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, we 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 the Z Holdings Group. Specific initiatives explained in this web page are mainly of Yahoo Japan Corporation (“Yahoo! JAPAN”). As for data coverage, please see here.
Promotional Structure and Overview
Structure to Promote Environmental Initiatives
Environmental initiatives are promoted under the following structure.
Outline of Environmental Load
- * For material balance coverage, please see here
Gross CO2 Emissions and Total Energy Consumption
The figures are the total of the Z Holdings Group companies. 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)|
- * 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 in parentheses and figures of CO2 emission per energy consumption are of Yahoo! JAPAN facilities (including data centers) and group companies operating in these facilities.
- * For the coverage of each environmental index, please see here.
Environmental Impact of Our Data Centers
The environmental impact of data centers used by Yahoo! JAPAN is as follows. The renewable energy ratio is increasing as a result of transition to our U.S. data centers that are powered 100% by renewable energy, among other efforts. We will strive to further increase this renewable energy ratio.
Total Energy Consumption (GJ)
Renewable Energy Consumption (GJ)
Renewable Energy Ratio (％)
- * 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 Strategies
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
Endorsement of TCFD Recommendations
The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), an international body participated by central banks and financial supervisory agencies of major countries, issued a recommendations report stating to “support companies that disclose information on risks and opportunities relating to climate change” in June 2017. In June 2020, the Z Holdings Group declared that it supports the recommendations, and officially joined the supporters. Referring to these recommendations, the Z Holdings Group also 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 Scenario 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. The risks and opportunities identified were shared for feedback across the company through Yahoo! JAPAN’s risk management division and were reflected in the formulation of strategies of each division after the divisions considered the specific risks and opportunities according to the characteristics of their business and services. Along with this, relevant sections in the Z Holdings Group including 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
|Biological environment||Living organisms||
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 “Mitigation” of Climate Change
|By FY2028: reduce CO2 emissions per revenue by 50% from FY2008 levels (45,181t-CO2 / 265,754 million yen)||Down 30.4％||Down 37.6％||Down 33.9％|
- *The revenue for FY2008 is based on JGAAP, and the revenues from FY2017 onward are based on International Financial Reporting Standards (IFRSs).
Initiatives related to “Mitigation” 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.
Efforts Toward RE100 and Beyond
In the efforts to reduce its impact on the environment, the Z Holdings Group aspires to meet the RE100 goals across the Group. As a first step, the Group’s core company, Yahoo! JAPAN, has declared its commitment to achieving the shift to 100% renewable energy by the end of fiscal year 2023.
In addition, with a view to expanding renewable energy supply sources in Japan and promoting carbon neutrality initiatives undertaken by local governments, Yahoo! JAPAN started “Yahoo! JAPAN Regional Carbon Neutrality Promotion Project” in January 2021.
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. The carbon credits from the extra amount reduced were presented to the Tokyo Metropolitan Government as part of our cooperation with the “Zero Emission Tokyo” initiative undertaken by the Metropolitan Government. 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.
Provision of recycling services
As an initiative to promote low-carbon products and services and in order to realize a recycling-based society through recycling, Yahoo! JAPAN offers YAHUOKU! and PayPay Flea Market in its e-commerce reuse business (transaction value for fiscal 2019: JPY 804.1 billion).
Each of these platforms focuses also on charity projects and social contributions.
Launched in September 1999, YAHUOKU! is one of Japan’s largest online auction/flea market app which made CtoC trade of goods possible over the Internet.
By connecting people who no longer need the goods to those who need them, YAHUOKU! promotes reuse and aspires to contribute to the building of a recycle-based society.
PayPay Flea Market
Launched in October 2019, PayPay Flea Market is an app that specializes in flea market-type transactions. In this app, individuals can easily trade goods at fixed price.
In collaboration with YAHUOKU! which offers auction deals, we endeavor to further develop our business in sustainable secondary distribution.
Target for “Adaptation” to Climate Change
|Target for “Adaptation” to Climate Change||FY2017||FY2018||FY2019|
|Conclude disaster alliance agreements with local municipalities to cover 90% of Japanese population by fiscal 2025||58.3％||66.3％||84.5％|
Initiatives related to “Adaptation” 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. In addition to these, the “Disaster Map” function enables users to share disaster situations and lifeline status in their locations, which will help prompt and timely evacuation.
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.
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.
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 operated by Yahoo! JAPAN
Deforestation reduction equivalent to 429 trees
Deforestation reduction equivalent to 501 trees
Deforestation reduction equivalent to 430 trees
CO2 reduction of approx. 47.18t
CO2 reduction of approx. 51.02t
CO2 reduction of approx. 38.60t
Protection of 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||FY2017||FY2018||FY2019|
|JPY 4.7 million||JPY 8 million||JPY 10.35 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.
Using World Resources Institute’s (WRI) Aqueduct Water Risk Atlas, we periodically check the water stress of the water source from which we receive water supply for our business activities. With regard to the water source of the data centers, which account for the majority of the company’s water consumption, we have confirmed that the water stress and overall water risk are not high, with the risk level being “Low-Medium” both in Japan and overseas. We will maintain the monitoring system to continuously watch for changes in water stress, and will take appropriate steps if the water stress is judged to be high.
|% of water expense to total expense||FY2018||FY2019|
- * Figure for Yahoo! JAPAN. Total expense = Selling, general and administrative expenses
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.
We practice sustainable procurement by increasing the proportion of office supplies, etc. procured in a sustainable manner.
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.
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.
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 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 Third-party Verification and External Evaluation Agencies
Third-party Verification of Greenhouse Gas Emissions and Energy Consumption Volumes
In order to ensure high reliability of our reported environmental data, Yahoo! JAPAN, along with its parent company SoftBank Corp., underwent ISO14064-3-compliant third-party verification for objective evaluation of our environmental data.
The verification was conducted at the “limited assurance level” and covered Yahoo! JAPAN (including its overseas bases) and its parent company SoftBank Corp. (including its base stations) for Scopes 1 and 2, and SoftBank Corp. for Scope 3.
For fiscal 2019, the verification was conducted with respect to greenhouse gas emissions and energy consumption volumes under Scopes 1 and 2, and greenhouse gas emissions under Scope 3 (Categories 1 – 8, 11 – 12, and 14). As a result, there was no item that was found to be “non-compliant with the calculation rules and not accurately calculated.”
Going forward, we will expand the scope of activities and organizations to be covered by verification.
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.
Coverage of Environmental Index
The coverage of each environmental index reported in this page is calculated based on the proportion in revenue and is listed below.
|CO2 (Scope 1 & 2)|
|Water, water discharge|
|Total energy consumption|
|Gasoline for automobiles|
|Heavy oil for emergency generators|
|Renewable energy consumption, renewable energy ratio|
|Kerosene for boilers|
|Light oil for diesel engine vehicles|
|CO2 (Scope 3)|
|Investment in biodiversity protection|