In November 2021, Hulic formulated greenhouse gas emissions reduction targets.
| 2030 | 2050 | |
|---|---|---|
| Scope 1 and 2*1 | Reduced by 70% | Sustaintially zero |
| Scope 3*2 | Reduced by 30% | Sustaintially zero |
- *1Emissions from energy consumptions by the reporting company.
Scope 1: emissions from operations that are owned or controlled by the reporting company.
Scope 2: emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company. - *2All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Hulic has had its near-term (by 2030) emissions reduction targets approved by the Science Based Target initiative*3 (SBTi) as consistent with levels required to meet the goals of the Paris Agreement. The targets covering greenhouse gas emissions from the Company’s operations are consistent with reductions required to keep the global warming to 1.5℃, the most ambitious goal of the Paris Agreement. In addition, the Company’s target for the emissions from its value chain (Scope 3) meets the SBTi’s criteria for ambitious value chain goals, meaning they are in line with current best practice.
- *3Science Based Targets initiative (SBTi)
A collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), and is an international initiative that promote private sector to develop GHG emissions reduction targets in line with Paris Agreement (long-term temperature goal is to keep the rise in mean global temperature to well below 2℃ and limiting below 1.5℃ above pre-industrial levels), then validate and approve targets submitted to them. For approval, GHG emissions need to comply with GHG Protocol accounting and reporting standards, and near-term reduction targets need to be set between 5 and 15 years from the date of target submission to SBTi.
Hulic’s Actions for Achieving the Targets
We agree with the Japan government’s 2050 carbon neutrality target and are promoting the following initiatives to achieve the greenhouse gas emissions reduction target.
- FY2023 results: Scope 1+2: -54%, Scope 3 Category 11 (use of sold products) and 13 (downstream of leased assets): -14% (compared to base year): 2019
- Scope 2 reduction: Replace 100% of the electricity required for business activities of Hulic Group with renewable energy and achieved RE100*4 in 2023.
- Scope 2 and Scope 3 reductions: By 2029, we will invest a total of approximately 66 billion yen in the development of renewable energy power plants. These will generate approximately 330 GWh electricity, equivalent to the annual electricity consumption of all of our buildings*5, and supplying renewable electricity to our buildings. In addition to solar power plants, we have developed small hydroelectric power plants to ensure the resilience of renewable energy sources*6.
- Other: Implementing value chain (Scope 3) engagements:
- ✓Upstream Scope 3 emissions: in cooperation with architectural design companies and contractors, implement ways to reduce GHG emissions from construction including switching the electricity sources used at construction sites to renewable energy; adding items that are adoptable to design guidelines and standards; utilizing a calculation sheet for estimating the amount of carbon stored in timber, use of recycled building materials, and promoting wooden construction and conversion initiatives.
- ✓Downstream Scope 3 emissions: implementing measures to increase energy efficiency of properties including introduction of environmentally friendly technologies, energy conservation renovations, use of unused energies, improvement of energy efficiency by reconstruction, and making efforts to pursue reduction of total energy consumption of leasing properties in cooperation with tenants including initiative for a green lease contract*7.
- ✓To achieve the goals of 30% reduction in GHG emissions by 2030 (SBT Certification Targets) and virtually zero GHG emissions by 2050, we aim to achieve these goals through measures such as reduction of GHG emissions during building operation through active adoption of new technologies and materials, and long-term results expected from investments in venture companies and joint research with the academic world in addition to 100% renewable energy for electricity used at all company-owned buildings.
- *4RE100 (Renewable Electricity 100%)
An international initiative in which member companies aim to use 100% renewable sources for the energy required for their business activities. - *5All Company-owned properties
Excludes single-tenant lease properties, residential properties and unmanaged shared properties for which the Company does not manage energy, and real estate for sale, etc. - *6Secure resilience of renewable energy sources
Supply electricity stably by using multiple energy sources. - *7A green lease contract
Building owners and tenants collaborate to reach voluntary agreements with regards to energy saving and mitigating other environmental burdens of real estate as well as improvements of indoor environments through contracts, etc., and implement actions agreed.