Dealing with Natural Capital

While information technologies make the world a richer and more convenient place, they have an impact on the environment in the form of CO2 emissions from the consumption of electric power and other energies. The environmental impact is increasing with the expansion of the industry as a whole. To realize a sustainable society, The Z Holdings Group (“Z Holdings”) will make efforts to address climate change as well as strive to reduce the environmental impact derived from business activities, implement measures to reduce waste, and protect biodiversity.
We will also aim to help society by preparing and enhancing solutions so as to respond to the threat of natural disasters that are becoming more intense and frequent due to climate change.

*This web page covers the activities of Yahoo Japan Corporation (“Yahoo! JAPAN”). We intend to sequentially introduce the information of other group companies as they become available.

Promotional Structure and Overview

Structure to Promote Environmental Initiatives

Environmental initiatives will be promoted under the following structure.

This is a diagram showing the promotion structure of the Z Holdings Group's environmental measures. The measures are being implemented by the CSR promotion departments of each group company in cooperation with the departments involved in each measure. In addition, the status of activities is reported to the CEO and directors of Holdings through the CSR Promotion Committee, which is owned by the Managing Executive Officer of Z Holdings. The committee is managed by Z Holdings' CSR Promotion Division as its secretariat.
ZHD: Z Holdings Corporation

Outline of Environmental Load

This is the material balance diagram of The Z Holdings Group for fiscal 2018. The target is Yahoo Japan Corporation and the group companies on the site, and the group companies shown below in the figure. In the course of its business activities, The Z Holdings Group will supply 230 million kilowatts of electricity, 23 thousand tons of gas, 34 million tons of water, 27.9 tons of paper, 80 kl of heavy oil for emergency generators, 575 kl of kerosene for boilers, 239 kl of gasoline for automobiles, and 511 kl of light oil for diesel vehicles. Utilization of CO2 is 101,000 t-CO2, wastewater is 344,000 m2, and the waste recycling rate is 95.1%. In addition, Scope 3 emits 1,339,004 t-CO2. Breakdown includes Category 1: Purchased products and services 1,063,662t-CO2, Category 2: Capital goods 5,726t-CO2, Category 3: Fuel and energy activities not included in Scope 1,2 1,958t-CO2, Category 4: Transportation, Delivery (upstream) 34,069t-CO2, Category 5: Business waste 946t-CO2, Category 6: Business trip 1,110t-CO2, Category 7: Employee commuting 879t-CO2, Category 8: Lease assets (upstream) 0t -CO2, Category 11: Use of sold products 108,480t-CO2, Category 12: Disposal of sold products 122,174t-CO2.
The Z Holdings Group’s material balance (fiscal 2018)
  • *Figures for electricity, gas, water, kerosene, gasoline, light oil, CO2, water discharge, waste, recycling rate and Scope 3 are the sum of categories 6 and 7 for Yahoo! JAPAN and categories 1 to 8, 11 and 12 for ASKUL Corporation.
  • *In addition, figures for Magne-Max Capital Management, Ltd. are included in water, paper, CO2, water discharge, and waste.
  • *In addition, figures for ValueCommerce Co., Ltd. are included in paper and CO2.
  • *In addition, figures for Dynatech inc., eBOOK Initiative Japan Co., LTD., and Techbase VietNam Company Limited are included in CO2.

Gross CO2 Emissions and Total Energy Consumption

The figures are the total of Yahoo! JAPAN’s facilities (including data centers), 16 subsidiaries located in the same premises, and group companies indicated in the notes. CO2 emission per energy consumption is decreasing due to improved energy use efficiency in data centers.

