E(Environment)

Environment

Environment

Main target management indicators (KPIs)

The Companyʼs CO2 emissions reduction rate
FY2050 target

At Mitsuuroko Group, we are developing a variety of businesses to realize a low-carbon society.
By expanding our mainstay Energy Solutions Business and the Power & Electricity Business, which

Carbon neutral*

could become our next pillar, we will contribute to the realization of a low-carbon society.
We believe that this is the role we can play as a corporate citizen.
Mitsuuroko Group will continue to help each and every customer lead more fulfilling lifestyles
while maintaining close stewardship of natural resources and the environment, for the sake of thechildren who will lead the next generation and the Earth.

Customersʼ CO2 emissions reduction rate
FY2050 target

Carbon neutral*
Environmental management

22

Environmental risk management

24

Climate change initiatives

19

27

Response to climate change

38

Promotion of resource cycle40

Supply chain* Carbon neutral: Virtually zero emissions, calculated by subtracting the amount absorbed by plants, etc. from CO2 emissions

20

SUSTAINABILITY REPORT 2022

21

Mitsuuroko Group Holdings Co., Ltd.

INDEXEnvironmental management/Environmental risk management

E

Environment

Environmental management

Environment

Environmental risk management
Response to climate change and natural disasters

Basic approach
As a corporate group that is responsible for the supply of energy, Mitsuuroko Group works to appropriately
identify the impact that its business activities have on climate change and natural capital.
Furthermore, along with “environmental preservation” as set forth in the Charter of Corporate Ethics, theGroup is engaging in initiatives together to realize a sustainable society.

Charter of Corporate Ethics (extract)

Mitsuuroko Group will be aware that it receives various benefits from the Earth, including theresources necessary for its business activities, and that it is the Groupʼs responsibility to preserve
the global environment in a better state.

Environmental management promotion system

Mitsuuroko Group Holdings Co., Ltd.

and targets (KPIs) for addressing climate change.
Additionally, during the Board of Directors' regularmonthly meetings, the Director and Group CIDO
provide updates on the progress of initiatives aimed ataddressing climate change policies and meeting Key
Performance Indicators (KPIs). These updates areincluded as a vital component of the corporate
governance report, and the Board of Directors oversees
them accordingly.

Roles

2

The Group CIDO reports to the Board of
Directors on risks and opportunities, theirstatus, and progress of KPIs.
If new risks or events that may impact
the achievement of KPIs are discovered,they are reported to the Risk Management
Committee.

3

The Group CIDO works together with thedepartment in charge of Legal & Secretary,
Inclusion & Diversity, and Finance & Control to
extract and evaluate risks and opportunities,
and monitor progress of KPIs.

4

The Risk Management Committee evaluates
and analyzes such risks and events, andreports to the Board of Directors.

5

The KPI promotion departments at eachbusiness and Group company report on thestatus of initiatives and progress of KPIs via
corporate governance reports to the Board of
Directors.

Board of Directors 1

Representative Director andChief Executive Officer

3

Legal & Secretary
Inclusion & Diversity

Risk Management
Committee 4

Director andGroup CIDO 2* Chief Inclusion &Diversity Officer

While LPG is a form of distributed energy that is easy
to install and restore even when natural disasters linked
to climate change occur, such as torrential downpoursand storm surges, it is possible for filling stations to
be damaged and for its transportation to be delayedor slowed. In preparation for emergencies, we have
implemented disaster prevention measures at facilities
such as filling stations and have also formulated abusiness continuity plan (BCP). The LPG supply
network is rationally designed to ensure a steady supplyof LPG to every corner of the country in times of peaceand even in times of disaster.
In addition, while we continue to upgrade ouroperations and make them efficient at Mitsuuroko
Administration Center (Saitama-shi, Saitama), a sharedservices division that consolidates the operations of theGroup companies, which the Nagano Office of
Mitsuuroko Administration Center opened in order toavoid the risk of interruption in our operations whenstruck by disaster, etc. due to centralization, and toestablish a system to ensure the continuation ofoperations in the event of an emergency. We haveestablished a system that allows us to shift to predetermined operations in an emergency by activating
the BCP program if it becomes impossible to carry out
operations in Saitama-shi.

Water risk initiatives
Basic approach

Initiatives to reduce water usage

We consider water risk to be an important management
issue and are taking actions such as water stress/riskstudies, and water hazards and water management.

1

Human Capital &Engagement
Sustainability
Health-focused
Management(Wellbeing & Productivity)

Finance & Control

KPI promotion departments at each business and Group company 5

Using the WRI Aqueduct, an international indicator, we
comprehensively analyzed and evaluated current andfuture risks (water demand, water source security, water
damage, etc.). As a result, we confirmed that there isno significant water stress or risk in the Groupʼs main
facilities as of now.

Water consumption, water discharge
volume, and water quality control
In order to use water resources sustainably, we monitor
water consumption and strive to save water, and also
implement appropriate wastewater management. In
FY2021, there were no violations of standards andregulations pertaining to water discharge.

Situation of water resources utilization
In FY2021, Group-wide use of domestic freshwater
resources (water supply and wells) totaled 6,454
thousand m3, and the amount discharged tounderground and rivers (excluding sewage) was 647
thousand m3.

Preserving water resources through the use ofbusiness cards made primarily from limestone
From the viewpoint of conserving forests and water
resources, the Group has adopted the use of businesscards made with “LIMEX,” a material derived primarily
from limestone. Limestone exists in abundance
throughout the world and is a mineral resource which
Japan is completely self-sufficient in and can obtainat a low cost. By adopting limestone as the mainmaterial for our business cards, we are contributing to
the preservation of forests and water resources, which
are essential for the production of paper. This initiative
saves 10 liters of water per card box of businesscards (100 cards). When converted to the number ofbusiness cards used by the Group, this equates to23,230 liters of water preserved in a year.

Implementation of water stress/riskstudies

Climate change-related governance and risk management system

The Board of Directors identifies material
issues concerning risks and opportunities
related to climate change, determines thepolicies and targets (KPIs) for addressing
climate change, and supervises them.

that are helpful for peopleʼs lifestyles today and for the
global environment of the next generation. Furthermore,through the creation of renewable energy, we areworking to contribute to the improvement of the global
environment through reducing CO2 emissions andimprove energy self-sufficiency.

2

Water-saving initiatives
In the wellness business, we are working to reducebathing water used at “Yokohama Tennen Onsen SPA
EAS” through the use of a recovery tank (water supply
and natural spring water) timer control and watersaving devices installed in all shower heads. We arealso reducing other water used at the facility throughmeasures such as the introduction of water-saving
toilets, and employees are also making efforts to savewater.
We are also promoting the introduction of water-saving
showers and toilets in rental apartments owned by ourreal estate business.

