Supporting corporate and organizational carbon neutrality across the Dentsu Group. The path to decarbonization starting with "dentsu carbon neutral solutions" (Part 1)

In recent years, interest in achieving "carbon neutrality" – the goal of reducing greenhouse gas emissions to net zero – has intensified globally as a response to climate change, accelerating efforts by both governments and companies. In Japan too, under the policy of "achieving net-zero greenhouse gas emissions by 2050," various industries and companies are strengthening their initiatives.

In response to this trend, the Dentsu Group has launched "dentsu carbon neutral solutions," a cross-group initiative to support client companies and organizations in their efforts toward a carbon-neutral society. We provide comprehensive support for advancing carbon neutrality, including consulting based on CO2 emissions measurement, execution of reduction measures and offsets, and communication to convey the value of these efforts and drive significant momentum.

While "Transformation SHOWCASE" previously featured an article announcing the launch of "dentsu carbon neutral solutions,"this time we interviewed Mr . Takeshi Araki, Project Leader at Dentsu Inc., and Mr. Takashi Fuji, who has long engaged with environmental and energy issues at Dentsu Inc. Over two installments, we delved into the details of "dentsu carbon neutral solutions."

A Project Bringing Together Energy Specialists

Q. "dentsu carbon neutral solutions" is primarily driven by the "Sustainability Promotion Office" (*) and "dentsu Team SDGs" within the Dentsu Group, supporting companies and organizations in their efforts toward a carbon-neutral society. What exactly are the "Sustainability Promotion Office" and "dentsu Team SDGs"?

Araki: Launched in 2021, the Sustainability Promotion Office is a department that promotes sustainability across the Dentsu Group through cross-functional collaboration, with three pillars: carbon neutrality, circular economy, and DE&I (Diversity, Equity & Inclusion). A key feature is its dual focus on both internal initiatives within the Dentsu Group and external engagement. When consulting with various organizations and companies on sustainability promotion, the fundamental question "What initiatives is the Dentsu Group undertaking?" becomes a crucial agenda item. To propose sustainability promotion measures to clients, I believe it is essential that we have a solid track record of our own initiatives.

Additionally, 'Dentsu Inc. Team SDGs' is an internal cross-departmental team that not only drives the Dentsu Group's own SDG initiatives but also disseminates SDG information to all stakeholders, plans and develops solutions, and supports business implementation.

"dentsu carbon neutral solutions" is one of the three pillars promoted by the Sustainability Promotion Office, specifically focused on carbon neutrality. It brings together the Dentsu Group's expertise to deliver solutions that are larger in scale and cover a broader scope within the carbon neutrality theme.

Q. Mr. Fuji, you joined this team from the Kansai Office. What prompted your involvement? Could you also describe your role within the team?

Fuji: For nearly the past decade, I've been involved in consulting and solution businesses for energy-related companies. Regarding energy, a major recent topic has been electricity liberalization. Consequently, Dentsu Inc. had an existing cross-organizational group called "DEMS" (Dentsu Energy Management Solutions), which gathered members well-versed in energy-related matters. As a core member of this group, I've tackled various challenges for client companies. Furthermore, over the past five years or so, I've also become involved in execution and consultation in the environmental field, starting with carbon neutrality. While I currently belong to the Next-Generation Urban Business Development Department within the Solution Design Bureau in Kansai, my work extends beyond the Kansai area to meet the needs of energy-related client companies nationwide.

Amidst this, I launched "dentsu carbon neutral solutions" together with Mr. Araki. In developing the solution map for this domain, we closely collaborate with members from group companies like Dentsu International Information Services (ISID), Dentsu Consulting Inc., and Dentsu Macromill Insight, Inc. We leverage the expertise of specialized teams to propose services unique to the Dentsu Group, exploring execution and consultation approaches.

Providing optimal solutions tailored to each company's status

Q. Could you explain the features of "dentsu carbon neutral solutions"? The steps from preparation to communication are systematically organized. What is the aim behind this?

Araki: Many companies offer carbon neutrality consultation or provide cutting-edge environmental technologies for execution. What sets the Dentsu Group apart is our ability to provide comprehensive support, including the final stage of communication and messaging. That's why "providing total solutions from preparation to messaging" is our most important point.

