Sustainability サスティナビリティ

Reduction of Greenhouse Gases

Management of Industrial waste performance

For proper management of waste, we use manifest vouchers to compile annual performance data on the types of industrial waste and the amount of waste generated. Annual leakage of fluorocarbons, a type of greenhouse gas, is also tabulated and reported to each local government. Through these efforts, we are helping to reduce GHG emissions.

Switch to Energy-efficient Equipment

Air conditioning equipment and heating equipment such as boilers at our business sites consume large amounts of energy. As part of our efforts to reduce GHG emissions, we are systematically replacing our air conditioning and heating with high-efficiency equipment.

Support for Promotion of EVs (Electric Vehicles) and Other Eco-cars

We are striving to reduce environmental impact by supporting the popularization of electric vehicles, for instance by installing EV chargers at some of the Hotel Group's business sites. In addition, we will gradually transition the vehicles we use for business and transportation to eco-cars with lower environmental impact, in line with the future expansion of our vehicle lineup.

Secondary Use of Heat from Hot Springs

A portion of the discharged hot spring water is used for secondary purposes such as preventing road surface icing (road heating) and melting snow on roofs in winter, making effective use of water resources and thermal energy.

Reduction of Single-use Plastics

Review of Amenity Offerings

Disposable plastic toothbrushes and hairbrushes that used to be provided in guestrooms are now available to guests on an as-needed basis, and some of our resort hotels have introduced amenities made of decarbonized materials, thereby reducing the generation of plastic waste that causes ocean pollution.

Effective Use of Water Resources

Cease Routine Changing of Linens (WECO Cleaning for Consecutive Nights)

As part of our eco-friendly hospitality, we offer guests staying for consecutive nights a "No Cleaning & Sheet Changing Required Card" and encourage them to cooperate in the "WECO Cleaning for Consecutive Nights" program, which aims to reduce water used for laundry.

Installation of Water-saving Equipment

To make effective use of precious water resources, we are installing water-efficient facilities and equipment. For example, as showers and toilets are among the highest water-consuming equipment at our business sites, we are reducing water usage by adopting water-saving showerheads and toilets.

Initiatives for TCFD

The Group’s management policy is “contributing to the progress of society as a whole through food and housing,” and the Group positions efforts to address climate change as essential for its own business development and for the sake of a sustainable society. Therefore, in the fiscal year ended March 31, 2023, we endorsed the TCFD’s recommendations to assess and disclose the financial impact of climate change-related risks and opportunities on our operations, and we will take an active role in the climate change initiative to disclose this information.

(1)Governance

• ①Organizations responding to climate change
  The Group has integrated climate change into its governance process, and the Board of Directors, as the governing body for risk management, is involved in the process of managing climate change-related risks and opportunities. The Sustainability Promotion Committee, which is subordinate to the Board of Directors, collects and classifies climate change-related information and develops and implements climate change-related policies under the Sustainability Policy.
  The Sustainability Promotion Committee, chaired by the President of the Company, discusses specific measures for enhancing long-term corporate value, reports regularly to the Board of Directors, and promotes initiatives to address climate-related issues at the request of the Board of Directors. For a diagram of the governance structure, please refer to “II Overview of Business, 2 Approach and Initiatives for Sustainability, 1. Approach and Initiatives for Sustainability, (1) Governance.”
• ②Sustainability Promotion Committee
  The Sustainability Promotion Committee held a meeting once in the first half and twice in the second half of the fiscal year ended March 31, 2023 (to approve the Sustainability Policy, materiality, etc.). In the fiscal year ending March 31, 2024, the Sustainability Promotion Committee is expected to hold a meeting about once a quarter, and will plan, consult, discuss, manage and supervise the policies, specific actions, and disclosures regarding climate change measures, and report the results to the Board of Directors.

(2)Strategies

• ①Risks and opportunities
  The Group recognizes that a 4°C rise in the global average temperature due to climate change will have a huge impact on society and believes that it is important to contribute to the movement to limit the temperature rise to less than 2°C.
  Regarding climate-related risks and opportunities affecting the Group, among “transition risks” related to changes in policies, laws, technology, markets, etc., in particular, the risk of increasing indirect costs due to the introduction of a carbon tax is expected. On the other hand, it is possible that future improvements in technology may make it easier to use alternative energy sources. In the acute and chronic “physical risks” that emerge from disasters, etc., the risk of damage to offices and tourist spots is considered to be a priority risk. In addition to this, the Japanese government has announced a policy to achieve “carbon neutrality by 2050,” which requires us to fundamentally change our existing business models and strategies, and customers, business partners, and various other stakeholders of the Group are also undergoing changes. In light of these changes in circumstances, the Group will analyze and integrate the impact of transition and physical risks, not only in terms of risks but also opportunities, to evaluate their impact and determine a policy for addressing them.
• ②Climate-related impacts
  

  (a)Scenario

  In measuring the impact of climate change on the Group, we are considering underlying scenarios based on SDS (IEA) and RCP2.6 (IPCC) for the less than 2°C scenario and STEPS (IEA) and RCP6.0 and 8.5 (IPCC) for the 4°C scenario.

