Comparison of “CO 2 Efficiency” between Company and Industry

1. Comparison of “CO2 Efficiency” between Company and Industry Kiyotaka TAHARA Masayuki SAGISAKA Kazuo YAMAGUCHI Atsushi INABA AIST

2. Eco-Efficiency Economic Ecological (Environment) Product or Service value Environmental influence Eco-Efficiency = Introduction An important tool to achieve sustainable development Quantity of goods or services produced or provided to customers Net sales Energy consumption Materials consumption Water consumption Greenhouse gas emissions (CO2…) Ozone depletion substance emissions …… WBSCD, 1992

3. Source :TOYOTA Environmental Report 2002

4. Source :TOYOTA Environmental Report 2002

5. Source:Sony Environmental Report 2002

6. Product or Service value Environmental influence Eco-Efficiency = Economic index CO2 emission CO2 Efficiency = This study Price Gross value-added Gross income Cost I-O table data LCI data Environmental report of company Investor relation information

7. Producer’s Price Total CO2 emissions Gross value-added Direct CO2 emissions Total CO2 efficiency = Cost Indirect CO2 emissions Direct CO2 efficiency = Indirect CO2 efficiency = Indirect CO2 emission Direct CO2 emission Producer’s Price Cost Industry B Industry C Industry A Product Industry D Gross value-added Fig.1-1 Concept of CO2 efficiency

8. Producer’s Price Total CO2 emissions Gross value-added Direct CO2 emissions Cost Indirect CO2 emissions Price Producer’s Price Total Direct Gross value-added CO2 efficiency of Industry A Cost Indirect Average CO2 efficiency of upstream Industry CO2 emission Indirect CO2 emission Direct CO2 emission Fig.1-2 Concept of CO2 efficiency

9. 3,500 Total CO2 Efficiency 3,000 (Producer Price/Direct and Indirect CO2 emission) 2,500 2,000 CO2 Efficiency [yen/kg-CO2] 1,500 1,000 500 0 Food Trade Mining Textiles Transport Real estate Construction Iron and steel Metal products Office supplies Personal service Business service Electrical devices Non-ferrous metal Chemical products General machinery Other public service Precision machinery Public administration Transport equipment Finance and insurance Education and research Petroleum refinery and coal Agriculture, forestry and fisheries Activities not elsewhere classified Ceramic, stone and clay products Communication and broadcasting Pulp, paper and wooden products Miscellaneous manufacturing products Water supply and waste disposal services Medical service, health and social security Electric power, gas supply and steam and hot water supply manufacturing service Fig.2 The Total CO2 Efficiency (Producer Price / Direct and Indirect CO2 emission) for each Industrial Sector

10. 25,000 Direct CO2 Efficiency (Gross value-added/Direct CO2 emission) 20,000 15,000 CO2 Efficiency [yen/kg-CO2] 10,000 5,000 0 Food Trade Mining Textiles Transport Real estate Construction Iron and steel Metal products Office supplies Personal service Business service Electrical devices Non-ferrous metal Chemical products General machinery Other public service Precision machinery Public administration Transport equipment Finance and insurance Education and research Petroleum refinery and coal Agriculture, forestry and fisheries Activities not elsewhere classified Ceramic, stone and clay products Communication and broadcasting Pulp, paper and wooden products Miscellaneous manufacturing products Water supply and waste disposal services Medical service, health and social security Electric power, gas supply and steam and hot water supply manufacturing service Fig.3 The direct CO2 Efficiency (Gross value-added / Direct CO2 emission) for each Industrial Sector

11. 700 Indirect CO2 Efficiency 600 (Cost/Indirect CO2 emission) 500 400 CO2 Efficiency [yen/kg-CO2] 300 200 100 0 Food Trade Mining Textiles Transport Real estate Construction Iron and steel Metal products Office supplies Personal service Business service Electrical devices Non-ferrous metal Chemical products General machinery Other public service Precision machinery Public administration Transport equipment Finance and insurance Education and research Petroleum refinery and coal Agriculture, forestry and fisheries Activities not elsewhere classified Ceramic, stone and clay products Communication and broadcasting Pulp, paper and wooden products Miscellaneous manufacturing products Water supply and waste disposal services Medical service, health and social security Electric power, gas supply and steam and hot water supply Fig.4 The indirect CO2 Efficiency (Cost / Indirect CO2 emission) for each Industrial Sector

