Approximately 480K tons of CO2 emissions avoided by transactions on Mercari and approximately 8.8% of Japan’s yearly textile waste avoided by listings
Mercari, Inc. (“Mercari”) published its FY2022.6 Sustainability Report (“Sustainability Report”) today.
Mercari aims to contribute to realizing a society where finite resources are used sparingly and everyone can create new value. As part of this effort, Mercari carries out various activities that have a positive impact on the environment and on society through its businesses and operations, and since 2020, we have published a yearly Sustainability Report summarizing these activities.
In the FY2022.6 Sustainability Report, we calculated and disclosed our positive impact on the environment (the amount of contribution to the environment created through Mercari’s business activities) for the first time.
The report also details the results of our initiatives for each of our material topics. For our first material topic, Creating a Circular Economy/Mitigating Climate Change, we previously set targets regarding greenhouse gas emissions. This fiscal year, we achieved our target of reducing Scope 1+2 emissions by 75% and set new targets of reducing Scope 1+2 emissions by 100% and reducing Scope 3 emissions related to added value by 51.6% by 2030. These targets are set in accordance with Science Based Targets (SBT1), and we plan to obtain SBT certification for these targets by June 2023.
Starting this year, we are also disclosing information based on TCFD recommendations2.）
1 Science Based Targets refers to greenhouse gas emissions reduction targets set by our company in accordance with the standards called for by the Paris Accord (limiting global warming to 1.5°C–2°C from pre-industrial levels), to be achieved in 5–15 years’ time.
2 Task Force on Climate-related Financial Disclosures
Positive Impact Overview
After calculating CO2 emissions for apparel categories1, as the category type with the largest number of transactions on the service, we were able to estimate that users’ transactions of apparel on Mercari JP and Mercari US were able to avoid approximately 480K tons of CO2 emissions in 2021. This is equivalent to approximately 200 covered baseball stadiums2. In the last three years, we saw a total of approximately 1.4M tons of avoided CO2 emissions in the apparel categories alone. We believe that we are steadily contributing to the creation of a circular economy while continuing to grow our business.Additionally, users avoided approximately 42K tons of apparel waste (by weight) by listing items on Mercari JP instead of throwing them away.4 This is approximately 8.8% of the total 480K tons of apparel thrown away yearly in Japan.5
By buying and selling apparel that is no longer worn on Mercari instead of throwing it away, users can reduce the burden on the environment and move closer to creating a circular economy.
1 Includes secondhand items that had been sold under the Women’s, Men’s, and Kids’ categories for both Mercari JP and Mercari US over the three years from April 2019 to March 2022. Calculations looked only at the apparel categories as a first survey, since apparel makes up the largest volume of transactions on Mercari and the data was readily available. (Supervised by: Moon Dami, Project Researcher at the University of Tokyo’s Value Exchange Engineering Social Research Division) As a long-term project, we plan to continue to research the environmental impact of secondhand item use for each manufacturing category.
2 CO2 emissions avoided on the assumption that items bought and sold under the categories in question are used in place of new items, calculated by applying an adjustment factor and with consideration for the item lifecycle (item production, distribution, use, and disposal). (CO2 emissions that can be avoided = (CO2 emissions when new items are used to an equivalent level of that of secondhand items) – (CO2 emissions from use of secondhand items)). Per-unit CO2 emissions for apparel taken from the Ministry of the Environment’s data. (Source: Ministry of the Environment “Results of Survey on Fashion & the Environment.” https://www.env.go.jp/policy/sustainable_fashion/goodpractice/case25.pdf ) Also used Ministry of the Environment’s data for estimates found in the results of our analysis of CO2 emissions for Mercari US.
3 CO2 equivalent to one covered baseball stadium: 2,436 t-CO2 (covered baseball stadium volume: 1.24M KL; 1 mol = 22.4 L = 44 g-CO2; Source: Tokyo Dome https://www.tokyo-dome.co.jp/faq/dome/ )
4 Calculated based on the number of items listed in the Women’s, Men’s, and Kids’ categories for both Mercari JP and Mercari US from April 2021 to March 2022. Weight of apparel taken from the Ministry of Economy, Trade and Industry’s data. (Source: Ministry of Economy, Trade and Industry “Survey on Measures to Revitalize the Textile and Clothing Industry” https://warp.da.ndl.go.jp/collections/info:ndljp/pid/1621320/www.meti.go.jp/report/downloadfiles/g20523b01j.pdf )Also used the Ministry of Economy, Trade and Industry’s data for weight of apparel for Mercari US.
5 Ministry of the Environment, “Sustainable Fashion” (https://www.env.go.jp/policy/sustainable_fashion/ )
Aiming for a “Planet Positive” World
Electric power, naturally occurring materials, and the planet’s other resources form an essential foundation not only for people’s lives, but for Mercari to continue its business. However, it’s said that humankind is currently consuming our natural resources at a rate 1.6 times faster* than they can renew. We believe that creating a circular economy, where we use our limited resources smartly, is a fundamental mission we must complete.
Mercari is a marketplace where items that someone no longer needs are passed on to someone else who needs them. That means that the more Mercari users we have, the more able we are to affect positive impact on the environment. From the experience of reusing items and increasing interest in sustainability, people will gradually take on a more sustainable approach to buying, using, and disposing of items, ultimately leading to a new form of production/sales and changes all along the value chain. We believe that by encouraging this change around the world, we not only help achieve a circular economy, but help reduce environmental burden and mitigate climate change.
The concept of “planetary boundaries,” referring to the limits of our earth’s resources, is becoming more widespread. We use the word “planet positive” to express our desire to help solve environmental issues by continuing to generate positive impact on the environment through our business. Mercari will continue to pursue “planet positive” to create a world where anyone can demonstrate their value.
*Living Planet Report 2020, WWF (https://www.wwf.or.jp/activities/data/lpr20_01.pdf )
Through our business and corporate activities, Mercari will continue to contribute to realizing a society where finite resources are used sparingly and everyone can create new value.