Reducing the Environmental Burden in Agriculture

Environmental Considerations in the Agricultural Sector

Emissions from agriculture, forestry, and other land use account for about a quarter of global greenhouse gas emissions. Additionally, natural disasters such as typhoons, floods, and high temperatures are increasing year by year, causing serious damage to crops. The Norinchukin Bank is a financial institution grounded in the griculture, fishery, and forestry industries. As such, we will take initiative in helping to resolve these issues.

Supporting the Creation of Agriculture Carbon Credits

The Norinchukin Bank entered into a business partnership agreement with Faeger Co., Ltd. The purpose of this partnership is to support the creation of carbon credits in the agricultural sector to decarbonize the industry and increase profitability through these credits. Feager is the first startup in Japan to create agriculture carbon credits to support the decarbonization efforts of farmers and monetize the credits.
This business partnership agreement strives to decarbonize the agriculture industry by introducing a wide range of farmers to decarbonized agriculture (e.g., reducing reduction through rice field drying) and proposing the creation of carbon credits to generate revenue.

Decarbonizing the Agricultural Sector with High-Performance Biochar

The Ministry of Agriculture, Forestry and Fisheries (MAFF) Strategy for Sustainable Food Systems calls for the reduction of chemical fertilizer use made from imported raw materials and fossil fuels as a decarbonization measure.
The Norinchukin Bank entered into a business partnership agreement with TOWING Ltd. to expand sales channels for Soratan, a high-performance biochar.
Biochar is used typically as a soil improvement material. When used on agricultural land, biochar sequesters carbon in the soil and reduces GHGs in the atmosphere. TOWING developed and markets a high-performance biochar called Soratan. Soratan is made by adding soil microorganisms screened by the company to biochar (porous material), which is carbonized from plant and food processing residues generated in Japan. The biochar is then cultivated with organic fertilizers. TOWING also applies for and sells carbon credits created through carbon sequestration.
Through this business partnership agreement, TOWING aims to leverage its expertise in high-performance biochar, as well as the networks and knowledge of the Norinchukin Bank its business partners, to expand Soratan and achieve sustainable agriculture. TOWING is also exploring intermediating carbon credits created through the use of Soratan to food- and agriculture-related companies.
The Norinchukin Bank is committed to leveraging carbon credits to contribute to increasing producer income and reducing GHG emissions in the food and agriculture value chain.

GHG Measurement Support for Clients

Disclosing information on climate change is necessary to become a decarbonized society. Companies are required to take action to measure and reduce GHG emissions not only for themselves but for their entire supply chain.
The Bank will collaborate with companies that provide consulting services on matters such as measuring GHG emissions and supporting responses to CDP. In doing so, we will provide solutions for clients to decarbonize their businesses and help solve environmental and social issues.

Topics

Insetting Consortium

Offsetting emissions with carbon credits does not necessarily work only within value chains (VCs). Outside VCs, carbon credits can serve as a way to direct investments and support from midstream and downstream to upstream. In this case, however, the environmental value does not translate directly to a reduction or increase in the environmental burden for midstream and downstream enterprises. Consequently, to create environmental value and increase the flow of investment and support from midstream and downstream to upstream within a VC, the Bank is focusing on the concept of Łginsetting.Łh Insetting is designed to generate environmental value by getting companies to invest in and support upstream operations within their VC. As a result, the entire VC enjoys higher environmental value and other benefits. Together with supporting companies, in August 2024 the Norinchukin Bank established the Insetting Consortium, a collaborative framework for stakeholders aimed at expanding the use of insetting.
Using the Insetting Consortium and other means, and leading the formation of practices, we offer leader consulting to support infrastructure upgrades and environmentally conscious management for upstream operations. For midstream and downstream operations, we incorporate sustainable finance and TNFD disclosure support. Like this, we will promote the transition of VCs by strengthening and expanding the flow of investment and support from midstream and downstream to upstream.