 0.042 0.045 0.047
0 1990 2013 2014 2015 2016 2017(FY) 90 Group companies* (Million Recycling − − − 0.771 0.776 0.539 rate tonnes) (Million Landfill − − − − 0.042 0.034 amount tonnes) * 25 JFE Steel consolidated subsidiaries in Japan
39 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Example of Efficient Use ■ JFE Engineering Group Waste Disposal
Steel slag is actively being reused as a substitute Other: 0.6 for natural aggregates. The reaction of the lime JFE Pipeline Engineering: contained in slag alters the quality of the slag, and JFE Engineering: Management 3.5 88.1 this chemical reaction needs to be controlled in order to ensure production of steel slag with consistent JFE Technos: Total: 29.7 quality. To overcome this, JFE Steel is installing steam- 158 thousand aging facilities in all its steelmaking sites, ensuring tonnes consistently high-quality steel slag products. Asuka Soken: 36.0
*Scope: JFE Engineering by itself and 7 of its domestic subsidiaries. Protecting the Environment
■ Waste Generated at Construction Sites
(Thousand tonnes) ■ Total ■ Final disposal ● Recycling rate (%) 120 98.4 100 99.1 98.4 98.4 100 94.8 95
80 90 104.3 110.8 91.3 101.8 88.1 60 85 Steam-aging facility in the Keihin District 40 80 Contributing to Societal Development 20 75 0.5 1.1 1.5 1.6 1.4 Promoting Recycling 0 20132014 2015 2016 2017 (FY) 70
Most of JFE Engineering’s industrial waste is Every JFE Shoji Trade office reduces and E rubble and sludge discharged from construction T recycles waste by using waste paper and sites. By separating these wastes on-site and then thoroughly separating waste. The company’s recycling employing disposal companies known for achieving business for steel and aluminum scrap includes the high recycling rates, the construction department export of steel scrap to Asian countries, where it is limited its industrial waste to 88.1 thousand tonnes, or sold for both offshore and domestic trading. Although a recycling rate of 98.4%, in FY2017. steel scrap exported from Japan is mainly transported Company production sites focus on improving by bulk carriers, timely shipments of small lots now recycling rates by thoroughly separating valuable co- contribute to emerging recycling societies in Asia due products and waste. In FY2017, the Tsurumi Works to the container loading system introduced by JFE recycled 61.0% of 302.3 tonnes of waste and the Tsu Shoji Trade. Works recycled 37.0% of 470.7 tonnes. The City of Yokohama has named JFE Engineering’s Yokohama head office as a Workplace with Excellent 3R Activities for four consecutive years beginning in FY2012 to recognize its waste reduction, reuse and recycling activities. JFE Engineering establishes targets for such efforts as part of their environmental management systems. In addition, the company provides other resource-recycling solutions such as construction of biomass power generation plants.
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 40 ■ Resource-recycling Resource-recycling Solutions Solutions Waste The JFE Group engages in recycling businesses, • Plastics Society • PET bottles such as the reuse of used plastics in materials for • Consumer appliances • Combustible waste blast furnaces, based on recycling technologies Steel products • Food waste, etc. developed for its steelworks. In the engineering field, the recycling businesses maintain close relationships with local communities through such activities as the Recycled products • NF Board™ sorting and storage of waste plastics and conversion of • PET flakes refuse into solid fuel. The JFE Group also contributes • Plastic, etc. to sustainable societies by offering disposal solutions JFE Group for various types of waste, including materials, Recycling Businesses chemicals and thermal recycling, while also striving to Recycled materials minimize the volume of final disposal. Steelworks • Reducing agents •Blast furnaces • Scrap • Gases •Converter furnaces •Electric power generation facilities JFE Recycling Businesses
Sendai ■ Examples of Recycling and Processing (FY2017) E Plastic packaging-waste sorting and baling plant Content Volume E Plastic material recycling plant Containers and packaging plastic bought at 100 thousand tonnes E Fluorescent tube recycling plant auction E Recycled pallet manufacturing plant Waste plastic reused in steelmaking process 120 thousand tonnes Confidential document disposal plant E Used fluorescent tubes processed 20 million tubes E Refuse paper and plastic (RPF) manufacturing plant Used consumer appliances processed 500 thousand units
Toyama S Rare metal recovery plant for spent catalysts Chiba E Waste gasifying and melting furnace Kurashiki (Mizushima) E Food waste recycling plant S Waste gasifying and melting furnace E Waste wood carbonizing facility Kashima S Electric furnace recycling plant S Electric furnace recycling plant
