Knowledge Introducing Carbon Neutrality Initiatives by Region and Country – What Are the Risks of Delayed Action?（3/3）～The Importance of Visualizing CO2 Emissions in Achieving Carbon Neutrality～

To achieve carbon neutrality, regions and countries around the world have implemented a variety of measures. For example, the EU has adopted the “European Climate Law,” which legally mandates greenhouse gas reduction targets and enforces strict regulations. In contrast, the United States and the APAC region are taking more flexible approaches tailored to the specific needs of their industries and local conditions.

For companies to respond effectively to these international trends, it is crucial to accurately track CO2 emissions not only within their own operations but also throughout their entire supply chain. Delays in disclosing information or reducing emissions can expose companies to risks such as the suspension of transactions by partner firms. Therefore, prompt action is essential.

This article provides a detailed overview of how various countries are pursuing carbon neutrality in three parts. It also explains the risks associated with delayed action and outlines the measures that companies should take and can be used for reference.

3. The Importance of Visualizing CO2 Emissions in Achieving Carbon Neutrality

Achieving carbon neutrality requires that companies precisely track and manage CO2 emissions both at the corporate (overall operations) and the product level. Visualizing CO2 emissions allows companies to set realistic reduction targets and implement effective mitigation measures. These efforts not only help companies meet environmental regulations but also enhance corporate reputation and competitiveness.

Significance and Benefits of Managing CO2 Emissions at the Corporate Level

Tracking and managing CO2 emissions across the entire company not only ensures compliance with environmental regulations but also provides critical data for strategic decision-making. For example, by accurately measuring electricity consumption in factories and offices, emissions from company vehicles, and emissions generated during manufacturing processes, companies can develop effective reduction strategies.

Moreover, by communicating their CO2 reduction initiatives externally, companies can enhance their corporate value, while setting company-wide environmental goals and monitoring progress can also help raise environmental awareness among individual employees.

Significance and Benefits of Managing CO2 Emissions at the Product Level

Understanding the environmental impact throughout a product’s lifecycle—from raw material sourcing to manufacturing, transportation, usage, and disposal—enables companies to develop more sustainable products. This approach also helps to foster stronger partnerships and can lead to cost savings and overall supply chain optimization.

Managing CO2 emissions on both the corporate and product levels not only fulfills a company’s social responsibility to reduce environmental impact but also supports sustainable growth and improved competitiveness.

4. Summary

Achieving carbon neutrality requires compliance with international regulations. Delays in responding to information disclosure or emissions reduction requirements—whether within a company or among its partners—can lead to risks such as loss of supplier status, suspension of transactions, and a decline in corporate value. Therefore, companies should start by visualizing CO2 emissions and then proceed with strategic, timely responses.

At KDDI, consulting partners with extensive experience in supporting carbon neutrality are ready to help you with your sustainability management. Please feel free to contact us.

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