Climate Change Initiatives

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.

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.

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.

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.

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}

Total Energy Consumption^{*2 *3 *4}

Electricity Consumption^{*2 *3}

Total Gasoline and Diesel Consumed by Company Vehicles^{*2 *5}

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.

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.

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.

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.)

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.

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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.

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