In Thought and Action: Our Determination to Tackle Climate Change

Our climate action is founded on our Basic Policy on the Environment, which we updated in 2023 to better guide our quest to carry out our Group Purpose, “sustainable growth for more companies.”

Governance Framework

At the Funai Soken Consulting Group, the executive vice president is in charge of sustainability, and final responsibility lies with the CEO. The Sustainability Committee, established in 2021 as an advisory body to the Board of Directors, sets sustainability (defined to include climate change action) targets, monitors progress, and evaluates outcomes. The committee aims to meet three times a year, and the chairperson is appointed by the board. Environmental risks deemed in need of action are reported to the Board of Directors, and necessary measures are determined and implemented.

Business Strategy in the Age of Climate Change

To achieve the Funai Soken Consulting Group Purpose—sustainable growth for more companies—we will endeavor to expand our business so as to provide a full spectrum of solutions for SMEs and mid-scale companies seamlessly, and will seek to realize the Group Vision of becoming the foremost provider of digital and comprehensive consulting solutions for mid-scale and SME clients.
Based on our Basic Policy on the Environment, which stipulates that we use our business as a vehicle for good, we strive to make a real reduction in environmental impact, not only within our business activities, but also by using out consulting and other services as a means for working together with clients to address climate change, prevent environmental pollution, and promote recycling.

• Seminars on new business models for the decarbonization market age
  Funai Consulting holds industry-specific seminars to help SMEs achieve a carbon-free business. Attendees hear up-to-date information on industry trends arising from the shift toward a low-carbon society, and highly detailed case studies of successful implementation of solutions.

  

• Regular Study Workshops to Promote Carbon Neutrality
  In August 2022, Funai Consulting launched a management workshop focused on becoming carbon-free. Here, mid-scale company and SME proprietors and sustainability managers can learn about CO2 emission measurement and reduction methods from around Japan through guest speakers, member forums, as well as the latest trends from expert consultants.

  

• Check Out Our Book on Carbon Neutrality in Business Management
  In December 2022, Funai Consulting published a book on businesses can decarbonize. Aimed at mid-scale company and SME proprietors and sustainability managers, the book shares helpful knowhow, specific approaches, case studies, and explains the significance of different decarbonization actions.

  

  Green Transformation: How Mid-scale Companies & SMEs Can Decarbonize & Maximize Profits
  Edited by the Funai Consulting Inc., Carbon Neutrality Consulting Unit

Seminar: Carbon Neutrality in Logistics
Funai Soken Logistics holds seminars for freight shippers and logistics-industry subsidiaries to promote carbon-free business in the logistics industry. Attendees hear about the main challenges to carbon neutrality in logistics, and ways to achieve progress toward it.

Seminar: Carbon Neutrality in Logistics
What You Should Be Doing to Decarbonize in 2022

Ongoing Initiatives

In addition to net-zero energy housing and other solutions tailored for clients’ industries, we are working with financial institutions to offer a decarbonization diagnosis service as a means of helping SMEs achieve carbon-free business. We aim to use decarbonization diagnosis as a launch pad for further solutions, such as measurement of greenhouse gas emissions (in accordance with the Greenhouse Gas Protocol’s three-scope system) and creating a roadmap to carbon-free business based on an emissions database and setting out real workplace actions. Also, as part of our management workshops, we intend to establish a new membership-based organization for carbon-free business. At present, the road to carbon-free business is a long and arduous one for mid-scale companies and SMEs, but we are convinced that encouraging them to make this contribution to the public good will surely lead to increased profitability and corporate value.

Tackling Climate Change

Based on our Basic Policy on the Environment, which requires us to disclose information and engage in dialogue, we will strive for continual progress in our environmental initiatives through information disclosure and dialogue with stakeholders.

Management Structure

We recognize the importance of identifying, evaluating, and managing business risks affecting corporate management and business continuity, and the Risk Management Committee implements appropriate measures to deal with these. Meanwhile, the Sustainability Committee is responsible for climate change risk management, and works closely with the Risk Management Committee.
The Sustainability Committee receives reports from the ESG Promotion Office regarding the results of environmental risk assessments and other risk analyses carried out by the Environmental Management Group, both periodically and in response to internal and external environmental changes, and makes recommendations to the Board of Directors regarding those risks requiring action. Environmental risks deemed to require action are shared with the Risk Management Committee, and the Sustainability Promotion Office, which serves as coordinator, reports to the Board of Directors. The board, having considered the connection with other risks, then decides on action to be taken.

Sustainability Targets

The group’s Mid-Range Business Plan (2023-2025) stipulates a sustainability goal of reducing greenhouse gas emissions by 50% compared with 2019 levels.

Greenhouse Gas Emission Reductions: How We’re Doing So Far

＜Scope2 Emission Calculations＞
Location-based calculation of emissions were made using the national averages published by the Japanese Ministry of the Environment. Emissions of our Shanghai office are based on IGES data from 2019.
Market-based calculation of emissions was made using the adjusted CO2 emission factors of the energy retailers our various business places buy electricity from. In the case of our Shanghai office, adjusted CO2 emission factors were not available from Shanghai Electric Power, so calculations are instead based on IGES data from 2019.

Sourcing Renewable Energy

In June 2021, we switched our power supply contract for our Tokyo office to TEPCO’s Aqua Premium plan, which provides renewable energy electricity generated at hydroelectric power plants and is certified 100% non-FIT and non-fossil-fuel.

Our Policies for Reducing Emissions

• Reducing Scope 2 Emissions
  Electricity Consumption

  As part of our quest to reduce emissions, we will switch our power supply contracts with various suppliers to renewable energy plans. With a view to future membership of the RE100 (under the RE Action initiative for smaller-scale users), we will use only those plans with non-fossil certification with additionality and tracking (limited to renewable energy power plants within 15 years of construction).

• Reducing Scope 3 Category 1 Emissions
  Copy Paper, Seminar DM Printing and Postage

  Our efforts to make operations paperless continue, and digitalization is a useful means to that end. Mid-to-long term, we will continue to look for more environmentally friendly printing, posting, and transportation options. We will also calculate emissions based on primary data, rather than on a per-unit basis.

• Reducing Scope 3 Category 6 Emissions
  Business Travel at Funai Consulting

  The rapid update of remote work in 2020 in the face of Covid caused a year-on-year drop in business travel. However, given the resurgence in business travel following the return to near-normalcy, we intend to base our course of action on newer data from 2022 onward.

Emission Reduction Targets and Plans

*We are working on Scope 3 emissions, and will publish these in future.