Japan Asia Investment Co., Ltd.
Climate Impact & Sustainability Data (2016-12-31, 2017-03 to 2018-03, 2019-07 to 2019-09, 2020)
Reporting Period: 2016-12-31
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Not disclosed
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2017-03 to 2018-03
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Renewable Energy
- Healthcare
Environmental Achievements
- Sold nine renewable energy projects, including large-scale projects; average investment multiple is 1.7
- Started electricity sales at a biomass power plant (1.99 MW)
Social Achievements
- Investment in AIP’s nursing care facility development projects
- Investments in companies focused on STEM education, IoT, and medical devices
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Improve portfolio mix to cover bank loan balance by investments related to projects which are relatively low-risk with high liquidity (reduce bank loans from 11.9 billion yen to 7 billion yen)
- Increase stable revenues by replacing private equity’s existing portfolio to more lucrative assets based on a new investment policy
- Increase high FIT price projects by approximately 50 MW
- Secure profitability at a FIT price level of 20 yen
Short-term Goals:
- Cover a large portion of SG&A by stable revenues (from approximately 0.5 billion yen to 0.6 billion yen)
Environmental Challenges
- Unstable revenue structure dependent on capital gains from venture investments
- Procuring investment capital for unlisted shares with high uncertainty of recovery
- Lack of stable revenues and financial soundness
- Financial measures prioritizing repayment
- Failure to establish large funds and increase fund management operation fees
- Slow asset accumulation due to the sale of some projects
- Repayments exceeding revenue reimbursement ability
Mitigation Strategies
- Shifting investment policy to more lucrative assets based on a new investment strategy to increase stable revenues
- Reducing contractual repayments
- Negotiating a review of repayment amounts with financial institutions to secure funds for more aggressive investment activities
- Weighting investment towards renewable energy, primarily mega solar projects, to secure stable revenue
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- FIT price declines
Opportunities
- Growth in high FIT price projects
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 3 (Good Health and Well-being)
Investments in renewable energy and healthcare contribute to these goals.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2019-07 to 2019-09
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Renewable Energy
- Smart Agriculture
- Healthcare
- Social Inclusion
Environmental Achievements
- Three new investments in mega solar projects with a ¥30-level FIT price.
- Investment in operator of intermediate processing facility for waste materials to be used as fuel for biogas power plants.
- Renewable energy projects totaling 99.8 MW (56.4 MW attributable to JAIC) as of September 30, 2019, including mega solar, biogas, woody biomass.
Social Achievements
- Project to build a group home for persons with disabilities started in October 2019.
- Strategic investments in Morihisa Engineering Co., Ltd. (plant factories), Social Inclu Co., Ltd. (group homes), and Smart Solar Corporation (mega solar projects).
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Expand stable revenue from project oriented investment assets. Increase balance of project oriented investment assets to ¥9.0 billion and unrealized gains to ¥20.0 billion by FY Mar 2021.
- Replacement of private equity investment assets through early liquidation and monetization.
Short-term Goals:
- Aim to achieve full-capacity operation and turn profit monthly by end of March 2020 for the vegetable factory.
Environmental Challenges
- Delay in sale of unlisted shares.
- Potential underperformance of share sale gains.
Mitigation Strategies
- Plan to cover potential underperformance of share sale gains with sale of mega solar projects.
- Aiming to liquidate some of the unlisted shares and non-operating assets in the second half of the fiscal year.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Renewable energy
- Smart agriculture
- Healthcare
Environmental Achievements
- Increased the number of sales of mega solar projects from 4 to 7 projects
Social Achievements
- Commenced construction of 3 group homes for persons with disabilities
- Investment in a project for an aged care facility located in Shinonome, Koto-ku, Tokyo
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Increase balance of project oriented investment assets to ¥9.0 billion
- Achieve ¥20.0 billion in expected cumulative profits from project oriented investment to be long held
Short-term Goals:
- Achieve single-month profitability for No. 1 vegetable plant by the end of FY2021
Environmental Challenges
- Unstable revenue structure heavily reliant on capital gains from venture investment
- Insufficient financial soundness due to private equity investments financed through borrowings
- Difficulty securing sufficient investment funds due to repayments exceeding earnings capacity
- Significant decline in gains on sale of shares compared to the plan
- Delay in liquidating and monetizing private equity investment assets
Mitigation Strategies
- Medium-term business plan (3-year plan from FY2019) to sell majority of existing private equity investment assets, use proceeds for project-oriented investment and strategic investment, and accumulate unrealized gains of project-oriented assets.
- Focus on early liquidizing and monetization of private equity investment assets
- Sales of projects as a backup plan to cover shortfalls in proceeds from securities sales
- Promoting project-oriented investment subject to short-term sale (2-3 years) to achieve optimal investment mix for long-term and short-term earnings
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed