SUSTAINABILITY
- TOP
- SUSTAINABILITY
To realize a Sustainable Society beginning from the Local Community.
We consider the gifts of nature such as water, wind, and heat, which all exist in local regions as the "local commons*."
To create a sustainable society together with the local communities,
we utilize these potentials that are naturally replenished.
*The term "local commons" refers to resources that are the property of the entire society and should be maintained and managed together.
Sustainability Governance
- Board of Directors
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- Executive Committee
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- Sustainability Committee
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- (Secretariat) Sustainability Promotion Group
Sustainability Committee is the body governing the integration of sustainability all throughout GPSS's business activities. The committee is chaired by the Representative Director and CEO of GPSS Holdings Inc., and its members consist of the HD Executive Committee including the Chief Sustainability Officer.
Sustainability Promotion Group acts as the secretariat of the Sustainability Committee, which leads and promotes various sustainability activities to facilitate and coordinate all relevant divisions of GPSS Group. The group is led by the Chief Sustainability Officer.
ESG Policy
Our mission is to increase local sustainability through renewable energy projects which utilize local resources, and to help solve the social issue of a stable supply of renewable energy, hence creating a sustainable society beginning from the local communities.
To fulfil our vision, we need to address individual environmental, social, and governance issues through our day-to-day business activities. In addressing these specific ESG issues, we have formulated our ESG Policy, which sets out the material issues based on the following fundamental understanding:
- Appropriate management of adverse effects of products/services on the environment (air, water, soil, etc.) and ecosystems to achieve sustainable growth in harmony with the natural environment and future generations.
- Environmentally friendly initiatives such as energy conservation and greenhouse (GHG) gas emission reduction, effective use of resources and reduction of waste, proper management of chemical substances and pollutants, water resource management and water conservation.
- Protection of fundamental human rights of employees, subcontractors, and suppliers while ensuring a healthy, safe, and comfortable working environment.
- Respect for diversity and inclusion and equal opportunities.
- Compliance with laws, regulations, and industry standards relating to the prevention of bribery, strengthening corporate governance, cyber security, and protection of information.
- Strongly encourage stakeholders, particularly subcontractors, suppliers, etc., to respect the same standards.
Materiality Process
STEP1Selection ofIssues
We created a comprehensive long list of environmental, social and governance issues important and relevant to GPSS Group. In the identification of issues from a long-term perspective, we have used globally recognised ESG benchmarks such as CDP, and global sustainability reporting standards such as SASB, Sustainalytics, UNEP FI, TCFD and GRI. These sustainability standards also helped us assess how we are contributing to the UN SDGs through our business activities.
STEP2Prioritization ofIssues
After engagement with both internal (employees) and external stakeholders (residents of local communities, etc.), we prioritized our material issues. In accordance with the principle of double materiality, we assess material issues by evaluating from (1) the degree of impact our business activities have on our stakeholders and society (importance to stakeholders) and (2) the degree of impact on the sustainability of our business performance and results (importance to GPSS).
STEP3Engagement ofManagement
We ensure on-going full integration of the ESG policy and each respective material issue in our corporate strategy through seeking the executives' input at all levels. Through punctual information and frequent dialogues, we also establish a thorough in-house understanding and company-wide adoption of the policy.
STEP4Monitoring andReporting
Once the ESG policy is finalized and KPIs are set, we closely observe the set targets through ongoing data monitoring in collaboration with correspondent divisions. The Sustainability Promotion Group routinely reports performance and progress towards the targets set through both internal and public information disclosure. In addition, GPSS will review the selected 9 material issues considering the changes in environment and the demands of society, as necessary.
Materiality chosen by GPSS
Based on the Materiality Process, we have selected 9 material issues.
Formation of joint businesses with local communities
Importance to stakeholders
Our purpose (raison d'être) is to realize a sustainable society starting from the local communities. The local community will be able to realize a sustainable society with the profits from the joint project by utilizing the potential value of natural resources that are local commons. Additionally, sales of generated electricity and the amount of produced energy, which are the results of our joint projects with the local community, indirectly serve as indicators of our company’s impact.
