Contribution to decarbonized society

Contribute to widespread use of clean energy through climate change response and environmental efforts

The Tokyo Century Group recognizes that addressing environmental issues is a key management concern and will thus seek to contribute to the creation of an environmentally sound, sustainable economy and society and a decarbonized society based on the United Nations SDGs. To this end, the Group will act with due consideration for environmental issues, including the prevention of environmental pollution, reduction of greenhouse gas emissions, mitigation and adaptation to climate change impacts, and conservation of biodiversity and ecosystems, in all areas of its operating activities.

Our efforts to contribute to a decarbonized society include environmental activities in offices, the development of solar power and other renewable energy businesses, the promotion of the Financing Program for Joint Crediting Mechanism (JCM) Model Projects for reducing greenhouse gas emissions through collaboration with developing countries and for sharing emissions reduction benefits between involved countries, and other efforts for addressing climate change through our business activities.

Contribution to the SDGs

Opportunities

Expansion of scope of renewable energy and other environment-related businesses

Risks

Emergence of stranded assets with high greenhouse gas emissions

Logic Model and Impact KPI

Goals and Progress

Output KPIs

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KPI	Applicable companies	Unit	Target year	Target	Fiscal 2022	Fiscal 2023	Fiscal 2024
Transaction volume (leases, financing, investments, etc.)	Tokyo Century Corporation and 15 major subsidiaries	Billions of yen			296.2	344.7	324.0
Rate of electrified vehicle use (EVs, FCEVs, PHEVs, HVs)	NCS, NRS^*1	%			18.4	20.3	22.4
Ratio of aviation business assets represented by fuel-efficient aircraft^*3	ACG^*2	%	Fiscal 2025	72.0%	56.0	61.9	66.3
Generation capacity of renewable energy facilities (solar power, biomass, etc.; figures as of March 31 of each fiscal year)	38 projects with involvement by Tokyo Century Group	MW			750	888	1,079
Scope 1 and Scope 2 greenhouse gas emissions (reductions in greenhouse gas emissions)	97 Tokyo Century Group companies	t-CO₂	Fiscal 2030	50% reduction compared with FY2021	1,098,126 (19.5% reduction)	937,784 (31.3% reduction)	1,347,617 (1.3% reduction)
	97 Tokyo Century Group companies	t-CO₂	Fiscal 2040	Carbon neutrality	1,098,126 (19.5% reduction)	937,784 (31.3% reduction)	1,347,617 (1.3% reduction)
CDP (climate change) score	97 Tokyo Century Group companies		Fiscal 2025	Leadership level score (A- or A)	B	B	B
(Environmental contributions through office activities)
Reduction of electricity use and CO₂ emissions	Companies applicable under environmental management system^*4	kWh	Fiscal 2025	Less than 1,745,200 kWh	1,593,216	1,612,032	1,658,656
Reduction of electricity use and CO₂ emissions		t-CO₂	Fiscal 2025	Less than 300 t-CO₂	546	216	285
Reduction of per-area head office electricity use and CO₂ emissions (intensity target)	Tokyo Century Corporation	kWh/m²	Fiscal 2030	Less than 56.9 kWh/m² (38% reduction in comparison with FY2009)	67.69	66.94	61.91
	Tokyo Century Corporation	t-CO₂/m²			0.017	0	0
Reduction of gasoline use (gasoline use, CO₂ emissions, and fuel expenses)	Companies applicable under environmental management system^*4	L	Fiscal 2025	Less than 52,000 L	49,937	48,789	46,768
		t-CO₂	Fiscal 2025	Less than 119 t-CO₂	116	112	107
		km/L	Fiscal 2025	More than 15.5 km/L	16.1	17.3	18.0
Reduction of paper use (A4-size equivalent)	Companies applicable under environmental management system^*4	Thousands of sheets	Fiscal 2025	Less than 9.5 million sheets	9,457	8,703	8,057

