Release

Proterial to Use J-Credits from Forest Management Activities
in Okuizumo-cho


Proterial, Ltd.

Proterial, Ltd. (hereinafter “Proterial”) has decided to step up its efforts to reduce CO2 emissions by purchasing J-Credits*1 generated through forest management activities in Okuizumo-cho in Nita-gun, Shimane Prefecture (hereinafter “Okuizumo-cho”).

1. Background and overview

Proterial has defined a contribution to realizing a decarbonized society as an important management issue (material issue). To address this issue, the Company has set the medium-term target of reducing CO2 emissions from its own business activities by 38% by FY2030 compared with FY2015, and the long-term target of achieving carbon neutrality by 2050. To achieve these targets, Proterial is expanding its use of renewable energy, including the use of solar power generation systems, while also promoting energy conservation through measures to improve the efficiency of production equipment and other measures.

Proterial’s main plant, the Yasugi Works (Yasugi, Shimane Prefecture), has its roots in Tatara steelmaking, an ancient Japanese ironmaking method that flourished in Okuizumo-cho. The spirit of manufacturing embodied by this tradition has been preserved in the advanced manufacturing activities of Proterial today, and it remains a source of Proterial’s competitiveness. Because Tatara steelmaking uses natural resources such as iron sand and charcoal, the forests used for charcoal production in Okuizumo-cho have traditionally been harvested on an approximately 30-year cycle that enables their sustainable and circular use.

Proterial has decided to step up its efforts to reduce CO2 emissions by purchasing J-Credits generated through forest management activities in Okuizumo-cho, a place with deep historical ties to the Company and where Nittoho Tatara*2 operations continue today. In addition to using the purchased J-Credits to offset carbon emissions, Proterial will continue to support forest management activities in Okuizumo-cho, thereby contributing to the reduction of CO2 emissions and the preservation of the historical and cultural heritage that is the foundation of the Yasugi Works so that it can be passed down to future generations.

2. J-Credits to be purchased and used

Purchaser: Proterial, Ltd.
Credit originator: Okuizumo-cho
Seller: Bywill Inc.
Sales intermediary: The San-in Godo Bank, Ltd.
Purchase period: Eight years (April 2026–March 2034)
Purchase volume: 500 t-CO2 per year (4,000 t-CO2 in total)

3. Comment from Hiroshi Watanabe, Plant Manager of Proterial’s Yasugi Works

Proterial’s roots lie in Tatara steelmaking, a tradition that has been passed down in Okuizumo-cho since ancient times. Today, the Company continues to preserve this tradition and spirit through its manufacturing activities, including the production of its Yasugi Specialty Steel™. In this context, reducing CO2 emissions is an issue on which Proterial must focus. We believe that using the J-Credits generated through the forest management activities in Okuizumo-cho is of great significance to Proterial. We would like to express our sincere gratitude to the people of Okuizumo-cho and to everyone else involved in these activities.

  1. *1In the J-Credit Scheme, the Japanese government certifies reductions in greenhouse gas emissions achieved through initiatives such as the introduction of energy-saving and renewable energy equipment, as well as the sequestration of greenhouse gases achieved through appropriate forest management and other activities as J-Credits. Issued J-Credits can be traded with other companies, and purchasers can use them to achieve their own greenhouse gas reduction targets and for other purposes.
  2. *2Nittoho Tatara is operated by the Society for Preservation of Japanese Art Swords. Proterial has supported Nittoho Tatara’s operations since 1977 (when the Company was known as Hitachi Metals, Ltd.) to help preserve and pass on the techniques and culture of Tatara steelmaking.

Yasugi Specialty Steel is a trademark of Proterial, Ltd.