Climate Change
Rakuten strives to leave a better environment for generations to come by leading the fight against climate change.
The Rakuten Group recognizes climate change as one of the most pressing issues facing society today.
Changing weather patterns and the increased risk of extreme weather events affect global citizens as well as our operations. To fulfill our responsibility as a global company and align with our corporate mission, we strive to contribute to the realization of a decarbonized society.
To do so, we assess and disclose our greenhouse gas emissions with the aim of reducing them throughout our value chains by improving energy efficiency, adopting clean energy solutions, and helping our customers reduce their own emissions using our products and services.
Please see our Group Environmental Policy for the full text.
TCFD Index
Thematic Area | Recommendation | Links |
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Governance | Disclose the organization’s governance around climate-related risks and opportunities. | Governance |
Strategy | Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material. | Strategy |
Risk Management | Disclose how the organization identifies, assesses, and manages climate-related risks. | Risk Management |
Metrics and Targets | Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. | Metrics and Targets |
Governance
Implementing climate change measures across Rakuten's ecosystem requires a strong, centralized management structure. This is why in January 2022, we established the Environmental Management Promotion Department for developing and implementing strategies to address environmental issues. Moreover, we have organized implementation systems and reporting lines across the Group. Under the Sustainability Committee, the Environmental Subcommittee holds quarterly meetings.
Climate change-related issues are managed by the COO. The Environmental Management Promotion Department and the Environment Subcommittee work closely with relevant teams, organizations, and international initiatives while holding every business unit and department accountable for their environmental impacts.
In each business department, we appoint a person in charge of environmental issues to coordinate with the Environmental Management Promotion Department on a wide range of environment-related activities, including strategy formulation, implementation and risk management.
Group-wide implementation systems and reporting lines are structured so as to escalate information to the Sustainability Committee, which further analyses any crucial decisions and reports directly to the Board of Directors.
Strategy
We conducted a scenario analysis to identify climate-related transition risks (risks related to the transition to a decarbonized society), physical risks (risks related to the physical impacts of climate change), and opportunities for the entire Rakuten Group.
Set Scenarios and References
Scenario | Reference |
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Scenario in which a decarbonized society is realized quickly (1.5 degrees Celsius scenario) |
Net Zero Emissions by 2050 Scenario (NZE) by International Energy Agency (IEA) |
Scenario in which physical impacts become apparent (4 degrees Celsius scenario) |
Representative Concentration Pathways (RCP8.5) in the 5th Assessment Report released by the Intergovernmental Panel on Climate Change (IPCC) |
Identified Risks/Opportunities and Responses/Initiatives
1.5 degrees Celsius Scenario | |||||
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Category | Type | Main Risk / Opportunity | Time Horizon | Impact | Response / Initiative |
Transition Risk | Policy & Legal | Increased reporting obligations for environmental metrics | Short - Long | Small | ・Improvement of internal structures for environmental data collection |
Introduction of carbon pricing mechanisms (such as carbon tax) | Mid - Long | Small | ・Reinforcement of GHG reduction initiatives through energy efficiency improvement/renewable energy adoption | ||
Market | Loss of revenue opportunities due to delayed development and delivery of decarbonized products/services | Mid - Long | Small | ・Enhanced development of environmentally conscious services ・Promotion of campaigns for raising environmental awareness |
|
Reputation | Reduced revenue or degraded reputation due to insufficient climate change countermeasures | Mid - Long | Small | ・Active ESG-related information disclosure ・Reinforcement of GHG reduction initiatives |
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Opportunity | Resource Efficiency |
Increased introduction of new technology for climate change response | Short - Long | Large | ・Reinforcement of initiatives to optimize resource distribution utilizing artificial intelligence (AI) |
Energy Source | Increased use of renewable energy in response to rising carbon prices | Short - Long | Medium | ・Promotion of renewable energy adoption through participation in RE100 | |
Products/ Services |
Increased environmentally conscious customer behavior due to increased interest in environmental issues | Short - Long | Medium | ・Improvement of brand image through promotion of GHG reduction initiatives ・Improvement of external information disclosure |
|
Market | Increased use of public-sector incentives | Short - Long | Medium | ・Improvement of reputation through participation in public-sector projects |
4 degrees Celsius Scenario | |||||
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Category | Type | Main Risk | Time Horizon | Impact | Response / Initiative |
Physical Risk | Acute | Increased business damage due to extreme weather events (such as droughts, floods, typhoons, and hurricanes) |
Short - Long | Medium | ・Improvement of BCP (Business Continuity Plan) ・Improvement of disaster countermeasures |
Chronic | Increased electricity costs for data center equipment cooling due to rising temperatures | Mid - Long | Small | ・Promotion of energy efficiency improvement initiatives at data centers ・Promotion of research and development for energy efficiency improvement |
Definitions of Time Horizon / Impact
【Time Horizon】 | |
---|---|
Label | Description |
Short-term | Next 3 years |
Mid-term | -2030 |
Long-term | 2030- |
【Impact(Risk)】 | |
---|---|
Label | Description |
Small | Little impact |
Medium | Services and/or operations are delayed |
Large | Services and/or operations are disrupted |
【Impact(Opportunity)】 | |
---|---|
Label | Description |
Small | Little impact |
Medium | Some services and/or operations are impacted |
Large | Entire group is impacted |
Risk Management
Climate-related risks are identified, assessed, and managed as part of Enterprise Risk Management (ERM), Rakuten Group’s risk management framework, by the Environmental Management Promotion Department.
