Environment

Environmental Targets and Performance

Regarding environmental issues, Mitsubishi HC Capital Group set Environment Policy and promote our unique and advance business with conscious global environment to solve social issues. Especially, climate change exerts a grave impact on the global environment, including its ecosystems, as well as on people's lives and business activities. We believe climate change constitutes a major risk confronting the Mitsubishi HC Capital Group and, simultaneously, may also bring new business opportunities. Based on the point of view, we recognize the importance to disclose climate related financial information, we support for recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).
Our basic stance is to maintain a cautious approach when participating in or providing funds for projects that could result in major environmental burden, as we strive to live up to requests from society regarding the protection of the global environment and, therefore, aim to contribute to environmental sustainability. We also endeavor to play our part in the realization of international targets identified by the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement. To this end, Mitsubishi HC Capital will act in collaboration with other Group companies as well as a broad range of stakeholders, including government agencies, external business corporations, and industrial associations to realize society's transition with decarbonization.

We continuously disclose our information based on TCFD recommendations, we will expand the disclosure regarding climate change information, and emphasize to urge the environmental conscious efforts through customers' business and the efforts to reduce greenhouse gas (GHG) emissions of the Group.

Key Environmental Achievements

The Mitsubishi HC Capital Group is also engaged in ongoing efforts to reduce environmental burden through the management of its offices and buildings where its products and services are created.

Volume of Energy Consumption and GHG Emissions

Upper cells:The performance of former Mitsubishi UFJ Lease & Finance Group companies
Lower cells:The performance of former Hitachi Capital Group companies

Category / Energy source
(unit)
FYE3/2018 FYE3/2019 FYE3/2020 Notes
Scope1 Gasoline
(kl)
741 465 297 Single year target (non-consolidated basis):
A level of consumption on par with or below the average of the most recent three years
Achievement ratio:163%
589 569 329 Single year target:1% reduction from the previous fiscal year
Achievement ratio:158%
Light oil
(kl)
0 8 0  
40 153 315 Single year target:
1% reduction from the previous fiscal year
Achievement ratio:
-105%
Urban gas
(m3)
40,889 43,871 38,265  
386,892 283,812 340,131 Single year target:
1% reduction from the previous fiscal year
Achievement ratio:-21%
LPG
(m3)
933 148 0  
19 0 0 Single year target:
Maintaining 1% year-on-year reduction every year
Achievement ratio:100%
LNG
(m3)
6,215 5,922 5,354  
12,877 6,408 0 Single year target:
Maintaining 1% year-on-year reduction every year
Achievement ratio:201%
Calorific value
(attributable to Scope1)
Gasoline
(GJ)
25,633 16,063 10,276  
20,388 19,701 11,366  
Light oil
(GJ)
0 299 0  
1,364 5,791 11,923  
Urban gas
(GJ)
1,832 1,965 1,714  
17,333 12,715 15,238  
LPG
(GJ)
104 16 0  
2 0 0  
LNG
(GJ)
339 0 292  
703 350 0  
Total
(GJ)
27,907 18,344 12,282  
39,790 38,557 38,528  
CO2 emissions (attributable to Scope1)(t-CO2e) 2,016 1,888 820  
2,386 2,389 2,173 Single year target:
Maintaining 1% year-on-year reduction every year
Achievement ratio:192%
Scope2 Energy consumption
(kWh)
4,890,270 4,123,155 4,294,672 Single year target:
A level of consumption on par with or below the average of the most recent three years
Achievement ratio:192%
9,717,773 9,278,931 8,874,748 Single year target (non-consolidated basis):
Maintaining 1% year-on-year reduction every year
Achievement ratio:197%
Purchased steam, hot water, and cooling water
(MJ)
4,482 4,421 4,241  
0 0 0  
Calorific value (attributable to Scope2)
(GJ)
53,238 45,528 45,988  
96,886 92,511 89,552  
CO2 emissions (attributable to Scope2 / location basis)
(t-CO2e)
2,784 2,546 2,210  
4,936 4,405 4,394  
CO2 emissions (attributable to Scope2 / market basis)
(t-CO2e)
2,757 2,324 2,336  
4,909 4,712 4,581  
CO2 absorbed via forestation *1
(t-CO2e)
0 0 0  
0 -22 -22  
Total CO2 emissions (market basis) 2,757 2,324 2,336  
4,909 4,691 4,559  
Data coverage ratio (in comparison with number of employees) 99.7% 97.3% 97.0%  

Notes:

  • Conversion factors by energy consumption volume are calculated based on the volume of GHG emissions by using global warming potential set forth in reports issued by Intergovernmental Panel on Climate Change (IPCC).
  • The above figures pertain to the Mitsubishi HC Capital Group (consolidated basis). Data coverage ratio is calculated based on the total number of employees who belonged to the Mitsubishi UFJ Lease & Finance Group and the Hitachi Capital Group.
  • Figures indicate the volume of CO2 absorbed by forests as certified by the Tokyo Metropolitan Government's Tokyo Forest Improvement Contribution Certification System (from fiscal 2019 to fiscal 2028).

