Meet the Team: Yuko Shimada

Meet Yuko Shimada, a member of Scrum Studio focusing on Climate Tech. After the Great East Japan Earthquake in 2011 when the Fukushima Daiichi nuclear disaster occurred, Yuko sensed a potential crisis in Japan’s energy security. Now, She’s working to support technological solutions that may help mitigate Japan’s energy security problems.

Yuko’s work focuses on three core areas: decarbonization, energy, and sustainability. Although these topics are important on a global scale, they are not yet front and center in Japan. However, studies predict that there will be increased opportunities for capital funding in areas like decarbonization in Japan.

After spending many years in finance and consulting across several companies, Yuko joined Scrum Studios to lead the team on Climate Tech. Yuko brings a passion for learning and solving problems. We sat down with Yuko to learn how her career path blossomed and hear about her experience as someone new to Climate Tech and early-stage investing.

The Impact of Climate tech echoes across fields and industries

Question: First, let’s talk about your job in Climate Tech at Scrum Studio. Can you tell us what Climate Tech is all about?

Yuko: At Scrum Studio, I focus on “decarbonization,” which is also known as “Climate Tech.” I believe Climate Tech is the next generation of technology and businesses that will eliminate or reduce greenhouse gasses, such as carbon dioxide (CO2), by 2050. However, achieving progress and making great returns on investment with Climate Tech will take some time, and it requires a large amount of capital, so investors in this area must have a long-term perspective.

Nuclear energy is a crucial asset in decarbonizing the energy sector in Japan. But since the Great East Japan Earthquake, discussions around nuclear power have become sensitive.

Solar power is an alternative. But again, Japan has limited land resources to be able to harness such power. Using solar power would also mean clearing forests and mountains, which can lead to landslide problems. Still, when we consider security, Japan’s energy supply structure is extremely vulnerable. This is why Climate Tech is important. Many startups are working with emerging technological solutions, like Climate Tech, to help solve these issues.

Solving Climate change problems using decarbonization in Japan

Climate Tech spans all areas of our lives and social activities. Think of the EVs and their battery technologies. Consider the software behind those electric vehicles. There are also food technological solutions like developing alternative meat. All these are important aspects of the equation.

For example, when cows eat grass, methane gas is produced which contributes to global warming. So plant-based meat alternatives are also a type of decarbonizing technology. We can also think of hydrogen-related technologies, including production and transportation, hydrogen cars, etc. And then there are technologies for capturing CO2 from the air.

Speaking of different technologies, I have been working with NFW at Scrum Ventures. NFW was recently a part of our SCRUM CONNECT 2023 event in Tokyo. They focus on creating alternative materials by combining plants and minerals for shoes, clothes, bags, car interiors, etc., which are conventionally made of leather and rubber.

As I mentioned, raising cows involves the production of large amounts of CO2. But in addition, people are becoming increasingly resistant to the idea of killing cows and using their skins. And while there is synthetic leather, a petrochemical product alternative, is not ethical when disposed of in the trash. NFW, on the other hand, is plastic-free and petrochemical-free so the materials are biodegradable. They already supply their solutions to numerous high-end brands including Ralph Lauren, Allbirds, New Balance, Patagonia, BMW, and Hyundai. I use shoes and business card holders made of this material myself. This is another example of Climate Tech.

Another American company, LanzaTech, which has grown into a major corporation, developed technology to obtain ethanol from the exhaust gasses produced by steel mills and oil refineries. They employ a proprietary microbial fermentation technology and have also succeeded in producing jet fuel from this ethanol. I find it fascinating that energy can be extracted from something that was previously thought of as waste or even from the CO2 it generates.

There are many other interesting projects. For example, Doconomy is also being evaluated to help reduce CO2 emissions. It involves visualizing emissions based on credit card payments to curb CO2 emissions. However, such innovations require time and money.

Exciting but challenging work at Scrum Studio

Q: In this context, what do you do at Scrum Ventures?

Yuko: My work here at Scrum Ventures focuses on managing our open innovation programs that encourage business co-creation between startups and Japanese corporations. I help corporations that aim to become carbon-neutral connect with the right startups. Additionally, we research market trends in the Climate Tech sector. This highly specialized field keeps me on my toes but provides exciting challenges every day.

