Climate Change Initiatives

The Fuyo Lease Group’s Strategy for Decarbonization

Gravity of climate change has deepened in conjunction with the increase in greenhouse gases and is a global issue. Countries have been moving ahead on initiatives for decarbonization against the backdrop of the Paris Agreement, the post-2020 international framework.
Addressing climate change and decarbonization is an important business opportunity for the Group, which focuses on and has expertise in businesses related to renewable energy, and is a core area of CSV, where it can simultaneously achieve a high level of realizing social value and corporate value. In the medium-term management plan, we set contributing to the realization of decarbonized society as an important issue (materiality), and made a declaration to reduce CO₂ emissions through business activities.
The Fuyo Lease Group in engaged in initiatives to ease the impact of climate change and at the same time to grow business through a strategy based on the dual wheels of decarbonization of the Group as a form of risk reduction and decarbonization of customers and society as a business opportunity.

Regarding risks and opportunities related to climate change,The company is working on the two pillars of “decarbonization of its own group“ to reduce carbon emissions, and “decarbonization of customers and society” to capture business opportunities.

In 2019, we expressed support for the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and are disclosing information based on the TCFD recommendations. Please refer to “Information disclosure based on the TCFD recommendations” for on how we conducted a scenario analysis to identify risks and opportunities and set indicators and targets to reduce risks and capture opportunities, etc.

Decarbonization of the Group

To reduce the volume of greenhouse gases emitted, we decided that we needed to carry out initiatives voluntarily, and in 2018 became the first general lease company in Japan to participate in RE100 and declared in 2021 that we could achieve carbon neutrality in by 2030.
RE100 is an international initiative whose members intend to switch to electricity from renewable sources for the energy they need for their business operations. We have set medium- to long-term targets of achieving RE100 and becoming carbon neutral (for Scope 1 and 2 emissions) by 2030.


Use of renewable energy generated inhouse

In fiscal 2021, all of the electric power used at the Group’s head office building was shifted to RE100-compliant electricity and our overseas affiliates were also encouraged to use renewable energy. Electric power from renewable energies was introduced in our multiple domestic business locations in fiscal 2022 and the percentage of electricity derived from renewable energy amounted to 39% of the entire Group’s consumption.

Initiatives for more efficient energy use

Each business site within the Group is advancing energy-saving and energy efficiency initiatives. Specific efforts include setting air conditioning systems to appropriate temperatures, encouraging energy saving measures, and switching to high-efficiency lighting. We are also working to reduce the amount of fuel consumed by company cars by promoting safe, environmentally friendly driving techniques and raising awareness among employees. In fiscal 2022, six electric vehicles (EV) were introduced as company vehicles as part of efforts to reduce the volume of fossil fuel use.

Total CO₂ Emissions (Scope 1, 2)*1 *2 *3

March 2019 total: 1,904t-CO₂ Scope 1: 707t-CO₂ Scope 2: 1,197t-CO₂ CO₂ emissions intensity: 0.36t-CO₂/100 million yen, March 2020 total: 1,971t-CO₂ Scope 1: 688t-CO₂ Scope 2: 1,283t-CO₂ CO₂ emissions intensity: 0.29t-CO₂/100 million yen, March 2021 total: 2,016t-CO₂ Scope 1: 603t-CO₂ Scope 2: 1,414t-CO₂ CO₂ emissions Basic unit: 0.28t-CO₂/billion yen, March 2022 Total: 1,455t-CO₂ Scope 1: 584t-CO₂ Scope 2: 872t-CO₂ CO₂ emissions intensity: 0.22t-CO₂/billion yen, March 2023 Monthly total: 1,715t-CO₂ Scope 1: 558t-CO₂ Scope 2: 1,157t-CO₂ CO₂ emissions intensity: 0.25t-CO₂/100 million yen

Total Energy Consumption*2 *3 *4

March 2019 total: 36,468GJ Electricity: 25,912GJ City gas/LP gas: 30GJ Gasoline/diesel oil: 10,526GJ Energy usage intensity: 6.82GJ/100 million yen, March 2020 Total: 39,019GJ Electricity: 28,754GJ City gas ・LP gas: 28GJ Gasoline/diesel oil: 10,237GJ Energy consumption intensity: 5.71GJ/100 million yen, March 2021 total: 41,395GJ Electricity: 32,394GJ City gas/LP gas: 63GJ Gasoline/diesel oil: 8,939GJ Energy consumption intensity Unit: 5.74GJ/100 million yen, March 2022 Total: 44,854GJ Electricity: 36,142GJ City gas/LP gas: 63GJ Gasoline/diesel oil: 8,648GJ Energy usage intensity: 6.91GJ/100 million yen, March 2023 Total: 52,283GJ Electricity: 43,982GJ City gas/LP gas: 84GJ Gasoline/diesel oil: 8,217GJ Energy usage intensity: 7.59GJ/100 million yen

