Towards the Realization of a Decarbonized Society｜Solving Social Issues through Business

Towards the Realization of a Decarbonized Society

Realizing decarbonization of customers and society by providing various services to reduce CO₂ emissions

7 Affordable and clean energy 13 Climate action 17 Partnerships for the goals

The Company has been promoting the reduction of CO₂ emissions by providing customers with services since establishing its first solar power plant and joining the renewable energy business in February 2013. In September 2018, we became the first general lease company in Japan to participate in RE100, and now aim to simultaneously achieve carbon neutrality for the Group and RE100 by 2030.
We will promote a decarbonized society through efforts for our Group and services for customers and society.

Roadmap to Decarbonization

Roadmap for decarbonization In fiscal 2012, we started a renewable energy power generation business to help decarbonize our customers and society. In fiscal 2018, we participated in RE100, which promotes renewable energy as an effort to decarbonize our group. In 2019, we will support the TCFD as an initiative for the decarbonization of our group. Launched 100 Renewable Energy Declaration and Support Program to decarbonize customers and society. In fiscal 2020, we launched the “PPA Service” and Zero Carbon City Support Program, which directly delivers renewable energy to customers in order to decarbonize customers and society. In fiscal 2021, as part of our group’s efforts to decarbonize, we will substantially convert the electricity at our group headquarters to renewable energy and declare carbon neutrality and RE100 by 2030. In fiscal 2022, as part of our group's efforts to decarbonize, we will begin full-scale transition to EVs and FCVs for company cars and achieve an A⁻ rating in the CDP climate change report. Customers: Participated in an offshore wind power generation project overseas (in the UK) as an initiative toward decarbonization. Our group will promote decarbonization by FY2026. In order to decarbonize our customers and society, we will contribute to decarbonization through business and promote it by setting non-financial goals. Contribution to CO₂ emission reduction: 500,000t-CО2/year Capital investment for decarbonization: Cumulative total of 300 billion yen over 5 years Renewable energy generation capacity: 1,000MW EV/FCV ownership ratio: 30% Decarbonization finance transaction amount: 5 Annual cumulative total of 12 billion yen Aiming to achieve carbon neutrality & RE100 (*Scope 1 & 2) by 2030.

Renewable Energy Projects on a Global Scale

Renewable energy power generation business expanding globally 2013 Started solar power generation business in Japan 2021 Participated in solar power generation business in the United States 2022 Participated in offshore wind power generation business in the UK 2023 Power generation capacity of renewable energy power generation business undertaken by our group exceeds 500MW UK: Offshore wind power generation business (off the coast of England and Scotland) UK: Large grid storage battery business EU: Solar, wind and hydropower fund investment Thailand: Solar PPA merger business Japan: Renewable energy power generation business approximately 100 Site Taiwan: Solar power generation business fund investment United States: Texas solar power generation business United States: Solar and onshore wind power fund investment

Supporting Customers’ Introduction of Renewable Energy

The Group works actively on a system called Power Purchase Agreement, or PPA, as a decisive resource to promote the introduction of renewable energy by customers. This is a system in which the Company owns and manages power generation equipment in spaces such as within grounds and on building rooftops, and provides the generated electricity to users of the facility’s electricity for a fee.

Installed PPA on the rooftop of TEIKOKU SEN-I’s Kanuma Plant

Fuyo Lease became involved with TEIKOKU SEN-I CO., Ltd. during the construction of the new building of Kanuma Plant by handling the installation of solar power generation equipment on the rooftop. The green power generated is utilized in the company’s manufacturing processes, which contributes to the company’s shift to renewable energy.

Service image Fuyo Sogo Lease Co., Ltd. has entered into a green power supply contract with Teikoku Senki Kanuma Factory, and is installing, operating and maintaining solar power generation equipment for Teikoku Senki Kanuma Factory free of charge. Teikoku Senki's Kanuma Factory purchases the generated electricity and pays Fuyo Sogo Lease Co., Ltd. a fee based on the amount of electricity used. Green electricity is electricity generated from CO₂-free energy sources such as solar, wind, and biomass.

From Customers

TEIKOKU SEN-I CO., Ltd.　Vice President　Tatsuru Okamura

As a company that conducts disaster prevention business, we view measures against greenhouse gas effects as a critical issue. We have set a goal of reduction CO₂ emissions by 30% by 2030 and are promoting a conversion to renewable energy. We were able to swiftly receive a proposal from Fuyo General Lease for solving our issues and requested a PPA scheme located on the rooftop attached to the newly constructed building of Kanuma Plant, which is our main factory. We were able to begin operation in July of this year and have also received proposals aimed at further decarbonization, for which we are incredibly grateful. Going forward as well, I hope they will enhance collaboration even further as a reputable business partner.

From Executive Officers in Charge of Sales

Fuyo General Lease Co., Ltd.　Managing Executive Officer　Masaki Gonda

We helped with the PPA located on the rooftop of the Kanuma Plant as a solution for converting to renewable energy, which is a managerial issue faced by TEIKOKU SEN-I. The company has set even higher targets aimed at decarbonization, so we will continue to propose the most effective measures based on various scenarios and commit full effort in order to be of service. We constantly face challenges from the customer’s perspective. We will devote full effort to developing employees who can swiftly provide complete proposals and contribute to customers’ sustainable growth.

Supporting the Social Implementation of Advanced EV Technology through Investment in EV Motors Japan

EV Community Bus (Launched in spring 2021)

In December 2022, we made an investment in EV Motors Japan Co., Ltd. which conducts development manufacturing and sales focused on EV for commercial use. EV Motors Japan harnesses technology such as its in-house developed motor control system, which greatly reduces electricity consumption and battery deterioration, and the development of lightweight vehicles which solve the issue of cruising distance. Develops commercial EVs for mass production equipped with a world-class low electricity consumption rate, long battery lifespan, and safety features. Our investment is scheduled to be allocated to items such as funding for construction of mass assembly plants, and research and development required for the development of trial vehicles and demo vehicles in order to accurately address market demand.

Creating a Carbon Credit through a Forestry Fund Investment

In July 2023, we made an investment as 1 of 10 Japanese companies in Eastwood Climate Smart Forestry Fund I, a forest fund of ¥60.0 billion total formed by Eastwood Forests, LLC, which is an American forestry asset management company under the Sumitomo Forestry Group. In the U.S., where markets and systems are advancing ahead of other regions, we will contribute to the realization of a decarbonized society by creating high-quality carbon credits through appropriate forest management, and increase the value of forests as natural capital, which includes the maintenance of biodiversity and the preservation of water resources.

How a forest fund works Investors invest in a fund that owns forest assets, and receive cash distributions and carbon credits from the fund. The fund sells wood to wood consumers (such as sawmills) and receives compensation. Additionally, the fund sells carbon credits to carbon credit users (such as airlines) and receives compensation.