Decarbonized Society
Creating a Decarbonized Society
The Obayashi Group has formulated the Environmental Policy and been implementing initiatives throughout the supply chain to realize a decarbonized, recycling-oriented society that has respect for the natural world. For the realization of a decarbonized society, we set targets for the reduction of greenhouse gas emissions and implement specific initiatives across our businesses, such as reducing the consumption of fuel and electricity and utilizing low-carbon materials through business activities.
Greenhouse Gas Emission Reduction Targets
The Environmental Policy sets out efforts to reduce environmental impact through the Group's entire business activities for the realization of a decarbonized society.
- *1 Science Based Targets (SBT)
These are greenhouse gas emission reduction targets set by companies for 5 to 15 years in the future that are consistent with the level sought by the Paris Agreement (aiming to keep the global rise in temperature to well-below 2℃ compared to before the Industrial Revolution, with aims to further constrain this warming to 1.5℃). - *2 Scope1: Direct greenhouse gas emissions by the business operator itself
Scope2: Indirect greenhouse gas emissions accompanying the use of electricity, heat and steam supplied by other companies
Scope3: Indirect greenhouse gas emissions other than Scope1 and 2 (emissions by other companies related to the activities of the businessoperator).The Group's target cover Category1 and 11
Analysis of Current Situation and Issues
Scope1, 2
- We have not been able to reduce Scope1 emissions because effective CO2 reduction measures for use of fuel by construction machinery have not been in the practical stage. Instead, we have antecedently been working to reduce Scope2 emissions through the use of renewable energy and non-fossil certificates.
Scope3
- While the Obayashi Group is building a steady track record in environmentally friendly construction, including ZEB, the Group does not have full control over the volume of orders received for design and build projects or the environmental performance of buildings, so emissions tend to increase in fiscal years with a large number of completed projects.
Future Emissions Reduction Policy
We have developed a roadmap for execution of CO2 emission reduction measures to ensure steady execution of our decarbonization efforts. We are promoting CO2 emission reductions based on this roadmap and will revise the roadmap as necessary according to the execution status and social situation.
Reductions in Scope1 and Scope2 Emissions
- *3 Preliminary result before third-party verification
- The Group will first continue to work on reducing Scope2 emissions through FY2025, while also establishing usage methods and other matters for electric construction machinery and diesel fuel alternatives. From FY2026 the Group will make the necessary investments and promote full-scale initiatives.
- Regarding the reduction of Scope1 emissions, the Group will maximize the use of diesel fuel alternatives such as GTL(*4) biodiesel, and renewable diesel(*5) while considering maintenance performance, cost, and supply volumes.
- The use of electric construction machinery presents issues from a cost and supply perspective. However, the Group intends to introduce electric construction machinery following demonstration experiments and other activities to verify the benefits.
- *4 GTL
Gas to liquid fuels are diesel fuel alternatives produced from natural gas that are cleaner and cause less environmental impact in CO2 emissions can be achieved by replacing diesel fuel with GTL, while maintaining properties equivalent to those of petroleum products. - *5 renewable diesel
Next-generation biofuels that are produced using a hydro-refining process from raw materials such as waste cooking oil and vegetable oils that do not compete with food supply. Renewable diesel can reduce greenhouse gas emissions by 90% compared derived diesel on a lifecycle assessment basis and can be used as is in vehicles and heavy machinery that run on diesel.
Scope3
- *6 Preliminary result before third-party verification
- Obayashi aims to use 50,000m³ of Clean-Crete® and 100,000 t of electric furnace steel beams per year. We will expand the use of these low-carbon materials at construction sites through the introduction of internal carbon pricing, and continue to promote the construction of ZEB and other environmentally friendly construction methods.
Scope1 Reduction Measures
Introduce Diesel Oil Alternative Fuels
- Most of the CO2 emitted through our business activities is generated from the combustion of the diesel oil we use in construction machinery at construction sites. We will aim to reduce our CO2 emissions by utilizing diesel oil alternative fuels (GTL, biodiesell, renewable diesel, etc.) that can reduce our CO2 emissions.
We will also continue to work with a view to hydrogen fuel in the future.
Introduce ICT Labor-saving Construction and Hybrid and Electric Construction Machinery (Scope1)
- We will expand the use of labor-saving construction methods utilizing ICT and promote the use of hybrid or electric construction machines such as large-size electric backhoe and electric dump truck, according with manufacturer's market launch plan to reduce the fuel consumption.
