The ideal form of a company in the era of carbon neutrality

In his keynote speech at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), held in Glasgow, UK in November 2021, Professor Takamura introduced various examples of societal movements toward decarbonization and climate change policies. He also made two specific actions required of companies, each with a different timeframe, which we will present here as excerpts.

Specific actions required of companies

One perspective is short-term. How can we make the most of existing technologies and reduce CO2 emissions starting from the ground up? This is important not only as a measure against climate change, but also because it affects how companies are evaluated by their business partners, supply chains, and financial institutions. Another perspective is medium- to long-term. Infrastructure and social infrastructure must change steadily and significantly to become decarbonized or low-carbon. The infrastructure and equipment related to business activities also need to change. Now is the time to formulate strategies and take action toward a steady transition to decarbonization from this medium- to long-term perspective. Addressing climate change is an effort to create a better, more sustainable economy and society. I hope that companies and communities will work together to advance these efforts as an initiative to protect corporate business activities, people's lives, and society from climate change, while also supporting the value of business and the value of customers.

As ESG investing, which takes environmental, social, and governance perspectives into account, rapidly gains popularity, Mr. Kobayashi from Rating and Investment Information, Inc., a leading Japanese rating agency, explained what perspectives companies should adopt in response. He provided a clear explanation of ESG finance, including its current state, and discussed the future of ESG finance. He emphasized that it is important for companies and local governments to "view this as an opportunity to promote sustainability and take a positive approach."

Since beginning its work on global environmental issues around 1990 through National Institute for Environmental Studies, PACIFIC CONSULTANTS established an organization in 2009 to support regional energy projects, expanding its service area from global environmental issues to regional decarbonization. As examples of its work achievements, the company explained its involvement in the "Mid- to Long-Term Scenario (Draft) for Achieving Net-Zero greenhouse gas Emissions by 2050 in the Waste and Resource Recycling Sector," published by the Ministry of the Environment in August 2021, and the Ministry of the Environment's Local SDGs - Regional Circular and Symbiotic Zone Development Platform. It suggested that simultaneously addressing regional issues or other environmental problems with decarbonization will become more important than ever in the future.

■Presentation materials: Contribution to policies that realize a decarbonized society

The presentation highlighted three key challenges and conditions surrounding businesses: the creation of a prime market, coexistence with stakeholders and local communities, and the revitalization of green finance. It then introduced two solutions: "Area-wide carbon neutralization," aimed at increasing the value of the entire development area and attracting people and money; and "Carbon neutralization that benefits both businesses and the community," aimed at maximizing the decarbonization and economic effects of the region and ensuring the mutual prosperity of businesses and the community. The presentation suggested that implementing carbon neutrality requires comprehensive care from concept and mechanisms to fundraising and future operational management.

■Presentation materials: Development of Carbon Neutral Promotion Support Services

In renewable energy projects facing various challenges and hurdles, the importance of consistent support from concept to commercialization was emphasized. Regarding the microgrid, which handled the most domestic four cases, effects such as maximizing renewable energy introduction under grid constraints were introduced. Additionally, the need for project management and owner-oriented engineering for mega solar and large-scale wind power is increasing, supporting smooth commercialization. Many of these are joint projects with local governments, and it was suggested that future cooperation with the Ministry of the Environment's decarbonization pilot regional projects will be key.

■Presentation materials: Maximizing the use of renewable energy and energy management

Pacific Power aims to promote regional development centered on municipal Power Producers and Suppliers (PPS) projects, and has so far developed various projects in collaboration with local communities. With the global consensus on carbon neutrality, energy systems not only Headquarters but also around the world are bound to change, and there are many business opportunities that cannot be covered by traditional energy-related businesses alone. Therefore, it was announced that Pacific Power has entered a co-creation phase to expand its business domain by leveraging its extensive knowledge of regional energy and its unique new business development methodology.

■Presentation materials: Joint exploration of new energy business opportunities