Current Status and Future Prospects of Decarbonization Efforts throughout the Supply Chain

Taking a long-term perspective is critical to achieve carbon neutrality by 2050

There is a growing movement to standardize data and build a common platform internationally in order to achieve carbon neutrality by 2050. How do you think about the present situation?

Koshizuka: To put it simply, I feel that we are in a transitional period. When I look at the global efforts to achieve carbon neutrality, I think that the general direction of data visualization and utilization is identical. Specific approaches, however, seem to vary.

Globally, Europe is showing leadership and establishing various rules to achieve carbon neutrality under the Green Deal policy. The consortium is closely related to the World Business Council for Sustainable Development (WBCSD). The Partnership for Carbon Transparency (PACT), an initiative led by the WBCSD, is working to create a reliable method for calculating and exchanging product-level CO2 emissions data across the value chain and making it practical for society. In addition, the important concept of “data space” raised by Europe is also being actively discussed. Dataspace is a space where data can be linked and shared according to a common specification, and since it is also useful for visualization of CO2 emissions throughout the supply chain, we believe it is necessary to pay more attention to the discussions in the future.

My perception is that the situation in Japan is similar to that in Europe. The consortium is also focusing on efforts to visualize CO2 emissions throughout the supply chain, and it is necessary to ensure that these efforts are in line with national policies. In addition, data space is being actively discussed, and data sharing for automobiles and storage batteries has begun as the first use case. It is expected that the standardization of data and the practical application of data linkage infrastructures in society will progress in the future.

What do you think is important to promote further efforts in the transitional period?

Koshizuka: I think the important thing is to create data on CO2 emissions. CO2 is invisible and difficult to weigh. In order for the entire society to control emissions, it is essential to create data and to have mechanisms, technologies, and systems to exchange that data with each other.

I feel that it may be necessary to consider not only economic incentives, such as the positive impact of CO2 reduction efforts on a company’s business, but also disincentives, such as the disadvantages of not making such efforts.

Another important thing is to have a long-term perspective. When you hear the words “CO2 emissions reduction” or “decarbonization,” it is often difficult to think that it is something that is relevant to you. However, try to take a long-term perspective. Imagine 100 years in the future, and if the majority of cars on the streets are still running on gasoline and the majority of electricity is still generated by thermal power, everyone will wonder if that is a good future. If we take a long-term perspective, we cannot envision a future that is not carbon neutral.

Several decades ago, there was a social issue of the expanding ozone hole caused by chlorofluorocarbons (CFCs), which were mainly used in air conditioners. After that, as a result of steady efforts to abolish the use of CFCs, it is said that the ozone layer is now on the way to recovery. I think this shows the importance of having a long-term perspective. The impact of each individual human being or a single company is not small. It is important to have the will to achieve the goals by working steadily and continuously from a long-term perspective.

Initiatives of the Green x Digital Consortium and challenges recently observed

Please tell us about the efforts and achievements of the Green x Digital Consortium to date, as well as challenges that have been observed recently.

Koshizuka: The consortium has been working to visualize CO2 emissions throughout the supply chain. To achieve this, it is necessary for each company in the supply chain to calculate emissions using a common method and to link this data from upstream to downstream. In light of the situation where various companies are providing solutions for calculating CO2 emissions, we have been working to link the data using a peer-to-peer method so that they can be interconnected. We have already conducted demonstration tests using dummy data with multiple companies in the consortium and successfully confirmed the interconnection. The consortium used PACT Methodology(previously Pathfinder Framework)　and PACT Network(previously Pathfinder Network) as a reference to develop a CO2 visualization framework and technical specifications for data linkage, and based on these, specific calculation methods and technical specifications were formulated.

I feel that one of the issues observed in these efforts is the difficulty of calculation. In the CO2 visualization framework, the calculation method is explained with examples of specific cases, but international standards and global de facto standards are included in the base of the concept. For this reason, some parts may be difficult to understand for Japanese companies that are just starting to work on Scope 3 calculations. The environment for calculating large amounts of data and linking that data is being developed along with the evolution of digital technology. The common language, in other words, rules for making the best use of this data must be communicated to the companies in the supply chain.

Some companies feel that distributing data in the supply chain is risky. It is important to consider what kind of data would be accepted by society as useful for visualization and reduction. In other words, it is the perspective of reliability and validity. In addition, there is the risk management perspective of how data should be managed and passed on to ensure sufficient data linkage while maintaining confidentiality. Along with technological advancements in data handling, governance will also be an important topic.

We must not forget that what is really important is not the visualization of emissions data, but the reduction of emissions. In order to reduce emissions throughout the supply chain, it is important to identify hot spots with high emissions. Data is essential in order to take optimal measures for such hot spots. Based on this concept, it is vital to further discuss how to manage and utilize data that is effective in reducing CO2 emissions.

