Contribute to a clean global environment Mitigate and adapt to climate change

Theme

Mitigate and adapt to climate change

Policy

The Ricoh Leasing Group has set its target for net-zero emissions under Scope 1 and 2 for 2030, and aims to reduce its own CO2 emissions to net-zero through thorough energy conservation, while contributing to the realization of a decarbonized society by promoting renewable energy and expanding the use of environmentally friendly products. In addition, amid concerns about the tight supply and demand of resources and energy, we will aim for sustainable management, efficient use of natural resources, and significant waste reductions. We promote the reuse and recycling of facilities and equipment after leasing ends, as well as the sharing of rental equipment, thereby promoting the effective use of resources and contributing to the realization of a recycling-oriented society.

The increase in greenhouse gases, principally carbon dioxide (CO₂), has resulted in various impacts and damages to the natural environment and human life in many parts of the world, and the severity of these impacts has led to the term “climate crisis.” Since the 2015 Paris Agreement, which was agreed upon in an effort to mitigate climate change, companies have been called upon to work on reducing greenhouse gas emissions in their business activities. In response to the SBTi,^※ an international framework that calls for greenhouse gas reduction targets consistent with scientific findings, which raised the standard for setting targets to 1.5°C, the Ricoh Leasing Group has set a goal of achieving zero CO₂ emissions throughout its value chain by 2050. Additionally, in September 2023, we moved up our targets for net zero emissions in Scopes 1 and 2 to 2030. With regard to the baseline year for the target, with the addition of Welfare Suzuran's emissions to Group results in FY2023, we have set FY2023 as the new baseline year for our CO₂ reduction efforts. To achieve our new targets, we will identify risks and opportunities in the Group and contribute to solving social issues through our efforts to "contribute to a clean global environment," one of our material issues.

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  SBTi (Science Based Targets initiative): A joint initiative that encourages companies to set reduction targets consistent with scientific findings toward the goal of limiting the increase in average global temperatures due to climate change to 1.5°C above preindustrial levels.

Medium-to Long-Term CO₂ Reduction Targets and Results (Scope 1+2)

In FY2023, Welfare Suzuran Co., Ltd. and 25 small business sites belonging to Ricoh Leasing were included in our environmental data calculations for the first time, bringing the total to 38 business sites, resulting in an increase in the figures for each type of energy. At the business sites included as of last year, electricity consumption underwent a year-on-year decrease as a result of energy-saving activities. Company vehicles are being switched to hybrid vehicles and EVs, and the switch for gasoline-powered vehicles has already been completed, bringing the total number of EVs deployed to four. After purchasing and redeeming 869 t-CO₂ of the Ricoh Leasing Group's electricity with tracked FIT non-fossil certificates from our solar power generation facilities, total CO₂ emissions amounted to 542 t-CO₂.

Mid-to long-term CO₂ reduction target (Scope 3)

Scope 3 emissions account for 99.9% of the Group's GHG emissions and, by our efforts since fiscal 2013 to calculate and disclose Scope 3 emissions, and by estimating and disclosing CO₂ emissions to customers when they use leased equipment, we have been working jointly with customers toward CO₂ reduction, promoting the spread of environmentally sound equipment.
In FY2023, Category 1 and Category 13 emissions decreased slightly due to the revision of emission intensity, but total Scope 3 emissions increased 0.4% from the previous year to 1,011,701 t-CO₂ due to an increase in real estate in Category 2.

The calculation of CO₂ emissions (Scope 1, 2, and 3) is subject to third-party assurance by Sustainability Accounting Office, Inc.

Third-party assurance of CO₂ emissions (PDF 332KB)

Third-party assurance of CO₂ emissions

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  Total executed lease and installment sales contracts in the renewable energy sector, as well as solar power generation projects and equity investments

With "contribute to a clean global environment" as one of its material issues, the Ricoh Leasing Group is working, from the perspective of reducing CO₂ emissions, to combat global warming and promote renewable energy, i.e., clean energy sources that do not emit greenhouse gases. With the start of the FIT system, we have arranged financing projects for solar power plants, and have also worked on other power sources such as wind, biomass, and small-scale hydropower.
In 2018, we began to invest in becoming a power generation provider ourselves, working on a wide range of projects from those under the FIT system to PPAs, and as of March 2024, we have 499 power generation sites with a total of 177 MW of output. In FY2023, the total amount of cumulative investments amounted to 313.8 billion yen, the result of initiatives including a silent partnership investment in an SPC that is undertaking a new geothermal power generation project. Through proactive investment going forward, we will continue our efforts to realize a decarbonized society through our business.

On-site PPA schemes are one of the most promising means of converting consumed electricity to renewable energy, but in some cases, the effective use of surplus power can be a challenge. This project not only supplies electricity for in-house consumption from our solar power generation equipment installed on the roof of the Higashi Ogishima Logistics Center, but also achieves self-wheeling of electricity that cannot be consumed to another location by using the "Self- Wheeling Support Service" provided by Digital Grid Corporation, our partner in this project.
As a result of this initiative, not only was electricity consumption at the Higashi Ogishima Logistics Center reduced by approximately 76%, but also surplus electricity was wheeled to another site, thereby contributing to the switching of electricity consumption at the other site to renewable energy.
By providing this and other solutions that contribute to the environment, we will continue to support our customers' decarbonization operations.

