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Matsuo Sangyo and Uhuru collaborate to begin a Carbon Footprinting PoC

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A PoC at Matsuo Sangyo Group’s DiaM synthetic diamond manufacturing facility using efficient electric power measurement to calculate and disclose supply chain emissions

Matsuo Sangyo Co., Ltd. (HQ: Osaka City, Osaka Pref, Naoki Matsuo, president and representative director, hereinafter, “Matsuo Sangyo”) is collaborating with Uhuru Corporation (HQ: Minato-ku, Tokyo, President & CEO, Takashi Sonoda, hereinafter, “Uhuru”) utilizing efficient electric power measurement at production sites for the manufacturing industry to conduct a PoC to measure and disclose supply chain emissions at the Matsuo Sangyo Group’s DiaM synthetic diamond manufacturing facility between December 1, 2021 and the end of March 2022.

Background

At COP26 (the 26th Conference of the Parties to the UN Framework Convention on Climate Change), which took place from October 31, 2021, global discussions were held on measures to counteract global warming worldwide, with each country confirming the need to make further efforts to reduce GHG (greenhouse gas) emissions going forward.

Matsuo Sangyo has been involved in the supply chain of the manufacturing industry for over 80 years since its founding, from its role as a trading company handling raw materials for paints used in automobiles to supplying automobile parts to car manufacturers. The reason for conducting this PoC is that we want to be a leader in bringing about realization of carbon neutrality in the entire supply chain by providing realistic solutions based on our knowledge of actual conditions on site, such as visualization of GHG emissions that is part of this PoC.

Efficient Electric Power Measurement

On April 21, 2021, the European Commission published a Corporate Sustainability Reporting Directive (“CSRD”) proposal, requesting third-party verification of certain non-financial information, and after the current limited scope of verification work has progressed, it also points out the need for a reasonable verification framework in the future. Our view is that this survey of power consumption is not limited to only some of the current factories, but implies that GHG emission calculation units will be applied to all of the lines at all of our factories and further subdivided to all of our manufacturing equipment. With the goal of reducing the cost of subdividing the GHG emission calculation units, Matsuo Sangyo is collaborating with Uhuru to perform a PoC utilizing disaggregation technology (see figure below) to estimate the power consumption of devices below the power receiving end.

Reporting Supply Chain Emissions*

Matsuo Sangyo will make a supply chain emission report of its efficiently collected electricity consumption and GHG emissions calculated on a part by part basis for components delivered to or from each customer and supplier based on emissions units and write it to a distributed ledger (Blockchain) By simply referencing an API, customers and suppliers will be able to add our Scope 3 emissions on a part by part emission basis.

Future Initiatives for Matsuo Sangyo

The current climate change problem is an urgent challenge that our generation must resolve within the next 20-30 years. Calculating supply chain emissions is something that has many issues preventing individual production sites from dealing with it alone, so we are stuck in a situation where even taking the first step is nearly impossible. However, as a company that is part of the supply chain, being an SME, we have been exempt from the reporting obligation, but we expect that we will be required to calculate emissions. Matsuo Sangyo has been involved in various aspects the moving “thing” through the supply chain as a trading company, but going forward, will also move “data” in an effort to achieve carbon neutrality.

Main role of each company in the PoC

Matsuo Sangyo Conducting PoC at the Matsuo Sangyo Group’s DiaM synthetic diamond manufacturing plant.
Uhuru Installing AI ammeters at the power receiving end, visualizing time-series power consumption data for each piece of production equipment, and providing a private node for enebular to write supply chain emission amounts for each customer and supplier to the distributed ledger.

Reference: Related Press Releases
Notice: Matsuo Sangyo and Uhuru participating in CEATEC 2020 Online to display joint development IoT Solution Project (Japanese Only) (Released October 19, 2020)
Uhuru and Matsuo Sangyo Enter into Capital & Business Partnership (Released September 7, 2020)

*About Supply Chain Emission Calculation (Reference: Japan’s Environment Ministry website)
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company.
Scope 3: All other indirect emissions that occur in a company’s value chain.

About Matsuo Sangyo (https://www.matsuo-sangyo.co.jp/en)

Matsuo Sangyo is a trading company that connects various advanced technologies and information from all over the world and provides products and solutions based on the philosophy of “Connecting the Peaks”. For more than 80 years since our founding, we have provided products with an eye on the future of manufacturing, such as new materials that bring next-generation technologies to life, centered on chemicals and automobile parts, based on technology and information. As the importance of open innovation increases, we aim to contribute to the future of the manufacturing industry with the power to accompany and connect with the innovators who create new value under the slogan “strive to improve.”

About Uhuru Corporation (https://uhuru.co.jp/en/)

Based on our corporate philosophy “Create a sustainable society with technology and outside the box thinking”, Uhuru supports and promotes digital transformation (DX) and data utilization by businesses and society. We offer on-stop access to services such as consulting and system development based on our in-house products and solutions for edge devices and the cloud. To go beyond the framework of corporate activities and make DX for localities and industries happen, we are working on R&D in the domain of IoT + blockchain while advocating ways to introduce and standardize a system for trusted data distribution, an essential factor for smart cities and supply chains.

* Names of companies, products and services are trademarks or registered trademarks of Uhuru or the respective companies or organizations

For questions about this release:
Matsuo Sangyo Co., Ltd.
Public Relations Officers: Yamane & Kato
E-mail: info-pr@matsuo-sangyo.co.jp

Uhuru Corporation
Public Relations Officers: Fumiko Fukuda
E-mail:contact@uhuru.jp

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