Column 2024.11.05

How can we make the calculations for GHG emission amount of group Company more reliable? How can we manage data that can withstand third-party verification?

table of contents

It is important for companies that do business with group Company to calculate GHG emission amount not only for their own company but also within the group to understand the overall picture. In addition, the credibility of the disclosed information can be guaranteed by disclosing the calculated information in securities reports and receiving third-party verification.

Benefits of demonstrating the authenticity of disclosure information

Disclosing highly reliable information serves as an evaluation standard for stakeholders such as investors and customers, leading to gaining support and medium- to long-term business stability.

This article explains the calculation and disclosure of GHG emission amount , including those of group Company , and the key points required for third-party verification.

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GHG emission amount Accounting Process

Calculation of GHG emission amount , including for Group Company , is carried out in accordance with the following process.

1. Identifying the scope

A parent company determines which subsidiaries and Company are included in the accounting for GHG emission amount, usually based on the overall group structure and influence.

2. Data collection

When a parent company calculates GHG emission amount, each subsidiary in the group must also calculate its own emission amount and collect the data. In this case, the parent company and subsidiary must unify the calculation rules. For example, GHG emission amount can be calculated by multiplying the actual amounts of fuel consumed or electricity used by an Emission factor, but it is necessary to unify the Emission factor used here.

3. Data integration

The collected data is then consolidated to calculate the GHG emission amount of the parent company as a whole, taking care to standardize the data for each subsidiary so that it is consistent and expressed in the same units.

Calculations are generally based on the following scope:

・Scope 1

Direct GHG emissions from our business activity

・Scope 2

Indirect GHG emissions from business activity that involve the consumption of Energy supplied by other companies

・Scope 3

GHG emissions from business activity in the supply chain of companies other than Scope 1 and Scope 2

4. Disclosure of Data

The calculated GHG emission amount will be disclosed in the securities report.

5. Data Verification

Data is verified by a third-party verification organization, which ensures the accuracy and reliability of the calculated GHG emission amount.

What points need to be considered for third-party verification?

When conducting third-party verification, the following points must be taken into consideration: *1

- Is the data collection method consistent?

There is variation in the sources of applied Emission factor and the handling of significant figures, and calculation methods have not been standardized.

・Is the collected data accurate?

Mistakes in input, incorrect digits, missing input, etc.

summary

By calculating GHG emission amount including those of group Company , it becomes possible to visualize which categories have high emission amount, which can be effectively used to reduce GHG emission amount.

In addition, receiving third-party verification not only ensures transparency of calculation methods within the Group, but also assures stakeholders of the reliability of the data.

Due to these benefits, calculation of GHG emission amount, disclosure of the information in securities reports, and third-party verification are recommended. However, in order to do so, data must be standardized within the group and managed centrally.

Zeroboard provides a "consolidated carbon accounting function" that efficiently Settings account permissions for GHG (greenhouse gas) emission amount within a corporate group, unifies calculation rules, and collects data. If you have any problems calculating GHG emission amount , please Contact us Zeroboard .

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＜Reference source＞
*1: Ministry of the Environment
https://www.env.go.jp/earth/ondanka/supply_chain/gvc/files/dms_trends/seminar02_09.pdf
https://www.env.go.jp/earth/ondanka/supply_chain/gvc/files/tools/QandA_202203.pdf
https://www.env.go.jp/earth/ondanka/supply_chain/com01/mat03.pdf