For the open innovation programs, I periodically meet with Climate Tech startups to talk about their technological solutions, the specific problems they are trying to solve, and their progress.

Q: What is the right energy policy for Japan?

Yuko: The Great East Japan Earthquake left a profound impact on Japan, shaping the perceptions of millions of people. During the earthquake, I was not in Japan but was a student at Georgetown University in Washington, D.C. Despite being overseas, I collaborated with other schools to raise funds for the victims.

The disaster made me realize I didn’t understand the energy situation in Japan, how the country depends on energy imported from other countries, and the challenges of nuclear power generation in the country.

Driven by the desire to learn more about Japan’s energy security, I decided to go to Columbia University’s School of International Public Policy in New York. There, I majored in International Energy Policy and Management. Most of my classmates were from science and math backgrounds, engineers from energy companies, people from Japan’s Agency for Natural Resources and Energy who had formulated energy policies at the Ministry of Economy, Trade and Industry, and people from consulting firms, etc. I was overwhelmed by all these high-powered and highly educated people around me, but still, l managed to complete my program.

Building educational qualifications to understand Japan’s energy security

Q: Did you live abroad before university?

Yuko: I was born in Japan, but my father’s work made us move to the U.S. when I was 2 years old. We lived in Los Angeles until high school. I went to college at Georgetown University, which is known for its international politics and political science programs and has produced many politicians. I majored in international politics, which enabled me to delve into topics like the US-Spain alliance, Japan-Asia relations, Japan-China, and Japan-Korea relations. I wrote my thesis on the Senkaku Islands territorial dispute.

I chose graduate school because I was interested in Japan’s energy policy after the Great East Japan Earthquake. But, I also discovered that my lack of basic financial analysis and research skills was another area I needed to develop. Hence, I interned at the investment banking division of Citigroup Inc.

After graduation, I was offered a full-time position and started working there. Investment banking was demanding. But it taught me everything I know about doing business, including intense training in financial modeling and proposal preparation.

Next, I joined Deloitte Tohmatsu to work in energy and policy in the Natural Resources and Energy Advisory Division. There, I conducted overseas case studies and economic analyses related to institutional design for central government ministries and agencies. I also aided small and medium-sized companies in expanding their overseas business in energy-saving, renewable energy, and decarbonization technologies.

This phase also allowed me to travel to Cambodia, Laos, Myanmar, Kyrgyzstan, Uzbekistan, Mongolia, Ukraine, France, and many other countries. I worked tirelessly to make an impact on projects related to the public and energy domains. It was what I wanted and I was determined to prove myself.

After that, because I wanted to specialize in research, I got a job as an analyst for Moody. Moody is a US-based rating agency, covering domestic electric power companies, automobile companies, trading companies, and more. I spent many exciting but busy days there learning about the business areas of major Japanese companies in detail, analyzing their financial statements, and writing industry reports.

Life-changing opportunities at Scrum Studio

Q: Why did you choose to join Scrum Ventures?

Yuko: Moody’s was great. However, I was approached by Scrum to become a founding member of a studio program focused on Climate Tech. At first, I was surprised by the idea of being involved in VC or startups because I had no previous connection, but after a series of meetings, I came to understand Scrum Studio as a company.

In relation to energy policy and environmental issues, large organizations must go through numerous steps to make any changes. In contrast, startups can quickly shift or adapt to the ever-changing business landscape which I find exciting. That is why I joined Scrum Studio in November 2021.

Q: What do you hope to achieve in the future?

Yuko: Although we hear the term”‘decarbonization” a lot, it is not easy to achieve. Large organizations might make adequate changes but startups have higher flexibility and can make a major change quickly. I would like to use my experience and expertise to support the potential of startups via Scrum Studio.

The VC members in Scrum are young and courageous. They also have exceptional knowledge and insight. For this reason, I’m always eager to listen to the opinions of all members, regardless of age or position.

Climate Tech is about energy and biodiversity. I believe that the work of the Climate Tech field is to make many parts of our lives better. Many startups with great potential are beginning to grow, and many Japanese corporations are paying attention to us. We hope that you will pay close attention to Scrum’s future work in the Climate Tech field.