- ESG / Sustainability
Recruit HD earns top rating in CDP2022 Supplier Engagement Rating for second year in a row
Mar 31, 2023 | Recruit Holdings Co., Ltd.
Highly acclaimed for the company's efforts to address climate change issues throughout the supply chain
Recruit Holdings was rated as a top company on CDP's 2022 Supplier Engagement Rating (SER) and selected as a Supplier Engagement Leader for the second consecutive year by the London-headquartered international non-profit environmental organization. Climate change countermeasures are a central focus of Recruit Group's corporate activities, and the company aims to achieve carbon neutrality in greenhouse gas emissions (GHG) throughout its business activities and the entire value chain via group-wide initiatives.
CDP's annual Supplier Engagement Rating (SER) evaluates corporate supply chain engagement on climate issues, and the assessment is based on four key areas: Governance, Targets, Scope 3 Emissions, and Supplier Engagement. Recruit was again selected as a Supplier Engagement Leader and received the highest rating in the Supplier Engagement category, as per the previous year. Organizations included in CDP's 2022 Supplier Engagement Leaderboard were selected from the top 8% of companies that responded to the 2022 CDP Climate Change Questionnaire (total responses from 653 organizations, including 131 Japanese companies.) The scoring methodology focuses on how a company engages with its suppliers to address climate change.
CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. CDP was founded in 2000 and now works with 746 investors with over US$136 trillion in assets. It has been a pioneer in revealing the environmental impacts of companies and supports them in measuring and managing their risks and opportunities on climate change, water security and deforestation. In 2022, nearly 20,000 organizations disclosed environmental data through CDP, including 18,700+ companies representing half the global market capitalization and more than 1,100 cities, states and regions. CDP's global system for disclosure serves as the gold standard and has driven significant change over the past two decades.
About Recruit Group's Initiatives for Climate Change
In May 2021, Recruit Group announced its Commitment to Sustainability and set ESG (Environmental, Social, and Governance) goals for FY2030*1 with the aim of both contributing to a sustainable society and achieving sustainable growth for the Company. Among our commitments, we aim to achieve carbon neutrality in GHG emissions through our business activities in FY2021 and our entire value chain by FY2030 *2.
We expect to have achieved our short-term goal as planned by reaching carbon neutrality in the amount of GHG emissions throughout our business activities (Scope 1 and 2) in FY2021, primarily by switching to energy-saving and renewable energy-derived plans for our office electricity. (Accredited third-party assurance certification will be completed in March 2023.)
To accelerate our efforts to become carbon neutral in GHG emissions throughout the entire value chain (Scope 1, 2 and 3), we set a three-year reduction target*4 in June 2022 that aligns with the science-based 1.5°C pathway*3, an international framework that aims to limit the increase in global average temperature to less than 1.5 °C above that of the pre-industrial era.
In line with this three-year reduction plan, we are working with our partners in the value chain to reduce Scope 3 greenhouse gas emissions, which account for more than 90% of our Group's total emissions.
In addition, we will accelerate our efforts by linking the degree of achievement of the three-year target to a portion of the long-term incentive compensation for executives in charge of driving and realizing the target.
*1 In this press release, the term “FY” refers to Recruit Holdings’ fiscal year, and references to “FY” are to 12-month periods commencing in each case on April 1 of the year indicated and ending on March 31 of the following year.
*2 Greenhouse Gas (GHG) emissions throughout business activities are the sum of direct emissions from the use of fuels in owned or controlled sources (Scope 1) and indirect emissions from the use of purchased electricity, heat, or steam in owned or controlled sources (Scope 2). GHG emissions from the value chain are indirect emissions other than Scope 1 and 2 (Scope 3). The entire value chain represents the total of Scopes 1, 2 and 3.
*3 The GHG emission reduction target established in line with the science-based decarbonizing level of limiting global temperature rise to 1.5 ℃ compared to the temperature before the Industrial Revolution, which was reported by the Intergovernmental Panel on Climate Change (IPCC).
*4 Greenhouse gas emission reduction targets for actual results from FY2022 to FY2024.