The Formulation of an Investment Strategy to Achieve Carbon Neutrality

(former)other

2021-11-04

Toyota Tsusho Corporation ("Toyota Tsusho") has announced that it will proceed 1.6 trillion yen scale investment by 2030 for the achievement of carbon neutrality, and it will introduce two new internal systems to accomplish the greenhouse gas ("GHG") emission reduction targets it announced in July.

1．Investment Strategy

・By 2030, Toyota Tsusho will invest 1.6 trillion yen scale to reinforce businesses moving towards carbon neutrality
・Toyota Tsusho established five areas of focus that propel the circular economy in each stage of the industrial lifecycle to reinforce; “energy creation ,” “energy collection and coordination ,” “manufacture of goods,” “transport of goods,” “use of goods,” “waste processing,” and “reuse and recycling

<Areas of Focus>

Business areas	Initiative overview	Scale of investment
Renewable energy and energy management	・50% of in-house power consumption from renewable energy ・Contribute to the needs of important customer groups’ transition to renewable energy ・Expand the introduction of renewable energy generation	700 billion yen
Batteries	・Construct a Local Production for Local Consumption supply chain model ・Participate in the battery manufacturing business ・Expand ability to supply resources such as lithium ・Participate in raw material and parts manufacturing business	400 billion yen
Hydrogen and alternative fuel	・Successful use of three models (ports, public transport and distribution) of large-scale hydrogen and FC (fuel cell) in over 10 places ・Successful supply of alternative fuel in the Chubu district	200 billion yen
Resource circulation and the 3Rs * Rebuild、Reuse、Recycle	・Establish the Circular Economy x Carbon Neutral Business, based on the Circular Economy (CE) Innovation Center ・Achieve battery to battery, metal and resin recycling, and CO2 recycling	200 billion yen
Economy of Life (Fields relating to medicine, clothing, food and housing)	・Obtain carbon credit through agribusiness ・Renew the Economy of Life Business based on the concepts of circular economy and carbon neutrality	100 billion yen

2．Introducing Internal Systems

・Toyota Tsusho will introduce two new internal systems to achieve carbon neutrality

1) Internal Carbon Pricing System:
A system in which in the event the volume of GHG emitted in business activities of the sales divisions exceeds the emission as of 2019, a carbon cost is deducted from profits, and in the event of reduction thereof, the carbon credit will be added to profits.

2) Subsidy System for Investments in Infrastructure for Decarbonization:
A system in which the long-term interest and depreciation costs pertinent to installing equipment or facilities that contribute to decarbonization is subsidized through carbon credit

GHG emissions reduction targets announced in July is as follows.
【Reference】 Targets
・2030: Reduce GHG emissions by 50% in comparison to 2019 levels
・2050: Carbon neutrality (Net zero GHG emissions)

<Scope of application>
・Non-consolidated and domestic/overseas consolidated subsidiaries Scope 1 and Scope 2
*Scope 1: Direct GHG emissions from Toyota Tsusho use of fuel, etc.
*Scope 2: Indirect GHG emissions from Toyota Tsusho use of purchased electric power and heat

The Toyota Tsusho Group will continue to contribute to the world’s transition to a carbon neutral society by proactively propelling its businesses contributing to the reduction of GHG through aggressive investment and the execution of concrete plans in its business areas where it can leverage the strength, so as to pass on a better global environment to the children of the future.

The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.

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