Environment​

Response to Climate Change (Information Disclosure Based on TCFD Recommendations)

As a leading company in the payment industry, we are promoting payment services such as cashless billing that eliminates the need for cash, paperless transfer forms, and digitization of billing. We are also working to reduce GHG emissions in our business and supply chains by promoting the introduction of effectively renewable enegy into data center power that processes transaction data and supplier engagement. We will strive to reduce the environmental impact of our customers and society through such environmentally friendly business operations, and aim to shift to a decarbonized society and realize a sustainable society.
In January 2023, we announced our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Based on the TCFD recommendations, we will continue to expand our disclosure of information on climate change.

Governance

The person responsible for climate change issues on the Board of Directors is the Director Executive Vice President in charge of planning and is responsible for reflecting all environment-related issues in the Company's Management Strategy and management objectives. The management team, including President & Chief Executive Officer and Director Executive Vice President, discusses policies related to sustainability activities, including climate change, deliberates on plans, reviews progress, and reports the progress of operations to the Board of Directors, and promotes measures based on the feedback received. In addition, the Board of Directors receives regular reports on the results of discussions and verifications by the Risk Management Committee, and monitors climate-related issues related to the entire company, their impact on business, and the status of responses.

strategy

Using the scenario analysis method recommended by the TCFD recommendations, we identify risks and opportunities that future climate change may affect our business. Referring to scenarios from IPCC, IEA, and other organizations, we have set scenarios that assume changes in the natural and social environment surrounding our company, and have identified risks and opportunities related to climate change.

Hypothetical scenario

1.5°C Scenario
・Rapid progress toward reducing CO2 emissions due to the transition to a decarbonized society
・Tightening of regulations on carbon pricing, etc.
・Changes in needs based on increased environmental awareness among stakeholders

4.0°C Scenario
・Progress of global warming due to the lack of progress in strengthening laws and regulations for climate change countermeasures
・Intensification of natural disasters due to rising temperatures, increase in sea level rise, and increase in abnormal weather

Risks and Opportunities Related to Climate Change

Risk Management

In recent years, as the issue of climate change has become more serious, our services may also have an impact on global resources and the climate due to CO2 emissions associated with electricity energy consumption. Through the activities of the Risk Management Committee, we conduct integrated consideration and response to disaster risks, including climate change.
In order to incorporate climate-related risks into our company-wide risk management and implement them effectively and efficiently, we hold a Risk Management Committee meeting once a quarter. Risk events are evaluated numerically on six levels on two scales, namely the degree of impact and frequency of occurrence on a monetary basis, and after assessing and selecting assumed risks and general risks across the company by certain executives within the company, risk events that exceed a certain level are considered to be serious risks, and countermeasures are considered and implemented in each department.
Measures to deal with serious risks examined and implemented in this flow are examined by the department in charge based on the opinions of external experts, inspected and discussed by the Risk Management Committee, and reported to the Board of Directors.

Metrics and Targets

In order to contribute to the realization of a sustainable society, we are promoting initiatives to reduce GHG emissions. In the fiscal year ended September 2022, we introduced effectively renewable enegy to power our major data centers, which consume the majority of electricity in our business, and achieved our goal of reducing the GHG emissions (Scope 1 and 2) of our operations, including other data centers and offices, to effectively zero in the fiscal year ending September 2023. As we move toward the fiscal year ending September 2030, we will continue to implement GHG emissions (Scope 1 and 2) effectively zero.
In terms of GHG emissions (Scope 3) derived from our supply chain, we have set a target of reducing Scope 3 emissions (Categories 1 and 11) per new payment handset by 55% by the fiscal year ending September 2030 compared to the fiscal year ended September 2021. These targets are in line with the Paris Agreement.
In order to achieve our targets, we are engaged with suppliers to reduce GHG emissions (Categories 1 and 11) related to the purchase and use of payment handset products and GHG emissions (Category 2) related to software development, which are required to provide Card Present Transactions, which accounts for the majority of GHG emissions (Scope 3).
Specifically, we are engaged in dialogue with payment handset manufacturers to appropriately measure and reduce power consumption during GHG emissions and Card Present Transactions related to handset manufacturing.
Similarly, we are engaged in dialogue with our business partner system development company to appropriately measure and reduce GHG emissions (Category 2) related to software development.

