Action against climate change
Activities to Reduce Greenhouse Gas (GHG) Emissions
Recruit Group aims to achieve carbon neutrality in GHG emissions*1 through our business activities by FY2021, and achieve carbon neutrality in GHG emissions*1 through our business activities and its entire value chain by FY2030*2.
In an effort to serve as responsible corporate citizens, the Company has committed to focus on reducing greenhouse gas (GHG) emissions to address climate change. Our target is as follows;
- The Company's target is to achieve carbon neutrality in greenhouse gas (GHG) emissions by FY2021 through its business activities*1.
- The Company's target is to achieve carbon neutrality in GHG emissions by FY2030 through its business activities and its entire value chain*1.
Before we made the commitment above in May 2021, our target was to reduce the GHG emissions in Japan by 25% from FY2008 levels by FY2020. We set this target in 2010. In FY2019, we achieved 48.8% reduction in GHG emissions*3 in Japan compared to FY2008, greatly exceeding our target of a 25% reduction.
*1 GHG emissions through business activities are the sum of direct emissions from the use of fuels in the owned or controlled sources ("Scope 1") and indirect emissions from the use of purchased electricity, heat, or steam in the owned or controlled sources ("Scope 2"). GHG emissions through the value chain are indirect emissions other than Scope 1 and 2, occurring in the value chain. Carbon neutrality includes reducing the GHG emissions as well as offsetting residual emissions.
*2 Declared at May 17, 2021
*3. We receive assistance from Waste Box and JMA Consultants Inc. for our GHG emission calculations in Japan based on the Green Value Chain Platform formulated and released by the Ministry of Environment (MOE) and the Ministry of Economy, Trade and Industry (METI). The data covers the following companies; Recruit Holdings Co., Ltd. / Recruit Co., Ltd. / Staff Service Holdings / Recruit Staffing Co., Ltd.
What areas do our GHG estimates cover?
In addition to carbon emissions from energy use in our offices, we consider ourselves responsible for GHG emissions from all the processes involved in producing our products and services. Based on this concept, our GHG estimates cover employee activities and the whole value chain of our products and services. We work with our customers, clients, business partners, and employees in engaging in a wide range of activities to prevent further global warming.In specific terms, besides office energy consumption, we cover a wide range of corporate activities, such as water use, waste treatment, employee (including temporary staff) commuting and travel, sales activities, and the manufacturing of paper used in offices and for advertisement. Also covered are the entire value chain of products and services, including raw material procurement, papermaking, printing, distribution, disposal, and recycling involved in the publication of information magazines, and the manufacturing, distribution, use, disposal, and recycling of information equipment involved in internet services.
Business activities
- Use of electricity, natural gas, water, and sewage in offices
- Disposal of industrial and general waste
- Use of office paper (material procurement, papermaking, printing, distribution, disposal, recycling)
- Software development and acquisition
- Use of third-party services, e.g., call centers
Value Chain (product, service)
Raw materials, manufacturing
- Raw material procurement, papermaking, printing,and bookbinding for information magazines
- Raw material procurement and manufacturing for servers/peripheral equipment
- Content production and system building
- Clients' use of peripheral equipment
Distribution
- Distribution from raw material procurement for information magazines to disposal of their copies
- Service use
- Server operation (data center servers and air conditioning power)
- Clients' use of peripheral equipment
Travel and Commute
- Employee commuting (including temporary staff), business travels, sales visits, job relocation, etc.)
Disposal and recycling
- Amount of information magazine copies left in racks and booksellers and use of energy in transportation and recycling
- Amount of information magazine copies disposed of by customers and use of energy in disposal by customers
Target and Progress to Reduce Greenhouse Gas (GHG) Emissions
Calculation Method
We began calculating our GHG emissions in FY2010. We expanded the scope of calculations in 2012 upon the change of our governance structure. Also, we revised the method of classifying travel and commuting expenses in 2015 upon expanding our overseas businesses.
To ensure better accuracy, we reviewed our pre-2015 emission calculation processes, revised the emissions intensity used, and performed recalculations based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.2) and the Emission Factor Database for Corporate Greenhouse Gas Emissions Accounting Over the Supply Chain (Ver. 2.4), both formulated jointly by the Ministry of Economy, Trade and Industry (METI) and the Ministry of the Environment (MOE).
From FY2019, we started using the GHG Protocol as the basis for calculation.
