“We don’t believe that renewable energy will be able to cover appreciable portion of Japanese demand in the foreseeable future. The cost would be immense.” – why an energy supplier tries to reduce demand and how people from different backgrounds can team up for improvements.

Yoshiyuki Tsuji, Group Manager Environmental Administration Group Environmental Department, Shigenori Maeda & Takafumi Masaki, Environmental Administration Group Environmental Department, Tokyo Electric Power Company, Tokyo, Japan

TEPCO is the largest Japanese electric utilities company with a production of 286.7 TWh in 2004, representing one-third of the national total of Japan and comparable to the size of the whole production of Italy. The company has 38,510 employees and has committed itself very early to the preservation of the environment and to social engagement. Multiple activities like reforestation, prevention of air pollution, protection of water quality, recycling of industrial waste, prevention of global warming (reduction of CO2 emissions) and a variety of social initiatives demonstrate TEPCO’s commitment in practice and have brought them the number seven worldwide rating in the Fortune Magazine’s Accountability rating 2005.
Yoshiyuki Tsuji explained to us that nuclear power - 33% of energy mix in 2004 - will stay the major energy source within the next decades because it can assure a stable supply (24h, 365 days) of energy, it does not emit CO2 and it is cost competitive power source in Japan, a country where wind energy is too expensive due to a restriction of useable land and the generally steep seafloor, and the provision of solar energy is neither stable enough nor can it be provided in sufficient quantity. As the discussion about the use of nuclear power, especially about its long-term consequences, is a hot topic not only in Europe but also in Japan, the commitment of TEPCO in this field will provoke interesting discussions with stakeholders in the future. Hopefully these discussions will be based on figures & facts and not only on emotional argumentation. In its sustainability report 2005 and other statements TEPCO started a dialog with stakeholders. This is a good beginning for a solid and transparent discussion about these important issues.

Enjoy reading some of the things we discussed with TEPCO in the following lines. You might read more about these discussions and thoughts in our book “MyImpact”.

Selected quotations of Yoshiyuki Tsuji:
“Sometimes people have unrealistic expectations. They want clean energy but no current technology can provide enough renewable energy to cover the whole demand at reasonable cost. And I don’t think it would really be accepted if people are asked to use much less energy.”

“We are also trying to influence the demand side of the energy market. We promote more efficient use, help develop energy-efficient household appliances and hot water supply. Hot water accounts for around 30% of household energy usage. In a sense these efforts go against our business.”

“We don’t believe that renewable energy will be able to cover appreciable portion of Japanese demand even in the foreseeable future. I once calculated the financial model for decentralized supply of an island with renewable energy. The costs would be just immense. Because Japanese land is mountainous and the surrounding seafloor is rather steep, our country is not well equipped to produce and distribute this kind of power.”

“Sustainability and Corporate Social Responsibility should be incorporated in the management of a corporation.”

“I enjoy the dynamics of the job, the permanent change, the need to be always sensible to the development of society.”

Selected quotations of Shigenori Maeda:
“Working in the environmental department gives me a good understanding of the interconnections that exist. I see the whole company context and not only one small piece.”

“We buy solar power from consumers at the sales price of our energy and distribute it through our grid.”

“The power grid in Japan is different to the European; it somewhat looks like a fish bone rather than like an interconnected network. This makes the input and redistribution of decentralized energy production more challenging.”

Selected quotations of Takafumi Masaki:
“We believe that nuclear power is the best combination of economic and ecological efficiency that we have available now. It will also be the most important source in the future replacing burning of fossil fuels.”

“We invest in neutralisation of our own CO2 emissions by reforestation. This is more cost-effective in Australia than in Japan.”

“Since the environment in our operations and market has so many different areas, our environmental department of around 100 employees has people from very different backgrounds. The different types of expertise are necessary to understand and solve the issues.”

Some background on Yoshiyuki Tsuji:
Yoshiyuki Tsuji has a law degree and his first job at TEPCO concerning the environment was the engagement in legal disputes around environmental issues with local residents. This increased his interest in the topic quite a lot. After nearly five years in the legal section, Mr. Tsuji transferred to TEPCO’s Environmental Department where he held different positions. Today, Yoshiyuki Tsuji heads one of the department’s groups, the Environmental Administration Group.

Some background on Shigenori Maeda:
After his graduation in ecomomics Mr. Maeda started working for TEPCO in a branch office. After 6 years he joined the PR and Corporate Communications Department and worked on the production of commercial films for the company.
When the company entered a joint venture with a hotel resort, Shigenori Maeda worked there as an interpreter of nature, a guide to the guests, especially focusing on bird watching. His passion for nature and the environment led him to the Environmental Administration Group in the Environmental Department in April 2005.

Some background on Takafumi Masaki:
Masaki Takafumi holds a degree in Economics and he joined TEPCO in 1998. Like most graduates starting in the company, he first spent a couple of years in a branch office, in his case at a service station. Since he always wanted to work on the commercial side and improve the tactics of the company, he took the opportunity to join the Environmental Administration Group in 2001. His work was mainly focused on preparing and producing TEPCO’s environmental and sustainability reports and his special interest is nuclear power.

Some background on Tokyo Electric Power Company (TEPCO):
Since its establishment in 1951 TEPCO, Japans largest electric utilities company has fulfilled the mission of contributing to the social development and the quality of life through a stable supply of high-quality electricity, using an integrated power generation, transmission, and distribution system.
TEPCO is not only trying to improve the supply-side-management to reduce CO2 emissions - by improving the best mix of power sources and promoting natural energy sources with innovative funds -, but it is also taking care of the demand side by developing and promoting high-efficiency equipment, by establishing an ECO support-plan for households and by proposals for an eco-friendly life. Last but not least, it is engaged in international co-operations to assure that the targets of the Kyoto Protocol will be met. Apart from these environmental initiatives, activities were undertaken to further reduce air pollution, to increase the material recycling rate, to protect biodiversity and to improve the environmental accounting.
Concerning the social activities TEPCO made sure to improve the partnerships with all its stakeholders, especially by incorporating customer feedback into its services to build long-term relationships of trust. They also want to contribute by supporting science and environmental education for students, by enhancing disclosure of information for shareholders and investors, by respecting the rights of each employee and creating a lively working environment with the possibility for everyone to realize its full potential and by actively seeking mutual cooperation with Non-Profits, community interest groups and the international community.

If you would like to engage with the work of Yoshiyuki Tsuji, Shigenori Maeda & Takafumi Masaki or get to know more about TEPCO please visit www.tepco.co.jp/en/e-index.html,
or, for more specific opportunities, contact joanna.stefanska@myimpact.ch or wolfgang.hafenmayer@myimpact.ch directly.