Electric Vehicle-Related Business
in the Tokyo Century Group
Establishing an EV value chain
through collaboration with partner companies
CHALLENGEToward a decarbonized society
to address climate change
Since the Paris Agreement* commenced in 2015, great strides have been made around the world toward realizing a decarbonized society. In Japan, the Japanese government declared in October 2020 the goal of achieving carbon neutrality by 2050, and in December of the same year, the Green Growth Strategy Through Achieving Carbon Neutrality in 2050 (Green Growth Strategy) was formulated. A number of initiatives are now underway to achieve this goal, including the promotion of EVs.
*A global framework for reducing greenhouse gas emissions from 2020. Specifically, it sets the long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C.
Rising greenhouse gas concentrations and increased severity of global warming can lead to...
Rising sea levels from increased seawater and melting glaciers
Frequent abnormal weather events due to climate change
Negative impact on natural ecosystems, living environments, and agriculture
Global warming will have a major impact on industries, health, and other areas of daily life.
According to the Fifth Assessment Report (2013-2014) of the Intergovernmental Panel on Climate Change (IPCC), the globally averaged combined land and ocean surface temperature rose 0.85°C over the period of 1880 to 2012. Unless effective climate countermeasures are taken, the increase of global mean surface temperature by the end of the 21st century (2081-2100), relative to the end of the 20th century (1986-2005), is likely to be 2.6°C to 4.8°C, and even if strict global warming countermeasures are taken, the increase is likely to be 0.3°C to 1.7°C.
Furthermore, average sea level is projected to rise by up to 82 centimeters.
Reference: Ministry of the Environment website “COOL CHOICE”
The popularization of EVs has been advancing worldwide as one effort
for creating a decarbonized society.
REASONSThe mission of Tokyo Century is to create an environmentally sound,
sustainable economy and society.
Reasons for Tokyo Century’s Efforts
The Tokyo Century Group’s founding business of leasing is highly compatible with an environmentally sound, sustainable economy and society. Our auto leasing business, for example, has contributed to the sustainable use of resources by selling vehicles after the expiration of their lease terms and distributing them in the used car market.
The creation of an environmentally sound, sustainable economy and society, as described in the Group’s management philosophy, is a concept that underpins the foundation of the Group, even as the scope of its business expands and diversifies. We recognize that our stakeholders not only include customers, shareholders, and investors but also the Earth itself. In September 2022, we formulated our carbon neutrality policy, which is intended to reduce the Group’s greenhouse gas emissions in its business activities to net zero by fiscal 2040.
One way in which the Group will contribute to addressing the global concern over climate change is to establish a value chain based on EVs.
VALUEOffering an environmentally sound option for customers, society,
and the Earth by building an EV value chain
We intend to promote EV leasing and use renewable energy as a power source for EVs. In addition, we will promote the secondary use of batteries that can no longer be used in EVs to reduce waste and optimize the introduction cost of EV leasing. In order to create such a virtuous cycle, we are collaborating with various partners to implement repeated examinations and demonstrations.
|Diversified leased vehicle models
|Provides charging and discharging services and energy management
|Auction-based trade for reusing batteries
and repurposed storage batteries
|Benefits to Customers
|Benefits to Society and the Earth
|Reduced greenhouse gas emissions
|Reduced greenhouse gas emissions
INITIATIVESWorking on EVs to develop a decarbonized society
Story 1Promoting EV Leasing at Nippon Car Solutions
Nippon Car Solutions Co., Ltd. (NCS), a corporate auto leasing company in the Tokyo Century Group, officially began EV leasing in 2018 and currently owns and manages several thousand EVs.
NCS is promoting the EV100 initiative within the NTT Group to replace all its commercial fleet with EVs by 2030. It is also working with the NTT Group to promote the EV Package, which covers services ranging from EV leasing to installation and management of recharging facilities and renewable energy supply, for approximately 800 municipalities that have declared themselves carbon neutral.
Story 2Providing EV Charging and Discharging Services and Energy Management (under consideration)
We entered into a partnership with Yanekara Co., Ltd. in 2022, which is positioned in the middle of the value chain of the EV business in the Tokyo Century Group.
Yanekara is developing a charging and discharging device (YaneBox) that can supply electricity stored in EVs to buildings. It also provides a charging and discharging management system that remotely controls electricity stored in multiple EVs. The combination of the YaneBox with the Group’s EV leasing and other mobility services will address the cost and operational issues associated with the introduction of EVs. Additionally, we are considering offering services that combine charge/discharge management and leasing methods, such as using EVs as storage capacity to appropriately control electricity to reduce its costs, and efficiently using EVs as emergency power sources in times of disaster.
Story 3Leasing Repurposed EV Battery Products and Establishing a Battery Utilization Model (under consideration)
The capital and business alliance with MIRAI-LABO, Co., Ltd., which operates EV battery diagnosis and evaluation and reuse businesses, is an exit strategy for the value chain.
MIRAI-LABO mixes batteries at varying stages of deterioration to repurpose as stationary storage batteries and autonomous street light batteries, thereby minimizing waste and increasing value. Tokyo Century helps introduce MIRAI-LABO’s various products through leasing.
Going forward, we intend to develop a model for effectively using batteries that combines MIRAI-LABO’s battery utilization know-how with the Tokyo Century Group’s EV leasing. It is expected that the residual value* set at the time of auto lease contract can be more precise than the current value, and that proposals to introduce EVs at appropriate costs will be promoted.
*Estimated market value of the vehicle when the lease contract expires.