Climate Change and Decarbonization

Policy and Approach

Climate action and decarbonisation represent strategic priority areas where ID&E Group delivers substantial impact through our core engineering and infrastructure expertise developed since in-ception. We have established a comprehensive "Action Guidelines for Climate Change / Realising a Decarbonised Society" to guide our climate response. We maintain rigorous accountability standards aligned with international climate frameworks, fostering multi-stakeholder collaboration to promote comprehensive and advanced initiatives toward the realisation of decarbonised society.

Action Guidelines for Climate Change and Decarbonisation

TCFD Recommendations Initiatives

For ID&E Group, climate change response presents both risks and numerous opportunities. Based on Task Force on Climate-related Financial Disclosures (TCFD) recommendations, we continue efforts to clearly communicate climate change impacts on our Group's corporate activities to stakeholders. We conducted our first TCFD-based disclosure in September 2023, and updated disclosure content in April 2024.

TCFD recommendation-based information disclosure

Calculation of GHG Emissions and Reduction Strategy

The Group monitors greenhouse gas emissions from business activities and evaluates their management implications through comprehensive Scope 1, Scope 2, and Scope 3 CO₂ emissions quantification across five main group companies, implemented since FY 2023/ 06 in alignment with our scenario analysis methodology. Until FY 2024/ 06, GHG emissions accounting was limited to five principal subsidiaries. From FY 2025/ 06, we have expanded the reporting boundary to include all consolidated subsidiaries. To better reflect actual emissions, we are reviewing and enhancing our data collection and calculation methodologies. Our reduction strategy includes proactive transition to hybrid and electric vehicles (HV/EV), and increased procurement of electricity derived from renewable energy sources. Furthermore, from FY 2025, we will begin Carbon Footprint (CFP) assessments for products manufactured in the Energy segment, marking a significant step forward in reducing emissions across our supply chain.

Initiatives

Our Group actively advances both mitigation strategies targeting greenhouse gas absorption, sequestration, and emissions reduction, and adaptation measures addressing anticipated climate change impacts. Across urban development, transport, forest conservation, renewable energy, and disaster risk reduction sectors, we integrate established technical expertise with innovative technologies to deliver comprehensive solutions addressing both mitigation and adaptation requirements.

Vietnam's First Metro Line Opens

Nippon Koei provided end‑to‑end services for Ho Chi Minh City Metro Rail Line 1, covering the project from basic design through construction supervision, thereby contributing to the resolution of urban challenges such as traffic congestion and air pollution. With the commencement of railway operations, the project is expected to reduce commute times, decrease traffic accidents, and lower greenhouse gas emissions. By promoting the use of public transportation, it also helps reduce dependence on private vehicles and contributes to improving air quality. Through this initiative, Nippon Koei is creating social value that supports sustainable urban development.