Sojitz Group Policies for Realizing a Decarbonized Society

Striving to Achieve Carbon Neutrality by 2050

Sojitz Group has established new policies and targets to fulfill its commitment for realizing a decarbonized society as announced in Sojitz’s long-term sustainability vision for 2050, the “Sustainability Challenge.

Click here for ‟Sustainability Challenge” Sojitz's Long-Term Sustainablity Vision

Click here for Complying with TCFD

Sojitz Group’s Decarbonization Policies and Targets

We at Sojitz Group believe it is our responsibility to reduce the Group’s CO2 emissions (Scope1 and 2) in our business activities in order to contribute to the realization of a decarbonized society. Additionally, Sojitz acknowledges the necessity for initiatives that cover CO2 emissions (Scope3) within our supply chains.

While segments of our supply chain with high Scope3 emissions can be considered high risk due to future emissions reduction pressure.
Sojitz Group recognizes the opportunities that present themselves as new avoided emissions businesses and are moving towards creating these initiatives. Sojitz will continue to accumulate avoided CO2 emissions as defined in Scope4.

Specifically, we have set policies and targets for both existing and new businesses based on forecasted technological trends and a careful examination of risks and opportunities.

For existing businesses, emission reduction targets will be set based on separate international protocols for CO2 emissions (Scope categories). For new businesses, Sojitz views the transition towards a decarbonized society as an opportunity for growth, and the company will actively promote diverse new businesses.

<Existing Businesses>

Scope1 and Scope2 Targets

Scope1 encompasses all of the CO2 generated directly by the company from burning resources such as gas. Scope2 mainly refers to the CO2 generated by the company’s consumption of electricity. Sojitz Group recognizes its responsibility to reduce Scope1 and Scope2 emissions as it develops a wide range of businesses. For all existing businesses acquired prior to April 2020, Sojitz aims to reduce overall emissions by 60% before 2030, which includes reaching net zero emissions for Scope2. For Sojitz businesses acquired from April 2020 onwards, we aim to achieve net zero emissions by 2050.

SCOPE1+2 Reduce emissions 60% by 2030; achieve net-zero emissions by 2050 *1
For Scope2: Net-zero emissions by 2030 *2
Coal-fired power generation No current projects nor future projects planned

*1, *2: Reductions from base year of FY2019, scope includes Sojitz Corporation (non-consolidated), consolidated subsidiaries, and unincorporated joint ventures subject to reporting based on Sojitz approach toward control of management

Scope3 Targets (Natural Resource Interests)

Scope3 refers mainly to the indirect CO2 emissions generated in the supply chain. Trading companies have extensive supply chains from upstream to downstream. If all of Sojitz’s current natural resource interests were burned, it would generate approximately 200 million tons of CO2. This amount greatly exceeds the 1 million tons of CO2 emissions generated from Sojitz Group’s direct energy use (Scope1 and 2). Sojitz therefore views addressing these Scope3 emissions as a major social responsibility.

For this reason, Sojitz has established the following strategic targets for natural resource interests. In its coking coal-related business, Sojitz will actively engage in new business opportunities associated with technological innovations, such as CO2 capture and new iron-making methods.

Targets (Natural Resource Interests)

Thermal coal interests Reduce interests to half or less by 2025 zero interests by 2030 *3
Oil interests Zero interests by 2030
Coking coal interests Zero interests by 2050

*3 FY2018 serves as the base year, and targets are based on the book value of assets in coal interests. In May 2019, Sojitz announced its goal of reducing thermal coal interests to half or less by 2030.

<New Businesses>

Sojitz aims to achieve net-zero carbon emissions for all new businesses by 2050.

The aforementioned goals are based on the current future forecast and will be subject to review in accordance with social trends and technological developments.

Sojitz’s Perspective on its Responsibility to Achieve a Decarbonized Society

Sojitz seeks to maximize “two types of value” through its business activities— “value for Sojitz” and “value for society”— in order to “create value and prosperity” as set forth in its corporate statement.

Sojitz has continued to expand its business foundation and pursue growth by providing solutions to social problems through its business activities, and these solution-based initiatives have become areas of strength for the company.

