Dentsu has signed two Virtual Power Purchase Agreements (Virtual PPAs) for its Japan operations, committing to long‑term procurement of renewable “environmental value” tied to newly built solar projects. The deals — with HEXA Renewables Japan and JDC Green Energy — together represent about 2 million kWh of renewable environmental value per year and support new generation set to start operating in 2027. Dentsu says these are the first Virtual PPAs in Japan’s advertising industry.
What Dentsu agreed and when
Both contracts buy renewable attributes (for example, renewable energy certificates) rather than physical electrons. According to the company, the two projects together should supply environmental value equal to roughly 2 million kWh annually and are structured to deliver “additionality” by supporting new generation facilities.
Project details released by dentsu show the HEXA Renewables Japan facility is planned to start in May 2027 with 800 kW of capacity and an estimated 1,000,000 kWh/year of generation. The JDC Green Energy project, an agricultural solar installation, is scheduled to start in January 2027 with 445.5 kW of capacity and roughly 1,000,000 kWh/year.
Dentsu expects the environmental value to be allocated to its offices in Japan and estimates the agreements will reduce CO2 emissions by about 850 tons annually. The company frames this procurement as representing approximately 3.2% of the Group’s total electricity consumption based on 2025 figures.
Why this matters for marketers and agencies
Virtual PPAs are a standard corporate instrument for scaling renewables while ensuring additionality. For marketing, procurement and sustainability teams, long‑term attribute purchases like these matter because they underpin stronger claims about renewable sourcing and can feed verified Scope 2 reporting when attributes are clearly allocated.
Two features of dentsu’s agreements are especially relevant for communications teams. First, dentsu explicitly plans to allocate the environmental value to its Japan offices — a practical choice that affects how the company reports on corporate electricity use. Second, some sites covered by the agreements are agricultural solar plants that repurpose abandoned farmland. At those sites, dentsu notes that sakaki (a native evergreen often used in Shinto rituals) is being cultivated beneath panels; this combination of land reuse and generation gives programmatic sustainability narratives an on‑the‑ground example to cite.
The transactions use DIGITAL GRID Corporation’s trading platform to transfer electricity attributes, reflecting the growing role of specialist platforms in Japan’s corporate renewable market.
Implications and what to watch next
For agencies, holding companies and client brands, dentsu’s Virtual PPAs set a practical precedent: agencies can now point to sector peers using multi‑year attribute contracts to meet RE100 and SBTi‑aligned goals. Dentsu is a RE100 member and has SBTi‑validated targets; the company positions these PPAs as a concrete step toward those commitments for its Japan operations.
Key items to monitor: whether other major agencies follow with similar deals; how Japan’s market and regulation for renewable attributes evolve; and the projects’ actual delivery once they enter operation in 2027. The release contains forward‑looking estimates, so timelines and generation figures may change as projects reach commercial operation.
Practical next steps for procurement and sustainability teams
If you manage renewable sourcing or agency sustainability, treat this as a checklist: evaluate multi‑year attribute contracts as part of your procurement toolkit; plan clear internal allocation rules for environmental value; and assess platform partners that handle attribute trading and settlement. Watch project delivery closely — credibility for communications and reporting depends on verified generation and attribute retirement.
These agreements show that virtual PPAs are now a viable instrument for advertising‑sector firms in Japan. The immediate question for the market: who follows?
