In October 2021, the MIRAIT ONE Group joined the TCFD Consortium*², endorsing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*¹, which aims to proactively disclose the financial impact of climate-related risks and opportunities. In May 2022, we disclosed information based on the recommendations on "Governance," "Risk Management," "Strategy (Scenario)," "Target," and "Actual Performance" as described in the section below. In the future, we will monitor changes in the external and internal environment associated with climate change with respect to "identified risks" and "opportunity examination." We will also work to expand the scope of disclosure further to include the development of risk management system, continued review of risks and opportunities based on scenario analysis, etc. and progress toward achieving the greenhouse gas emissions reduction targets.

After establishing ESG Management Promotion Committee (see ESG Management Promotion System) in September, the materiality "Create and protect an environmentally friendly society" was resolved after deliberation by the Management Committee and the Board of Directors, and the realization of a decarbonized society In order to make full-fledged contributions to this goal, we have set a greenhouse gas emissions reduction target (2030), which is one of the KPIs in our medium-term management plan, and have established a system to monitor progress.

The 2030 greenhouse gas emissions reduction target was certified as SBT (Science Based Targets^*1) in February 2023.

In fiscal 2023, the committee will meet four times in total to discuss the specific GHG emissions reduction status and reduction measures for the entire group, respond to evaluations from various ESG rating agencies, analyze the results, formulate strategies, We are promoting various measures.

*1 Greenhouse gas reduction targets set by companies with a target year of 5 to 15 years in the future consistent with the level required under the Paris Agreement (limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C). (From the Ministry of the Environment and Ministry of Economy, Trade and Industry Green Value Chain Platform)

We also revised the remuneration system for board members to raise the awareness of management on ESG initiatives. In FY 2022, a non-financial target of “greenhouse gas emissions” was introduced as a new indicator in addition to the conventional indicators for performance-linked compensation: “consolidated operating profit” and “consolidated ROE.”

We have established a basic policy and promotion system for risk management as a corporate group in the form of “Risk Management Regulations,” as we take appropriate steps to deal with various risks based on our risk management plan.

In fiscal 2023, the Risk Management Committee met twice to discuss and address the status of the use of the Help Line and the management of major risks, such as litigation matters, at each corporate group company. In addition, based on the results of an analysis of the Questionnaire Survey on Compliance and Risk Management, etc. conducted for all employees and executives, measures were clarified for each division in charge, and educational activities were conducted. (Related section: Thorough risk management.)

The ESG Management Promotion Committee also takes the initiative on climate-related risks and opportunities, monitoring changes in the external and internal environment associated with climate change and identifying climate risks and opportunities that affect our business. The identified risks and opportunities are evaluated and analyzed to determine their impact on the Group with a focus on risks and opportunities that have a high degree of impact. Following deliberations by the Board of Directors and the Executive Committee, these are incorporated as company-wide risks and opportunities.

The MIRAIT ONE Group has analyzed the potential climate-related risks and opportunities in the future by referring to the scenarios based on the average temperature rise of less than 2°C (e.g. 1.5°C) and 4°C*¹. Consequently, it was assessed that the transition to a decarbonized society (policy/legislation/market/reputation) would be subjected to the impacts that manifest as a result of anticipated future events and physical (acute/chronic) impacts from climate change.

We reviewed our medium-term management strategy with respect to these risks and reaffirmed the "realization of a decarbonized society through business activities" as a material issue. In terms of our business engagement, we have also identified the growing demand for smart infrastructure/energy solutions as a prospective opportunity.

*1 The scenarios refer to the following.
A scenario in which a decarbonized society is realized quickly:
• International Energy Agency (IEA) World Energy Outlook 2018 Sustainable Development Scenario (SDS)
• IEA Energy Technology Perspectives 2017 Beyond 2°C Scenario (B2DS)
A scenario in which the physical impact is manifested:
* Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report
* An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty

In FY2021, the MIRAIT One Group (excluding Kokusai Kogyo) declared its commitment to “Realization of virtually zero greenhouse gas (GHG) emissions by 2050” in order to achieve carbon neutrality by 2050, and set a target for reducing greenhouse gas emissions in fiscal 2030. In February 2023, we were certified by SBTi(Science Based Targets initiative) as a scientifically based target. By setting non-financial targets in the medium-term management plan, we are steadily incorporating growth opportunities for our business in decarbonisation. Note that Kokusai Kogyo set its reduction targets and obtained SBT certification in September 2021, prior to joining the Group in December 2023.

