Environment
Rakuten and the environment are inextricably connected. From the variety of products sold on Rakuten Ichiba to the travel destinations promoted on Rakuten Travel, the continuity and quality of our services and products depend largely on the richness of our natural environment. On the other hand, the operations and infrastructures that support the provision of our services can have a considerable environmental impact. That is why Rakuten is committed not only to reducing our adverse effects on the environment, but also to leveraging our technologies and innovation to create more environment-friendly options for our customers.
Climate Change
We recognize 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. In order to fulfill our responsibility as a global company and align with our corporate mission, we strive to contribute to the realization of a carbon-neutral 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 through the use of our products and services.
Targets
| Overview | Scope of activity | Target year | Progress (as of 2021) |
|---|---|---|---|
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NEW: Announced Sep 9, 2022 |
Rakuten Group |
2023 |
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Switch electricity used by all business activities to 100% renewable energy sources. |
Rakuten Group |
2023 |
Rakuten Group: 20.6％ |
- *1 Targeting a reduction in emissions of greenhouse gases from our business activities to zero in real terms. (Scope 1 & 2)
- *2 100% renewable energy in real terms through the use of "FIT Non-Fossil Certificates", a certification of renewable electricity designation.
Achieving Carbon Neutrality
| Approach | Overview | |
|---|---|---|
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Improving energy efficiency |
We will reduce our use of fossil fuels and improve efficiency of electricity use in our mobile network, data centers, offices and other locations |
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Switching to renewable electricity from renewable sources |
Through a combination of on-site electricity generation, long-term power purchase agreements, and renewable energy contracts and certificates, we will build a 100% renewable energy portfolio |
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Procuring carbon credits |
For fossil fuel-derived energy requirements that will be difficult to replace in the near future, we will leverage carbon credits to offset our CO2 emissions |
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Improving Energy Efficiency
We are selecting buildings with high environmental functionality for some Rakuten offices, with several locations even receiving LEED certifications*, an international program which recognizes environmental credentials. The Rakuten Group's headquarters Rakuten Crimson House is part of Futakotamagawa Rise, a multipurpose development which has also received a gold certification from the same organization.
* "Leadership in Energy and Environmental Design" – a certification program from the U.S. Green Building Council that promotes green development and proliferation.
Switching to Renewable Electricity from Renewable Sources
As an internet services provider, over 90% of Rakuten’s impact on climate change originates from electricity consumed at mobile network, data centers and offices. Managing the sources of electricity that we use is key to controlling this negative environmental impact.
As part of our commitment to combating climate change, Rakuten Group, Inc. joined the international RE100*1 initiative in 2019.
In 2021, Rakuten Group, Inc.'s ratio of electricity derived from renewable energy reached 100%*2, and 20.6% for all Group companies including consolidated subsidiaries. In 2022, Rakuten Group companies Rakuten Baseball, Inc. and Rakuten Vissel Kobe, Inc. completed the switch to 100% renewable electricity for all stadium business activities. With the goal of ensuring a high level of quality as we make the switch to renewable energy, the Rakuten Group has established a quality standard called Real Renewables*3. Starting with Rakuten-owned facilities and facilities for which we have control over electricity contracts, we are looking to implement our Real Renewables standard for all electricity used for our business activities.
- Case study: On-site power generation
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At Rakuten Crimson House West in San Mateo, California, we have installed rooftop solar panels with a total capacity of 92.4kW, providing part of the office's electricity needs since mid-2020.
- Case study: Renewable electricity contracts
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Facilities run by Rakuten Baseball, Inc. (Rakuten Seimei Park Miyagi, Wellfam Foods Shinrindori Stadium Izumi, and Izumi-Osawa Dormitory) use electricity from renewable sources (hydroelectricity) provided by Tohoku Electric Power in Aomori, Iwate, Akita, Miyagi, Yamagata and Fukushima Prefectures.
Yakuwa Power Plant (Photo by courtesy of Tohoku Electric Power Co., Inc.)
- Case study: Procuring renewable energy certificates
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With the goal of providing customers with a sustainable accommodation experience, Rakuten STAY worked with Rakuten's electricity wholesale service Rakuten Energy to switch to 100% renewable energy in real terms for operations at all accommodation facilities in Japan since 2021.
- *1 An international initiative, RE100 stands for “Renewable Electricity 100%.” It brings together the world’s most influential businesses who are committed to utilizing 100% renewable power by 2050 at the latest.
- *2 100% renewable energy in real terms through the use of "FIT Non-Fossil Certificates", a certification of renewable electricity designation.
- *3 As of September 2022. Indicates the direct use of renewable energy, not a combination of regular generation methods and credits.