22

SUSTAINABILITY REPORT 2022

The Company recognizes climate change as importantmanagement issues for the preservation of the global
environment, and the Board of Directors determines
policies for addressing climate change and oversees
their status. Specifically, the Director and Group CIDO
reports periodically (at least once a year) to the Board of
Directors on the Groupʼs risks and opportunities related
to climate change as well as their status. Based onthese reports, the Board of Directors determines policies

1

The Group is developing a variety of businesses
to realize a low-carbon society. LPG is a form of
distributed energy that is environmentally friendly and isportable. We are also promoting the spread of energy
products, such as solar power generation systems,
lithium-ion batteries, and residential-use fuel cells,

Response to natural disasters

Contribute to the preservation of the global environment and the creation of aprosperous and livable society

21

Climate change initiatives

Environmental risk management/Climate change initiatives

E

Environment

Environment

Environmental risk management

Management of chemicals and contaminants
Since our operations have little relevance to emissionsof air pollutants such as VOCs, NOx, and SOx, we do
not perform measurements for these. Waste, including
hazardous waste, is properly disposed of throughspecialized waste disposal companies in accordancewith laws, regulations, and other rules. In FY2021, there

were no penalties or fines related to environmental
laws and regulations (Air Pollution Control Act,
Water Pollution Prevention Act, Soil Contamination
Countermeasures Act, Waste Management andPublic Cleansing Act, etc.) due to outflows or excess
emissions of environmental pollutants.

Response to soil contamination
In the event that pollution is detected at LPG filling
stations and gasoline service stations, while we reportsuch incidents to the relevant government agencies andactively disclosing information to the public, such as
through explanations to residents within the vicinity orpress releases, we work to control soil contamination.
In accordance with the state of the pollution, we employ
measures such as excavation, removal, and paving
to prevent contamination from spreading or entering
ground water.

Climate change initiatives
Basic approach
In terms of climate change initiatives, as an entity responsible for stable supply in regions, Mitsuuroko
Group aims to harness its comprehensive power embedded in these regions to maintain and improve supply
infrastructure to ensure supply is also available during emergencies, while implementing various initiatives
that align with the diversification of customer needs and desire for choices.
All of Mitsuuroko Group is engaging in climate change initiatives to achieve a sustainable society throughreducing CO2 emissions, promoting renewable energy, and reducing fuel consumption. For customers who
are focused on reducing CO2, we offer environmentally friendly electricity plans that stipulate the use ofrenewable energy. In addition, we utilize monitoring information of remote automatic meter readings, andprovide a delivery operation streamlining solution that proposes the optimal delivery plans.

TCFD
Mitsuuroko Groupʼs climate change initiatives

24* The TCFD consortium:
A consortium established in May 2019 and led by the private
sector to discuss effective disclosure of information by companies
in response to climate change and measures to link the disclosed
information to appropriate investment decisions by financial
institutions and other parties. The Ministry of Economy, Trade andIndustry, the Financial Services Agency, and the Ministry of theEnvironment participate as observers.

Governance and risk management
The Company recognizes climate change as animportant management issue, and the Board of
Directors determines policies for addressing climatechange and oversees their status.
Specifically, the Director and Group CIDO works
together with Inclusion & Diversity, Finance & Control,and Legal & Secretary to analyze materiality, extract andevaluate climate change-related risks and opportunities,
and identify material issues concerning such risks.
In addition, the Director and Group CIDO reports
periodically (at least once a year) to the Board of
Directors on the Groupʼs risks and opportunities
related to climate change as well as their status. Basedon these reports, the Board of Directors determines
policies and targets (KPIs) for addressing climatechange.
For KPIs determined, each department in charge of
KPI promotion reports on the progress in a corporate
governance report that is submitted monthly to Finance& Control, and Inclusion & Diversity and Finance &Control monitor the progress.
At regular monthly meetings of the Board of Directors,
the Director and Group CIDO reports on the status
of initiatives based on the policies and targets (KPIs)
progress as one of the items in a corporate governancereport, and the Board of Directors supervises
accordingly.
If new risks or events that may impact the achievementof KPIs are discovered, each department reports onthem to the Director and Group CIDO. The Director
and Group CIDO then reports to the Risk Management
Committee, which is chaired by the Representative
Director.
The Risk Management Committee evaluates andanalyzes such risks and events, reporting them tothe Board of Directors. Based on these reports, theBoard of Directors identifies new material issues, thendetermines policies and targets (KPIs), and supervises
them accordingly.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

23

Mitsuuroko Group considers the TCFD
recommendations an effective framework for disclosing
information and engaging in dialogue with stakeholders
in regard to climate change issues. We announce ourendorsement of the TCFD recommendations, and inaccordance with the recommendations, we disclose
information on the impact of climate change on theGroupʼs business activities and the measures we aretaking in response. The Company also participates in
the TCFD Consortium*, which discusses initiatives for
information disclosure on climate change response inaccordance with the TCFD recommendations.

Climate change initiatives

E

Environment

Climate change initiatives

Environment

FY2021 initiatives to reduce CO2 emissions

Climate change-related governance and risk management system
Roles
1

The Board of Directors identifies material
issues concerning risks and opportunities
related to climate change, determines thepolicies and targets (KPIs) for addressing
climate change, and supervises them.

2

The Group CIDO reports to the Board of
Directors on risks and opportunities, theirstatus, and progress of KPIs.
If new risks or events that may impact
the achievement of KPIs are discovered,they are reported to the Risk Management
Committee.

3

The Group CIDO works together with Legal &Secretary, Inclusion & Diversity, and Finance& Control to extract and evaluate risks andopportunities, and monitor progress of KPIs.

4

The Risk Management Committee evaluates
and analyzes such risks and events, andreports to the Board of Directors.

5

The KPI promotion departments at eachbusiness and Group company report on thestatus of initiatives and progress of KPIs via
corporate governance reports to the Board of
Directors.

Representative Director andChief Executive Officer

Board of Directors 1

3

Legal & Secretary
Inclusion & Diversity

Risk Management
Committee 4

Director andGroup CIDO 2* Chief Inclusion &Diversity Officer

Human Capital &Engagement
Sustainability
Health-focused
Management(Wellbeing & Productivity)

Finance & Control

KPI promotion departments at each business and Group company 5

In the Energy Solutions Business, we have promoted
the expansion of our meter readings service and delivery
operation streamlining service powered by SmartOWL®,
and transitioning to high-efficiency equipment forour existing customers. We are also improving fuelefficiency during deliveries by eliminating complicateddeliveries, and shortening travel distances and reducing
fuel consumption through eco-driving activities.
In the Power & Electricity Business, we are expanding
the provision of the Mitsuuroko Green Plan
In the Foods Business, we are promoting the sale oflabel-less PET bottles and the elimination of plastic (useof paper straws and wooden muddlers).
In the Living & Wellness Business, we worked to expand
renewable energy electricity contracts in common areasof owned properties and switched to energy-saving

Opportunity/
Scenario Category Classificationsof factors
Risk

Administrative
policies andlaws

Opportunities

Risk

Below Transition
2℃
risk
Market andtechnology

Indicators and targets
The Groupʼs GHG emissions in FY2021 wereapproximately 5.99 million t-CO2eq. 99.4% of theemissions were Scope 3, of which 48.8% was attributed
to customer gas, electricity, and product usage and 40.3%

was attributed to related procurement operations. The
Groupʼs Scope 1 and Scope 2 emissions were attributed
to vehicle operation (gas delivery vehicles and companycars) and gas and electricity usage within the Company.