Electricity Consumption*2 *3

March 2019 total: 2,599MWh General electricity: 2,599MWh Electricity consumption intensity: 485.75kWh/100 million yen, March 2020 Total: 2,884MWh General electricity: 2,884MWh Electricity consumption intensity: 421.98kWh/100 million yen, 2021 March total: 3,249MWh General electricity: 3,249MWh Electricity consumption intensity: 450.92kWh/100 million yen, FY2022 March total: 3,625MWh General electricity: 2,030MWh Renewable energy: 1,596MWh Electricity consumption intensity: 558.87Wh/100 million yen Yen, March 2023 Total: 4,411MWh General electricity: 2,688MWh Renewable energy: 1,723MWh Electricity usage intensity: 640.52kWh/100 million yen

Total Gasoline and Diesel Consumed by Company Vehicles*2 *5

March 2019 total: 304KL Company vehicle fuel consumption intensity: 56.86L/100 million yen, March 2020 total: 296KL Company vehicle fuel consumption intensity: 43.29 L/100 million yen, March 2021 total: 258 KL Company vehicle fuel consumption intensity: 35.83 L/100 million yen, March 2022 total: 249 KL, Company vehicle fuel consumption intensity:  38.39 L/100 million yen March 2019 total: 237 KL,Company vehicle fuel consumption intensity: 34.38 L/100 million yen
  • *1
    CO₂ emissions are calculated using the emission coefficient specified in the Ministerial Ordinance on Calculation of Greenhouse Gas Emissions Emitted by Specified Emitters. (Calculations concerning domestic electric power use the annual adjusted emission coefficients for general power transmission and distribution businesses that supply power in the regions where the offices to which the calculations apply operate. Calculations concerning overseas electric power use the emission coefficients of the specific country published by the International Energy Agency [IEA]) However, Fuyo General Lease and companies of the Fuyo Lease Group are not considered to be specified emitters.
  • *2
    The statistics are collected from all domestic offices of Fuyo General Lease Co., Ltd., Fuyo Auto Lease Co., Ltd., FGLGROUP Business Service CO., Ltd., FGL GROUP Management Service Co., Ltd., FGL Circular Network Co., Ltd., FGL LeaseUp Business Service Co., Ltd., Aqua Art Co., Ltd., FGL Techno-Solutions Co., Ltd., Sharp Finance Corporation, Accretive Co., Ltd., INVOICE INC., FUJITA Co., Ltd., NOC Outsourcing & Consulting Inc., YAMATO LEASE CO., LTD., WorkVision Corporation, and Human Centrix Co., Ltd. as well as overseas affiliates and subsidiaries including Fuyo General Lease (USA) Inc., Fuyo General Lease (China) Co., Ltd., Fuyo General Lease (HK) Limited, Fuyo General Lease (Asia) Pte. Ltd., Fuyo General Lease (Taiwan) Co., Ltd., Fuyo General Lease (Thailand) Co., Ltd., FGL Aircraft Ireland Limited, Aircraft Leasing and Management Limited, FGL Aircraft USA Inc., and Pacific Rim Capital, Inc. For the Fuyo Lease Group companies, figures from before the figures began to be recorded are not indicated.
  • *3
    Electricity usage has been estimated for some locations. The estimation method is based on multiplying the area of the site subject to estimation by the electricity consumption per area of the Fuyo Lease head office, the entire building of the site subject to estimation, or the head office of the site subject to estimation.
  • *4
    Energy consumption is calculated using unit heating values stipulated by the Act on Rationalizing Energy Use.
  • *5
    In addition to values shown in the graph, 602kWh of electricity and 664.75 kg of hydrogen fuel were used.

Adapting to climate change

The Fuyo Lease Group is not only engaged in mitigation activities for climate change, but the Group is also carrying out adaption measures for it. We have a business contingency plan in place for responding to extreme weather, which includes measures taken to prepare for massive flooding that could occur at our business sites, or data centers, and we are working to minimize risks.

Decarbonization of Customers and Society

The Group is working to reduce CO₂ emissions through the installation and replacement of renewable energy and energy-saving equipment and devices for its customers, positioning this as an important contribution to reduction that the leasing business can make.

