Environment

Basic Approach

We continue to make proactive investments in our efforts to build more sophisticated resource recycling systems.
At the same time, we are working to help achieve carbon neutrality by 2050.

To Help Achieve Carbon Neutrality
Climate Change Initiatives
Environmental Management
Biodiversity Conservation

To Help Achieve Carbon Neutrality

The Daiei Kankyo Group promotes a variety of initiatives to reduce CO₂ emissions in each process of its business activities.

Reduction of environmental impact

This diagram shows (1) inputs (energy and resources) and (2) outputs (emissions) generated in the course of our business activities. The Daiei Kankyo Group assesses the environmental footprint of its extensive business activities, and promotes a variety of initiatives to further reduce the impact of these activities.

Transition in energy consumption

The Act on Rationalizing Energy Use defines energy consumption per unit as an indicator for energy management, and businesses are required to reduce their energy consumption per unit by an average of 1% or more per year over the most recent five-year period. The Daiei Kankyo Group defines energy consumption per unit using the following formula, and has achieved a cumulative reduction of 20% or more over the past five years.

Definition of energy consumption per unit

Energy consumption per unit (ℓ/t)
Crude oil equivalent energy consumption (ℓ)/total weight of intermediate treatment (t)

(Calculated using the following conversion rates: electricity: 4 kWh = 1 ℓ of crude oil; gas: 0.86 m³ = 1 ℓ of crude oil; heavy oil: 1 ℓ = 1 ℓ of crude oil)

Climate Change Initiatives

　The Daiei Kankyo Group considers addressing climate change to be one of its top priorities in its business operations. We are working to help reduce greenhouse gas emissions in society as a whole, starting with our own waste management business. Steps we are taking to achieve this include increasing the level of waste treatment, improving recycling rates, and generating energy through waste incineration and biogas power generation. As a company with the power to create better environments, we will endeavor to disclose information based on the TCFD recommendations, and promote further measures to combat climate change.

Information disclosure based on the TCFD recommendations

June 27, 2023
Daiei Kankyo Co., Ltd.

Information disclosure based on the TCFD recommendations

　Since fiscal year 2022, Daiei Kankyo Co., Ltd. has been preparing information disclosure in the four areas recommended by the TCFD (governance, strategy, risk management, and metrics and targets), and announced its support for the TCFD recommendations in June 2023.

Governance

　We established the Sustainability Promotion Committee chaired by the President and Representative Director. This committee discusses various climate change-related policies as well as risks and opportunities at least twice a year, and reports the result of these discussions to the Board of Directors. The Board of Directors then makes decisions and supervises important matters based on the reports from the Committee.
　In addition, the Sustainability Promotion Department under the Corporate Strategy Planning Division, which serves as the secretariat of the committee, plans and drafts measures related to climate change, and coordinates with various departments, Group subsidiaries, and committees.

Risk management

　Overall sustainability risks and opportunities, including climate change, are identified and assessed by the Sustainability Promotion Committee (at least twice a year). Other Companywide risks are identified and assessed by the Risk Management & Compliance Committee chaired by the President and Representative Director (at least four times a year). Both committees determine materiality based on Strategy uniform judgment criteria (a risk and opportunity map) and make additional changes to risk items or revise their materiality in response to changes in the external environment such as laws and regulations. In addition, risks deemed to be of high materiality by each committee are reported or brought to the Board of Directors for discussion, thereby ensuring integrated management of risks for the entire Company.

Strategy

　To formulate a strategy for climate change, we carried out scenario analyses using both 1.5°C and 4°C climate change scenarios for the four major companies in the Daiei Kankyo Group (Daiei Kankyo Co., Ltd.; Mie Chuo Kaihatsu Co., Ltd.; DINS Kansai Co., Ltd.; and Geo-Re Japan Inc.), and discussed the analysis of risks and opportunities in waste management and recycling and soil remediation, as well as measures to address them. In the future, we plan to expand the scope of analysis to the entire Group and enhance information disclosure.

