Steps for the BETTER FUTURE：Wielding The Powers of Business to Decarbonize Our World

Japan has become a world leader in the development of advanced hydrogen technologies, but what needs to be done to promote widescale use of this element as a source of energy? How are businesses addressing this societal challenge? Sumiko Takeuchi is Senior Fellow, Member, Board of Directors, International Environment and Economy Institute. In this, the final installment of our three-part roundtable feature, she discusses those very questions with three employees from Mitsubishi Corporation.

Roundtable Participants

Sumiko Takeuchi (Senior Fellow, Member, Board of Directors, International Environment and Economy Institute Visiting Professor at University of Tsukuba and Tohoku University Co-founder and President, U3 Innovations,LLC); Keiko Usami (Head of Mitsubishi Corporation's Hydrogen and Carbon Management Team), Kazuto Ihara (Business Development in Japan and Asia for Mitsubishi Corporation's Hydrogen and Carbon Management Team), Shota Yakushiji (Business Development in Europe and the US for Mitsubishi Corporation's Hydrogen and Carbon Management Team)

—— What kind of hurdles stand in the way of hydrogen becoming a legitimate means of decarbonizing our societies?

TakeuchiThere are three main hurdles. Firstly, cost is a very important factor when it comes to energy. To consumers, energy is nothing more than a means to an end, and their decisions on where to obtain it will almost always be made based on price and supply stability. That is why suppliers must continue to make every effort possible to cut costs. Secondly, anyone who decides to introduce new infrastructure or technologies, such as hydrogen stations or fuel cells for example, needs to particularly conscious of safety and security. And thirdly, the value of hydrogen energy must be identified so that it can be offered as an appealing and viable option.

—— Can you elaborate more on the third point? What do you mean by value?

TakeuchiNowadays, businesses around the world are evolving into generators of value. Instead of offering consumers with just products or services, they are providing them with new value and customer experiences, and societies are adapting to appreciate those things much more than in the past. So the big question is what new value can energy provide us with, and that is a very difficult question to answer. Because many consumers see energy as just a means to an end, they see no big difference between where it comes from. For instance, whether their cars are powered by gasoline or hydrogen will not be a big issue for some people. However, society does provide us with a lot of hints on where that new value can be generated. Take the shipping industry. One problem there is that when trucks are idling to unload their cargoes, they emit exhaust and make a lot of noise, two things that tend to bother people. Switching to electric or fuel-cell trucks would probably solve that problem. If companies can identify those sorts of problems in their businesses, then they would be better prepared to create other kinds of value for customers who are not just concerned about decarbonizing, and hydrogen energy would likely become more widely used. I firmly believe that businesses have the power to reform societies, so I have great expectations for Mitsubishi Corporation.

UsamiWe understand those expectations and our responsibility to meet them. Here at Mitsubishi Corporation, our businesses are always based on the "future pull" philosophy. In other words, ensuring that our operations are driven by our future vision for growth and development. We know that in the years ahead, societal changes will obviously have a huge impact on businesses, but we are also determined to use our company's collective capabilities to help the world to decarbonize. Those capabilities are deeply rooted in so many industries and span upstream to downstream activities.

—— In your view, how should enterprises address decarbonization and other societal challenges?

IharaOur team often talks about that. In our opinion, the search for solutions to things like global warming will reveal new seeds of business. None of society's problems will be easy to solve, but our roles are to develop sustainable businesses and encourage customers to change their habits.

YakushijiExactly, and global warming is a good example. Japan's goal is to cut its greenhouse gas emissions by 46% of its 2013 level by fiscal year 2030. No one company alone is capable of making that happen. Companies and industries across the nation must dedicate their resources towards building sustainable businesses. I am confident that by leveraging its collective capabilities, Mitsubishi Corporation can work with both internal and external interests to help find the solutions that are needed.

UsamiThroughout its history, Mitsubishi Corporation has continued to adapt to change and develop businesses that meet needs in so many industries that support our quality of life. Finding solutions to societal problems is both our business and our mission. All of us will continue to share our vision and targets, and we will remain resolute in facing every challenge before us.

TakeuchiOur current target to go carbon neutral symbolizes more than an industrial revolution. There is still a long road ahead of us, so we must discuss these challenges seriously and continue to take steady, committed steps forward. Furthermore, these are not issues that we can afford to leave to others. According to the Law Concerning the Promotion of Measures to Cope with Global Warming, which was revised this past May, it will be private citizens who must lead the way. The most important thing for all of us to remember, is that whether we be businesses or individuals, we must consider these challenges as our own.