CNUD Launches! Creating the "Shibuya Model" for Decarbonization

──First, please introduce yourselves.

Kubota: I work as a consultant at Shibuya Future Design. Shibuya Future Design is a general incorporated association established in 2018 with funding from Shibuya Ward. We aim to solve various social issues through open innovation by gathering the ideas and talents of the diverse people who gather in Shibuya, transcending boundaries, through collaboration between industry, government, academia, and citizens.

Saza: I serve as the Representative Director of SWiTCH. I served as coordinator for "Mock COP26," established in July 2020 by young people worldwide concerned about climate change, and presented "18 Policy Proposals" to COP26 and world leaders. After shifting my focus to Japan, I co-founded SWiTCH with like-minded individuals in 2021. SWiTCH is a platform to halt global warming and build a sustainable society.

Kakutani: I support corporate business transformation at Dentsu Inc.'s Business Transformation Division. I also develop frameworks for companies to collaborate in advancing carbon neutrality.

Mimura: I support the business growth of startups at Dentsu Inc.'s Startup Growth Partners organization. I think daily about how startups can scale their businesses with limited resources, also leveraging Dentsu Inc.'s corporate network.

──Please tell us about the background to establishing CNUD.

Kubota: The impetus was wanting to create a space in Shibuya for sharing information on decarbonization across industry boundaries. First, we approached SWiTCH, which has an office in Shibuya. Mr. Saza is a leading figure among young people globally tackling global warming. We believed collaborating with SWiTCH would enable cross-generational discussions toward decarbonization.

Saza: Observing Japanese companies' decarbonization efforts, I often sensed a desire to act, but many didn't know where to start. I believed collaboration between industry, government, and academia could spark concrete action, so I decided to join.

Kubota: Initially, we gathered various companies for a study group called the "Shibuya COP Academy." However, we realized it wasn't enough to just hold study sessions; it was crucial for companies to organically connect and take action together. So, Shibuya Future Design and SWiTCH became the secretariat and launched CNUD in 2023.

──Why did Dentsu Inc. decide to participate in CNUD?

Kakutani: We believed Japan's decarbonization pace couldn't accelerate without cross-industry and cross-generational collaboration. Working regularly with global companies, we keenly felt Japan's decarbonization lag. The EU, for instance, seems to have been seriously tackling decarbonization since the 2015 Paris Agreement adoption. In contrast, Japan only started moving, both government and private sector, after former Prime Minister Suga's 2050 carbon neutrality declaration in 2020. Compared to the world, we started five years late.

Saza: That's exactly right. Japan is the world's fifth-largest CO2 emitter. The world is watching how we solve this challenge. In 2023, UN Secretary-General António Guterres even used the term "boiling planet" – the Earth is in a critical state. I also feel Japan's decarbonization pace is slow.

Kakutani: When speaking with global companies, it becomes clear that Japan is viewed internationally as a laggard in decarbonization. Yet, according to a domestic awareness survey, a surprisingly large number of people in Japan believe "Japan is among the top one or two countries globally in terms of environmental awareness and action." There's a significant gap between how Japan sees itself and how it's perceived overseas.

Saza: One reason for this gap is the very limited amount of international information about decarbonization and sustainability reaching Japan. The language barrier is indeed significant. While Japan has many good initiatives toward decarbonization, they remain largely unknown overseas.

Kakutani: One reason information isn't shared globally might be that Japanese companies hold a mindset like "modesty is beautiful." They don't widely publicize their own initiatives. This contrasts sharply with overseas companies, who consider presenting big visions a given.

Saza: That's right. Many Japanese companies want to communicate only after achieving 100% success, whereas in Europe and the US, they first set ambitious goals and then figure out how to get there. At CNUD, we also want to consider how to communicate effectively with the world.

──It's said Japan's decarbonization efforts lag behind the world. How are Japanese companies approaching this?

Kakutani: Companies approach decarbonization management in various ways, but we consider it in four steps. The first step is consultation. We calculate CO2 emissions and create a roadmap specifying how much to reduce and by when. The second step is reduction. This step involves reducing CO2 emissions according to the roadmap. Methods include switching from gasoline vehicles to electric vehicles or replacing office electricity with solar power. However, this alone won't achieve zero CO2 emissions across the entire supply chain. Therefore, the third step requires carbon offsets. While this step is commonplace overseas, carbon offsets, including J-Credits, have yet to gain widespread adoption in Japan. The fourth step is communication. Companies disseminate information about their initiatives through public relations and advertising.

──What challenges do Japanese companies face in these efforts?

Mimura: In my work developing carbon-neutral business initiatives, I often consult with companies about their stance and sustainability efforts. I consistently see limitations when companies try to tackle this alone. For example, Dentsu Inc. excels at communication but cannot handle reduction or carbon offsets. Consultations are often handled by IT firms or consulting companies, but even these firms cannot cover all four stages.