Scenario analysis assumptions

Condition	Description
Scope	The companies covered were Daiei Kankyo Co., Ltd., Mie Chuo Kaihatsu Co., Ltd., DINS Kansai Co., Ltd., and Geo-Re Japan Inc. The two businesses covered were waste management and recycling, and soil remediation, which are the main businesses of the Daiei Kankyo Group. The combined net sales of these four main companies account for 80% of the consolidated sales of the Daiei Kankyo Group as a whole. The scenario analysis does not reflect the steady-state business growth (BAU growth) expected for each company in the future.
Timeline	Medium term (to 2030), long term (to 2050)
Scenario definition	The following two scenarios were considered: The 1.5°C scenario, in which the transition to a decarbonized society progresses. The 4.0°C scenario in which no measures to combat global warming beyond the status quo are expected.
Main data sources consulted	Scenarios of the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report. Scenarios of the International Energy Agency (IEA) World Energy Outlook 2022. Japanese Ministry of the Environment’s Draft Medium- and Long-term Scenarios toward Zero Greenhouse Gas Emissions in the Waste and Resource Recycling Sector by 2050.

Scenario analysis result

1.5°C scenario

Events		Impact on the Company	Materiality^*1		Incorporation into main strategies
Events		Impact on the Company	Medium term	Long term	Incorporation into main strategies
Tighter regulations on greenhouse gas emissions (implementation of decarbonization)	Risk	Decrease in earnings due to carbon tax burden	A	A	Introduce highly efficient sorting process Expand methane (biogas) and incineration power generation businesses
	Opportunity	Reduction of greenhouse gas emissions and carbon tax burden through promotion of energy conservation and increased use of renewable energy	B	B
Decrease in waste generation	Risk	Decrease in volume of waste the company receives	B	A	Introduction and expand resource recycling systems
Promotion of strategies to eliminate plastics	Risk	Intensifying competition due to the entry of major “artery” (manufacturing) companies into the industry	C	A	Explore opportunities to collaborate with major “artery” companies
Promotion of strategies to eliminate plastics	Opportunity	Increased earnings by entering MR and CR^*2 businesses and gained opportunities to collaborate with major “artery” companies	B	A
Increase in DX requirements for waste generators	Risk	Loss of customers to DX-promoting companies	B	A	Build industry-standard systems
Increase in DX requirements for waste generators	Opportunity	Improved traceability and competitive advantage due to labor saving through DX promotion	B	A	Build industry-standard systems
Transition to renewable energy	Opportunity	Expansion of waste-derived power sources and increased earnings	B	B	Expand methane fermentation (biogas power generation) and incineration power generation businesses
Decarbonization of municipalities	Opportunity	Participation in PPP projects and Local Circular Ecological Sphere	A	A	Promote PPP projects

4°C scenario

Events		Impact on the Company	Materiality^*1		Incorporation into main strategies
Events		Impact on the Company	Medium term	Long term	Incorporation into main strategies
(Acute) Increase in the number and severity of weather-related disasters (Chronic) Increase in extremely hot days and heavy rainfall	Risk	Reduced productivity of outdoor work	C	B	Improve effectiveness of crisis management system in preparation for disasters
	Opportunity	Increased opportunities for disaster recovery assistance	C	B
	Opportunity	Gained competitive advantage through improved resilience	C	B

*1 Materiality: The medium-term period is up to 2030, and the long-term period is up to 2050.
*2 MR: Stands for “material recycling” CR: Stands for “chemical recycling”

Metrics and targets

　To achieve the Japanese government’s goal of carbon neutrality by 2050, we have set targets to reduce greenhouse gas emissions associated with the business activities of the Daiei Kankyo Group.　We will strive to reduce energy use and conserve energy, and work to achieve our targets by gradually transitioning to renewable energy.

Daiei Kankyo Group’s greenhouse gas emission reduction targets

【Long-term target】	Achieve carbon neutrality across the Daiei Kankyo Group by 2050
【Medium-term target】	Achieve net zero CO₂ emissions from electricity use across the Daiei Kankyo Group by 2030

Actual greenhouse gas emissions of the Daiei Kankyo Group

	Covered	FY2022/3 (t-CO₂)	FY2023/3 (t-CO₂)
Scope 1	All Group companies^*1	249,361	252,540
Scope 2	All Group companies^*1	22,666	18,714
Total	All Group companies^*1	272,027	271,254
(Reference) Scope 3	Four main companies^*2	-	142,889

*1 Legal entities included in the Daiei Kankyo Group during the reporting period.
*2 The four major companies include Daiei Kankyo Co., Ltd., Mie Chuo Kaihatsu Co., Ltd., DINS Kansai Co., Ltd., and Geo-Re Japan Inc.

