Scope 3.1 Measurement
FLAG Emissions Measurement
SBTi Target Validation & Reinforcement
Food
Tokyo, Japan
53,593 employees (consolidated)
(as of December 31, 2024)
Comprehensive quantification of Scope 3.1 GHG emissions for the processed foods business including overseas subsidiaries.
Established a reliable emissions calculation baseline.
Terrascope supported JT by quantifying FLAG-related greenhouse gas (GHG) emissions in its processed foods business, including its overseas subsidiaries, and by helping improve the accuracy of calculations for Scope 3 Category 1 (purchased goods and services) emissions within that business. Terrascope also supported JT throughout the process of updating its SBTi near-term targets (including FLAG) and obtaining validation of its long-term net-zero target.
JT operates multiple businesses centered on its tobacco business. Because it conducts many activities that fall under the FLAG sector (forest, land, and agriculture), reducing GHG emissions, including FLAG-related emissions, is a critical issue. The company is working to improve production process efficiency and introduce renewable energy, and it aims to achieve carbon neutrality in its operations by 2030 and net-zero across its entire value chain by 2050.
FLAG measurement became essential in order for JT to update its near-term targets and set long-term net-zero targets. However, JT lacked sufficient internal structure and expertise to deliver this at pace. In addition to FLAG measurement, they needed practical support in preparing SBTi application documents, responding to Q&A, and quickly adapting to the latest review and assessment trends.
JT operates at a global scale, with a diverse group of companies and operations worldwide. Differences in data formats, boundaries, and assumptions across related companies, including overseas sites within the food supply chain, meant that while JT had been calculating Scope 3.1 GHG emissions,consolidating them into a complete and consistent dataset was highly complex. Designing the process for collecting, integrating, and reconciling each company’s data became a key bottleneck.
By applying Terrascope’s calculation methodology in accordance with the SBTi FLAG Guidance, we completed the calculation of two years of FLAG emissions—including the base year—in just one month. By leveraging JT’s existing data, we significantly reduced the effort and time required for data consolidation, while also achieving FLAG emissions figures consistent with the performance JT discloses internally and externally.
Terrascope carried out Scope 3.1 calculations across the value chains of approximately 20 companies within JT’s processed foods business, including overseas subsidiaries. Amid differing data formats and assumptions across entities, we verified scopes and assumptions point by point and consolidated the data comprehensively. For common issues such as double counting and the risk of overestimation due to inconsistent application of emission factors, we returned to the supporting evidence, reviewed and corrected the inputs, and supported the calculation of robust, reasonable emissions figures.
Terrascope contributed to JT’s update of near-term targets in line with SBTi criteria, as well as the establishment of its first long-term net-zero target and FLAG target. Drawing on experience from global engagements and our expert network, we provided timely guidance on evolving validation trends and supported the entire process consistently—including preparation of SBTi submission documents and responses to follow-up questions.
Clarified the pathway to achieving SBTi near-term and long-term targets, including FLAG
Based on the SBTi FLAG Guidance, JT completed both the near-term target update and the long-term net-zero target-setting process. This helped clarify JT’s pathway to net-zero aligned with international standards.
Within Scope 3.1 of JT’s processed foods business, we identified that FLAG-related emissions account for more than 60% of total emissions. This clarified priority areas—such as raw materials and packaging—and is expected to help JT take a key step toward defining priority actions to achieve its net-zero targets.
With third-party assurance in mind, we centrally managed emission factor sources and rationales, conversion formulas, and assumptions, ensuring transparency and traceability of the calculation workflow. We also supported third-party assurance of the calculation results, contributing not only to comprehensive quantification but also to further strengthening the credibility and transparency of JT’s disclosures.