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.
Human Rights Due Diligence Practical Workflow — 6 Steps Mid-Sized Manufacturers Should Take First
Organizes the human rights due diligence required by CSDDD and LkSG into 6 actionable steps for mid-sized manufacturers. Covers what to document at each step—from policy formulation and risk mapping to grievance mechanisms and disclosure—to pass EU business partner audits, explained from a practical operations perspective.
CBAM Cut India's Aluminum Exports by 41.7% — The First Evidence That Carbon Costs Have Reshaped the Structure of Trade
Following the full enforcement of the EU CBAM, India's unalloyed aluminum exports to the EU fell 41.7% in a single year. Drawing on the first quantitative data showing carbon costs materializing as real trade costs, we examine the structural risks now facing Japanese manufacturers.
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.
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.
How GX-ETS Phase 2 Ripples Down to Mid-Tier Suppliers
The April 2026 enforcement of GX-ETS Phase 2 is not limited to the approximately 300–400 directly regulated companies. The cost structure that large enterprises bear for emissions reduction will inevitably flow downstream through supply chain demands on mid-tier and small manufacturers. This article maps what is coming, and through which channels.
Human Rights Due Diligence in Practice: Key Issues for Japanese Manufacturers
Against the backdrop of Japan's National Action Plan on Business and Human Rights (2021–2025) and pressure from the EU's CSDDD, supply chain-wide human rights due diligence has become a practical challenge for Japanese manufacturers. This article outlines the basic structure — what to identify, how to respond, and what to disclose — and clarifies response priorities.
SBTi SME Program in Practice: Differences from the Standard Track and How to Apply
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.
Scope 3 for Manufacturers: Practical Category Measurement and How to Set Priorities
The GHG Protocol classifies Scope 3 into 15 categories. When manufacturers disclose their value chain emissions, the categories that should be prioritized depend on their industry and supply chain structure. This article organizes a prioritization approach based on emissions weight and measurement difficulty.
TNFD: Nature-Related Risk Disclosure Framework and Its Application 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.