Of course, we can also customize solutions based on each company's specific status. Carbon neutrality challenges vary significantly by company. While the diagram above organizes the process into Consultation, Execution, and Communication, some companies actually lack sufficient internal communication—a critical step preceding consultation. A major feature is our ability to propose solutions from any angle, tailored to each company's status, not just following the diagram's sequential steps.

We also take a broad view of communication, an area where the Dentsu Group traditionally excels. For companies seeking to communicate their initiatives to society, or those wanting to deepen understanding among management, or even those where management is committed but employee buy-in is lacking, we propose internal communication strategies. Communication challenges exist in many areas, and we aim to leverage the Dentsu Group's strengths to contribute to solving them.

Services covering consultation through execution

Q. To give a very clear example, it makes perfect sense that the Dentsu Group handles communication and messaging, like producing commercials promoting decarbonization. However, hearing that the Dentsu Group also supports consultation and execution might surprise many people. How did you develop this approach to solution design and development?

Araki: The programs we organize under consultation and execution have also been built through various initiatives over time. We gained insights and inspiration, expanded our team within the group, and accumulated results together.

For example, one program, the "Consumer Survey on Carbon Neutrality," began as a fixed-point observation survey. This was because, as we embarked on our own carbon neutrality efforts, we lacked data on "how deeply carbon neutrality had penetrated consumers' lives." As data accumulated, we gained the ability to analyze how consumers perceive carbon neutrality and what portion of household spending can reasonably be allocated to carbon neutrality initiatives, broken down by industry and company. This enabled us to develop it into a consulting tool. This survey evolves in an agile manner, incorporating input from government and private sector stakeholders, and is overseen by carbon neutrality experts.

The "Carbon Neutrality Realization Support Consulting" program emerged as we accumulated results and realized, "We can actually do this." It began when we responded to a public solicitation from a local government. We were commissioned to address the challenge: "How should small and medium-sized manufacturing companies in the prefecture, such as those producing automobiles and ships, respond to carbon neutrality?" We partnered with ISID and ITID Corporation to provide accompanying support. Through this initiative, we gained a tangible understanding of the importance of invigorating communication within the supported companies and of actions that engage the front lines. Rather than offering generic consulting, it is crucial to promote internal communication linking management and the front lines, to create achievable actions through repeated dialogue with the front lines, and to build the internal systems necessary for this. Our "Carbon Neutrality Realization Support Consulting," which supports these efforts, is being developed as an important asset for the Dentsu Group.

Regarding execution, this may seem like the area least aligned with the Dentsu Group. Indeed, the Dentsu Group does not possess the technology to directly reduce CO2 emissions. However, we are advancing initiatives in collaboration with academia (universities and research institutions), including Mr. Fuji's work on Blue Carbon (carbon absorbed and stored by marine ecosystems). We are leveraging this network to connect with consultation and execution that harnesses the power of academia.

For example, with one university, we are exchanging ideas on utilizing captured CO2 while collaborating with a venture possessing "DAC technology" (Direct Air Capture) that recovers CO2 directly from the atmosphere. Research shows that higher CO2 concentrations increase the sweetness of vegetables, indicating that some sectors within agriculture, forestry, and fisheries actually require CO2. We are advancing initiatives based on the idea that we could potentially match companies wanting to use CO2 with those wanting to reduce it.

The Dentsu Group also possesses expertise in reducing CO2 through promoting the circular economy, so we are building execution plans while collaborating externally.

Fuji: While the Dentsu Group excels in communication and outreach, the comprehensive coverage from consultation to execution is a major strength of "dentsu carbon neutral solutions." Regarding carbon neutrality, we work with clients from the initial planning stages, and if gaps are identified, we also provide consultation. Rather than handling each process separately, we believe it's crucial to prepare holistically to enhance corporate value, leveraging the strengths of academia and startups. This integrated approach connects to solving client companies' challenges and ultimately drives carbon neutrality.

A major feature of "dentsu carbon neutral solutions" is not only providing one-stop support for achieving carbon neutrality through consultation, execution, and communication, but also proposing customized menus tailored to each company's status. Furthermore, insights gained through actual consulting, such as activating internal communication, are also reflected in these menus. In the second part of the interview, we will delve deeper into communication strategies utilizing behavioral economics (nudges) from among the many service menus.

*Information regarding the "Sustainability Promotion Office" in this article is current as of December 2022.