Iris Ohyama and ByWill Form Business Alliance to Promote Sustainable Regional Economic Development

Iris Ohyama Co., Ltd. (Headquarters: Sendai, Miyagi Prefecture; President: Akihiro Oyama) and ByWill Inc. (Headquarters: Chuo-ku, Tokyo; President: Yuichiro Shimomura) have entered into a business alliance to support the conversion of environmental value into J-Credits*1 and to facilitate investment in CO2 reduction. Starting today, they will begin offering support for J-Credit creation.

In addition to the recent surge in energy prices, the impending 2027 ban on the manufacturing, import, and export of fluorescent lamps has created an urgent demand for LED lighting. Coupled with the accelerated push for decarbonization towards carbon neutrality, companies and municipalities are facing pressing needs to save energy and optimize electricity usage. Many local governments, in particular, are struggling to secure the necessary funds for decarbonization-related investments, such as converting to LED lighting. This is due to rising material costs and tight budgets, despite the growing need to update aging public facilities. Consequently, there is a demand for concrete Green Transformation (GX) models that turn environmental measures into new sources of revenue and economic circulation for the region, rather than just being a cost or burden.

Iris Ohyama entered the corporate LED lighting business in 2010. Following the Great East Japan Earthquake in 2011, the company has diversified its operations under the management pillar of "Japan Solutions" to solve societal issues. In its energy-saving solutions business, the company aims to contribute to 7%*2 of the 2030 greenhouse gas emission reduction targets. It offers a wide range of solutions to meet diverse societal needs, including not only LED lighting but also the "LiCONEX" wireless control system to enhance lighting efficiency, the "Energy Saver" to optimize air conditioning and reduce power consumption, and the "ENEverse" EMS solution to visualize and optimize energy use across facilities.

Meanwhile, ByWill provides one-stop support for creating and selling environmental value, such as J-Credits*1, for numerous municipalities and companies, including partnerships with over 78 financial institutions nationwide. Its program-type project, "Kiraki Labo*3," consolidates CO2 emission reductions from the installation of LED lighting and handles the entire process from J-Credit*1 creation to sales. Leveraging its extensive experience and know-how, ByWill provides comprehensive support, from navigating the complex application procedures, which can be a significant hurdle for businesses and local governments, to ensuring the successful sale of the created J-Credits*1.

Through this business alliance, the two companies will provide a concrete and sustainable GX solution that addresses the challenges of decarbonization and securing financial resources for municipalities by creating new value. By integrating Iris Ohyama's LED lighting technology with ByWill's expertise in environmental value creation, they will establish a system that transforms the switch to LED lighting from a simple equipment update into an environmental asset. The CO2 reduction effects will be converted into J-Credits*1 and circulated as environmental value for use in the decarbonization efforts of domestic companies. This will enable municipalities to establish a revenue model based on environmental value, reinvesting the profits into further environmental measures. This creates a virtuous cycle of decarbonization and investment, promoting sustainable regional economic development.

Iris Ohyama and ByWill will continue to propose solutions that contribute to solving social issues through the development of new products and initiatives that support electricity and energy savings.

*1: A system where the government certifies CO2 and other greenhouse gas emission reductions or absorptions from decarbonization activities, such as installing energy-saving equipment or using renewable energy, as "credits." These credits can be sold to other companies, which can then use them for carbon offsetting.

*2: Calculated based on the annual electricity savings (kWh) from the sales quantity of Iris Ohyama products, which is then converted into CO2 emissions (in hundred million t-CO2).

*3: A "CO2 reduction project through the introduction of LEDs in homes and offices" operated and managed by ByWill. It is a "program-type" project that creates J-Credits by bundling together small-scale decarbonization activities that would be difficult to certify for J-Credits on their own.

■ Overview of the Collaboration Scheme