For more details on Rakuten’s ERM, visit the Risk Management page.
Metrics and Targets
To manage the risks and opportunities posed by climate change to our company, we are pro-actively managing environmental impact data, including greenhouse gas Scope 1 emissions (direct greenhouse gas (GHG) emissions from the company itself), Scope 2 emissions (indirect emissions accompanying the use of heat, steam, and electricity supplied by other companies), and Scope 3 emissions (indirect emissions other than Scope 1 and Scope 2).
Data for each metric is updated in the ESG Databook around June every year.
As a step towards realizing a decarbonized society, the Rakuten Group achieved carbon neutrality, or net-zero*1 greenhouse gas emissions*2, from all Group business operations, including consolidated subsidiaries, in 2023.
For 2024 onwards, we have submitted our short-term greenhouse gas reduction target to the Science Based Targets Initiative (SBTi) for approval.
Please see our press release for more information.
*1 We promoted energy efficiency and renewable energy adoption groupwide for reducing greenhouse gas emissions and offset remaining emissions by using carbon credits and investing in reduction activities
*2 Total of Scope 1 emissions (direct greenhouse gas (GHG) emissions from the company itself) and Scope 2 emissions (indirect emissions accompanying the use of heat, steam, and electricity supplied by other companies), with third-party verification obtained and estimated in accordance with the GHG Protocol, the international standard for estimating and reporting GHG emissions volume
Rakuten’s Efforts
In Our Own Operations
Over 98% of Rakuten's energy usage is electricity, 95% of which is consumed in our mobile network, data centers and offices.
Improving the efficiency of our facilities' electricity usage and managing the sources of the electricity we use are the necessary first steps towards greener operations and minimizing our environmental impact. We promote various measures across the Group by raising our employees’ environmental awareness through e-learning courses and Asakai (weekly all-hands morning meetings).
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Mobile Network
Rakuten Mobile and Rakuten Symphony demonstrated energy savings of up to 25% in 4G and 5G Open RAN test environments, utilizing RAN Intelligent Controller (RIC) that manages and controls RAN using AI.
This enables flexible configurations adjusted to network traffic patterns, leading to enhanced Open RAN performance and more efficient, energy-saving network operations.* Depends on traffic patterns and RIC application scope
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Data Centers
At our domestic data centers, we cool down our servers efficiently by filling in the gap between the server racks with blanking panels and separating the hot air zones from the cold air zones. Without the panels, the hot air emitted from the servers can recirculate back to the server racks, making the fans work more to compensate for the increased temperature. This results in a negative loop of inefficient cooling, leading to higher energy consumption. By adding blanking panels and separating the air, we can ensure that the hot and cold air does not mix, raising the overall temperature. Blanking panels are one of the fundamental ways to ensure good airflow in our server rooms.
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Offices
Some Rakuten offices are housed in green buildings. Our Japan headquarters, Rakuten Crimson House, is situated in the Futakotamagawa Rise complex, one of Japan's few LEED-Gold-certified* commercial facilities.
We turn off monitors, lights, and electronic in-office appliances during non-working hours to conserve energy and avoid standby power. One of Rakuten Card's offices in Fukuoka prefecture introduced a rule for in-office temperature settings. We believe that even small steps are essential for progress toward a brighter future.* "Leadership in Energy and Environmental Design" - A framework established by the non-profit U.S. Green Building Council, providing ratings for the world's greenest buildings.
