Joining RE100

We joined RE100 (a powerful initiative led by The Climate Group, an international NGO, in partnership with CDP) in October 2019.
Moreover, as a “challenge for the future,” with the “future” envisioned as the year 2050, we aim to create a city that serves as an inspiration to the rest of the world by providing social value that only our company, with its wide range of businesses, can deliver. In particular, we have set the goal of procuring 100% of the electricity used in our business activities from renewable sources by 2050.

▶ Long-term environmental targets (Baseline year: FY2019)

Company (Consolidated) Business Activities　＜Scope1,2＞

• 2030: 46.2% reduction in CO₂ emissions 　　Renewable energy ratio of 50%
• 2050: Reduce CO₂ emissions to effectively zero　　　Renewable energy ratio of 100% (RE100)

Supply Chain of Business Activities　＜Scope3＞

• 2030: 30% reduction in CO₂ emissions *

*Updated with new target set (November 14, 2022)

Environmental Vision 2030

RE100

Response to TCFD recommendations

Response to TCFD recommendations (details)

Governance

We consider climate change to be an important issue and have established a system in which climate change is discussed and addressed by the Management Meeting, the decision-making body for management, and reported on annually to the Board of Directors for appropriate supervision. The ESG Promotion Group of the Corporate Affairs Headquarters, under the supervision of the Executive Officer of the Corporate Affairs Headquarters, is the project leader for the analysis of climate-related risks and opportunities in each business and collaborates with each business unit while also receiving advice from outside experts. We will share, promote, and disseminate the content of proposals made to the Board of Directors at the Sustainability Promotion Committee and the Tokyu Group Sustainability Promotion Committee.

Strategy

Establishing the general framework (worldview) for scenario analysis

Scenario analysis was conducted using the following scope, scenarios, and procedures. 
Under the “less than 2ºC scenario,” which envisages average global temperatures to have warmed by less than 2ºC at the end of the 21st century compared with pre-industrial levels (1760s to 1830s), the “transition risks” are more acute. As a result of such warming, the cost of electricity and energy-saving technologies will increase, and policies and regulations aimed at curbing global warming, such as carbon taxes, will be strengthened. Representing an important “opportunity,” it is then assumed that costs will decrease through the development of energy-saving technologies; the number of people using public transportation will increase due to heightened environmental awareness; and more people will express a preference for residing in environmentally-friendly properties. 
In the “4ºC scenario,” we assume a world in which “physical risks” are intensified and the number of users decreases. There will be increased renovation costs due to the rise in natural disasters and thus flooding of facilities, an outflow of customers, and new infectious diseases. 
In the following identification, review, and materiality assessment, we categorize climate change risks and opportunities as “transition risks,” “physical risks,” and “opportunities.” 
We are currently implementing responses to physical risks due to a significant incident. For more information on this, please refer to the “Business response” section along with the information on the direction of future efforts, including the results of this analysis.

Click here for response measures

Scope and method of the scenario analysis

Projects subject to analysis (conducted for each project)

Railway business, urban development business, retail business, hospitality business

Selected scenario: Range of temperature increase at the end of the century

Less than 2ºC Scenario (Scenario for Strengthening Regulations and Measures)

• Introduction of policies and strengthening of regulations to mitigate climate change.
• Greenhouse gas emissions will decrease and real emissions will be zero by 2050.
• Rise in sea level and changes in climate patterns due to temperature rise, but changes will be less severe than in other scenarios.

4ºC Scenario (Current Scenario)

• No introduction of policies or tighter regulations other than those currently envisioned.
• In some parts of the world, economic growth will lead to increased greenhouse gas emissions.
• As temperatures rise, natural disasters such as extremely hot days and heavy rainfall will become more severe.

How to conduct scenario analysis

Significant risk analysis

Risk severity was evaluated based on the “impact on each business” and the “degree of occurrence” of the event. The “Impact on each business” section analyzes the scale of the impact on those businesses that it is anticipated will be affected by climate-related events. The degree of occurrence of physical risks such as natural disasters is evaluated based on the IPCC’s* Fifth Assessment Report (AR5) . The transition risks are estimated and analyzed based on trends in future policy targets and plans yet to be introduced, such as environmental laws and regulations and carbon taxes, as well as the introduction of current policies. 
The financial impact is estimated for the railway and urban development businesses. The transition risks in the less than 2ºC scenario were mainly calculated based on electricity consumption and plans for the partial introduction of solar power generation. The physical risks in the 4ºC scenario are mainly based on the maximum inundation depth of river flooding and the impact of new coronavirus infections. As for the degree of impact on consolidation, we assume a wide range of impacts from physical risks in the asset-rich railway and urban development businesses. For the retail and hospitality businesses, we will estimate the financial impact and conduct in-depth evaluation and analysis in the future.