Opportunities

Risk

Greenhouse gas (GHG)
emissions

Percentage

Scope 1

Gas delivery vehicles and company cars

★ 17,049 t-CO2

0.3%

Scope 2The Companyʼs electricity usage★ 16,972 t-CO2

0.3%

Scope 3

Energy procurement and customer usage★ 5,958,716 t-CO2eq

99.4%

CO2 emissions reduction
targetCarbon neutrality by 2050

★ marked indicators are independently assured by KPMG AZSA Sustainability Co., Ltd. For Scope 3 emissions, the Companyʼs category 1 (★596,251
t-CO2eq), category 3 (★2,415,898 t-CO2eq), category 4 (★19,676 t-CO2eq), and category 11 (★2,926,890 t-CO2) emissions have each been assured aswell as the total of these four categories. (See pages 27–28 for information on the calculation standard)

environmentally friendly energy sources we handle.
In addition, to contribute to the reduction of CO2
emissions in our supply chain (Scope 3), we are
expanding our meter readings service and delivery
operation streamlining services powered by
SmartOWL®, transitioning to high-efficiency equipment(ECO FEEL, fuel conversion systems, ECO-JOZU, ECO
ONE), and promoting the Mitsuuroko Green Plan.

Carbon tax (for developed countries
including Japan) is projected to rise to
US$120/t-CO2 by 2030 and US$200/t-CO2
by 2050*2

4℃

Physical
risk

Acute

Risk

Direction of response and measures• Carbon neutrality by 2050
• Participate in TSEʼs carbon credit market demonstration
project• Automate remotely obtained data meter readings for LPG• Reduce truck operating time and travel distance bystreamlining delivery operations• Promote eco-driving activities• Change to EVs for all company cars by around 2030
• Increase amount of renewable energy and environmentallyfriendly energy sources handled

Increase sales in the Power & Electricity Businessdue to increased demand for renewable energy
Renewable energy is expected to comprise
58% of Japanʼs energy mix by 2050*2

Decrease in sales for LPG and petroleum
products• Spread natural energy and promote the installation ofenergy-saving housing equipment• Sell natural energy not dependent on traditional fossil
fuels and other new energy equipment such as storage
batteries, and provide services such as the “Mitsuuroko
Green Plan”

Petroleum demand in Japan is expected tofall by 78% by 2050 compared to 2021*2

Reduction of future in-house power
generation costs if the Company
establishes plants that take advantage
of developments in renewable energy
production technologies
Solar power generation costs are expected
to drop by 50% by 2050 compared to2021*2

Breakdown by Scope

To reduce the Companyʼs direct CO2 emissions (Scope 1
and Scope 2), the Group is automating remotely obtained
data meter readings for LPG and working to streamline
delivery operations (reduction of truck operating time
and travel distance), eliminate complicated deliveries,
and promote eco-driving activities. We are alsochanging to electric vehicles (EVs) for company carsand increasing the amount of renewable energy and

Risk

Risks and opportunities
Tightening of fossil fuel regulations andoperating cost increases due to carbon
taxes (Estimated cost increase: approx.
¥900 million/year*1)• Establish own plants that utilize the newest developments
in renewable energy production technologies and increaseamount of renewable energy sources handled• Utilize PPA model*3 and increase solar power generation• Focus on popularizing EVs and promote the developmentof 100% renewable energy EV charging infrastructure• Expand the installation of storage batteries and strengthen
ability to adjust electricity supply and demand• Focus on transitioning from FIT system to FIP system*4and launch renewable energy aggregation business

Increase in costs to meet the rising
expectations of investors and the market
in respect to corporate climate change
initiatives(Financing costs and communication costs)• Actively work to meet the changing expectations ofinvestors and the market• Proactively engage in ESG-related initiatives and enhance
relevant information disclosures• Focus on sales of new energy equipment, including highefficiency water heaters, distributed demand appliance
ENE-FARM, solar power and storage batteries, tocontribute to reducing customersʼ CO2 emissions

Decrease in sales and increase inrecovery costs due to damage to plants
and facilities, the supply chain, and powercompanies as a result of heavy rain andfloods• Produce disaster manuals and conduct security training,safety confirmation drills, and evacuation drills• Implement disaster response measures at LPG filling
stations (disaster prevention nets, lashing belts, etc.) andconsumersʼ homes (double chains, tension-type highpressure hoses, etc.)• Develop a complementary system for LPG delivery
that can be used by Japan Enagic Co., Ltd. and among
facilities• Develop a robust business continuity plan (BCP) systemthrough the enhancement of disaster manuals• Open the Nagano Office of Mitsuuroko Administration
Center*1 The cost increase for business operations due to the impact of carbon tax is calculated as below:
2050 Carbon tax of US$200/t-CO2 is based on the International Energy Agencyʼs publication, “World Energy Outlook 2022”: Groupʼs CO2
emissions (t) in 2021 × US$200/t-CO2 × exchange rate (¥/$)*2 Each estimation is based on the calculations in “World Energy Outlook 2022.”*3 PPA model: A business model in which business operators install, manage, and maintain solar power systems on the roofs of consumersʼ offices free ofcharge. Consumers then purchase the electricity that is generated. PPA stands for Power Purchase Agreement*4 FIT: A system where power companies purchase electricity from renewable energy sources at a fixed price for a fixed period of time. FIT stands for Feedin Tariff
FIP: A system where power generation business operators that produce electricity from renewable energy sources and sell it in wholesale markets or
through over-the-counter trading are granted a premium equivalent to the difference in the standard price (FIP price) and the market price. FIP
stands for Feed in Premium

26

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

25

not change significantly compared to its current state
due to the tightening of environmental restrictions. The
4 C scenario assumes that decarbonization and carbon
reduction efforts fail to advance, leading to an increasein physical risks such as those due to natural disasters.
Going forward, we will evaluate the impacts undereach scenario and also carry out scenario analysis forother businesses, taking the results into account in theformulation of our management plans.

* This thinking focuses on the impact on the global environment of CO2
emitted from the transportation of food. The Company is involved in an
initiative to offer products purchased from local stores in Yokohama-shi
or vegetables hydroponically grown in the stores.

Climate-related risks and opportunities, and their response measures

Strategy
The Group assumes climate change to have asignificant impact on its Energy Solutions Business andPower & Electricity Business. For these businesses, wehave begun analyzing the below 2 C scenario, whichis associated with high transition risks, and the 4 C
scenario, which is associated with high physical risks.
With 2050 as the target year, we are examining the risks
and opportunities that may arise under these scenarios
as well as response measures.
The below 2 C scenario assumes that the climate will

equipment and water-saving facilities. We also soldedible container products at the EAS café. (Sales
currently suspended)
In FY2022, in addition to continuing and expanding
the above initiatives, Living & Wellness Businessacquired real estate assessor qualifications of
CASBEE (Comprehensive Assessment System for
Built Environment Efficiency), which is a method forevaluating and rating the environmental performanceof buildings. We also changed straws, cups, andcutlery to paper, reduced food mileage*, and promoted
production for recycling preform (PET bottle material).

Response to climate changeE

Environment

Response to climate change

Environment

CO2 emissions reduction target
FY2021 Greenhouse gas (GHG) emissions

Action plan

Scope 1

Improve delivery efficiency
with SmartOWL®

(direct emissions)★

17,049 t-CO2

Reduce Scope 1 emissions

Scope 2Aim

Efficiency of delivery operations increases through enabling container replacement to takeplace at the optimal time by analyzing LPG meter data collected daily through LPWA withunique know-how. We achieved an approximately 30% reduction in delivery operation timeand an approximately 20% reduction in travel distance in a demonstration test*.
* A comparison and analysis of the conventional delivery method, in which the next delivery date is determinedbased on a prediction of the amount of gas remaining based on regular monthly meter readings, and a
new delivery method based on actual results, in which the amount of gas remaining in the LPG container ismonitored daily using the LPWA and the next replacement date is determined.

