Climate Change
- Surrounding Environment
- Policy
- Disclosure Based on TCFD Recommendations
- Cooperation with Industry Organizations
- Toyota Tsusho Group CO2 Emissions Reduction
- Climate Change Adaptation
- Strategy on Climate Change Risks and Opportunities(External Collaboration)
- Advocacy of COOL CHOICE
- CDP
- ISO 50001
- Performance Data
Surrounding Environment
We identified climate change as one of our materialities that matter most to our business.
The United Nations' Sustainable Development Goals (SDGs), which consist of 17 global goals, specify Goal 7 as "Affordable and Clean Energy" and Goal 13 as "Climate Action." Also, the Paris Agreement, which has been in the implementation stage since 2020, aims to keep the global average temperature rise below 2°C compared to before the Industrial Revolution and to make efforts to keep it down to 1.5°C.
To achieve these, there is an urgent need to develop and disseminate renewable energy alternatives to oil and coal, and mechanisms that enable efficient use of energy. Companies are also required to contribute to the creation of a sustainable society by grasping changes in environment (E) and society (S) and implementing appropriate governance (G).
Policy
The Toyota Tsusho Group has established as one of its Materialities: "Contribute to the transition to a carbon-free society by reducing CO2 emissions at automotive, manufacturing, and plant constration through the use of clean energy and innovative technologies."
To this end, we have positioned our renewable energy business as one of our four priority business domains.
We intend to engage in a variety of unique initiatives aimed both at combating climate change and at growing the company at the same time. These include our renewable energy business; the stable supply of lithium - which is a key material for next-generation eco-cars - and the rebuilding, reusing, and recycling (the so-called "3Rs") of batteries in the mobility field; and increased sales of products, such as bioplastics and recycled aluminum, that contribute to reductions in CO2 emissions in other fields.
Disclosure Based on TCFD Recommendations
The Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD) to examine how climate-related information should be disclosed, and how nancial institutions should respond. The TCFD published its nal report in June 2017. The nal report recommends that corporations and organizations disclose to stakeholders their climaterelated risks and opportunities in four areas: governance, strategy, risk management, and metrics and targets.
At Toyota Tsusho, we believe climate change to be a key management issue and, in May 2019, expressed our support for the TCFD. Based on TCFD recommendations, we intend to disclose more information related to the in uence that climate change has on our business activities.
1.Governance
We identified climate change as one of the Materialities that matter most to our business. Actions relating to Materialities are verified by the Sustainability Management Committee, which meets annually, and are then reported to the Board of Directors as appropriate. The particulars of these deliberations are incorporated into our business strategies via division CEOs who make up the committee. Since 2020, the committee has also been tasked with setting key performance indicators (KPIs) and has been reviewing progress.
The status of achievement of energy-saving targets, as well as climate change-related revisions to laws and regulations and responses to new requirements, are deliberated at our annual Safety and Environment Conference. The plan-do-check-action (PDCA) improvement cycle is also confirmed at the conference. The details of these deliberations are incorporated into our business activities via the representatives of the sales divisions and group companies who make up the participants in the conference.
Furthermore, we established the Task Force for Promoting Carbon Neutrality as a cross-company organization in April 2021, which meets monthly to discuss strategies for the transition to a decarbonized society. This is where we also manage the progress of greenhouse gas emissions reductions by our corporate group.
Sustainability Management Committee | Decisions on policies and important issues related to Materialities, including climate change |
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Chairperson | Ichiro Kashitani (President & CEO) |
Representative officers in charge | Hiroshi Tominaga (Member of the Board, CSO) |
Secretariat | Sustainability Management Group, Corporate Planning Department |
Global Safety & Environmental Promotion Meeting | Progress in addressing climate change-related laws and regulations, etc. |
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Representative officers in charge | Akihiro Sago (Executive Vice President) |
Representative officers in charge | Akinori Saito (CSKO) |
Secretariat | Global Safety & Environmental Promotion Department |
Task Force for Promoting Carbon Neutrality | Decisions on strategies towards the achievement of carbon neutrality |
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Representative officers in charge | Ichiro Kashitani (President & CEO) |
Representative officers in charge | Toshimitsu Imai (Executive Vice President, CDTO) |
Secretariat | Carbon Neutrality Promoting Department |
2.Strategy
1) Scenario Analysis
We view the issue of climate change as one of the most important challenges the world faces, and we conduct scenario analysis, following the TCFD recommendations, of selected businesses that are significantly impacted by climate change.