In terms of the issue of securing and supplying energy, Sojitz has worked to play a role in providing energy solutions by conducting many resource businesses both in Japan and overseas while simultaneously connecting these solutions to profit for the company.

In recent years, global warming has emerged as a new issue of major importance and attention, and the global trend towards carbon neutrality has accelerated. Under these circumstances, it is necessary to transition from the simple use and supply of energy to new ways of using and supplying green energy.

In order to achieve these aims, Sojitz will accelerate efforts to reduce CO2 emissions for the Group’s existing businesses in preparation for the coming age of decarbonization by increasing the company’s business resilience. At the same time, Sojitz sees the shift to decarbonization as a new opportunity that can be leveraged to develop new businesses, not only within the power sector, but in a wide range of business fields. Through these efforts, Sojitz aims to create “value for society” through decarbonization and to expand its earnings opportunities to create “value for Sojitz” in the process.

Under Medium-term Management Plan 2023 which began in 2021, we have pursued the aforementioned decarbonization policies and other measures, as well as measuring and tracking Scope3 and Scope4 (avoided) emissions.

As stated in the news release, “Sojitz Corporation Announces Organizational Reforms and Executive Appointments” dated December 26th, 2023, Sojitz newly established the Energy Transformation Department as a specialized organization for businesses in the new energy and decarbonization field. The Energy Transformation Department will collaborate with each business division to create and accelerate growth of energy transformation (EX) projects and businesses.

Background To Our Policy

Sojitz strives to understand external trends and perspectives in the process of pursuing sustainability, and these are then reflected in our policies and business activities. In addition, through appropriate disclosure, we are putting into practice a cycle that allows all of our stakeholders to gain a deeper understanding of Sojitz’s activities, and to offer us further new opinions.

In the formulation of our decarbonization policy, we held a series of internal discussions based on the outlook of future external trends and on input from outside experts at our stakeholder dialogues.

Related Pages

Sojitz's Decarbonization Road Map
Sojitz identifies the technological and global trends of each decade and organizes its thinking and policies based on risks and opportunities for Sojitz. Sojitz will continue to monitor external trends and update its approach and ways of thinking.

Reduction Measures for Scope1 and 2 Emissions

<Existing Businesses>

  • Initially focus on electricity (Scope2) where clear alternatives exist, i.e. renewables
  • Review businesses from perspective of decarbonization etc. against obsolescence risks with view to possibility of exiting
  • For Scope1, priority on switching away from low-efficiency coal- and oil-fired power generation assets as renewal becomes due. Longer time horizon for gas-fired power generation as alternatives such as hydrogen and ammonia not yet economically justifiable and require further technological innovation.
  • Carbon offset certificates may be utilized for remaining CO2 emissions but only minimally

<New Businesses>

  • Sojitz aims to achieve net zero emissions in 2050, just as we aim to achieve net zero for existing businesses. Midterm milestones for 2030 to be established as required.

Support mechanisms to facilitate transitions under consideration for each business.

Data and Results

Reduction of Scope1 and Scope2 Emissions

  • Note: FY2019 data includes companies sold off as of FY2020.

■ Electricity

Sojitz Corporation’s Electricity Consumption and CO2 Emissions

1. Data and Results

(unit:thousand kWh)

  FY2019 FY2020 FY2021 FY2022 FY2023
Total electricity consumption 2,610 2,599 2,623 2,596 2,554★
-Of total electricity, amount of electric power from renewable energy used 0 0 10 0 223
-generated internally utilizing renewable resources 0 0 0 0 0
-purchased renewable energy electricity amounts 0 0 0 0 223
-purchased non-fossil fuel certificates 0 0 10 0 0

2. Scope of Data

Sojitz Corporation: Head office, Kansai Office, and branches (Hokkaido, Tohoku and Nagoya)

Sojitz Group’s Electricity Consumption

1. Data and Results

(unit:thousand kWh)

FY2019 FY2020 FY2021 FY2022 FY2023
Total electricity consumption 220,930 263,805 266,035 295,834 311,811★
-Of total electricity, amount of electric power from renewable energy used 162 210 760 3,015 8,929
-generated internally utilizing renewable resources 0 4 70 1,582 3,290
-purchased renewable energy electricity amounts 162 206 680 1,433 5,639
-purchased non-fossil fuel certificates 0 0 10 0 0

2. Boundary of Data

Sojitz Corporation, all domestic and overseas consolidated subsidiaries, and unincorporated joint ventures subject to reporting under the operational control approach.

