Project Status | Full Research (FR) |
Duration | Oct. 2018 - Mar. 2024 |
Research Program | Program 2: Fair Use and Management of Diverse Resources |
Project No. | 14200135 |
Project Title | Mapping the environmental impact footprint of cities, companies, and households |
Abbreviated Title | Supply Chain Project |
Project Leader | KANEMOTO Keiichiro |
Keywords | Supply chain, MRIO, environmental impacts |
Research purpose and content
A recent study in Nature showed that up to a third of biodiversity loss is driven by trade, and a body of other studies have identified the same pattern for GHG emissions, air pollution, and other environmental ills. Many environmental impacts worldwide are ultimately driven by consumption in developed countries. Considerations of remote responsibility, ecological footprint, and scope 3 emissions are now a standard part of the environmental policy discussion at many levels, from the UNFCC to individual businesses and households.
This research project will develop a new dramatically higher resolution life-cycle / environmental footprint data platform. The proposed system will, in a single consistent framework, detail the supply chains and environmental impact footprint of >=30,000 global companies, >=1,000 global cities, and >1,000,000 households in across Japan, India, the US, and Europe. The project will use pioneering, novel methods built on top of the newest available models.
Ultimately, the intent of this research is to encourage behavioral change by providing information to corporations, households, and cities and supporting green procurement. After we identify critical supply chains from the environmental impact perspective, we will hold a stakeholder meeting with cities, companies, households, and NGOs., where we will discuss the kinds of policy options that can be taken by policy makers and how companies can reduce their Scope 3 emissions.
Challenges and achievements for this year
This year's primary achievement encompasses the construction of an enterprise-level global supply chain database and the estimation of Scope 3 emissions. We have constructed an enterprise-level multi-regional input-output (EMRIO) table, marking a pioneering step in global supply chain analysis. Diverging from traditional MRIO databases, which focus on the sector level, EMRIO delves into the enterprise level, offering an intricate view of global economic interactions. This detailed perspective is made possible by disaggregating sector-level MRIO into company, segment, and sub-segment levels. To achieve this, we utilized a diverse array of data sources, including annual securities reports, financial fundamentals, supply chains, and bills of lading. The EMRIO framework, as elaborated in previous sections, represents a significant advancement in comprehending the complexities of global supply chains, providing a nuanced view of enterprise-level transactions on both domestic and international stages.
We estimated Scope 3 emissions for 1,957 enterprises, 5,052 segments, and 18,983 sub-segments, based on the previously mentioned EMRIO and company-level reported Scope 1 and Scope 2 emissions. In Figure 3, we conduct a comparative analysis of upstream Scope 3 emissions, company-reported versus EMRIO-derived, encompassing disclosures from 642 companies across 29 countries, out of the 1,957 companies analyzed. The result showed that companies in the USA and India typically report higher emissions compared to other regions, with EMRIO-based Scope 3 emission estimates for companies in these countries being, on average, 6.86 and 2.36 times greater than the mean of all entities reporting. This discrepancy suggests a prevalent underreporting issue within corporate emissions disclosures.
In addition to producing results for Scope 3 emissions, we have created an iPhone application to make this data accessible to the general public, released under the name "CarbonScope." This app uses enterprise segment level Scope 3 emissions data to guide users in choosing products with lower environmental impacts when making purchases.
Future tasks
After the project period, we aim to further develop and disseminate the results of this research. For the city and household analysis, since global analysis was not sufficiently achieved, we plan to continue and expand this aspect. Additionally, for spatial analysis, we intend to aim for social implementation, such as compliance with TNFD (Taskforce on Nature-related Financial Disclosures). Lastly, for the corporate analysis, we plan to pursue collaborations with various companies to enhance the scope and impact of our research.
The most significant challenge we faced from the onset of the project was the slow and complex process of intellectual property transfer. Despite our efforts to plan for post-project activities, these procedural difficulties made it challenging to focus on activities envisioned for after the project's completion.