Corporate Governance
Message from the ESG Officer

The Ukraine crisis, rising fuel procurement costs, and the increasing share of domestic renewable energy have fundamentally reshaped the global energy landscape. Nations are competing fiercely to secure energy and are being compelled to reassess their energy policies.
Against this backdrop, momentum toward achieving the SDGs by 2030 and the growth of ESG (Environmental, Social, and Corporate Governance) investing grounded in the Paris Agreement have continued on an upward trajectory, despite the uncertain outlook shaped by global volatility, including the situation in Ukraine.
For many years, the TEPCO Group has supplied energy primarily across the Tokyo metropolitan area. Whatever the future may hold, we remain committed to ensuring a stable supply of power and delivering new value to society and our customers—centered on carbon neutrality and strengthened resilience—thereby enhancing corporate value and creating social value.

Initiatives toward Carbon Neutrality

The TEPCO Group has set the goal of “reducing CO₂ emissions originating from retailed power to 50% of FY2013 levels by FY2030,” and in the Fourth Comprehensive Special Business Plan announced in 2021, we clearly stated our commitment to achieving carbon neutrality by 2050.
In April 2022, we announced “Business Structure Reforms to Achieve Both Long‑Term Stable Supply and Carbon Neutrality.” On the supply side, we will position renewable energy as a main power source. On the demand side, we will work closely with customers—down to their equipment and energy‑use conditions—and shift toward a business model centered on facility services, including renewable power and storage batteries, to create new corporate value.

Initiatives to Strengthen Resilience

As natural disasters have intensified in recent years, the TEPCO Group has strengthened collaboration with national and local governments and leveraged Group‑wide resources to review our disaster‑preparedness systems and measures.
In our supply infrastructure, we will systematically replace aging equipment and build mechanisms that leverage drones and digital transformation (DX) to deliver accurate information and enable early restoration during disasters.
To strengthen resilience across society, we will propose securing in‑house power sources—primarily renewables—deploy storage batteries, and promote V2X (vehicle‑to‑everything) solutions using electric vehicles. Together with our customers, we will also advance initiatives that envisage their facilities serving as regional energy supply hubs in times of disaster.

Proactive Disclosure and Enhanced Dialogue

While our disclosures have focused on Environment (E), we must further increase transparency in Social (S) and Governance (G). Guided by stakeholder requests and the IFRS Sustainability Disclosure Standards, we will advance initiatives and disclosures not only in E, but in S and G as well.
To strengthen ESG initiatives company‑wide, it is essential to accurately understand how stakeholders assess our efforts. Through engagement with customers and diverse stakeholders to identify shared objectives and goals, we can build win‑win relationships. By taking the feedback and opinions we receive seriously, we can positively influence internal decision‑making and pursue more effective strategies and actions. When embraced across the organization, this approach translates into performance outcomes and contributes to enhancing corporate value.
Relying on objective indicators—such as scores from ESG rating agencies—that show how our Group is evaluated, we will identify key challenges and accelerate efforts to strengthen our ESG initiatives.

October, 2024
Executive Vice President
Hiroyuki Yamaguchi