Greenhouse Gas (GHG) Emissions of Recruit Group
| Item | Unit | FY2017 | FY2018 | FY2019 | |
|---|---|---|---|---|---|
| GHG emissions*1, 3 | Total of Scope 1, 2, 3 | t-CO2 | ー | ー | 934,257 |
| Scope 1 | ー | ー | 12,607 | ||
| Scope 2 | ー | ー | 29,546 | ||
| Scope 3 | ー | ー | 892,104 | ||
| Emissions intensity*4 | t-CO2/Billion yen | ー | ー | 17.6 | |
| Energy Consumption | Electric power | kWh | 98,047,856 | 120,067,448 | 409,374,856*5 |
| Gas | N㎥ | 1,896,810 | 2,710,643 | 45,677,647*5 | |
※Independent assurance emissions calculations for Recruit Holdings, Media & Solutions SBU, and Staffing SBU can be found here. Independent assurance for emissions calculations for Indeed can be found here.
Greenhouse Gas (GHG) Emissions in Japan*2
| Item | Unit | FY2008 | FY2017 | FY2018 | FY2019 | |
|---|---|---|---|---|---|---|
| GHG emissions in Japan*1,2 | Total | t-CO2 | 294,483 | 188,137 | 171,709 | 150,800 |
| Progress towards our target (Reduction rate from FY2008) | % | ー | 36.1 | 41.7 | 48.8 | |
| Scope 1 | t-CO2 | 1,979 | 2,983 | 980*6 | 917*6 | |
| Scope 2 | t-CO2 | 12,276 | 10,289 | 5,934*6 | 5,635*6 | |
| Scope 3 | t-CO2 | 280,227 | 174,865 | 164,795 | 144,248 | |
Changes in Greenhouse Gas (GHG) Emissions in Japan*7
Scope 3 split by source in Japan*7
| Item | FY2016 | FY2017 | FY2018 | FY2019 |
|---|---|---|---|---|
| Emissions from magazine business | 79.7% | 78.1% | 75.7% | 76.2% |
| Office supplies | 7.9% | 5.9% | 8.7% | 6.6% |
| Business travel | 3.7% | 4.1% | 4.4% | 4.6% |
| IT servers | 3.7% | 6.1% | 5.2% | 6.1% |
| Commuting | 3.6% | 4.1% | 4.8% | 5.6% |
| Others | 1.4% | 1.7% | 1.2% | 0.9% |
| Total | 100% | 100% | 100% | 100% |
*1. GHG emissions through business activities are the sum of "Scope 1" and "Scope 2" below. GHG emissions through the value chain are "Scope 3" below. Carbon neutrality includes reducing the GHG emissions as well as offsetting residual emissions. The items required to be calculated in each Scope are the following:
Scope 1: Direct emissions from the use of fuels in the owned or controlled sources. (mainly from gas)
Scope 2: Indirect emissions from the use of purchased electricity, heat, or steam in the owned or controlled sources. (mainly from electricity)
Scope 3: Other indirect emissions occurring in the value chain. (emissions in business commute/travel and information magazine publications, etc.)
*2. We receive assistance from Waste Box and JMA Consultants Inc. for our GHG emission calculations in Japan based on the Green Value Chain Platform formulated and released by the Ministry of Environment (MOE) and the Ministry of Economy, Trade and Industry (METI). The data covers the following companies; Recruit Holdings Co., Ltd. / Recruit Co., Ltd. / Staff Service Holdings / Recruit Staffing Co., Ltd.
*3. We receive assistance from Waste Box for Recruit Group GHG emission calculations complying with GHG protocol.
*4.The formula for calculating GHG emission intensity is (Scope 1 + 2 t-CO2) / (sales revenue, billion yen). It was 42,153t-CO2/2,399 in FY2019.
*5. Dividing electric power usage and gas usage from the Recruit GINZA 8 (Registered Head Office) and Gran Tokyo SOUTH TOWER (Location of the Head Office) by their office areas to set each emission factor. We multiply the factor by the area of the offices where we cannot obtain data to calculate the total amount. The year-on-year increase from FY2019 is due to the increased data coverage.we cover.
*6. The total floor area of the leased buildings of companies within Recruit Group in Japan was used as the activity amount to calculate emissions. The GHG emissions were reduced due to the exclusion of some buildings from FY2018 through the change of the lease contract body.
*7. Estimate based on the Green Value Chain Platform formulated and released by the MOE and the METI.
