Key Performance Indicators (KPIs)
Hulic identifies materiality and the Sustainability Committee sets key performance indicators (KPIs) for each materiality and evaluates progress by reviewing results.
Climate change KPIs, results and progress assessments are as follows.
| KPIs (non-financial key performance indicators) |
Specific Targets | Coverage | 2023 | Assessment | Major related SDGs |
|---|---|---|---|---|---|
| ◎: achieved ○: progressed |
|||||
| Greenhouse gas emissions reduction targets*1 | Scope 1+2*2 2030 reduced by 70%; 2050 substantially zero (base year:2019) |
Scope1 and 2: Properties where the Hulic Group has control of energy management | -54% | ○ |  |
| Scope3*3 2030 reduced by 30%; 2050 substantially zero (base year:2019) |
Scope3: Indirect emissions other than Scope1 and 2 related to Hulic Group’s business activities | -14% | ○ | ||
| The RE100 progress rate*4 | 10% in 2021 30% in 2022 65% in 2023 100% in 2024 |
Electricity used in Hulic Group business activities | 100% | ◎ | |
| Number of times the Sustainability Committee engaged in climate change monitoring | One or more times annually | Hulic Co., Ltd. | 1 time | ◎ | |
| Number of Environmental Advisory Council held | One or more times annually | Hulic Co., Ltd. | 1 time | ◎ |
The following are managed as other related indicators.
| Related Indicators | Related KPI | Specific Numerical Values and Targets | Result | Assessment | |
|---|---|---|---|---|---|
| 2022 | 2023 | ◎: achieved ○: progressed |
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| Annual generation of renewable energy | RE100 progress rate*4 | Approximately 60 GWh(annually) | 28GWh | 69GWh | ◎ |
| Amount of investment in solar photo-voltaic equipment that does not use the FIT system (cumulative total) | Greenhouse gas emissions reduction targets*1 | Approximately JPY 66 billion (cumulative amount by 2030)*5 | JPY 12.1 billion | JPY 18.8 billion | ○ |
- *1Absolute contraction targets, Base year: 2019. Hulic has had its near-term (by 2030) emissions reduction targets approved by the Science Based Target initiative as consistent with levels required to meet the goals of the Paris Agreement.
- *2Greenhouse gas emissions from directly owned or controlled sources plus indirect purchased energy for business activities.
Scope 1: direct emissions (e.g., emissions from natural gas and other fuel combustion).
Scope 2: indirect emissions (e.g., emissions from the use of purchased electricity, heat and steam). - *3Greenhouse gas emissions from external companies affiliated with internal business activities (in the supply chain). Targets were set for Categories 11 and 13 of Scope 3.
- *4Targets are set according to the amount of power generated by Company-owned non-FIT solar photovoltaic equipment during the target year divided by the total amount of electricity used at the Hulic head office building and on the floors occupied by Group companies in one year (an estimate of final target year).
- *5Initial target term. It was then moved forward by one year to 2029.
Rationale for each KPI
Greenhouse Gas Emissions Reduction Targets
In accordance with Hulic’s long-term vision for the environment, we established medium- to long-term targets for climate change to reduce greenhouse gas emissions. We plan to achieve these targets by converting electricity consumption of all Company-owned buildings* to renewable energy electricity. In addition, we place importance on the "additionality" of renewable energy, and are actively engaged in the in-house development of renewable energy power generation facilities, such as solar power equipments and small hydroelectric power generation facilities, in order to achieve our goals. Hulic believes that it is important to take actions to combat climate change by reducing greenhouse gas emissions in Scope 1 and 2 as well as throughout the value chain (Scope3).
- *Excludes single-tenant lease properties, residential properties, unmanaged shared properties for which we do not manage energy, and real estate for sale, etc.
RE100 Progress Rate
RE100 stands for “Renewable Electricity 100%,” an international initiative aimed at using only renewable energy as the source of electricity used in business activities. We achieved RE100 in 2023, two years ahead of the initial plan. Our GHG emission including the group companies from consumption of electricity became nil.
Hulic joined RE100 in 2019, and in 2020, started to develop solar power equipment that does not use the FIT system (non-FIT). Electricity derived from non-FIT renewable energy generated by Hulic-owned power sources will be supplied by Group company retail electricity supplier (PPS), Hulic Property Solutions, to buildings occupied by Group companies.
Number of Times the Sustainability Committee Engaged in Climate Change Monitoring
Number of Environmental Advisory Council Held
We have set the above as KPIs with the aim of confirming the operational status of corporate governance related to climate change.
| Organization | Confirmation of Operational Status |
|---|---|
| Sustainability Committee | Evaluates the impacts of climate change on business, and takes steps to mitigate identified risks and generate opportunities Sets KPIs for sustainability, including climate change, reviews performance and manages progress |
| Environmental Advisory Council | Top management directly discuss and receive advice and suggestions from external advisors on our initiatives related to environment including climate change |