Contribution to social infrastructure development
Respond to advances in global mobility services and cooperate with local communities to contribute to social infrastructure development
In the Automobility segment, Tokyo Century provides mobility-related services through its auto leasing and car rental businesses. These services play a crucial role in contributing to social infrastructure while also having material importance to supporting safety. Moreover, we are promoting the use of vehicles equipped with automated brakes and other safety features in order to contribute to the achievement of target 3.6—By 2020, halve the number of global deaths and injuries from road traffic accidents—of SDG Goal 3: Good health and well-being. In addition to these equipment-related initiatives, we are proactively offering support through software-related initiatives, namely, safe driving lessons that utilize telematics systems. Moreover, GO and Nippon Car Solutions Co., Ltd., formed an agreement in September 2022 that entails introducing customers to DRIVE CHART, a next-generation AI drive-recording service of GO. DRIVE CHART, which is supplied to lessees and other business partners of Nippon Car Solutions, automatically detects dangerous situations highly likely to result in an accident based on drive recorder and other data. This service is used to analyze driving patterns to propose improvements to one’s driving practices and thereby help reduce traffic accidents.
In a business environment free of regulatory constraints, Tokyo Century is branching out from leasing and financing to develop and grow unique business models based on the concept of “Finance × Services × Business Expertise” through co-creation with partners.
For example, we recognize that the revitalization of local communities through the tourism industry is an important task as the depopulation of areas outside of major urban centers becomes an increasingly serious social issue. In this regard, ANA InterContinental Beppu Resort & Spa, an establishment that Tokyo Century played a part in attracting, was opened in Beppu City, Oita Prefecture, in August 2019. This facility garnered attention as Japan’s first InterContinental resort hotel and is functioning as a piece of social infrastructure that promotes tourism and contributes to regional revitalization. Calling upon the expertise gained through this undertaking, we were able to conclude an operation subcontracting agreement with InterContinental Hotels Group PLC, based on which we opened Hotel Indigo Karuizawa—located in Karuizawa, a popular Japanese highland resort area—in spring 2022.
Tokyo Century is also involved in real estate operations in Tokyo. In these operations, Mitsubishi Estate Co., Ltd., and Tokyo Century have selected Dorchester Collection, the ultraluxury hotel brand, to operate the hotel on the upper floors of Torch Tower—which will be the tallest building in Japan once completed—in the TOKYO TORCH district facing the Nihombashi Exit of Tokyo Station, which we are developing together with relevant rights holders. The hotel is scheduled to open in 2028 and expected to become a key component of the TOKYO TORCH district, which is being developed with the goal of creating an urban tourism hub that acts as a gateway to Tokyo and Japan. Together with the office section previously acquired by Mitsubishi Estate and the Company, these assets are expected to function as important parts of social infrastructure in this urban center. In addition, the Tokyo Cross Park Vision project has been announced by a group of 10 participating companies, including Tokyo Century. This next-generation smart city project calls for the development of the area of the Uchisaiwaicho 1-chome district of Tokyo. With an aggregate floor space of 1.1 million m2, this will be one of the largest development projects in Tokyo. Connected to the 16-hectare Hibiya Park, the Tokyo Cross Park Vision project will develop office buildings, commercial facilities, and residential housing while contributing to the shared goal of operating in a carbon-negative manner in order to help realize a sustainable community and society.
Furthermore, we announced a business and capital alliance with Nippon Telegraph and Telephone Corporation (NTT) in February 2020. The need for high-speed processing and collection of large quantities of data is growing on a global scale, stimulating a rise in data centers. In response to this trend, we will advance social infrastructure business initiatives through our alliance with NTT as we seek to make other contributions together with partners.
In our first collaborative real estate project to be advanced together with NTT TC Leasing Co., Ltd.—a publicly certified wholesale market redevelopment project in Toyama City, Toyama Prefecture—the buildings, developed and owned by NTT TC Leasing and Tokyo Century, were leased to Toyama City in March 2022. Together with this partner, we seek to respond to demand for rebuilding aged public facilities across Japan, contribute to local infrastructure development, and advance initiatives with significant social meaning that help revitalize local communities.