Fukuyama Yokohama Kawasaki S Waste plastic recycling plant E Kiln-stoker incinerator S Waste plastic recycling plants E RPF manufacturing plant E Kiln-ash melting furnace (Ogishima & Mizue) S Fukuyama plastic material recycling plant E Liquid/sludge waste intermediate-treatment plant E Waste PET bottle recycling plant E Recycled pallet manufacturing plant E Dry cell and battery recycling plant E Kiln-stoker incinerator E Kiln incinerator E Solid waste recycling plant E Solid waste recycling plant E Leachate-controlled landfill E Fluorescent tube recycling plant S NF Board™ manufacturing plant E Liquid waste neutralization plant E Plastic packaging-waste sorting and baling plant E Consumer/office appliance recycling plant E Refuse-derived fuel (RDF) gasifying power E Food waste recycling plant generation plant (commissioned operation)
S Recycling of Used-Batteries (Separating Metals) ■ Treatment in High Temperature Electric Furnaces JFE Bars and Shapes is involved in recycling used batteries in their Mizushima and
Kashima Works. The used batteries collected as general waste through the public Recovering Electrode zinc waste collection process are put into high temperature electric furnaces and melted, allowing for the extraction of iron, manganese and zinc, which can then be reused for Waste other purposes. Scrap batteries
JFE Bars and Shapes’ processing sites are located in western and eastern Japan. Arc The company offers safe and reliable services at low cost and has gained the trust of many local authorities, winning their recycling businesses. Its contribution is not Molten steel limited to recycling iron scrap; it also encourages the creation of a recycling society. Recovering iron and manganese
41 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Protecting the Environment Eco-friendly Products and Technologies
JFE Steel
FOCUS Management Crack Arrest Technologies (Crack Arrest Structure and Steel Plate)
● Technology to Prevent Propagation of Brittle Cracks in Mega Container Carriers Crack Arrest Structure and Extra Thick Crack Arrest Steel Plate
The recent growth of the global economy has structure), and ❷ use special steel plates to prevent
triggered a rise in the use of container carriers for the propagation of cracks (crack arrest steel plate). Protecting the Environment sea transportation, and these container carriers JFE Steel conducted research into these crack arrest are rapidly growing in size to meet the demand. To technologies with due consideration for weldability ensure safety, brittle crack arrest design has been and successfully discovered and commercialized a mandated for these mega container carriers state-of-the-art technology for both. There are two approaches to prevent damage on This technology received the “2017 Monodzukuri carrier bodies from brittle fractures: ❶ structurally Nippon Grand Award (Prime Minister’s Prize).” prevent the propagation of cracks (crack arrest
Conventional Technology that Prevents Crack Propagation Technology (Crack Arrest Technology) Contributing to Societal Development Containers Special welding technique Excellent crack arrest that prevents crack steel plate that prevents propagation crack propagation Brittle crack arrest design mandated
Cross section of a Brittle cracks propagate container carrier and threaten damage ❶❷Crack Arrest Structure Crack Arrest Material World’s largest container carrier constructed with crack arrest Technology that Prevents Crack Propagation (Crack Arrest Technology) structure
Corrosion-resistant Zinc-Coated Steel Sheet 1.5 GPa-grade Cold-rolled Steel Sheet ECOGAL Neo™ for Automobiles Demand is rising in the construction materials JFE Steel has developed a cold-rolled steel sheet boasting sector for materials that are highly durable, weldable 1.5 GPa-grade tensile strength, the world’s highest tensile and maintenance-free for both indoor and outdoor strength of any cold-formed automotive part currently environments, triggering demand for corrosion-resistant available, and it has successfully applied the sheet to zinc-coated steel sheets. JFE Steel has developed and bumper reinforcements. The strength of automotive parts introduced ECOGAL Neo™, a 5% aluminum-zinc significantly contributes to reducing vehicle weight while alloy coated steel sheet that is highly resistant maintaining excellent collision performance. The energy- to corrosion. ECOGAL Neo™ offers the same conserving aspect of this sheet is highly regarded and has level of formability as conventional galvanized earned the product the 2017 Director-General of the Agency iron but with significantly improved resistance for Natural Resources and Energy Prize in the Energy to corrosion. In addition, the newly developed Conservation Grand Prize. chromate-free film offers an excellent external appearance and functionalities, suitable for potential applications in various other industrial sectors, such as electrical appliances and automobiles. Representative application: delivery box with ECOGAL Neo™ Bumper reinforcement
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 42 JFE Steel
