Japanese Carbon Footprint Communication Program and SME case studies

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1 Japanese Carbon Footprint Communication Program and SME case studies 社団法人産業環境管理協会 (JEMAI) Ken Yamagishi (JEMAI) Japan Environmental Management Association for Industry Contact : yamagishi@jemai.or.jp 12 March 2013, APEC Carbon Labeling Workshop, Manila, the Philippines

2 Today s contents 1. Introduction of JEMAI 2. Japanese CFP program 3. SME case studies 1

3 Introduction of JEMAI Japan Environmental Management Association for Industry JEMAI was Established Activities to address industrial pollution control Activities to address global environmental issues such as Life Cycle Assessment (LCA) EcoLeaf (Type III environmental declaration program) MiLCA (LCA software) was released Carbon Footprint Communication Program Environmental Declaration programs LCA support system Type III CFP 2

4 Today s contents 1. Introduction of JEMAI 2. Japanese CFP program 3. SME case studies 3

5 History of CFP program 2000 EcoLeaf (Type III environmental declaration) METI(Ministry of Economy, Trade and Industry) conducted the feasibility study of type III program *Before our declaration projects in Japan 1995Launch of LCA Forum LCA National Project 1999 Annual Eco Products Exhibition started CFP Carbon Footprint 2002 JEMAI launched EcoLeaf 2008 METI conducted the preliminary feasibility study Experiences through EcoLeaf boost CFP Privatization National pilot project started (for 3 years) Established Basic Guideline and PCR Prepared for privatization of Program 2012 JEMAI launched CFP Fusing communication program Comprehensive declaration program In near future 4

6 What is Carbon Footprint of Products(CFP)? Carbon Footprint of Products (CFP) refers to a scheme of visualizing (making a declaration) of CO 2 emissions through an entire life cycle stages of a product (goods and service), from the raw material acquisition stage to the disposal and recycling stage. raw material production distribution use Disposal and recycling CO 2e CO 2e CO 2e CO 2e CO 2e 5

7 Communication of CFP declaration with stakeholders Total amount of CO 2 emission Calculation condition e.g. frequency of washing Explanation of the result (e.g. recycling of the used product contributes CO 2 reduction) Contribution of each stage (e.g. Material production: 70%) 6

8 Basic Concept of CFP program Based on national pilot project outcomes Consistent with ISO14067 (DIS2) Flexible scheme with credibility & transparency Emphasis on communication & promotion Prepare for more comprehensive information disclosure Communication Participant Organizations Media Investor, Shareholder Consumer Business Partner Make GHG reduction effort visible! 7

9 Basic configuration of CFP Program credible program, rules, data, verification scheme, publication, and CFP mark, etc. Fee $ communication 8

10 Composition of CFP declarations engineering and construction 6% others 5% printed stuff 11% office equipment s 15% cloths 14% houseware s 31% foods 18% 9

11 Numbers of the publication CFP declaration 646 Product category rules(pcrs) 82 Companies 122 As of 2013/2/ Number of CFP declaration *Japanese fiscal year 10

12 Composition of participating companies As of 2012FY participants Canon Ricoh Hitachi Samsung (Korea) DNP Fuji film Ajinomoto Aeon etc. Big company 35% SME 65% House ware Clothes Food Printing etc. 11

13 Today s contents 1. Introduction of JEMAI 2. Japanese CFP program 3. SME case studies 12

14 (1) Uniform : CHIKUMA & co., ltd. Company over view Foundation: 1903 Employees: 237 persons Annual turnover: 22.8billion yen(250 million USD) branches and offices: Tokyo, Vietnam, Shanghai etc. Main products Fabrics and garments for men, women, children, business and school uniforms Characteristic of uniforms B to B A number of clothes with same design, same clothing fabric in same area. Suitable for recycle, not for reuse Examples of uniform Award-winning 11th Green Purchasing Award "Minister of Economy, Trade and Industry Award etc

15 (1) Uniform : CHIKUMA & co., ltd. Motivation for participating the CFP program Showing the reduction effect of environmental load to the stakeholders Based on basic principle of Chikuma Thinking product lifecycle Quantifying environmental load Reducing environmental load Chikuma has conducted activities for reducing environmental load such as recycling used uniforms for a long time. Social background in Japan There are many eco- conscious systems in uniform market. Law on Promoting Green Purchasing Uniform makers shall provide eco-conscious uniform, if they want to sell to the government. Type I, II, III environmental labels. differentiated marketing strategy even in environmental area. 14

