Tokyo Electric Power Company

TEPCO has set a target to reduce its scope 1 and 2 emissions by 50% by 2030 and by 100% by 2050, compared to 2019. TEPCO has also set a target to reduce its scope 3 category 3 (fuel and energy-related activities) emissions by 50% and emissions intensity by 56% by 2030 compared to 2013. However, the company has not set sufficient intermediate targets. Setting regularly spaced intermediate targets will help the company incentivise near-term action on its longer-term goals. Moreover, TEPCO should clarify any planned use of offsets as the company’s current lack of clarity regarding these means its targets could not be assessed in the benchmark.

TEPCO has invested 97% of its research and development (R&D) expenditure sbetween 2019 and 2021 into low-carbon technologies. TEPCO focuses its low-carbon R&D on nuclear power, hydroelectricity, wind power, smart grids and smart meters. It also focuses on non-mature technologies such as virtual power plants and demand response technologies. However, due to its strong reliance on JERA for sold electricity sourced from coal and fossil gas, it is vital for TEPCO to focus on carbon capture and storage (CCS) or direct air capture (DAC) technologies.

Nearly all of TEPCO’s electricity sold comes from JERA, 50% owned joint venture with Chubu Electric Power. JERA only uses coal and natural gas as generation sources. As a consequence, TEPCO’s emissions intensity remained static between 2017 and 2022. However, to align with its 1.5°C pathway in 2027, TEPCO must reduce its emissions intensity by approximately 9% per year. TEPCO must reduce its reliance on fossil fuels for electricity generation. Unless it promptly does so, TEPCO is unlikely to align with its 1.5°C pathway in 2027.

TEPCO has set a target to reduce its scope 1 and 2 emissions by 50% by 2030 and by 100% by 2050, compared to 2019. It has also set a target to reduce its scope 3 category 3 emissions by 50% by 2030 compared to 2013. Further, TEPCO aims for 44% of its delivered power to be generated from low-carbon sources by 2030. Despite this, TEPCO and its 50% owned joint venture JERA have not set a coal phase-out date.

TEPCO invested 97% of its total R&D spending into low-carbon technologies between 2019 and 2021. TEPCO plans to invest USD 20 billion into renewables by 2030. It also plans to invest USD 134 billion into low-carbon sources by 2030 and USD 537-671 billion by 2050. Further, it plans to develop 7 GW of renewable energy capacity by 2030 and aims for 44% of its delivered power to be generated from low-carbon sources, such as nuclear energy, hydroelectricity, and wind and solar power, over the same period.

In 2022, almost 7% of the company’s energy was generated from low-carbon sources, mainly hydroelectricity. However, TEPCO relies on its 50% owned joint venture JERA, which uses coal and natural gas as generation sources, for almost all of the remainder of its sold power. TEPCO is developing low-carbon business models; however, only 5% of the company’s revenue is generated from low-carbon products and services. TEPCO’s low-carbon capital expenditure (CapEx) in 2022 accounts for 30% of its total CapEx. TEPCO has invested 97% of its total R&D spending into low-carbon technologies, such as nuclear energy, hydroelectricity, wind power, smart grids and smart meters.

TEPCO’s emissions intensity trend for its own energy generation remained static between 2017 and 2022. However, to align with its 1.5°C pathway, the company is required to reduce this emissions intensity by approximately 9% per year. TEPCO has strongly relied on JERA for its sold power in the past and has continued to rely on JERA for the majority of its sold power in 2022. JERA uses only coal and natural gas as generation sources.

The company plans for 44% of its delivered power to be generated from low-carbon sources by 2030. It also aims to reduce its scope 3 category 3 emissions by 50% by 2030 compared to 2013. However, the company’s emissions reduction targets and transition planning are hindered by its significant current and future reliance on JERA for its sold power derived from coal and fossil gas. Neither TEPCO nor JERA has announced a coal phase-out date. Due to these inconsistencies, it is unclear if the company will be successful in a low-carbon economy.

No evidence was found that the company commits to social dialogue or discloses 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 commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Moreover, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as sexual harassment, working hours and personal information. However, no evidence that the company takes action to mitigate these risks in its own operations and supply chain, nor does it engage with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company commits to gender equality and women’s empowerment.

The company indicates that it has a confidential and anonymous channel/mechanism accessible to all stakeholders to raise bribery and corruption concerns and complaints without fear of reprisals. 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.