Japan's Green Initiative


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  • Introduce the project and the team members
  • Japan's Green Initiative

    1. 1. Japan’s Green Initiative Japanese Business Institutions Professor Nakamura Final Presentation – 17.03.08 Gee Chuang Jun Geun Kim Michael Markovich Yuzuru Tsukui
    2. 2. Agenda <ul><li>Background </li></ul><ul><ul><li>Why focus on Environmental concerns? </li></ul></ul><ul><ul><li>History of Environmentalism in Japan </li></ul></ul><ul><ul><li>Japan Environmentalism Today </li></ul></ul><ul><li>Japan Company Cases </li></ul><ul><ul><li>Toyota </li></ul></ul><ul><ul><li>Nikken Sekkei </li></ul></ul><ul><ul><li>Ricoh </li></ul></ul><ul><ul><li>Sony </li></ul></ul><ul><li>Summary </li></ul><ul><ul><li>Profit motive AND being Green </li></ul></ul>
    3. 3. Background
    4. 4. Why focus on GREEN ? <ul><li>1) Governments are joining to push legislation and requirements for environmental consciousness </li></ul><ul><li>3) Companies not complying with the movement will become targets </li></ul>2) Consumers perceive GREEN and organic products as high value and will pay premium prices The most successful companies will lead the green effort and benefit from the inelastic consumer demand
    5. 5. History of Japan Environmentalism <ul><li>Government Regulations </li></ul><ul><li>  The environmental element of the social movements and political </li></ul><ul><li>activism of the 1960s and early 1970s were manifest most strongly in </li></ul><ul><li>Japan by local citizen groups that pressured the government to pass </li></ul><ul><li>some world’s most strict pollution law. </li></ul><ul><li>The nature of Japanese environmentalism </li></ul><ul><li>Japanese environmentalism differed from the western movement </li></ul><ul><li>in that it sought to safeguard the environment in order to protect man </li></ul><ul><li>rather than save the environment for its own intrinsic value. </li></ul>
    6. 6. History of Japan Environmentalism Toyota produced the Prius ( its first hybrid vehicle ) 1997 World Environmental Conference at Kyoto for “Kyoto Protocol” 1995 First “Oil Shock” led Japanese company to avoid the high dependence on energy and focus on the improvement of its technology. 1973 “ Environmental Pollution Diet Session” : Enactment or Amendment to fourteen environmental laws 1970 Special Law on Bailout of the Victims of Environmental Pollution 1969 Niigata Minamata Disease victims identified 1965 Law to Control Emission of Smoke and Soot 1962 Many asthma patients observed in Yokkaichi city 1961 Incidents Year
    7. 7. Japan Environmentalism Today <ul><li>Japan is leading in environment protection </li></ul><ul><ul><li>Japan outnumbers other countries in ISO 14001 certifications which is related with environment protection </li></ul></ul>
    8. 8. Japan Environmentalism Today <ul><li>Many NGOs and consumers monitor Japanese companies </li></ul><ul><ul><li>‘ Environmental Ratings’ is issued by NGO organization each year to help consumer’s choice </li></ul></ul>
    9. 9. Green Cases
    10. 10. Case: Toyota <ul><li>What is the company doing that is Green? </li></ul><ul><ul><li>Background on Green initiatives </li></ul></ul><ul><ul><li>In 1960, the atmospheric pollution occurred while the </li></ul></ul><ul><ul><li>environmental problem were getting focused on, and the issue </li></ul></ul><ul><ul><li>which the automotive manufacturers faced was to produce </li></ul></ul><ul><ul><li>the car with technologies for less carbon dioxide emissions. </li></ul></ul><ul><ul><li>The Sustainable Plant Activities </li></ul></ul><ul><ul><li>Toyota is taking a approach to energy and global warming issues </li></ul></ul><ul><ul><li>by promoting measures to reduce CO2 emissions both in the </li></ul></ul><ul><ul><li>development and design stages as well as during production and </li></ul></ul><ul><ul><li>logistics. </li></ul></ul>
    11. 11. <ul><li>Concept of and Basic Requirements for Sustainable Plants </li></ul><ul><li>The term “sustainable plant” refers to the concept of a plant that </li></ul><ul><li>fully utilizes natural resources , while existing in harmony with the </li></ul><ul><li>natural environment. </li></ul><ul><li>‐   Achieving this depend on three things </li></ul><ul><li>1) Using renewable energy </li></ul><ul><li>2) Afforestation at plant sites to conserve local ecosystems and contribute to the local community. </li></ul><ul><li>3) Energy and resource conservation activities. </li></ul>Case: Toyota
    12. 12. <ul><li>What kind of value is created ? </li></ul><ul><li>How should the company sell this? </li></ul><ul><ul><li>Bring to other countries? </li></ul></ul><ul><ul><li>Use for marketing of products? </li></ul></ul><ul><ul><li>Sell to other companies? </li></ul></ul>Case: Toyota