Reducing Value Chain Emissions
At Rakuten, we are aiming to reduce greenhouse gas emissions up and down our supply chain. As we join our customers and business partners in search of new opportunities to realize a carbon-free society, we will continue promoting climate change initiatives at a society-wide level.
Product Deliveries
As e-commerce has become a primary means of shopping in consumers’ daily lives, significant environmental issues have emerged from an increase of product re-deliveries. Re-deliveries are estimated to account for 20% of all home deliveries in Japan and generate additional CO2 emissions of approximately 420,000 tons per year.
To address this issue, Rakuten is working together with delivery service companies and our customers to improve delivery efficiency. Rakuten Ichiba offers several alternative delivery options to customers: They can choose to pick up their orders at the closest convenience store, post office, or “HAKO POST” locker installed in post offices and other locations. Customers can also select their preferred delivery date and time to ensure that they are at home to receive their packages.
Reducing Our Partners' Emissions
Rakuten Energy has been adding low-cost and optimized electricity solutions to the Rakuten Ecosystem since its launch in 2012. “REco,” a portfolio of power supply options derived from renewable energy for corporate customers launched in March 2020, ensures that the power supplied to the customers’ facilities is essentially renewable, contributing to the reduction of their CO2 emissions by adding environmental values such as Non-Fossil Fuel Energy Certificates to the electricity it provides. By providing sustainable options such as REco, Rakuten Energy will continue supporting customers, including Rakuten Ichiba merchants and hotels from Rakuten Travel, to realize business operations with 100% renewable energy. For more details, click here (page in Japanese).
Aligning with Global Frameworks
TCFD
To constantly improve our reporting related to climate change in line with stakeholders’ expectations, Rakuten officially became a supporter of the international initiative TCFD (Task Force on Climate-related Financial Disclosure) in December 2019.
TCFD was established by the Financial Stability Board (FSB) in response to a call to action from leaders of countries participating in the 2015 G20 meetings.
Rakuten strives to implement its recommendations, which cover the following topics:
- Rakuten’s governance around climate-related risks and opportunities
- Actual and potential impact of climate-related risks and opportunities on Rakuten’s businesses, strategy and financial planning
- How Rakuten identifies, assesses and manages climate-related risks
- Metrics and targets used to assess and manage relevant climate-related risks and opportunities
CDP
Since 2017, Rakuten has been responding to the CDP Climate Change survey, widely recognized as the global standard for climate-related information disclosure by businesses, based on requests from global institutional investors and major purchasers keenly concerned with environmental issues.
More than 13,000 companies representing over 64% of global market capitalization answered the 2021 CDP survey. Rakuten's performance on CO2 reduction, governance, and business strategy and financial planning, was among other themes positively recognized by CDP's independent scoring methodology. As a result, Rakuten was given the rating of A- in the 2021 survey.
By implementing TCFD's recommendations and responding to the CDP survey, we strive to improve the quality and consistency of our climate-related disclosure.
Participating in Initiatives
- RE100
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In December 2019, Rakuten Group, Inc. joined the international initiative RE100, which stands for “Renewable Electricity 100%.” This initiative brings together the world’s most influential businesses who are committed to utilizing 100% renewable power by 2050 at the latest.
- Japan Climate Initiative
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The Japan Climate Initiative (JCI) is a network of non-state actors (companies, local governments and NGOs) in Japan which are actively engaged in climate action and committed to strengthening communication and exchanging related strategies and solutions.
Rakuten joined JCI in December 2019, pledging to stand at the forefront of society’s decarbonization as envisioned in the Paris Agreement. In support of JCI, Rakuten believes that Japan can and should play a greater role in realizing a decarbonized society primarily through the expansion of renewable energies.
Natural Resources
We are committed to reducing the adverse environmental effects caused by our business activities, such as waste generation, consumption of natural resources — including water — and emission of all forms of pollution throughout the value chain — such as during the production of goods and services, the use of packaging materials, and the delivery of orders.
Reduce
Environmentally friendly packaging
For our delivery packaging in Japan, we aim to use the most minimal package size, according to the dimensions of the product contained within, to minimize the use of materials
For shipping boxes, we procure and use cardboard boxes made from 90 to 95% recycled paper. In addition, inflatable air pillows are used as cushioning solutions to protect certain products when they’re delivered — an environmentally friendly alternative to other packing materials.
For Rakuten-branded products, including mobile devices, we are working on ways to reduce resource consumption by reviewing individual packaging boxes, bundled items, as well as Rakuten Mobile store interiors and sales materials.
