Hokkaido Bank Promotes Decarbonization Utilizing Virtual PPA, First Among Financial Institutions in Hokkaido
Hokkaido Bank, as part of Hokuhoku Financial Group, will utilize a Virtual PPA contract with Sustech to acquire environmental value derived from renewable energy, promoting decarbonization. This marks the first such initiative by a financial institution headquartered in Hokkaido and is part of the group's strategy to achieve net-zero GHG emissions by 2030.
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- 📰 Published: May 9, 2026 at 00:00
- 🔍 Collected: May 8, 2026 at 15:32
- 🤖 AI Analyzed: May 8, 2026 at 15:37 (5 min after Collected)
Hokuhoku Financial Group (President: Hiroshi Nakazawa; hereinafter, Hokuhoku FG)'s Hokkaido Bank (Sapporo, Hokkaido; President: Yuji Kanema; hereinafter, Hokkaido Bank) announces that it will acquire environmental value derived from renewable energy (hereinafter, RE) by utilizing a Virtual PPA contract concluded between Hokuhoku FG and Sustech Inc. (Minato-ku, Tokyo; Representative Directors: Yusuke Tanno, Yuichiro Iida; hereinafter, Sustech). This initiative is part of Hokuhoku FG's promotion of SX (Sustainability Transformation) / GX (Green Transformation) based on its decarbonization roadmap and medium-term management plan. This marks the first initiative of its kind by a financial institution headquartered in Hokkaido.
Hokuhoku FG has set targets to achieve net-zero GHG emissions (Scope 1, 2) by FY2030, and net-zero GHG emissions across the entire supply chain (including Scope 3 from business partners, etc.) by FY2050. In its 6th Medium-Term Management Plan "NEXT STAGE," SX/GX is positioned as a core management strategy. Through the deepening of "problem-solving capabilities" by integrating financial and non-financial services, the group is working to build an ecosystem that connects regions, business partners, and itself. While promoting decarbonization initiatives such as environmentally friendly branches (ZEB branches) and the utilization of various corporate PPAs, the group views solving regional social and environmental issues as an "opportunity for value creation" and aims for the sustainable development of regional society.
This initiative involves Sustech transferring environmental value generated at FIP power plants developed and operated domestically to Hokuhoku FG, which then allocates environmental value to Hokkaido Bank according to the amount of electricity consumed by the bank. For Hokuhoku FG, this is the second such project, following the Virtual PPA contract between Hokuriku Bank (also a regional bank, released on March 7, 2025) and Sustech, which was the first for a regional bank, as a scheme where environmental value circulates beyond regions.
Virtual PPA provides renewable energy electricity and environmental value separately, making it possible to substantially introduce renewable energy that is flexible and wide-ranging. Furthermore, since this scheme does not involve physical power supply, it can be introduced without changing existing electricity contracts, and it is characterized by its ability to simultaneously suppress long-term price fluctuation risks and promote decarbonization without capital investment.
Hokuhoku FG will accelerate the reduction of GHG emissions (Scope 1, 2) through this initiative. Moving forward, it will continue to work towards the realization of a sustainable environment and society for the entire region, including the deployment of carbon neutrality measures to regions and investees, through the utilization and development of various renewable energy utilization mechanisms. Sustech supports the execution of medium- to long-term decarbonization strategies for companies, including financial institutions, by providing end-to-end services from the development and operation of FIP power plants to power management and supply, and environmental value tracking. Through the smooth introduction of this initiative, Sustech will accompany Hokuhoku FG's advanced efforts.
*1 First case among financial institutions headquartered in Hokkaido to conclude a Virtual PPA contract targeting renewable energy environmental value as a demand-side party (as of April 30, 2026, according to InK Co., Ltd. research, based on public information).
*2 Estimated based on the Ministry of the Environment's GHG Emission Calculation, Reporting, and Disclosure System, FY2025 Electricity Retailer-Specific Emission Factors (for calculating GHG emissions of specified emitters) National Average Emission Factor (dated January 9, 2026).
