Industry‑First Provision of Highly Reliable Primary Data for Customer Scope 3 (Category 5: Waste Generated in Operations)
— Development of a Carbon Footprint Calculation System for Waste Treatment Processes —

March 31, 2026
DOWA HOLDINGS CO., LTD.

 

DOWA ECO-SYSTEM CO., LTD. (14-1, Sotokanda 4-Chome, Chiyoda-ku, Tokyo; Capital: 1 billion yen; President: YANAI Yasuharu; hereinafter "DOWA ECO-SYSTEM"), a subsidiary of DOWA HOLDINGS CO., LTD. (same location; Capital: 36.4 billion yen; President: SEKIGUCHI Akira), will launch a carbon footprint*¹ (CFP) reporting service in June 2026 for customers that outsource waste treatment to the DOWA ECO-SYSTEM Group, providing highly reliable primary data on greenhouse gas (GHG) emissions associated with waste treatment.
This service will calculate and report GHG emissions for each customer using actual operational data from waste treatment processes, focusing on Scope 3*² (Category 5: Waste Generated in Operations), which is becoming increasingly important in corporate disclosures under the Sustainability Disclosure Standards*³ (SSBJ Standards).

To deliver this service, DOWA ECO-SYSTEM has independently developed a CFP calculation system for waste treatment processes and obtained third-party validation on March 18, 2026. This marks the first*⁴ customer-level CFP reporting service in Japan’s waste treatment industry to be based on a system that has obtained third-party validation.

*1　The total amount of GHG emissions generated across the entire life cycle of a product or service—from raw material procurement through use, disposal, and recycling—expressed as CO₂-equivalent emissions.

*2　Greenhouse gas emissions associated with corporate activities are classified into Scopes 1 to 3 based on emission sources. While Scopes 1 and 2 cover emissions generated directly by a company or through its energy consumption, Scope 3 covers emissions generated throughout the entire supply chain, including raw material procurement, logistics, and waste treatment. Scope 3 is further subdivided into 15 categories, and its measurement and disclosure are becoming increasingly important in assessing the sustainability of corporate activities.

*3　Sustainability disclosure standards for Japanese companies established by the Sustainability Standards Board of Japan (SSBJ). These standards are designed to align with the international standards set by the International Sustainability Standards Board (ISSB), while considering Japan's legal system and corporate practices. They require disclosure of sustainability-related risks and opportunities, including climate change, from a financial impact perspective.

*4　Based on the Company’s research as of March 26, 2026.

Background

Based on the SSBJ standards announced in March 2025, Japanese companies listed on the Tokyo Stock Exchange Prime Market will be required, in a phased manner starting from the fiscal year ending March 2027, to disclose climate-related information including Scope 1-3 emissions. Scope 3 emissions have generally been estimated using secondary data, such as emission factors published by Japan’s Ministry of the Environment. However, the SSBJ Standards encourage disclosures based on primary data provided directly by suppliers, which more accurately reflects the actual conditions of corporate activities.
In the manufacturing sector in Japan, product-level CFP are increasingly being calculated and provided as primary data. In contrast, in the waste treatment sector, the provision of primary data has lagged behind other industries. This is due to factors such as the complexity of waste types and their transportation, as well as the wide range of processes from collection to final disposal, and the insufficient development of underlying data infrastructure.

Overview of the CFP Calculation System

The CFP calculation system for waste treatment independently developed by DOWA ECO-SYSTEM acquires activity data from the Company’s internal waste management database, as well as its procurement and operational management databases. Using emission factors related to waste, transportation, utilities, and auxiliary materials provided by highly reliable databases, the system calculates and aggregates GHG emissions for each customer and process.
In this initiative, the system was applied to waste treatment operations at ECO-SYSTEM CHIBA, one of the Group’s waste treatment facilities. Through validation conducted by Intertek Certification Japan Ltd. (4‑3‑13 Toranomon, Minato‑ku, Tokyo; capital: 50 million yen; President: Tomoaki Kimura), an internationally recognized certification body, DOWA ECO-SYSTEM obtained limited assurance. As a result, the system’s conformity with ISO 14067:2018 and the GHG Protocol Product Standard was validated in accordance with ISO 14064‑3:2019.

CFP Reporting Service for Waste Treatment Processesd

This industry‑first CFP reporting service for waste treatment processes is offered on a fee‑based basis to customers that outsource waste treatment to the DOWA ECO-SYSTEM Group. Using actual operational data from waste treatment processes, the service calculates GHG emissions for each customer and provides the results. The service delivers highly accurate and comprehensive GHG emissions data covering the transportation of waste, incineration residues, and auxiliary materials; utilities and auxiliary materials used in incineration processes; and subsequent final disposal. Through this service, the provision of reliable primary data becomes possible in the waste treatment sector, contributing not only to improve accuracy in Scope 3 calculations but also to evaluate emission reduction measures through emissions visualization and to enhance the efficiency of sustainability disclosure processes.
At the initial stage of the service launch, the scope will cover waste treatment operations at ECO-SYSTEM CHIBA, which was the organization subject to the recent validation. The service is planned to be rolled out sequentially to other facilities conducting similar waste treatment operations, including those in Akita Prefecture and Okayama Prefecture.

■Related Information (available in Japanese only)
DOWA Eco Journal: 
Navigating the Path to a Decarbonized Society – Third-Party Verification of Carbon Footprint (CFP)

[Overview of DOWA ECO-SYSTEM CO., LTD.]
1. Head Office: 14-1 Sotokanda 4-Chome, Chiyoda-ku, Tokyo
2. Established: October 2006
3. Capital: 1 billion yen 
4. Representative: YANAI Yasuharu, President and Representative Director  
5. Employees: Approx. 2,900 (DOWA ECO-SYSTEM consolidated, as of the end of March 2025) 
6. Shareholders: DOWA HOLDINGS CO., LTD. 100%
7. Business: Environmental Management and Recycling (Resource recycling, Waste treatment, Soil remediation, Logistics, Consulting)

 

[Overview of ECO-SYSTEM CHIBA CO., LTD.]
1. Head Office: 1-30-2, Nagaurataku, Sodegaura, Chiba
2. Established: May 1970
3. Capital: 90 million yen 
4. Representative: OIKE Hidekazu, Representative Director  
5. Employees: 129 (as of the end of March 2025) 
6. Shareholders: DOWA ECO-SYSTEM CO., LTD. 100%
7. Business: Intermediate treatment of industrial waste and specially controlled industrial waste, Destruction of fluorocarbons