Kakutani: Large corporations often have separate departments for calculating CO2 emissions, procuring renewable energy, and advertising communications. They also work with different external partners for each area, leading to internal inconsistencies. This prevents them from achieving integrated, agile decarbonization management. We must abandon the idea of advancing decarbonization within a single industry or company. Instead, we need an "All Japan" mindset to form cross-industry alliances.

We want to create a "Shibuya Model" for decarbonization

──What kind of organization is CNUD?

Kubota: It's a consortium where various entities—from large corporations to startups, government agencies, and schools—collaborate to advance decarbonization. Membership in CNUD is free. As of February 2024, 30 companies are members. Many startups are environmental firms, while others represent diverse industries.

──What kind of activities do you conduct?

Saza: We began full-scale activities in 2024. In January, we held a startup pitch event. Eight startups took the stage to present their businesses and how they plan to utilize Shibuya.

Kubota: Among the startups presenting this time was one promoting decarbonization in e-commerce delivery through reusable packaging materials and an operational system to manage them. This service has been adopted by apparel companies in Shibuya. Another startup provides a biomass recycling system and collected verification data in Shibuya Ward. Other diverse companies included one aiming to reduce food loss with patented vacuum technology, one building resource circulation infrastructure by collecting, sorting, and redistributing unwanted clothing, and one trading carbon credits.

Startup pitch session. Speaker: Masaya Yomaru of Welism. Welism is a startup specializing in branding. He stated that the carbon credit market would gain greater attention if, rather than merely buying and selling forest-derived carbon credits, companies and local governments collaborated to create them, thereby protecting forests and the organisms inhabiting them.

Saza: We plan to continue holding these pitches regularly. We also aim to regularly share global case studies and host information exchange sessions.

──What is the significance of advancing decarbonization efforts with Shibuya as the stage?

Saza: One major characteristic of Shibuya is that it's a commercial hub and a city of consumption. Advancing decarbonization here connects to rethinking the future direction of consumption. Furthermore, as a place where diverse cultures converge, it holds potential for generating new messages and value around decarbonization. Shibuya is also globally recognized. Creating a sustainable city here would be highly symbolic.

Kakutani: When people think of environmental leaders, Denmark often comes to mind. This is largely because Copenhagen is perceived as the city globally most advanced in decarbonization efforts. They've implemented ideas like creating parks from hospital waste through upcycling, building dedicated bike lanes, bridges, and rail cars to promote cycling for commuting and school travel, and continuously turning decarbonization concepts into reality. Other cities have started adopting Copenhagen's policies. It would be ideal if Shibuya became Japan's leading sustainability hub, sharing its initiatives as the "Shibuya Model" with other cities and the world.

Mimura: Since Shibuya is also a place where many people come to enjoy themselves, we want to provide opportunities to think about environmental issues in a relaxed way and create initiatives where people can experience this.

Saza: Exactly. I think a campaign that doesn't push the environmental aspect too hard, but instead gets people excited from a different angle, would be very Shibuya-like. It would be great to create initiatives that people who aren't currently engaged with environmental issues can easily participate in.

Kubota: I want to create campaign-style initiatives centered around Shibuya × young people. Without that, it won't become part of the culture. It would be great if Dentsu Inc. supported the creative side and inspired Shibuya's youth.

Mimura: Shibuya Ward has the advantage of facilitating collaboration between industry, government, and academia, so we want to try various things.

We want to expand the industry-government-academia network

──What activities are you considering going forward?

Kubota: I see Shibuya not as a place where companies compete to decarbonize, but as a field for co-creation and coexistence. However, simply gathering companies won't resolve conflicting interests. CNUD aims to support designing processes that advance decarbonization.

Shibuya Future Design brings together over 100 partner and member companies. We want to involve many more companies in CNUD and significantly expand the network. Furthermore, we have connections with the University of Tokyo, Keio University, and universities in Shibuya Ward, and we want to collaborate with them.

Saza: SWiTCH hosts dialogue sessions inviting sustainability frontrunners and visits schools to teach sustainability classes to students from elementary through high school. Through these activities, many students consider what social actions they can take and engage in activities outside school. Additionally, environmental experts from academia, companies, and startups both domestically and internationally have shown interest. We are considering how to connect Shibuya by leveraging the networks of such individuals.

Kubota: Shibuya has many advertising screens, venues, and the communication power of a symbolic Japanese city. However, the high cost of even a single advertising screen is an issue. We want to explore ways to communicate while keeping costs down, collaborating with companies participating in CNUD.

Saza: I believe Shibuya can become a model case for how private entities and government can collaborate within a city, while also engaging citizens.

Kubota: We'd be delighted if many companies and organizations would join CNUD.

For inquiries, please contact:
[dentsu carbon neutral solutions Business Development Unit Secretariat]
cn-business-development@dentsu.co.jp

For startups:
【dentsu Startup Growth Partners】
https://dentsu-sgp.com/
 

Filming Support: SHIBUYA QWS (Shibuya QWS)