Specific Environmental Initiatives

Initiatives Aimed at Climate Change Issues

Basic Approach to Climate Change Issues

Problems stemming from climate change—which include natural disasters, water and food shortages, and depletion of resources—are increasing in severity. Since the implementation of the Paris Agreement in November 2016, the world has undergone drastic changes aimed at realizing carbon-free societies.

At SCSK, we believe that the resolution of societal issues through IT—including the alleviation of and adaptation to climate change risks—to be a priority. As a result, we not only provide our customers with efficient IT services and data center operation, but we also promote a wide range of IT solutions that lead directly to energy savings and reduced greenhouse gas emissions. For SCSK, initiatives aimed at resolving climate change are not only demonstrations of social responsibility and countermeasures in response to legal and regulatory risks; they are also initiatives that create business opportunities leading to improved competitiveness.

Working together with our customers—who are active in a wide range of industries, educational and research institutions, and partner companies, and based on our Corporate Philosophy of “Create Our Future of Dreams,” the SCSK Group intends to contribute through the power of IT to the realization of abundant and sustainable societies.

Management Related to Climate Change

At SCSK, we have acquired ISO 14001 certification, which is an environmental management system standard, and we have established a management review system that requires the approval of our environmental officer. In addition, in order to manage the climate change initiatives of each of our business departments in a company-wide, cross-departmental manner, we host environmental protection meetings at which we share future measures aimed at improving environmental performance.

With regard to company-wide energy consumption and greenhouse gas emissions, we regularly measure electricity consumption and CO2 emissions, set reduction targets, and implement various measures.

When looking at the environmental impact of the energy consumption and greenhouse gas emissions of our entire value chain, we must not only recognize the impact of our own offices and data centers, but also identify the impact of our customer’s use of the IT products and services we provide. The majority of this energy consumption and greenhouse gas emissions stems from our data centers and, for this reason, we believe that reducing these volumes is a priority issue.

(For our energy consumption and CO2 emissions targets and actual results, please see the environmental goals page)

Risks and Opportunities with Regard to Climate Change

SCSK identifies and prioritizes the frequency and magnitude of risks and opportunities involving climate change on an individual basis, for each of its business divisions. We then determine specific areas in which to implement our environmental initiatives based on that priority ordering.

We are currently engaged in various initiatives based on our awareness of the following major risks and opportunities.

Major Risks

Regulatory Risks - Cost increases due to purchasing of emissions credits, which would arise in the event of SCSK failing to achieve its greenhouse gas emissions reduction targets as established in accordance with the Tokyo Environmental Security Ordinance
Physical Impact Risks - Impact on business operations that could arise as a result of the electrical supply becoming unstable due to natural environmental changes or natural disasters
- Possibility of difficulties arising with regard to business continuity in the event of damage or destruction to SCSK Group facilities and equipment, etc., or other such states arising due to natural disasters
Other Risks - Impact to the procurement of funding that could arise in the event that investors judge that the company’s efforts towards climate change are not sufficiently proactive

Major Opportunities Ordinance

Opportunities as a Result of Regulatory Issues - Avoidance of the need to purchase emissions credits through fulfilling obligations to reduce greenhouse gas emissions in accordance with the Tokyo Environmental Security Ordinance
- Cost reductions resulting from more effective energy usage
Opportunities as a Result of Physical Impacts - Expansion of service provision of cloud-type energy management systems for achieving more efficient energy usage, in cooperation with electric power companies and other partners

Validation of Greenhouse Gas Emissions

SCSK submits the following reports to the Tokyo Metropolitan Government for applicable, large-scale business locations in accordance with the Tokyo Cap-and-Trade and Carbon Reduction Reporting programs, which are both based on the Tokyo Environmental Security Ordinance.

Communicating With Investors: Cooperation with the Carbon Disclosure Project (CDP)

In recent years, a trend towards incorporating ESG (Environmental, Social and Governance) related aspects into investment decisions has been observed amongst institutional investors, and ESG-related information (as opposed to just financial data) has become increasingly important in communicating with investors.

As one aspect of this ESG-related communication, SCSK is cooperating with the Carbon Disclosure Project (CDP; an initiative through which institutional investors request disclosure of information concerning corporate initiatives for combating the problem of climate change) through the proactive disclosure of information.

Key Initiatives 1: Improving Energy Efficiency at Our Data Centers

SCSK is working to achieve high-efficiency operation and improved energy-saving at its data centers, through high-quality operation (such as in finely tuned air-conditioning control) and capital investment (such as in updating and replacing equipment, and carrying out functional improvement work to equipment and facilities). Performance is monitored using the PUE* metric, along with other performance indicators.

We also establish and operate robust data centers that will protect important social infrastructure from the threat of natural disasters; including massive typhoons and tornados, for which there are concerns of more frequent occurrences as a result of the impact of climate change.

(For more details, please refer to the Promoting Green IT (Environmental Initiatives at Our Data Centers) section.)

*PUE (Power Usage Effectiveness): A metric that indicates the electrical efficiency of a data center. It is calculated as the overall facility-wide power consumption divided by IT device-related power consumption at the data center. The closer the resulting PUE value is to 1.0, the better the electrical efficiency of the data center is deemed to be.

Key Initiatives 2: Energy Savings at Our Offices

At SCSK, we were one of the first companies in our industry to carry out working style reforms, with the implementation of our Smart Work Challenge in fiscal 2013. As well as optimizing business processes and reducing overtime, we are engaged in reducing the environmental burden generated by energy consumption through our business activities.

In fiscal 2015, we began promoting eco-friendly working styles such as working from home and remote conferencing, which reduced the need for our employees to travel for the sake of their work.

