Realizing a Low-Carbon Society

To realize a sustainable society, the the Z Holdings Group makes efforts to address climate change, sets medium-term targets for reducing its environmental impact, and works with the supply chain to achieve the targets.

Environmental Data

Outline of Environmental Load

This is the material balance diagram of The Z Holdings Group for fiscal 2021. 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 442 million kilowatts of electricity, 85.2 thousand tons of gas, 635 Thousand ㎥ of water, 96.9 tons of paper, 95 kl of heavy oil for emergency generators, 610 kl of kerosene for boilers, 100 kl of gasoline for automobiles, and 591 kl of light oil for diesel vehicles. Utilization of CO2 is 142 Thousand  t-CO2, water discharge is 635 Thousand ㎥, and the waste is 4,686 recycling rate is 82.9%. In addition, Scope 3 emits 2,815,836 t-CO2. Breakdown includes Category 1: Purchased products and services 1,175,765t-CO2, Category 2: Capital goods 185,808t-CO2, Category 3: Fuel and energy activities not included in Scope 1,2 12,092t-CO2, Category 4: Transportation, Delivery (upstream) 165,057t-CO2, Category 5: Business waste 1,730t-CO2, Category 6: Business trip 72,621t-CO2, Category 7: Employee commuting 5,061t-CO2, Category 8: Upstream Leased assets 1,141t-CO2, Category 9: Transportation, Delivery (downstream) 716,763t -CO2, Category 11: Use of sold products 336,491t-CO2, Category 12: Disposal of sold products 143,307t-CO2.
The Z Holdings Group's material balance (fiscal 2021)
  • *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 promotion of introduction of renewable energy.

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)
2016
107,594
 
1,940,045
0.054
2017
106,371
 
2,191,711
0.047
2018
101,314
 
2,286,877
0.045
2019
118,345
1,338,755
2,731,073
0.045
2020
118,058
2,248,755
2,983,240
0.040
2021
142,063
2,743,708
4,396,085
0.032
  • *CO2 emissions are calculated including those for borrowed rental assets and excluding leased-out assets.
  • *For the coverage of each environmental index, please see here.

Environmental Impact of Our Data Centers

The environmental impact of data centers used by Z Holdings Group is as follows. The renewable energy ratio is increasing as a result of promotion of introduction of renewable energy, among other efforts. We will strive to further increase this renewable energy ratio.

Fiscal Year
Total Energy Consumption(GJ)
Renewable Energy Consumption(GJ)
Renewable Energy Ratio(%)
Average PUE
2016
1,596,428
98,383
6.5%
1.41
2017
1,720,504
117,361
7.0%
1.41
2018
1,832,520
134,149
7.9%
1.41
2019
1,889,622
203,733
10.8%
1.41
2020
2,026,953
229,387
11.3%
1.38
2021
3,399,153
1,312,059
38.6%
1.36
  • * With respect to Renewable Energy Consumption and Renewable Energy Ratio, only the electricity that Z Holdings Group companies directly purchases after it has specified the power sources is included in these figures. Renewable energy included in the electricity procured from electric power companies without specifying the power source is not included in these figures.
  • * For average PUE, the calculation method was reviewed and the figures updated with respect to the data centers owned by Yahoo! JAPAN. Past figures have been retroactively revised. (May 2021)

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," it carries 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," the Group takes measures based on an outlook that global warming will continue for the time being. In particular, it addresses increasingly intensifying disasters as a priority area, along with BCP. Going forward, the Z Holdings Group intends to engage in further measures such as shifting to 100% renewable energy.

Targets for "Mitigation" of Climate Change

Mid-Term Goals
FY2019
FY2020
FY2021
By FY2030, reduce CO2 emissions subject to the GHG Protocol Scopes 1 and 2 to net-zero(t-CO2
118,345
118,058
142,063
  • *Goal revised in March 2022, accompanying Z Holdings Corporation's announcement of "2030 Carbon Neutrality Declaration"

Initiatives Related to "Mitigation" of Climate Change

Efforts Toward Carbon Neutrality

In February 2022, the ZHD Group announced its "2030 Carbon Neutrality Declaration," a commitment to reduce greenhouse gas emissions (GHG emissions) from the business activities of the entire ZHD Group to net-zero by FY2030.
To achieve the goal by FY2030, first, more than 80% of the electricity used by major Group companies will be generated from renewable energy sources by around FY2025, and then the remaining electricity will be converted to 100% renewable energy sources over the following five years. In addition, to fulfill the "2030 Carbon Neutrality Declaration" by the entire ZHD Group, Yahoo! JAPAN will begin initiatives to become carbon negative*1 in the 2030s. Moreover, the ZHD Group plans to cooperate with the companies operating businesses together to reduce the indirect GHG emissions*2 emitted by the collaborating companies. For more information on the initiatives conducted by the Group companies, please refer to the links referred to below.
*1 GHG emissions subject to the GHG Protocol Scopes 1 and 2.
*2 GHG emissions subject to the GHG Protocol Scope 3.

Roadmap to Carbon Neutrality

・Introduction of Renewable Energy Plan
Started to introduce RE100-compliant effectively renewable energy to the Shirakawa Data Center. (May 2021)

・Electricity in the offices
In addition to reducing the use of electricity in its offices through its new work style (encouraging remote work), Yahoo! JAPAN purchases Green Power Certificates equivalent to the amount of electricity used in its main office buildings starting in FY2021, with the aim of achieving the goal of converting its office electricity use to renewable energy.