JNP™ Series Electrical Steel Sheet Super-SINTER™/Super-SINTER™ OXY The JNP™ Series non-oriented electrical steel sheet Super-SINTER™ technology was developed to reduce is used for electric motors that drive hybrid vehicles CO2 emissions from the steel production process. (HEV) and electric vehicles (EV) and help to reduce CO2 By using hydrocarbon gas to replace part of the emissions. Using non-oriented electrical steel sheets coke breeze during ore sintering, the technology as core materials in these motors improves motor significantly enhances energy efficiency during efficiency as iron loss decreases and torque increases this process. We began using the technology on a with magnetic flux density. The JNP™ Series achieves commercial basis in a Keihin sinter in 2009, reducing high magnetic flux density and low iron loss and has CO2 emissions by up to 60,000 tons a year. We are further improved magnetic flux density compared now applying the technology to all of our sinters in to conventional products. This Japan. helps to deliver higher power and efficiency to motors. Various Conventional 400 Super-SINTER™ method grades are available to suit a Air Air hydro carbon gas wide range of motors. JNP™ was 300 awarded the 34th Technological Conventional 200 method Development Prize from The
Japan Institute of Metals. Electric vehicle motor Thickness (mm) 100 Super- SINTER™ Radiant Tube Burner with Effluent Gas Recirculation 0 800 1,600 We developed a new burner that uses radiant heat for Temperature (°C) continuous annealing furnaces in steel plate production. It achieves the lowest level NOx in Japan and also Ferro Coke conserves energy by using a compact heat exchanger. It JFE Steel Corporation, Kobe Steel Ltd, Nippon Steel employs a very unconventional combustion mechanism Sumitomo Metal Corporation, Tohoku University and that recirculates generated exhaust gas inside the tube. Kyushu University have jointly launched NEDO’s Lowering the temperature and the oxygen level during project, “Technology Development for Eco-friendly the combustion process reduces NOx generation. In Ironmaking Process/Technology Development for an addition, the heat exchanger, which is highly dense with Ironmaking Process Utilizing Ferro-coke.” During its heat exchanging elements, is extremely compact and planned duration of six years from June 2017, the ideal as an enhancement installation unit to the system. project will construct a medium-scale plant capable There have been 162 units installed in annealing furnaces of producing 300 t/day of ferro-coke in JFE Steel’s in the Fukuyama district, achieving a 12% reduction in West Japan Works (Fukuyama district) to establish the gas emissions, while CO2 emissions are being reduced technology for producing and using ferro-coke. by 1,900 tons per year. Additionally, the technology received the 2017 Energy-Efficient Machinery Award. ■ Ferro-coke Production Process Up to 10% energy savings Super low NOx burner Steel plate blending/ kneading Reduction of Fuel gas low-rank machine carbon materials iron ore grinder Exhaust gas conventional dry furnace coke distillation furnace molding non-rank machine coal dryer
Fuel air Expanding molded product Radiant tube the use of Ferro-coke production low-rank 300 tons daily Compact heat exchanger materials →Higher preheat air temperature Heating steel plates using radiant heat
43 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Shoji Trade
Contribution to the Reduction of CO2 Emissions Biomass Fuel Management (Steel Slag Hydrated Matrix) In response to growing demand for biomass fuels by Steel Slag Hydrated Matrix, primarily made of steel biomass power generation companies, JFE Shoji Trade slag, can be used as a substitute for concrete without imports palm kernel shells to Japan from Malaysia and relying on a natural construction India. aggregate. In addition, unlike In addition, as the trend toward reducing CO2 cement, it does not require emissions accelerates, demand for renewable energy any burning process during is rising, especially for biomass power generation not production, resulting in affected by weather conditions. We will respond to the elimination of 75% of this demand by exploring other types of biomass fuels, Protecting the Environment CO2 emissions when used such as wood pellets, to ensure a stable supply of as an alternative material. biomass fuels. Furthermore, the material acts as an excellent adhesion Wood pellets are a biomass fuel that allows for the base for marine organisms such as seaweed, so its effective reuse of wood materials from thinning and pruning application could benefit environmental ecosystems. forests or waste materials from woodworking operations. Wood pellets are considered to be ideal as a ■ CO2 Emission Comparison (Hydrated Matrix, Concrete) biomass fuel for renewable energy since the CO2 emitted by burning them is offset by the CO2 absorbed 76% less Hydrated Matrix during tree growth. Contributing to Societal Development 60% less We will continue to supply fuel to biomass power Portland blast-furnace generation companies, including JFE Engineering, slag cement type-B and do our part in the JFE Group’s overall contribution toward realizing an eco-friendly society. Portland cement