Fiscal Year Scope 1 & 2 Gross CO2 Emissions (t-CO2) Scope 3 Gross CO2 Emissions (t-CO2) Total Energy Consumption (GJ) CO2 Emission per Energy Consumption (t-CO2/GJ)
2012
88,494 1,775,066 0.050
2013
108,234 1,906,624 0.057
2014
121,763 2,089,167 0.058
2015
137,130
(121,987)
2,181,362 0.056
2016
107,594
(86,551)
1,940,045
(1,607,567)
0.054
2017
106,371
(83,865)
2,191,711
(1,792,129)
0.047
2018
101,314
(81,226)
1,339,004 2,286,877
(1,815,357)
0.045
  • * CO2 emissions until fiscal 2015 are calculated including those for leased-out assets (data center of IDC Frontier Inc.) and excluding borrowed rental assets (data center of BroadBand Tower, Inc.). From fiscal 2016, figures for leased-out assets are excluded, but those for borrowed rental assets are included.
  • * Figures outside of brackets under Scope 1 & 2 Gross CO2 Emissions for fiscal 2016 and 2017 include figures for ValueCommerce, ebooksjapan and ASKUL, and the same for fiscal 2018 includes figures for Magne-Max, Dynatech, Techbase Vietnam in addition to the aforementioned three companies.
  • * Scope 3 for fiscal 2018 is the sum of category 6 (business travel) and category 7 (employee commuting) for Yahoo! JAPAN and categories 1 to 8, 11 and 12 for ASKUL.
  • *Figures outside of brackets under Total Energy Consumption include figures for ASKUL.

Environmental Impact of Our Data Centers

The environmental impact of data centers used by Yahoo! JAPAN is as follows. We will expand the coverage of this data in the future.

Fiscal Year Renewable Energy Consumption (GJ) Renewable Energy Ratio (%) Renewable Energy Ratio (%)
2015
45,645 3.6% 1.63
2016
98,383 6.5% 1.57
2017
117,361 7.0% 1.56
2018
134,149 7.9% 1.56
Total/
Average
395,538 6.5% 1.58
  • * With respect to Renewable Energy Consumption and Renewable Energy Ratio, only the electricity that we directly purchase after we have specified the power sources is included in these figures. Renewable energy included in the electricity we procure from electric power companies without specifying the power source is not included in these figures.
  • * Average PUE is the average of all data centers operated by Yahoo! JAPAN for its businesses.

Climate Change Initiatives

Policy for Addressing Climate Change

A healthy global environment is the basis on which people’s lives and society function. Without it, there can be no development of an information technology society. The Z Holdings Group strives to address climate change by setting goals in terms of “mitigation” and “adaptation”. In terms of “mitigation”, we carry out various initiatives to reduce the emission of greenhouse gas (GHG), which is the cause of climate change and global warming. In terms of “adaptation”, we take measures based on an outlook that global warming will continue for the time being. In particular, we address increasingly intensifying disasters as a priority area, along with BCP. Going forward, we intend to engage in further measures such as adopting eco-friendly and clean energy initiatives at our data centers and carrying out ethical consumption.

Climate Change Risks and Opportunities

Disclosure referring to TCFD

The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB), an international body participated by central banks and financial supervisory agencies of major countries. In June 2017, TCFD issued a recommendations report stating to “support companies that disclose information on risks and opportunities relating to climate change.” Referring to this recommendation, The Z Holdings Group undertook the analysis of possible scenarios and summarized the risks and opportunities identified. Moving on, we will continue to make disclosures on governance, strategies, risk management, and indices and targets relevant to climate-related risks and opportunities.

Process of Our Analysis

Having predicted how the world might change if global warming accelerates as well as what legislations and rules may be enforced in response to such changes, Yahoo! JAPAN’s division in charge of promoting CSR identified potential risks and opportunities for the Z Holdings Group’s business with the aim to grasp and disclose risks related to climate change. Furthermore, various sections in the Z Holdings Group as well as Yahoo! JAPAN conducted risk analysis associated with climate change and defined climate change as a risk to be prioritized within the group. Moving forward, we will continue to implement necessary measures.

Scenario and Methods

We used RCP 2.6 (Low Stabilization Scenario) and IEA 450 as a scenario where the rise in the temperature is within 2°C, and used RCP 4.5 (Intermediate Stabilization Scenario), RCP 6.0 (High Stabilization Scenario), and IEA NPS as a scenario where the rise in the temperature exceeds 2°C.