・Commitment to setting of science-based targets
Yahoo! JAPAN committed itself to setting science-based targets (SBTs), the greenhouse gas emissions reduction targets aligned with the Paris Agreement targets. (April 2021)

・Declaration of Renewable Energy Challenge
Yahoo! JAPAN declared its commitment to achieving the shift to 100% renewable energy by the end of fiscal year 2023. (January 2021)

・Yahoo! JAPAN Regional Carbon Neutrality Promotion Project
Under the Act on Promotion of Global Warming Countermeasures, local governments are now required to prepare action plans to address global warming. For example, the Tokyo metropolitan government has set a target of increasing the percentage of electricity generated from renewable energy sources to 30% by 2030, and an increasing number of local governments are planning and setting their own goals.
Yahoo! JAPAN, as part of its efforts to promote a low-carbon society and the shift to renewable energies in Japan, accepts applications from local governments for local development projects that promote carbon neutrality, and supports such initiatives by making donations through the enterprise hometown tax donation program*.

  • *Enterprise hometown tax donation program is a tax program in Japan that allows corporations to receive a tax credit for corporate-related taxes when they donate to the "Machi-Hito-Shigoto-Seisaku Donation Utilization Project," a regional development initiative conducted by local governments that have been approved by Japan's Cabinet Office for their regional revitalization plans.
Data Center Initiatives

Most of the servers necessary to operate Yahoo! JAPAN's Internet business are managed by its own facilities. In particular, at the Kitakyushu Data Center (Kitakyushu City, Fukuoka Prefecture) and the Shirakawa Data Center (Shirakawa City, Fukushima Prefecture), Yahoo! JAPAN implements measures to combat global warming using the latest technologies, including the installation of air conditioning systems that use outside air. Yahoo! JAPAN also works 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 nearly 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, the renewable energy ratio in Yahoo! JAPAN's facilities has increased even further.

Issuance of Green Bonds

With the aim of accelerating its carbon neutral initiatives, Z Holdings Corporation issued green bonds (JPY 20 billion) as a means of raising funds for projects that contribute to solving environmental issues. This is the first issuance of green bonds in the Internet sector. The funds procured form the issuance of this green bond will be allocated to expenditures for constructing, refurbishing, acquiring and operating energy-efficient data centers, as well as to the procurement of renewable energy-based electricity to be used at data centers.

Provision of Recycling Services

The Z Holdings Group is expanding and enhancing its recycling-oriented services that contribute to the realization of a sustainable society. For details, please visit the following web page.

Target for "Adaptation" to Climate Change

Target for "Adaptation" to Climate Change
FY2018
FY2019
FY2020
Conclude disaster alliance agreements with local municipalities to cover 90% of Japanese population by fiscal 2025
66.3%
84.5%
93.1%

Initiatives Related to "Adaptation" to Climate Change

The Z Holdings Group responds to the threat of natural disasters that are becoming more intense and frequent due to climate change, by working with local municipalities and related organizations and providing services that help prevent and mitigate disasters. The Group is also actively engaged in post-disaster reconstruction support. For details, please visit the following web page.

Realization of Sustainable Supply Chains

Initiatives to Realize Sustainable Supply Chains

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, the Group has provided a section titled "Environmental Conservation" in the Basic Policy on Procurement, based on which it procures goods and services with low
environmental impacts. It has also included "Consideration for the Environment" in its evaluation criteria for its business partners and suppliers, through which it assesses 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, the Z Holdings Group ensures that the division enters into a business agreement that stipulates compliance with the Basic Policy on Procurement with its clients before carrying out business.
The Z Holdings Group practices sustainable procurement by increasing the proportion of office supplies, etc. procured in a sustainable manner.
It is also making efforts to achieve a shift to 100% renewable energy for electricity used at its data centers.

Communications with Environmental NGOs

In 2019, the Z Holdings Group received an engagement from an environmental NGO, Rainforest Action Network, on the possible risk of procuring paper from a manufacturer that does not meet the procurement standard of paying due consideration to sustainability. As a result of investigations, it was found that the Group had an indirect transaction with the applicable manufacturer, thus it changed its 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.

Third-Party Verification

Third-Party Verification of Greenhouse Gas Emissions and Energy Consumption Volumes

In order to ensure high reliability of its reported environmental data, Yahoo! JAPAN,  ASKUL Corporation, LINE Corporation, ZOZO, Inc., along with its parent company SoftBank Corp., underwent third-party verifications that are compliant with ISO14064-3 and ISAE3000, for objective evaluation of its environmental data.
The scope of this verification assignment is as indicated in ANNEX.
For fiscal 2021, the verification was conducted with respect to greenhouse gas emissions and energy consumption volumes under Scopes 1, 2, and 3 and greenhouse gas emissions, water consumption and industrial waste disposal. As a result, there was no item that was found to be "non-compliant with the calculation rules and not accurately calculated."
Going forward, Z Holdings Group will expand the scope of activities and organizations to be covered by verification.

Independent Verification Report
Independent Verification Report ANNEX

Coverage

Coverage of Environmental Index

The table below shows the coverage of each environmental index reported on this page (derived by summing the consolidated revenue ratio of the Group's consolidated subsidiaries for which the Group was able to compile data). For more details on these environmental indexes (breakdowns of Scope 1 and Scope 2, green purchasing ratio, etc.), please refer to the related link.

Environmental index
Coverage
Investment in biodiversity protection
97.6%
Paper
97.6%
Electricity
96.3%
Total energy
96.3%
Renewable energy consumption & ratio
96.3%
Water, water discharge
96.3%
CO2(Scope 1 & 2)
95.5%
Waste & Recycling rate
94.1%
Automotive gasoline
91.8%
Gas
81.3%
Light oil for diesel engine vehicles
78.3%
Heavy oil for emergency generators
78.3%
Kerosene for boilers
78.3%
PUE
78.3%
CO2(Scope 3)
69.3%