(indirect emissions from the use of energy)★

16,972 t-CO2

Promote EV for company cars
Reduce Scope 1 emissions

Scope 3

We will switch to fuel-efficient vehicles and promote eco-driving, aiming to change
about 700 company cars to EVs by 2030.

(indirect emissions in the value chain)★

5,958,716 t-CO2eq

Scope 1

17,049 t-CO2(0.3%)(0.3%)

CO2
emissions5.99 million
t-CO2eq
Scope 3

5,958,716 t-CO2eq(99.4%)

Reduce Scope 2 emissions
Reduce Scope 3 emissions (category 3)

Specificactions

Eliminate mineral waterbottle labels
Reduce Scope 3 emissions (category 1)

We began selling label-less products in April 2021. Our 550 mL bottles are soldexclusively in boxes and without labels on the bottles themselves, thereby reducing
the amount of plastic waste. This also eliminates the hassle of removing labels whensorting trash and contributes to reducing the environmental impact.

Carbonneutrality
by 2050

Greenhouse gas (GHG) emissions
Scope 1 ★

17,049 t-CO2

Scope 2 ★

16,972 t-CO2

Scope 3 ★ 5,958,716 t-CO2eq
Category 1 ★

goods
596,251 t-CO2eq Purchased
and services

Fuel and energyactivities
Category 3 ★ 2,415,898 t-CO2eq related
not included in
Scopes 1 and 2

Category 4 ★

and19,676 t-CO2eq Transportationdelivery (upstream)

Category 11 ★

2,926,890 t-CO2 Use of sold goods

Promote sales for highefficiency water heaters
Reduce Scope 3 emissions (category 11)

Reduce CO2 from LPG delivery
Reduce Scope 3 emissions (category 4)★ marked indicators are independently assured by KPMG AZSA Sustainability Co., Ltd. The basis for the calculations is as follows:

The scope of calculation covers Mitsuuroko Group Holdings Co., Ltd. and its consolidated subsidiaries. We have added Shizuoka Mitsuuroko Foods Co., Ltd. sinceNovember 2021. General Storage Company Pte. Ltd., an overseas subsidiary acquired in December 2021, is excluded from the boundary of this report as it is difficult tocompile sustainability information. Scope 1 and 2 emissions include only CO2 emissions, while Scope 3 emissions include emissions from GHG other than CO2.
Scope 1: CO2 emission factor of fuel and the unit calorific value are based on the coefficients specified in the Act on Promotion of Global Warming Countermeasures.
Scope 2: CO2 emission factor of electricity based on the adjusted emission factors by electric utility business operator.
Scope 3: Each emissions intensity is referenced from the Act on Promotion of Global Warming Countermeasures; the Ministry of the Environment ʼs “Database on
Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain ”; and the Inventory Database forEnvironmental Analysis version 2 (IDEAv2) for calculating supply chain greenhouse gas emissions, published by the Sustainable Management Promotion
Organization.
Category 1: Calculated by multiplying the amount (physical quantity) of petroleum-derived fuel and city gas procured for sales by the emission intensity for each fuel typespecified in IDEAv2.

We aim to contribute to the reduction of CO2 emissions and the prevention of global
warming through the promotion of high-efficiency gas equipment. We are promoting
sales of energy efficient products with high added value. These include latent heatrecovery-type high efficiency water heaters for domestic use called “ECO-JOZU,” which
reduces CO2 emissions by approximately 16% compared to conventional heaters, as wellas “ECO ONE,” a hybrid hot water and heating system that combines a heat pump water
heater with “ECO-JOZU,” achieving an approximately 40% reduction in CO2 emissions.
Japan Enagic Co., Ltd., which is one of our LPG delivery subcontractors, hasparticipated in the Tokyo Trucking Associationʼs Green-Eco Project. In the “Tokyo
Freight Forwarding Evaluation System” conducted by the Tokyo Metropolitan
Government, it was awarded “one star (☆)” for its efforts to reduce CO2 emissions
in FY2021. The Group is supporting initiatives to reduce CO2 emissions from LPG
delivery by promoting SmartOWL® delivery operation streamlining solution to LPG
delivery businesses throughout all of Japan.
Category 3: GHG emissions derived from the extraction, production, and transportation of fossil fuels used in the production of electricity for sales purposes and the
production of energy purchased for private use. Emissions from “electricity for sales purposes” are calculated by multiplying the amount of electricity soldby the basic emission factor of Mitsuuroko Group conducting retail electricity business and the emission intensity database figure. Emissions from “private
electricity consumption” are calculated by multiplying the amount of electricity used for private consumption by the emission intensity database figure.
Emissions from “private fuel consumption” are calculated by multiplying the amount of fuel used for private consumption by the fuel emission intensities
specified in IDEAv2 for each fuel type.
Category 4: Upstream transportation emissions are calculated by multiplying the transportation volume (t-km), which is the product of the cargo weight and the distancetransported, by the IDEAv2 emission intensity for each transportation type. For shipping and transportation, fuel consumption is multiplied by the emission
intensity from the Ministry of the Environment database.
Category 11: Calculated by multiplying the sold volume (physical quantity) of petroleum-derived fuel and city gas by their respective fuel-specific calorific values and CO 2
emission factors.

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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

27

Promote reducing CO2 from theuse of electricity

Scope 2
16,972 t-CO2

We will use the power sources we procure and non-fossil fuel certificates to promote
the reduction of our own power consumption and our customersʼ CO2 emissions.
[Mitsuuroko Green Plan]
Renewable Energy Ratio Plan | Energy sources from renewable energy + Non-fossil
fuel certificate (designated renewable energy)
CO2 Emission Reduction Plan | All energy sources (no designation) + Non-fossil
fuel certificate

Response to climate changeE

Environment

Environment

Response to climate change

Controlling customer CO2 emissions

Expanding the energy solutions business

Promotion of high-efficiency gas equipment
We seek to contribute to the reduction of CO2
emissions and the prevention of global warming throughthe promotion of high-efficiency gas equipment,
proposing and selling efficient products with high added
value. Aiming to meet our customersʼ diverse needs
and preferences, these products include latent heatrecovery-type high efficiency water heaters for domestic
use called “ECO-JOZU,” which reduce CO2 emissions
by approximately 16% compared to conventional
heaters, as well as “ECO ONE,” a hybrid hot water andheating system that combines a heat pump water
heater with “ECO-JOZU,” achieving an approximately
40% reduction in CO2 emissions.

We save energy at a wide range of facilities including
plants, commercial facilities, and hospitals through theselection and maintenance of cogeneration systems
and the proposal of energy-saving equipment. We also
work to realize comprehensive energy management
centered on electricity, thermal, measurement, control,
power storage, and power generation. In addition
to reducing running costs with our energy solutions,
we are expanding business that helps the global
environment. Committed to the achievement of asustainable society, we provide solutions for the future.
Hybrid hot water andheating system“ECO ONE”

Renewable energy is an important form of domesticenergy that does not emit greenhouse gases and canbe produced within Japan. It harnesses the naturalenvironment and is also a vital power source for thedevelopment and maintenance of society. In addition
to the power plants we already possess, we are also
developing renewable energy sources such as solar,
wind, and biomass.

