Climate Change Data

Fuyo General Lease Co., Ltd.

Climate Impact & Sustainability Data (2018-04 to 2019-03, 2021-04 to 2022-03, 2023-04 to 2024-03)

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:1287 tCO2e (Scope 1 & 2)
Renewable Energy Share:0%
Carbon Intensity:0.37 tCO2e/100 million yen

ESG Focus Areas

  • Climate Change
  • Renewable Energy
  • Health and Wellbeing
  • Safe and Livable Cities
  • Economic Growth
  • Circular Economy
  • Diversity and Work-Style Reform

Environmental Achievements

  • Reduced CO2 emissions by 4.3% from the FY 2010 level (Scope 1 & 2)
  • Reduced energy consumption by 17.1% from the FY 2010 level
  • Reduced gasoline consumed by company vehicles by 34% from the FY 2010 level
  • Achieved 100% reuse and recycle rate for returned PCs
  • Operates 32 solar power plants generating 140 MWdc of electricity (enough to power approximately 40,000 households)
  • Became the first Japanese general leasing company to join RE100

Social Achievements

  • Established the Creating Shared Value (CSV) Promotion Office
  • Signed the UN Global Compact
  • Established the Healthcare Advisory Division to enhance advisory services for medical institutions
  • Entered into a capital and business alliance agreement with Japanese Organization for Medical Device Development (JOMDD)
  • Acquired INVOICE Inc. and NOC Outsourcing & Consulting Inc. to strengthen BPO services
  • Improved employee job satisfaction rate to 87.3%
  • Increased number of female managers to 36 (10.9% of managerial positions)

Governance Achievements

  • Increased the number of independent outside directors to three
  • Introduced a stock compensation plan (Board Benefit Trust, BBT)
  • Disclosed an English version of the Corporate Governance Report
  • Established Corporate Governance Guidelines aligned with the Japan’s Corporate Governance Code

Climate Goals & Targets

Long-term Goals:
  • Achieve 100% renewable energy for business activities by 2050
Medium-term Goals:
  • Increase operating assets to ¥2,500.0 billion, ordinary profit to ¥50 billion, and achieve 2.0% ROA by FY2021
  • Increase solar power generation output to 200 MWdc by FY2021
  • Increase operating assets of Medical/Social Welfare businesses to ¥80 billion by FY2021
  • Increase operating assets of Energy/Environment businesses to ¥36 billion by FY2021
  • Increase operating assets of Real Estate businesses to ¥480 billion by FY2021
  • Increase number of aircraft owned to 70 by FY2021
  • Increase operating assets of Overseas businesses to ¥120 billion by FY2021
  • Achieve 50% renewable energy for business activities by 2030
Short-term Goals:
  • Increase operating assets to ¥2,300.0-¥2,400.0 billion and ordinary profit to ¥42 billion by FY2020
  • Achieve 1.7-1.8% ROA by FY2020
  • Start service provision for “the Fuyo RE Action Support Program” by FY2019

Environmental Challenges

  • Intensified competition in the leasing industry
  • Impact of capital expenditure trends on business results
  • Impact of credit risk on business results
  • Impact of changes in interest rates, exchange rates, and share prices on business results
  • Impact of changes in regulatory systems on business results
  • Risks related to strategic partnerships and corporate acquisitions
  • Risks from natural disasters
  • Labor shortages
  • Work-style reform requirements
Mitigation Strategies
  • Strengthening value-added services for customers
  • Quantitative assessment and monitoring of credit risk
  • Monitoring market conditions and managing risks associated with interest rate fluctuations
  • Maintaining sound financial standing
  • Implementing various measures to ensure business continuity in emergencies
  • Expanding BPO services
  • Introducing various systems to improve productivity and create a pleasant working environment
  • Focusing on developing human resources

