Tohoku Electric Power

Tohoku aims to achieve net-zero scope 1 and scope 3 category 3 (fuel and energy-related activities) emissions by 2050 and to reduce these emissions by 50% by 2030, compared to 2013. However, these targets could not be assessed for alignment with a 1.5°C pathway as the company will use unquantified offsets to achieve them. Tohoku should set intermediate targets at gaps of no more than five years to incentivise near-term actions on its longer-term goals. Tohoku should also clearly report any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

Tohoku’s emissions intensity trend increased between 2017 and 2022. To align with its 1.5°C in 2027, Tohoku must reduce its emissions intensity by about 9% per year. Tohoku is projected to significantly exceed its total 1.5°C carbon budget for the period 2022-2037 due to its continued high reliance on fossil fuels. Gas, coal and oil are projected to account for about 79% of Tohoku’s energy generation in 2037. Although the company’s proportion of coal-fired energy generation is projected to decrease, its gas-fired generation is projected to increase. As a result, the projected decrease in the company’s emissions intensity between 2022 and 2027 is not forecasted to align with its 1.5°C pathway.

Between 2018 and 2022, Tohoku invested USD 48 million in research and development (R&D). Tohoku conducts R&D on the efficiency of its fossil fuel generation, hydrogen production, combining solar power generation with storage cells, and energy management systems (EMS). Tohoku also conducts R&D in the co-firing of liquified natural gas (LNG) with hydrogen and ammonia, a non-mature technology. To allow for a better assessment of its efforts, Tohoku should disclose its climate-related R&D spending in both mature and non-mature low-carbon technologies. Moreover, the company should allocate the majority of its R&D investments towards low-carbon energy and technologies.

Tohoku has implemented board-level oversight of climate change through its Sustainability Promotion Committee. However, there is no evidence that members of this committee have any low-carbon expertise or transition experience. Tohoku demonstrates elements of transition planning and has the opportunity to strengthen its stance by developing a separate transition plan and outlining its measures for success. Tohoku offers monetary incentives to its Directors on Board for managing climate-related issues, such as working towards energy efficiency improvements. Despite this, it is unclear whether the company still incentivises targets related to fossil fuel growth.

Tohoku has set a target to achieve net-zero scope 1 and scope 3 category 3 (fuel and energy-related activities) emissions by 2050, supported by a target to reduce these emissions by 50% by 2030, compared to 2013. However, these targets are reliant on unquantified offsets.

Tohoku reports some elements of a transition plan, such as its ambition to develop a 2 GW capacity for renewables soon after 2030 and expanding this capacity further until 2050. The company plans to invest USD 3.08 billion over eight years (until 2030) in renewables and in its smart society-building business (which aims to use digital technologies to find solutions to social challenges) and distributed networks. Tohoku aims to bring nuclear power generation back online, outlining a supporting investment of USD 771 million, with plans to resume the operation of its Onagawa Unit 2 plant in 2024, as well as to proceed with developing other plants.

In 2022, about 85% of Tohoku’s electricity generation was from fossil fuels. Tohoku is developing 26 low-carbon electricity power stations, consisting of onshore and offshore wind, solar, geothermal and hydroelectric power and biomass. Tohoku has run pilot tests to investigate the use of hydrogen and ammonia, instead of liquified natural gas (LNG), and the mixed combustion of biomass and ammonia with coal.

Tohoku’s emissions intensity trend for its own energy generation increased between 2017 and 2022. Over this period, Tohoku’s total emissions remained relatively stable, despite a reduction in its total energy generated, along with the proportion of fossil fuel power in its generation mix remaining almost stable. To align with its 1.5°C pathway in 2027, Tohoku needs to reduce its emissions intensity by about 9% per year. Tohoku’s emissions intensity associated with its purchased power for resale significantly increased between 2017 and 2022.

Tohoku’s targets aim to achieve net-zero scope 1 and scope 3 category 3 (fuel and energy-related activities) emissions by 2050. However, this target relies on unquantified offsets. Tohoku’s objective to expand its renewable energy capacity and increase its nuclear power capacity is supported by an investment of USD 3.08 billion until 2030. However, the company has not committed to phasing out fossil fuels.

No evidence was found to show the company’s commitment to social dialogue or disclose the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company discloses the categories of stakeholders whose human rights may be impacted by its activities. However, no other policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company discloses its time-bound targets to double the number of women managers by 2024. However, no other evidence of the company’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

The company commits to protecting personal data. However, no other policies or commitments of the company related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.