Energy Conservation via Products and Services

We have partnered with energy-saving equipment manufacturers, construction companies, and companies in other various sectors to help customers save energy through the ESCO service and other programs. The ESCO service provides everything needed to improve energy efficiency, including technology, equipment, personnel, and funding, and achieves energy conservation without compromising a customer's current environment or convenience. As the ESCO service provider, we receive a portion of the actual energy cost savings generated through the service as compensation. In addition, we help our customers reduce costs and CO₂ emissions by introducing various energy saving solutions tailored to their energy usage. Examples of the solutions include energy-saving control and operational improvement for air-conditioning systems and LED lightings, and subsidized leasing.

Promotion of Renewable Energy

As climate change risks increase, the renewable energy market continues to grow with a focus on solar, wind, biomass, small and medium hydro, and geothermal power. Fuyo Lease contributes to the spread of renewable energy by providing customers with a variety of optimal power generation facility installation plans combined with various financing schemes. Our offerings include participation in large-scale power generation projects and green power supply (PPA) services, such as installing solar power generation systems on customers' facility roofs or idle land and directly supplying the generated green power to customers. All these are based on the expertise we have accumulated through our own power generation business.
At the same time, we are contributing to further expanding the introduction of renewable energy by forming business alliances with venture companies that have advanced renewable energy-related technologies, and supporting industrialization and commercialization.

Initiatives in the Renewable Energy Generation Business

The Fuyo Lease Group launched its renewable energy generation business in FY2012, and now supplies renewable energy to local communities. In fiscal 2021, we focused our efforts in Japan primarily on solar and wind power generation, while overseas, we joined a solar power generation business in the U.S. In fiscal 2022, we promoted large-scale overseas projects, focused on Europe and the United States, and renewable energy generation capacity was 515 MW.

Hornsea One Offshore Wind Power Plant (U.K.)

Green Power Supplied (Output) / CO₂ emissions reduction contribution

March 2019 Green energy supply (output scale): 149MW Contribution to CO₂ reduction through renewable energy power generation: 69,514t-Co₂ Total: 69,514t-Co₂, March 2020 Green energy supply (output scale): 229MW Renewable energy Contribution to CO₂ reduction through power generation: 85,577t-Co₂ Total: 85,577t-Co₂, March 2021 Green energy supply (output scale): 283MW Contribution to CO₂ reduction through renewable energy power generation: 147,574t-Co₂ Total: 147,574t- CO₂, March 2022 Green energy supply (output scale): 318MW Contribution to CO₂ reduction through renewable energy generation: 153,422t-CO₂ Total: 153,442t-CO₂, March 2023 Green energy supply (output scale): 515MW Contribution to CO₂ reduction through renewable energy power generation: 210,782t-Co₂ Contribution to CO₂ reduction through other businesses: 9,373 Total: 220,155t-Co₂

Promoting Renewable Energy-Related Infrastructure

We offer two programs that provide financial support to companies and organizations working toward decarbonization: the Fuyo 100% Renewable Electricity Declaration Support Program, and the Fuyo Zero Carbon City Support Program.

The Fuyo 100% Renewable Electricity Declaration Support Program is a preferential financing program for businesses and organizations that have joined RE100 and the Renewable Energy 100 Declaration RE Action. The program is aimed at encouraging the introduction of renewable energy and energy-efficient equipment.

The Fuyo Zero Carbon City Support Program is a donation-style finance program to support the decarbonization of municipalities that have declared to have zero carbon dioxide emissions by 2050 (zero carbon cities). This is an initiative where a donation equivalent to 0.2% of a lease contracted amount is donated to an organization that contributes to the promotion of zero carbon cities. It is conducted in collaboration with customers that have introduced equipment or machinery for decarbonization in municipalities that have declared themselves as zero carbon cities. The program has been used by many customers throughout Japan and was chosen by the Ministry of the Environment as a project of certified excellence in the 2023 ESG Leasing Promotion Project.

Fuyo Lease Group provides financial support for decarbonization to companies in local government areas that have declared zero carbon cities. In recognition of its efforts, the company was selected as an excellent initiative certification project for the Ministry of the Environment's 2021 ESG Lease Promotion Project.

Providing Support for Investments in Renewable Energy-Related Technologies and Their Commercialization

In order to contribute to the further expansion of renewable energy introductions, we provide commercialization support to venture companies possessing cutting-edge renewable energy technologies through investments and business collaborations.

Major Support Results
Investment Timing Partner Description
June 2018 Exergy Power Systems Development and manufacture of next-generation energy storage systems
Mar. 2019 NExT-e Solutions Provision of battery management systems that utilize advanced battery control technologies
Feb. 2020 Girasol Energy Development of IoT platforms for the maintenance and management of solar power facilities
Oct. 2020 Tsubame BHB Development manufacturing technology for distributed production of ammonia under low-temperature, low-pressure conditions
Oct. 2021 i GRID SOLUTIONS Engaged in energy management, Virtual Power Plant (VPP), and electric power supply businesses