Environment

Environmental Targets and Performance

The Company promotes its unique and advance business with consciousness of 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. To clearly specify our policy, we are supporting recommendations by the Task Force on Climate-related Financial Disclosure (TCFD).
Furthermore, recognizing the importance to disclose climate-related financial information, 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, we 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 will expand disclosure regarding climate change information based on TCFD recommendations, and emphasize to urge the environmental conscious efforts through customers' business and the efforts to reduce greenhouse gas emissions of the Group.
We have established an Environmental Policy to facilitate business activities harmonizing with environment and society.

Key Environmental Achievements

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)
FYE3/2019 FYE3/2020 FYE3/2021 FYE3/2022 Notes
Scope1 Gasoline
(kl)
741 465 297 744 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: 129%
589 569 444
Light oil
(kl)
4 8 4 108  
36 98 260
Kerosene
(kl)
0 0 0 29  
0 55 51
Urban gas
(m3)
40,889 43,871 38,265 394,151  
386,892 283,812 340,131
LPG
(m3)
933 148 0 0  
19 0 0
LNG
(m3)
6,215 5,922 5,354 4,078  
12,877 6,408 0
Calorific value
(attributable to Scope1)
Gasoline
(GJ)
20,880 16,063 10,276 25,733  
25,141 19,701 16,474
Light oil
(GJ)
421 721 421 10,665  
3,245 8,832 23,433
Kerosene
(GJ)
0 0 0 1,060  
0 2,010 1,864
Urban gas
(GJ)
1,832 1,965 1,714 17,658  
17,333 12,715 15,238
LPG
(GJ)
104 16 0 0  
2 0 0
LNG
(GJ)
339 323 292 223  
703 350 0
Total
(GJ)
23.575 19.089 12,704 55,340  
46,424 43,608 57,009
CO2 emissions (attributable to Scope1)(t-CO2e) 2,016 1,888 820 3,448  
2,386 2,389 2,516
Scope2 Energy consumption
(kWh)
4,890,270 4,123,155 4,294,672 14,144,909 Single year target:
A level of consumption on par with or below the average of the most recent three years
Achievement ratio:115%
9,717,773 9,278,931 8,874,748
- Renewable energy consumption
(kwh)
- - - 3,308,174  
- - -
Purchased steam, hot water, and cooling water
(MJ)
4,482 4,421 4,241 10,600,646  
0 0 0
Calorific value (attributable to Scope2)
(GJ)
53,238 45,528 45,988 151,625  
96,886 92,511 89,552
CO2 emissions (attributable to Scope2 / location basis)
(t-CO2e)
2,784 2,546 2,210 7,869  
4,936 4,405 4,394
CO2 emissions (attributable to Scope2 / market basis)
(t-CO2e)
2,757 2,324 2,336 5,207  
4,909 4,712 4,581
CO2 absorbed via forestation *1
(t-CO2e)
0 0 0 21  
0 21 21
Data coverage ratio (in comparison with number of employees) 99.7% 97.3% 99.5% 99.7%  

Notes:

  • Per the calculation rules of the GHG Protocol, conversion factors by energy consumption volume are calculated based on the volume of GHG emissions by using global warming potential values set forth in reports issued by the IPCC (Intergovernmental Panel on Climate Change).
  • The above figures pertain to the Mitsubishi HC Capital Group (consolidated basis). The data coverage ratio is calculated based on the total number of employees (for FYE3/2019 to FYE3/2021 the sum of the total number of employees of the former Mitsubishi UFJ Lease & Finance Group and the former 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 FYE3/2019 FYE3/2020 FYE3/2021 FYE3/2022
Scope1 total 2,016 1,888 820 3,448
2,386 2,389 2,173
Scope2 total (market basis) 2,757 2,324 2,336 5,207
4,909 4,712 4,581
Scope3 Category1 Purchased goods and services 11,185 4,167 4,653 9,295
4,312 4,380 3,191
Category2 Capital goods 426 531 490 4,909
53,260 43,163 39,585
Category3 Fuel and energy related activities not included in Scope1 or Scope2 740 637 516 1,464
1,280 1,121 1,156
Category5 Waste generated in operations 0 0 0 118
704 169 73
Category6 Business travel 418 394 0 286
723 672 48
Category7 Employee commuting 635 646 1,922 2,492
1,906 1,933 1,140
Category15 Investment
(PFI)
0 25 0 0
0 223 0
Scope3 total 13,404 6,400 7,581 18,565
62,185 51,661 45,193
Total 18,177 10,612 10,737 27,220
69,480 58,762 51,947

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

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
IDEA v2.3 (for calculating supply chain greenhouse gas emissions)
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 based 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 FYE3/2019 FYE3/2020 FYE3/2021 FYE3/2022
Volume of paper use 45,981 52,914 24,209 792,058
3,789,574 118,857 633,593
Data coverage ratio 78.0% 75.8% 76.2% 80.3%
  • 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 FYE3/2021 FYE3/2022
Solar 771 907
136
Wind 41 298
187
Total 813 1,205
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

(Unit:Millions of yen)

Category Efforts FYE3/2022
Investment Costs
Business area costs Greenhouse gas emission reduction and waste reduction 0.0 1.9
Upstream and downstream costs Additional costs required for providing environmentally friendly products and services, green procurement, and recycling 31,300.0 1,012.5
Costs of management activities Environmental data management and aggregation, maintenance and management of the environmental management system (EMS), environmental education, and dissemination of information 2.6 41.9
Costs of social activities Cleaning areas around business offices and community environmental conservation activities 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 2021, there were no environmental damage costs.

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