CO2 Emissions from Supply Chains

Upper cells:The performance of former Mitsubishi UFJ Lease & Finance Group companies
Lower cells:The performance of former Hitachi Capital Group companies

(Unit:t-CO2e)

Scope / Category FYE3/2018 FYE3/2019 FYE3/2020 Notes
Scope1 total 2,016 1,888 820  
2,386 2,389 2,173  
Scope2 total (market basis)*1 2,757 2,324 2,336  
4,909 4,691 4,559  
Scope3 Category1 Purchased goods and services 11,185 4,167 4,653  
4,312 4,380 3,191 Qualitative target:striving to go paperless while curbing emissions associated with purchased goods and services with the cooperation of suppliers striving to improve their offerings
Category2 Capital goods 426 531 490  
53,260 43,163 39,585 Qualitative target:Striving to reduce emissions with the cooperation of facility supplier
Category3 Fuel and energy related activities not included in Scope1 or Scope2 261 165 29  
236 245 181  
Category5 Waste generated in operations 0 0 0  
704 169 73  
Category6 Business travel 418 394 0  
723 672 48  
Category7 Employee commuting 635 646 1,922  
1,906 1,933 1,140 Qualitative target:
Striving to reduce emissions via the promotion of remote working in line with work style reforms
Category15 Investment
(PFI)
0 25 0  
0 223 0  
Scope3 total 12,924 5,929 7,093  
61,141 50,786 44,218  
Total 17,685 9,946 10,250  
70,306 57,865 50,950  

Notes:

  • Category 13 (downstream leased assets) is not calculated, as this category is supposed to be selected by customers, making it difficult for the Group to exert an impact on the volume of or reduction in emissions and gathering necessary data is therefore inherently hard.
  • The above figures pertain to the Mitsubishi HC Capital Group (consolidated basis). Data coverage ratios for Category 3 and Category 5 are calculated in a same manner as Scope1 and Scope2
  • Excluding the volume of CO2 absorbed via forestation.

Accounting Methods of CO2 Emissions from Supply Chains

Category Accounting methods
Activity data Emission factor
Category1 Purchased goods and services
  • Use of paper
  • Business outsourcing fees
Emission factor based on inter industry table
Category2 Capital goods
  • Fiscal capital goods price of equipment related to solar / wind power generation system
  • Fiscal capital goods price of other internal office equipment
Emission factor for capital goods price
Category3 Fuel and energy related activities not included in Scope1 or Scope2
  • Volume of energy usage
CFP Communication Program Basic Database
Category5 Waste generated in operations
  • Volume of waste per category / treatment
Emission factor based on category of waste and treatment method
Category6 Business travel
  • The number of employees
Emission factor based on the number of employees
Category7 Employee commuting
  • The number of / total working days of employees in each region
Emission factor of employees total working hours based on commuting area and working style
Category15 Investment (PFI in municipalities and public organizations and financing for real estate businesses)
  • Floor areas of the invested building
Emission factor depends on the building use / area

Volume of Paper Use

Upper cells:The performance of former Mitsubishi UFJ Lease & Finance Group companies
Lower cells:The performance of former Hitachi Capital Group companies

(Unit:kg)

Item FYE3/2018 FYE3/2019 FYE3/2020 Notes
Volume of paper use 45,981 52,914 24,209  
3,789,574 118,857 633,593 Qualitative target for reduction in CO2 emissions from supply chains:
Promoting paperless operations
Data coverage ratio 78.0% 75.8% 76.2%  
  • Data coverage ratio is calculated based on the total number of employees who belonged to the Mitsubishi UFJ Lease & Finance Group and the Hitachi Capital Group.

Output from Renewable Energy Generation Facilities in Operation

Upper cells:The performance of former Mitsubishi UFJ Lease & Finance Group companies
Lower cells:The performance of former Hitachi Capital Group companies

(Unit:MW)

Item FYE3/2020
Solar 771
136
Wind 41
187
Total 813
323
  • Data calculated for managerial accounting purposes, including the balance of equity-method investment. The above figures exclude financing projects and comprise output from the solar and wind power generation business, solar power generation under the Power Purchase Agreement (PPA) scheme, and the Virtual Power Plant (VPP) verification business.

Environmental Accountings

Environmental Costs

Upper cells:The performance of former Mitsubishi UFJ Lease & Finance Group companies
Lower cells:The performance of former Hitachi Capital Group companies

(Unit:Millions of yen)

Category Efforts FYE3/2020
Investment Costs
Business area costs Greenhouse gas emission reduction and waste reduction 0.0 63
0.0 1.9
Upstream and downstream costs Additional costs required for providing environmentally friendly products and services, green procurement, and recycling 0.0 499
45,439 375.4
Costs of management activities Environmental data management and collation, maintenance and management of the environmental management system (EMS), environmental education, and dissemination of information (including the redefinition of policies and targets due to business integration) 0.0 16
2.0 3.5
Costs of social activities Cleaning areas around business offices and community environmental conservation activities 0.0 0.0
0.0 3.0

Notes:

  • The above figures pertain to Mitsubishi HC Capital Inc. (non-consolidated basis)
  • R&D expenses are not included in light of the nature of operations listed above as they involve no research or development activities.
  • In fiscal 2020, there were no environmental damage costs.

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