Supply Chain Management

Responsible Procurement
  • Green procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
Transition Risks
  • Changes in regulatory systems
  • Market shifts
Opportunities
  • Renewable energy generation and energy-efficient assets leasing businesses

Reporting Standards

Frameworks Used: International Integrated Reporting Framework Ver. 1.0

Certifications: ISO 14001

UN Sustainable Development Goals

  • Goal 3
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 11
  • Goal 12
  • Goal 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Renewable energy solutions

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:1,455 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:584 tCO2e/year (FY2021)
Scope 2 Emissions:872 tCO2e/year (FY2021)
Renewable Energy Share:44% of total energy use (FY2021)
Carbon Intensity:0.22 t-CO2 / 100 millions of yen (FY2021)

ESG Focus Areas

  • Energy and Environment
  • Circular Economy
  • BPO/ICT
  • Mobility Business
  • Medical & Welfare
  • Real Estate
  • Aircraft

Environmental Achievements

  • Reduced CO2 emissions by 28% YoY to 1,455 t-CO2 in FY2021 (Scopes 1 and 2).
  • Increased renewable energy power generation capacity to 318 MW in FY2021.
  • Shifted to 100% renewable energy for head office building.

Social Achievements

  • Launched Fuyo Mediwel Support, a Group-wide website providing information to healthcare providers.
  • Supported the creation of new rooms at elderly care homes.
  • Established Fuyo-Joshibi Venus Fund to support art students.
  • Achieved Platinum Kurumin and two-star Eruboshi certifications.

Governance Achievements

  • Established CSV Promotion Committee and DX Strategy Promotion Committee.
  • Revised Corporate Governance Guidelines.
  • Introduced non-financial indicators into performance-linked compensation.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve RE100 and carbon neutrality (Scopes 1 and 2) by 2030.
  • 100% reuse and recycling of all returned lease assets by FY2026.
  • 100% recycling of waste plastics from returned items by FY2026.
  • Reduce customer workloads by 1 million hours by FY2026.
Short-term Goals:
  • Reduce CO2 emissions by 500,000 t-CO2 by FY2026.
  • Invest ¥300 billion in promoting decarbonization over 5 years.
  • Increase renewable energy power generation capacity to 1,000 MW by FY2026.
  • 30% of Group vehicles to be EVs or FCVs by FY2026.
  • Create 1,000 new rooms at elderly care homes over 5 years.

Environmental Challenges

  • Shrinking labor force and improving productivity.
  • 2024 problem in the logistics industry.
  • Climate change risks (carbon tax, natural disasters).
  • Transition risks in energy purchase systems, stricter CO2 emission regulations.
  • Changes in the business environment for aircraft.
  • Weakening yen, increased construction costs in real estate.
Mitigation Strategies
  • Promoting Business Process Services (BPS) linking BPO and ICT.
  • Investing ¥300 billion in decarbonization over 5 years.
  • Developing one-stop EV services.
  • Advancing asset turnover-type business in real estate and aircraft.
  • Strengthening relationships with partner companies.
  • Implementing a group-wide risk management system.

Supply Chain Management

Responsible Procurement
  • Procuring fish and waterweed via aquaculture farms (Aqua Art).

Climate-Related Risks & Opportunities

Physical Risks
  • Increasingly serious natural disasters
Transition Risks
  • Introduction of a carbon tax
  • Institutional changes of energy purchase systems
  • Stricter regulation of CO2 emissions
  • Changes in the business environment
Opportunities
  • Rise in demand for renewable energy
  • Business opportunities brought by new technologies
  • Rise in demand for electric vehicles and related services
  • Introduction of new technologies related to aircraft

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: Platinum Kurumin, Two-star Eruboshi