    13. 13. Nikken Sekkei <ul><li>World’s leader in sustainable architecture and engineering </li></ul><ul><li>Low carbon footprint in both construction and operation </li></ul><ul><li>Optimize energy consumption and water conservation </li></ul>Pola Museum of Art Kanagawa Tokyo Midtown Tower Roppongi
    14. 14. Successes <ul><li>Contracts totaling US$1.25 billion in UAE and Saudi Arabia </li></ul><ul><ul><li>Extremely warm, resource scarce climate </li></ul></ul><ul><ul><li>56 percent reduced energy consumption </li></ul></ul><ul><li>IBEC Sustainable Architecture Prize Institute for Building Environment and Energy Conservation </li></ul>Burj Dubai UAE Toyota Motors HQ Japan Kansai Electric Power HQ Japan
    15. 15. Value and Strategy Client Values and Motives Nikken Sekkei Strategy Marketing, Corporate Responsibility Premium Recouped by Savings Established Initiatives Building Codes and Regulations Portfolio and Proof of Concept Urban Planning and Consultancy Leading Technology and R&D Design and Engineering
    16. 16. Case: Ricoh <ul><li>General Information </li></ul><ul><ul><li>Office product solutions provider founded in 1936 </li></ul></ul><ul><ul><li>Net Sales : 2,068.9 bil. Yen </li></ul></ul><ul><li>Capital :135.3 bil. Yen </li></ul><ul><li>No. Employees : 81,900 </li></ul><ul><li>Environmental Award </li></ul><ul><ul><li>AAA Environment Ranking (Only Toyota & Ricoh) </li></ul></ul><ul><ul><li>Gold Medal from World Environment Center (first Asian company) </li></ul></ul><ul><li>Product Line </li></ul>
    17. 17. Case: Ricoh <ul><li>Ricoh developed the concept of Environment Protection into Environmental Management </li></ul><ul><li>Ricoh measures environmental impacts of its business and evaluates improvement made and sets next targets </li></ul>Passive Stage Countermeasure against regulations Proactive Stage Take voluntary activity with sense of responsibility Responsibility Stage Shows results of environmental management while making profit
    18. 18. Case: Ricoh <ul><li>Every single environmental impact is measured and improved </li></ul>
    19. 19. Case: Ricoh <ul><li>Environmental Management is source of innovations </li></ul><ul><li>Consumes less energy and papers with one machine </li></ul><ul><li>Receive fax through e-mail to save energy and paper </li></ul>Sustainable Business Opportunity
    20. 20. Case: Ricoh
    21. 21. Case: <ul><li>General Information </li></ul><ul><ul><li>Electronics company based on Tokyo, Japan </li></ul></ul><ul><ul><li>Company Data (as of March 31, 2007) </li></ul></ul><ul><li>Net Sales : 70.513B USD </li></ul><ul><li>Number of Employees : 328,645 </li></ul><ul><li> Net Income: (29)% decrease since 2005 </li></ul><ul><li>Green Initiatives </li></ul><ul><ul><li>Green Management 2010 </li></ul></ul><ul><ul><li>Member of EICC group; for “green procurement” </li></ul></ul><ul><ul><li>Active participant of Green Cycle </li></ul></ul>
    22. 22. Case: <ul><li>Sony also is a joint pioneer in green supply chain through the Electronic Industry Code of Conduct </li></ul>
    23. 23. Case: <ul><li>Sony also has a strong commitment to recycle and continues to monitor their emission levels </li></ul>
    24. 24. Case: <ul><li>However, Sony’s efforts are going to waste as consumers and advocates are failing to differentiate Sony from its category </li></ul><ul><li>Example: </li></ul><ul><li>Greenpeace gave Nintendo a rating of ‘0’ for its efforts </li></ul><ul><li>Greenpeace launched the Clash of the Consoles video – championing a “race” to create the greenest game console </li></ul><ul><li>Greenpeace addressing all three companies as one </li></ul>SONY must distinguish themselves as a GREEN category leader
    25. 25. Recommendations <ul><li>Expand recycling program to consumers – consumers can turn-in used products to recycle for credit </li></ul><ul><li>Use Advertising to separate from Nintendo </li></ul><ul><ul><li>Change “sleek, cool” message concerning image of products and explain eco benefits </li></ul></ul><ul><ul><li>Re-package products to exemplify Green stance </li></ul></ul><ul><ul><li>Make Greenpeace an ally – invite for facility tour </li></ul></ul><ul><li>Link policies with AAA Japanese companies </li></ul><ul><ul><li>Partner with GREEN leaders Toyota, Ricoh </li></ul></ul>
    26. 26. Summary
    27. 27. Project Summary <ul><li>Japan is a leader in environmental awareness and green initiatives </li></ul><ul><li>Profitability and conservation are not a zero-sum game </li></ul><ul><li>Cases: Toyota, Nikken Sekkei, Ricoh, Sony </li></ul><ul><li>Identify profitable green business models and strategies </li></ul>
    28. 28. Questions ??