Sustainability
Decarbonization, circular economy, and supply chain due diligence
SSBJ Handbook Revised on Partial Compliance
Japan's Sustainability Standards Board (SSBJ) revised its handbook on disclosure when not fully complying with SSBJ standards to Ver. 2.0 on July 31, 2026, prompted by a May advisory. The handbook is not the SSBJ standard itself and carries no legal force.
EFRAG: SME ESRS consultation
In July 2026, EFRAG opened a public consultation on sustainability-disclosure standards for SMEs. The pillars are VSME, a voluntary standard for companies outside CSRD, and LSME for listed SMEs, effective from January 2026 with a two-year relief period. The standards aim to reduce the burden on mid-sized and small suppliers receiving Scope 3 demands from larger companies through a common format.
EU adopts revised ESRS
The European Commission adopted revised ESRS in July 2026, cutting mandatory data points by more than 60% and expected reporting costs per company by over 30%. It also introduced a voluntary standard for SMEs outside the CSRD scope, reflecting EFRAG technical advice and stakeholder input.
ESG Acronyms: Quick Guide
A practical guide to 55 sustainability acronyms, including CBAM, SSBJ, TCFD, TNFD, and ESRS, organized across eight areas with formal names, legal status, timing, and manufacturing impact.
CDP Adds Ocean to Environmental Disclosure
Starting the week of June 15, 2026, CDP will add ocean as its sixth disclosure theme after climate, forests, water, biodiversity, and plastics. With about 90% of world trade dependent on maritime transport, new questions will cover target setting and supplier engagement.
Scope 3: Guide to Primary Data Collection from Suppliers
Supply chain emissions are estimated to be 11.4 times greater on average than direct operational emissions. Drawing on the GHG Protocol Supplier Engagement Guidance and the Ministry of the Environment Guide (v1.0), this article organizes who to collect primary data from, what to collect, and how far down the supply chain to go. Covers tier structure, the top-concentration principle, and approaches for small and medium-sized suppliers.
CBAM Guide: Scope and Certificates
CBAM entered full application in January 2026 for steel, aluminum, fertilizers, cement, hydrogen, and electricity. This guide covers authorized declarants, EU ETS-linked certificates, the 50t de minimis exemption, the first annual declaration deadline on September 30, 2027, certificate sales from February 2027, Omnibus simplification, late-2025 implementing rules, and third-country carbon price deductions.
ESRS 2.0: Public Consultation Opens on Simplified Draft
The European Commission opened consultation on ESRS 2.0, a simplified CSRD standards draft with implications for EU supply chain reporting.
GX-ETS: Emission Calculation and Reporting Guide 2026
Japan's GX Emissions Trading System (GX-ETS) launches as a mandatory scheme in April 2026, targeting GX League member companies with annual CO₂ emissions exceeding 100,000 tonnes (approximately 300–400 companies). This guide covers the end-to-end operational workflow for the first year of compliance, from inventorying emission sources and selecting calculation methods to third-party verification and integrated design with SSBJ disclosure.
SSBJ: 3 Key Preparations for Suppliers by April 2027
Sosius has launched a free AI diagnostic tool, "SSBJ...", for companies listed on the Tokyo Stock Exchange Prime, in preparation for the Sustainability Standards Board of Japan (SSBJ) disclosure standards (applicable from the April 2027 period), enabling companies to easily assess their disclosure readiness.
CBAM: Carbon Cost Guide for Japan Steel and Chemical Firms
The EU Carbon Border Adjustment Mechanism (CBAM) entered full implementation in January 2026. With six sectors covered — steel, aluminum, fertilizers, cement, hydrogen, and electricity — Japanese exporters face requirements to calculate and declare embedded emissions. This article examines the current state of compliance and the key practical issues at stake.
CSRD/CSDDD: EU Customer Compliance
CSRD and CSDDD can reach suppliers through EU customer questionnaires, contract clauses, and disclosure requests. This article maps priority actions.
EcoVadis: Improving Scores in 4 Procurement Domains
EcoVadis is an ESG scoring platform widely adopted by major Western companies for supplier evaluation. Assessment covers four domains — environment, labor and human rights, ethics, and sustainable procurement. This article explains what each score band means and outlines the practical steps to reach the Silver threshold (50 points).
How GX-ETS Phase 2 Ripples Down to Mid-Tier Suppliers
GX-ETS Phase 2 affects more than 300-400 direct participants. This article maps how Scope 3 data requests reach mid-tier suppliers.
India Manufacturing: Green Shift via PLI and BRSR Schemes
India is strengthening manufacturing through PLI while advancing BRSR Core disclosure. This article frames supplier evaluation for global procurement.
Internal Carbon Pricing: Embedding Carbon Costs in Business
Internal Carbon Pricing embeds carbon costs into investment, supplier evaluation, and product design decisions before external rules arrive.
J-Credit: Practical CO2 Reduction Guide for Manufacturers
The J-Credit Scheme allows manufacturers to convert CO2 reductions from energy-efficient equipment installation, renewable energy use, and forest management into certified credits, which can then be applied to GX-ETS compliance or Scope 2 reduction. This article covers the most useful methodologies for manufacturers and key practical considerations in the application process.
SBTi SME Program: Practical Application Guide and Changes
SBTi (Science Based Targets initiative) offers a simplified commitment pathway for small and medium-sized enterprises (SMEs). This article organizes the differences from the standard track, the preparation required for application, and practical examples from Japan. It serves as a practical reference for mid-size manufacturers that have begun to receive SBTi commitment requests from major customers.
TCFD: Financial Impact and Physical Risk Quantification
TCFD framework-based climate risk disclosure requires estimating the financial impact of transition and physical risks on financial statements. This work — which is also essential for compliance with SSBJ and ISSB standards — involves organizing the conceptual approach and the specific impact pathways for manufacturers.
TNFD: Nature-Related Risk Disclosure for Manufacturers
TNFD (Taskforce on Nature-related Financial Disclosures) published its final recommendations in 2023, establishing a framework for disclosing nature-related risks in biodiversity, water, land, and ocean. This article organizes how this framework — often described as the natural counterpart to TCFD — applies to manufacturer supply chain assessment.