Kintetsu Group Holdings Co., Ltd.
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:478,770 t-CO2e/year
Scope 1 Emissions:40,141 t-CO2e/year
Scope 2 Emissions:436,259 t-CO2e/year (location-based)
Scope 3 Emissions:104,927 t-CO2e/year
Total Energy Consumption:310,362 kl/year (crude oil equivalent)
Water Consumption:4,442 m3/year
Waste Generated:76,196 tons/year
Carbon Intensity:0.961 t-CO2/1,000 km (railway) in FY2021
ESG Focus Areas
- Creating a lifestyle that anticipates changes in values
- Energizing communities by enhancing the network
- Enriching people and communities with travel
- Contributing to the realization of a decarbonized and recycling-oriented society
- Ensuring safety and pursuing peace of mind
- Bolstering our governance and risk management
- Fostering diverse human resources and supporting their activities
Environmental Achievements
- Reduced CO2 emissions by 38.2% compared to FY2015 levels
- Reduced energy use by 16.9% compared to FY2015 levels
- Switched Japan HQ office electricity use to 100% renewable energy sources
- Increased participation in SAF programs
Social Achievements
- Launched various initiatives to improve employee well-being, including a flextime system, telework, and childcare facilities
- Increased ratio of female employee hires and female managers
- Implemented a health and productivity management framework
- Launched community co-creation activities to discover and showcase the appeal of local areas
Governance Achievements
- Established a CSR Committee chaired by the president
- Maintained an external director ratio of 33.3%
- Established a legal and ethical consultation system
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- Achieve virtually zero CO2 emissions by 2050
- Increase the ratio of female managers to 25% by FY2030 (Kintetsu Department Store)
Short-term Goals:
- Reduce energy use by 20% or more by FY2030
- Reduce CO2 emissions by 40% or more by FY2030
Environmental Challenges
- Declining population in Japan
- Climate change and increased natural disasters
- COVID-19 pandemic impact
- Supply chain disruptions
- Intensifying competition
- Labor shortages
- Exchange rate fluctuations
- Rising resource prices
Mitigation Strategies
- Formulated the Kintetsu Group Medium-Term Management Plan 2024
- Implemented cost reduction measures
- Reformed business portfolio through M&A (e.g., acquiring Kintetsu World Express)
- Developed alternative sourcing strategies
- Strengthened cooperation with external partners
- Promoted digital transformation (DX)
- Implemented community development initiatives
- Strengthened risk management
Supply Chain Management
Responsible Procurement
- KWE Vendor Code of Conduct
- Fundamental Policy on Buying Activities and Requests for Business Partners (Kintetsu Railway)
Climate-Related Risks & Opportunities
Physical Risks
- Increased damage caused by storm and flood
- Disruption of power supply
- Shortage of commodities due to distribution disruption
- Decreased operating revenue due to hot weather
Transition Risks
- Increased burden due to tax reforms (carbon tax)
- Increased energy cost due to policies promoting renewable energy
- Increased material cost due to environmental cost passed on by suppliers
- Increased cost of introducing new technology
Opportunities
- Development of energy-saving technology
- Decreased energy cost due to optimized energy procurement
- Increased demand for railway transportation due to increased environmental awareness
- Policies emphasizing public transportation systems
Reporting Standards
Frameworks Used: IIRC International Integrated Reporting Framework, Ministry of Economy, Trade and Industry Guidance for Collaborative Value Creation, GRI Sustainability Reporting Standards, TCFD Guidance 2.0
Awards & Recognition
- Highest-rank Business Continuity Management (BCM) rating from the Development Bank of Japan (10 consecutive years)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:457,938 t-CO2e (FY2022, domestic offices)
Scope 1 Emissions:77,122 t-CO2e (FY2022)
Scope 2 Emissions:516,935 t-CO2e (FY2022, location-based)
Scope 3 Emissions:1,379,011 t-CO2e (FY2022)
Total Energy Consumption:320,029 kl (FY2022, crude oil equivalent)
Waste Generated:48,957 tons (FY2022)
ESG Focus Areas
- Creating a lifestyle that anticipates changes in values
- Energizing communities by enhancing the network
- Enriching people and communities with travel