As for the impact on business, we selected factors that are significantly affected and conducted a scenario analysis. In terms of risks, we considered transition risks (policy and regulation, technology, markets, and reputation) and physical risks (acute and chronic) while taking into account resource efficiency, energy sources, products and services, and markets in terms of opportunities.
Furthermore, we aim to reduce our greenhouse gas emissions by 50% compared to the 2019 level by 2030, and we used the year 2030 as the time frame for this scenario analysis as well.
Reference Scenarios
We referred to the following scenarios from the International Energy Agency (IEA), Intergovernmental Panel on Climate Change (IPCC), and other sources to assess new business opportunities and business resilience and to analyze the impact on our business in the event of significant changes in our business environment as a result of climate change.
Category | Scenario overview | Main reference scenarios |
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Below 1.5°C/2°C scenario | Under this scenario, policies and regulations are implemented to achieve a decarbonized society and the global temperature increase from the pre-industrial level remains below 1.5°C/2°C. Although the transition risk is higher than under the 4°C scenario, the physical risk is lower. |
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4°C scenario | Under this scenario, no new policies or regulations are introduced and CO2 emissions continue to increase. The transition risk is lower than under the below 1.5°C/2°C scenario, but the physical risk is higher. |
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Selection of Subject Businesses
Among Toyota Tsusho’s businesses, those that are significantly affected by climate change (from perspectives A–D below) were selected as the subject businesses for scenario analysis, and the analysis was conducted for the lithium business, molten aluminum production business, renewable energy business, and automotive sales business. Going forward, we will expand the scope of subject businesses.

The scenarios and understanding of the business environment in this scenario analysis are based on major scenarios presented by international organizations and others and do not represent the medium- to long-term outlook.
2) Results of Scenario Analysis for Each Business
Toyota Tsusho’s production of lithium carbonate began in 2014 at Salar de Olaroz, Argentina, to supply raw materials used in automotive lithium-ion batteries, which are essential for electrified vehicles. We are constructing a lithium hydroxide manufacturing plant in Naraha-machi, Fukushima Prefecture, with production slated to start in 2022.
Climate-related Risks and Opportunities
Category | Details |
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Risks | Impact on the production volume of lithium carbonate production business in Argentina caused by natural disasters, extreme weather conditions, etc. |
Opportunities | Fluctuations in demand for lithium products due to vehicle electrification, etc. |
Impact on Businesses in Each Scenario
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- In both scenarios, demand for electrified vehicles and storage facilities that use lithium batteries is expected to increase.
- Regarding the risk of reduced lithium production efficiency at the lithium carbonate production business site in Argentina due to changes in rainfall, any impact on lithium production is expected to be minor as the level of precipitation is expected to remain relatively constant, judging from the results for 2021 and the years leading up to it.
- In a comparison between the below 1.5°C/2°C scenario and the 4°C scenario, a larger increase in demand for electrified vehicles and storage batteries is expected in the below 1.5°C/2°C scenario, resulting in greater opportunities for this business overall.
Our Measures
We will aim to build a long-term stable supply structure by enhancing our existing capacity to meet the increasing demand for lithium that will accompany the full-scale popularization of electrified vehicles. In addition, we will expand our business domain and build a structure for the stable supply of lithium hydroxide in preparation for the expected increase in demand due to increasing battery capacity in the future.
We supply recycled aluminum to customers in molten form, which reduces CO2 emissions, and are one of the world’s leading suppliers of recycled aluminum. Aluminum parts required for weight reduction will be increasingly in demand as the popularization of electrified vehicles accelerates. In addition, demand for recycled aluminum is also expected to increase due to the recycling of aluminum scrap for environmental considerations.
Climate-related Risks and Opportunities
Category | Details |
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Risks | Impact on business due to changes in the sales mix of gasoline and electrified vehicles Impact on business due to introduction of a carbon tax, etc. |
Opportunities | Fluctuations in demand for aluminum due to vehicle electrification Fluctuations in demand due to the replacement of virgin aluminum with recycled aluminum |
Impact on Businesses in Each Scenario
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- In the below 1.5°C/2°C scenario, the share of gasoline vehicles in total sales volume is expected to decrease due to stricter fuel efficiency regulations and other factors. On the other hand, demand for weight reduction is expected to increase as the sales ratio of electrified vehicles grows, and demand for recycled materials is expected to increase globally, expanding opportunities for this business as a whole.