Salesperson
Daiki Shoji
Sales Section 2 Environment and
Energy Sales Department Environment
and Real Estate Sales Division

Following its solar power generation business, the Ricoh Leasing Group is expanding its business into other areas of renewable energy as part of its efforts to decarbonize the industry. Of these, one particularly promising source is geothermal power generation, which uses heat resources extracted from the ground, making it a stable energy source that is not affected by time of day or weather conditions. In March 2024, we made a silent partnership investment in the SPC Waita No. 2 Geothermal Power Co., Ltd., the first such investment by our Group.
For this project, Furusato Netsuden Co., Ltd. (Below, "Furusato Netsuden") will sponsor the development of a power plant in Oguni Town, Aso District, Kumamoto Prefecture, with the aim of starting operation in March 2026. This will be the second geothermal power plant (installed capacity of 4,995 kW) in the area, following the Waita No. 1 Geothermal Power Plant, which is already in operation, and was developed by the Furusato Netsuden and Waitakai LLC, which was established by local residents. In these projects, a portion of the income from electricity sales is returned to the community and used for community development, while the hot water and steam used for power generation undergoes secondary use in greenhouse cultivation before being returned to the ground. In addition, new jobs are expected to be created in the local area through the operation of the power plant and the use of thermal resources.
This project, which makes a direct contribution to society, is one that I find highly rewarding. As such, our involvement does not stop at investment, and we are still working with Furusato Netsuden and the local community to create new value. We will continue to contribute to the realization of a prosperous future by pursuing initiatives that simultaneously create environmental value through renewable energy and social value that leads to the revitalization of local communities.

Customer
Toshihiro Takekoshi
Representative Director
Denritsu Co., Ltd.

Solar sharing is a system in which solar power generation equipment is installed in the space above agricultural land, and solar power generation is carried out alongside farming. The system is given its name based on the fact that sunlight is shared between power generation and agriculture. Japan faces the social challenges of an aging and decreasing agricultural workforce, and the amount of abandoned farmland has been consistently increasing. The popularization of solar sharing is expected to improve this situation by increasing income from solar power generation and increasing the number of new farmers. The Ricoh Leasing Group has provided financial support for the Kawabe solar power plant we developed in Gifu Prefecture since its initial stages.
This is one of the largest solar sharing power plants in Japan, in which Koganeiro LLC sells electricity under the FIT system, while Kirana Noen, an agricultural production corporation, grows shiitake mushrooms under the solar panels. The shiitake mushrooms are sold at a nearby roadside station as freshly harvested products, and are also sold nationwide as processed products online, thus achieving a good balance between power generation and farming. We hope to continue working together to make effective use of abandoned farmland, increase local employment, and revitalize local economies.

Cultivation of shiitake mushrooms on logs

In response to the growing demand for sources of renewable energy, the Ricoh Leasing Group offers "Solar Assist," a service that provides support from various angles to power generation companies that own small-scale solar power plants throughout Japan. For maintenance operations, which play an important role in this service, we have formed a partnership with Enetech Co., Ltd. to provide safe and reliable power plant operation support.

Customer/Maintenance Company
Left:Atsushi Matsumoto
Director and Executive Officer
Sendai Head Office Enetech Co., Ltd.
Right:Rie Fujii
General Manager of O&M Sales
Division Enetech Co., Ltd.

Since our founding, our company has been committed to providing the highest quality services by applying the expertise we have developed through electrical installation and electrical safety management to the operation and maintenance of renewable energy. Today, as a group of professionals in the solar power generation business, we are making full use of the latest and most suitable equipment and inspecting approximately 4,000 power plants per year from our 10 locations in Japan. The Ricoh Leasing Group operates more than 500 solar power plants, many of which are maintained by us. The Solar Assist service provided by Ricoh Leasing Group supports the management of power plants for companies that wish to operate a solar power generation business but lack the expertise to do so, or for companies that find it difficult to manage their own power plants due to a lack of personnel. As part of this service, our company takes on the role of conducting maintenance. If the management of the power plant is neglected, not only will it not be able to generate the expected amount of electricity, but it will also lead to the risk of equipment damage and fires. We work together to reduce these risks and maximize the performance of power plants. In line with Ricoh Leasing Group's medium- to longterm vision to "Become a Circulation-Creating Company" and its desire to further expand renewable energy, we hope to continue our role as a good partner by providing maintenance services that support power plants' safe and secure operation.

With the goal of achieving a carbon neutral society by 2050, we are focusing on electric vehicles (EVs) to provide more customers with environmentally friendly means of transportation.
In FY2023, we handled 694 EVs (including HVs, PHVs, EVs, and FCVs), accounting for 18.8% of the total number of vehicles handled. As a major initiative, we have put in place a sales tool that can simulate the benefits of EV deployment, allowing us to propose EVs to a greater number of customers. The use of this tool helps illustrate the specific benefits and challenges associated with EV deployment, and facilitates business negotiations.
In the future, we will establish a one-stop service system by pursuing alliances with various partners, including for provision of EV charging facilities and their maintenance, so that we can offer optimal and efficient EV use through energy management. In addition, we will further strengthen cooperation with automakers and dealers to support the deployment of EVs by our customers.