The results of greenhouse gas emissions for fiscal 2020 and subsequent years are as follows.

Independent assurance statement for fiscal year 2023（PDF:410KB）
(For past independent assurance statements, click here.)

MIRAIT One Group as a whole

Category	Emissions
	FY 2020 (Standard)	FY 2023
Scope 1＋2	89,731（t-CO2）	77,268（t-CO2）
Scope 3	2,471,130（t-CO2e）	1,761,230（t-CO2e）

※The FY2023 greenhouse gas emissions results for the entire Group include the FY2023 results for Kokusai Kogyo.

MIRAIT One Group (excluding Kokusai Kogyo)

Category		Emissions
		FY2020 (Standard)	FY 2021	FY 2022	FY 2023
Scope １	Direct emissions	66,890	67,907	65,166	61,811
Scope ２	Indirect emissions	22,841	21,277	19,754	12,969
Scope ３	Other indirect emissions	2,471,130	2,413,496	2,222,900	1,711,795
Category1	Purchased goods and services	513,292	452,295	337,073	362,896
Category11	Use of sold products	1,892,870	1,848,997	1,814,356	1,273,909
Others (Category2,3,5,6,7,12,13) Total		64,968	112,204	71,471*１	74,990*１
Sum total for Scope1ｰ3		2,560,861	2,502,680	2,307,820	1,786,575

*Figures for FY 2020 (Standard) include those for Seibu Construction Co., Ltd.
*Emission unit: Scope1,2 (t-CO2), Scope3 (t-CO2e)

At local construction centers, we have installed LED lighting, demand monitoring systems for power consumption, and rooftop solar power generators to promote energy conservation.

To reduce electricity consumption, which accounts for a large portion of energy consumption in offices, the entire Group is working together to promote multifaceted power-saving measures. They include: reducing the number of printers and copy machines, and using them more efficiently; setting PCs to a power-saving mode; optimum indoor temperature control; switching off unnecessary lighting; and raising awareness on using elevators less frequently.

The Group is working to transition to the use of renewable energy in different business locations. In FY 2023, the transition to renewable energy for our own buildings progressed to 63%.

In addition to accelerating the conversion to low-emission, fuel-efficient vehicles such as EVs and hybrids, we also promote “eco-driving,” which has a lower environmental impact and helps lower the number of traffic accidents, while utilizing cloud-type drive recorders. In addition, we are working to reduce greenhouse gas emissions through better fuel efficiency and company-wide educational campaigns on the use of fuel additives that cut greenhouse gas emissions. In FY 2023, we transitioned 24% of the general-purpose vehicles used for business operations to EVs and hybrid cars.

We aim to realize a decarbonized society by constructing, operating, and maintaining more efficient social infrastructures and advanced energy-related systems as part of our business activities, and by promoting the supply of renewable energy.

We contribute directly to creating energy infrastructure needed for a decarbonized society through Environmental and Social Innovation Business in the Corporate/Environmental and social Infrastructure domain. Specifically, this is performed through the design, construction, operation and maintenance of power generation systems that rely on solar power and other renewable energy sources, installation and maintenance of LED lighting and EV charging systems, supply of energy management and hydrogen fuel cell systems, and obtaining planner certification for ZEB (Net Zero Energy Building). We also take an active part in initiatives toward realizing high-efficiency smart energy systems and smart cities, in addition to developing broadband wireless sensor network systems.

Since FY 2023, which was the second year of the 5th Medium-Term Management Plan, we have set forth “Expansion of Green Energy Business” as one of the important growth drivers.

We will make corporate-wide effort on local government PPA, industrial power storage facilities, interconnection business, and hydrogen-related business, in addition to existing businesses related to solar power generation, EV battery chargers, and secondary cells, aiming for net sales of 30 billion yen from the green energy business in FY 2026.

Under the materiality theme “Realization of a decarbonized society through business activities,” our company is actively seizing various business opportunities related to decarbonization to achieve carbon neutrality. Since July 2022, we have participated in the “Hydrogen-Powered Future City” project by Fukushima Prefecture and Toyota Motor Corporation, constructing a hydrogen fuel cell power plant equipped with fixed FC generators*. In September 2023, the facility was completed, initiating operations as a demonstration facility aimed at “reducing CO2 emissions from offices and stores” and “BCP measures (utilizing power during disasters)” through the use of fixed FC generators, solar power generation, and secondary cells.