Yahoo! JAPAN’s Risks and Opportunities

Risks Opportunities
Climate Temperature
  • Failure or decline in function of data centers (DC)
  • Increased frequency in over-load or concentration of accesses
  • Data unavailability
  • Power shortage due to unavailability of thermal power generation
  • Burden of carbon tax
  • Increase in electricity consumption (increase in cost)
  • Necessity of emergency power supply
  • Possibility that humans will not be able to work outdoors during daytime
  • Hike in purchase cost of supply chain
  • Business promotion in power generation fields
  • Securing of renewable energy in-house
  • Big data × Climate change business
  • Proprietary supply chain
Sunlight
Water/sea
  • Sinking of low-lying offices and DCs
  • Relocation of DCs to higher places/latitude
  • New construction of DCs that are not dependent on water-cooling
  • Securing and sales of water resources
Snow/hail
  • Dispersion of personnel in major services (e.g. media)
  • Strengthening of disaster BCP
  • (Especially ads) Impact of discouraged business, falling consumer confidence
  • Strengthening of disaster-response services
Typhoon
Biological environment Living organisms
  • Increase in injured or ill persons
  • Discontinuance of business due to restrictions on commute
  • Increase in demand for insurance (life, property & casualty) business
  • Substitution of manual labor to machines
  • Health and productivity management
  • Big data × home care service, etc.
Disease
Resources Food
  • Climate resilient agriculture and sales of these products
Energy resources
  • Promotion of underground development
Society Community
  • Sharp decrease in delivery persons (decline in logistics)
  • Rise in land price of areas suited for living
  • Increase in demand for home delivery in commerce business
  • Importance in connecting with people
  • Flexibility in residence areas
  • Regional risk analysis business
Activities
  • Decrease in advertising by environmentally-unfriendly companies
  • (Commerce) Change in hot-sellers
  • Frequent cancellations of events
  • Increase in advertising by environmentally-friendly companies
  • (Commerce) Change in hot-sellers
  • Activities will be mainly held indoors
  • Revision of regulations on personal information→ improved recommendation accuracy
  • Virtual events
Responses to Risks and Opportunities

We have classified the goals to manage climate-related risks and opportunities, and the specific measures under the two categories of “mitigation” and “adaptation”. These measures will also be promoted under the “Structure to Promote Environmental Initiatives” noted in the upper part of this web page.

Targets for “Alleviation” of Climate Change

Mid-Term Goals FY2017 FY2018
By FY2028, reduce CO2 emissions per revenue by 50% from FY2008 levels Down 30.4% Down 37.7%

Initiatives related to “Alleviation” of Climate Change

Data Center Initiatives

Most of the servers necessary to operate the Internet business are managed by our own facilities. In particular, at Asian Frontier, Yahoo! JAPAN’s data center in Kitakyushu City, Fukuoka Prefecture, as well as at our Shirakawa Data Center in Shirakawa City, Fukushima Prefecture, we implement measures to combat global warming using the latest technologies, including the installation of air conditioning systems that use outside air. We also work to improve the efficiency of energy use by continuously replacing facilities and making new capital investments.

Transition to the US Data Center

The U.S. subsidiary of Yahoo! JAPAN, Actapio, Inc. (former YJ America, Inc.) constructed a new data center in Washington State with approximately 1600 racks. It started operations in April 2019. The data center is located in Washington State, where hydraulic power generation is prevalent, and uses 100% renewable energy for its operation. Actapio, Inc. started operation of Yahoo! JAPAN’s first data center outside of Japan (200 racks) in December 2014 in Washington State. With the construction of this new data center larger in scale, our use of renewable energy will increase even further.

Addressing Laws and Regulations Related to Environment

With regard to the Tokyo Cap-and-Trade Program (scheme for mandatory reduction in overall emissions and trading of emissions) of the Tokyo Metropolitan Government that imposes mandatory reduction of CO2 emissions on large-scale facilities, Yahoo! JAPAN achieved a reduction of 14,565t-CO2 in excess of its reduction target for the 1st period (FY2010-2014) at two of its data centers in Tokyo. In addition, Tokyo Midtown in Roppongi, Minato Ward, where Yahoo! JAPAN’s head office was located at that time, was certified as a Top-Level Facility by the Tokyo Metropolitan Government for “outstanding global warming countermeasure efforts under the Tokyo Cap-and-Trade Program”.
We have reduced the use of inefficient data centers and have replaced them with efficient data centers, thus, we also expect to achieve targets for the 2nd period (FY2015-2019).