Reuse
Promoting second-hand marketplaces
Rakuten has been promoting second-hand items across its various e-commerce platforms to respond to the needs of a growing number of customers who are looking for more environmentally friendly purchasing choices. Second-hand and refurbished items reduce the generation of waste and eliminate the need to extract the additional resources required when manufacturing new products.
In Japan, the C2C (customer to customer) second-hand marketplace app Rakuma is collaborating with various companies and influencers in the fashion industry to promote “Circular Fashion.” For example, in 2020, it launched an online store called “Circulable Supply” in collaboration with Baycrew's Co., Ltd, for the employees of this leading Japanese fashion company to sell their used items.
With two out of three products — 50 million products in total — sold on its e-commerce platform being used items, Rakuten France also plays an important role in promoting a circular economy. For its customers to better understand the impact of the second-hand market, 150 product categories were studied for their CO2 impact, and some product categories now display the amount of CO2 emissions avoided thanks to the purchase of a used item rather than a new one.
Trade-in service at Rakuten Mobile
To reduce the generation of electronic waste, Rakuten Mobile offers a trade-in service for used smartphones and tablets. The trade-in devices are sold as refurbished products through Rakuma or Rakuten Ichiba after careful inspection and deletion of personal information at Rakuten-designated production centers. For more details, click here (page in Japanese).
Recycle
Electronic recycling at Rakuten Mobile
As a member of the Mobile Recycling Network, Rakuten Mobile collects and recycles used smartphones, mobile phones, battery packs and chargers from our customers, free of charge. This makes the use of precious metals — such as gold, silver, copper and palladium — contained in such devices more efficient, and avoids unnecessary environmental impact related to their disposal. For more details, click here (page in Japanese).
Biodiversity
Our business activities are supported by the richness and diversity of natural ecosystems that our service infrastructures and operations may impact. The Rakuten Group is committed to complying with domestic and international laws related to the conservation of biodiversity, to conducting business activities with due consideration to biodiversity, and to mitigating any harmful impacts that our services and products may have.
Protecting biodiversity
Wildlife product trade restrictions on e-commerce
Rakuten follows all local and relevant international laws on animals and wildlife, including international conventions such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and comprehensive regulations such as Japan’s Act for the Conservation of Endangered Species of Wild Fauna and Flora.
In addition to these laws, Rakuten’s marketplace policy — covering services such as Rakuten Ichiba and Rakuma — also prohibits the sale of wildlife products including those which make use of whale, dolphin, ivory or sea turtle.
Rakuten is committed to working with our merchant partners to ensure their businesses are conducted and their products on our e-commerce marketplaces are sourced and produced with due consideration made to biodiversity. Merchants not adhering to these guidelines may be subject to financial and other penalties.
Sustainable production and consumption with Rakuten Ichiba
Launched within Rakuten Ichiba under the banner of “shopping that changes the future,” Earth Mall with Rakuten promotes responsible consumption and production by introducing a selection of sustainable products. As Rakuten Ichiba is one of Japan’s leading B2B2C e-commerce platforms — connecting more than 50,000 merchants with over 100 million members — Earth Mall aims to make a large-scale positive contribution to the realization of a sustainable society, not only on the demand side, but also on the supply side through merchant engagement.
Among the products on offer, thousands of goods feature international certifications such as MSC (responsible fishery), FSC (responsible forestry management) or Rainforest Alliance (sustainable agriculture), which ensure the protection of biodiversity.
For more details, click here (page in Japanese).
*B2B2C: A business model where a company sells products or services to other companies and those buyers sell purchased products and services to general consumers.
Sustainable organic farming with Rakuten Farm
Conventional farming practices are said to have an adverse impact on biodiversity. The use of pesticides can pollute the habitat of wildlife in surrounding areas, rivers and oceans, and the adoption of monocrops can affect the fertility of soils. In contrast, organic farming contributes to the conservation of biodiversity and the environment, and causes less damage to the health of living beings, including farmers. However, the percentage of all cultivated land in Japan which can be considered organic farmland was only 0.5% as of 2018.
Rakuten’s agricultural service, Rakuten Farm, is making efforts to mainstream sustainable organic farming in Japan. It operates farms in Ehime, Hiroshima, and Shizuoka Prefectures, where it trains farmers in organic agriculture. Its factories also produce frozen organic vegetables.
Rakuten Farm has acquired the Organic JAS (Japan Agriculture Standard) certification for both its farmland and factories. This set of standards not only ensures the reduction of environmental impact but also takes into consideration food safety, traceability and working conditions. For more details, click here (page in Japanese).
Environmental Data
- * Environmental Data covers the Rakuten Group. Boundaries for waste generation is limited to large scale offices, fulfillment centers, stadiums, factories. See our Independent Assurance Statement for details.