We implement office energy saving initiatives on a daily basis, and permit casual clothing styles throughout the year; this includes, but is not limited to, casual clothing campaigns such as Cool Biz in the summer and Warm Biz in the winter.

Key Initiatives 3: Developing Products and Services that Contribute to Reducing Greenhouse Gas Emissions

Working in collaborative development with research laboratories at the University of Tokyo, SCSK has built and commercialized the Prime Eco system; a system that enables unified control of natural (renewable) energy and storage cells and achieves increased efficiency in energy usage.

Through this product, SCSK is able to cater to a wide variety of customer needs, including the following: introducing power-saving measures and reducing electrical power costs; securing organizational independence in terms of electrical power and improving business continuity (BCP contingency measures) for in the event of a disaster or emergency; reducing CO2 emissions as a step towards achieving the realization of a low-carbon society; and facilitating stable and effective use of natural energy (renewable) sources.

Additionally, although the supply capacity of natural (renewable) power generation systems is often dependent on climatic conditions, we are seeking to resolve and overcome this issue through the use of large-scale rechargeable lithium storage cells, which function as a mechanism for stable supply and effective power usage from solar power generation.

Actual Energy Usage and CO2 Emissions Data

To manage company-wide energy usage and greenhouse gas emissions, SCSK carries out periodic checks to ascertain power consumption and CO2 emission levels, sets reduction targets, and implements various policy measures to achieve them.

(For our energy consumption and CO2 emissions targets and actual results, please see the environmental goals page)

Initiatives for Conserving Resources and Reducing Waste Output

Basic Thinking with Regard to Conserving Resources and Reducing Waste Output

In addition to being a global environmental preservation issue, the conservation of resources and reducing waste are also initiatives that lead to overall cost reductions as a company. The waste output by SCSK consists mainly of waste paper and other general waste generated by our offices, and waste plastics and metal scraps generated by the activities of our offices and data centers.

Based on an awareness of these facts, SCSK engages in initiatives centering primarily around recycling and waste reduction, while at the same time conducting awareness raising activities for its employees from the perspectives of both environmental preservation and cost reduction.

Management in Relation to Conserving Resources and Reducing Waste Output

SCSK sets company-wide environmental targets for conservation of resources and reduction of waste output at its Environmental Conservation Committee (which is chaired by the company’s Corporate Environmental Officer), and adopts an organizational structure for overseeing and supervising the actual performance of its initiatives in each business division.

Paperless Initiatives

SCSK promotes paperless meetings throughout the company. Departments implementing these initiatives have achieved reductions in printed paper volumes of 30 percent or more. Our paperless initiatives include not only standard meetings but extend to board of director meetings as well.

Reducing General Waste Output in Our Day-to-Day Business Operations

At SCSK, we are working to reduce the amount of general waste that we produce through the use of sustainable resources in our day-to-day business operations. For example, when storing software, we recommend that our employees and partner companies use electronic (i.e. downloadable) data storage media instead of disc-based media such as CDs; and that when providing software to customers they should use easily recyclable packaging materials such as paper wherever possible. In this way, we are endeavoring to reduce waste in collaboration with our stakeholders.

Actual Waste Output Data

SCSK sets company-wide targets for reducing general waste output, and works to ascertain actual performance data and disclose information on a regular basis.

(For our environmental targets and actual amounts of waste generated, please see the environmental goals page)

SCSK does not produce any harmful waste through its business activities.

Reducing Electronic Device Waste

After following internal rules regarding the deletion of data, SCSK hands used IT devices and other electronic devices over to contracted service providers for recycling.

When considering the electronic device life cycle, it is also important from the perspective of reducing waste output to suppress the number of actual PCs, mobile terminals and other devices being used to an appropriate level, by means of through inventory management and effective operation. SCSK endeavors to ensure the appropriateness of the number of devices in use through centralized management of inventory and operational status of devices being used for work purposes in each business division, by a single, dedicated department.

Initiatives Aimed at Reducing Water Usage

Basic Approach to Water risks and Water Usage Reductions

There is a growing shortage of water resources across the world, and societies therefore expect companies to manage and reduce their use of water. In particular, for companies whose water usage is extensive in terms of their entire value chain—including the production of raw materials, and for companies that operate in regions where water shortages are a real concern, water is an important risk factor that impinges upon their business continuity.

At SCSK, water usage centers primarily on our data centers and offices, with air-conditioning and cooling at our data centers accounting for a comparatively large proportion of our water usage. Although our water usage is not excessive among ICT sector companies, it is a fact that society is placing increased demands on reducing water usage and that water-related risks are growing. Consequently, we believe that reducing water risks—particularly at our data centers—and reducing water usage to be critical, and we are implementing measures accordingly.

Key Initiatives: Efficient use of Water at Our Data Centers

In order to guarantee the stable performance of servers and other IT equipment, some of the air-conditioning and cooling equipment at our data centers requires the use of water. At SCSK, the temperature and humidity of each area and each rack within our data centers is monitored in real time, and they are managed in a center-wide, integrated fashion. The monitoring room optimizes the data center environment in a meticulous manner, thereby minimizing excess and loss due to air-conditioning and cooling and so, in turn, leading to reduced water usage.

Environmental Performance Data

Scope: SCSK Corporation (the sum total of 24 offices, 8 data centers, and 1 warehouse in Japan)
Duration: from April to the following March

Download environmental performance datapdf(47KB)

Environmental Accounting

Scope: SCSK Corporation (the sum total of 24 offices, 8 data centers, and 1 warehouse in Japan)
Duration: from April to the following March

Download environmental accountingpdf(30KB)