We aim to differentiate ourselves based on a new evaluation axis of "environment" in addition to "price" and "quality." What is the decarbonized management that NIKOH SANGYO co.,Ltd., a small and medium-sized company, is working on that changed the mindset of employees?
We aim to differentiate ourselves based on a new evaluation axis of "environment" in addition to "price" and "quality." What is the decarbonized management that NIKOH SANGYO co.,Ltd., a small and medium-sized company, is working on that changed the mindset of employees?
Person in charge (department and title at the time of interview)
Sustainability Promotion Department Executive Officer
Mr. Atsushi Watanabe
Nikko Holdings Corporate Planning Department Manager
Mr. Ryohei Kobayashi
Listed companies are now required to disclose non-financial information in their securities reports for fiscal years ending after March 31, 2023. While the importance of decarbonization management is increasing regardless of Company size, the current situation is that Unlisted companies, which are not required to do so, are lagging behind large companies in their efforts.
However, there are some companies that are working on decarbonization just as much as listed companies. NIKOH SANGYO co.,Ltd. is a Unlisted company that operates in the building maintenance industry, which produces low CO2 emission amount, but it is actively working on decarbonization management. We asked them about the background and Contents of why they started to address environmental issues, and the results they have achieved.
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Background to the start of efforts toward decarbonized management
- A word from the company president who felt a sense of crisis over the global warming problem triggered the event.
- We thought we could differentiate ourselves from other companies by using a new evaluation axis called “environment.”
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Initiative Contents
- With decarbonization as the number one priority in our management plan, we have implemented in-house training programs and a card game called "2030 SDGs" to Improving employee awareness.
- Calculate and visualize CO2 emission amount up to Scope 3 with " Zeroboard "
- CO2 reduction measures are listed and posted on a portal site that can be viewed by the entire company
- Developing New environmentally friendly businesses
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Obtained effect
- Employees' awareness of environmental issues has improved
- Our efforts were evaluated by a bank and we were approached for a sustainability-linked loan.
- A path forward for developing low-carbon cleaning Service has been laid out
Connect climate change initiatives to differentiating yourself from other companies and improving employee treatment

SDGs Promotion Department Executive Officer and General Manager of SDGs Promotion Department Atsushi Watanabe
--What prompted you to start working on decarbonized management?
Watanabe: It all started when our CEO suddenly told us in the early summer of 2020 that "the Earth is in a terrible state." At the time, there were few books on SDGs or decarbonization, so we started by groping around and researching where to start.
At first, I thought that we should first solve the unique challenges of being an essential worker, so I doubted whether environmental measures were really what we should do now. However, I am convinced that by tackling environmental issues, we can differentiate ourselves from other companies and lead to better treatment for our employees.
While addressing the issue of climate change is a major goal of decarbonized management, we believe that being recognized for our efforts in environmental issues will help us differentiate ourselves from other companies. The building maintenance business has become a commodity and tends to be compared on price, so we thought that by offering environmentally friendly Service, we could differentiate ourselves from other companies in areas other than price and quality. The development of REITs (Real estate investment trusts) has changed the Real estate industry. If investors start to consider the environmental impact of their choices, like ESG investment, rather than being judged solely on yield, we believe that our efforts will also be recognized.
-Why did you start by changing the company's attitude?
Watanabe: I thought that unless employees took the issue personally, progress would not be made. If decarbonization were to be seen as something that only the Company or the country could do, nothing would get done. I knew people would say it was a roundabout way of doing things, and they have, but I told the CEO and executives that it would take three years, and we are working steadily on it.
Not everyone will understand the essence of the matter right away. We also need to deepen the understanding of those in authority, so we decided to approach each individual and set a goal of first getting 30% of all employees to understand, and then gradually raise awareness throughout the organization. The significance of the SDGs is difficult to understand, so visualization is necessary to change the way others view them. In fact, some people said, "It was only after seeing the GHG emission amount data that I was able to understand it."
Incidentally, when I asked the CEO later why he had suddenly started talking about the global environment, he told me it was because of the intense heat he felt while umpiring a children's baseball game. "When I was a young baseball player, it wasn't as hot as it is now. I got interested and looked into it, and found that if global warming continues at the current rate, it will cause serious problems. This is the responsibility of adults, including myself, so we need to leave a clean global environment for the next generation." As a result, he apparently came to think that the Company should also tackle environmental issues.
Using card games to change the company's mindset
--Please tell us what measures you have taken to raise environmental awareness within the company.
Watanabe: In August 2020, the CEO instructed the Corporate Planning Department to incorporate the SDGs into the next fiscal year's business plan. In response, I obtained certification as a certified facilitator for the card game "2030 SDGs"* in December. Our two-year business plan incorporating the SDGs began in April 2021, and the same month, we launched the "SDGs Project" as an in-house training program. The "SDGs Project" is a monthly training program with several participants from each department, and approximately 80 employees have already participated. We also held a project to deepen learning through a card game, allowing employees unaccustomed to deskwork to gain a hands-on understanding of the SDGs. Of the 3,000 employees, including part-timers, 800 have already participated in the card game. We determined our Group Sustainability Goals in January 2022, signed a contract with Zeroboard in November , and began visualizing our CO2 emission amount up to Scope 3.
The sustainability report we submitted for the first time to the general shareholders' meeting in June 2023 has also helped change awareness within the company. It is true that by making it visible, more employees have come to understand and understand what it is all about. Since the initiative began amidst some skepticism, I feel that having something tangible has had a major impact on changing awareness.
*Card game "2030 SDGs" ( https://imacocollabo.or.jp/2030sdgs/ )
This game allows players to experience the journey from now to 2030 to achieve the 17 SDGs, helping them to understand "why the SDGs are necessary for our world" and "what changes and possibilities they will bring."

