erex Co., Ltd.
Climate Impact & Sustainability Data (2023-04 to 2024-03)
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:2,142,039 t-CO2e/year (FY2023)
Scope 1 Emissions:630,226 t-CO2e/year (FY2023)
Scope 2 Emissions:3,279 t-CO2e/year (FY2023)
Scope 3 Emissions:1,508,534 t-CO2e/year (FY2023)
ESG Focus Areas
- Decarbonization
- Renewable Energy
- Energy Self-Sufficiency in Southeast Asia
- Human Rights
- Community Development
Environmental Achievements
- Achieved complete consumption of uncertified biomass fuels by end of March 2024.
- Saiki Power Plant achieved one year of continuous operation.
- Installation of bag filters to remove fine ash from power plant exhaust gas.
- Reuse of ash from burning PKS as a cement raw material.
- Nakagusuku Biomass Power Plant uses industrial water instead of seawater for cooling.
Social Achievements
- Recognized as a Certified Health & Productivity Management Outstanding Organization for the second consecutive year.
- Initiatives to employ people with disabilities.
- Donation of funds to build charity houses in Vietnam.
- Providing a human resources development program scholarship for young Vietnamese government officials to study in Japan.
- Community contribution activities in regions where power plants are located (plant tours for students, electricity classes).
Governance Achievements
- Established a Sustainability Committee in fiscal 2022.
- Expressed support for TCFD recommendations in March 2023.
- Implemented a system to ensure transparent and fair decision-making by having executive and outside board directors engage in management-related decisions.
- Established internal reporting regulations to prevent and detect illegal or illicit conduct.
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050.
Medium-term Goals:
- Start operations at hydroelectric power plant in Cambodia in fiscal 2025.
- Achieve medium- to long-term growth targets by fiscal 2027.
- Reduce CO2 emissions by 25 million tons by 2030.
Short-term Goals:
- Achieve profitability in fiscal 2024.
- Start operations at Hau Giang Biomass Power Plant (Vietnam) in December 2024.
- Operate wood pellet factories in Yen Bai and Tuyen Quang provinces (Vietnam) in early 2025.
Environmental Challenges
- Significant imbalance between electricity procurement and demand in fiscal 2023, resulting in losses.
- Mismatch between the price of electricity sold and the price of electricity procured.
- Rising fuel prices and the impact of the weak yen.
- Frequent directives to control the output of renewable energy.
- Need to increase electricity sales while offering fair prices to customers.
Mitigation Strategies
- Implemented reforms to business structure, including creating a Supply and Demand Strategy Office and SCR Office.
- Increased frequency of coordination between divisions.
- Hedging risks by presenting sales prices to customers based on procurement prices.
- Developing new energy rate plans (market-linked, fully fixed, hybrid).
- Strengthening in-house fuel procurement capabilities and hedging against rising fuel prices.
Supply Chain Management
Responsible Procurement
- Procuring fuels certified by third-party organizations to prevent ecosystem destruction.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (cyclones, floods) causing damage to fuel production plants or supply chain disruptions.
Transition Risks
- Regulatory changes on fuels used for biomass power generation.
- Increased supply of renewable energy leading to lower sales due to output curtailment.
- Increased cost of fuels due to supply not keeping pace with demand.
Opportunities
- Growing demand for renewable energy and biomass.
- Development of biomass fuels with higher power generation efficiency.
- Increased need for BECCS.
Reporting Standards
Frameworks Used: TCFD
Sustainable Products & Innovation
- New sorghum as biomass fuel
Awards & Recognition
- Certified Health & Productivity Management Outstanding Organization