  (b)Financial impacts

  The Group has comprehensively considered the impact of climate change on the Company and the measures that can be taken, and has positioned the promotion of energy conservation and the use of renewable energy as the pillars of climate change countermeasures to mitigate the impacts of climate change. The introduction of a carbon tax, which is assumed in the future, and fluctuations in electricity prices, which are a prerequisite for procuring renewable energy, will be considered to affect finances. For estimating the financial impact, after identifying risks and opportunities, we will attempt to quantify particular areas of focus, such as taxation costs from the carbon tax and electricity prices which are expected to soar.

• ③Countermeasures
  The majority of the Group’s greenhouse gas emissions are derived from the use of electricity and gas, and we believe that efficient energy use and a switch to fuels derived from renewable energy sources are important in our initiatives to reduce greenhouse gas emissions.
  For efficient energy use, replacement with energy-efficient equipment, such as energy-efficient air conditioners, is considered an effective means. For the use of renewable energy, we will continue to gather information and introduce renewable energy sources while looking at their cost-effectiveness. All of these initiatives must be planned from a long-term perspective.
  In addition, the Group will take measures assuming what may happen in the future from a broad perspective from a medium- to long-term viewpoint under both the less than 2°C scenario and the 4°C scenario. Therefore, in the future business strategy, we will formulate appropriate measures to avoid negative risks, while flexibly responding to positive opportunities and viewing them as growth opportunities for the Company.

(3)Risk Management

• ①Identification and evaluation
  The Group recognizes that climate change is an important issue for the survival of corporations and believes that responding appropriately to climate change, not only in terms of risks but also opportunities, will lead to sustainable growth. The Group will discuss priorities within the Sustainability Promotion Committee, which is delegated by the Board of Directors, by comprehensively evaluating the impact on management in terms of both financial impact and likelihood of occurrence. We will identify risks and opportunities in our business based on a comprehensive review of the Group’s issues, the requirements and expectations of stakeholders, and the results of impact assessments of environmental aspects of our business, and manage the risks and opportunities in future plans, and address them throughout the Group.
• ②Management
  In response to a request from the Board of Directors, the Sustainability Promotion Committee will discuss various policies, targets, and measures related to sustainability, and report regularly to the Board of Directors on the progress of these discussions.
  The Administrative Office will support the Sustainability Promotion Committee.
  The ESG Promotion Office will receive instructions from the Sustainability Promotion Committee and, in addition to promoting ESG measures, will collect information, provide information, and conduct awareness activities from the Group.
• ③Process
  The Group believes that it is important to consider climate change from two perspectives of risk and opportunity. Therefore, we are not only monitoring climate change risks, but also evaluating them in terms of opportunities by strengthening horizontal cooperation among related departments and Group companies. The ESG Promotion Office and the Sustainability Promotion Committee conduct their deliberations, which are then reported to the Board of Directors. The Board of Directors makes decisions from the perspective of improving corporate value and issues instructions to the relevant departments.

(4)Indicators and Targets

To mitigate climate change, the Group is committed to reducing CO2 emissions under the keyword “decarbonization.” The Group has expressed its support for the TCFD recommendations, with the goal of reducing Scope 1 and 2 emissions to net zero by 2050. The Sustainability Promotion Committee will examine CO2 emissions, reduction targets, and interim targets, and report the results to the Board of Directors. We will work to achieve the CO2 emissions reduction targets. The targets will be announced as soon as they are ready.

CO2 emissions covering the Company’s hotel business are shown below.

Greenhouse gas emissions from the hotel business (t-CO2)

	FY2020	FY2021	FY2022	FY2022 /FY2020
Scope1(t-CO2)	33,493	37,725	39,673	118.5%
Scope2(t-CO2)	50,995	55,829	57,461	112.7%
Total(t-CO2)	84,488	93,554	97,134	115.0%
Total floor space(m²)	695,413	754,346	768,062	110.4%
Per m² of total floor space (t-CO2)	0.121	0.124	0.126	104.1%

Emissions for the entire Group and Scope 3 are still being compiled.

The GHG emissions of our hotel business is 97,134t-CO2 in 2022, compared to 84,488t-CO2 in 2020, representing an increase of about 15%. This is mainly due to the increase in total floor area, with GHG emissions per unit floor area being 0.126t-CO2/m² in 2022, 4.1% increase compared to 2020.

Global Warming
Countermeasures Report