Promotion of residential-use fuel cell “ENE-FARM”

30

Provision of the Mitsuuroko Green Plan
Residential-use fuel cell
“ENE-FARM”

Since the “Paris Agreement” was adopted in December
2015, the awareness of consumers and investors
toward climate change has increased rapidly, andcorporate efforts toward reducing greenhouse gas
emissions are being viewed as important. By providing

What is the Mitsuuroko Green Plan

Expanding sales of solar power generation systems
Solar power is a carbon-free source of energy that does
not emit greenhouse gases. Consumers do not need to
pay consumption charges and can reduce the amountof electricity they purchase from power companies byusing the power generated for their own household.
Unused energy can then be sold to power companies.
It is also highly economic, as once installed, power cancontinue to be generated as long as there is sunlight.
Since Japan often faces natural disasters such as
earthquakes, typhoons, and severe rainstorms, solar
represents an effective source of emergency powerin the event of power outages. We will also promote
the spread of energy creation/storage system throughthe installation of storage batteries together with solar
power generation systems.

the “Mitsuuroko Green Plan” to customers who
are working to reduce their CO2 emissions, we willcontribute to a low-carbon society and meet the needsof our customers.

The Mitsuuroko Green Plan uses renewableenergy supplied by Mitsuuroko Green EnergyCo., Ltd., as well as non-fossil fuel certificates.
It offers CO2 emission factors tailored forcustomersʼ needs in two main options.

1

Renewable Energy Ratio Plan
Energy sources from renewable energy +Non-fossil fuel certificate
Energy sources fromrenewable energy
procured by Mitsuuroko
Green Energy Co., Ltd.

* It not only reduces electricity charges, but also enables customers to
reduce their CO2 emission factors.
* The plan is available Japan-wide excluding Okinawa and some remoteislands.

Customers can report lower emissions in the System forGreenhouse Gas Emissions Calculation, Reporting, andDisclosure based on the Act on Promotion of Global WarmingCountermeasures (Global Warming Countermeasures Act).
Customers can report lower emissions in a CDP report, which
is noticed by corporate investors.
Customers using our extra-high-voltage power service or
high-voltage power service can view the balance between
costs, emission factors, and renewable energy introduction
ratio, and select a plan.
Customers using our low voltage power service can choose
between the 100% renewable energy plan and the 0.00
emission factor plan.

Customers

Non-fossil fuelcertificates (designatedrenewable energy)

Benefits of the Mitsuuroko Green Plan
Lead improvement of corporate image.

Mitsuuroko Green
Energy Co., Ltd.

2

CO2 Emission Reduction Plan
All energy sources + Non-fossil fuel certificate
All energy sources
procured by
Mitsuuroko Green
Energy Co., Ltd.

Mitsuuroko Green
Energy Co., Ltd.

Customers

Non-fossil fuelcertificates

SUSTAINABILITY REPORT 2022

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29

For the promotion of the new energy solutions
business, we are working to improve energy efficiency
through a local power production and consumption
approach centered on the best mix of energy. We are
currently focusing on the fact that the main forms of
power supply have low energy efficiency in terms oftransmission loss and waste heat loss, promoting therollout of “ENE-FARM,” a distributed power generation
system installed in each consumption area. “ENEFARM” is an LPG-based system, and we are mainly
concentrating on popularizing it among new generalhouseholds by partnering with home construction
companies. Through these efforts, we will continue topromote the spread of distributed energy systems.

Development of renewable energy sourcesResponse to climate changeE

Environment

Environment

Response to climate change
Improving delivery efficiency with SmartOWL®

Key examples

Provision of electricity through off-site corporate PPAIn April 2021, Mitsuuroko Green Energy Co., Ltd.
provided the “Mitsuuroko Green Plan,” which adheresto the “RE100*1,” global initiative on renewableenergy, to the facilities of “RE100” member MARUIGROUP CO., LTD.
As a new initiative, in December 2022, it was decided
that Mitsuuroko Green Energy Co., Ltd., MARUI CO.,LTD., and JA MITSUI ENERGY SOLUTIONS, LTD. will
jointly work to establish an off-site corporate PPA*2.
In this business, Mitsuuroko Green Energy Co., Ltd.

supplies electricity derived from renewable energy
sources generated at five solar power plants newly
developed by JA MITSUI ENERGY SOLUTIONS, LTD.
in the service area of Tokyo Electric Power Company,
together with RE100-compliant electricity, to two
facilities of MARUI CO., LTD. in Tokyo. The businesshas been selected for the “Subsidy for Promotion ofCustomer-led Introduction of Solar Power Generation(FY2022 budget),” a publicly offered program by the
Ministry of Economy, Trade and Industry.

*1 “RE100” is a global initiative aimed at preventing global warming. It is led by The Climate Group (international NGO working to reduce greenhouse gas
emissions) in partnership with the CDP (international NGO promoting disclosures on environmental problems). Member companies pledge and publicly
announce that they will use 100% renewable energy for the electricity used in their business activities by 2050 at the latest.
*2 Corporate PPA is a method in which consumers procure renewable energy power from a power generation business operator for a long period of time and at a
fixed price.

Power generation
business operator

JA MITSUI ENERGYSOLUTIONS, LTD.

Electricity
generated withsolar power

Retail electricity providers

Mitsuuroko Green
Energy Co., Ltd.

Purchase ofrenewable electricity
Electricity bill
payment

Aggregation
The required amount of planned
value of power generation
forecast at the required time

PPA contract
Electricity
generated withsolar power

Consumer

MARUI CO., LTD.

Sale of renewableelectricity
Electricity bill
payment

100% renewableenergyProvision of the Mitsuuroko Green Plan to construction companies
Mitsuuroko Green Energy Co., Ltd. has partneredwith a construction company and started to provide
new construction sites with the Mitsuuroko Green
Plan, a CO2 emission reduction plan that contributes
to the measures against global warming.

Many construction companies are also working onsustainability initiatives, and in response to requests
for electricity to be used at new construction sites,
we decided to introduce the Mitsuuroko Green Plan
supplied by Mitsuuroko Green Energy Co., Ltd.

efficiency by utilizing data automatically acquired through
LPWA connection.
Through digital transformation (DX), we have developed
a proprietary system that incorporates four patented
technologies and know-how that reduced the delivery
operation time by 30% in the demonstration tests, and theservice has been available as “SmartOWL® delivery operation
streamlining solution” to LPG companies since October
2021.

Reduction in the number of meter readings throughautomated meter reading and reduction effects of
CO2 emissions
CO2 emissions reduction effects of Mitsuuroko Group (Scope 1)
Number of automatic meter readings from April 2019,
when the service began, to December 2022: 1,171,539

Reducing environmental impact by improving
delivery efficiency
In order to use LPG, it is essential to deliver LPG
containers to the consumersʼ homes by truck, and bystreamlining this delivery operation, the distance traveledby trucks can be shortened, thereby reducing CO2
emissions.

