Establishing a System for Calculating CFP^*1 Values Using By Product Primary Data
～ Update on the Progress of the “GHG^*2 Emissions Visualization Project” launched in May 2022～

Unicharm Corporation (CEO & President, Mr. Takahisa Takahara) and Deloitte Tohmatsu Consulting LLC (CEO, Mr. Masato Sase) (hereinafter as Deloitte Tohmatsu), a company of Deloitte Tohmatsu Group, has launched the “GHG^*2 Emissions Visualization Project” (hereinafter as this Project) in May 2022.

We are pleased to report on the progress and results of the activities planned for the eight-month period ending December 31, 2022, which were completed and moved to Phase 2 as of January 1, 2023.

Unicharm has set the "Environmental Targets 2030" (announced in May 2020) and the med- to long-term ESG Goals "Kyo-sei Life Vision 2030" (announced in October 2020) to proactively promote the "response to climate change issues" and to reduce GHG^*2 emissions not only directly but also throughout the value chain.

In order to promote such initiatives, it is essential to obtain accurate and fresh GHG^*2 emissions data by material and to identify specific reduction plans for each process, such as product design, material selection, and manufacturing. From this perspective, we have formed this Project in collaboration with Deloitte Tohmatsu, which has abundant knowledge and experience in comprehensive support for carbon neutrality.

(1) Completion of Unicharm-style calculation rules and calculation system

We have established GHG emission calculation rules in compliance with the GHG^*2 Protocol, an international standard. The construction of a system based on these rules was completed by the end of 2022. This system has made it possible to calculate CFP^*1 values by product as well as by business calculation.

(2) Collecting primary GHG^*2 emissions data^*3 by material from supplier companies, covering about 80% of the total GHG^*2 emissions based on purchase amount

With the cooperation of our suppliers, we were able to obtain GHG^*2 emissions data for approximately 80% of the materials procured mainly in Japan on a purchase value basis.

(3) Ensuring consistency with international standards through collaboration with various external organizations

We shared our direction with experts and organizations working on decarburization, and confirmed consistency with international standards.

First, we will start trial operation of the calculation system, compare the difference between the results using coefficient data and those using primary data^*3, and work on tuning the calculation rules and system. Various trial runs will be completed by the end of 2023, and in 2024, we plan to disseminate information to stakeholders using specific figures for some of our products.

*1 CFP (Carbon Footprint of Products): A system to convert greenhouse gas emissions throughout the entire life cycle of products and services, from procurement of raw materials to disposal and recycling, into CO₂ 　

　 emissions.

*2 GHG (Greenhouse Gas): A gas that has the property of absorbing radiant heat (infrared rays) from the earth's surface warmed by sunlight into the atmosphere, rather than allowing it to escape into space.

*3 Primary data: Data collected by the entity responsible for the calculation, such as data measured by the entity itself (e.g., electricity consumption for manufacturing its own products) or data collected through 　 interviews with external stakeholders (e.g., direct understanding of company-related emissions by business partners).