Environmental Impact Reduction Plan

●CO2 emissions

CO2 emissions are calculated by multiplying the amount of energy consumption associated with each business activity by emission factors specific to each energy source. The energy consumption within the Group, categorized by scope, shows that 1,979,000 GJ (45%) relates to Scope 1, which is derived from diesel, city gas, and other fossil fuels, while 2,373,000 GJ (55%) relates to Scope 2, stemming from electricity and heat supply. Since electricity usage accounts for more than half of the total energy consumption, the emission factor of the electric utility significantly impacts overall CO2 emissions. Therefore, we will also provide additional context on energy consumption trends.

From FY2014 to FY2018, despite business expansion (increased sales, hotel openings, store business growth), energy consumption remained reduced compared to FY2013, thanks to energy-saving initiatives (capital investments such as LED installation and equipment upgrades). In FY2019, energy consumption further decreased compared to the previous year, influenced by the closure and demolition of the Fukuoka building following our head office relocation.
From FY2020 to FY2022, the impact of the COVID-19 pandemic was substantial. FY2020 saw a significant reduction in energy consumption compared to the previous year due to reduced bus and rail operations, the temporary closure and shortened hours of commercial facilities, and a decline in hotel occupancy rates. In FY2021, there were signs of a gradual recovery from the pandemic, resulting in a slight increase in energy consumption. By FY2022, further recovery from the pandemic and the opening of new hotels led to an increase in energy usage. However, thanks to continued energy-saving measures, the overall increase compared to the previous year remained minimal.
In FY2023, despite increased diesel consumption in the bus division (such as highway and sightseeing buses) due to rising inbound demand and higher electricity usage from improved hotel occupancy rates, we achieved an approximate 8% reduction in energy consumption compared to the previous year by promoting energy-saving initiatives and introducing renewable energy electricity.
Moving forward, in addition to further promoting energy-saving efforts and transitioning away from fossil fuels, we will strive to reduce CO2 emissions by decreasing overall energy consumption and increasing the proportion of electricity sourced from renewable energy, thereby mitigating the impact of emission factors.

As of FY2023, CO2 emissions have been reduced by approximately 30% compared to the base year of FY2013.

●CO2 emissions and the electric power company's emission factor
The Group's CO2 emissions primarily come from electricity consumption, which fluctuates based on the emission factor of the electric power company. (See the graph “CO2 Emissions and the Electric Power Company's Emission Factor.”)

The Group has established reduction targets for the energy consumption required for business operations, the resulting CO2 emissions, and the usage of copy paper and water. These targets guide us toward more effective initiatives. The results by business category for this fiscal year are as follows: *1

*1 Scope of coverage: Domestic business sites managed by Nishi-Nippon Railroad and Nishitetsu group companies
*2 Energy consumption and CO2 emissions are calculated in accordance with the Act on the Rational Use of Energy and the Global Warming Countermeasures Act
*3 Scope 1: Direct emissions from fuel use by businesses themselves
*4 Scope 2: Indirect emissions from the use of electricity, heat, and steam supplied by other companies
*5 The CO2 emission conversion factor for electric power uses Kyushu Electric Power's modified emission factor (0.475t-CO2/thousand kWh)
*6 The CO2 emission conversion factor for heat supply emissions uses Fukuoka Energy Service Co. Inc.'s modified emission factor for the Nishitetsu Fukuoka Station redevelopment area (0.0398 t-CO2/GJ)
*7 Copy paper usage is aggregated based on purchases (without distinction by size

Our group has established target values for each department. We are disclosing the 2023 performance results for CO2 emissions (absolute volume, individual intensity), copy paper usage, and water consumption against these targets.