Response to “Zero Emission Tokyo”

In its report “Zero Emission Tokyo: A Sustainable and Resilient Strategy pursuing 1.5°C,” the Tokyo Metropolitan Government has laid out a vision to “seek to achieve the 1.5°C goal and realize a Zero Emission Tokyo to contribute to the goal of global net zero CO2 emissions by around 2050.” In accordance with this vision, the Z Holdings Group will strive to realize a net zero CO2 emission in its offices in Tokyo by 2050.

Target for “Adaptation” to Climate Change

Target for “Adaptation” to Climate Change FY2016 FY2017 FY2018
Conclude disaster alliance agreements with local municipalities to cover 90% of Japanese population by fiscal 2025 54.5% 58.3% 66.3%

Initiatives related to “Adaption” to Climate Change

Provision of Disaster Information in Yahoo! JAPAN Top Page and Apps

To reduce the number of victims of increasingly intensifying disasters, Yahoo! JAPAN Top Page, and apps for smartphones (Yahoo! JAPAN, Yahoo! JAPAN Disaster Alert and Yahoo! JAPAN Weather & Disaster)display information on earthquakes, tsunami and heavy rain. Especially, Yahoo! JAPAN Disaster Alert app promptly provides information on all kinds of disasters, such as earthquake early warnings, tsunami information, degree of heavy rain hazards, torrential rain forecasts, and information on landslide disasters, floods, heatstroke, volcano and civil protection, via push notification. The notifications can also be sent to PCs and mobile phones via email.

Yahoo! JAPAN Weather & Disaster provides “caution” and “warning” information on rivers as well as river water levels, enabling early judgment of voluntary evacuation by indicating 10-minute changes in water levels at observatories on the map. It also provides a “rain cloud radar” that shows real-time movement of clouds as a feature to help protect against torrential rain.

Disaster Alliances

We promote the conclusion of alliances with local authorities in order to deliver disaster information in a timely manner to the residents when disaster strikes, and release cached version of their websites. Displaying their websites on Yahoo! JAPAN’s server prevents the servers of the local authorities from overloading and thus contributes to continuous delivery of disaster information. In addition, we provide features to directly distribute, via the Disaster Alert app, emergency information that local authorities want to deliver, such as warnings and information on the opening of evacuation centers. We also contribute to raising disaster-prevention awareness in normal times by displaying evacuation centers on maps.

SEMA (Social Emergency Management Alliance)

SEMA is an initiative of private companies and civil society organizations for providing support at times of disasters in Japan. SEMA puts together a list of the supplies and services of the member companies and organizations from normal times. When a major natural disaster occurs, it swiftly delivers available supplies to the affected areas based on this list.

Waste Management

Our Measures on Waste Management

The Z Holdings Group reduces greenhouse gas emissions by reducing the use of paper and plastic in our offices and the use of electricity. In addition, we promote the practice of reduce, reuse, recycle in the company to alleviate the environmental load.

Reducing Use of Plastic Straws and Cups in Our Company Café

We have reviewed the use of disposable plastic cups and straws in our company café in the Tokyo Kioicho office. We have introduced bamboo cups made from bamboo fibers, which are powdered and hardened with resin, to replace plastic cups. The material is environment-friendly, with small carbon footprint from manufacturing to disposal. Plastic straws have been replaced with biodegradable polylactic acid straws which uses sugar cane and corn as ingredients.
Along with this change, we have reviewed the prices of drinks so that the standard prices of drinks will be set for drinks provided in bamboo cups (15 yen cheaper than before). In case drinks in plastic cups and straws are chosen, the user will pay 15 yen for the plastics. Bamboo cups will be reused after cleansing and will also be allowed to be taken to employees’ desks.

The introduction of the bamboo cup is expected to reduce a maximum of 10,000 plastic cups per month. We will continue our efforts to reduce plastic waste.

Conversion to Paperless Offices

By distributing laptop computers and tablets to our employees, digitizing materials for meetings to be viewed on computers or with projectors, and promoting online work, we are greatly reducing the volume of printed documents and making the shift to paperless offices.