Amount of CO2 emissions reduced

1,171,539
timesApproximately 104,501 kg

Customersʼ CO2 emissions reduction effects
Number of automatic meter readings from April 2019,
when the service began, to December 2022: 1,351,706

Amount of CO2 emissions reduced

1,351,706
times

Approximately 120,572 kg

Distance traveled per meter reading(actual results from randomly selected MV retailers): -------------------------- 500 m
CO2 emissions per liter of gasoline: ------------------------------------2.32 kg-CO2/L
Fuel efficiency of meter reading vehicles: ------------------------------------- 13 km/L
From the above, CO2 emissions per meter reading is 0.0892 kg
Amount of CO2 emissions reduced = 0.0892 kg × Number of meter readings

Effectiveness has been proven through experiments
Mitsuuroko Creative Solutions Co., Ltd. conducted anexperiment from October 2018 to the end of September
2019 and demonstrated the effects of improving delivery

Effects of improving delivery efficiency
We achieved an approximately 30% reduction indelivery operation time and an approximately 20%
reduction in travel distance in a demonstration test ofdelivery efficiency improvement using LPWA connection*.
ENPT

Shorter travel distance= lower CO2 emissions

LOW

Initiatives of operating companies
Participation in TSEʼs carbon credit market demonstration project
Since December 2022, Mitsuuroko Vessel Co., Ltd. hasparticipated in the carbon credit market demonstration
project, which the Tokyo Stock Exchange has been
conducting on a trial basis as a project commissionedby the Ministry of Economy, Trade and Industry.
* TSEʼs carbon credit market demonstration project
In order to achieve the goal of carbon neutrality by 2050, the government haspresented the “GX (Green Transformation) League Basic Concept,” a voluntary
framework for setting ambitious CO2 emissions reduction targets based onnational guidelines, trading credits to achieve the targets, and having thegovernment confirm the results. As part of this framework, the government has
proposed the establishment of a carbon credit market as a platform for voluntaryemissions trading, as well as a mechanism for setting voluntary emissions
reduction targets and emissions trading to achieve these targets.
This project is to demonstrate the establishment of a market where carbon
credits are widely traded in a form where the price is publicly announced.

Daily collection of gas meterreadings via LPWA

Daily monitoring of
remaining LPG quantity

Implementation of a
new delivery method

Improved efficiency ofdelivery operations* A comparison and analysis of the conventional delivery method, in which the next delivery date is determined based on a prediction of the amount of gas
remaining based on regular monthly meter readings, and a new delivery method based on actual results, in which the amount of gas remaining in the LPG
container is monitored daily using the LPWA and the next replacement date is determined.

Service overview
Customers with LPWA
terminals installed

Delivery operation
streamlining solution* LPWA connection is used to collect informationsuch as LPG meter readings on a daily basis.

Daily gas meterreadings data

LPG companies

Delivery system for LPG
companies
Container
replacement
date data

This service is equipped with four patented technologies to provide the mostefficient container replacement date.
No. 6364571
Patent No. 6744472
number No. 6757454
No. 6803488

This service, which shortens delivery operation time, contributes to CO2emissions reduction by reducing truck operating time and travel distance, andserves as a complement to labor shortages. In doing so, it will help solve social
issues and promote ESG, and is proposed as a strength of the Group, which
continues to provide “more fulfilling lifestyles” through energy supply.

LPG companies using the service
will be able to enjoy the benefits ofincreased efficiency without having
to make major changes to theirdelivery operations environment.

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31

PPA contract

In the LPG business, we are contributing to therealization of a low-carbon society by eliminating waste
and by reviewing the existing workflow.
SmartOWL® service is a solution that increases theefficiency of LPG operations through the collection andanalysis of LPG meter information and the applicationof know-how gained in demonstration tests. The
operational know-how and series of business models
that link information collected by LPWA to delivery
efficiency improvement have been patented, and we are
expanding the service to enable more LPG companies
to use it.

Response to climate changeE

Environment

Environment

Response to climate changeWind power generation business

Biomass power generation businessIn wind power generation, a turbine is turned by
the force of wind, and this rotational motion is thentransferred to a generator to create electricity. It is acomparatively efficient method of power generation
where 40% of windʼs energy can be converted toelectricity. With its long coast lines, Japan has many
locations suitable for harnessing stable wind power(average wind speed of 6 m/second or more), making
it a promising country for wind turbines. We are also
considering the installation of offshore wind turbines.

Biomass is an organic resource (excluding fossil fuel)produced by organisms from the inorganic compoundsof water and CO2 using solar energy. It is a sustainable
and renewable energy source that only requires lifeand solar energy. Within biomass, it is the category of“woody biomass,” which comes from wood such as
thinned wood and construction wood waste. Since
CO2 generated by burning woody biomass is absorbed
from the atmosphere by trees in the process ofphotosynthesis that drives their growth, there is virtuallyno increase in atmospheric CO2. This is called “carbon
neutral.”Total
outputMarch 2007

Azuchi-Oshima
Oshima-mura,
32,000 kW
Wind Power Station Hirado-shi, Nagasaki

January 2008

KamisuYanagawa,
Wind Power Station Kamisu-shi, Ibaraki

Total output

10,000 kW

Japanʼs first wood chip
Mitsuuroko Iwakuni Iwakuni-shi,January 2006
combustion 10,000
Power Plant
Yamaguchi
kW power plant
We provide electricity produced at the Mitsuuroko Iwakuni Power Plant to thecustomers of our power and electricity sales business.

Mega solar business

Total
outputFebruary 2014

Suigo-Itako
Maekawa, Itako-shi,
Solar Power Plant Ibaraki

14,500 kW

July 2014

FuttsuShimokenzaku, Kato,
Solar Power Plant Futtsu-shi, Chiba

40,000 kW

Solar power plants with output under two megawatts
The Group is working to expand the use of solar power
generation systems and fuel cells to promote thespread of renewable energy.
We also have solar power plants that are of a smallerscale than the mega solar plants described above (lessthan 2 megawatts). We currently operate these plants in
19 locations, and the total output in FY2021 was 7,152
thousand kWh.

Commencement of construction preparation for grid energy storage stations thatwill contribute to spreading renewable energy as the main form of power and thestability of power grid
Mitsuuroko Green Energy Co., Ltd. has begun
preparations for the construction of the Kitahiroshima
No.1 and No.2 Storage Stations in Kitahiroshima-shi,
Hokkaido.
The use of renewable energy power generation
facilities for the realization of carbon neutrality by 2050
is expanding. However, there are difficulties in power
generation prediction and control due to the fact thatfacilities such as those for solar and wind power are
affected by the seasons and the climate. To solve thesechallenges, it is essential to secure “adjustment power”
to suppress unstable power generation.
At these power storage stations, the storage batteries
can be used as “adjustment power,” and the charge

or discharge control of the storage batteries can thenbe used to compensate for the shortfall in the power
generation plan of the renewable energy power source,
thereby contributing to the stabilization of the power
grid*1. In addition, these storage stations can also be
used in the control of distributed energy resources andother such applications.
Mitsuuroko Green Energy Co., Ltd. seeks to createa stable and efficient balance of supply and demandfor electricity. As an aggregator*2, it will contributeto the further adoption of renewable energy and thestabilization of power systems by entering new markets,
such as the supply-demand adjustment market and thecapacity market.
OutputCompletion date
to be confirmed*3

Megapack, a large-scale industrial use storage battery manufactured by TESLA Inc.
Source: TESLA (https://www.tesla.com/megapack)Kitahiroshima No.1
and No.2 Storage
Stations

Kitahiroshimashi, Hokkaido

3,085.6 kW*1 Power grid
A system that integrates power generation, substation, power transmission, anddistribution to supply power to consumersʼ power receiving equipment.
*2 Aggregator
A business operator that effectively manages energy by bundling the electricity
demand of consumers and the electricity of distributed power sources (storage
batteries and private power generation equipment).
*3 The delivery date has been delayed due to the situation in Ukraine, and thecompletion date has not yet been confirmed.