  • Previous years' data has been revised to reflect a revision of the boundary of data collection

Scope3/Natural Resource Interests

Approach
  • Scope3 refers to annual emissions in the supply chain.
  • In addition to existing initiatives across Sojitz Group, it is necessary to include measures to reduce CO2 emissions throughout supply chains.
  • Sojitz acknowledges that segments of our supply chain with high Scope3 emissions can be considered high risk due to future emissions reduction pressure.
Policy*
  • Reduce thermal coal interests to half or less by 2025, and to zero by 2030.
  • Reduce coking coal interests to zero by 2050.
Action
  • Sojitz Group will identify sectors with high CO2 emissions and use qualitative analysis to assess Sojitz’s supply chains.
  • We will prioritize improvement measures for the power sector for thermal coal and gas businesses, which have a significant impact on earnings and high CO2 emissions.
  • Sojitz Group will quantify Scope3 for thermal coal and gas in the power sector.
  • We will set emissions reduction policies for natural resource interests (stocks) which affect the company and have a global impact.

Data and Results

Reduction of Emission in Natural Resource Interests.

■ CO2

Sojitz Corporation’s CO2 Emissions

1. Data and Results

(unit:t-CO2e)

  FY2019 FY2020 FY2021 FY2022 FY2023
Scope1
(Direct emissions from use of fuels such as city gas)
14 25 28 24 25★
Scope2
(Indirect emissions from use of purchased electricity and heat)
Location based method 1,203 1,198 1,178 1,109 1,132★
Maket based method - - - - 911★
Total Scope 1+Scope 2 Location based method 1,217 1,223 1,207 1,133 1,157★
Maket based method - - - - 935★

2. Boundary of Data

Sojitz Corporation: Head office, Kansai Office, and branches (Hokkaido, Tohoku and Nagoya)

3. CO2 Emissions factors

For electricity
Location based method: We use the actual emission factors announced by the Electric Power Council for a Low Carbon Society (ELCS)
Market based method: We use the adjusted emission factors of each electric power company (published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry in December 2023).
Emission factors used for city gas is as specified by the Act on Promotion of Global Warming Countermeasures.
At the Kansai Office, we utilize CO2-free electricity through non-fossil fuel certificates supplied by the owner of the building.

Sojitz Group’s CO2 Emissions

1. Data and Results

(unit:t-CO2e)

  FY2019 FY2020 FY2021 FY2022 FY2023
Scope1
(Direct emissions from use of fuels such as city gas)
979,348 721,934 721,769 751,233 577,458★
Scope2
(Indirect emissions from use of purchased electricity and heat)
Location based method 152,108 206,283 219,180 206,851 207,278★
Maket based method - - - - 204,475★
Total Scope 1+Scope 2 Location based method 1,131,456 928,217 940,948 958,084 784,736★
Maket based method - - - - 781,933★

2. Boundary of Data

Sojitz Corporation, all domestic and overseas consolidated subsidiaries, and unincorporated joint ventures subject to reporting under the operational control approach

  • Emissions of greenhouse gases(CO2) from energy sources

3. Target for CO2 Emissions Reduction

Group companies in Japan including Sojitz Corporation aim to reduce domestic CO2 emissions by a 1% reduction rate per fiscal year.

4. CO2 Emissions factors

Units of heat produced and the emission factors are calculated using the standards found in the “Act on the Rational Use of Energy” and “Act on Promotion of Global Warming Countermeasures.”
For electricity,
Location based method: In Japan, we use the actual emission factors announced by the Electric Power Council for a Low Carbon Society (ELCS) . Overseas, we use the factors according to country, as published by the International Energy Agency (IEA)
Market based method: We use the factors of each electric power company in principle, but if it is not available, use the emission factors based on location based method.
At the Kansai Office, we utilize CO2-free electricity through non-fossil fuel certificates supplied by the owner of the building.
Previous years' data has been revised to reflect a revision of the boundary of data collection

Sojitz Group's CO2 Emissions - Changes in Output

(unit:t-CO2e per person)