Promotion of Reduce, Reuse, Recycle

At the Kioicho office in Tokyo, we have reduced energy consumption by switching to LED lighting throughout the entire building, and have promoted reusing and recycling by separating garbage into 15 categories. We have also made efforts to conserve forest resources while ensuring confidentiality and recycling through the use of “Mamoru-kun”, a recycling box for used paper. At the company cafeteria, we minimize food loss by using the same ingredients for different menus that are changed every day.
We also recycle uninterruptible power supply (UPS) batteries at our data centers.

Measure FY2017 FY2018
Paper Recycling Deforestation reduction equivalent to 429 trees Deforestation reduction equivalent to 501 trees
Carbon Offset CO2 reduction of approx. 47.18 t CO2 reduction of approx. 51.02 t

Protect Biodiversity

Initiatives to Protect Biodiversity

As an enterprise that strives to be in harmony with the natural environment, local communities and future society, the Z Holdings Group takes on initiatives to pass on sustainable biodiversity to future generations.

Investment in biodiversity protection FY2016 FY2017 FY2018
JPY 5.2 million JPY 4.7 million JPY 8 million
Cooperating with “Future and Coral Project”

The deterioration of the marine environment, which is influenced by climate change, is causing coral reefs to die out. To tackle this issue, SoftBank Corp. along with Onna Village in Okinawa Prefecture—the village that has seeded the most corals in the world—and many other enterprises and organizations, initiated “Future and Coral Project” in order to protect the environment through countermeasures against global warming and conservation of the ecosystem. Yahoo! JAPAN cooperates by raising donations to plant coral seedings through Yahoo! JAPAN Internet Fund Raising and reporting the issue through “Gyoppy!”.

Supporting Carbon Offset Campaigns for National Parks and World Natural Heritage Sites

Since August 2017, Yahoo! JAPAN has supported the initiative for the prevention of global warning “Carbon Offset Campaigns Targeting Japan’s National Parks and World Natural Heritage Sites” a collaborative initiative between the Ministry of Environment and the Ministry of Economy, Trade and Industry, and participates in the conservation activities in national parks and world natural heritage sites.
In this campaign, energy used and carbon dioxide emitted around the national parks will be reduced or offset by introducing energy-efficient/renewable energy equipment and forest management. By informing the public of these activities, the campaign aims to stimulate action to prevent global warming.
Yahoo! JAPAN purchases J-Credits (*1) through the campaign secretariat office. Half the purchased amount is used for the preservation of national parks and the World Natural Heritage sites. The rest is credited to project participants (*2) and is effectively used.

  • *1: J-Credit Scheme is a scheme under which the Government of Japan certifies credits for the amount of greenhouse gas emissions reduced through efforts made by introducing energy-saving devices, as well as the amount of such emissions removed and volume absorbed through appropriate forest management.
  • *2: Organizations and companies that take initiatives to reduce greenhouse gas emissions and increase absorption volume. J-Credit project participants sell J-credits based on calculations made according to emission reduction and absorption volume and these “credits” can be utilized to reduce the running cost of facilities and to make new energy saving investments.
Efforts to Conserve and Restore Biodiversity by Maintaining Biotope

In an effort to conserve biodiversity and to contribute to local communities, Yahoo! JAPAN is working on an urban development initiative in Kioicho Garden Terrace, where Yahoo! JAPAN’s Tokyo office is located, to form an ecological network (corridor) connecting precious greens in central Tokyo. Yahoo! JAPAN is working on this initiative to conserve and recover biodiversity through biotope regeneration.
Specifically, since June 2016, we have been building an environment so that fireflies (which have been identified to inhabit the inner moat of the Imperial Palace close to our office) can now live in the Kioicho biotope, which has become a model for natural regeneration.

Transactions of All Ivory Products Banned in Yahoo! JAPAN’s E-Commerce Services from November 1, 2019

In the past, Yahoo! JAPAN provided opportunities for legal ivory transaction in Japan in compliance with the Law for the Conservation of Endangered Species of Wild Fauna and Flora.
However, we have confirmed multiple reports in which ivories that were traded in Japan through YAHUOKU!, our online auction service, were smuggled abroad and detected by foreign customs authorities. Considering the global situation over ivory trade as well as advice from environmental groups, Yahoo! JAPAN has decided to ban the transactions of all ivory products in its e-commerce services from November 1, 2019.