＊IPCC: United Nations Intergovernmental Panel on Climate Change

Significant transition and physical risks and their impacts

*1 Applicable period: Short term, two years or less; Medium term, three to five years; Long term, six years or more

*2 Impact: Large, 5 billion yen or more; Medium, more than 1 billion yen and less than 5 billion yen; Small, up to 1 billion yen

〈Analysis of key opportunities〉

The key opportunities are examined mainly under the 1.5°C scenario and are expected to include a decrease in costs due to the development of energy-saving technologies, an increase in the number of people using public transportation due to increased environmental awareness, and an increase in the desire to reside in environmentally friendly properties. We also expect business growth in each segment due to an increase in the number of customers and customer lifetime value mainly in areas served by Tokyu's railway lines, resulting from the development of “towns in harmony with the environment” outlined in Environmental Vision 2030.
The financial impact includes the estimated effects of the replacement of rolling stock, reduced electricity costs from solar power generation, a model shift to railway use and higher rents for environmentally friendly properties. We also expect an increase in the number of users and ethical consumption in areas served by Tokyu's railway lines due to the creation of "towns in harmony with the environment."

Key opportunities and impacts

*1 Applicable period: Short term, two years or less; Medium term, three to five years; Long term, six years or more

*2 Impact: Large, 5 billion yen or more; Medium, more than 1 billion yen and less than 5 billion yen; Small, up to 1 billion yen

*3 Operation of all Tokyu lines with 100% electricity derived from renewable energy sources, etc.

Risk Management

With regard to the evaluation of climate-related risks and opportunities, the ESG Promotion Group of the Corporate Affairs Headquarters serves as the project leader and collaborates with each business unit to analyze risks and consider countermeasures. These are then submitted to the Management Meeting and the Board of Directors annually. The results are shared with all business units and divisions and companies through the Sustainability Promotion Committee. We also consider, evaluate, and manage overall risks, including climate-related risks, when analyzing the risks of each business and company each year.

Risk Management Process

Indicators and targets

To mitigate climate change and prepare for the associated transition risks, we are studying and promoting the decarbonization of our business activities. We adopted Environmental Vision 2030 in March 2022 to address global environmental issues. To create a decarbonation society, we aim to curb the temperature rise to 1.5°C. We will form partnerships with all stakeholders and provide services that encourage environmentally friendly behavior. Our goal is to help people feel connected to making contributions to the environment. We will work alongside you to develop sustainable urban communities that coexist harmoniously with the environment. Our goal is to achieve a decarbonation society by 2050 as stated in Status of Achievement of Environmental Targets. We will review and discuss this goal based on our scenario analysis.
In terms of addressing physical risks, we have established investment priorities in the context of overall safety management, which includes not only climate change risks but also seismic disasters and counter-terrorism measures. Additionally, as a company that is responsible for the infrastructure of a city, we have established safety indicators and, through our daily operations, we are working to ensure safe railway operations and create a disaster-resistant city.

Environmental Vision 2030

Status of Achievement of Environmental Targets

Response measures

In response to the transition risks, we will promote initiatives to introduce the self-generation of energy, energy conservation, and procurement of renewable energy. As for physical risks, we are already taking various measures to deal with such risks in our railroad and urban development businesses, as described below. Furthermore, in response to the recent intensification of natural disasters, we will promote risk avoidance and mitigation measures by upgrading our disaster countermeasures through collaboration between our businesses and operations. This will enhance our resilience to climate change, and we will also continue to conduct regular crisis management response training.

Existing measures in the railway business (Tokyu Railways)

Tokyu Railways is systematically promoting a variety of measures to mitigate the impact on train operations of flooding due to torrential rains or the collapse of slopes beside railways.

【Flooding Countermeasures】
Tokyu Railways has been taking measures against flooding caused by heavy rain since FY 2018. In response to Typhoon No. 19 in October 2019, which caused major damage in eastern Japan, we have conducted measurements and surveys of the condition of railroad facilities in flooded areas based on local government hazard maps, and are systematically promoting the following measures in terms of both hardware and software.

• （1） Development of data collection methods for each municipality and decision-making instruction guidelines from evacuation to cancellation orders.
• （2） Measures to be taken when evacuation orders are lifted in stages.
• （3） Formulation and verification of detention plans (including vehicle evacuation plans).
• （4） Measures against flooding at the entrances and exits of facilities.

As a countermeasure for flooding at the entrances and exits of the facilities, as mentioned in (4) above, we have taken measures such as raising the height of the ventilation openings in the underground sections and station entrances to prevent water from flowing in, installing watertight panels, and installing waterproof doors in each equipment room.

Raised ventilation opening

Watertight panels

Watertight doors for entrances and exits

【Landslide countermeasures】
As a countermeasure for slope collapse beside the railway, we are systematically promoting slope reinforcement work and other measures to prevent sediment from flowing into the railway tracks and making it impossible for train services to operate.