This demonstration leverages hydrogen’s capacity for largescale storage and long-term preservation for BCP measures, heightening the performance of secondary cells by storing maximum amounts of surplus solar-generated electricity. Additionally, it promotes regular hydrogen use to quickly address peak electricity demand caused by seasonal heating and cooling needs. Furthermore, by partially utilizing hydrogen produced at the Fukushima Hydrogen Energy Research Field (FH2R) of the New Energy and Industrial Technology Development Organization (NEDO), we aim to reduce CO2 emissions and promote local production and consumption of energy through solar power generation and clean hydrogen. Our company will use the insights gained from this demonstration to contribute to achieving carbon neutrality in offices and stores within Fukushima Prefecture using hydrogen. We will also accumulate expertise in the installation and use of fixed FC generators, proposing a societal implementation model combining solar power, secondary cells, hydrogen, and EV charging to expand the introduction of renewable energy, and contribute to realizing a decarbonized society.

*FC generators: Fuel cell generators

Installed FC generator

Under the materiality theme “Realization of a decarbonized society through business activities,” our company is actively seizing various business opportunities related to decarbonization to achieve carbon neutrality. Since July 2022, we have participated in the “Hydrogen-Powered Future City” project by Fukushima Prefecture and Toyota Motor Corporation, constructing a hydrogen fuel cell power plant equipped with fixed FC generators*. In September 2023, the facility was completed, initiating operations as a demonstration facility aimed at “reducing CO2 emissions from offices and stores” and “BCP measures (utilizing power during disasters)” through the use of fixed FC generators, solar power generation, and secondary cells.

This demonstration leverages hydrogen’s capacity for largescale storage and long-term preservation for BCP measures, heightening the performance of secondary cells by storing maximum amounts of surplus solar-generated electricity. Additionally, it promotes regular hydrogen use to quickly address peak electricity demand caused by seasonal heating and cooling needs. Furthermore, by partially utilizing hydrogen produced at the Fukushima Hydrogen Energy Research Field (FH2R) of the New Energy and Industrial Technology Development Organization (NEDO), we aim to reduce CO2 emissions and promote local production and consumption of energy through solar power generation and clean hydrogen. Our company will use the insights gained from this demonstration to contribute to achieving carbon neutrality in offices and stores within Fukushima Prefecture using hydrogen. We will also accumulate expertise in the installation and use of fixed FC generators, proposing a societal implementation model combining solar power, secondary cells, hydrogen, and EV charging to expand the introduction of renewable energy, and contribute to realizing a decarbonized society.

*This project was implemented with the support of the “FY 2022 Subsidy for Projects to Reduce Carbon Dioxide Emissions” and the “Subsidy for Promoting the Introduction of Charging and Refueling Infrastructure for the Promotion of Clean Energy Vehicles.”

We started the construction of a solar power generation plant in Fujinomiya City, Shizuoka Prefecture in September 2022. The plant started operation in March 2023, and started providing power to electricity retailers from April 2023.

This project not only builds and operates power generation facilities as the first green energy business in MIRAI (future) domains, but also significantly enhances our business domain by playing the role of a power generating company to gain lands, develop facilities, and sell power. Moving forward, we will work toward the enhancement of this business based on the technological competence that we cultivated through the construction of telecommunication facilities and total facilities, to solve problems of customers and society and to vitalize local communities.

Power generation plant

In Namie-machi, Fukushima Prefecture, the Group has been contributing to the renewal of the town through an EMS (Energy Management System) that bundles renewable energy generated locally by various devices including solar generators, wind generators, hydrogen-fuel cells, and solar heat collectors. From July 2022, the Group also started the construction of a green water-supply facility that is robust against natural disasters by combining solar power generation and secondary cells, and the facility started operation from March 2023. Power is supplied to water-supply machines such as well pumps and water-supply pumps from secondary cells that are charged from solar panels installed on roofs of houses. This water supply facility is also connected to the power grid of power companies, but this is for charging from the grid when power from solar power generation is cut off for a long time. It can continue to operate even in a disaster or power failure in which grid power is not available.

Also, even when solar power systems are not generating power, the system provides power from secondary cells for at least 72 hours, contributing to the safety and security of the local community.

In April 2023, MIRAIT-X Corporation, one of group companies, received Customer Service Excellence Award from TESLA for its excellent services in sales and construction that involves Powerwall, TESLA’s secondary cell system.

Moving forward, we will enhance sales in the green energy business by conducting the construction, maintenance, and operation of facilities that use secondary cells and accumulating expertise and know-how in this field.