Management of Climate Change Issues
Endorsement of the TCFD Recommendations
In April 2021, the SCSK Group endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)*. Following these recommendations, we will assess and analyze the risks and opportunities that climate change has on our business operations. We will further expand our disclosure of information on the results of this analysis and the SCSK Group’s measures in response.
- * Task Force on Climate-Related Financial Disclosures: A task force established by the Financial Stability Board in order to reduce the risk of instability in financial markets related to climate change. The task force has presented a framework for companies who are voluntarily disclosing information on the climate-related risks and opportunities.
Accreditation of Our 1.5°C Target by SBTi
In June 2021, the SCSK Group’s medium- to long-term greenhouse gas reduction targets were accredited under the Science Based Targets initiative (SBTi)*1.
Today, as the move toward digitalization of business accelerates, the role of data centers as a foundation supporting IT infrastructure will continue to grow. At the same time, data centers will consume ever larger amounts of electricity following the increase in data volume and higher performance nature of equipment.
SCSK’s data centers have been working to reduce the amount of electricity they consume in order to lower our greenhouse gas emissions. Moving forward, we will promote the use the natural energy and work toward further lowering greenhouse gas emissions. With the aim of achieving net-zero greenhouse gas emissions by 2050, we will work toward achieving a carbon-free society and contributing to the development of a sustainable society.
SCSK Group’s GHG Reduction Target
- *1 SBT (Science Based Targets) initiative: An initiative calling for companies to establish reduction targets consistent with scientific knowledge in order to stop the increase in average worldwide temperature.
- *2 Scope 1: Direct emissions of greenhouse gases from a company’s own business activities
Scope 2: Indirect emissions associated with the use of electricity, heat and steam, etc., supplied by other companies.
- *3 Scope 3: Indirect emissions not included in Scope 1 and Scope 2 (emissions of other companies related to a company’s own business activities).
Management System for Climate Change Issues
SCSK has acquired ISO 14001 certification, which is an environmental management system standard. We host environmental conservation meetings to share future measures for improving environmental performance and other activities in order to manage the climate change initiatives of each Business Group in a company-wide manner.
We regularly monitor energy use and greenhouse gas emissions at the SCSK Group’s offices and data centers, and have set reduction targets, based on which various measures are underway.
Climate Change Risks and Opportunities
At the SCSK Group, we determine specific fields to take action based on a priority ranking of the frequency and severity of risks and opportunities related to climate change.
Japan stipulates numerous environmental laws and ordinances, for example, the Act on the Rational Use of Energy and the Tokyo Environmental Security Ordinance. SCSK submits the medium to long‐term plan and the reports to government for applicable.
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.
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 energy 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 energy efficiency of the data center is deemed to be.
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.
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.
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.
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.
We conduct environmental training through e-learning for executives and employees to enhance employees' awareness of environmental issues and opportunities.
Social Contribution Activities
We strive to contribute to society through a variety of volunteer and charity activities, including the provision of support for environmental activities and community activities. For more details, please see the Community Involvement and Development page.
Third Party Verification and Assurance
We obtain Third Party Verification and Assurance from Lloyd’s Register Quality Assurance Limited concerning Scope 1, 2 and 3 emissions for the disclosure of greenhouse gas Emissions. The scope is set as SCSK Group companies excluding those outside of Japan. Scope 1 and 2 emissions are for fiscal 2020 and Scope 3 emissions are for fiscal 2019. Going forward, we will continue to disclose reliable information.
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Environmental Performance Data
Scope: SCSK Group (Excluding overseas)
Duration: from April to the following March