Euglena, which advocates "Sustainability First," has calculated CO2 emission amount for the entire group. After efficiently aggregating data from multiple location and achieving visualization within a few months of implementation, the data is also being used for TCFD reports and third-party verification! What is the next initiative for this cutting-edge sustainability company?
Euglena, which advocates "Sustainability First," has calculated CO2 emission amount for the entire group. After efficiently aggregating data from multiple location and achieving visualization within a few months of implementation, the data is also being used for TCFD reports and third-party verification! What is the next initiative for this cutting-edge sustainability company?
Person in charge (department and title at the time of interview)
Sustainability Promotion Department Manager
Ms. Ikuho Miyazawa
Sustainability Promotion Department
Mr. Hiroaki Takahashi
Calculating CO2 emission amount is a major Issue for companies with multiple location , including group Company and factories across different industries and product categories. Despite the many tasks that must be performed, such as collecting and centrally managing data calculated in different formats, Settings the calculation scope, verifying emission amount, and Education personnel, limited human resources present a Issue . Furthermore, many companies facing this challenge for the first time seem to find it difficult because they are unsure of the optimal solution. euglena Company , which has 17 location , including group Company and factories, faced similar challenges. Zeroboard provided support by Settings step-by-step goals tailored to the customer's perspective and presenting scenarios for achieving them. We spoke to euglena about their efforts to calculate CO2 emission amount, as well as the reasons and effects of introducing Zeroboard.
Issue and background to introduction
The Euglena Group had not been able to calculate its CO2 emission amount or Settings reduction targets.
We wanted to calculate Scope 1 and Scope 2 emissions within a few months of implementing the system.
Needed help with Scope 3 calculations, starting from scratch
Reasons for choosing Zeroboard
The support was excellent, with the staff providing study sessions and information sessions, and they were very accommodating and willing to give advice.
Whenever I was considering introducing the system, the sales staff responded promptly and courteously.
Because there are many different industries and many special raw materials, the knowledge of Zeroboard experts can be utilized in the calculations.
Introduction effects and expected effects in the future
This is the first time that the Euglena Group has attempted to calculate CO2 emission amount, but within a few months of implementation, they were able to calculate Scope 1 and Scope 2 emissions, and also calculate Scope 3 emissions by narrowing down the categories.
Data calculated using " Zeroboard " can now be used for disclosure in TCFD reports and for obtaining third-party verification.
Calculating CO2 emission amount and setting reduction targets has become an urgent Issue
--Please tell us how you started to calculate CO2 emission amount.
Mr. Miyazawa: Our company operates under the Euglena philosophy of "Sustainability First."
In 2021, the company revised its business objectives in Contents of incorporation to reflect the SDGs, and is promoting sustainability and contributing to the SDGs through its business. However, if the company does not focus not only on the offensive aspects of contributing to the SDGs through its business but also on the defensive aspects, it could end up being just a superficial act of greenwashing.
Furthermore, with the transition to the Tokyo Prime in April 2022, disclosure of sustainability information and full-scale efforts toward ESG have become necessary, making it an urgent Issue to calculate CO2 emission amount and set reduction targets.
Sustainability Promotion Department Manager, Ikuho Miyazawa
-Please tell us about the Issue you faced before introducing Zeroboard .
Mr. Miyazawa: We were already calculating CO2 emission amount at some of location , but we didn't have a system in place to enable the Euglena Group as a whole, including our group Company, to disclose and report ESG-related information and CO2 emission amount. Since we didn't have enough in-house human resources, we began considering introducing a system to efficiently aggregate data from multiple location.
-Please tell us why you chose "Zeroboard" and what was the deciding factor.
Miyazawa: The biggest deciding factor was the generous support. It was the first time for many of the people in charge at each location to try calculating CO2 emission amount, but when we learned that they would hold information sessions and study sessions, we felt they were very supportive and willing to help us. We also hoped that by joining the Community "All Aboard""All Aboard!", we could connect with people from other companies and learn from them.
In April, new employees from our company and our group participated in the "All Aboard!"Events for new employees. Participants gave it high praise, saying it was very easy to understand and that people with the same understanding of the Issue could come together to discuss their concerns.
In addition, when I was considering introducing the tool, I was impressed by how quickly and courteously the sales staff responded to me every time. I was also convinced by the price and ease of use of the tool, so I decided to introduce it.
Smooth calculation of CO2 emission amount achieved at all 17 location
Euglena Group Yaeyama Shokusan Company General Building
--What was it like actually using Zeroboard?
Miyazawa: It took a little while to get used to using it, but thanks to the Zeroboard staff explaining things to us several times, the implementation went relatively smoothly.
