Polyester fibres and products producer Teijin Limited has introduced an internal carbon pricing (ICP) system for capital investment plans throughout the group.

The ICP mechanism creates 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 says it 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 group-wide 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 group-wide, including from the group's upstream supply chain.

Through the launch of the 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.

Under its long-term vision to support the society of the future, Teijin focuses on three fields: environmental value;  safety, security and disaster mitigation; and demographic change and increased health consciousness.