0 50 100 150 200 250 ■ Shipping Bases for Palm Kernel Shells
CO2 emissions (kg/m³) Thailand
Lahad Datu Brunei Malaysia Improving Marine Environments with Bintulu
Malaysia Marine Stones™ Johor Kuching In a joint research project* with the City of Yokohama, Singapore Indonesia
JFE Steel has confirmed that steel slag products, Jambi including Marine Stones™, provide a highly effective Padang base for nurturing and growing sea organisms while also facilitating the natural cleansing of seabeds and Shipping base (Padang) seawater. We will continue to work on this project with Export ports the City of Yokohama toward improving the marine environment and restoring marine ecosystems in ■ Before Biomass Fuel Is Used (Wood Pellets) Yokohama Bay. Upstream Mid-stream Downstream * Joint research related to research on techniques to improve a marine life environment and facilitate the natural cleansing ability of seawater near the Afforestation JFE Shoji Trade Power generation shores of Yamashita Park. companies / Pellet Makers wood processing Import / export companies factories to Japan
Marine Stones™ Suppliers are selected with consideration for corporate Research site at legitimacy, traceability and sustainability of their products. Yokohama Park
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 44 JFE Engineering
Composite Biomass Energy Utilization Project FOCUS Construction of composite biomass energy facilities in Toyohashi City, Aichi Prefecture was completed in October 2017. These facilities combine the methane Global Remote Center fermentation treatment of food waste, human waste/ septic tank sludge and sewage sludge, which had Leverage AI and Big Data to Optimize Plant Operations, previously been treated separately. The plant uses the ● biogas generated in this process as fuel for electric power generation. JFE Engineering established the Global Remote Center (GRC) within its Yokohama head office. The center integrates the maintenance and remote monitoring of various types of plants such as waste- fueled power generation, solar power generation, biomass power generation, and pipelines around the clock, all of which were previously handled Toyohashi Bio Will separately. The GRC supports the operations of clients’ Optimization of Energy from Procurement to Supply To generate electricity and heat, cogeneration systems will be installed at two production sites of Nisshin OilliO Group Ltd. JFE Engineering will then perform flexible electric power sharing with other production sites of Nisshin OilliO, utilizing the surplus electricity, and its own power sources and/or power transmission network. All energy flow from procurement through Functions of the Global Remote Center supply are optimized, thereby saving energy and reducing CO2. Support plant Control and optimize power operations generation that meets the 1 for greater 2 forecasted demand control Owned Power Sources General Customer stability for electricity (biomass/solar/etc. power generation)
JFE Engineering Group Electricity Electricity Retailing Business Balancing Supply- The JFE Engineering Group has started retail and-Demand renewable energy business through its subsidiary Steam Urban Energy Corporation and by leveraging its Global Sharing of Remote Center (GRC). In line with the forecasted surplus electricity generated demand for by cogeneration electricity Power generation Demand Demand cogeneration cogeneration and the forecast characteristics Mizushima Sakai Plant Plant of power
Yokohama Isogo generation Power generation Nagoya Plant Plant plants (solar, plan Production sites of Nisshin OilliO throughout Japan waste-fueled, (Time) Flow of Electricity Flow of Steam
45 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation Waste-fueled Power Generation Plant Management Waste is not simply incinerated at waste disposal and treatment facilities; the heat generated from the process of burning waste is used to generate electricity, reducing the impact on the environment surrounding these facilities. Contributing to the Creation of a Sustainable Society
plants using AI and Big Data. JFE Engineering Protecting the Environment has constructed the organization to provide enhanced optimum operational solutions for remote monitoring and maintenance across the globe. By controlling and optimizing the output of Green Plaza Fujimi renewable energy power generation to match the forecasted demand control for electricity, we Biomass Power Generation Plants ensure stable supply of energy. This in turn leads to These plants use resources derived from organic expanded use of renewable energy. matter as fuel to generate power. Wood materials from thinning forests or palm kernel shells that remain
from palm oil extraction are examples of such fuels. Contributing to Societal Development Their use prevents an increase in atmospheric CO2 originating from the burning of fossil fuels.
