MIRAIT ONE Corporation
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:2,502,680 tCO2e/year (FY2021)
Scope 1 Emissions:67,907 tCO2/year (FY2021)
Scope 2 Emissions:21,277 tCO2/year (FY2021)
Scope 3 Emissions:2,413,496 tCO2e/year (FY2021)
Renewable Energy Share:Not disclosed
Total Energy Consumption:47,254 MWh/year (FY2021)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Submitted application for SBT certification in May 2022 for greenhouse gas emission reduction targets by FY2030 (Scope 1+2: 42% reduction from FY2020 level; Scope 3: 25% reduction from FY2020 level)
- Industrial waste final disposal ratio of 3.57% in FY2021
- Launched water pipe bridge inspection service using drones in October 2021
- Established policy on disposal of industrial waste in July 2022
Social Achievements
- Opened Mirai College in July 2022 for employee training and development
- Established MIRAIT ONE Partners in July 2022 with 400 core partners
- Established MIRAIT ONE Group: Health-Oriented Management Declaration in July 2022
- Established MIRAIT ONE Group: Basic Policy on Human Rights in July 2022
- Awarded three stars in the 5th Nikkei “Smart Work Management Survey” in November 2021
- Selected by the Ministry of Internal Affairs and Communications as one of the “Top 100 Telework Pioneers” for FY 2021 in November 2021
- Donated 10 million yen to Japan for UNHCR as humanitarian aid to Ukraine in March 2022
Governance Achievements
- Became a Company with Audit and Supervisory Committee in July 2022
- Established MIRAIT ONE Group: Charter on Safety and Compliance in July 2022
- Added GHG reduction target to performance-linked compensation system in FY 2022
Climate Goals & Targets
Long-term Goals:
- Carbon neutrality by 2050
Medium-term Goals:
- Reduce greenhouse gas emissions by 42% (Scope 1 & 2) and 25% (Scope 3) from FY2020 levels by FY2030
- Reduce industrial waste final disposal ratio to below 1.5% by FY2030
- Achieve 50% or more personnel with multiple qualifications by FY2026
- Target net sales of 30 billion yen for urban and regional development/corporate DX and GX by FY2026
- Target net sales of 10 billion yen or more for green power business by FY2026
- Target net sales of 50 billion yen or more for software business and global business by FY2026
Short-term Goals:
- Not disclosed
Environmental Challenges
- Mild decline in the domestic telecommunication construction market
- Delayed construction projects due to delayed delivery of construction materials
- Shifting customer needs towards complex and comprehensive themes such as urban and regional development and DX/GX
- Risks related to climate change (transition and physical risks)
- Risks related to M&A
Mitigation Strategies
- Accelerating business structure reform and people-centric management
- Focusing management resources on MIRAI (future) domains (urban and regional development, corporate DX and GX, green power generation, software, and global businesses)
- Implementing the Full-Value Model
- Strengthening ESG management
- Careful deliberation of M&A consistency with growth strategy, market trends, business plans, and synergy with the Group
Supply Chain Management
Supplier Audits: Suppliers whose transaction value exceeds a predetermined amount are evaluated based on the Supplier Evaluation Criteria Table
Responsible Procurement
- Green Product Development Guidelines (FY2017)
- Environmental Standards for Evaluating and Selecting Business Partners
Climate-Related Risks & Opportunities
Physical Risks
- Damage to telecommunication equipment and base stations caused by heavy rains and typhoons
- Disruption of the value chain due to natural disasters
- Increase in air conditioning costs incurred by data centers
- Increase in heat stroke and other health hazards among construction workers
Transition Risks
- Tighter carbon emission regulations
- Increase in material and fuel procurement costs due to carbon taxation
- Increase in electricity costs due to a shift to renewable energy sources
- Decrease in orders for new construction projects due to inadequate environmental measures
Opportunities
- Increase in demand for renewable energy and energy-saving projects
- Increase in demand for shift to energy-saving equipment
- Increase in demand for renovation work
- Increase in demand for ZEB and smart city-related projects
- Growing demand for disaster prevention and mitigation work
Reporting Standards
Frameworks Used: International Integrated Reporting Framework (IFRS), GRI Standards, TCFD recommendations
Certifications: ISO 14001, ISO 45001, ISO 9001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- EMS solution for energy management
- Digital twin for event planning
- Off-grid power pole
- Stationary FC generator
Awards & Recognition
- Bronze Medal and Medallion for Excellence in Information Network Cabling at the WorldSkills Competition (2021)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1,786,575 tCO2e/year
Scope 1 Emissions:61,811 tCO2e/year
Scope 2 Emissions:12,969 tCO2e/year
Scope 3 Emissions:1,711,795 tCO2e/year
Renewable Energy Share:63% of total energy use (FY2023)
Total Energy Consumption:289,402 MWh/year
Water Consumption:47,000 m3/year
ESG Focus Areas
- Realization of a decarbonized society through business activities
- Contribution to environmentally-friendly and resilient urban and regional development
- Safety and quality improvement
- Co-creation of social value through collaboration with partners
- Enhancing corporate governance
- Thorough compliance
- Thorough risk management
- Promotion of human resource development, workstyle reform, and health-oriented management
- Respect for human rights and promotion of diversity and inclusion
Environmental Achievements
- Reduced Scope 1 and 2 emissions by approximately 16.7% compared to the base year (2020) by accelerating the plan to switch to renewable energy in our own buildings.