- Contributing to the realization of a decarbonized and recycling-oriented society
- Ensuring safety and pursuing peace of mind
- Bolstering our governance and risk management
- Fostering diverse human resources and supporting their activities
Environmental Achievements
- Reduced CO2 emissions (total) by 40.9% compared to FY2015 levels (domestic offices)
- Reduced energy use by 14.3% compared to FY2015 levels
Social Achievements
- Launched En-katsu Project, involving ~180,000 participants
- Launched pre- and post-natal care hotel program
- Increased percentage of female employee hires to 17.4% of total career-track hires
Governance Achievements
- Signed the United Nations Global Compact
- Established a group-wide risk management framework (planned for Spring 2024)
- Maintained a 33.3% external director ratio
Climate Goals & Targets
Long-term Goals:
- Achieve virtually zero CO2 emissions by 2050 (Group)
Medium-term Goals:
- Increase number of railway passengers to 517 million (Railways)
- Increase number of users of Ise-Shima limited express trains to pre-COVID levels (Railways)
- Increase number of inbound rail passengers to pre-COVID levels (Railways)
- Reduce energy use by 20% or more compared to FY2015 levels (Group)
- Reduce CO2 emissions (total) by 50% compared to FY2015 levels (domestic offices)
- Reduce CO2 emissions (intensity) by 40% or more compared to FY2015 levels (domestic offices)
- Reduce CO2 emissions (total) by 20% compared to FY2022 levels (domestic and overseas offices)
- Achieve 30% or more female employee hires (Group)
- Maintain highest BCM rating (Railways)
Short-term Goals:
- Increase e-commerce sales (Department Stores)
- Increase proportion of key health product sales (Stores)
- Increase number of mobile supermarkets (Stores)
- Increase number of facilities with tie-ups with local companies (Hotels)
- Increase number of participants in universal tourism (Travel Agency)
- Increase number of programs to attract visitors to the region (Travel Agency)
- Increase number of visitors to Tohoku region (Travel Agency)
- Increase number of participants in eco-tourism (Travel Agency)
- Increase number of J-credit users (Travel Agency)
Environmental Challenges
- Declining birthrate and aging population leading to population decline along railway lines
- Complex geopolitical risks
- Increasing risk of natural disasters due to climate change
- Aging infrastructure and obsolete equipment
- Labor shortage impacting business continuity
- Growing awareness of sustainability requiring stronger ESG performance
- Compliance-related scandal at Kinki Nippon Tourist
Mitigation Strategies
- Implementing drastic structural reforms and rationalization measures
- Expanding asset-light businesses (KWE, outsourced hotel management)
- Raising operating profit target and improving financial indicators
- Strengthening collaborations with local governments for regional revitalization
- Leveraging Expo 2025 and Yumeshima IR for increased revenue
- Establishing a Digital Transformation Management Office
- Strengthening risk management and compliance systems
- Implementing recurrence prevention measures at Kinki Nippon Tourist
Supply Chain Management
Responsible Procurement
- KWE Vendor Code of Conduct
- Fundamental Policy on Buying Activities (Kintetsu Railway)
- Principles of Action for Suppliers (Kintetsu Department Store)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather, flooding, sea-level rise, heat waves
Transition Risks
- Carbon tax, increased energy costs, tighter regulations, market shifts
Opportunities
- Increased demand for energy-efficient products and services, development of low-carbon transportation, participation in carbon market
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, GRI Sustainability Reporting Standards, TCFD Guidance 3.0, UNGC
Certifications: ISO 14001, LEED, ZEB Ready, CASBEE Smart Wellness Office
Sustainable Products & Innovation
- Energy-efficient railcars
- Electric buses and taxis
- Sustainable aviation fuel (SAF)
- Soybean meat menu items
- Eco-friendly packaging materials
Awards & Recognition
- Minister of Land, Infrastructure, Transport and Tourism Award (Kintetsu Railway)
- Osaka Climate Change Action Awards (Kintetsu Real Estate)
- White 500 corporations (Kintetsu Group Holdings and Kintetsu Railway)
- Excellence in Earthquake-Proofing Construction Prize (Westin Miyako Kyoto)