Takahashi: Because this is an area where there are no correct answers, whenever I have something I don't understand, I immediately consult with the Zeroboard staff and they have been able to solve it. Our company has a total of 17 location , including group Company and factories, and we have been able to smoothly resolve questions from each location. Zeroboard is also very helpful because they are constantly improving and updating it to make it easier to use. We receive release information for the Zeroboard system every two weeks, and there are so many updates that it's hard to keep up. In my previous job, I was in charge of ESG in general, but my main focus was on the Social aspect, so I find their specialized knowledge in the E aspect very helpful.
Miyazawa: I was familiar with overseas ESG trends and GHG protocols, but there were some aspects of Japanese trends I was not aware of, such as the Energy Conservation Act (Act on the Rational Use of Energy and Conversion to Non-Fossil Energy) and the Global Warming Countermeasures Act (Act on the Promotion of Global Warming Countermeasures). I would appreciate it if you could teach me about these aspects as well.
-Have you taken any steps to encourage smooth use of " Zeroboard " at each location ?
Miyazawa: We created a working group with representatives from each location, and shared information every other month. If they still couldn't use it effectively, our Sustainability Promotion Department at headquarters provided individual support or asked the Zeroboard representative for help. Having joined the company in 2023, I feel that euglena's members have a high level of awareness of environmental issues. There is a culture of proactive engagement, so once they understood and got used to it, we were able to streamline things smoothly.
Sustainability Promotion Department Hiroaki Takahashi
Scope 1 and Scope 2 calculations are now possible. Data calculated with " Zeroboard " can also be used for TCFD and third-party verification.
--Please tell us about the effects you have seen since implementing it.
Miyazawa: Thanks to the introduction of Zeroboard on December 1, 2022, we were able to calculate Scope 1 and Scope 2 for fiscal year 2022 by March 2023. I feel that it went much smoother than we expected.
Data calculated by Zeroboard is also used in the TCFD , which provides third-party verification and disclosure of financial information related to climate change. How is Zeroboard involved?
Miyazawa: TCFD(Task Force on Climate-related Financial Disclosures) was an initiative that was in place before I joined the company, but it was limited to assessing risks and opportunities, and had not yet gone so far as to calculate CO2 emissions or set reduction targets. Since last year, we have been using "Zeroboard" to calculate the data necessary for such decision-making, setting reduction targets, and creating action plans.
Takahashi: When conducting third-party verification, we sometimes notice deficiencies in the data through on-site inspections, and we check with Zeroboard to make improvements.
--You also consulted Zeroboard about calculating Scope 3 emissions. What Issue did you face?
Miyazawa: Because we were starting from scratch, we had no knowledge of Scope 3 calculations within the company, and we were feeling our way around when it came to calculation methods. We use a lot of specialized raw materials, such as biofuels, waste, and organic fertilizers, and our industries are diverse. There were also some materials for which there was no precedent, such as those for which there were no Emission factor, and for which the standards were not clearly defined. So we worked together with the Zeroboard staff to think things through and proceed with the calculations.
Strengthening sustainability efforts through Scope 3 refinement and CFP calculations
-Finally, please tell us about your future plans.
Miyazawa: We would like to further refine our Scope 3 data. To do this, we need to obtain data based on the actual emission amount, i.e., physical quantities. However, obtaining data based on physical quantities is a high hurdle, so we are considering taking new measures, such as either using physical quantities or expanding the categories included in the calculation of emission amount. Currently, we use accounting data to narrow down the categories for calculation, but we would like to proceed with reduction measures based on physical quantities.
Takahashi: We are also considering calculating the carbon footprint of Products(CFP) in the future, and would like to quantify it while narrowing down the number of products.
In addition to calculating CO2 emissions, I would like to understand the actual situation in environmental fields such as water and waste at a group level. I would also like to take an offensive rather than defensive approach and verbalize, quantify, and monitor the extent to which we are able to solve social Issue through our business.
Miyazawa: I think the next big Issue will be biodiversity. We launched a sustainable agritech business in 2022 and are now entering the agricultural sector. We are looking to reduce CO2 emissions by updating the primary Industry through the use of organic fertilizers and animal feed, and we are also considering issues of ecosystems and biodiversity. As we continue to organize information, we need to keep an eye on the TNFD(Task Force on Nature-related Financial Disclosures) and respond accordingly.
We also want to tackle environmental Issue from a global perspective, including by promoting sustainable products, one of Euglena's strengths, and working with future generations, including our CFO (Chief Future Officer) and Future Generation Advisory Board.