- Achieved a CDP (Carbon Disclosure Project) “B rating”, two ranks higher than in FY 2022.
- Transition to renewable energy for power used in company-owned buildings: 63% completed
- Percentage of EV/HV for general-purpose vehicles: 24% replaced
- Industrial waste disposal ratio: 2.28%
Social Achievements
- Significantly increased the rate of personnel with multiple qualifications.
- Creating human resources for growth areas: 300 people
- Engagement survey rating: B (Score: 49 points)
- Percentage of personnel with multiple qualifications: 50.9%
- Number of courses offered in “Mirai College”: 333
- More Group companies recognized as Excellent Health-Oriented Management Corporations
Governance Achievements
- Introduced “GHG reduction achievement level” as an evaluation criterion for executive performance-linked compensation.
- Established a new organization called the “Business Risk Management Office” in April 2024 to prevent the recurrence of large-scale unprofitable projects.
- Strengthening corporate governance through the System of Company with Audit and Supervisory Committee
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- Reduce greenhouse gas emissions by FY 2030: 42% reduction from the FY 2020 level (scope 1+2); 25% reduction from the FY 2020 level (scope 3)
- Reduce industrial waste final disposal ratio: 1.5% or below by FY 2030
- Creating human resources for growth areas: Over 1,000 people (FY 2026)
- Percentage of personnel with multiple qualifications: Target 50% or more by FY 2026
- Number of courses offered in “Mirai College”: Over 500 (FY 2026)
- Net sales target for FY 2026: 720 billion yen or more; MIRAI (future) domains ratio of 40% or more
Short-term Goals:
- Transition to renewable energy for power used in company-owned buildings: over 80% completed (FY2024)
- Percentage of EV/HV for general-purpose vehicles: over 30% replaced (FY2024)
- Complete introduction of electronic manifests (FY2024)
Environmental Challenges
- Increased sales but decreased profits for the past two years, due to a decline in the operating income margin.
- Occurrence of large-scale unprofitable projects in the “Environmental and Social Innovation Business” and “ICT Business” due to insufficient management capabilities for large-scale projects.
- PBR less than 1, indicating that the capital market's expectations for the company are not at 100%.
Mitigation Strategies
- Focusing on the “Tripartite Approach” to increase the added value of the business and maximize synergies between MIRAIT ONE Corporation, Seibu Construction Co., Ltd., and Kokusai Kogyo Co., Ltd.
- Strengthening risk management from both business and governance sides to prevent future unprofitable projects.
- Establishing a “Business Risk Management Office” to flexibly assign experts from various fields according to the project and check risk assessment and risk countermeasures from a position independent of the business side.
- Improving ROE and controlling the denominator components, dividends and treasury stock, through the B/S strategy to improve PBR.
- Implementing proactive shareholder returns while focusing on growth investments.
Supply Chain Management
Responsible Procurement
- Green procurement of paper and stationery; Supplier Evaluation Criteria Table for suppliers whose transaction value exceeds a predetermined amount, including evaluation items related to environmental impact (E) of ESG, such as ISO 14001 certification and efforts to reduce environmental impact.
Climate-Related Risks & Opportunities
Physical Risks
- Intensification of natural disasters
Transition Risks
- Changes in customer investment patterns and technological advances
Opportunities
- Expansion of various business opportunities associated with decarbonization
Reporting Standards
Frameworks Used: International Integrated Reporting Framework (IFRS), Sustainability Reporting Standard (GRI), Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation 2.0 (METI)
Certifications: ISO 14001, ISO 45001, SBT (Science Based Targets initiative)
Sustainable Products & Innovation
- Solar carports combined with secondary cells and EV charging stations
- Hydrogen fuel cell power plant
Awards & Recognition
- Three Stars in the 7th Nikkei “Smart Work Management Survey”
- Excellent Health-Oriented Management Corporations 2024