Carbon Neutral

Aiming to Achieve Carbon Neutrality

Greenhouse Gas Reduction Targets

The Kumagai Gumi Group aims to achieve carbon neutrality by 2050 and has set a specific reduction target for 2030. For Scope 1 and Scope 2 emissions, the Group plans to reduce greenhouse gas emissions by 42% compared to 2020 levels, and for Scope 3, by 25% over the same baseline.
In the future, we will further reduce fossil fuels used in heavy machinery and vehicles in our business activities and actively introduce renewable energy. In addition, we will promote ZEB, which contributes to significant energy savings in the buildings we provide and work on renewable energy generation projects.

The Kumagai Gumi Group’s greenhouse gas emissions

A performance table for greenhouse gas emissions. For Scope 1+2, emissions decreased from 130,500 t-CO2 in the basis year to 125,000 t-CO2 in FY2024. For Scope 3, emissions changed from 4,146,000 t-CO2 in the basis year to 4,703,000 t-CO2 in FY2024.

The Kumagai Gumi Group’s greenhouse gas reduction targets

Two greenhouse gas emission graphs. The top graph (Scope 1+2) outlines a path to zero emissions by 2050 through actions like using renewable power and decarbonizing construction machinery. The bottom graph (Scope 3) targets carbon neutrality by 2050 through promoting ZEB/ZEH, expanding wooden construction, procuring decarbonized materials, and creating forest carbon sinks.

Initiatives Aimed at Carbon Neutrality

1. Status of Scope 1 CO₂ reduction measures

Measures in addition to the continued use of hybrid construction machinery, Kumagai Gumi trialed the use of B100 biofuel in site office generators and introduced K-S1 fuel additives in FY2024 to improve fuel efficiency in heavy equipment. For FY2025, the company plans to pilot alternative fuels to diesel for use in construction machinery.

2. Status of Scope 2 CO₂ reductions

The Kumagai Gumi Group has set a target to source 100% renewable electricity for its business operations by 2050. Kumagai Gumi itself is accelerating this goal, aiming to achieve 100% renewable electricity use by 2030.

(1) Purchase of renewable energy menu

Full-scale efforts to introduce renewable electricity in the Construction Division began in FY2022, yielding measurable results. Starting in FY2025, all new construction projects will use renewable electricity.

Rate of adoption of renewable electricity and targets (Construction Division)

A graph titled 'Rate of adoption of renewable electricity (Construction Division).' The rate is defined as 'Amount of renewable electricity used (kWh) / Total amount of electric power used (kWh).' Performance values are 2.0% for FY2021, 20.4% for FY2022, 34.5% for FY2023, and 39.4% for FY2024, following a target line that reaches 100% in FY2029.

(2) Creation of renewable energy sources

Since FY2021, we have generated electricity at the Technical Research & Development Institute, Fukui Office, and Karuizawa Training Center using selfconsumption solar power generation. In January 2022, the Technical Research & Development Institute adopted self-consumption type solar power generation facility (roof type, carport type), as well as battery systems as a BCP measure. This creates more than 30% (max.) of the electricity used.

(3) Procurement of non-Fossil Certificates

The Technical Research & Development Institute has been continuously procuring non-Fossil Certificates since FY2022. In FY2024, it secured non-Fossil Certificates equivalent to 792,547 kWh of renewable energy value, achieving carbon neutrality for the Technical Research & Development Institute.

3. Status of Scope 3 CO₂ reductions

Kumagai Gumi is actively working to reduce Scope 3 Category 1 (Purchased Goods and Services) and Category 11 (Use of Sold Products) emissions, which constitute the bulk of its Scope 3 emissions. Category 1: The company is strengthening the adoption of decarbonized construction materials and pursuing quantitative assessment of their emission reduction effects. Category 11: For in-house designs, Kumagai Gumi is enhancing its energy-saving proposal capabilities during the design phase and has begun centralizing internal energy efficiency data. For externally designed projects, the company is implementing energy-saving proposals and has initiated a review of its emissions evaluation methodology.

The KumagaiGumi Group CO₂ emissions breakdown (FY 2024)

Detailed breakdown of CO2 emissions. Scope 3 accounts for 97.4%, primarily consisting of Category 11 (in-house design) at 52.8%, Category 11 (designed by another company) at 21.4%, and Category 1 at 20.9%. Scope 1 and Scope 2 represent 2.1% and 0.5% respectively, with a complete list of percentage shares for Categories 1 through 13.

Scope 3 is calculated for Categories 1 to 7, 11 to 13

Indicators and Targets

Specific issue: Accomplishment of carbon neutrality

Specific initiatives: CO₂ emissions reduction activities
Indicators: Scope 1+2/Scope 3 emissions reduction rates (FY2019 base year, FY2029 targets)
Targets: Scope 1+2: 42% reduction/Scope 3: 25% reduction

Measures for Achieving 2030 CO₂ Emission Reduction Targets

In FY2024, Kumagai Gumi formulated a set of priority measures to help achieve its CO₂ emission reduction targets for 2030. Moving forward, the company will promote these initiatives company-wide, regularly evaluate progress, and revise countermeasures as needed.

Schedule table for priority measures. For Scope 1+2, it plans for 100% renewable electricity by FY2029, transitioning from trials to full adoption of decarbonized construction machinery, and company-wide adoption of biofuels. For Scope 3, it outlines continuous efforts through FY2029 to promote decarbonized material procurement and strengthen energy-saving proposal capabilities through operational monitoring.