It has become clear that the main climate-related opportunities for the Group are the shifting of the business environment toward carbon neutrality, and that the main risks are the impact on profit and loss from the introduction of carbon taxes.
Measures to increase opportunities
In terms of measures to respond to the shifting of the business environment toward carbon neutrality, we believe that we should expand our policy review support and consulting services to private companies, in fields relating to three key points presented in the carbon neutral recommendations: (1) early zero emissions of the power sector, (2) induction of strategic innovations, and (3) behavioral changes on the demand side).
Specifically, we will engage in policy-making and expand private consulting in various fields such as the promotion of innovation, carbon pricing, sustainable finance (integrating sustainability factors such as the environment into funding economic activities) and international collaboration—in 14 key areas of the growth strategy accompanying the Japanese government's 2050 carbon neutrality declaration. We recognize the importance of sharing the medium to long-term external environmental changes brought about by climate change throughout the Group and utilizing the Group's high-level insights, know-how, and network to create new businesses.
Measures to reduce risks
The main climate-related risk is the introduction of carbon pricing such as carbon taxes.
The Group's GHG emissions are low, at 9,686 tCO2(for the fiscal year ended September 30,2022), and the majority of these are Scope 2 emissions resulting from the use of electric power at data centers and offices. As considerations on carbon pricing such as carbon taxes progress, efforts to minimize financial impact through the reduction of GHG emissions are essential. The Group will actively promote the introduction of renewable energy, in particular by improving the percentage of power used by data centers accounted for by renewable energy, in order to reduce GHG emissions derived from electric power. In addition, based on the knowledge accumulated by contributing to the institutional design of markets trading in carbon emissions, we will work to reduce emissions with a view to utilizing carbon emission rights (credits)—which are highly effective in reducing emissions—resulting from CO2 emission reduction projects in Japan and overseas.