- In the 4°C scenario, it is assumed that fuel efficiency regulations will not be tightened as in the below 1.5°C/2°C scenario, and the impact on this business overall is expected to be limited.
Our Measures
This business is positioned as one of the circular economy businesses of our priority areas, and we will globally undertake the enhancement of functions from upstream to downstream in the aluminum recycling value chain. In response to cost increases due to the introduction of a carbon tax and other factors, we will strive to reduce greenhouse gas emissions through the use of new technologies and other measures.
We are expanding wind, solar, hydroelectric, geothermal, biomass, and other power generation businesses around the world and focusing on promoting development in Africa and emerging countries and the development of offshore wind power generation.
Climate-related Risks and Opportunities
Category | Details |
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Risks | Impact on business due to revision of renewable energy-related policies (feed-in tariffs, subsidies, tax breaks, etc.) |
Opportunities | Impact on business from the increasing demand for renewable energy |
Impact on Businesses in Each Scenario
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- In the below 1.5°C/2°C scenario, although the discontinuation of feed-in tariffs as a result of the revision of renewable energy policies could have an impact, it is expected that worldwide development of policies and a significant increase in demand for renewable energy will lead to progress of related technological innovations and renewable energy becoming a core energy source. Accordingly, the opportunities for this business as a whole are expected to expand as development progresses in response to the demand for renewable energy.
- In the 4°C scenario, although feed-in tariffs could be abolished as a result of policy changes, demand for renewable energy is expected to increase to a certain level, although not to the same degree as under the below 1.5°C/2°C scenario, thus limiting the impact on this business as a whole.
Our Measures
As this business is positioned as one of our priority areas, we plan to expand our business domains, including diversifying our portfolio of power sources and conducting energy management, while accelerating global development by reinforcing our existing businesses. We will contribute to the creation of a better global environment through the stable supply of renewable energy with a competitive advantage.
We export passenger cars, commercial vehicles including trucks and buses, industrial vehicles, and spare parts produced by automobile and transport equipment makers, primarily in the Toyota Group in Japan and overseas, to countries around the world. As well, we conduct business as sole import distributors and dealers through our global network that spans 150 countries around the world.
Climate-related Risks and Opportunities
Category | Details |
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Risks | Impact on business due to changes in the sales mix of gasoline and electrified vehicles |
Opportunities | Fluctuations in demand for electrified vehicles |
Impact on Businesses in Each Scenario
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- In both scenarios, the total sales volume of new vehicles is expected to increase globally, especially in emerging countries, thus the risk to the overall business is expected to be minor.
- In the below 1.5°C/2°C scenario, the share of gasoline vehicles in total sales volume is expected to decrease due to stricter fuel efficiency regulations, though the share of electrified vehicles is expected to increase, expanding opportunities for this business as a whole.
- In the 4°C scenario, fuel efficiency regulations will not be tightened to the same degree as under the below 1.5°C/2°C scenario, and the impact on the sales ratio of gasoline and electrified vehicles will be small, so the impact on the overall business is expected to be limited.
Our Measures
Given that the new vehicle market is expected to continue to expand, especially in emerging countries, we will strengthen our sales structures worldwide. We will also promote the popularization of electrified vehicles by securing resources for battery materials, which are key components of electrified vehicles, and by expanding the vehicle battery 3R business domain along with expanding our lineup of electrified vehicles.
3. Risk Management
We manage environmental risks—which include climate change—to a high standard. Business opportunities and risks related to climate change are deliberated by the Safety and Environment Conference and the Sustainability Management Committee, and their members incorporate the details of these deliberations into our business strategies and activities.
Investments and Loans
At Toyota Tsusho, our officers participate in various meetings to see the impacts that our investment activities have on ESG: The executive vice president, CSO, and CFO take part in the Investment and Loan Committee; the CFO in the Investment and Loan Meeting; and the president, executive vice president, CSO, CFO, and general manager of the Corporate Planning Department in the Investment Strategy Meeting. Among the evaluation items of the Investment and Loan Committee and the Investment and Loan Meeting are environmental risks.
We identify those risks that exceed certain condition thresholds that are reported to either the Investment and Loan Committee or the Investment and Loan Meeting. Should there be any concerns, we address them and are required to report measures and subsequent improvement.
Toyota Tsusho has acquired certification under ISO 14001, an international standard related to environmental management systems. Toyota Tsusho monitors the risk management processes of domestic and overseas consolidated subsidiaries, such as carrying out internal environmental audits once every three years.
