The Basic Policy for the Realisation of GX states that GX initiatives throughout the supply chain are essential.

In order to realise carbon neutrality, which means that Japan’s GHG emissions will be virtually zero by 2050, it is essential to promote GX initiatives throughout the supply chain, including not only large companies but also medium-sized and small companies, not only to reduce their own emissions (Scope 1 and 2) but also to reduce the emissions in the value chain (VC) and the GHG emissions in the supply chain (Scope 2). emissions (Scope 3), and to this end, it is effective to support reduction efforts not only by the company itself, but also in cooperation with companies in the VC.

On the other hand, some VC companies, especially small and medium-sized enterprises (SMEs), are not taking concrete steps towards decarbonisation or are not aware of the need to calculate their own GHG emissions in the first place.

Therefore, in this model project, support is provided to VC member companies for supplier engagement, including emissions calculation, consideration of reduction initiatives and data sharing, and support is also provided towards the development of industry-wide Scope 3 calculation rules and engagement policy guidelines.

(i) Individual VC support
Support is provided for engagement initiatives conducted with constituent companies (supplier companies) in order to reduce the VC emissions of the applicant.
The support will include: – Advice on awareness-raising among constituent companies and on emissions calculations by constituent companies.
Advice on reduction methods, such as joint purchasing of renewable energy.
Advice on methods of sharing and linking emissions data.

(ii) Support for industry associations and groups of companies
Support for studies by study groups representing applicant companies to develop common Scope 3 calculation rules and engagement policies for the industry.
Support for the development of industry Scope 3 calculation rules and engagement policies by a study group representing the applicants.
Develop a roadmap for initiatives in the following years and beyond.
The study group will also support the development of a roadmap for initiatives to be taken in the following year and beyond.