Our GHG reduction efforts
We take various measures to reduce GHG emissions from our corporate activities and over the value chain of our products and services, which include:
Corporate activity
- Going paperless
- Promotion of remote work
- Pushing forward with energy-saving efforts and use of renewable energy
Value Chain (product, service)
Raw materials, manufacturing
- Optimization of print runs
- Procurement of energy-efficient servers and peripheral equipment
Distribution
- Optimization of the number of copies distributed
Service use
- Shifting customer interviews from face-to-face to online
- Paper consumption reduction through online application forms and web-based magazine manuscripts
Disposal and recycling
- Recycling of magazine copies remaining in racks/bookstores
- Facilitating information magazine recycling by customers
Initiatives at Offices
To help reduce GHG emissions toward a green recovery, one of the Recruit Group's key operational bases, the Recruit Ginza 8 Building (Chuo-ku, Tokyo; commonly known as "G8") switched its power plan from conventional fossil fuel-generated electricity to 100% renewables, such as solar- and biomass-generated electricity in August 2020. The plan is classed as 100% renewable, and is based on Renewable Energy Attribute Certificates.* These consist primarily of non-FIT renewable power sources and Green Energy Certificates, in addition to J-credits (derived from renewable energy) and Non-fossil Fuel Energy Certificates with Tracking Information. In effect, this power plan has net-zero greenhouse gas emissions.
A portion of the revenue from Renewable Energy Attribute Certificates, and primarily that generated through the sale of Green Energy Certificates, is used to manage and maintain green power generation facilities, helping to encourage the use of renewable energy.
*Renewable Energy Attribute Certificates represent electricity generated and delivered to the grid from a renewable source. They comply with the Greenhouse Gas Protocol which establishes global standards to measure and manage emissions. Certificates permitted for RE100 reporting in Japan are Green Energy Certificates, J-credits (derived from renewable energy), and Non-fossil Fuel Energy Certificates with tracking information.
Initiatives Regarding Online Services
IT technology is a core element of all of the Recruit Group's businesses. We have sought to consolidate our data centers and IT equipment, and use environmentally friendly data centers. Further efforts to reduce the environmental impact of our online services includes investing in the very latest IT and network equipment, through which we have reduced the amount of equipment and lowered our power consumption. This way, we have been striving to reduce total GHG emissions from our online service operation.
Initiatives Regarding Information Magazine Services
The Recruit Group publishes a wide range of magazines with an extensive nationwide readership in Japan through our businesses in the Media & Solutions SBU; in 2017, this was approximately 180 million copies. While we continue to ensure that our free magazines are readily available in railway stations and shops throughout Japan and our paid magazines at bookstores and kiosks across the country, we make every effort to run our print-media business with a strong focus on addressing climate change.
We continually take steps to minimize the impact of our environmental footprint, from the production stage through to distribution. Measures we have taken include reducing the thickness of the paper while maintaining a quality texture and avoiding show-through. Additionally, we ensure that all offcuts inevitably produced from the bookbinding process are carefully collected and recycled.
Once printed and bound, the publications make their way to magazine racks across Japan. Our goal is to ensure that we also keep our carbon footprint as low as possible at the distribution stage. First of all, we manage our own fleet of haulage vehicles, allowing us to take full control of our magazine's supply chain. By optimizing delivery frequency and freight consignment efficiency, we have reduced the number of trucks on the road.
Furthermore, we utilize cutting-edge technology and AI to accurately calculate the exact number of copies that match the demand of each magazine rack at any location--what is known as the "takeaway ratio." This helps us ensure every magazine gets into the hands of every person who wants one and thereby minimizes leftover publications. Our contracted paper recyclers collect any surplus magazines that didn't reach readers and deliver them to paper manufacturers, where they are recycled into cardboard and other paper products.
Climate related risks and opportunities
We have identified climate related risks and opportunities for our businesses.
Short Term
Market risks: Non-availability or increased cost of raw materials
Use more IT tools to reduce paper consumption.
Acute physical risks: Increased severity of extreme weather events
We put in place a BCP (Business Continuity Planning) to prepare against natural disasters.
- We provide regular safety confirmation drills and lectures on initial disaster response to ensure employee safety.
- We have emergency stockpiles in place at all premises. Also, stocks are kept in external warehouses to allow delivery of relief supplies to affected areas in the event of a disaster.
- We have a web-based system in place that shows real-time information on affected areas and damage statuses.
Before signing a lease agreement, we check the property according to our evaluation criteria, including compliance with the new seismic standard, to prepare against earthquakes.
Reputation risks: Increased stakeholder concern or negative stakeholder feedback
We set reduction targets of achieving carbon neutrality in GHG emissions through our business activities by FY2021, and carbon neutrality in GHG emissions through our business activities and its entire value chain by FY2030.
Medium to long term
Technology risks: Unsuccessful investment in new technologies
We have an internal carbon price in place and calculate the shadow price of GHG emissions before making an investment decision for procurement of data center equipment.
Strategic & legal risks: Enhanced emissions-reporting obligations
We disclose our GHG emissions with improved data coverage.
Strategic & legal risks: Increased pricing of GHG emissions
We implement various measures to continuously reduce GHG emissions
Reputation risks: Increased stakeholder concern or negative stakeholder feedback
We set reduction targets of achieving carbon neutrality in GHG emissions through our business activities and its entire value chain by FY2030.