Three directions of the consortium—practical application in society, ensuring data reliability, and creating systems

Koshizuka: There are three major future directions. The first is to put the CO2 emissions visualization and technical specifications we have been working on to practical use in society. Many companies calculate CO2 emissions based on the methodology presented by the consortium. By linking that data through a solution designed to meet the technical specifications, we can clarify the CO2 emissions of the entire supply chain under a common language. We believe this will be a significant advance in reducing CO2 emissions. We are encouraging consortium member companies to promote the use of the solution and encourage them to spread the solution to their respective industries. As one specific effort to this end, in FY2024 we also held a seminar to explain Scope 3 calculations to practitioners as an educational project.

The second is to examine how Japanese industry can address this issue, based on domestic and international discussions on data distribution. It is important how to ensure the reliability of data in order to distribute data that includes CO2 emissions. The key is how to guarantee and verify the data, while also keeping a close eye on trends in Europe. The consortium will identify specific topics and areas of focus for discussion, while considering areas where cooperation among businesses can help data distribution.

The third is to create a system to promote medium- to long-term efforts by companies to achieve carbon neutrality. As I mentioned earlier, it is important to establish a system in which companies’ efforts to achieve decarbonization are appropriately evaluated by society and lead to some form of incentive. In 2023, the consortium launched a working group on the valorization of environmental activity data, and is currently organizing the concept and assessment points of products that are beneficial to the environment. The results will be announced by the consortium in 2025.

Leadership is required in the decarbonization throughout the supply chain

Efforts to reduce CO2 emissions and accurately calculate emissions data can be a burden for small and medium-sized enterprises (SMEs) in the supply chain. What measures would be needed to resolve these issues?

Koshizuka: The involvement of SMEs is an important issue that should be discussed within the consortium in the future. At the current stage, the CO2 visualization framework presents an emissions calculation method that allows companies of various sizes to participate. As we gradually expand the use of this framework starting with member companies, we believe that we will confront the issues that will emerge.

We also perceive that taking the first step is quite important. The consortium has been working on methods for calculating emissions and standardization of data formats and data linkage in order to reduce CO2 emissions throughout the supply chain. We believe that the time has come to discuss specifically how we can put these into practical use in society, how to take the first step, and who will lead from the front.

Against this backdrop, Fujitsu has begun working with 12 global suppliers, including SMEs, to decarbonize through inter-company data linkage of CO2 emissions using primary data.

Koshizuka: That is a significant and important effort. Such an effort is often divided vertically by industry, such as automobile, steel, shipbuilding, and chemical industries. Since efforts toward decarbonization are a global issue, they must be implemented on a cross-industry basis. The initiatives of Fujitsu and its 12 suppliers are conformance with the WBSCD/PACT Network (previously Pathfinder Network)framework as well as the Green x Digital Consortium framework and Technical Specifications for data Exchange. This makes it easy for both domestic and overseas suppliers to engage in the project by linking their data with each other’s solutions. This initiative has presented a generalized approach that many suppliers can participate in. We feel that this was the first step toward expanding the breadth and depth of the practice by increasing the number of suppliers participating in the initiative in the future.

What do you think is important for future efforts to reduce CO2 emissions throughout the supply chain, including further expansion of this initiative?

Koshizuka: I think leadership is important. Leadership may sound like a strong driving force in some country or some company. In decarbonization efforts, I do not believe that leadership should be limited to one country or one company. I believe that the area of the environment, including efforts to reduce CO2 emissions, is so new and so diverse that there is not yet an entity that knows everything about it. This is why I feel that some kind of leadership is needed, whether it be international frameworks, partnerships, organizations, associations, or other entities, to bring together a large number of expertise and knowledge, and to consolidate individual strengths into a larger force.

From the viewpoint that the time has come to put past efforts to practical use leveraging leadership, this collaborative effort between Fujitsu and 12 suppliers has great significance.

Finally, do you have a message for companies that do not take steps forward despite recognizing the importance of efforts to decarbonize their entire supply chains?

Koshizuka: Visualization of CO2 emissions is not technically impossible. We hope to reduce emissions by promoting this initiative with the help of consortium member companies and others in various industries. It is also important to share values from the long-term perspective of protecting the global environment. Protecting the global environment requires the efforts of the entire human race. We look forward to working together toward new values.

◆Interviewe
Noboru Koshizuka
Professor, Interfaculty Initiative in Information Studies
Director, Institute of Infrastructure Application of Ubiquitous Computing

●Related Information
Customer stories: (Fujitsu Limited) Linking Product CO2 Emissions Data with 12 Suppliers for Carbon Neutrality(Japanese only)
https://www2.fujitsu.com/jp/customer-stories/cs-fujitsu-esgmgmtpfm-20250131/

Japan Electronics and Information Technology Industries Association.
https://www.jeita.or.jp/english/

Green x Digital ConsortiumGreen x Digital Consortium
https://www.gxdc.jp/english/

Press Releases：Fujitsu collaborates with global suppliers in decarbonization initiative to exchange product-level primary data on CO2 emissions
https://www.fujitsu.com/global/about/resources/news/press-releases/2024/1115-01.html

This article was written by
the Fujitsu Transformation News Editorial Department
At Fujitsu Transformation News, we introduce Fujitsu’s latest efforts to solve social issues.

Note: The organizations to which each person belongs and the content of the interviews are current at the time of the interviews.