16 (1) Uniform : CHIKUMA & co., ltd. Approach in the use of CFP Product promotion Uniform is a good example for environmental education for school teachers. Uniform is a good symbol for eco-friendly activities of businesses. Built- in their FUKUIKU activity (CSR activity) FUKUIKU is the activities that foster children's hearts rich through clothing Dissipating company staff as a teacher to the school class. class Sugoroku game 15

17 (1) Uniform : CHIKUMA & co., ltd. Advantages of CFP (as a result of participation) Transparency CFP declarations are verified by third party Traceability Providing a sense of safety and security for consumers Disadvantages of CFP Weak cost-benefit performance under existing conditions 16

18 (2) Cellulose fiber insulation: DECOS corporation Company over view Foundation: 1974 Employees: 28 persons branches and offices: Yamaguchi, Tokyo, Hiroshima Production and construction of thermal insulation material Main products Thermal insulation material for construction made of cellulose fiber Characteristic of cellulose fiber B to B Made of used news paper or chip from news paper printing factory. Lower energy amount in production stage than other insulation material Award-winning cellulose fiber in the form of cotton Construction work Product package 2nd Carbon offset Award Award for Excellence. Etc. 17

19 (2) Cellulose fiber insulation: DECOS corporation Motivation for participating the CFP program Approval by public organization. Certifying that cellulose fiber is less CO2 emissions than other insulation materials though life cycle. Being the first company in the industry Getting conditions to perform an aggressive product promotion using eco as a key word. Knowledge Human network CFP mark etc.. Social background in Japan Cellulose fiber is not major insulation material in Japan but in USA. LCCM(Life Cycle Carbon Minus) policy has been studied by MLIT(Ministry of Land, Infrastructure, Transport and Tourism) 18

20 (2) Cellulose fiber insulation: DECOS corporation Approach in the use of CFP Product promotion Press release & published in over 40 medias Training about CFP quantification not only in DECOS but also in group companies Advertising on architectural portal site & mail magazine Exhibiting at ECO-products exhibition etc.. Explaining to authorities(governments, local governments, banks, assembly members ) And more actions(using CFP on Business card, website contents, brochure, package and directions with product ) Newspaper articles 19

21 (2) Cellulose fiber insulation: DECOS corporation Advantages of CFP (as a result of participation) Re-realized Strengths of their products and corporate attitude by public numerical verification Increasing awareness Value-added (not price) Differentiation Utilized from other activity local government project preferential treatment system for financing by regional banks Attracting Stakeholder s interest beyond unexpected expectation! 20

22 (3) Curtain rail : TOSO co., ltd. Company over view Foundation: 1949 Employees: 545 persons (TOSO only) Annual turnover: 19 billion yen (210 million USD) branches and offices: Ibaraki, Tokyo, Indonesia etc. Main products Development, manufacturing, and marketing of interior products such as Curtain rail About curtain rail, top market share in Japan for over 50 years. Characteristic of curtain rail B to B and B to C Simple but customized Examples of curtain rail 21 21

23 (3) Curtain rail : TOSO co., ltd. Motivation for participating the CFP program Surviving severe competition by making CFP into a strength Social background in Japan Declining birth rate and a growing proportion of elderly people Declining new house construction Declining market size 22

24 (3) Curtain rail : TOSO co., ltd. Approach in the use of CFP Construction of CFP quantification and declaration system (similar as ISO14001 ; environmental management system) Early adopter profit -> absolute advantage Accumulating know-how of CFP quantification and CO 2 emission reduction Taking CFP mark of all their products Improved customer satisfaction Responding immediately to requests from customers 23

25 (3) Curtain rail : TOSO co., ltd. Advantages of CFP (as a result of participation) Sharing recognition of CO 2 emission hot spot High credibility by third party verification Highend CFP quantification & declaration system Disadvantages of CFP (as a result of participation) Week cost-benefit performance under existing conditions Difficult to find direct incentive for corporation Hard to explain. Consumers want companies their CO 2 emission reduction but CFP shows only numerical value of CO 2 emission. 24

26 Conclusion METI(Ministry of Economy, Trade and Industry) conducted the feasibility study (2008) & National pilot project ( ) Based on the project outcomes, JEMAI has operated the CFP program since SME case studies show that CFP program provide a credible communication tool for SMEs. However, If you don t put CFP to practical use, CFP has no value. In order to achieve a low-carbon society, JEMAI will actively disseminate the CFP program & these SME case studies. 25

27 For your further information Website (English available) : CFP communication program cfp@jemai.or.jp JEMAI - Japan Environmental Management Association for Industry - Chikuma DECOS Thank you very much for your attentions! TOSO We re the member of GEDnet! The Global Environmental Declarations Network (GEDnet) The international non-profit association of type III environmental declaration organizations and practitioners. 26