Slope after the implementation of countermeasures (Senzokuike Station to Ishikawadai Station on the Ikegami Line)

Existing measures for urban development projects

（1）Installation of a rainwater harvesting facility at the east exit of Shibuya Station

The area around Shibuya Station is concave and cone-shaped, meaning that rainfall tends to accumulate there. To prepare for the torrential rains that have been increasing in recent years, our company and the Urban Renaissance Agency, as co-builders of
the Shibuya Station Area Land Readjustment Project, aim to create a safe and secure community that is resistant to flooding. Additionally, the construction of the rainwater harvesting facility at the east exit of Shibuya Station was completed and put into service in August 2020 (as managed by the Bureau of Sewerage Tokyo Metropolitan Government). This facility is a large-scale structure measuring approximately 45m north to south and 22m east to west, located approximately 25m deep beneath the East Exit Plaza of Shibuya Station, and is capable of temporarily storing approximately 4,000m3 of rainwater. Water will be collected when rainfall of more than 50mm per hour occurs, and after the rainfall stops, the water will be pumped out to the existing sewerage trunk line to prevent flooding damage to the underground mall and facilities around Shibuya Station. In 2006, the Bureau of Sewerage Tokyo Metropolitan Government constructed a rainwater harvesting pipe of the same capacity at the west exit of Shibuya Station (about 25 meters underground on Jingu-dori in Shibuya Ward).

Rainwater harvesting facility at the east exit of Shibuya Station

（2）Various measures to prevent flooding at our large-scale complexes and properties

In our properties, including large-scale complexes such as Futako Tamagawa Rise, Shibuya Stream, and Shibuya Scramble Square, we are striving to prevent and mitigate damage from flooding by installing a variety of state-of-the-art facilities at the time of construction based on flooding forecasts according to the hazard maps prepared by local governments.

• ①Installation of watertight panels at entrances and exits above ground level, as well as at elevators and underground parking lots.
• ②Placement of electrical equipment rooms and disaster prevention centers on upper floors (except in some buildings).
• ③Installation of watertight doors to underground core equipment rooms.
• ④Installation of rainwater harvesting tanks (total capacity of approximately 4,300㎥ in the basement of each building of Futako Tamagawa Rise).

Shibuya Scramble Square (entrance B6 to Shibuya Station)
watertight panels (standing type)

Futako Tamagawa Rise watertight panels (installation type)

Futako Tamagawa Rise (watertight door)

（3）“Urban River Monitoring System” for the Shibuya River at Shibuya Stream

Shibuya River is located adjacent to Shibuya Stream. To quickly guide facility users to evacuate and prevent inundation before flooding, we have introduced the Urban River Monitoring System, which was developed jointly by Tokyu Corporation and Chuo University in 2017 and tested at the Shibuya redevelopment construction site.
This system uses data from the High-Resolution Precipitation Nowcasts (HRPNs) released every five minutes by the Japan Meteorological Agency to predict the river water level of the Shibuya River. When the predetermined threshold of the predicted water level is exceeded, an alert is sent to facility users’ pre-registered e-mail addresses to alert them to take precautions. The web screen displays rain cloud radar images covering the last two hours and the next hour, and weather forecasts for the next hour, wind speed predictions for the area surrounding the facility, and any special warnings, advisories, and cautions (limited to heavy rains, strong winds, flooding, and thunder) of Shibuya Ward announced by the Japan Meteorological Agency. The system is connected to live cameras of the Shibuya River and weather forecast information from private weather companies.

（4）Efforts of the Tokyo Metropolitan Council for Flood Control Measures for Underground Areas (Shibuya Area Subcommittee)

The Tokyo Metropolitan Government has established the Tokyo Metropolitan Council for Flood Control Measures for Underground Areas, which consists of managers of underground shopping malls, adjacent buildings, railroad companies, local wards, and more across 12 districts with large-scale underground spaces around terminal stations, including Shibuya Station. The Council is working on flood control measures for underground shopping malls in cooperation with related parties. 
In the Shibuya district, the “Shibuya District Flooding Countermeasures Plan” has been formulated to ensure effective countermeasures for flooding in the event of torrential rain by establishing a process whereby facility managers can cooperate to collect and communicate information and deliver warnings and evacuation guidance. The primary goal of this project is to protect the lives of people in underground shopping malls, etc., and at the same time mitigate damage to facilities so that facility operations can be resumed as soon as possible. The council includes Tokyu Railways, Shibuya-Chikagai, Tokyu Department Store Co., Ltd., Shibuya Mark City, Shibuya Scramble Square, SHIBUYA109 Entertainment, Tokyu Land Corporation, and more.

（5）Formulation of the “Evacuation Security and Flood Prevention Plan” (Futako Tamagawa Rise)

Futako Tamagawa Rise has formulated an “Evacuation Security and Flood Prevention Plan” based on the Flood Control Law and conducts both the trainings on the map and practical trainings every year. In the practical trainings, we implement flood prevention measures and evacuation guidance onsite to ensure smooth and swift action in the event of flooding.