NTT DATA and Nagoya Bank Collaborate to Achieve Carbon Neutrality in the Tokai Economic Region

NTT DATA Corporation

NTT DATA Corporation (President and CEO: Masanori Suzuki, hereinafter referred to as NTT DATA) has commenced collaboration with Nagoya Bank, Ltd. (Director and President: Ichiro Fujiwara, hereinafter referred to as Nagoya Bank) to implement "C-Turtle® FE" and promote the regional deployment of C-Turtle, aiming to achieve carbon neutrality in the Tokai economic region and surrounding areas. Through this collaboration, we will leverage the GHG emissions visualization platform C-Turtle FE to enhance the calculation of GHG emissions related to Nagoya Bank's investments and loans (hereinafter referred to as financed emissions). Concurrently, we will offer the GHG emissions calculation platform "C-Turtle" free of charge to regional companies that are clients of Nagoya Bank's investments and loans, thereby fostering engagement with these local businesses. This initiative is realized based on the agreement between Nagoya Bank and NTT DATA. The implementation of C-Turtle FE marks the first adoption by a financial institution headquartered in Aichi Prefecture.

【Background】

In response to the goal of achieving carbon neutrality, financial institutions are increasingly required to calculate and disclose not only their own group's GHG emissions but also the financed emissions from their investments and loans. Nagoya Bank has recently introduced NTT DATA's C-Turtle FE to efficiently and accurately calculate financed emissions for tens of thousands of its investee and loan recipient companies. In parallel, as a customer engagement measure for GHG reduction, they will begin offering C-Turtle free of charge to these companies.

As a financial institution supporting the regional community, Nagoya Bank has identified three materialities: "Support for the growth of a sound regional economy," "Contribution to sustainable environmental conservation," and "Development of human resources who will continue to be active in the future." They are earnestly working to solve the challenges faced by their investee and loan recipient companies. Furthermore, Nagoya Bank has set a target of "cumulative ESG investment and lending of 500 billion yen" over the ten years leading up to fiscal year 2030, and aims to achieve carbon neutrality in Scope 1 and 2 by fiscal year 2050. Nagoya Bank has determined that it is crucial not only to calculate its own emissions but also to calculate and disclose the emissions of suppliers, including investee and loan recipient companies and purchasing partners, and to collaborate with suppliers in various industries within the Tokai economic region to reduce GHG emissions. To this end, they have decided to implement NTT DATA's C-Turtle FE.

【About C-Turtle FE】

C-Turtle FE is a service that supports the visualization and reduction of financed emissions in compliance with the international standard "PCAF (Note 3) Standard" for financial institutions, utilizing C-Turtle, which adopts the "Total Emissions Allocation Method" that allows for the incorporation of supplier reduction efforts as a reduction effect in one's own Scope 3 emissions. With C-Turtle FE, by utilizing GHG emissions data (primary data) of investee and loan recipient companies, it is possible to calculate financed emissions with high data quality that reflects GHG emissions reduction efforts.

Figure 1: Overview of "C-Turtle FE"

【About C-Turtle】

C-Turtle is a GHG emissions visualization platform that enables the calculation of reducible Scope 3 emissions. Generally, Scope 3 emissions are often calculated using "activity volume (scale of corporate activity)" × "emission factor (market average value)," which makes it difficult to reflect a company's reduction efforts. C-Turtle utilizes the measured values (primary data) of supplier emissions for Scope 3 calculations, allowing for the incorporation of supplier reduction efforts into one's own emissions.