From carbon neutrality to Science-Based Targets: Rakuten sets its sights on Scope 3 emissions for 2032

In 2023, Rakuten reached a major climate milestone: carbon neutrality for all of its business operations, including consolidated subsidiaries.

Now, Rakuten Group has expanded its climate goals beyond corporate boundaries to tackle emissions from up and down the supply chain. In November 2024, Rakuten’s environment team secured certification from the Science Based Targets initiative (SBTi), a globally recognized climate action organization that certifies realistic goals aligned with the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

From carbon neutrality to SBTi

“While working towards carbon neutrality across our group’s business activities in 2023, we simultaneously started examining group-wide goals related to climate change,” explains Yuta Ito, Vice Department Manager of Rakuten’s Environmental Management Promotion Department. “We wanted to communicate our environmental strategy in a way that is transparent and understandable for our stakeholders. That’s why we pursued SBTi certification.”

For Ito’s team, the SBTi certification is more than just a badge – it signals to investors, customers, and business partners that Rakuten is serious about tackling climate change.

“By obtaining SBTi certification, we can clearly communicate that Rakuten is committed to reducing greenhouse gases at a level compliant with the Paris Agreement,” Ito explains. “This certification also helps us build trust with our stakeholders, including customers, partner companies, local communities, and employees.”

Scope 3: The next frontier

Rakuten set the certified targets for the year 2032, aiming to reduce not only Scope 1 and Scope 2 emissions by 99.7% but also Scope 3 emissions by 30%.

While Scope 1 and Scope 2 cover direct emissions from business activities and energy supplied by other companies, Scope 3 covers all of a company’s indirect emissions. This includes those produced by business partners up and down the supply chain.

“Reducing emissions from other companies’ activities related to our business operations, which account for more than 90% of our entire supply chain, is a huge responsibility,” Ito says. “We operate more than 70 services, so mapping out our entire supply chain’s emissions was no easy task.”

With so many diverse services, pinpointing the most impactful areas for emissions reductions was a complex endeavor. Ito’s team worked closely with different divisions in the Rakuten Group to collect data and identify the biggest sources of emissions.

“To make a real impact, we need to understand exactly where our emissions come from,” Ito says. “We found that emissions generated during the purchase of goods and services and during product transportation and distribution account for a large proportion within our supply chain.”

Ito highlights several examples of actions Rakuten has already taken to engage suppliers, such as those of Rakuten Mobile. “In 2024, Rakuten Mobile redesigned the packaging for its mobile Wi-Fi router Rakuten WiFi Pocket Platinum, cutting its weight in half from 60g to 30g. This saves paper resources and reduces the energy and water needed for paper production.”

A future of AI and sustainability

Rakuten is also betting on the power of technology to generate new efficiencies across its business. AI, in particular, will play a fundamental role: “We’re utilizing an AI dispatch management system for product transportation. By optimizing vehicle routes, we expect the system to reduce travel distances by 15%* compared to conventional systems.”

Getting other companies on board with these efforts is a challenge unlike anything Rakuten has tackled before, Ito remarks.

“We have an enormous number of business partners, so we’re focusing our engagement on critical suppliers. Prioritizing companies that actively work on sustainability will be a key part of our approach,” he says. “We’re continuously improving how we measure our carbon footprint and strengthening our partnerships with suppliers to drive meaningful reductions.”

Rakuten Mobile, meanwhile, is leveraging AI tech to optimize its own energy consumption.

“We’ve developed AI and machine learning solutions that can cut power consumption by up to 20%,” Ito shares. “We’ve tested these in proof-of-concept experiments, and we plan to fully deploy the solutions in our commercial network in 2025.”

A strong position to effect change

Rakuten’s 2032 climate goals see it step outside of its corporate walls to engage external partners and potentially inspire change from Rakuten’s many customers.

“The Rakuten Group operates about 70 services, with over 2 billion users as of 2025,” Ito says. “As a company with such a massive ecosystem, we want to make it easier for people to make sustainable choices – whether that’s through our business practices or the services we develop.”

With a strong userbase and extensive network of business partners, Rakuten is uniquely positioned to make its mark on the fight against climate change. The journey may only just be beginning, but Ito and team are committed to leveraging technology, engaging Rakuten’s partners, and inspiring Rakuten’s customers to make a real difference.

Notes:

* This is based on the actual performance figures from the first month of operation for ‘Rakuten Mart’ and ‘Rakuten National Supermarket’ following the implementation of this logistics system.