12. Pattern A Price Price Total CO2 efficiency Producer ’ s Price Price 100,000 Gross Gross value value - - added added Agriculture, forestry and fisheries Direct CO2 efficiency Cost Cost Communication and broadcasting Non-ferrous metals Indirect CO2 efficiency 10,000 CO2 CO2 emission emission Other public service Indirect Direct Pulp,paper and wooden products Finance and insurance Pattern B 1,000 Transport Price Price Trade Total CO2 efficiency Chemical products Producer ’ ’ s Price Price Petroleum Refinery and coal Gross Gross Indirect CO2 Efficiency [yen/kg-CO2] Real estate value value - - added added Direct CO2 efficiency Ceramic, stone and clay products Food Cost 100 Electrical devices Mining General machinery Indirect CO2 efficiency Metal products Iron and steel CO2 CO2 emission emission Indirect Direct Construction Water supply and waste disposal services 10 Pattern C Price Price Total CO2 efficiency Total CO2 efficiency Electric power, gas supply and steam and hot water supply Producer s ’ ’ Price Price Gross Gross value value - - added added 1 Cost Direct CO2 efficiency Direct CO2 efficiency 1 10 100 1,000 10,000 100,000 Direct CO2 Efficiency [yen/kg-CO2] Indirect CO2 efficiency Indirect CO2 efficiency CO2 CO2 emission emission Direct Indirect Fig.5 CO2 efficiency pattern for each Industrial Sector

13. 9,100 32,500 4,000 3,500 3,000 2,500 Direct CO2 efficiency [yen/kg-CO2] 2,000 1,500 1,000 500 0 Beer Food Bread Sugar Feeds Starch Noodles Tobacco Fish paste Soft drinks Other foods Retort foods Grain milling Other liquors Refined sake Confectionery Fish oil and meal Manufactured ice Animal oil and fats Dairy farm products Whiskey and brandy School lunch (public) School lunch (private) Prepared frozen foods Tea and roasted coffee Organic fertilizers, n.e.c Vegetable oils and meal Frozen fish and shellfish Processed meat products Bottled or canned seafood Other processed seafoods Dishes, sushi, lunch boxes Condiments and seasonings Preserved agricultural foodstuffs Salted, dried or smoked seafood Bottled or canned meat products Slaughtering and meat processing Flour and other grain milled products Ethyl alcohol for liquor manufacturing Dextrose, syrup and isomerizes sugar Canned or bottled vegetables and fruits Fig.6 The direct CO2 Efficiency of Food Industrial Sector

14. 400 350 300 250 Direct CO2 efficiency [yen/kg-CO2] 200 150 100 50 0 Petroleum Coal products Paving materials Petroleum refinery products refinery and coal (inc. greases) Fig.7 The direct CO2 Efficiency of Petroleum refinery and coal Industrial Sector

15. oil Gross Income Most of Direct CO2 emissions Direct CO2 efficiency = Company X . \ \ Cost Net sale Net sale – Cost = Gross Income X CO2 CO2 CO2 CO2 4% Beer Company C Company X Factory Office, Institute, etc. Factory Office, Institute, etc. Fig. 8 Concept of Direct CO2 efficiency for companies

16. Real estate Medicines Liquor Drink 100% 80% 60% 40% Beer 20% 0% Company A Company B Company C Percentage of production in the total net sale Beer Beer Industry sector (I-O based data) 600 500 400 Direct CO2 efficiency [yen/kg-CO2] 300 200 100 0 Company C Company A Company B Fig.9 Direct CO2 Efficiency in the beer industry sector: 3 Companies’ data from environmental reports against I-O based data

17. 40 Petroleum refinery products Industry (I-O based data) 30 Direct CO2 efficiency [yen/kg-CO2] 20 10 0 Company A Company B Company C construction work Petroleum Petrochemistry Other 100% 80% 60% Petroleum 40% 20% 0% Company A Company B Company C Percentage of production in the total net sale Fig.10 Direct CO2 Efficiency in the petroleum industry sector: 3 Companies’ data from environment reports against I-O based data

18. Tire Fig.11 Direct CO2 Efficiency in the tireindustry sector: 3 Companies’ data from environment reports against I-O based data

19. 100% Cement Other Real estate 80% New materials Building material Lime, Aggregate 60% Cement 40% 20% 15 0% Company A Company B 10 Percentage of production in the total net sale Cement Industry (I-O based data) Direct CO2 efficiency [yen/kg-CO2] 5 0 Company Company A B Fig.12 Direct CO2 Efficiency in the cement industry sector: 2 Companies’ data from environment reports against I-O based data

20. Gross income/ Gross value-added More efficient G Industry F Industry Less efficient E Industry Standard of Company A Company A ＝A+B+C+D+E+F+G Industry D Industry C Industry B Industry A Industry CO2 emission Fig.13 Concept of company evaluation

21. Conclusion • CO2 efficiency index was developed from I-O table data for the evaluation of industry sectors. • The CO2 efficiency varies by industry sector. • The conparison of companys’ CO2 efficiency against I-O based industry sector CO2 efficiency is possible. • A clear difinition of system boundary will be necessary for better resolution of company’s CO2 efficiency. • Further examination and comparison of company’s “eco-efficiency” and its detailed investigation in relation to economic value index should be explored.