Aucnet Inc.
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:9001 t-CO2e/year
Scope 1 Emissions:559 t-CO2e/year
Scope 2 Emissions:1344 t-CO2e/year
Scope 3 Emissions:7098 t-CO2e/year
ESG Focus Areas
- Greenhouse gas emissions
- Circular economy
Environmental Achievements
- Reduced greenhouse gas emissions (Scope 1, 2, and 3)
Climate Goals & Targets
Environmental Challenges
- Inherent uncertainties in greenhouse gas emission calculations due to incomplete scientific knowledge
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:2.698 million t-CO2e (net reduction)
ESG Focus Areas
- Environmental
Environmental Achievements
- Net GHG reduction of roughly 2.698 million t-CO2e
Climate Goals & Targets
Environmental Challenges
- Uncertainty regarding the estimated impact of GHG emission reduction from reused goods distribution and online delivery.
Mitigation Strategies
- Employing adjustment factors to avoid overestimating emission reduction, further empirical study evaluating consumer behavior with and without Aucnet's business presence.
Supply Chain Management
Climate-Related Risks & Opportunities
Opportunities
- GHG emission reduction through reused goods sales and online distribution
Reporting Standards
Frameworks Used: TCFD
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:12,581 t-CO2e/year
Scope 1 Emissions:624 t-CO2e/year
Scope 2 Emissions:1,466 t-CO2e/year
Scope 3 Emissions:10,490 t-CO2e/year
ESG Focus Areas
- Circular Economy
- Sustainability
- Climate Change
- Human Capital
- Governance
Environmental Achievements
- Environmental contribution amount through the distribution of reused products: ¥57.6 billion
- Reduced GHG emissions by 2.5% YoY (excluding Automobile and Motorcycle Business shared inventory, and AUC BRAND MALL items)
Social Achievements
- Launched kimawari fashion, a home delivery purchase service for unneeded items, mainly clothing
- Increased number of members by 2.9% YoY
- Improved employee engagement (specific metrics not provided but mentioned as improved)
Governance Achievements
- Formulated Mid-Term Management Plan Blue Print 2025
- Established the Sustainability Committee
- Implemented new personnel system "Pay for Performance & Passion"
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality
Medium-term Goals:
- Increase GCV to ¥1 trillion
- Increase EBITDA to ¥10 billion
- Achieve 20% ROE
- Achieve 30% dividend payout ratio
Environmental Challenges
- Supply chain disruptions due to rising consumer demand for reused goods and changes in the trend toward sustainability
- Risk of counterfeit or inferior products being distributed
- Need to restore consumer trust in the used car industry after exposure of irregularities
Mitigation Strategies
- Established strict inspection standards for products
- Promoting Selloop, a service that supports the establishment and operation of secondary distribution systems by primary distribution companies
- Strengthening functions associated with distribution through the introduction of a new auction system, optimization of asset value recovery operations, utilization of AI pricing tools, and collaboration with partner companies
Supply Chain Management
Responsible Procurement
- Collaboration with partners to promote sustainable practices
Climate-Related Risks & Opportunities
Physical Risks
- Intensification of extreme weather
Transition Risks
- Carbon taxes
- Oil prices
- Diverse energy sources
Opportunities
- Circular economy
- Reduction of environmental impact
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, TCFD Recommendations
Certifications: SBT Validation
Third-party Assurance: The Association for NFI-Assurance (ANFIA)
Awards & Recognition
- Health & Productivity Management Outstanding Organization 2023