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Charging by a generater for B100
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Battery-powered hydraulic excavator
Scope2 Reduction Measures
Convert to Renewable Energy (Scope2)
- We will also sequentially switch to renewable energy for electricity used at our construction sites, office buildings and real estate properties for lease, aiming at Scope2 decarbonization of the Group by 2030.
Targets for renewable energy electricity usage ratio
| FY2025.3 | FY2027.3 | FY2031.3 | |
|---|---|---|---|
| Non-consolidated | 100% | 100% | 100% |
| Domestic subsidiaries | |||
| Overseas |
Scope3 Reduction Measures (Category1 Purchased goods/services)
Utilize Low-carbon Materials (Promote wooden structures and interiors and Other Initiatives) (Scope3)
- We are developing and practically using low-carbon materials in collaboration with our supply chains. Clean-Crete, our low carbon concrete released in 2010, can reduce CO2 emissions by up to 80%. The cumulative amount of the material used has reached 420,000m³ as of end of FY2023. In FY2022 we also developed other low carbon materials such as Clean-Crete N® that utilizes industrial byproducts to achieve carbon negative, and LigninCrete that contains wood biomass to fix CO2 over a long period of time. Looking ahead, we intend to further expand the use of such materials at our construction sites and continue to advance technological development and application.
In addition, we will reduce CO2 emissions associated with materials manufacturing and construction by promoting the wooden structures and interiors for large buildings, electric furnace iron frames, and use of reused materials.
| Targets | |
|---|---|
| Clean-Crete | 50,000m³/year |
| Electric furnace steel | 100,000t/year |
Open Lab 3 (formerly the Electromagnetic Engineering Laboratory) reduces CO2 emissions by reusing structural components
Using Internal Carbon Pricing
- To promote use of low carbon materials such as Clean-Crete, electric furnace iron frame, as well as wooden buildings, we have introduced internal carbon pricing (ICP). ICP unit price is set at 10,000yen/t-CO2 considering market unit price forecast by an external organization and with reference to the unit price reflecting the CO2 reduction effect of low-carbon materials. However, it will be revised accordingly in line with changes in market unit prices.
Scope3 Reduction Measures (Category11 Use of sold products)
Promote and Expand ZEB/ZEH-M
- We are also working to reduce the CO2 emitted during the operation of the buildings we deliver to our customers in addition to reducing the CO2 emitted from our business activities. We propose the optimal ZEB/ZEH-M(*7) to our customers with the latest energy-saving technologies and expertise according to the purposes and characteristics of the building.
- *7 ZEB/ZEH-M (Net Zero Energy Building/House-Mansion)
A building or a house that consumes zero net primary energy while still providing a comfortable indoor environment
ZEB Targes
| Targets | |
|---|---|
| Raise the share of ZEB in newly awarded design and consulting business to 50% or more (*8) |
50% or more (FY2025) |
| Ratio of ZEB proposals (design and build projects)(*9) | 100% (FY2024) |
| Number of ZEB certification (design and build projects) (*9) | 5 (FY2024)(*10) |
- *8 Goals as a ZEB Planner
- *9 ZEB、Nearly ZEB、ZEB Ready、ZEB oriented
- *10 ESG Data Book（ Designed & Constructed Buildings (Non-consolidated)
TCFD Disclosure
In July 2020 we declared our support for the Task Force on Climate-related Financial Disclosures (TCFD). We conducted scenario analysis to identify and assess climate-related risks and opportunities and understand the medium- to long-term impacts that climate problems may have on our business, and then in November 2020, in light of our analysis results, we disclosed climate-related information based on the TCFD recommendations. We updated our disclosures in April 2024 in response to needs in society, including the issuance of "IFRS Sustainability Disclosure Standards" developed by the International Sustainability Standards Board (ISSB).
Promote Technological Development That Contributes to Decarbonization (Scope1,2,3)
We will collaborate with those in other industries to promote technological development that contributes to carbon neutrality including the use of hydrogen in addition to the development of new energy-saving construction methods and low-fuel consumption and electric construction machinery technology.
- OBAYASHI WOOD VISION (Available only in Japanese)
- Port Plus (Available only in Japanese)
- LOOP50 (Available only in Japanese)
- Started introducing GX construction machinery in construction projects (April 25,2024)