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Sports Facilities
We are promoting the use of LEDs to improve lighting energy efficiency at sports stadiums. Approximately 5,800 lights used for home games, events, and daily operations at Vissel Kobe’s Noevir Stadium, including the pitch lighting, various rooms, corridors, and concourses, have been converted to LEDs.
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On-site Power Generation
At Rakuten Crimson House West, our branch office in California, we have installed rooftop solar panels with a total capacity of 92.4kW that have continuously provided part of the office's electricity needs since mid-2020.
The Rakuten Fulfillment Center Matsudo in Japan has over 4,300 solar panels installed, making it the first Rakuten Group warehouse with solar panels.
Overall Value Chain
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Engaging Users
Creating a greener future requires community efforts that go beyond Scope 1 and Scope 2. Companies must provide environmentally responsible options and encourage consumers to choose those in their daily lives.
In 2022, Rakuten launched the "Go Green Together" project, aiming to realize a sustainable society by providing users with more environmentally responsible lifestyle choices through the various Group services. The "Go Green Together" website provides practical tips and content for tackling climate change and other environmental problems.
In May 2024, we also launched the “Rakuten Green Empowerment” website in Japanese, which introduces users to how they can reduce their environmental impact by using Rakuten services. -
Product Delivery Options
The "last-mile" journey is a critical step in the package delivery process, as e-commerce has become a primary means of shopping in consumers' daily lives. Product re-deliveries carry significant environmental costs as they result in increased carbon emissions compared to when the delivery is completed on the first attempt. In Japan, re-deliveries are estimated to generate additional CO2 emissions of approximately 254,000 tons* per year. Rakuten is working with couriers and customers to improve delivery efficiency. For example, Rakuten Ichiba offers customers several alternative delivery options; customers can pick up their packages at the closest convenience store, post office, or HAKO POST locker. Customers can also select their preferred delivery date and time to ensure they are home to receive their packages.
* Data from the Ministry of Land, Infrastructure, Transport and Tourism.
Partnerships & Initiatives
Rakuten participates in both domestic and international partnerships and initiatives to collaborate with stakeholders on achieving the goals of the Paris Agreement and tackling climate change.
The Environmental Management Promotion Department regularly reviews and monitors Rakuten’s participation in these partnerships and initiatives to ensure that they are consistent with our environmental policy/initiatives and the Paris Agreement. The alignment assessment result is reported in accordance with the management system. In case of misalignment, we will further investigate to consider whether we should remain in or withdraw from the organization.
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RE100
Rakuten Group, Inc. joined the international initiative RE100 in December 2019. We committed to switching to 100% renewably sourced electricity through the initiative for all Rakuten Group, Inc. business operations. In FY2023, we successfully achieved adopting 100% renewable electricity for all Group operations.
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TCFD
We officially supported the Task Force on Climate-related Financial Disclosures (TCFD) in December 2019 to adopt TCFD's recommendations in our risk mitigation strategies. We consider a range of scenarios and map out the risks across our businesses.
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Japan Climate Initiative
The Japan Climate Initiative (JCI) is a network of Japanese private organizations actively engaged in climate action. We joined JCI in December 2019, pledging to stand at the forefront of society’s decarbonization as envisioned in the Paris Agreement.
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CDP
CDP is widely recognized as the global standard for climate-related information disclosure, with over 23,000 respondents worldwide. We have been responding to the CDP Climate Change survey since 2017.
See our response to CDP. -
JANE: Carbon Neutral Working Group
Ever since the foundation by Rakuten’s CEO, the company has been an active member of the carbon-neutral working group of JANE, the Japan Association of New Economy (JANE).
JANE is a trade association, and its working group provides opportunities for dialogue and information-sharing among JANE's member companies. Rakuten holds regular study sessions and makes policy proposals incorporating other member companies' voices. -
Decokatsu
“Decokatsu” is a “National Movement for New and Prosperous Lifestyles toward Decarbonization” led by the Ministry of the Environment to realize 2030 emission reduction targets and carbon neutrality in 2050. Rakuten made its “decokatsu declaration” in August 2023. As a “Positive Action Initiative”, Rakuten is working on the level design of environmental actions, creating standards for CO2 reduction impacts, and visualization of environmental actions and CO2 reductions for individual consumers and the nation as a whole.