Initiatives to reduce greenhouse gas emissions

We are pursuing various initiatives to reduce CO₂ emissions generated in the course of our business activities.

Energy
conservation

We are pursuing various initiatives to reduce greenhouse gases generated in the course of our business activities.
Recycling

We help to circulate resources and reduce CO₂ emissions by recycling a variety of waste materials and returning them to society.
Electricity
generation

We recover energy from waste with high efficiency and use it for power generation and heat utilization.
Company-owned forests

Our company-owned forests cover an area of approximately 8,170 hectares throughout Japan, and absorb approximately 44,000 tons of CO₂ per year.
Solar power generation

We have installed a mega solar power plant on the site of a former controlled final disposal site in Izumi City, Osaka Prefecture. We are generating renewable energy by effectively utilizing this site.

Environmental Management

Daiei Kankyo Co., Ltd. first obtained ISO 14001 certification in 1998. Since then, each of the Group’s business sites has successively acquired ISO 14001, Eco-Action 21(EA21), Kyoto Environmental Management System(KES), and other certifications as part of their efforts to efficiently reduce environmental impact and greenhouse gas emissions through steady environmental management activities.

Environmental rallies

We conduct group-wide environmental rallies, in which participants earn points for various environmental actions. These rallies are designed so that anyone can easily take part, including such campaigns as such as refusing to use plastic bags, saving water, and no overtime days.

Environmental education

On request, our group provides education on the environment, recycling, SDGs initiatives, and other topics at elementary and junior high schools, high schools, universities, and various other organizations.

Biodiversity Conservation

The Daiei Kankyo Group is fully aware that its business activities may have an impact on ecosystems, and is working to conserve biodiversity, which is one of the key issues for the building of Local　Circular Ecological Spheres.

Participation in the 30by30 Alliance for Biodiversity

In October 2023, we joined the 30by30 Alliance for Biodiversity, a joint alliance consisting of the national government, the Ministry of the Environment, NPOs, companies, and other bodies, formed with the aim of achieving the 30by30 target of preserving or protecting 30% of land and sea areas by 2030. We will contribute to the achievement of the 30by30 target through the expansion of OECM^* as Nature Symbiosis Sites, and information sharing with other alliance members.

*OECM (Other Effective area-based Conservation Measures)
Areas that contribute to the conservation of biodiversity other than nature reserves, such as company-owned forests and border zones between mountain foothills and arable flat land.

30by30 Alliance for Biodiversity (Ministry of the Environment website)(JP)

Accreditation as a Nature Symbiosis Site (site name: Daiei Kankyo Miyazaki Mimata Forest)

Our company-owned forest in Mimata-cho, Miyazaki Prefecture, has been certified by the Ministry of the Environment as a Nature Symbiosis Site.
Rare plants listed on the Red List by the Ministry of the Environment and Miyazaki Prefecture have been discovered in this certified area. We will continue to monitor and manage the area, as well as carry out timber production and landscape development. We will continue our efforts to conserve the richness of the natural environment and encourage humans to coexist with nature.

30by30 Alliance for Biodiversity Logo
Daiei Kankyo Miyazaki Mimata Forest

Nature Symbiosis Sites (Ministry of the Environment website)(JP)

Environment

Basic Approach

To Help Achieve Carbon Neutrality

Reduction of environmental impact

Transition in energy consumption

Climate Change Initiatives

Information disclosure based on the TCFD recommendations

Governance

Risk management

Strategy

Scenario analysis assumptions

Scenario analysis result

Metrics and targets

Daiei Kankyo Group’s greenhouse gas emission reduction targets

Initiatives to reduce greenhouse gas emissions

Energyconservation

Recycling

Electricitygeneration

Company-owned forests

Solar power generation

Environmental Management

Environmental rallies

Environmental education

Biodiversity Conservation

Participation in the 30by30 Alliance for Biodiversity

Accreditation as a Nature Symbiosis Site (site name: Daiei Kankyo Miyazaki Mimata Forest)

Energy
conservation

Electricity
generation