Japan's largest homebuilder, Daiwa House Group, joined The Climate Group’s EP100 and RE100 initiatives in March 2018. Here, Kazuto Tsuchida, Representative Director and Senior Managing Executive Officer at Daiwa House, shares why a joined-up approach to corporate climate action makes sense for both business and the planet.
Why did Daiwa House choose to join both RE100 and EP100?
“At Daiwa House, we see climate change as one of the most serious threats facing human civilization. That’s why we’re taking action within our business activities to reduce our emissions – to do our part in keeping global temperature rise within the 2°C target adopted through the Paris Agreement.
“Both sourcing renewable energy and reducing energy consumption are essential strategies to achieve this. By 2030, we are aiming to sell more renewable electricity than the electricity we consume, and by 2040 we want to source all of our power from renewable energy sources. On top of that, we aim to double our energy productivity levels by 2040.
“The Climate Group’s RE100 and EP100 initiatives are the ideal way for us to showcase these commitments and the progress we are making, alongside other major companies taking a lead.”
What business benefits do you expect to see from sourcing renewables and doubling your energy productivity?
“We see numerous benefits in setting ambitious, motivating long-term targets for renewable electricity and energy efficiency. We are decarbonizing our business operations while enhancing our competitiveness at the same time.
“By doubling our energy productivity we expect to reduce energy costs, improve overall productivity, and enhance our competitiveness.
“By reducing our carbon emissions, we’re demonstrating to stakeholders that we’re serious when it comes to global commitments like the Sustainable Development Goals and the Paris Agreement.
“We’re also extending our efforts to the homes, buildings and communities that we construct. We believe decarbonizing both our own operations and helping our clients to do the same will bring us added value and support our future business needs.
Are your commitments to EP100 and RE100 helping to shift the market in Japan?
“As more and more leading companies around the world take part in global initiatives like EP100 and RE100, the demand for energy-smart technologies and renewable electricity will grow.
This demand will expand clean energy markets and bringing in more market players, which ultimately will create an environment where corporate consumers of all sizes can obtain these products and services at affordable prices.
“Daiwa House is both an electricity consumer and provider. Joining RE100 has given us the impetus to further expand our renewable energy infrastructure and increase the percentage of renewables in our energy portfolio.
“As the first construction company in the world to join both EP100 and RE100 at the same time, we will continue the fight against climate change by reducing our energy consumption in every way possible and converting to renewable energy sources for our electricity needs.”
What have you achieved so far?
“We have been in the business of generating electrical power from renewable sources since 2007 and we’re currently operating solar, wind and hydroelectric power systems with a total capacity of 230 MW - yielding 290,000 MWh of capacity. This is equal to about 60% of the electricity we consume for our business operations.
“In 2016, we managed to enhance our energy productivity (in terms of sales per unit of energy consumed) to about twice the level of 2005. We did this by improving the operating patterns of the systems we own as well as operate in every way possible, and by systematically updating equipment.”
What steps will you be taking to realize your goal of doubling energy productivity by 2040?
“We own and operate facilities such as offices, factories, hotels, stores and health clubs. In all of these buildings, the Group is selecting “Top Runner Energy-Efficient Facilities” where it is introducing energy-saving efforts and measuring the effects of doing so for future application.
“Beyond that, we allot a budget equivalent to 15% of our energy costs to investment in energy productivity – money that’s being used to reduce energy consumption by improving equipment efficiency and converting to more advantageous fuels.
“For newly constructed offices and hotels, we are proactively introducing advanced technologies for conserving, producing, storing and managing energy under our Net Zero Energy Building (ZEB) initiatives.”