Yamaguchi Heavy Industries, the first company in Asia to obtain PAS 2080 certification, is expected to achieve its greenhouse gas emission amount reduction target ahead of schedule.
Yamaguchi Heavy Industries, the first company in Asia to obtain PAS 2080 certification, is expected to achieve its greenhouse gas emission amount reduction target ahead of schedule.
Person in charge (department and title at the time of interview)
CEO
Mr. Toyokazu Yamaguchi
As efforts toward decarbonization as a measure against global warming accelerate worldwide, this trend is becoming more pronounced in the construction and steel industries as well. Yamaguchi Heavy Industries Co., Company, a steel frame fabricator that will celebrate its 75th anniversary in 2024, is at the forefront of this trend and is working to put decarbonization into practice.
In February 2024, the company became the first in Asia to obtain PAS 2080 (standard for accounting and reporting greenhouse gas emission amount in construction and infrastructure development) certification. We spoke with CEO Yamaguchi about how the company began working on decarbonization management, the difficulties and ingenuity it faced in obtaining PAS 2080, and its future outlook.
Background to the start of decarbonization efforts
Participating in the University of Tokyo EMP program and focusing on "decarbonization"
As a steel fabricator, we wanted to be a pioneer in the industry and obtain PAS 2080 certification.
Initiative Contents
PAS 2080 certified
Calculate and visualize CO2 emission amount up to Scope 3 using " Zeroboard "
Collaborating with SoftBank to reduce CO2 emission amount
Obtained effect
Improved employee awareness of decarbonization
Funding through positive impact finance
CO2 emissions reduction target expected to be achieved ahead of schedule
Participating in the University of Tokyo EMP has given attention to the trend towards decarbonization
--Please tell us how you started working on decarbonizing management.
In 2020, I enrolled in the 23rd batch of the University of Tokyo's Executive Management Program (EMP). There, I encountered many terms I had never heard before, such as "circular economy." I became very interested in environmental measures after hearing various stories from friends who were working on environmental issues.
After completing the program, a classmate who was working at a Financial Institution and had been transferred to London told me, "In the UK steel market, you hear the term 'green steel.' It seems to refer to a material made with electricity from renewable Energy."
At first I only heard about it casually, but as I looked into it more deeply I thought it might become a future trend.
At the time, green steel was not a hot topic in Japan, but now, four years later, it has become a trend in the steel industry to actively work towards decarbonization.
Using "Zeroboard" to become the first in Asia to obtain PAS 2080
-Please tell us why you decided to introduce Zeroboard.
Our company is actively working on digital transformation, including introducing IT systems with the help of SoftBank. SoftBank also introduced us to "Zeroboard."
The calculations using "Zeroboard" are mainly done by administrative staff. We also receive support from Zeroboard consultants, so it can be operated even with almost no specialized knowledge of the environment.
Before introducing "Zeroboard," we could only calculate Scope 1 and Scope 2, but now we can handle up to Scope 3.
--Your company became the first in Asia to obtain PAS 2080 certification in February 2024. Why did you aim to obtain it?
In the construction industry, there is growing interest in efforts to achieve carbon neutrality and a circular economy. Among these, the keyword is "sustainability." By obtaining PAS 2080 certification, we believe we can fulfill our environmental responsibilities and set a precedent for building a better future.
--Please tell us about the difficulties you faced and how Zeroboard helped you.
The specifications and standards were all in English, so I struggled with whether I could understand them correctly and whether I could translate Japanese into English well. However, I had done some advance preparation, so I was able to obtain the certification in a short period of time.
To obtain PAS 2080 certification, it was necessary to accurately calculate greenhouse gas emission amount, etc. By drawing on the knowledge of experts at Zeroboard and disclosing information in accordance with disclosure rules, the process went relatively smoothly.
Achieving greenhouse gas reduction target ahead of schedule
--Your company has set a goal of "reducing greenhouse gas emissions by 55% compared to 2013 levels by 2030." Please tell us about the specific Contents you are taking.