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

  • One-stop EV services
  • PC Lifecycle Management Service
  • Environmental BPS

Awards & Recognition

  • Excellence Award in Environmental Reporting (2020)
  • Gold Award and Special Prize in ESG Finance Awards (2019, 2021)
  • Certified Health and Productivity Management Outstanding Organization (2022)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:899 tCO2e/year (Scope 1 and 2)
Scope 1 Emissions:532 tCO2e/year
Scope 2 Emissions:367 tCO2e/year
Renewable Energy Share:85% (Fuyo General Lease, RE100 standard)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Biodiversity
  • Human Rights
  • Human Capital
  • DX Strategy

Environmental Achievements

  • Contribution to CO2 volume reduction: 330,000 t-CO2/year
  • Renewable energy power generation capacity: 705 MW
  • Percentage of returned items that are reused or recycled: 100%
  • Percentage of materials/chemicals contained in waste plastics (from returned items) that are recycled: 45.3%

Social Achievements

  • Work hours saved by our customers: 490,000 hours (compared to FY2021)
  • Number of new rooms provided at elderly care homes: 763 rooms
  • Management support-related financing in medical and welfare markets: ¥22.9 billion
  • Percentage of improvement in engagement indicators (consolidated): 3.47

Governance Achievements

  • Appointed a non-executive Director as chair of the Board of Directors
  • Established a sustainable finance framework that incorporates KPIs/SPTs reflecting all non-financial targets
  • Introduced performance-linked compensation and stock-based compensation for directors

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality and RE100 by 2030
Medium-term Goals:
  • Invest a cumulative total of ¥300.0 billion over the 5 years through fiscal 2026 to promote decarbonization
  • Support the creation of 1,330 new rooms at elderly care homes over a 5-year period
  • Increase human resource development expenses to 300% of their original amount over the five-year term of the Medium-Term Management Plan
Short-term Goals:
  • Increase renewable energy power generation capacity to 1,000 MW by 2027
  • Increase the percentage of Group vehicles that are EVs or FCVs to 30% by 2027
  • Achieve a 100% recycling rate of waste plastics by 2026

Environmental Challenges

  • Higher interest rates on foreign currency and costs associated with expansion of business domains
  • Declining finance needs at medical institutions
  • Moderate EV penetration rate in Japan
  • Expanding the coverage of Fuyo CE Lease
  • Funding support after the end of financial support policies to address COVID-19
  • Permanent shortage of personnel among healthcare providers
  • Sluggish office market
  • Rising interest in environmental issues in the aviation industry
  • Highly uncertain real estate market
  • Revisions to lease accounting standards
Mitigation Strategies
  • Strengthening collaboration with overseas sites
  • Developing skilled professionals
  • Providing funding in response to the needs of healthcare providers
  • Bolstering personnel in BPO services and advancing the shift to DX
  • Implementing timely and appropriate responses to market conditions
  • Accelerating environmentally friendly initiatives
  • Promoting the recruitment and training of globally minded human resources
  • Accurately grasping customer issues and needs associated with revisions to the standards and proposing and providing services and solutions that meet those needs
  • Raising the sophistication of property management

Supply Chain Management

Responsible Procurement
  • Green purchasing of paper and stationery

Climate-Related Risks & Opportunities

Physical Risks
  • Increasingly serious natural disasters
Transition Risks
  • Introduction of a carbon tax
  • Institutional changes of energy purchase systems
  • Stricter regulation of CO2 emissions
  • Changes in the business environment
Opportunities
  • Rise in demand for renewable energy
  • Business opportunities brought by new technologies
  • Rise in demand for electric vehicles
  • Rise in demand for services related to electric vehicles
  • Introduction of new technologies related to aircraft

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Third-party Assurance: Ernst & Young ShinNihon LLC

Sustainable Products & Innovation

  • Fuyo Circular Economy Lease
  • One-stop EV services
  • Kyuden EV Bus Service

Awards & Recognition

  • Minister of the Environment Award (Silver Prize) at the 5th ESG Finance Awards Japan
  • Circular Economy Award at the 5th ESG Finance Awards Japan
  • A-list company in the CDP Climate Change Report