Protection of Water Resources

Initiatives to Conserve Water Resources

The Z Holdings Group does not require a large amount of water or water of a designated quality for its normal business activities. However, regarding the management of water resources as an important challenge in environmental protection, it analyzes risks and manages the quantity of water intake and discharge. Yahoo! JAPAN’s water use largely consists of water used for cooling and humidifying at data centers and water used for employees’ office life. For offices, we make efforts to conserve water by using only the amount necessary of our office life, and by using rain water through the building system.

We use industrial water that has high reutilization rate and underground water that has high spring water coefficient for data centers, based on annual plans. Thus, our use has no environmental impact that may lead to the depletion of resources. Since water is only used for cooling and humidification, our water discharge does not cause contamination, either. Management and supervision of drainage is appropriately conducted in collaboration with responsible authorities. Moreover, we endeavor to conserve water resources through measures such as taking in outside air to improve cooling efficiency.

% of water expense to total expense FY2018
0.01%
  • * Figure for Yahoo! JAPAN. Total expense = Selling, general and administrative expenses

Sustainable Procurement

Initiatives for Sustainable Procurement

The Z Holdings Group carries out procurement activities based on its Basic Policy on Procurement, which places emphasis on “fairness,” “security,” and “consideration of human rights” among others. In respecting the environment, we have provided a section titled “Environmental Conservation” in the Basic Policy on Procurement, based on which we procure goods and services with low environmental impacts. We have also included “Consideration for the Environment” in our evaluation criteria for our business partners and suppliers, through which we assess whether clients actively give consideration to environmental issues.

Furthermore, in procurement activities through the procurement division, which account for most of the procurements for the company, we ensure that the division enters into a business agreement that stipulates compliance with the Basic Policy on Procurement with its clients before carrying out business.

Communications with Environmental NGOs

In 2019, we received an engagement from an environmental NGO, Rainforest Action Network, on the possible risk of procuring paper from a manufacturer that produces paper that does not meet the procurement standard of paying due consideration to sustainability. As a result of investigations, we found out that we had an indirect transaction with the applicable manufacturer, thus we changed our procurement source to a partner that meets the business partner evaluation criteria of “consideration for environmental issues” and “securing of occupational health and safety”, etc.

Services that Contribute to a Sustainable Society

Initiatives in Services that Contribute to a Sustainable Society

The Z Holdings Group makes efforts to solve problems by leveraging IT and web-based services in order to realize a sustainable society.

Yahoo! JAPAN Internet Fund Raising

Yahoo! JAPAN Internet Fund Raising is a donation platform that was launched in the wake of the Niigata Chuetsu Earthquake in 2004. It provides a platform to promote continuous support of organizations that address various social problems such as supporting areas hit by large-scale disasters in Japan and abroad, support for refugees, children’s poverty, and the protection of the sea, forest and endangered wildlife.

YAHUOKU!

Launched in September 1999, YAHUOKU!, is one of Japan’s largest online auction and flea market apps, which enabled the online trading of goods. We strive to take part in the establishment of a recycling society through the promotion of “reuse” by facilitating the sale of goods no longer in use to someone who needs the item.

Gyoppy!

Launched in October 2018, “Gyoppy!” is a media service aimed at raising readers’ awareness of marine issues such as declining fish catch, plastic waste, and ocean acidification. Some articles provide links to Yahoo! JAPAN Internet Fund Raising and purchase of ecofriendly fish, etc. so that readers can contribute to the solving of these issues after reading the articles.

Yell Market

Yell Market was launched as the “Recovery Department Store” in December 2011, in the wake of the Great East Japan Earthquake. It currently serves as a shopping platform under the concept of “shopping is cheering,” and supports ethical products that give consideration to people, society, local areas, and the environment.

Response to External Evaluation Agencies

Information Disclosure to CDP

The Z Holdings Group discloses information on the group’s environmental impact to CDP, an international NGO that runs a global information disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

CDP rogo