Importance to GPSS
Our unique business model which shares interests with the local community, allows us to form joint projects that are closely aligned with the needs and concerns of the local communities and make effective use of local resources. This approach enhances the success rate of projects, both in terms of increasing the capacity and electricity generation, from the development stages to the commencement of operation. Furthermore, by matching the potential of energy resources with local needs from a local perspective, synergies can be generated to further enhance the scalability of our renewable energy business.
| KPIs | Results | Targets | |
|---|---|---|---|
| FY2021 (Reference Year) | FY2022 (Base Year) | FY2023 | |
| Number of joint projects with local communities* | 3 | 5 | 59 |
| Potential Capacity (MW)* | 57.6 | 108.8 | 294.1 |
Consideration for the local natural environment
Importance to stakeholders
The natural environment is a shared resource, utilized and managed as a local common by the local communities and residents. Our company, in collaboration with the local community, upholds strict standards concerning the surrounding natural environment and ecosystems in our development and EPC projects (e.g., installation and construction of electricity generation and other related facilities). We always prioritize responsible development, and we are always aware of the potential impact on the local natural environment.
Importance to GPSS
Deterioration of the local environment could have significant negative impacts on our business activities. The worsening of environmental issues, including natural disasters, may lead to higher development and EPC costs, inflated O&M (operation and maintenance and inspection management) costs, a decreased generating capacity of renewable energy once in operation, as well as strengthened regulations and increased social opposition. These factors could pose challenges and affect the profitability and growth of our renewable energy projects and can further harm the sustainability of our business.
| KPIs | Targets |
|---|---|
| FY2023 | |
| Number of initiatives considered to have a positive impact on the local natural environment | 1 or more per project that began operation in the same year |
| Number of nature-related issues that are considered to have a negative impact on the local natural environment | 80% or more issues addressed for projects that began construction in the same year |
Initiatives for employees’ well-being
Importance to stakeholders
Our purpose (raison d'être) is to realize a sustainable society starting from the local communities, and we regard our employees’ sense of job satisfaction and happiness as a prerequisite for business activities. Our unique business model is supported by our employees, who are deeply committed to local communities and sustainability and whose presence helps to build better long-term, trusting and agreement-based relationships with local communities and residents. By placing the well-being and growth of our employees at the forefront of our efforts, we aim to develop a motivated and productive workforce that will have a positive impact on the local community and society.
Importance to GPSS
The sense of job satisfaction and happiness of employees through employee initiatives contributes not only to the productivity, and creativity of individual employees, but also to team cohesion. In addition, focusing on ‘diversity and inclusion’ activities creates a positive cycle in which individual strengths and experiences are fully encouraged and innovation is promoted. This is one of the important factors that enable sustainable growth for our company.
| KPIs | Result | Targets | |
|---|---|---|---|
| FY2022 (Base Year) | FY2025 | FY2030 | |
| Percentage of female employees | 27% | 30% | 40% |
| Percentage of foreign employees | 15% | 21% | 25% |
| Percentage of employees participating in and satisfaction score with SustainaTalk | 30% 4.5/5 |
25% 4/5 |
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| Percentage of new employees participating in sustainability training sessions | 82% | 80％ yearly | |
Engagement with suppliers
Importance to stakeholders
Collaborating with suppliers that have high awareness of ESG issues will further enhance the effectiveness of sustainability initiatives by bringing exchange of knowledge, ideas, and resources. By working with suppliers who implement best practices and fostering a culture of environmental responsibility, we can promote meaningful change, thus having a positive impact on society.
Importance to GPSS
Our company has business relationships with various suppliers of technology and products, as well as with local companies in the area. Even though anti-social forces and compliance checks on suppliers are conducted as part of our risk assessment, raising awareness and working together with our suppliers on climate change and ESG issues is important for our risk prevention. Accumulating a wide range of best practices and implementing these initiatives will increase our responsiveness and resilience to change and will have a direct and indirect positive impact on our business reputation and credibility.
| KPI | Target |
|---|---|
| FY2023 | |
| Percentage of sustainability declarations signed | 100% for new business partners |
Strengthening resilience to climate change and disaster
Importance to stakeholders
Climate change and natural disasters can strike the region with significant destructive force and have a significant impact on the sustainability of the region. Ensuring resilience is essential for achieving a stable and secure renewable energy supply and is critical to the sustainability of revenues and other benefits returned to the region as a result of the joint business.
