Climate Change and Energy
Disclosure based on the TCFD recommendations
BASE Group views climate change as a key issue impacting on our business. We are working across the Group on climate change policy as a materiality (issue of importance) and in March 2023, signed up to the Task Force on Climate Related Financial Disclosures (TCFD). We will disclose all climate-related information in line with the disclosure recommendations of TFCD – Governance, Strategy, Risk Management, and Metrics and Targets.
Governance
BASE Group established the Sustainability Committee in March 2022 for the purpose of deliberating, coordinating, and monitoring the Basic Policy on Sustainability and other important matters related to sustainability, including materiality and proposed measures, as well as discussing and considering important matters for submission to the Management Committee. Agenda items arising from the Sustainability Committee that are deliberated and decided by the Management Committee are regularly reported to the Board of Directors, as well as their progress.
Led by the Representative Director and CEO, who chairs the Sustainability Committee, policies and measures decided by the Executive Committee are summarized by the ESG Department and implemented by each division of the Group.
Strategy
The scenario analysis performed by BASE Group, based on the characteristics of our business and the TCFD framework, identifies the risks and opportunities presented by climate change as follows.
1) Risk identification
2) Opportunity identification
Risk management
The Risk Management and Compliance Committee of BASE Group identifies risks in our business activities and discusses priorities to manage them.
The Risk Management and Compliance Committee is chaired by the Representative Director and CEO with members selected by the Chair. Held quarterly, the Committee reports back regularly to the Board of Directors on risks it views as particularly significant.
In the future, the department in charge of sustainability-related matters will report and propose recommendations on risks and opportunities associated with climate change to the Sustainability Committee as identified and evaluated with the cooperation of relevant departments within the company. It will promote company-wide responses to climate change. In addition, it will cooperate with the Risk Management and Compliance Committee to synthesize the key environmental risks related to climate change and social issues, including climate change issues raised by the Sustainability Committee, as company-wide risks.
Indicators and goals
The BASE Group calculates its GHG (※1) emissions as an indicators related to climate change. Our emissions over the last two full calendar years are as set out in the table below.
We aim to cut Scope1+2 emissions by 100% from 2022 levels by the end of FY2025. We are considering and executing actions to meet this target. As to Scope3 emissions, we are investigating and discussing how far this can be calculated, based on the special characteristics of our business.
Calculating GHG emissions as an initiative to tackle environmental issues such as climate change
Our GHG emissions are calculated as follows.
※1）Abbreviation of greenhouse gas
※2）Calculated according to market standards
Renewable energy use initiatives
As an internet services provider, a significant element of our climate impact is electricity consumption.
Since September 2023, BASE Group has purchased Non-Fossil Certificates, allowing our head office to switch to fully renewable sources of electricity for its entire consumption.
Non-Fossil Certificates validate the environmental value of electricity generated from non-fossil sources (certification that electricity is generated in a manner that does not emit CO2). This is a way for companies without the ability to generate their own electricity to contribute to tackling climate change by harnessing renewable electricity.
Further, BASE Group is also offsetting carbon emissions from electricity consumed (for 2022) in our retail spaces (Shibuya Modi, Laforet Harajuku) through purchase of credits derived from renewable energy (electricity), using the J-Credit Scheme.
Under the J-Credit Scheme, the government certifies the amount of greenhouse gas emissions (such as CO2) reduced through introduction of energy-saving equipment or removed by sinks in the form of properly managed forests, as “credits”. Credits created under the scheme can be used for various purposes, such as achieving the targets of the Nippon
BASE Group will continue to offset the carbon emissions from electricity use in its retail spaces with the aim of achieving zero net GHG emissions from the Group overall by the end of FY2025.
Environmental initiatives at the office
・Confidentiality and recycling (Mamoru-kun)
In our offices, there are dedicated recycling boxes (called “Mamoru-kun,” operated by Nihon Purple Inc.) for used documents. Going paperless by recycling paper and other measures, as well as promoting paper recycling in this way not only reduces our ecological footprint, it also improves task efficiency and helps to prevent breaches of information.
・Adoption of LED lighting and timer control
Electricity use has been limited by converting the head office to LED lighting and automating the operation of lighting, heating and cooling on a timer. The objective is to strike the balance of a pleasant office environment and reduced environmental burden.
・Adoption of recycled PET bottles
All drinks offered at events or to visitors come in recycled PET bottles. Recycled PET bottles are are made from polyester fiber produced from chemically-recycled used PET bottles. Recycling PET bottles reduces the CO2 emitted by new oil feedstock and the process of manufacturing.
・Business cards made from recycled paper
Since June 2023, all business cards used by our staff are made of recycled paper equivalent to A-grade recyclable paper. They combine eye-catching design with our effort to be efficient stewards of forest resources.
・Promoting purchase of green products
For part of BASE Group head office stationery needs, Tanomail eco products (Otsuka Corporation) are chosen for their environmental performance at every step from production to packaging.
・Waste separation
All waste originating from our head office is separated into six types as designated by the owner of the property.
We will continue to conduct our business operations in an environmentally friendly way by changing the way we work internally and through the services we offer.
Environmental Conservation Efforts in Business
We have implemented the following initiative across our various businesses:
Payment and Financial Services Business
We are taking actions to reduce the environmental impact of server CO2 emissions per transaction (one-time payment) generated in the information processing process when a product is purchased through the “Pay Later (Pay ID)” method. Based on the number of payments made using “Pay Later (Pay ID),” we donate a corresponding amount to the Japan International Forestry Promotion and Cooperation Center (JIFPRO), a public interest incorporated foundation that contributes to the reduction of greenhouse gasses through forest conservation and afforestation initiatives. This creates a cycle where online shopping contributes to environmental preservation. In this way, we aim to realize sustainable e-commerce where both the environment and the economy are compatible.
From Environment Day on June 5th (Monday), we started an initiative with “Pay ID” where shopping contributes to environmental preservation. An amount of money is donated to the Japan International Forestry Promotion and Cooperation Center (JIFPRO) based on the number of payments made using “Pay Later (Pay ID).”