Toray Industries Inc.

InfluenceMap Score
D
Performance Band
48%
Organisation Score
45%
Relationship Score
Sector:
Chemicals
Head​quarters:
Tokyo, Japan
Official Web Site:

Climate Lobbying Overview: Toray Industries has limited direct engagement with climate policy, both in Japan and globally. It has expressed some support for achieving global carbon neutrality and the goals of the Paris Agreement in its top-line messaging. The company has had some mixed engagement on carbon taxes and has expressed strong support for green hydrogen, ammonia, and synthetic natural gas.

Top-line Messaging on Climate Policy: Toray Industries appears supportive of the goals of the Paris Agreement, stating in a press release on its website in November 2021 that it will “continue to help materialize the United Nations’ Sustainable Development Goals and the Paris Agreement’s objectives.” The company appears broadly supportive of the need to respond to climate change, but it has not clearly communicated its position on the need for climate policy and regulations and appears to emphasize concerns over feasibility. In November 2021, Newswitch reported that Toray Industries CEO Akihiro Nikkaku said that the movement toward achieving global carbon neutrality is “welcome,” however he stated in an interview with Zaikai in April 2021 that “the hurdle to zero emissions is high, and it is important to achieve balance, not zero,” and appeared to emphasize the need for policies that consider such feasibility. The general manager of the company's Global Environmental Business Promotion Strategy department made similar comments in a media interview with Newspicks in November 2021.

Engagement with Climate-Related Regulations: Toray Industries appears to have limited disclosure of its climate-relevant policy positions and lobbying activities on its corporate website. The company appears to have a mixed position on carbon tax. In a sponsored feature in the Economist Impact in December 2021, the company expressed hope that government support for R&D “combined with measures to tax CO2” could improve economic conditions for increased deployment of hydrogen. However, regarding carbon border adjustment mechanisms, in a METI Hydrogen and Fuel Cell Strategy Council meeting in March 2021, it expressed concerns about the “possibility of a market lockout such as a tax on products from countries that are not as advanced in decarbonization as the EU” due to the border carbon tax. In its 2021 CDP submission, Toray Industries disclosed its direct engagement with policymakers in support of reducing GHG emissions through the value chain based on a life cycle assessment approach, however, without indicating its position regarding GHG emissions regulations.

Positioning on Energy Transition: Toray Industries appears to strongly support decarbonization of the energy mix. In the METI Hydrogen and Fuel Cell Strategy Council in March 2021, Toray Industries made numerous policy requests regarding green hydrogen, including the establishment of a public-private mechanism to recover costs, electricity tracking to “accelerate the spread and expansion of green hydrogen,” an exemption from the renewable energy feed-in tariff, a framework for public-private international collaboration, and R&D support. In the same meeting, the company stated support for “electrification with decarbonized electricity, hydrogenation, methanation, synthetic fuels, etc.” and a “balance” between the overseas procurement of green hydrogen and ammonia and the development of domestic hydrogen infrastructure. In an interview with Zaikai in April 2021, Toray Industries CEO Akihiro Nikkaku predicted that around 2030, “it will be a hydrogen-based society,” but did not specify a position on the need to decarbonize its production. However, at the Nikkei Social Innovation Forum in September 2021, an executive advisor of Toray Industries stated that “in order to realize carbon neutrality, it is necessary to expand the supply of green hydrogen that does not emit CO2 at the manufacturing stage and reduce manufacturing costs.” Furthermore, articles in the Economist Impact sponsored by Toray Industries in December 2021 recognized hydrogen as playing a “key role” in realizing “zero-carbon energy and the circular economy” and advocated for collaboration among industry, government, and academia to promote hydrogen initiatives and infrastructure, stating that “Toray believes the next decade will become green hydrogen’s moment.”

In articles by the Wall Street Journal Custom Studios published on the Toray Industries corporate website in 2019, the company described benefits of bioenergy as a renewable energy source over fossil fuels and recognized the “need to convert as many sectors of the economy to renewable energy as quickly as possible,” however it did not communicate a position regarding the extent of this increase nor the need for policy to support such transitions.

Industry Association Governance: Toray Industries lacks a dedicated, clearly identifiable disclosure of its memberships and engagement with industry associations on its corporate website, and has only disclosed its membership in the Japan Chemical Industry Association (JCIA), despite also being a member of the Japan Business Federation (Keidanren), Japan Chemical Industry Association (JCIA), Japan Pharmaceutical Manufacturers Association (JPMA), Japan Society of Industrial Machinery Manufacturers (JSIM), and Central Japan Economic Federation (CJEF). In addition, Toray Industries is an associate member of the Japan Apparel-Fashion Industry Council (JAFIC), while its subsidiary Toray Diplomode is a direct member. Keidanren and CJEF appear to have lobbied negatively on a number of climate-related policies, as well as JCIA and JSIM to a lesser extent.

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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
48%
 
48%
 
56%
 
56%
 
47%
 
47%
 
47%
 
47%
 
48%
 
48%
 
42%
 
42%
 
22%
 
22%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.