Importance to GPSS
The physical effects of climate change and natural disasters can have a significant impact on our assets (e.g., power plants) including financial losses, damage to equipment, operational disruption, and long-term adverse effects on the viability of infrastructure. Ensuring resilience helps to mitigate these possible losses and damages, maintain, and enhance the overall performance and longevity of our assets.
| KPI | Target |
|---|---|
| FY2023 | |
| Number of geothermal and hydro energy storage projects | Proposals: 2 Feasibility study: 1 |
Greenhouse gas (GHG) emissions reduction
Importance to stakeholders
GHG emissions adversely impact climate change and can cause long-term irreversible damage not only to local communities, but also to the global environment and all of humanity. With growing awareness of climate change and ecosystem preservation, there is an increasing need to reduce GHG emissions. Therefore, the substantial reduction of greenhouse gas (GHG) emissions achieved by our company through renewable energy projects carries profound social significance.
Importance to GPSS
The low carbonization of energy is an urgent social issue for the realization of a decarbonized society and the production and stable supply of renewable energy, represents an important growth opportunity for our company in the context of the need to expand the introduction of energy that does not emit GHG emissions. On the other hand, considering future changes in environmental regulations and social expectations, the starting point is for us to recognize the GHG emissions from our day-to-day business activities and reduce these as much as possible.
| KPI | Results | Target | |
|---|---|---|---|
| FY2021 (Reference Year) | FY2022 (Base Year) | FY2023 | |
| Annual CO₂ reduction(t-CO₂) | 40,974 | 58,636 | 62,703 |
Efficient use of waste and resources
Importance to stakeholders
Managing waste contributes to solving social issues in communities with waste problems. Waste from our construction, work sites, and other sources may inflict on the local natural environment and ecosystems, thus these need to be managed carefully.
Importance to GPSS
Waste and resource management is essential for us to continue our operations in a sustainable manner. In addition to efforts to reduce waste, our company also recognizes the potential of waste as a resource and will work to utilize waste and harness its value for renewable energy generation, for example through biogas power generation and waste plastic recycling.
| KPIs | Target |
|---|---|
| FY2023 | |
| Annual per-unit waste emissions at construction sites (t/kW) | 5% reduction (Compared to FY2022) |
| Amount of waste reused as biogas fuel (tones) (WTP) | NA (Operation expected in FY2026) |
| Amount of energy produced from waste ('000 kWh) | NA (Operation expected in FY2026) |
Sustainable Forests and Agricultural Land Management
Importance to stakeholders
Sustainable forest and agricultural land management protects local industries, enhances food and energy security, and contributes to solving local resilience issues. Sustainable management of forests minimizes negative impacts on the local natural and living environment and agricultural land management is essential for future food security. Furthermore, the presence of forests and agricultural land that absorb more carbon, creates a healthier society from the local level.
Importance to GPSS
By monetizing the CO2 absorption from forest resources as carbon credits, our company is preparing for the future introduction of carbon taxes and emission trading. Along with Agrivoltaics, the maintenance of agricultural land primarily through pasture cultivation, is a symbolic approach to realizing our philosophy. We also believe that increasing the quality and quantity of forests and agricultural land will facilitate carbon removal from the atmosphere and will also contribute to our environmental goal of net zero.
| KPI | Target | ||
|---|---|---|---|
| FY2030 | FY2040 | FY2050 | |
| Forest area owned and managed (ha) | 500 | 2,000 | 5,000 |
Safe and stable supply of renewable energy
Importance to stakeholders
Our company fulfills a societal mission of creating renewable energy from scratch and providing a stable supply to consumers. Our efforts help to solve the social problem of the overwhelming shortage of safe and stable supply of electricity and renewable energy. In addition, the promotion of local production of renewable energy for local consumption will contribute to further improving the sustainability of the region.
Importance to GPSS
Our company is focusing on achieving an optimal energy mix, including securing baseload power sources that are not subject to fluctuations, effective utilization of thermal energy, and renewable energy-derived electricity-to-fuel conversion and supply (hydrogen and methanation). Furthermore, through efforts to enhance the utilization of renewable energy, including the establishment of decentralized energy systems, we can embrace sustainable growth opportunities that align with the societal needs.
| KPI | Results | Target | |
|---|---|---|---|
| FY2021 (Reference Year) | FY2022 (Base Year) | FY2023 | |
| Estimated electricity generation by baseload power projects gained stakeholder agreement this year ('000 kWh) | 19,798 | 22,688 | 127,667 |
Sustainability Report
GPSS issued its first Sustainability Report in 2021 and continues to do so yearly, as a means for disclosing information to our stakeholders and promoting a greater understanding of how GPSS values sustainability. This report is a focused summary of environmental, social, governance, and other non-financial information in PDF format (Japanese and English).
