The Chugoku Electric Power Co., Inc.
Climate Impact & Sustainability Data (2004, 2019)
Reporting Period: 2004
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
- Compliance
Environmental Achievements
- Achieved Zero Emissions goals at head office in April 2004 by separating and recycling waste.
- Developed technologies to use coal ash in civil engineering materials (HiBeeds, Geo Seed, NA-Crete), contributing to recycling and reducing thermal power generation costs.
- Received three chairman’s prizes in the Clean Japan Center’s award program for Three Rs initiatives.
Social Achievements
- Completed a three-year project to establish two call centers, enhancing efficiency and customer convenience.
- Strengthened marketing capabilities to solidify customer relationships, allocating 50 more marketing employees to industrial/commercial and lighting customers over three years.
- Maintained cash dividends per share at ¥50.00 (US$0.48).
Governance Achievements
- Reorganized operations into Power Generation, Power System, and Energy Marketing and Services divisions to strengthen management foundations and accelerate decision-making.
- Established the Corporate Social Responsibility Division to coordinate environmental and regional development efforts and compliance.
- Formulated the Chugoku Electric Corporate Ethics Platform and established the Corporate Ethics Committee to ensure compliance.
Climate Goals & Targets
Long-term Goals:
- Commercial operations at Shimane Nuclear Power Station No. 3 (1,373,000 kilowatts) in March 2011.
- Commercial operations at Kaminoseki Nuclear Power Station No. 1 (1,373,000 kilowatts) in fiscal 2014.
Medium-term Goals:
- Electricity sales of 61.8 billion kilowatt hours for fiscal 2014 (average growth rate of 0.9%).
- Peak demand to rise from 10.66 million kilowatts in fiscal 2004 to 12.76 million kilowatts in fiscal 2014 (average growth of 1.3%).
Environmental Challenges
- Intensifying competition in the electric utilities industry.
- Massive cash expenditures for nuclear power development.
- Moves to institute a carbon tax.
- Products and services becoming less competitive.
- Business overlap within the Group.
- Slowing growth in power demand.
- Mild summer and warm winter temperatures suppressing electricity demand.
Mitigation Strategies
- Creating new management resources through efficiency initiatives.
- Broadening business opportunities through deregulation.
- Reorganizing to accelerate decision-making and operate more efficiently.
- Strengthening Group marketing to reach management objectives.
- Developing and deploying new technologies, designs, and construction techniques to cut costs.
- Improving facilities analysis to constrain maintenance spending.
- Allocating human resources to cultivate new businesses and enhance operational efficiency.
- Deploying funds to repay and reduce interest-bearing liabilities.
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Coal ash utilization technologies
- Transmission tower-painting robot
- Hybrid fuel cell cogeneration system
Awards & Recognition
- Three chairman’s prizes in the Clean Japan Center’s award program
Reporting Period: 2019
Environmental Metrics
Total Carbon Emissions:20.34 million tCO2e (Scope 1 & 3 combined)
Scope 1 Emissions:20.34 million tCO2e
Scope 2 Emissions:40 tCO2e
Scope 3 Emissions:14.94 million tCO2e
ESG Focus Areas
- Nuclear Power Safety
- Renewable Energy
- Environmental Protection
- Financial Stability
- Human Resources
Environmental Achievements
- Reduced CO2 emissions (Specific figures are not clearly stated, but a decrease is mentioned in the report. Further analysis of the report's data would be needed for quantification.)
- Started construction of Misumi Power Station Unit 2 (Coal) using advanced power generation method (USC) aiming for superior environmental qualities.
- Operating mega solar power stations in Fukuyama and Ube cities.
- Operating biomass and coal mixed-fuel power stations.
Social Achievements
- Established Energia Creative Lab to promote innovation and new business creation.
- Expanding electricity sales business in other regions of Japan.
- Investing in power generation business overseas (Malaysia, America, Indonesia, Taiwan, Myanmar).
- Promoting active engagement of diverse human resources, setting targets for increased female representation in management.
Governance Achievements
- Adopted a system of company with audit and supervisory committee and three external directors.
- Strengthening corporate governance to establish trust with stakeholders.
Climate Goals & Targets
Long-term Goals:
- Achieving profit and financial targets stated in the Energia Group Corporate Vision (consolidated ordinary income of 60 billion yen or more per year, consolidated equity ratio of approx. 25%).
Medium-term Goals:
- Strengthening power source competitiveness by developing Misumi Power Station Unit 2.
- Establishing a revenue base in other regions of Japan and overseas.
- Stably ensuring profit levels above pre-earthquake levels.
Short-term Goals:
- Early restart of Shimane Nuclear Power Station Unit 2.
Environmental Challenges
- Decrease in electricity sales due to competition.
- Protracted suspension of Shimane nuclear power generation operation.
- Intense competition following full liberalization of retail electricity sales.
- Uncertainty regarding the restart of Shimane Nuclear Power Station.
- Fluctuations in fuel prices.
Mitigation Strategies
- Improving business efficiency.
- Developing and expanding growth businesses.
- Providing high value-added services to retain customers.
- Working towards restarting Shimane Nuclear Power Station (pending NRA approval and local consent).
- Diversifying energy mix and using the Fuel Cost Adjustment System to mitigate fuel price fluctuation risk.