FY2019 FY2020 FY2021 FY2022 FY2023
59.6 46.9 44.5 45.3 34.3

(CO2 emissions by Sojitz Group companies worldwide, including Sojitz Corporation,divided by the number of employees belonging to consolidated subsidiaries worldwide)

CO2 emissions for supply chains in the power sector (Scope 1, Scope 2, and Scope 3)

1. Data and Results (FY2023)

Thermal coal

Scope Emission volumes
(t-CO2e)
Calculation methods / Other
Scope 1 and 2 23,065 Sojitz Corporation, all domestic and overseas consolidated subsidiaries, and unincorporated joint ventures subject to reporting under the operational control approach.
category(*)
Scope3 1 Purchased goods and services 591,429 Calculated by multiplying the production of thermal coal traded by Sojitz by an emissions factor.
2 Capital goods 947 Calculated by multiplying the consolidated subsidiary's capital investment by an emissions factor.
3 Fuel- and energy-related activities
(not included in scope 1 or scope 2)
3,244 Calculated by multiplying the consolidated subsidiary's fuel and electricity consumption by emissions factors.
4 Upstream transportation and distribution 130,244 Calculated by multiplying the sold thermal coal traded by Sojitz (including that from the mines in which Sojitz holds equity interests) by transportation distance and emissions factors, or by multiplying fuel consumption by emissions factors. Transportation distance is calculated up until the trader in the case where the sales destination is a trader and Sojitz is unable to ascertain the destination beyond them.
5 Waste generated in operations 0 Calculated by multiplying the waste generated in operations by an emissions factor.
6 Business travel - -
7 Employee commuting - -
8 Upstream leased assets - Not applicable based on the specific attributes of the business
9 Downstream transportation and distribution - -
10 Processing of sold products - Not applicable based on the specific attributes of the business
11 Use of sold products 11,962,667 Calculated by multiplying the thermal coal traded by Sojitz by an emissions factor.
12 End-of-life treatment of sold products - Not applicable based on the specific attributes of the business
13 Downstream leased assets - Not applicable based on the specific attributes of the business
14 Franchises - Not applicable based on the specific attributes of the business
15 Investments - Scope 1 and Scope 2 emissions of the coal mines in which Sojitz holds equity interest.
Total 12,688,531
Total for supply chain 12,711,596★
  • Supply chain categories are in accordance with established GHG protocol

Oil & Gas

Scope Emission volumes
(t-CO2e)
Calculation methods / Other
Scope 1 and 2 27,931 Sojitz Corporation, all domestic and overseas consolidated subsidiaries, and unincorporated joint ventures subject to reporting under the operational control approach.
category(*)
Scope3 1 Purchased goods and services - Not applicable based on the specific attributes of the business
2 Capital goods - -
3 Fuel- and energy-related activities
(not included in scope 1 or scope 2)
4,102 Calculated by multiplying the fuel and electricity consumption of the consolidated subsidiaries operating power plants by emissions factors.
4 Upstream transportation and distribution - Not applicable based on the specific attributes of the business
5 Waste generated in operations - -
6 Business travel - -
7 Employee commuting - -
8 Upstream leased assets - Not applicable based on the specific attributes of the business
9 Downstream transportation and distribution - Not applicable based on the specific attributes of the business
10 Processing of sold products - Not applicable based on the specific attributes of the business
11 Use of sold products - Not applicable based on the specific attributes of the business
12 End-of-life treatment of sold products - Not applicable based on the specific attributes of the business
13 Downstream leased assets - Not applicable based on the specific attributes of the business
14 Franchises - Not applicable based on the specific attributes of the business
15 Investments 1,471,140 The sum of the emissions from the power plants of the companies in which Sojitz holds equity interest, calculated by multiplying the fuel and electricity consumption by emission factors, and the emissions calculated by multiplying the production of oil and gas by emission factors.
Total 1,475,242
Total for supply chain 1,503,173★
  • Supply chain categories are in accordance with established GHG protocol

2. Boundary of Data

Power sector supply chain (Sojitz Group’s supply chain related to thermal coal interests, thermal coal sales, and oil and gas power generation-related businesses)
In order to assess risks related to decarbonization, Sojitz conducts analysis of CO2 emissions for the entire supply chain (Scope 1, Scope 2, and Scope 3). We prioritize refining our quantitative data in the power sector as it accounts for high CO2 emissions and has a large-scale impact on our business.

