Accounting for Greenhouse Gas(GHG) Emmisions

Taikisha started to calculate the GHG emissions released from its upstream to downstream corporate operations in accordance with Scope 3 standard*1, an international standard for companies to calculate and report GHG emissions of the entire supply chain.
Taikisha received support related to supply chain GHG emissions given to individual companies and sponsored by the Ministry of the Environment, and calculated and disclosed GHG emissions in compliance with the "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain" set out by the Ministry of the Environment and the Ministry of the Economy, Trade and Industry. In addition, Taikisha has publicly released its efforts on the "Green Value Chain Platform"*2 provided by the Ministry of the Environment.
GHG emissions consist of scope1, scope2 and scope3 as shown below.

Conceptual Diagram of GHG Emissions Control in the Supply Chain

Grasping the Level of Scope 1 and 2 Emissions to Reduce CO2 Emissions

Companies are being required to reduce GHG emissions through business operations at construction sites and offices to help curb global warming.
Looking at Taikisha's GHG emissions in FY2019, Scope 1 emissions, which are direct emissions from combustion of fuels, etc., were 1,356 t-CO2, and Scope 2 emissions, which are indirect emissions from use of electricity, etc., were 1,329 t-CO2. Taikisha will continue to work on saving energy at construction sites and offices.

Breakdown of Scope 3 Emissions

Looking at Taikisha's GHG emissions in the supply chain for FY2019, Scope 3 emissions were 3,823,237 t-CO2, of which emissions from Category 11 (use of sold products) accounted for the largest portion at 93.2%. Considering that GHG emissions from the operation phase of the facilities Taikisha provides are largest across its supply chain, Taikisha will make greater efforts than ever to provide facilities and systems with high energy-saving capabilities.
In addition, Taikisha will further promote green procurement by cooperating with suppliers and continue to reduce construction by-products and to appropriately dispose of industrial waste, aiming to curb GHG emissions from production, transportation, and disposal of materials and to help conserve the global environment.

Scope1:0.04%,Scope2:0.03%,Scope3:99.93%。Category1:5.89%,Category2:0.03%,Category3:0.01%,Category4:0.57%,Category5:0.08%,Category6:0.11%,Category7:0.01%,Category11:93.2%,Category12:0.03%

Scope1

Emissions(t-CO2) 1,356

Scope2

Emissions(t-CO2) 1,329

Scope3

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Category Accounting methods Emissions amount(t-CO2)
Category 1: Purchased goods and services Calculated from (raw) materials procurement amount (in value terms) 225,200
Category 2: Capital goods Calculated from amount of capital investment 1,295
Category3: Fuel- and energy-related activities not included in Scope 1 or 2 Calculated from purchased amount of electricity and fuels 385
Category4: Transportation and delivery (upstream) Calculated from transportation costs accompanying procurement of (raw) materials 21,720
Category5: Waste generated in operations Calculated from amount of waste discharged by type 1,689
Category6: Business travel Calculated from travel expenses paid by mode of transportation 4,292
Category7: Employee commuting Calculated from transportation expenses paid to employees 390
Category8: Leased assets (upstream) included in Scope 1 and 2 emission calculation
Category9: Transportation and delivery (downstream) No relevant activities
Category10: Processing of sold products There are some products that are relevant, but calculations are ignored because their ratios in sales are extremely small.
Category11: Use of sold products Calculated from emissions from operation of facilities Taikisha provided, HFC leakage from equipment Taikisha provided, and estimated useful lives 3,567,200
Category12: End-of-life treatment of sold products Calculated from weight of main equipment by type 1,066
Category13: Leased assets (downstream) No relevant activities
Category14: Franchises No relevant activities
Category15: Investments Calculations are ignored because the validity of the category 15 estimates is low as a result of many portfolio companies not disclosing Scope 1 and 2 emissions and the impact of the category 15 estimates on the entire supply chain is small.

Total

Total of Scope 1. 2 and 3 3,825,922