Company aims to incorporate environmental costs into investment decisions to accelerate carbon neutrality 

Hioki (HIOKI E.E. Corporation; Head Office: Ueda, Nagano; President and CEO: Takahiro Okazawa) has decided to implement internal carbon pricing (ICP) as part of its ongoing efforts to help realize a sustainable society.

In pursuit of a sustainable society, Hioki adopted a Basic Sustainability Policy and issued the Hioki Sustainability Declaration, which includes its CO2 emission reduction goals, in February 2022. The declaration outlines Hioki’s commitment to achieving carbon neutrality for Scope 1 and Scope 2 emissions by 2025 (its 90th anniversary), and for Scope 3 emissions by 2035 (its 100th anniversary).

In introducing ICP, Hioki is looking to accelerate and enhance decision-making related to investments that contribute to achieving its environmental goals by assigning a clear internal cost to greenhouse gas emissions. The approach is designed to drive initiatives that reduce environmental impact.

Background and ICP Pricing

Since 2023, Hioki has been purchasing J-Credits (carbon credits) derived from forests in Nagano Prefecture at a price of ¥15,000 per ton. This figure has now been adopted as the internal standard for the company’s ICP.

By formally incorporating this ICP into its investment decision-making process, Hioki will facilitate consideration of CO2 emissions across various internal projects and capital investments in a bid to further strengthen its efforts toward realizing a decarbonized society.

Related links

•Internal Carbon Pricing Guidelines (Ministry of the Environment)
 https://www.env.go.jp/content/900503156.pdf
•Hioki Purchases J-Credits Derived from Forests in Nagano Prefecture to Help Realize a Sustainable Society (Hioki official website)
 https://www.hioki.co.jp/jp/information/detail/?id=2741
•About the Nagano Public Corporation of Forestry’s J-Credit program
 http://www.nagarin.or.jp/j-credit.html
 

Newsroom