Investment Strategy
By 2030, Toyota Tsusho will invest 1.6 trillion yen scale for the achievement of decarbonized society. Toyota Tsusho identified five priority areas that promote the circular economy in each stage of the industrial lifecycle; "energy creation," "energy collection and coordination," "manufacture of goods," "transport of goods," "use of goods," "waste processing," and "reuse and recycling."
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- Renewable energy and energy management: Scale of investment 700 billion yen
- Batteries: Scale of investment 400 billion yen
- Hydrogen and alternative fuel: Scale of investment 200 billion yen
- Resource circulation and the 3 Rs (rebuild, reuse, recycle): Scale of investment 200 billion yen
- Economy Of Life (Fields relating to medicine, clothing, food and housing): Scale of investment 100 billion yen
4. Metrics and Targets
Greenhouse Gas Emissions Reduction Targets and Future Initiatives
Achieving carbon neutrality in the Toyota Tsusho Group's operations is as essential as contributing to carbon neutrality in society. Therefore, in July 2021, as a concrete policy toward contributing to the transition into a decarbonized society, the group established a target of reducing greenhouse gas emissions generated through the business activities of Toyota Tsusho and its domestic and overseas consolidated subsidiaries (Scope 1*1 and Scope 2*2) by 50% compared to 2019 levels by 2030 and achieving carbon neutrality by 2050.
The Toyota Tsusho Group aims to achieve these targets by promoting comprehensive energy conservation and renewable energy measures (installing LED lighting at business offices and plants, installing solar power generation facilities at company-owned buildings and structures), as well as reducing CO2 emissions from production processes and logistics operations, and reducing emissions through technological innovation.
The capability to accelerate and promote businesses that contribute to the reduction of greenhouse gas emissions throughout the entire industrial life cycle is a strength of the Toyota Tsusho Group. All employees of the group will unite and exert ourselves to contribute to the solution of these social issues.

- ※1Direct greenhouse gas emissions from Toyota Tsusho’s use of fuel (coal, gas, etc.)
- ※2Indirect greenhouse gas emissions from Toyota Tsusho’s use of purchased electric power and heat
- ※3Covers Scope 1 and Scope 2 emissions from the Toyota Tsusho Group; calculated using the Greenhouse Gas Protocol
Cooperation with Industry Organizations
Japan Foreign Trade Council
We regard the consideration and implementation of climate change mitigation and adaptation measures to be key issues, and actively strive to create new businesses and solutions. In addition, as both a regular member and vice chairman of the Japan Foreign Trade Council, Inc. (JFTC), we aim to contribute to the achievement of the Paris Agreement’s long-term goal of carbon neutrality by 2050, in cooperation with other industries and organizations.
As an example, the Act on Rationalizing Energy Use (Energy Conservation Act) requires specified consignor companies to cooperate with transportation companies to promote energy conservation under the specified consignor system. However, the current Act makes it difficult to achieve the required indicators and targets and slows down the progress of energy conservation. The JFTC raised this issue at a meeting to exchange opinions between member companies subject to the specified consignor system and government authorities (the Ministry of Economy, Trade and Industry (METI) and the Agency for Natural Resources and Energy (ANRE)).
This led to our participation as an observer in the METI/ANRE Working Group on Classification Standards for Consignors through the JFTC.
Since 2021, at the same working group's industry interviews on “Consignor Energy Conservation Issues and Directions for Consideration," the manager and those in charge of our Global Safety & Environmental Promotion Department have participated as observers through the JTFC and raised the issues mentioned above. We are also continuing our efforts and proposals to create an environment that facilitates the promotion of energy conservation activities with transporters in the revision of the Energy Conservation Act.
Hydrogen Council
Since hydrogen does not emit CO2 when used, can be produced using biomass or renewable energy, and can be stored, we recognize that it is a strong option toward the achievement of a low-carbon society. Since 2017, we have been a Supporting Member of the Hydrogen Council, a global initiative of leading companies in the energy and transport equipment industries with a united and long-term vision for hydrogen as a contributor to the energy transition. By becoming a member of this global council that has many companies that are trying to use hydrogen for decarbonization as members, we can exchange information and opinions widely with other companies that have the big target of decarbonization. Additionally, by collecting information related to hydrogen from around the world, it is our goal to promote our hydrogen business and contribute to the achievement of a hydrogen society.
