2023.12.3 Sun.

13:00 - 14:15

Appropriate evaluation of avoided emissions towards net zero society

Organizer

Ministry of Economy, Trande and Industry

Co-organizer

World Business Council for Sustainable Development (WBCSD)

Seminar abstract

Abstract

In the G7 Climate, Energy and Environment Ministers Communique and the conclusions of G7 Industrial Decarbonisation Agenda (IDA), a common understanding was reached on the value of recognising 'Avoided Emissions' and the recommendation for an international standard for measuring avoided emissions.
At COP 28, it aims (i) to demonstrate that concrete design is progressing based on the G7 agreement, and (ii) to obtain further commitment from world-leading companies including WBCSD members and GFANZ and other financial institutions. This session will introduce WBCSD’s actions and the effort of the GX league in Japan to make a trusted mechanism that may mobilise financial resources to accelerate the deployment of solutions. It will also showcase the examples of the use of avoided emissions by finance institutions as well as current discussions towards its international standardization.

Program

Opening Remarks -5 min-

KOBAYASHI Izuru Deputy Director-General for Environmental Affair, Ministry of Economy, Trade and Industry

Presentation and Ceremony -25 min-

• Dominic Waughray Executive Vice President, WBCSD
• SAIKI Yukari Vice President, Group Sustainability Office, Nomura Holding

Panel Discussion 1 -20 min-

• Gilles Vermot-Desroche SVP Corporate Citizenship and Institutional Affairs, Schneider Electric
• Paula Cousins Chief Strategy & Sustainability Officer, Weir Minerals
• Pierre-Yves Pouliquen, SVP, Multifaceted Performance & Sustainable Development, Veolia
• TSUDA Megumu Head of the Sustainability Promotion Division, Hitachi
• Alexander Nick, Senior Director, Climate Action, WBCSD

Panel Discussion2 -20 min-

• UEHARA Hirotoshi Executive Officer, Quality & Environment, CS, Panasonic Operational Excellence Co., Ltd.
• Stephanie Chow Director, Climate Finance. & Strategy, GFANZ
• Christopher Kaminker Managing Director, Head of the Sustainable Investment Research & Analytics (SIRA) team, BlackRock
• YAMAGA Teppei Head of Net Zero Strategy Dept., Nomura Asset Management
• Marvin Henry, Senior Manager, Avoided Emissions, WBCSD

Closing Remarks -2 min-

KOBAYASHI Izuru Deputy Director-General for Environmental Affair, Ministry of Economy, Trade and Industry

Speakers

In-person

• Izuru Kobayashi / Deputy Director-General for Environmental Affair, Ministry of Economy, Trade and Industry
• Dominic Waughray / Executive Vice President, WBCSD
• Yukari Saiki / Vice PresidentGroup Sustainability Office, Nomura Holding
• Gilles Vermot-Desroche / SVP Corporate Citizenship and Institutional Affairs, Schneider Electric
• Paula Cousins / Weir Group Chief Strategy & Sustainability Officer
• Pierre-Yves Pouliquen, SVP, Multifaceted Performance & Sustainable Development, Veolia
• TSUDA Megumu / Head of the Sustainability Promotion Division, Hitachi
• Alexander Nick / World Business Council for Sustainable Development (WBCSD) Senior Director, Climate Action
• UEHARA Hirotoshi / Executive Officer, Quality & Environment, CS, Panasonic Operational Excellence Co., Ltd.
• Stephanie Chow / Director, Climate Finance. & Strategy, GFANZ
• YAMAGA Teppei / Nomura Asset Management Managing Director, Head of the Net Zero Strategy Department
• Christopher Kaminker / Managing Director, Head of the Sustainable Investment Research & Analytics (SIRA) team, BlackRock
• Marvin Henry / World Business Council for Sustainable Development (WBCSD) Senior Manager, Avoided Emissions

Related Links

• Video Distribution
• Leveraging Avoided Emissions: Financial Institution Case Studies
• GGX x TCFD Summit

Session Summary

First, KOBAYASHI Izueu of METI highlighted the importance of visualising avoided emissions resulting from companies' decarbonisation solutions, which cannot be fully assessed within SCOPE 1-3 emissions alone, for the realisation of a net-zero society, and the need for a reliable process and international rules to measure avoided emissions. Next, Dominic Waughray of the WBCSD emphasised that corporate emissions reporting should shift from a compliance focus to innovation and emissions reduction, and that financial support and policy frameworks are critical to achieving this. He also mentioned that WBCSD's guidance will help companies combine transitions and accountability.
SAIKI Yukari of the GX League presented a collection of case studies on the use of avoided emissions by financial institutions, prepared by the GX Management Promotion WG. It was then announced that the WBCSD and the GX League will continue to work together to lead the discussion on avoided emissions.
Two panel discussions followed, moderated by the WBCSD. The first panel discussed the potential of avoided emissions with panelists from Schneider Electric, Veolia, Weir Minerals and Hitachi, Ltd. The panelists presented use cases of avoided emissions in the electrical and electronics, mining and environmental services industries and the challenges they face. They highlighted the importance of ensuring a transparent, simple and user-friendly mechanism to effectively use avoided emissions independently of the GHG Protocol.
In the second panel, Panasonic, BlackRock, GFANZ and Nomura Asset Management discussed the steps needed to enable financial institutions to use avoided emissions. Three actions will be taken to ensure fairness and comparability in the use of avoided emissions as a performance indicator in financial institutions: standardisation by the IEC by 2024, collection of calculation examples as case studies for each industry, and proactive disclosure of avoided emissions. The panel emphasised the importance of avoided emissions in transition finance and the need to measure and disclose avoided emissions to improve data quality for inclusion in the impact matrix used to assess companies' growth potential and climate opportunities.