- Contribution to the SDGs
-
Opportunities
- Rising investment in data centers and resilient real estate in preparation for future trends
- Development of hotel businesses contributing to local economic development
Risks
- Obsolesce of social infrastructure due to population aging and decline
- Decreased tourism demand as a result of prolongation of COVID-19 pandemic
Goals and Progress
Scrollable horizontally
KPI | Applicable companies*1 | Unit | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 |
---|---|---|---|---|---|
Number of vehicles equipped with telematics services | NCS, NRS, OAL | Vehicles | 67,757 | 74,180 | 82,051 |
Number of safe driving lessons conducted using telematics services*2 | NCS | Lessons | 459 | 923 | 1,132 |
Participants | 7,095 | 13,261 | 18,774 | ||
Ratio of rental cars equipped with safety features (automated brakes, etc.) | NRS | % | 94.3 | 96.0 | 97.2 |
- *1NCS: Nippon Car Solutions Co., Ltd.; NRS: Nippon Rent-A-Car Service, Inc.; OAL: Orico Auto Leasing Co., Ltd.
- *2The number of safe driving lessons declined substantially in fiscal 2020 in response to the COVID-19 pandemic, and this reduction led to a decrease in the number of participants.
Initiative Example
We are participating in large-scale redevelopment projects such as the Tokyo Cross Park Vision project in Uchisaiwaicho 1-chome, Chiyoda-ku, Tokyo and the TOKYO TORCH project in the Tokiwabashi area in front of Tokyo Station.
The Tokyo Cross Park Vision project, comprising the North Zone, Central Zone, and South Zone, is the largest development project in central Tokyo, with a floor area of approximately 1.1 million square meters and co-created by 10 companies (including related rights holders and parent companies) rooted in the area. Tokyo Century is promoting the project as an operator of the South Zone, the location of the South Tower (scheduled to be completed in fiscal 2028), which will consist of offices, a hotel, wellness facilities, and other amenities.
A new hotel and hall in TOKYO TORCH, which we jointly acquired with Mitsubishi Estate Co., Ltd., is scheduled to be completed in fiscal 2027. It has been decided that Dorchester Collection, one of the world’s leading ultra-luxury hotel brands, will make its first foray into Asia at TOKYO TORCH. Our participation in these redevelopment projects will help improve social infrastructure and enhance the charm of Tokyo, Japan.
In 2022, we opened Hotel Indigo Karuizawa as a new lifestyle boutique hotel reflecting the story of Karuizawa. It is our second project in collaboration with InterContinental Hotels Group PLC, following our first resort development project, the ANA InterContinental Beppu Resort & Spa.
The hotel is the first hotel owned and operated by the Tokyo Century Group, and local timber (Nagano-grown Karamatsu pine) was used for its exterior and interior construction. In addition, we reflect the unique characteristics of the hotel’s surrounding area in its meals and services to remain close to the local community in helping to reduce CO2 emissions and revitalize local regions.
Tokyo Century is jointly operating data centers in India with NTT Global Data Centers Corporation (NTT GDC) of the NTT Group. In 2022, construction of the Mumbai 8 Data Center was completed and started operation.
In India, data usage is expected to increase rapidly against the backdrop of government-led digitization measures, including the expansion of smartphones and the use of video content. As a result, demand for data centers is rising. NTT GDC and Tokyo Century have therefore decided to expand their operations to the Navi Mumbai area, located east of Mumbai, and construction is progressing in stages.
NTT Global Data Centers and Tokyo Century expand collaboration in the Data Center business in India
Tokyo Century’s Contribution to the SDGs
Tokyo Century is contributing to the enrichment of daily life and the sustainable development of society toward achieving the SDGs adopted as a shared responsibility for the international community at the United Nations Summit on Sustainable Development.