- TOP
- Sustainability
- Environmental Issues
Environmental Issues
Environmental Policy
Basic Policy
We are aware that climate change is an important global issue affecting the whole world and will follow the policy below in collaboration with all of our stakeholders to contribute to the realization of a sustainable society. Additionally, the entire leadership of the LIFULL Group will work toward reducing our environmental impact.
Action Plan
- 1. Reducing our environmental impact through digital transformation (DX)
By promoting DX within our business processes and people's lifestyles, we will contribute to reducing our environmental impact and constructing a low-carbon society. - 2. Environmentally friendly business activities
We will work towards protecting the environment by reducing greenhouse gases through reduction of our overall energy consumption and switching to more renewable energy sources, reducing waste and recycling as well as utilizing renewable resources in all of our business practices. - 3. Continuous improvement
After evaluating the impact our business practices on the environment, we will create a business plan which includes environmental goals and targets in order to strive for continuous improvement in our businesses. - 4. Adhering to legal regulations
We will follow and take all appropriate actions on all laws, regulations and regional agreements. - 5. Awareness initiatives and support
In order to promote actions for environmental issues, we will conduct trainings and awareness initiatives for our employees and business partners to further improve their awareness and understanding of these issues. The executives of the LIFULL Group will also support environmental protection and regional activities. - 6. Discussion and Disclosure
We will work toward improving trust and our relationship by regularly disclosing environment-related information and actively engaging in communication with our stakeholders.
Actions on Climate Change (Disclosure of our Commitment to Disclosure of TCFD-Related Information)
Governance
In addition to discussing and determining the sustainability-related policies and important tasks, the Board of Directors will evaluate and manage the actions to be taken. The responsible department for sustainability will be overseen by the executive in charge of the Group Business Promotion Department will conduct interviews in order to ascertain the opportunities and risks related to climate change for the entire Group, report this information and make suggestions to the Board of Directors. The responsible department for the promotion of sustainability and our subsidiaries will collaborate and pursue actions that have been decided.
Strategy
We will conduct scenario analyses based on the TCFD to identify the opportunities and risks as well as find counter actions for the items in the following table.
We used a scenario of 1.5C achieved through rapid reduction of CO2 due to a transition to a carbonless society for these analyses.
Our identified risks and opportunities related to climate change
| Expected Risks | Business Impact |
Risk Mitigation Actions | ||
|---|---|---|---|---|
| Transi tional Risks |
Legal and Regulatory | Increased carbon taxes | Mid |
|
| Markets and Services | Increased costs due to transition to renewable energies (including carbon taxes and regulations) | Mid |
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| Increased costs due to higher electricity usage as a result of increases in temperature | ||||
| Increased costs from higher electricity prices from increased electricity production costs | ||||
| Increased server costs from higher cooling costs due to rising temperatures | ||||
| Evaluation | Decline in reputation and negative impact on the profitability of our businesses if we do not comply with changes in actions or values of society if the social mentality toward environmental issues changes | Low |
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| Decline in the valuation of the Company by our shareholders or the market if we do not take appropriate actions on climate change | ||||
| Physical Risks | We have determined that there is a very low risk of flooding of our headquarters or offices due to variable climate changes. | － | － | |
| Opportunities | Increased opportunities to provide environmentally friendly services |
|---|
Risk Management
We realize that the identification, evaluation and management of risks which could impact our management and continuation of business is an important issue for the entire Group and, therefore, keep a management system in place within our Risk Management Committee. The responsible department for sustainability is charged with the management of risks associated with climate change and collaborates with the Risk Management Committee. The Managing Director in charge of the Group Business Promotion Department also reports to the Board of Directors annually on the climate change-related risks.
Indicators and Targets
We have set our greenhouse gas (GHG) emissions as our target indicator for climate change.
As we do not produce any Scope 1 emissions, we have calculated our targets in terms of Scope 2 and 3.
GHG Emissions of the Group
| FY 2021/9 | FY 2022/9 | FY 2023/9 | ||
|---|---|---|---|---|
| Scope 1 | Direct emissions | 0 | 0 | － |
| Scope 2 | Electricity (tCO2) | 431.8 | 536.2 | － |
| Scope 3 | Purchased items (work-related computers etc.) (tCO2) |
－ (Before Data Acquisition) |
369.7 | － |
| Commuting and business trips (tCO2) | 137.0 | 132.3 | － | |
| Usage of cloud-based services (M tCO2) | 145.9 | 107.5 | － | |
Initiatives Aimed at Becoming More Environmentally Friendly
Moving to Paperless
We have introduced systems to allow us to electronically sign documents and allowing us to move to paperless versions of contracts and invoices. As a result, we have reduced the amount of paper and courier services we use and, thus, also our overall environmental impact.
Improvements to Air-Conditioning Efficiency
We have reduced our electricity consumption for heating and cooling by extending the ceiling air ducts and adding circulators in our head office.