Avoided EmissionsSustainability
What Are Avoided Emissions?
Avoided emissions refer to a metric that evaluates how much a company contributes to reducing greenhouse gas (GHG) emissions across society through the solutions it provides, such as its products and services.
Avoided emissions are evaluated based on a different concept than Scope 1, 2, and 3 emissions, which measure a company's own emissions.
Scope 1 represents a company's direct emissions; Scope 2 refers to indirect emissions from the use of electricity, heat, or steam supplied by other companies; and Scope 3 includes all other indirect emissions in the supply chain, excluding those covered by Scope 1 and 2.
In contrast, avoided emissions reflect the greenhouse gas (GHG) reductions that occur when comparing a baseline scenario with a scenario in which the company’s solutions contribute to lowering emissions. This approach clarifies how much a company’s business activities have contributed to reducing GHG emissions across society and enables the assessment of the emission reduction effects of new technologies and solutions. To promote these initiatives and support accurate calculation, organizations such as the World Business Council for Sustainable Development (WBCSD) and the GX League are advancing the development of methodologies for utilizing avoided emissions.
While referring to these frameworks, we calculate and disclose the reduction contributions from our business activities in addition to the traditional Scope 1, 2, and 3 emissions. This allows us to explain to our stakeholders how we are contributing to the realization of a sustainable society.
Image of Avoided Emissions
Source: Based on the WBCSD's "Guidance on Avoided Emissions"
Avoided Emissions from Our Business Activities
We evaluated the avoided emissions of our solutions related to power and fuel supply, such as fuel conversion to ammonia at thermal power plants, development of renewable energy, and provision of hydrogen & ammonia, by referring to WBCSD guidance and the GX League's basic guidelines.