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33

Although mega solar plants adopt the same mechanism
as residential solar power systems, they are not installedon the roofs of houses. They are installed in large areasof vacant land and have large-scale generation capacity
making them suitable for industrial use. Expectations
are high for both the Suigo-Itako Solar Power Plant in
Ibaraki (power output of approximately 14,500 kW) andthe Futtsu Solar Power Plant in Chiba (power output ofapproximately 40,000 kW), which are participating in
the business, as next-generation energy sources.

Response to climate changeE

Environment

Response to climate change

Environment

Initiative for participating in renewable energy aggregation businessTo participate in renewable energy aggregation
business, Mitsuuroko Green Energy Co., Ltd., hasentered into and started operation of a business tie-up
with Nippon Koei Co., Ltd. to develop and demonstrate
Integrated Power Control Central (IPoCC), a nextgeneration integrated power system that utilizes
distributed energy resources such as storage batteries.
Based on the business tie-ups, we aim to build “IPoCC”
and provide power generation forecasting andrenewable energy supply-demand adjustment services
for renewable energy power generation facilities, suchas those for solar and wind power, which fluctuate
substantially. Its development will enable a smoother
General electricity
transmission anddistribution business
operator
Provision ofadjustment power

Capacity market
systemSupply-demand
adjustment market system

Retail electricity
providers
Avoid imbalance,etc.

Simplified control
systemPower generation
business operator
Power generation
forecasting support

Consumer
Effective use ofrenewable energy

Next-generation integrated power system platform

35

Charge anddischarge control ofstorage batteries

Renewableenergy BG

Adjustment instruction(supply-demand adjustment
market and capacity market)

Renewable energy power
generation business
operator (IPP, etc.)

ConsumerDR

Mitsuuroko Green EnergyCo., Ltd.
Retail electricity providers

Electricity sales plan
RA

RA

RA

RA*

Power generation
forecastingsupportRenewableenergy BG
service

Renewable energy and In-house power supply
Storage battery control
Consumer DR

DemandBG

In addition, we have expanded the provision of DR
services to customers using our low-voltage power
service since November 2022. By utilizing this service
together with our customers, we will contributeto alleviating the supply crunch of electricity andeconomical energy use through power-saving, peakshifting, and energy efficiency and conservation
initiatives, and help to expand the introduction ofrenewable energy for a decarbonized society.
* Demand response is a system that allows consumers to change theirelectricity consumption patterns in response to electricity pricing or incentive
payments in order to curb the use of electricity during times of high wholesalemarket prices or low grid reliability, in order to balance the supply and demandof electricity by decreasing or increasing the consumption of electricity.
As renewable energy sources become more prevalent, there is a need foran adjustment mechanism that handles power generation being affected byweather conditions, and DR is an effective means to address this issue.

Moss cultivation business initiatives
We have begun a new moss cultivation business as an
initiative to utilize our idle land. In November 2022, thefield was expanded to 2,500 m2 and 18 long sheets (1m × 50 m) were installed in addition to the conventional
cultivation of seed moss. It is expected to be used forweed control and greening in highway service areas,
inside plant facilities, and railroad operator track areas.

Japan Electric Power Exchange
Demand and procurement planning* Resource aggregator: Business operator that enters into direct service contracts with consumers and controls resources.

Received a five-star rating from the Energy Conservation Communication Ranking System
Mitsuuroko Green Energy Co., Ltd. received the highest
rating of five stars as a retail electricity provider in the2022 evaluation results of the “Energy Conservation
Communication Ranking System” conducted by
the Ministry of Economy, Trade and Industry and the
Agency for Natural Resources and Energy.
The purpose of this system is to evaluate and publicize
the level of information and services provided byeach provider for general consumers regarding
energy efficiency and conservation and the statusof their efforts, so that general consumers can use
the evaluation results as reference information whenselecting an electricity or gas company, and toencourage further energy efficiency and conservation

Since July 2021, Mitsuuroko Green Energy Co., Ltd.
has been providing Demand Response (DR) services
to its customers using our extra-high-voltage power
service or high-voltage power service. However, thesupply-demand situation for electricity has remained
difficult due to recent sharp rises in fuel prices, theshutdown of thermal power plants, and the heatwaves in the summer. In light of this, in August 2022,
we enhanced the DR service functions of our nextgeneration integrated power system, IPoCC, and began
new operations in response to requests for powersaving from the government and general electricity
transmission and distribution business operators.
<Added functions>
Early delivery of DR implementation result reports
Long-term DR activation

efforts based on the information provided for it.
Mitsuuroko Green Energy is actively working to provide
useful information on energy efficiency and conservation
to customers, share information on environmental
issues and initiatives related to decarbonization throughwebinars and social media, and expand the use of
demand response services to encourage power-saving.

Other climate change initiatives
1

Activities to protect and nurture the forests around water collection sites

Working together with local communities, we areengaging in activities to protect and nurture theforests around the water sources used by Mitsuuroko
Beverage Co., Ltd., a Group company that produces
natural water products (mineral water production andsales business). We support activities advocated by
Yamanashi Prefecture for the protection and nurture ofnational forests that are deteriorating. Partnering with
Narusawa Village 1st District, we have entered into anagreement for participating in volunteer activities tomaintain the Narusawa Village 1st Districtʼs own forest.
Mitsuuroko Beverage Co., Ltd. is actively engaging
in these efforts as part of activities to recharge water
sources that provide the water essential for producing
its products.
* From FY2020 to FY2022, this activity was not conducted due to the spread of
COVID-19.

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response to the supply-demand adjustment market
which is phased in from FY2021, and the capacity
market, which will start in FY2024.
Mitsuuroko Green Energy Co., Ltd. and Nippon Koei
Co., Ltd. have labelled IPoCC as “epoch-making.” The
two companies aim to establish it as next-generation
standard in power control systems, and in addition
to developing and testing it, they are focusing on
external sales and the expansion of aggregation energy
business. Through these efforts, they will contributeto the popularization of renewable energy and therealization of a decarbonized society.

Improvement and expansion of demand response service functions for the nextgeneration integrated power system IPoCC

Response to climate change/Promotion of resource cycleE

Environment

Environment

Response to climate change

Promotion of resource cycle
Basic approach2

Mitsuuroko Group promotes the 3Rs (Reduce, Reuse, Recycle) throughout the Group. We are strengthening
our commitment to resource recycling in our various business activities.

Baking bread using domestic wheat

Sweet Style Co., Ltd.ʼs bakery, “Azabujuban MontThabor,” focuses on selling frozen bread that uses
domestically produced wheat. Using domestically
produced wheat as the raw material shortens thetransportation distance and does not use chemicals
such as fungicide for importing. It also uses raw
materials milled with a stone mill and offer customers
products baked at the stores. These products are madewith meticulous attention to the environment, health,and superb taste (aroma), and are winning the supportof many customers as a new value.

31Installation of solar panels on the roofs of the companyʼs facilities

General Storage Company Pte. Ltd. (GSC), theCompanyʼs overseas subsidiary, has set forth “a green
and caring tomorrow with self-storage” as its ESG
vision. GSCʼs self-storage brand, Lock+Store, hassigned an 18-year purchase agreement with Union
Solar Pte Ltd, a solar power generation business
operator, to realize this mission. The solar panels
installed on the roof of the Chai Chee facility (completed
in January 2023), which is a trunk room operated by theCompany, will have a maximum output of approximately
487.3 kWp, which is expected to reduce the use offossil fuel-based energy by approximately 30% whenused on-site at the facility.

