Reducing CO2 emissions in response to climate change,
promoting the use of renewable energy, and so forth

Recognizing the risk of climate change as our Group’s greatest risk, we will encourage the incorporation of energy-saving vehicles (trains and buses) and the use of renewable energy to promote a modal shift, and expand the certificate acquisition and development of green buildings.

The Group has set a goal of reducing CO2 emissions by 46% or more compared to FY2013. Emissions for FY2022 were 192,162 t, which is a 38% reduction when compared to 309,902 t in the base year of FY2013. In particular, our energy intensity (denominator: distance traveled), which measures the efficiency of our railways, has been reduced by 5.5% over the past five years, while our energy intensity (denominator: total floor space) that measures the efficiency of our real estate has been reduced by only 1.0%.
We will continue to introduce energy-efficient vehicles as well as energy-efficient equipment in our real estate and distribution facilities to achieve the goals of the "Nankai Environmental Vision 2030." The Group has set a target of practically zero CO2 emissions by 2050, and will consider and enact all possible measures, including not only ways to conserve energy, but also the introduction and utilization of renewable energy, energy creation, and alternative energy, and the use of carbon offsets.

We have set "reducing climate change" as part of the Nankai Environmental Vision 2030 and are implementing measures to save greenhouse gas emissions.
The average temperature has risen worldwide, causing extreme high temperatures and more frequent rainfalls and floods and creating what we can call a climate crisis. In view of this, we have launched initiatives to enhance our risk management while incorporating the projected impact of climate change on our businesses, and incorporating the measures into our business strategy. In September 2021, we agreed to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)* that aims to reduce the risk of the financial market being destabilized by climate change.

*Established in 2015 by the Financial Stability Board, an international organization. It advises companies on how to evaluate their own business risks and opportunities caused by climate change, to understand the financial impact, and to disclose relevant information.

To enhance the reliability of its environmental impact data, the Group has obtained third-party assurance from Deloitte Tohmatsu Sustainability Co., Ltd. regarding the "Calculation Report on CO2 Emissions from Energy Consumption by Nankai Electric Railway Company and its 54 Consolidated Subsidiaries (FY2021)" for the FY2021 actual CO2 emissions from energy use (Scopes 1 and 2).

April 28, 2023 third-party assurance report (PDF:2,285KB)

In addition to CO2 emissions from the Group’s business activities (Scopes 1 and 2), we have calculated FY2021 results for indirect emissions generated in the supply chain (Scope 3). The results showed that purchased products and services accounted for approximately 60% of the total.

* Supply chain: A series of processes involved in the procurement, manufacture, logistics, sale, and disposal of products and other goods in business activities.
* Categories 4, 8, 9, 10, 12, and 14 are excluded from importance.
* Not guaranteed by any third party

The electricity consumption of our railways in FY2022 was 211,167,000 kWh (a decrease of 1.0% compared to FY2021). Of this, the amount used for operations was 183,373,000 kWh, accounting for 86.8% of the total amount, and the remaining ancillary electricity consumption was 27,794,000 kWh. Overall, the electricity consumption for railways decreased by 12.8% in FY2022 when compared to FY2012. Ancillary electricity is energy used for signal equipment, railroad crossings, and station facilities (lighting, air conditioning, elevators, etc.). We have been making efforts to conserve energy, such as saving energy during summer and winter months (strict adherence to room temperatures, etc.) and changing station light fixtures to LEDs.

"VVVF control" is the control of AC motors through voltage and frequency variation to determine train acceleration and speed. It does not use electrical resistance like conventional trains, which allows for control that is very energy efficient.
Furthermore, "regenerative braking" is a mechanism that makes the motors act as power generators when a train brakes. This generated energy is returned to overhead wires to be supplied to other trains running in the vicinity. This conserves the amount of consumed energy because it reuses the electricity that has been generated.
These systems reduce the use of electricity compared to conventional trains, so we are promoting the use of trains equipped with this system.

By connecting the power supply lines (to trains) for outgoing and incoming lines, we have reduced power supply resistance, which in turn reduces power losses from power lines. This allows regenerated current from regenerative brakes to run through the connection point, allowing outgoing and incoming trains to efficiently use the power to save the total power consumption. The use of phase capacitators to improve power factor also reduces power loss, improving power efficiency.

From FY2022 to FY2024, we plan to replace existing facilities with energy-saving equipment. Specifically, we are considering replacing heat source equipment that services the entire Nankai Terminal Building with equipment that is more efficient, and are also deliberating on the reduction of life-cycle costs by changing our equipment to the appropriate capacity and number of units according to the current load capacity. We are also considering cutting down on the electricity consumed by suppressing transporting power. This will be done by installing inverters that enable operation control according to the workload of pumps supplying cold water to all areas of large-scale facilities. Along with the renewal of these facilities, we also plan to automate equipment control, optimize operations, enable the visualization of these systems, and further cut down on energy consumption by installing heat source controllers and the Building Energy Management System (BEMS).

As part of our efforts to promote CO2 emission reduction of the Cable Line (Koyasan cable cars), we have been operating the line on 100% renewable energy by applying the "Renewable Energy ECO Plan" by Kansai Electric Power from June 2021. This initiative reduces CO2 emissions by approximately 60 t per year. This is the first instance of a cable car in Japan operating on 100% renewable energy.
*The Renewable Energy ECO Plan is a plan to use solar power, hydraulic power, wind power, and other power sources with added environmental value that are sourced from non-fossil trade market by Kansai Electric Power. By using this plan, the power used can be effectively deemed as power generated by renewable energy. Under the system to calculate, report, and publish the amount of greenhouse gas emissions in the Act on Promotion of Global Warming Countermeasures, the amount of carbon emissions from the power used under the plan can be calculated by setting the carbon emission coefficient as zero.

In the bus business, three fuel-cell buses powered by hydrogen as an alternative energy source to light oil were introduced in FY2021 (two Tokushima buses and one Nankai bus), and two electric buses (Nankai bus) were introduced in FY2022 and are in operation.
Going forward, we will "contribute to preserving the global environment," reducing environmental stress, and aiming for the realization of a sustainable society.

Regarding the use of solar energy, solar power generation systems have been installed in areas such as platform awnings at Hagoromo Station, Izumiotsu Station and Izumisano Station on the Nankai Line. Approximately 30% of the electricity consumed daily at the Izumiotsu Station is covered by the solar power.

CO2 emissions by trains are only 1/5 that of private cars.* We are making efforts to reduce CO2 emissions by promoting the use of public transport with Park & Ride initiatives.
*Source: The Ministry of Land, Infrastructure, Transport and Tourism website (carbon emissions in the transportation division)

The Carbon Disclosure Project (CDP) is a partnership of institutional investors requesting that companies disclose their climate change strategies and details of their greenhouse gas emissions. We respond to CDP questionnaires on climate change and water every year.