Airport Facilities Co., Ltd. (AFC)
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2024)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:37,126 t-CO2e/year (FY2021)
Total Energy Consumption:6,395,000 kWh/year (FY2021)
Water Consumption:1,233,000 m3/year (FY2021)
Waste Generated:1,419 tons/year (FY2021)
ESG Focus Areas
- Environment
- Society
- Governance
Environmental Achievements
- Reduced CO2 emissions by 28% from FY2013 to FY2021
- 100% replacement of lights in major facilities with LEDs (scheduled completion in FY2023)
- First issuance of green bonds for investment in domestic airports
- Donation of excess CO2 emission reduction credits to Tokyo Metropolitan Government
Social Achievements
- Introduction of flex time system and work from home system to improve work-life balance
- Opened in-house consultation desk on childcare leave
- Prepared handbook on marriage, childbirth, and childcare
- Implemented D&I training for different job grades
- Increased ratio of female employees from 17% to 28% in the last five years
- Established a fire defense organization for self-protection
- Held basic life-saving certification training for employees
- Donated stockpiles for disaster prevention to Ota Ward Welfare Department
Governance Achievements
- Transitioned to the Prime Division of the Tokyo Stock Exchange
- Reduced the number of directors from 13 to 9, with 3 external directors
- Abolished the system of corporate advisors
- Established the Sustainability Promotion Council
- Expressed endorsement of the TCFD (Task Force on Climate-related Financial Disclosures)
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- Reduce CO2 emissions by 46% in FY2030 compared to FY2013
- Achieve a 100% ratio of eco-friendly cars and install recharging facilities for electric vehicles in major facilities
Short-term Goals:
- 100% replacement of lights in major facilities with LEDs by FY2023
- Replacement with high-efficiency equipment and devices by FY2027
Environmental Challenges
- COVID-19 pandemic impact on net sales and operating income
- Low inbound demand
- Rising fuel prices and raw material expenses
- Increase in depreciation expenses with the start of the Haneda Airport 1-Chome Project
- Geopolitical risks
- Aging of facilities and disaster risks
- Limited profit increase with a business mainly focusing on services within airports
- Climate change transition and physical risks (increase in construction cost, taxation burden, vacancy rates, etc.)
Mitigation Strategies
- Implemented rent and heating charge exemptions for tenants
- Engaged in projects outside airports
- Decided to sell the hotel in Kyoto
- Formulated AFC VISION and a Medium- to Long-Term Management Plan (FY2022-FY2028)
- Implemented three priority measures: Haneda Airport 1-Chome Project, expansion of non-asset business, and improvement of existing business profitability
- Established AFC Asset Management Co., Ltd. to promote non-asset business
- Strengthened the business foundation through human resource development, IT utilization, and corporate governance improvement
- Implemented measures to reduce CO2 emissions, conserve water resources, reduce waste, and promote recycling
- Developed a business continuity plan (BCP)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme heat
- Large-scale typhoons and concentrated heavy rains
- Flood damage due to sea surface elevation
Transition Risks
- Increase in construction cost
- Increase in taxation burden on CO2 emissions
- Increase in vacancy rates
Opportunities
- Increase of competitiveness by owning environmental-friendly properties
- Cost reduction by introducing high-efficiency equipment
- Increase in asset values by preparing environmental-friendly properties
- Reduction of CO2 emission and the increase of the competitiveness of properties with the further development of solar power generation for self-consumption
Reporting Standards
Frameworks Used: TCFD
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 11 (Sustainable cities and communities)
- Goal 13 (Climate action)
Initiatives contribute to these goals through reduction of CO2 emissions, promotion of renewable energy, and building disaster-resilient facilities
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Climate change
- Decarbonization
- Water resource preservation
- Community engagement
- Safety and security
- Diversity, Equity & Inclusion (DE&I)
- Corporate governance
Environmental Achievements
- Installed solar power generation equipment on building rooftops
- Reduced energy consumption through LED lighting upgrades
- Installed megawatt-scale solar panels at cargo terminal for self-consumption (2020)
- Installed hybrid outdoor lights using wind and solar power
- Treatment of aircraft sewage and wastewater at SD plants and aircraft washer facility
Social Achievements
- Donation of bento boxes from inflight meal factory to Kids Café
- DE&I training and internal newsletter
- Support for airport staff through apartment buildings
- Community cleaning activities around facilities
Governance Achievements
- Established Risk Management Committee
- Developed and improved internal control system
- Established various regulations and committees on compliance and risk management
Climate Goals & Targets
Environmental Challenges
- Reducing CO2 emissions
- Preserving water resources
- Managing risks associated with business activities
Mitigation Strategies
- Solar power generation
- LED lighting upgrades
- Megawatt-scale solar panels at cargo terminal
- Hybrid outdoor lights
- Wastewater treatment
- Comprehensive risk management system
- Risk Management Committee