*1NCS: Nippon Car Solutions Co., Ltd.; NRS: Nippon Rent-A-Car Service, Inc.
*2ACG: Aviation Capital Group LLC
*3Fuel-efficient aircraft: A220, A320neo, A321neo, A350, 737MAX, and 787
Ratio of fuel-efficient aircraft assets: Ratio of fuel-efficient aircraft to all aircraft owned by ACG
*4Tokyo Century Corporation; EPC Japan K.K.; TC Agency Corporation; S.D.L. Co., Ltd.; FLCS Co., Ltd.; ITEC Leasing Co., Ltd.; and IHI Finance Support Corporation

Impact KPI

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KPI	Applicable companies	Unit	Target year	Target	Fiscal 2022	Fiscal 2023	Fiscal 2024
Volume of carbon credits purchased	Tokyo Century Corporation and TCCS^*5	t-CO₂				89,162	581
Contribution to CO₂ emissions reductions through shift to electrified vehicle (EV and hybrid) leases	NCS	Thousand t-CO₂				115	122
Contribution to CO₂ emissions reductions through solar power generation business (annual generation volume, CO₂ emissions reductions in comparison with conventional thermal power generation)	Kyocera TCL Solar LLC and nine other solar power business companies^*6	MWh	Fiscal 2025	557,500 MWh or more	536,591	560,575	589,967
		t-CO₂	Fiscal 2025	210,456 t-CO₂ or more	207,929	218,344	231,562
Anticipated greenhouse gas emissions reductions from JCM project adoption (aggregate)	Tokyo Century Corporation	t-CO₂	Fiscal 2025	56,000 t-CO₂	38,343	43,034	48,176

*5TCCS: TC Car Solutions (Thailand) Co., Ltd.
*6Fiscal 2025 targets are for Kyocera TCL Solar LLC and 12 other solar power business companies.

Initiative Example

Tokyo Century engages in renewable energy businesses, such as solar and biomass power generation, through collaborations with its partners, which represent one of its strengths.

In 2012, when the feed-in tariff (FIT) program started, we established Kyocera TCL Solar LLC through a joint investment with Kyocera Corporation. This company has been operating one of the largest solar power plants in Japan. We are also promoting biomass power generation through joint ventures with leading partners that include ITOCHU Corporation, JFE Engineering Corporation, and Forest Energy Inc.

To achieve our mid- to long-term goal of 1,000 MW of power generation capacity, we will expand our existing projects and develop new investments to help create a decarbonized society.

Nippon Car Solutions Co., Ltd. (NCS), in its auto leasing business for corporate customers, has been promoting the introduction of EVs, mainly to the NTT Group. Even before EVs attracted attention for their low environmental impact, NCS actively proposed the use of EVs as an emergency power source during times of disaster. Even now, NCS still handles the highest number of vehicles in the industry.

The company leverages its buying power for manufacturers and its strengths in total solutions, such as communication-type drive recorders and safe driving consulting to support the NTT Group, which intends to convert 100% of its company vehicles to EVs by fiscal 2030 under its EV100 initiative.

In addition, NCS works with NTT Group companies to propose EV packages to approximately 800 municipalities that have declared their commitment to carbon neutral. It cooperates with one of NTT’s close partners, a telecommunications construction company, to manage the installation and maintenance of charging facilities associated with the introduction of EVs. Furthermore, it will supply electricity derived from renewable energy sources in cooperation with NTT Group companies to help local governments achieve carbon neutrality.

The JCM has been established and implemented to quantitatively assess Japan’s contribution to the reduction and absorption of GHG emissions by diffusing excellent decarbonization technologies, products, systems, services, and infrastructure as well as by implementing other measures in developing countries, and uses the assessment results to achieve Japan’s reduction targets.

Tokyo Century is the first Japanese financial services company to serve as a representative participant of the JCM. We have partnered with local joint ventures in Southeast Asian countries to develop large-scale solar power generation projects using decarbonization technologies. From fiscal 2017 to 2023, a total of 15 projects were selected in Indonesia, the Philippines, Thailand, Myanmar, and Vietnam.