CO₂ Emissions Reduction Plan

Long-term Vision and Roadmap for the environment toward 2050

Roadmap of Initiatives for Achieving the Vision

To realize a carbon-free society, we are accelerating our initiatives to achieve net zero CO2 emissions and RE100 by bringing forward target years for each, respectively.

CO2 emission reduction target and results

  • We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.
  • *1TCFD is an abbreviation for The Task Force on Climate-related Financial Disclosures, which was created by the Financial Stability Board (FSB) at the request of the G20, and makes recommendations on climate change-related disclosures to companies and other organizations.
  • *2RE100 is an abbreviation of Renewable Electricity 100% and is an international initiative in which member companies aim to use 100% renewable sources for the energy required for their business activities.
  • *3A feed-in tariff (FIT) system for electricity that requires utility companies to purchase electricity generated using renewable sources for a certain period of time at a price specified by the national government.
    FIT electricity is not considered renewable energy as a portion of the cost of the electricity purchased by a utility company is added to the consumer’s bill so the tax payer must bear some of the costs. Therefore, achieving the 100% goal with FIT electricity is not considered RE100 by definition.

Setting Specific Climate Change Targets (KPIs)

The 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21), held in December 2015 in Paris, adopted the Paris Agreement as a new international framework for reducing greenhouse gas emissions after 2020. The conditions surrounding climate change are time sensitive and we need to act now. As a real estate company, we recognize that it is our responsibility to reduce CO2 emitted by the Hulic Group and our properties. To this end, we set KPIs and are engaged in concrete climate change countermeasures as a priority issue (materiality).

KPIs are shown below.

  • CO2emission reduction target*1: Reduce CO2emissions (The base year: 2013) 40% by 2025, 45% by 2030, 100% by 2050
  • RE100 achievement rate*2: 4% in 2021, 30% in 2022, 35% in 2023, 70% in 2024, 100% in 2025
  • Number of capital investments for renewable energy facilities: 3 or more each year
  • We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.
  • *1Based on intensity (level) of CO2 emissions.
  • *2RE100 is an abbreviation of Renewable Electricity 100% and is an international initiative in which member companies aim to use 100% renewable sources for the energy required for their business activities.

Our Initiatives for Achieving the Targets

Proprietary Complete Corporate PPA Model for in-house development and ownership of non-FIT renewable energy power generation equipment

In line with our Long-term Vision for the Environment, we have been implementing net zero CO2 emissions by 2050 and RE100 by 2025 as part of our medium- to long-term initiatives related to climate change. We emphasize “additionality” perspective of renewable energy and we develop and own proprietary renewable energy equipment to increase the total amount of renewable energy. We plan to use electricity derived from renewable energy supplied from our proprietary and owned solar photovoltaic equipment that do not use the FIT*2 system as well as small hydroelectric plants at all Hulic-owned properties*1.

Hulic Property Solutions, a Group company, serves as a power producer and supplier (PPS) in order to create complete proprietary Group corporate PPA*3 model by purchasing renewable energy derived electricity from Hulic and selling to Hulic-owned properties. In this way, we have established a market-independent electricity trading mechanism.

Furthermore, it was determined that we could move the target years ahead as a result of revisiting our development plan, so we brought the achievement of net zero CO2 emissions forward 20 years, from 2050 to 2030. Along with this move, we moved the achievement of RE100 forward by one year, with 2024 as the new target year. We estimate to invest approximately JPY60 billion to develop solar photovoltaic equipment with a generating capacity of 310 GWh/p.a. (equivalent of our estimated electricity usage in 2030).

As solar power does not generate electricity at night and the amount of power generated fluctuates depending on the weather, we are developing and operating our own small hydroelectric plants that can generate electricity both day and night regardless of the weather from long-term perspective with the goal of developing energy resilience (a stable power supply from varied power sources).
Note that small hydroelectric plants will not be used as renewable power sources as at 2030 since they use the FIT system. We plan to supply renewable energy to its properties after the FIT period has ended (20 years hence).

Mechanism facilitating stable energy supplies utilizing multiple power sources (image)

RE100

Having joined RE100 in 2019, Hulic will convert electricity used in Group company business activities to renewable energy by 2024 to realize RE100. To ensure we will achieve this target, we will monitor progress using achievement rates for each year until 2024 as KPIs.

KPI: 4% in 2021, 30% in 2022, 35% in 2023, 70% in 2024 and 100% in 2025
Result at the end of FY2020: 0.5%
We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.

Achieve Net Zero CO2 Emissions

Electricity-derived CO2 emissions for tenants in our properties will become net zero when converting electricity used by all Hulic-owned properties to renewable energy is completed by 2030.

CO2 emission reduction targets (The base year: 2013): 40% by 2025; 45% by 2030; 100% by 2050
Result of FY2020 : 27% reduction
We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.

The solar photovoltaic equipment (Chiba Pref.)
  • *1Excludes single-tenant lease properties, residential properties and unmanaged shared properties for which we do not manage energy, and real estate for sale.
  • *2A feed-in tariff (FIT) system for electricity that requires utility companies to purchase electricity generated using renewable sources for a certain period of time at a price specified by the national government.
    FIT electricity is not considered renewable energy as a portion of the cost of the electricity purchased by a utility company is added to the consumer’s bill so the tax payer must bear some of the costs. Therefore, achieving the 100% goal with FIT electricity is not considered RE100 by definition.
  • *3A long-term contract scheme under which a business agrees to purchase electricity directly from an energy generator.

Adoption of Energy-saving Technologies, etc.

Energy Conservation Initiatives

  • Properties for reconstruction: Reduce energy consumption by an average of 25% by implementing various energy-saving measures.
  • Properties requiring maintenance/renovation, or properties to be newly purchased: Reduce energy consumption by an average of 5% by implementing facility renovation (increasing value), utilizing green leasing* and operational arrangements.
  • All buildings: Endeavor to reduce energy consumption with cooperation from tenants by taking measures such as visualizing the energy consumption of each building.
  • Buildings: Improve building envelope performance (improve window specifications and enhance heat insulation capacity, etc.), introduce natural ventilation/lighting systems, and adopt greening of rooftops/walls, etc.
  • High-efficiency devices/systems: Work to reduce the outdoor air load by adopting optimization control including high-efficiency air conditioning system, total heat exchangers, and CO2 sensor, illumination control devices such as LED lighting sensors and human detection sensors, and use cogeneration/fuel cells, unused energy, and heat interchange systems, etc.
  • *A green lease is where building owners and tenants collaborate to reach voluntary agreements with regards to energy saving and other environmental burdens of real estate as well as improvements of indoor environments through contracts, etc., and implement actions agreed.
  • Natural Lighting System
    (Hulic Head Office Building)
  • Natural Ventilation System
    (Hulic Head Office Building)

Utilization of Unused Energy

Unused energy is a generic term for energy that can be utilized effectively but has not been used, such as heat discarded from buildings and factories, and temperature differences between outside air and rivers, groundwater, and sewage. We are working on the utilization of unused energy according to location conditions, asset type, and the characteristics of development projects.

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