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.
- CDP
- Previously known as the Carbon Disclosure Project, CDP is a non-profit organization based in London and run jointly by multiple major institutional investors. CDP issues questionnaires targeting businesses and asking them for information disclosure regarding their environmental strategies, the volume of greenhouse gas (GHG) emissions and other factors. Input from respondents is compiled, analyzed, and evaluated by CDP and then disclosed to investors to aid in their investment decisions.
- Green Value Chain Platform
- TCFD
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 |
|
Emission factor based on inter industry table |
| Category2 | Capital goods |
|
Emission factor for capital goods price |
| Category3 | Fuel and energy related activities not included in Scope1 or Scope2 |
|
CFP Communication Program Basic Database |
| Category5 | Waste generated in operations |
|
Emission factor based on category of waste and treatment method |
| Category6 | Business travel |
|
Emission factor based on the number of employees |
| Category7 | Employee commuting |
|
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) |
|
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.