At COP28, where greenhouse gas emission reduction targets and measures to combat climate change are being discussed, Japan has set a goal of reducing greenhouse gas emissions by 46% compared to fiscal 2013 levels by fiscal 2030. When we first began working on decarbonization management, our company also set a goal of reducing emissions by 46%, but we revised our target once we finished calculating our greenhouse gas emission amount in 2022. We were confident that we could easily achieve this goal by categorizing the greenhouse gas emission amount associated with Manufacturing processes and working to reduce them.
We learned that the UK, which had set the highest global target, had set a 55% reduction in emissions, so we also Settings a new KPI of a 55% reduction in emissions. Specifically, we have made all electricity used in Manufacturing processes non-fossil fuel. With the cooperation of SoftBank, we are moving forward with efforts such as switching to renewable Energy, and it looks like we will reach our target sooner than expected.
Aiming to be the world Top in decarbonization management
--When implementing decarbonized management, are there any efforts you make to gain understanding and cooperation within the company?
We are increasing the number of in-house training opportunities. In addition to basic explanations of decarbonization and carbon neutrality, we have undertaken various initiatives, such as sharing materials from the Ministry of the Environment to learn about the government's goals and inviting external experts to provide training. As a result, I feel that employees' awareness of decarbonization management has gradually been fostered.
-Have you noticed any changes in your surroundings since introducing Zeroboard?
It has also helped us to gain the trust of our business partners. Many of our business partners know about "Zeroboard", and we often have the opportunity to talk about it as a common topic, saying "Oh, so you're using Zeroboard."
We are also taking on challenges beyond PAS 2080 in order to achieve decarbonized management. For example, in June 2021, we became the first company in Japan to receive the "BIM BSI Verification for Design and Construction" certification based on ISO 19650-1 and ISO 19650-2. This information management system utilizes digital modeling to cover the entire lifecycle of construction assets, from initial design to construction, maintenance, and final disposal, and will help us increase our productivity as a contractor to contribute to improving the sustainability of society.
We also invested in the Climate Transition Bonds, which will be issued by Japan in February 2024. These bonds are issued with the aim of transitioning to a decarbonized society, and will be advantageous to companies that actively work towards decarbonization.
We were also provided with "Positive Impact Finance" by the Shoko Chukin Bank, Company"Positive Impact Finance" is financing that analyzes the impact that corporate activity have on the environment, society, and economy, and provides support to improve the positive impact and mitigate or reduce the negative impact. When trying to make a positive impact on the environment and society, decarbonization is a major trend. We feel that calculating GHG emission amount with " Zeroboard " has led to trust, making it easier to Funding.
--Please tell us about your future efforts towards decarbonized management.
We will introduce "green steel," which is Manufacturing using a method that produces significantly less CO2 emission amount than conventional steel. While there is no denying that introducing green steel will have the disadvantage of increasing costs, we feel that in the future, if we do not take environmental considerations into account, we will face increasingly difficult challenges in terms of tax incentives and Funding. This is why we want to be one of the first to take action.
There are very few examples of calculating greenhouse gas emission amount from green steel, so I feel that we will be creating a model case, including the calculation method. In addition to obtaining PAS 2080 certification, we would like to commit to the higher-level international standard, PAS 2060.
--Please tell us what you would like to challenge yourself with in the future.
We aim to be the world's Top company in the steel structure fabrication industry. Environmental measures are essential to expand our business globally. Currently, we are focusing on decarbonization management in line with domestic standards, but in the future, we will work on environmental measures with a global perspective.
To achieve this, we are considering a new challenge: connecting GX with human capital. Although there are still some areas that are not yet clear, we are accumulating knowledge, such as becoming the first company in the construction industry in the world to obtain ISO 30414 certification, an international guideline for disclosing information on human capital. I believe there is definitely a correlation, so I would like to continue to take the initiative and lead the industry with environmental measures at the core.