About Hokuhoku Financial Group:
Hokuhoku Financial Group was established in 2003 and is a wide-area financial group spanning 13 prefectures, centered in the Hokuriku region and Hokkaido, with 17 group companies. Through its group companies, it provides a wide range of financial services including banking, financial product trading, consulting, leasing, credit cards, credit guarantees, system development, and venture capital. Hokuhoku Financial Group contributes to the prosperity of regions and customers.
About Sustech Inc.:
Sustech was founded in 2021 with the management mission "Design the New Era of Energy." It provides comprehensive solutions for carbon neutrality, including the innovative distributed power operation platform "ELIC" and the decarbonization support platform "CARBONIX." Sustech aims to realize truly impactful green businesses utilizing technology.
Hokuhoku FG has set targets to achieve net-zero GHG emissions (Scope 1, 2) by FY2030, and net-zero GHG emissions across the entire supply chain (including Scope 3 from business partners, etc.) by FY2050. In its 6th Medium-Term Management Plan "NEXT STAGE," SX/GX is positioned as a core management strategy. Through the deepening of "problem-solving capabilities" by integrating financial and non-financial services, the group is working to build an ecosystem that connects regions, business partners, and itself. While promoting decarbonization initiatives such as environmentally friendly branches (ZEB branches) and the utilization of various corporate PPAs, the group views solving regional social and environmental issues as an "opportunity for value creation" and aims for the sustainable development of regional society.
This initiative involves Sustech transferring environmental value generated at FIP power plants developed and operated domestically to Hokuhoku FG, which then allocates environmental value to Hokkaido Bank according to the amount of electricity consumed by the bank. For Hokuhoku FG, this is the second such project, following the Virtual PPA contract between Hokuriku Bank (also a regional bank, released on March 7, 2025) and Sustech, which was the first for a regional bank, as a scheme where environmental value circulates beyond regions.
Virtual PPA provides renewable energy electricity and environmental value separately, making it possible to substantially introduce renewable energy that is flexible and wide-ranging. Furthermore, since this scheme does not involve physical power supply, it can be introduced without changing existing electricity contracts, and it is characterized by its ability to simultaneously suppress long-term price fluctuation risks and promote decarbonization without capital investment.
Hokuhoku FG will accelerate the reduction of GHG emissions (Scope 1, 2) through this initiative. Moving forward, it will continue to work towards the realization of a sustainable environment and society for the entire region, including the deployment of carbon neutrality measures to regions and investees, through the utilization and development of various renewable energy utilization mechanisms. Sustech supports the execution of medium- to long-term decarbonization strategies for companies, including financial institutions, by providing end-to-end services from the development and operation of FIP power plants to power management and supply, and environmental value tracking. Through the smooth introduction of this initiative, Sustech will accompany Hokuhoku FG's advanced efforts.
*1 First case among financial institutions headquartered in Hokkaido to conclude a Virtual PPA contract targeting renewable energy environmental value as a demand-side party (as of April 30, 2026, according to InK Co., Ltd. research, based on public information).
*2 Estimated based on the Ministry of the Environment's GHG Emission Calculation, Reporting, and Disclosure System, FY2025 Electricity Retailer-Specific Emission Factors (for calculating GHG emissions of specified emitters) National Average Emission Factor (dated January 9, 2026).
About Hokuhoku Financial Group:
Hokuhoku Financial Group was established in 2003 and is a wide-area financial group spanning 13 prefectures, centered in the Hokuriku region and Hokkaido, with 17 group companies. Through its group companies, it provides a wide range of financial services including banking, financial product trading, consulting, leasing, credit cards, credit guarantees, system development, and venture capital. Hokuhoku Financial Group contributes to the prosperity of regions and customers.
About Sustech Inc.:
Sustech was founded in 2021 with the management mission "Design the New Era of Energy." It provides comprehensive solutions for carbon neutrality, including the innovative distributed power operation platform "ELIC" and the decarbonization support platform "CARBONIX." Sustech aims to realize truly impactful green businesses utilizing technology.