In order to create a basic model for the achievement of a hydrogen society, we are currently building a usage model, from hydrogen production and supply through to the introduction of FC (fuel cell) mobility, in areas such as ports, public transportation and logistics. We are also supporting external FC sales and the development of FC-equipped equipment manufacturers. With continuously changing market trends and tightening regulations, we make proposals at the annual priority activity plan formulation meeting for items that the Hydrogen Council should work on to ensure the expansion of hydrogen utilization and the achievement of a hydrogen society in each country, including areas where we can contribute. These items include the creation of incentives and mechanisms that will motivate users to use hydrogen and FCs and the creation of an international unified standard for hydrogen, such as GHG calculation methods.
Toyota Tsusho Group CO2 Emissions Reduction
The Toyota Tsusho Group is reducing CO2 emissions by consolidating production facilities, reducing standby power consumption, and taking other measures.
We are taking various initiatives to reduce CO2 emissions at Group companies in Japan, primarily their manufacturing operations. These include reducing power consumption through the consolidation of manufacturing facilities (reduction of idle space), installation of skylights and LED lighting, and deployment of inverter controls, as well as the reduction of standby power consumption by turning off compressors when not in use.
At the Toyota Tsusho Nagoya Head Office, efforts were made to reduce power consumption from collective seating by the introduction of non-territorial office spaces and Big Ass fans. Also, at the Toyota branch, the ratio of renewable energy used for power was increased through solar power generation, storage batteries, and energy management systems (EMS).



Climate Change Adaptation
Toyota Tsusho supports the Energy Conservation Act and the Act of Japan's regulatory system relating to climate change, such as on Global Warming Countermersures.
Furthermore,Toyota Tsusho is formulating measures for adapting to climate change with the objectives of responding to the effects of climate change and preventing or mitigating damage. The risks of weather disasters from events such as torrential rain and extreme heat are rising, and the entire Group is taking action with an awareness that the formulation, management, and operation of business continuity plans (BCPs) that anticipate these risks is crucial.
Case Study: Business Continued at an Alternate Site During Flooding in Thailand
Toyota Tsusho formulated BCPs that anticipate the inability to use key management resources as a result of physical risks of climate change and is taking various responsive measures.
In 2011, when the northern and central regions of Thailand experienced widespread flooding, damage occurred in Bangkok and seven industrial parks, and some 450 Japanese-affiliated companies were affected. Two years later, when massive flooding again occurred in October 2013, the Amata Nakhon Industrial Estate, one of Thailand's largest, was flooded and extensive damage again occurred. Despite this, TTK Asia Transport (Thailand) Co., Ltd., a Toyota Tsusho Group transportation company with a site in the industrial park, had a BCP in place, enabling it to relocate all personnel and trucks to an alternate site and maintain operations without interruption.
Strategy on Climate Change Risks and Opportunities(External Collaboration)
In the energy field, we use renewable energy and clean energy, as these are environmentally friendly energy sources.
While pursuing supply stabilization and cost reduction in the field of wind power generation - a strong field for the Toyota Tsusho Group - we will also endeavor to expand power source options such as to include geothermal power and hydraulic power, expand in regions such as Africa and the Middle East, and expand functions such as energy storage, energy transmission, and retailing, with the aim of further enhancing our renewable energy business.
Meanwhile, in the automobile-related field the popularization of next-generation vehicles such as HVs and EVs has led to rapid increases in demand for the lithium used in batteries for environmentally friendly cars. Lithium is a type of rare metal, and Japan relies on imports for 100% of its lithium materials. In order to develop new supply sources to support the proliferation of next-generation electrified vehicles, Toyota Tsusho conducted lithium reserves surveys, focused on Salar de Olaroz salt lake in northwestern Argentina, and after acquiring a 25% stake in a salt lake development project in 2012, commenced lithium carbonate production in December 2014. Toyota Tsusho will continue to contribute to the stable supply of the lithium batteries that will support the next-generation environment and the transition to a carbon-free society.
<External Collaboration>
In addition, Toyota Tsusho participates in various programs as a member of EPOC, an environmental partnership group formed by industry, government, and academia in the Chubu region. EPOC promotes the expansion of environmental behavior to society and the development of a culture for such behavior, dissemination of information on environmental behavior, and international exchange activities.
Through EPOC, we disseminate information on environmental responses from the Chubu region and seek to create a safe and comfortable circular society while establishing a world-class environmentally-advanced region.
Advocacy of COOL CHOICE
Toyota Tsusho supports the "COOL CHOICE" initiative, which encourages "smart choices" that contribute to global warming countermeasures such as switching to energy-saving and carbon-free products and reviewing lifestyles. We also adopted the new "Be Yourself," work attire guidelines, which allow all Toyota Tsusho employees to make their own decisions about what to wear at work and are compatible with the year-round Cool Biz/Warm Biz campaign.
