The Group adopts its Scope 1 and 2 greenhouse gas emissions from its business activities as an indicator to operate its business with environmental considerations.
We have set a medium-term target of reducing emissions per unit of net sales by 46% from the FY2021 level in FY2030. We are also striving to meet a long-term target of achieving carbon neutrality in FY2050 with reference to the targets under the Paris Agreement.
It is anticipated that business growth and the launch of new businesses will increase greenhouse gas emissions in the future. We will consider introducing renewable energy and using non-fossil certificates to accelerate the decarbonization of operations to fulfill the long-term target.
We understand that it is a significant issue to reduce Scope 3 emissions, which refer to indirect emissions from other companies. We will swiftly understand the Group’s actual emissions, study reduction approaches and set a reduction target.
Our Scope 1 emissions in FY2022 increased slightly from the previous fiscal year. With respect to Scope 2 emissions, we shifted to procuring electric power derived from renewable energy for part of our fixed assets. Meanwhile, emissions grew from the FY2021 level following the opening of six sales offices in September 2021 and later and an increase in fixed assets. As a result, Scope 1 and 2 emissions stand at 236.4 tons-CO2, up 43.7 tons-CO2 from FY2021.
Scope 1 emissions per unit of net sales in FY2022 surged 12.3% from the previous fiscal year due to net sales shrinkage. Scope 2 emissions per unit of net sales rose 36.6%. Scope 1 and 2 emissions per unit of net sales increased 33.4%.
We will consider ways of reducing emissions in FY2023 and endeavor to attain the sales target in a bid to lower emissions per unit of net sales.