3. CO2 Emissions factors

Calculated with the emission factors specified in the “Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain," and "Act on Promotion of Global Warming Countermeasures" published by the Ministry of Economy, Trade, and Industry and the Ministry of the Environment.

CO2 emissions for supply chains in the steel sector (Scope 1, Scope 2, and Scope 3)

1. Data and Results(FY2023)

Coking coal

Scope Emission volumes
(t-CO2e)
Calculation methods / Other
Scope 1 and 2 95,857 Sojitz Corporation, all domestic and overseas consolidated subsidiaries, and unincorporated joint ventures subject to reporting under the operational control approach.
category(*)
Scope3 1 Purchased goods and services 105,959 Calculated by multiplying the production of thermal coal traded by Sojitz by an emissions factor.
2 Capital goods 10,414 Calculated by multiplying the consolidated subsidiary's capital investment by an emissions factor.
3 Fuel- and energy-related activities
(not included in scope 1 or scope 2)
12,297 Calculated by multiplying the consolidated subsidiary's fuel and electricity consumption by emissions factors.
4 Upstream transportation and distribution 55,347 Calculated by multiplying the sold coking coal traded by Sojitz (including that from the mines in which Sojitz holds equity interests) by transportation distance and emissions factors, or by multiplying fuel consumption by emissions factors. Transportation distance is calculated up until the trader in the case where the sales destination is a trader and Sojitz is unable to ascertain the destination beyond them.
5 Waste generated in operations 1 Calculated by multiplying the waste generated in operations by an emissions factor.
6 Business travel - -
7 Employee commuting - -
8 Upstream leased assets - Not applicable based on the specific attributes of the business
9 Downstream transportation and distribution - -
10 Processing of sold products - Not applicable based on the specific attributes of the business
11 Use of sold products 6,162,928 Calculated by multiplying the coking coal traded by Sojitz by an emissions factor.
12 End-of-life treatment of sold products - Not applicable based on the specific attributes of the business
13 Downstream leased assets - Not applicable based on the specific attributes of the business
14 Franchises - Not applicable based on the specific attributes of the business
15 Investments 283,133 Scope 1 and Scope 2 emissions of the coal mines in which Sojitz holds equity interest.
Total 6,630,080
Total for supply chain 6,725,937★
  • Supply chain categories are in accordance with established GHG protocol

2. Boundary of Data

Steel making sector supply chain (Sojitz Group’s supply chain related to coking coal interests and coking coal sales)
In order to assess risks related to decarbonization, Sojitz conducts analysis of CO2 emissions for the entire supply chain (Scope 1, Scope 2, and Scope 3). We prioritize refining our quantitative data in the sector as it accounts for high CO2 emissions and has a large-scale impact on our business.

3. CO2 Emissions factors

Calculated with the emission factors specified in the “Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain," and "Act on Promotion of Global Warming Countermeasures" published by the Ministry of Economy, Trade, and Industry and the Ministry of the Environment.

Sojitz Corporation’s Scope 3 Emissions

Logistics-related CO2 Emissions

1. Data and Results

See the graph below to view Sojitz Corporation’s freight transport-related CO2 emissions in Japan, where Sojitz Corporation is classified as the owner of the goods according to the Energy Conservation Law.

2. Initiatives

Energy reduction initiatives include modal shifts, selecting the most appropriate type of vehicle, and strategically selecting transportation routes.

CO2 emissions resulting from overseas business trips

1. Data and Results

(unit:t-CO2e)

FY2019 FY2020 FY2021 FY2022 FY2023
2,828 33 178 1,266 1,718

2. Boundary of Data

Refers to flights to/from Japan taken by Sojitz Corporation employees. We have divided business trip destinations into six areas and selected a major airport from each area to use in determining distances for the calculation of passenger kilometer data.

3. CO2 Emissions factors

Calculated with the emission factors specified in the "Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain," published by the Ministry of Economy, Trade, and Industry and the Ministry of the Environment.

