Climate Change Data

ABHOTEL CO., LTD.

Climate Impact & Sustainability Data (2023-04-01 to 2024-03-31)

Reporting Period: 2023-04-01 to 2024-03-31

Environmental Metrics

Total Carbon Emissions:7762 tCO2e/year

ESG Focus Areas

  • Governance
  • Environmental
  • Social

Environmental Achievements

  • Reduced CO2 emissions (Scope 1+2) to 7,762 t-CO2 in the fiscal year 2024.
  • Launched an "eco plan" in 2020 for long-term business travelers to reduce plastic waste by reducing room cleaning frequency.

Social Achievements

  • Implemented a "tutor system" to improve service quality through mentoring.
  • Promote employee health by designating days for exercise and subsidizing influenza vaccinations.
  • Promote paid leave usage by tracking employee leave days and providing recommendations.

Governance Achievements

  • Established a Sustainability Committee in April 2024.
  • Maintained a board with 2 external directors and 2 external auditors.

Climate Goals & Targets

Long-term Goals:
  • Achieve 100 hotel locations.
Medium-term Goals:
  • Increase sales of environmentally friendly plans to over 50%.
Short-term Goals:
  • Improve guest room satisfaction scores to 4.0 or higher.

Environmental Challenges

  • Maintaining and improving the profitability of existing facilities.
  • Securing new locations for hotel development.
  • Increasing investment and strengthening financial health.
  • Securing and developing human resources.
  • Promoting sustainability management.
  • Interest rate risk due to reliance on bank loans for construction.
  • Concentration of hotels in the Tokai region, making the company vulnerable to regional disasters.
  • Risk of asset impairment.
  • Risk of loss of deposits and guarantees.
  • Risk of information breaches.
  • Vulnerability to economic downturns and international affairs.
  • Risk of food hygiene incidents.
  • Maintaining independence from parent company while the parent company holds a significant stake (52.8%).
  • Potential impact of new or changed legal regulations.
  • Challenges related to the company's short history and small organizational size.
Mitigation Strategies
  • Improving service offerings and cost reduction measures to maintain business continuity.
  • Setting a profitability target of 35% for new hotel developments and aiming for 3+ new hotels annually.
  • Improving balance sheet through revenue enhancement and building leases.
  • Strengthening employee training and implementing a tutor system.
  • Regular monitoring of performance through monthly board meetings and weekly management meetings.
  • Establishing a Sustainability Committee to address material issues.
  • Diversifying funding sources and improving balance sheet.
  • Developing alternative sourcing strategies.
  • Implementing strict information security measures.
  • Actively participating in government travel discount campaigns.
  • Improving breakfast menus to increase customer satisfaction and repeat business.
  • Continuous discussion with the parent company to meet listing maintenance standards.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Eco plan for long-term business travelers