Green Energy Tsu Monitor overseas Provide diagnostic 3 plants and support 4 and maintenance quick recovery as support for industrial Overseas Expansions the need arises machinery Furthermore, we are expanding support for overseas eco-friendly facilities, building waste-fueled power generation plants and water and sewage treatment plants, and providing operational support for them.
etc.), GRC produces the optimal power generation plan for each plant to meet demand, thus ensuring the stable supply of electricity.
Myanmar Waste-fueled Power Generation Plant
JFE Solar Power Shimizu
SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation JFE Group CSR REPORT 2018 46 Protecting the Environment Environmental Communication
The JFE Group gives utmost priority to communicating Sponsoring “Midori no Komichi” with all stakeholders, including in matters relating to Environmental Diary the environment. The JFE Group sponsors the “Midori no Komichi (Green Trail)” environmental diary project hosted by Green Cross Disclosing Environmental Data Japan with the hope that children will become more aware of environmental issues by keeping diaries of their The East Japan Works of JFE Steel discloses real- activities and thoughts about ecology. time environmental data on local air and water quality. Web “Midori no Komichi” Environmental Diary (Japanese only) ➡ Visitors can review this information in the first-floor http://www.midorinokomichi.net/ lobby of the Visitor Center in the Chiba District and in the Amenity Hall and the first-floor lobby of the Keihin Environmental Exhibition—EcoPro 2017 Building in the Keihin District. The JFE Group exhibited its environmentally friendly products and technologies at EcoPro 2017, Japan’s largest environmental exhibition, in December 2017. The booth’s theme was “Realizing a sustainable society with JFE technologies.” In addition, the company supported Green Cross Japan by running tours for children, called the “EcoPro EcoKids Tour.”
Environmental data display in the Keihin District
JFE Group’s exhibition booth Disclosure and Exchange of Information Exhibits at the N-EXPO (New Environmental Exposition) “ecobeing” Environmental Website JFE Steel exhibited its EVERHARD™ and JFE-HITEN, The JFE Group cooperates with the “ecobeing” abrasion-resistant steel sheets at the 2018 N-EXPO environmental website, which helps to broaden held at Tokyo Big Sight from May 22 to May 25, 2018. awareness of eco-activities. The site contains a series JFE Steel has participated in the event for seven of articles featuring persons from different fields. consecutive years to promote its abrasion-resistant The spring 2017 issue's “MIRAI SEKKEIZU (a future steel sheets and high tensile strength steel sheets. design map)” includes a special discussion in which This year our exhibition booth was designed to Hideki Ishida, Kameishi Takamasa and Gentaro Yui focus on improving the brand recognition of our exchange ideas. products, especially in the construction and industrial machinery industries by displaying Taguchi Industrial’s GUZZILA CUTTER, a hydraulic steel frame cutter, as a representative application of EVERHARD™, as well as guidelines for other products. The high-impact display attracted big crowds every day of the event, with the total number of visitors this year reaching a record high. Special discussion
Web ecobeing ➡ http://www.ecobeing.net/ (Japanese only)
Our event team at the exhibition booth
47 JFE Group CSR REPORT 2018 SJFE Steel Corporation EJFE Engineering Corporation TJFE Shoji Trade Corporation