Please click here to read the Sustainability Report 2022
*Please download the pdf file in order to view the report
External Evaluation
Voluntarily responded to the CDP’s Climate Change Questionnaire
Carbon Disclosure Project (CDP) is an international not-for-profit organization that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. GPSS voluntarily responded to CDP's questionnaire in 2022 reporting cycle, demonstrating our commitment to enhancing our response to climate change.
Continuing our dedication and efforts, we have responded to the CDP's questionnaire for the year 2023, disclosing information about greenhouse gas (GHG) emissions data, as well as governance, risk and opportunity assessment, and business strategy.
CDP Website
GRESB 5-Star Certification in 2020 and 2021
Mission-driven and investor-led, GRESB is the environmental, social and governance (ESG) benchmark for real assets. We work in collaboration with the industry to provide standardized and validated ESG data to the capital markets. The 2020 real estate benchmark covers more than 1,200 property companies, real estate investment trusts (REITs), funds, and developers. Our coverage for infrastructure includes 540 infrastructure funds and assets. Combined, GRESB represents over USD 5.3 trillion in real asset value. More than 100 institutional investors, with over USD 22 trillion AUM, use GRESB data to monitor their investments, engage with their managers, and make decisions that lead to a more sustainable real asset industry. Learn more at GRESB.com GRESB Website
Highest "Green 1 (F)" Rating Awarded to GPSS
GPSS Holdings Co., Ltd. has been awarded the highest rank of "Green1 (F)" by the Japan Credit Rating Agency, Ltd. (JCR), for establishing the first Green Finance Framework. Specifically based on the JCR Green Finance Evaluation Method, GPSS Holdings' "Greenness Evaluation (Use of Funds)" is set to "g1 (F)" and its "Management / Operation / Transparency Evaluation" is set to "m1 (F)".
As a result, the highest rating was awarded via a comprehensive evaluation.
This framework is a policy that describes the philosophy and procedures of GPSS Holdings' Green Finance (issuing green bonds and borrowing green loans based on this framework). Specifically, GPSS Holdings will raise funds through Green Finance, which is stipulated for use in projects that have a positive effect/ improvement on the environment.
Memberships
GPSS is a premium sponsor of the Japan Sustainable Investment Forum (JSIF). JSIF is actively promoting and developing sustainable investments (SRI and ESG investments, etc.) that are actively carried out in Europe and the United States.
JSIF Website
GPSS joined Long Term Infrastructure Investors Association (LTIIA). Their vision is to facilitate and promote private investment in infrastructure which enables long-term, sustainable development of communities, countries and regions.
LTIIA Website
The " Foundation Guardian Forest Project Public Interest, Inc." is modeled after the "Guardian Forest" that saved people's lives during the Great Eastern (Kanto) Japan Earthquake, and the Great Hanshin Earthquake, and prepared a regional green infrastructure to coexist with nature. We are engaged in forest-building activities to protect the community and livelihoods from disasters. For more information, please visit the Guardian Forest Project website.
Guardian Forest Project website
We are a member of the Renewable Energy Association for Sustainable Power supply or REASP, a business organization that aims to promote renewable energy as a main power source and to ensure the long-term stable supply of affordable clean power. For more information,
please visit the REASP website.
GPSS supports the Task Force on Climate-related Financial Disclosure (TCFD). TCFD aims to encourage companies and stakeholders to assess and disclose the financial impacts of climate change risks and opportunities on their operations. The framework seeks to enhance transparency, understanding, and decision-making regarding climate-related risks in financial markets, ultimately facilitating better capital allocation towards a sustainable and resilient economy.
TCFD Website
We are a member of the Taskforce on Nature-related Financial Disclosures (TNFD) Forum. TNFD is an international initiative aiming to shift the global flow of funds to nature-positive investments through disclosure of information related to the natural environment and biodiversity. The TNFD Forum is an organization that shares information related to TNFD and provides support for the development of the framework.
TNFD Website