Employees participating in the card game "2030 SDGs"
Developed a New environmentally friendly business. Calculation of the organization's GHG emission amount was achieved in approximately three months.
Watanabe: In parallel with our change in mindset, we also considered starting a New environmentally friendly business. This Service focuses on the water used in building cleaning. Because cleaning generates a lot of wastewater, we need to provide Service with a lower environmental impact. However, since the water and electricity used in building cleaning services are generally borne by the customer, it is not realistic to measure the amount of wastewater generated. Therefore, we focused on detergents and stripping agents, which are the causes of water pollution. We propose cleaning using alkaline water by adjusting the pH of the water instead of detergent, and strive to produce wastewater with as low an environmental impact as possible. We continue to measure the amount of detergent and stripping agent purchased to confirm whether we have reduced our environmental impact.
--How did you go about calculating emission amount?

(Left) Mr. Ryohei Kobayashi, Manager of the Corporate Planning Department (Right) Mr. Atsushi Watanabe, Executive Officer and General Manager of the SDGs Promotion Department
Watanabe: CO2 emission amount are invisible, so we felt the need to visualize them from the beginning of our decarbonization efforts. We started by researching what the GHG Protocol is and considered developing free tools and visualization tools ourselves, but we felt that we couldn't do it without professional support, so we introduced Zeroboard in November 2022. We started calculations in December 2022, and with calculation support, we completed data entry for fiscal year 2022 by the end of January 2023. As of February, we were able to visualize up to Scope 3 on the Dashboard, so we believe we were able to proceed quickly.
--How are you going about Settings reduction targets and methods for achieving them?
Watanabe: Even though we visualized the data, we weren't sure at first whether the figures we came up with were large or small. Therefore, we consulted with Zeroboard to refine our calculations and develop reduction plans. Because we're not a Manufacturing company, Scope 3 accounts for a large portion of our emissions, at 88%, so we set targets based on the Science Based Targets (SBT) standards. We're starting by reducing CO2 emission amount from Scope 1 and 2, which we can control ourselves. For example, we've compiled a list of CO2 reduction measures and published it on our internal portal site so that each business division can view it. The list is available in spring/summer and fall/winter versions, showing energy-saving items, reduction effects, and the level of difficulty of each initiative. There are about 40 measures in each version, and by indicating the level of difficulty, each business division can identify measures that they can implement.

A list of CO2 reduction measures being implemented across the company on the company's portal site
"Zeroboard" is frequently updated, and the good thing about it is that users can make requests and work together to create it. When I heard the explanation from the sales person, I felt that it was a Company that seemed to be doing interesting things, and it was also attractive that I could consult with experts that were not in-house, and that I could consult with other companies that are working on decarbonization across industries in the Zeroboard Community "All Aboard".
Employee awareness has increased, and we have received new inquiries and sustainability-linked loan inquiries from outside the company.
--What results have you gained as a result of tackling environmental issues?
Kobayashi: I had only heard of terms like SDGs and decarbonization before, but after transferring to our company last year and becoming involved in the "SDGs Project" and "SDGs Card Game," it went from being something that concerned someone else to something that concerned me. I also feel that there has been an increase in conversations about SDGs and decarbonization within the company. As we move forward with these initiatives, we will strive to provide new Service as a building maintenance company.
Watanabe: We have seen visible results both inside and outside the company. As for results seen within the company, as Kobayashi mentioned, employees' environmental awareness has increased. It feels like there has been a change in the way we perceive the news and issues happening in the world. Also, through the training project and card game, more and more people are spreading the perspective of environmental issues within the organization, and some departments have begun Settings goals for themselves.
One of the reactions we received from outside the company was when a bank approached us about a sustainability-linked loan. This was the result of the high evaluation of our sustainability report, which was published in 2023, so we felt it was an effective way to promote ourselves as a company.
Although the response to our environmentally friendly cleaning Service is still weak, we are receiving more inquiries from unexpected places. We are now receiving inquiries from daycare centers and schools as an alternative to detergents. In the future, we will develop low-carbon cleaning Service that indicate the CFP (carbon footprint) of the cleaning, and approach not only existing clients but also New clients. We hope that society as a whole will pay more attention to environmentally friendly Service, and as a result, the Service we are working on will also be chosen.
Thank you very much. We will continue to support you so that your efforts towards SDGs and decarbonization will lead to new possibilities for your company.
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Zeroboard Inc.
Customer Success Department
After working in product development for network equipment, he was involved in launching a solar power generation Company and a repair service Service.
Support track record: Mainly supports enterprise projects and the Manufacturing industry.
We believe that the main factor that enabled the process to be smoothly transferred to the subsequent practitioners was that the Promotion Department Manager, Mr. Watanabe, first understood the calculation system and then handled the work of registering it on "Zeroboard."
In small and medium-sized enterprises, when the Top management takes the lead, as is the case with NIKOH SANGYO co.,Ltd. , the initiative spreads throughout the company more quickly and it tends to be easier to move on to the next step.
We will continue to provide our full support to help you further step up your sustainability efforts.