CDP

Toyota Tsusho has been participating in CDP since the fiscal year ended March 31, 2017. CDP is an international NPO that was established in London in 2000. CDP calls on participating companies to disclose strategies on climate change and specific figures on the amounts of greenhouse gases emitted. As a representative of institutional investors with a total operational amount exceeding U.S.$100 trillion, CDP sends questionnaires to companies, analyzes and evaluates their responses, and discloses scores. Scores are ranked according to eight levels: A, A-, B, B-, C, C-, D, and D-.
CDP Evaluation Results for CDP2021
- Climate change: A-
- Water security: A-
- Forests (Palm oil): B, Forests (Timber): A-, Forests (Soy): B
ISO 50001

Toyota Tsusho acquired ISO 50001:2018 (energy management systems) certification in 2020. The scope of the certification covers business sites in Japan (18 sites in 11 prefectures) subject to notification requirements as specified businesses under the Enegy Conservation Act as well as employee benefit facilities. We created energy management standards for each site and periodically confirm their implementation status by conducting energy-saving audits to encourage energy-saving measures.
Performance Data
- Greenhouse Gas Emissions (Scope 1 and Scope 2, Domestic)
- Greenhouse Gas Emissions (Scope 1 and Scope 2, Overseas)
- Breakdown of Greenhouse Gas Emissions (Scope 1)
- Greenhouse Gas Emissions (Scope 3)
- Internal Carbon Price

CO2 emission factors from electricity: Basic emission factors in "Emission Factors by Electric Utility Operator" published by Ministry of the Environment and Ministry of Economy, Trade and Industry (published January 2022)
CO2 emission factors from non-electricity sources: "Greenhouse Gas Emissions Accounting and Reporting Manual" Ver.4.7 published by Ministry of the Environment and Ministry of Economy, Trade and Industry

Conversion coefficient: (Electricity) IEA Emission factors 2019(Non-electricity sources) IPCC 2006 Guidelines for National Greenhouse Gas Inventories
FY2019 | FY2020 | FY2021 | |
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CO2 | 485,607 | 399,786 | 472,268 |
CH4/N2O/HFCs/PFCs/SF6/NF3 Others | 0 | 0 | 0 |
Total | 485,607 | 399,786 | 472,268 |
FY2019 | FY2020 | FY2021 | |
---|---|---|---|
Category 2 (Capital goods) | 126,565 | 117,711 | 132,184 |
Category 3 (Fuel- and energy-related activities not included in scope 1) | 14,410 | 17,505 | 17,854 |
Category 4 (Upstream transportation and distribution) | 21,127 | 17,167 | 20,093 |
Category 5 (Waste generated in operations) | 3,109 | 4,395 | 7,864 |
Category 6 (Business travel) | 1,589 | 1,727 | 1,714 |
Category 7 (Employee commuting) | 3,755 | 4,218 | 4,212 |
Category 8 (Leased assets) | 0 | 0 | 0 |
Category 14 (Franchises) | 0 | 0 | 0 |
Total | 170,555 | 162,723 | 183,921 |
* Category4-Toyota Tsusho Corporation, Toyota Steel Center Co., Ltd. and Toyotsu Energy Corporation Conversion coefficient:
Internal Carbon Price
J-Credit purchase costs were recognized and introduced as carbon pricing, and J-Credit purchase costs from April 2021 to March 2022 (approximately 4.3 million yen) were allocated to each seat in the company as carbon pricing (110 yen/seat-month).
- *The company uses J-Credits for electric power generated from renewable energy, and since January 2019, 18 offices in 11 prefectures in Japan have been CO2 free from electric power use, essentially achieving 100% renewable energy use.
(J-Credit is a government certification program that provides credits for amounts of reduction and absorption of CO2 and other greenhouse gasses through the use of renewable energy and other means.)
FY2021 | |
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Internal carbon price | Approx. ¥4.3 million |
In order to accomplish the GHG emission reduction target announced in July 2021, we introduced a new "Internal Carbon Pricing System." It is 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 our profits, and in the event of reduction thereof, the carbon credit will be added to profits. Through the introduction of this system, we will further promote our internal actions to address climate change.
Third Party Certification
Third-party certification has been obtained from LRQA Group Limited for a portion of the performance data above.