Collaboration Started with The Bank of Nagoya to Achieve Carbon Neutrality in the Tokai Economic Zone

NTT DATA Corporation

NTT DATA Corporation (President and Representative Director: Masanori Suzuki; hereinafter "NTT DATA") has begun a collaboration with The Bank of Nagoya, Ltd. (President: Ichiro Fujiwara; hereinafter "The Bank of Nagoya") to implement "C-Turtle® FE" and expand the use of C-Turtle in the region, aiming to achieve carbon neutrality, particularly within the Tokai economic zone. Through this collaboration, the parties will utilize the GHG emission (Note 1) visualization platform C-Turtle FE to advance the calculation of GHG emissions related to The Bank of Nagoya’s investments and loans (hereinafter "financed emissions" (Note 2)). Additionally, by providing the GHG emission calculation platform "C-Turtle" free of charge to regional companies that are investment and loan clients of the bank, they aim to improve engagement with these regional businesses. This initiative is realized based on a contract between The Bank of Nagoya and NTT DATA. This marks the first implementation of C-Turtle FE by a financial institution headquartered in Aichi Prefecture.

[Background] As part of efforts to achieve carbon neutrality, financial institutions are required to calculate and disclose not only their own group's GHG emissions but also the financed emissions of their investment and loan clients. The Bank of Nagoya has introduced C-Turtle FE, provided by NTT DATA, to efficiently and accurately calculate financed emissions for its tens of thousands of investment and loan clients. Concurrently, the bank has begun offering C-Turtle free of charge to these clients as a customer engagement measure for GHG reduction.

As a financial institution supporting the local community, The Bank of Nagoya has identified three materialities: "support for sound regional economic growth," "contribution to sustainable environmental conservation," and "fostering human resources who will continue to play an active role in the future." The bank is sincerely committed to solving the challenges faced by its investment and loan clients. Furthermore, it has set a goal of "500 billion yen in cumulative ESG investments and loans" over the 10 years leading up to fiscal year 2030, and aims to achieve carbon neutrality in Scope 1 and 2 by fiscal year 2050. The Bank of Nagoya determined that it is important not only to calculate its own emissions but also to calculate and disclose emissions including those of its suppliers, such as investment and loan clients and procurement partners, and to promote the reduction of GHG emissions in cooperation with suppliers across various industries in the Tokai economic zone. Consequently, the bank decided to introduce C-Turtle FE provided by NTT DATA.

[About C-Turtle FE] C-Turtle FE is a service that supports the visualization and reduction of financed emissions in accordance with the international financial industry standard "PCAF (Note 3) Standard" on the C-Turtle platform, which adopts the "total emission allocation method" that allows a company to incorporate the reduction efforts of its suppliers into its own Scope 3 emission reduction effects. With C-Turtle FE, by utilizing GHG emission information (primary data) from investment and loan clients, it becomes possible to calculate financed emissions with high data quality that reflects GHG emission reduction efforts.

[Figure 1: Overview of "C-Turtle FE"] (Image omitted)

[About C-Turtle] C-Turtle is a GHG emission visualization platform that enables the calculation of reducible Scope 3 emissions. Generally, Scope 3 is often calculated as "activity volume (scale of corporate activity)" × "emission intensity (market average value)," which poses the challenge of making it difficult to reflect a company's reduction efforts. C-Turtle adopts the "total emission allocation method," which utilizes actual measured values (primary data) of supplier emissions for Scope 3 calculations, allowing a company to incorporate the reduction efforts of its suppliers into its own emissions. This clarifies the visualization status of emissions from investment and loan clients and suppliers, enabling the promotion of GHG emission calculation and reduction throughout the supply chain.

[Future Outlook] NTT DATA will contribute to the realization of carbon neutrality and sustainable development in the Tokai economic zone through the advancement of The Bank of Nagoya's financed emission calculations using C-Turtle FE and the promotion and utilization of C-Turtle among its investment and loan clients.

[Notes] Note 1: GHG stands for Green House Gas, referring to emissions of greenhouse gases such as carbon dioxide and methane. Note 2: Greenhouse gas emissions related to a financial institution's investments and loans. Note 3: PCAF (Partnership for Carbon Accounting Financials) is an industry-led initiative to standardize the measurement and disclosure of financed emissions related to financial institutions' investments and loans.

"C-Turtle" is a registered trademark of NTT DATA Corporation in Japan. https://www.nttdata.com/jp/ja/lineup/c-turtle/

This release is one of the initiatives of the GX solution brand "NTT G×Inno®" developed by the NTT Group. URL: https://group.ntt/jp/group/nttgxinno/

"NTT G×Inno" is a registered trademark of Nippon Telegraph and Telephone Corporation. It is an abbreviation for "NTT GX (Green Transformation) × Innovation," an initiative where the NTT Group creates innovation in the GX field through the provision of solutions to society, contributing to the realization of carbon neutrality by 2050.

Other product names, company names, and organization names are trademarks or registered trademarks of their respective companies.

[Inquiries regarding this matter] NTT DATA Corporation Financial Innovation Division, Global Customer Success Office BCX Supervisory Department, Business Creation Section Kurosaki, Ide, Kubota, Tabuchi E-mail: fih-cs-@hml.nttdata.co.jp

Consulting Services Division Sustainability Service & Strategy Promotion Office Yoshida, Amano E-mail: mis-mfg3-green@kits.nttdata.co.jp