Sustainability
Decarbonization, circular economy, and supply chain due diligence
Practical Impact Guide to CSRD and CSDDD — Actions Japanese Companies Should Take Now
The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) are beginning to directly affect Japanese companies from 2025 to 2026. This guide systematically covers the revised scope following the Omnibus I amendment, the cascading obligations through supply chains, practical response steps, and alignment with SSBJ standards.
European Commission Opens 'ESRS 2.0' for Public Consultation: Draft Aligned with EFRAG Technical Advice, Additional Simplifications for Companies
The European Commission has published a draft of version 2.0 of the European Sustainability Reporting Standards (ESRS 2.0) for public consultation. The draft is aligned with the technical advice of EFRAG (European Financial Reporting Advisory Group) and includes further simplifications for companies.
CBAM Declaration Practical Flow: Steps and Submission Data Japanese Exporters Must Prepare
While EU importers bear the direct obligation to file under the EU Carbon Border Adjustment Mechanism (CBAM), Japanese manufacturers are responsible for calculating and providing embedded emissions data. This article systematically organizes roles by stakeholder, declaration workflows, and submission data requirements from a practical standpoint—covering quarterly reporting during the transitional period through annual declarations and certificate surrender from 2026 onward.
SSBJ and CBAM Launch Simultaneously in 2026 — The Dual Challenge of 'Disclosure and Carbon Costs' Facing Japanese Companies
A February 2026 amendment to Cabinet Office ordinances establishes the legal basis for mandatory SSBJ disclosure, while CBAM enters full enforcement in January of the same year. Whether companies can design an integrated response to both regulations around the shared foundation of supply chain emissions data will determine their competitive edge.
Circular Economy and Manufacturing: How EU Regulations Are Reshaping Waste, Resource Cycling, and Design Philosophy
The EU's Circular Economy Action Plan (CEAP), Battery Regulation, and Ecodesign Regulation are changing requirements for product design, waste management, and recycled material procurement. This article outlines the regulatory structures pressing Japanese manufacturers to adapt and the procurement and development changes that come with transitioning to circular design.
CSRD and CSDDD Supply Chain Provisions: How They Reach Japanese Companies and What to Prioritize
The EU's Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) create practical compliance obligations for Japanese companies even without direct applicability — through European customers and trading partners. This article outlines the channels through which these directives cascade and the actions Japanese companies should prioritize.
Internal Carbon Pricing: How Manufacturers Can Embed Carbon Costs in Business Decisions
ICP (Internal Carbon Price) is a mechanism by which companies set their own price on emissions ahead of external regulations such as carbon taxes and ETS, and factor it into investment decisions. Applying the ICP concept to equipment upgrades, supplier evaluation, and product design structurally embeds carbon risk into business decision-making. This article outlines implementation approaches and practical options.