ENEOS to calculate product carbon footprint with WasteBox and NTT

ENEOS Corporation, formerly JXTG Nippon Oil & Energy Corporation, and the largest integrated oil company in Japan, has launched a joint study with WasteBox Co., Ltd. and NTT  DATA Corporation to calculate the product carbon  footprint (CFP) of ENEOS petroleum products and to develop a  greenhouse gas (GHG) management system for ENEOS.

WasteBox will contribute its expertise in developing the logic for these calculations. NTT DATA has a track record in developing CFP management systems.

The joint study aims to calculate the product carbon footprints of ENEOS petroleum products and manage the GHG  emissions at more than 100 sites. The study’s aim is to build the system during Fiscal Year (FY) 2023 and  provide customers with the data for some of the products ENEOS provides, including lubricants, petrochemical products and functional materials. 

Achieving carbon neutrality requires the disclosure of product carbon footprint as a measure of GHG emissions for  each product over their life cycles from procurement of the raw materials up to disposal.  In the calculation, it is necessary to develop a logic for  properly allocating GHG emissions based on the complex manufacturing processes that are  unique to the petroleum industry. 

The joint study will pursue the following activities:

• Develop the logic for calculating complex product carbon footprints unique to the petroleum industry. In the petroleum refining process, multiple products are  produced simultaneously from the same processes and same raw materials. The study  will consider how to allocate GHG emissions for those products, and how to approach the  recycling of semi-finished products. This is the first such initiative in the domestic  petroleum industry in Japan, using actual data acquired from refineries.
• Develop a product carbon footprint calculation and GHG emission management system.  The development of this system  aims to “achieve unified monitoring and management of carbon information on a per product basis,” “analyze the impact that decarbonization initiatives in manufacturing has on CFP and visualize CFP at the new product planning stages,” and “create business  opportunities by highlighting the environmental value of low-carbon products.” 

In addition  to the per-product CFP, the management of entity-level GHG emissions released by business  sites and other locations will also be targeted, with the aim of “streamlining statutory GHG  reporting,” “managing the implementation of carbon neutrality plans through monthly  forecasting and result management” and “optimizing the costs of emission reductions.” 

One of the ENEOS Group’s envisioned goals stated in our Long-Term Vision to 2040 is  contributing to the development of a low-carbon, recycling-oriented society. ENEOS aims to  reduce the Scope 1 and Scope 2 CO2 emissions of the ENEOS Group to net  zero by FY 2040 and to reduce emissions by 46% of the FY2013 level by FY2030. Furthermore, by FY2050, ENEOS will work together with the government and other companies to reduce  Scope 3 emissions and aim to achieve carbon neutrality. 

The Greenhouse Gas Protocol defines Scope 1 as direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.

In the  future, ENEOS said it will work towards the standardisation of logic for CFP calculations across the petroleum  industry.