4“Save Bread” to reduce food waste

Azabujuban Mont-Thabor believes that, “as lovers of bread andthe Earth, we cannot waste the bread we have made with ourown hands so easily.” This is why any bread that was previously
discarded daily due to being out of standard (minor aesthetic
imperfections or browning) despite having no quality issue, or any
bread that did not sell, are now called “Save Bread” and sold at areasonable price.
This initiative will help reduce food waste and environmental impact,
as well as provide an opportunity to try Azabujuban Mont-Thaborʼs
bread at a discount.

2

Launched vending machine for frozen out-of-standard breads

In April 2022, Mont-Thabor Kugenuma Kaigan Store (Fujisawa-shi,
Kanagawa) introduced its first frozen bread vending machine, withthe aim of providing the delightful experience of enjoying homemade
bread, readily available as a convenient and eco-friendly snack.
Frozen bread and frozen dough made of 100% domestically
produced wheat are readily available for purchase 24 hours a day.
We will also contribute to the reduction of food waste andenvironmental impact by offering out-of-standard bread.

Use of vacant space for vegetable gardens

Lock+Store has partnered with SG Gardens, a local horticultural company, to utilize vacant space at the Chai Cheefacility for vegetable gardens. The harvest from the vegetable garden will be donated to charities that support lowincome families or sold to restaurants.

3“Sustainable Real Estate Management” initiatives to reduce furniture waste

MITSUUROKO Co., Ltd. is working with Social InteriorInc., a furniture subscription service and off-pricemarket provider, on sustainable real estate managementthat reduces furniture waste.

Initiatives
1

Procurement of furniture for designing space in real estatebusiness through subscription
By not owning the furniture needed for income-producing properties,
and by utilizing the subscriptions service offered by Social Interior Inc.
to promote the collection and secondary use of furniture when it is nolonger wanted in the future, we aim to make effective use of resources.

2

Edible hibiscus

Edible marigold

Reducing the hassle of owning furniture needed by property
users, collecting unwanted furniture, and reusing it
We will progressively make the Subsclife furniture subscription
service of Social Interior Inc. available to tenants and users of rental
apartments, office buildings, and commercial facilities operated by
MITSUUROKO Co., Ltd. at discounted prices. This reduces the usersʼ
initial setup fees, the hassle of ownership, and the hassle of arranging
for disposal when no longer wanted. At the end of the period, Social
Interior Inc. will collect the furniture and promote its secondary use in
its off-price market, Subsclife Off Price.

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37

3R promotion initiatives

Promotion of resource cycle/Supply chain

E

Environment

4

Environment

Promotion of resource cycle

Bowling pin reuse contest and reuse education in elementary schools

Rain-Bowling Project image characters
Pinffany & Pinbow

7

Bowling Pin Reuse Contest
39

Mitsuuroko Group Holdings Co., Ltd.

Grand prize (1 winner)

Excellent prize (5 winners)

Promotion of recycling of used paper and clothes

Lock+Store supports the activities of SG Recycle Pte
Ltd*, a company involved in the recycling business, andis the first self-storage provider in Asia to install two of
SG Recycleʼs robotic waste collection machines (onefor used paper and one for used clothes) at its Chai
Chee facility.

40

SUSTAINABILITY REPORT 2022

The Bowling Pin Reuse Contest, a
cooperative project with Kanagawa
Shimbun, was held in May 2022. After
careful screening of 161 applications, 19
winners were awarded prizes.

Flower installation: Smile Flower Bath installation

SPA EAS: Yokohama Tennen Onsen supports the Smile
Flower Project, an initiative to save flowers that would
otherwise be discarded as out-of-standard products
or wasted due to the shrinking market caused by the
pandemic. At the entrance, flower baths (hanachozu )are created and displayed according to the season,
welcoming guests in a festive manner.
In addition, events aimed at raising awareness of the
project included a popularity contest for flower art anda stamp collecting game, creating a cycle that links thesmiles of employees, flower farmers, and customers
through the flower decoration initiative.
We will continue to strive to recycle resources andenhance the value of facilities with ideas that capture
current trends.

In May 2022, as part of the Rain-Bowling Project ,a sustainable activity using discarded bowling pins,
Mitsuuroko Sports Co., Ltd. held the Bowling Pin Reuse
Contest*2 in cooperation with the Kanagawa Shimbun.
After careful screening of 161 applications, 19 winners
were awarded prizes.
The grand prize winner, Yamoto Elementary School in
Yokohama-shi, held a Rain-Bowling class (an original
bowling game that allows students to learn how toreuse discarded pins while having fun playing) as partof their 4th grade class on SDGs. (Held in November
2022)
We will continue to promote the project with theaim of contributing to the local communities and theenvironment.
*1*1 A project to provide children in Yokohama-shi with opportunities toexperience the SDGs through play using discarded bowling pins
*2 A project to invite application for reuse ideas on new ways to reuse bowlingpins, of which approximately 500 are discarded by Hamabowl each year. A
contest aiming for the realization of a sustainable society

6* SG Recycle Pte Ltd has installed more than 100 robotic waste collection
machines throughout Singapore. Users can obtain point return services inexchange for used paper and used clothes.

“Bowling Alley in the Forest”
by Ms. Ikeda, Yamoto Elementary
School, Yokohama-shi“Unique pots of bowling pins”

by Ms. Kosai

Supply chain* Four other applicants received the award.

Green and eco-friendly projects initiatives
5

EAS café promoting elimination of plastic and local production for local
consumption toward becoming a sustainable cafe

In FY2022, we eliminated all conventional plastic cups
and replaced them with paper cups and paper straws*.
In addition, in purchasing ingredients, vegetables areprocured from local stores in Yokohama-shi, and only
the necessary amount is harvested through hydroponic
cultivation using the plant cellar within the EAS café,
thereby reducing food mileage and food waste.
We will continue to operate our facilities with anawareness of our contribution to the environment andthe local community.
* In order to maintain service quality and ease of drinking, we have introduced
stainless steel tumblers instead of paper cups for some alcoholic beverages in
response to customer feedback.

Japan Enagic Co., Ltd., in which our Group company
Logitri Holdings Co., Ltd. holds a 20% share, hasparticipated in the Tokyo Trucking Associationʼs GreenEco Project*. Through the elimination of complicateddeliveries, and promotion of continuous eco-driving
activities, Japan Enagic Co., Ltd. has reduced thetravel distance by 4.6%, reduced fuel consumption by
8.9%, improved fuel efficiency by 4.71%, and reduced
CO2 emissions by 288 tons (CO2 absorption equivalent
to 20,600 cedar trees) in FY2021 compared to theprevious year.
In addition, in the “Tokyo Freight Forwarding Evaluation
System” conducted by the Tokyo Metropolitan
Government, it was awarded “one star (☆)” for its
efforts to reduce CO2 emissions in FY2021.
We are aiming to achieve “environmental CSR(management improvement from the environment)” witha focus on social contribution and social responsibility
by raising the environmental awareness of each andevery employee, including management, supervisors,and drivers.

* A project launched by the Tokyo Trucking Association that incorporates unique
CO2 reduction initiatives in order to contribute to the prevention of global
warming.
The project aims to build a database from the fuel consumption data collected
for each vehicle and engage in initiatives such as the promotion and support ofcontinuous eco-driving activity, the reduction of CO2 emissions, the reductionof costs through the improvement of fuel efficiency, and accident prevention.

Effects of Japan Enagic Co., Ltd.ʼs activities

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