Sustainability at Tokyo Century Group Highly Significant Social Initiatives through our Business Activities
Tokyo Century pursues highly significant social initiatives through its business activities, including those to prevent global warming through its social infrastructure improvement, disseminate clean energy, and contribute to regional revitalization through its hotel business.
- Preventing Global Warming by Advancing the Joint Crediting Mechanism
- Effective Use of Resources toward Creating a Sustainable, Environmentally Sound Future
- Initiatives for Regional Revitalization through the Hotel Business
- Reducing Environmental Impact through Stable Energy Transportation
- Providing Customers with Safe and Trusted Rent-a-Cars
- Promoting Solar Power Generation Business through the Issuance of Green Bonds
Preventing Global Warming by Advancing the Joint Crediting Mechanism
Summary of the Joint Crediting Mechanism
The Paris Agreement on climate change, enacted in
November 2016, set a target of constraining the rise in the
average global temperature to less than 2°C above preindustrial
levels as a means of pursuing efforts to limit the
temperature increase even further to 1.5°C. For Japan, the
agreement stipulates that greenhouse gas emissions must
be cut by 26%, compared to fiscal 2013, by fiscal 2030.
Use of Japan’s unique Joint Crediting Mechanism (JCM) is growing as an effective way to achieve these targets. The JCM facilitates the diffusion of Japan’s superior low carbon technologies to partner countries with support in the form of subsidies for part of the installation cost towards contributing to the establishment of a sustainable social infrastructure and reduced greenhouse gas emissions in these partner countries. At the same time, the system enables crediting some of the reduction in greenhouse gases under Japan’s emissions. Through the JCM and other initiatives, Japan estimates it can reduce and absorb an accumulated total ranging from 50 million to 100 million tonnes in greenhouse gas emissions by fiscal 2030.
JCM Initiatives of Tokyo Century Group
Tokyo Century is the only Japanese financial services company that serves as a representative participant of the JCM model project. We actively participate in projects, utilizing our extensive overseas network and high-value-added financial service capabilities. Our strengths as a representative participant are our superior planning and proposal capabilities for environmental equipment through alliances with partner companies and our ability to supply subsidies as well as operating funds through our local overseas subsidiaries. We believe that the JCM represents an opportunity for us to utilize the know-how and strengths gained through our business activities.
Our achievement in the JCM business already extends to six projects in three countries as of July 2019. In addition to supporting efforts to mitigate global warming and more broadly disseminate the outstanding low carbon technology of Japanese manufacturers, the JCM business represents significant social value by contributing to the economic development of partner countries. It is closely aligned with efforts to achieve the SDGs and can be viewed as a business that contributes on a global scale to the creation of an environmentally sound, sustainable economy and society. Because of its position in a management environment free of regulatory constraints, Tokyo Century has been able to provide many financial services required by customers in Japan and overseas. Going forward, we intend to continue actively promoting and expanding JCM business in partnership with Japanese companies by leveraging the provision of our high-value-added financial services.
Effective Use of Resources toward Creating a Sustainable,
Environmentally Sound Future
As part of our efforts to realize energy creation business
that utilizes public infrastructure (e.g., wastewater treatment
plants) and regional resources, we intend to work with
Tsukishima Kikai to develop power generation business
utilizing digestion gas (biogas) generated at wastewater
treatment plants. Digestion gas is flammable and primarily
comprised of methane, generated in the process of sewage
treatment. This previously untapped resource of renewable
energy is expected to be used effectively in preventing
This business system is structured with private enterprises constructing power generation facilities using their own funds and know-how. We have undertaken the power generation business for 20 years by utilizing digestion gas purchased from municipalities and sell the electricity generated to power companies. While not needing to provide any business funds or own property, the local government earns revenue from the land used for construction and supply of digestion gas.
By combining Tokyo Century’s expertise gained in the renewable energy business and financial services along with the energy creation business in the wastewater treatment field which Tsukishima Kikai excels, we are committed to creating an environmentally sound, sustainable economy and society through operation of stable power generation business.
Rendering of the completed Nakagawa Mizu Junkan Center digestion gas power generation plant
Initiatives for Regional Revitalization through the Hotel Business
Tokyo Century believes that revitalization through tourism is a key countermeasure to the social issue of the depopulation of regional areas. As part of our efforts to address this challenge, we have been involved in developing the ANA InterContinental Beppu Resort & Spa, a spa resort by an international five-star hotel brand. Having opened in August 2019, the hotel will appeal to tourists from around the world seeking a luxury experience and is expected to make Beppu City, already one of Japan’s most famous hot spring areas, a global tourist destination.
ANA InterContinental Beppu Resort & Spa
Reducing Environmental Impact through Stable Energy Transportation
Demand has recently been increasing for LNG as a clean form of energy due to the lower emissions of CO2 and nitrogen oxides when combusted compared to other fossil fuels such as coal and petroleum. In this context, Tokyo Century has become the first leasing company to participate in an ownership of a newly built LNG carrier as part of its efforts to contribute to the stable transportation of energy. The adoption of cutting-edge environmental technologies, such as improvements in propulsion performance from an optimized hull shape to achieve 25% higher fuel efficiency than that of conventional carriers, means our jointly owned LNG carrier also reduces environmental impact during navigation.
LNG tanker Enshu Maru
Providing Customers with Safe and Trusted Rent-a-Cars
In January 2017, Nippon Rent-A-Car Service, Inc. began
introducing vehicles fitted with ASV* to prevent customer
traffic accidents and offer safe, trusted vehicles. As of May
2019, ASV-equipped vehicles accounted for approximately
85% (around 32,000 vehicles) of its total fleet.
Prior to the introduction of ASV, roughly 18% of all customer accidents were attributed to carelessness associated with such factors as a failure to check the road ahead properly. Some of these accidents, such as low-speed collisions in traffic jams and crossing the center line, could have been prevented by ASV.
In addition, the company has decided to install drive recorders as standard equipment in all new cars introduced starting in July 2019. We will continue offering safe, trusted, and comfortable rent-a-cars, and implement measures to reduce traffic accidents and the social concerns over hazardous driving.
* Advanced Safety Vehicle: A vehicle with an onboard system that supports safe driving through equipment such as an advanced emergency breaking system, adaptive cruise control, a lane keeping assistant, and electronic vehicle stability control.
Promoting Solar Power Generation Business through
the Issuance of Green Bonds
Tokyo Century raised ¥10 billion through the issuance of
green bonds (unsecured bonds)* by public offering in
October 2018. The funds were allocated for leasing solar
power generation facilities for our consolidated subsidiary
Kyocera TCL Solar. Since its establishment in August 2012,
Kyocera TCL Solar has operated and managed solar power
plants in more than 70 locations across Japan. We remain
committed to promoting renewable energy as well as
contributing to environmental protection.
* These bonds are issued to raise funds for green projects that aim to resolve environmental issues.
Mega Solar Power Plant, operated by Kyocera TCL Solar in Kurokawa District, Miyagi Prefecture