CO2 emissions resulting from commuting

1. Data and Results

(unit:t-CO2e)

FY2019 FY2020 FY2021 FY2022 FY2023
472 722 756 702 743

2. Boundary of Data

Emissions from trains and buses used by Sojitz Corporation employees.

3. CO2 Emissions factors

Calculated with the emission factors specified in the "Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain," published by the Ministry of Economy, Trade, and Industry and the Ministry of the Environment.

(CO2 emissions by Sojitz Group companies worldwide, including Sojitz Corporation,divided by the number of employees belonging to consolidated subsidiaries worldwide)

  • *Approach To Reducing Interests

    Setting FY2018 as the base year, Sojitz plans to reduce its total interests in thermal and coking coal at a rate that exceeds the reduction rate in seaborne trade of coal as described in the 1.5℃ scenario.

Scope4/Avoided Emissions

Approach
  • Scope4 (avoided) emissions refers to the amount of CO2 reduced due to products and services produced by businesses.
  • Sojitz sees the transition to a decarbonized society as an opportunity to pursue innovations for CO2 collection and reduction in order to increase its total Scope4 (avoided) emissions.
Action
  • Sojitz Group will conduct supply chain analysis, use the results from the analysis to identify high risk areas in its supply chain (areas easily affected by the pressure to reduce CO2 emissions or face the threat of being replaced), and then undertake qualitative analysis to create new avoided emission business opportunities in risk areas which in turn reduces CO2 emissions.
  • Under Scope4, Sojitz Group will undertake quantitative analysis of significant areas in the power sector in the same manner as Scope3.
  • <Accumulation of Scope4 (Avoided) Emissions>

    For example, in the case of renewable energy businesses, the difference between the average CO2 emissions from electricity generation in a country (unit = CO2 volume / kwh), and the CO2 emissions of our renewable energy business (zero) is the amount of avoided emissions.

Calculation method: (CO2 emissions per kwh in the country – CO2 emissions per kwh in the Sojitz project ) × amount of power generated by the Sojitz project

  • Note: This is just an example, as the calculation standard is currently under consideration by the ISO.

<Scope4 Emissions in the Power Sector>

Avioded emission type Scope4 amount
(Unit:t-CO2)
1 High-efficiency gas-fired power generation 1,690,000
2 Power generation from renewable resources* 720,000
  • Power generation from renewable resources includes the generation of solar, wind, and biomass power.

Approach To Our Power Generation Business

Sojitz will limit CO2 emissions efficiency to below the level required by the 1.5℃ scenario.

Approach
  • Power generation from renewable resources is unstable, and thermal power generation is necessary to support the transition period to decarbonization.
  • Sojitz is focusing on gas-fired power generation projects, especially in Asia, where coal and diesel power generation is prevalent.
  • Sojitz will control its CO2 emissions efficiency (CO2/kWh) of the Group’s thermal power generation to below the level required by the 1.5℃ scenario.*
  • Sojitz will consider the measurement of Scope4 (avoided) emissions in these business regions as a result of these projects.
  • Sojitz will conduct scenario analysis of its assets, and monitor concerns about the potential of those assets to become stranded.
  • *<Limiting Our Emissions Factor>

    The emissions factor is the amount of CO2 per amount of electricity generated. Formula: Emissions factor = CO2 emission quantity / electricity generated.
    The green line below shows the decreasing emissions factor requirement under the 1.5℃ scenario over time. Sojitz will keep the value of its own emissions factor below the requirements of the 1.5℃ scenario.

We will continue to create renewable resource power generation projects for the benefit of society.

Approach
  • Sojitz intends to continuously generate the absolute amount of power from renewable resources that society requires.
  • Sojitz has been promoting a revolving model in which it not only owns, but also reinvests in some of its projects from funds recovered through divestments.
  • We will consider disclosing the cumulative total amount of power generated from renewable resources by Sojitz Group along with measuring our Scope4 (avoided) emissions.

Asset Transformation

Increasing “Green” Portion of Assets

  • <Approach>

    Reduce share of carbon-heavy Brown businesses, increase share of Green Businesses that contribute to CO2 reduction in society and “Transition Businesses” which support the transition, so as to make overall business portfolio greener. Global debate still ongoing on definitions of green, brown, and transition. Developments to be monitored, including the most-advanced EU taxonomy.