In May 2024, our GHG reduction targets were certified by the SBT Initiative, a global organization that encourages companies to set science-based climate targets, as being consistent with the 1.5°C target. As a result, our GHG reduction targets have been proven to be scientifically consistent with the "1.5°C target" of the Paris Agreement, which was adopted as a new international framework for reducing greenhouse gas emissions from 2020 onward, which aims to limit the increase in the global average temperature to 1.5°C above pre-industrial levels.

Goals for which we received this certification
・Scope 1 and 2: Achieve GHG emissions effectively zero continuously until the fiscal year ending September 2030
・Scope 3: Reduce GHG emissions * per payment new handset in operation by 55% by the fiscal year ending September 2030 compared to the fiscal year ended September 2021.

*Covers the majority of our Scope 3 payment Refers to purchased goods and services (Category 1) and the use of sold products (Category 11) related to terminal products.

GHG emissions

*Calculated based on the power consumption of data centers and offices of our major companies
*1 Scope 1: Emissions emitted by the company itself GHG emissions
*2 Scope 2: Indirect GHG emissions of purchased electricity, heat, etc.
*3 Scope 3: GHG emissions of other companies related to the Company's activities

GHG emissions Trends

Third-Party Assurance

In order to ensure the reliability of the content of the GHG emissions reports, we have received third-party assurance from SOCOTEC Certification Japan.

・Scope１，２，３（2024年9月実績）

Energy-Saving Initiatives

Data Centers
We incorporate power-efficient CPU selection, server architecture, server virtualization, rack location, and air conditioning airflow to ensure efficient power consumption and efficient space utilization. In addition, from the fiscal year ended September 2022, we have improved our operations to measure actual power consumption and recognize accurate power consumption.

Office buildings
We have introduced control management of lighting and air conditioning in the office, such as turning them off automatically depending on the time, and an outside air system to reduce the loss of cold and heated air, which leads to energy conservation. In winter, when the outside air temperature is higher than the indoor temperature setting, the outside air cooling system is used to reduce the power consumption of the air conditioner by taking in outside air instead of from the air conditioner, thereby reducing the environmental impact by saving power.

Contributing to the decarbonization of society

Promotion of cashless payments with low environmental impact

Through the promotion of cashless payments, we will contribute not only to the reduction of GHG emissions from our business, but also to the reduction of GHG emissions in society as a whole. Cash payment emits CO₂ in the manufacturing, payment, use, and disposal processes of banknotes, coins, ATMs, etc. According to an analysis published by the Cashless Promotion Council, to which we are a member, the CO₂ emissions of cashless payment are estimated to be about one-third of that of cash payment, confirming that cashless use has a lower environmental impact. Similarly, in the United Kingdom and the Netherlands, research results have been published that CO₂ emissions can be reduced by promoting cashless payments.

Cashless Roadmap 2023 / From the Cashless Promotion Council
At payment per 1,000 yen, cashless CO2 emissions are 0.34g

In this edition of the Cashless Roadmap 2023, we used a variety of publicly available data to estimate the carbon footprint of cashless and cash use.
Since the calculation was made without sufficient data, it cannot necessarily be said that it is an accurate value, but at least in this estimate, we were able to obtain the result that the carbon dioxide emissions related to cash use were "1.06g" for 1,000 yen payment, while "0.34g" for cashless use. Based on this calculation, we were able to confirm that cashless use has a lower environmental impact in daily payment. As a result, we were able to confirm that using cashless is a more environmentally friendly action.

Cash and cashless
Comparison of carbon dioxide emissions (per 1,000 yen)

Source: Cashless Roadmap 2023 / Cashless Promotion Council

未来の森を育てる、J-クレジット取得

2024年10月、当社は株式会社栃毛木材工業（以下、栃毛木材工業）より、森林J-クレジットを取得しました。森林Jクレジットとは、間伐などの森林の適切な管理を行うことによるCO2吸収量をクレジットとして国が認証したものです。
栃毛木材工業は、栃木県内に複数の山林を所有し、環境に配慮した手入れをし、定期的に枝落とし、間伐を行い、健全な山林の育成を行っております。
森林J-クレジットの取得を通じて、栃毛木材工業の持続可能な森林経営を支援し、環境保全に貢献してまいります。

GMO-PGの自然資本への貢献 -森林由来クレジット創出の現場を訪問

biodiversity

Promoting Paperless Payments

We support merchants to go paperless through the digitalization of invoice and other services.

Environmentally-friendly business operations in the face-to-face domain

・Use of recycled paper in the receipts (paper rolls) used when using each payment terminal
・Provision of electronic storage services for sales slips that lead to a reduction in receipts (paper rolls)