#Japan #Tokyo #Booost #Sustainability ERP #UK CBAM

Booost Responds to UK's Carbon Border Adjustment Mechanism

Booost Inc., based in Shinagawa, Tokyo, is a leader in sustainability solutions, particularly known for providing the top market share Sustainability ERP, known as "booost Sustainability." On March 23, 2026, Booost submitted public comments to the UK government addressing practical issues that Japanese companies may face regarding the Carbon Border Adjustment Mechanism (UK CBAM) secondary regulations.

Background of the UK CBAM Public Comments

As part of the newly applied sustainability reporting standards (SSBJ Standards), Japanese companies will be required, starting from the fiscal year ending March 2027, to integrate financial and non-financial disclosures in their securities reports. This regulatory obligation complicates the reporting schedules since financial and non-financial data need to be prepared simultaneously. To manage this effectively, it is essential for departments like Investor Relations, sustainability, and Human Resources to collaborate strategically and efficiently in building a robust reporting system.

Key Points of the Public Comments

In light of the aforementioned obligations, Booost made several critical comments regarding the UK CBAM:

1. Institutional Asymmetry with EU CBAM: The differences in calculation methods, reporting requirements, and data structures between the EU and the UK may necessitate dual compliance for companies. This can lead to increased burdens on ERP systems and internal management processes. Furthermore, in the absence of mutual recognition in verification rules with the EU, there could be a risk of double verification, which might disproportionately affect smaller businesses in terms of both cost and operational complexity.

2. Handling of Subsidies under Carbon Price Relief: The framework for deducting previously paid carbon prices overseas lacks clarity, especially concerning the treatment of subsidies and refunds. It is essential to establish clear criteria on how Japan's Green Transformation (GX) policies are evaluated within this context.

3. Certification Requirements for Third-Country Carbon Prices: The requirements for recognizing carbon prices and emissions trading systems in other countries are vague. To ensure predictability regarding the financial impacts on companies, there is an urgent need for transparency in establishing stringent standards.

Booost is committed to making Japan a globally recognized leader in sustainability transformation (SX). The company is dedicated to fostering an environment where corporations can effectively implement sustainable practices. They intend to actively utilize forums for expressing opinions from various governments to accurately communicate the challenges and proposed solutions that Japanese companies face in adapting to international environmental regulations, thereby contributing to global policy formation.

Team Profiles

Tetsushi Uemura, Domain Expert

With a Ph.D. and multiple professional certifications, Tetsushi has managed over 200 projects related to infrastructure development and sustainable growth at a Japanese think tank. He earned his Ph.D. from the London School of Economics (LSE) and has worked on analyzing European environmental regulations since 2020. He has also served as a knowledgeable member of the domestic committee on CBAM response organized by Japan’s Ministry of Economy, Trade and Industry.

Etsuin Kin, Professional Services

Etsuin previously worked as an analyst at an ESG evaluation agency, specializing in assessing and scoring corporate ESG performance. Utilizing their expertise in international disclosure standards, Etsuin currently focuses on providing support for Scope 3 calculations and researching both domestic and international regulatory trends since joining Booost in August 2024.

Project Aimed at Solving the Sustainability 2026 Issue

Many companies are facing delays in meeting the new obligations for disclosing sustainability-related financial information, resulting in a lack of urgency and rising concerns that this may ultimately depreciate corporate value. This scenario characterizes the "Sustainability 2026 Issue." To address this, Booost has initiated the "Towards a Leading SX Nation Project" project in November 2024, aiming to enhance the global presence of Japanese firms through promoting SX and increasing enterprise value.

This project involves organizing events and support measures for both operational staff and executives to ensure a comprehensive approach to sustainability.

About Booost Inc.

Booost operates the leading sustainability ERP solution, "booost Sustainability," which complies with international disclosure standards, addressing diverse data points related to the environment, society, and governance. The platform automates the collection and aggregation of sustainability-related financial data and enables real-time monitoring, equipped with global data governance functionalities.

Since its launch, Booost has garnered high praise from numerous enterprises, particularly those exceeding 500 billion yen in annual revenue. As of December 2025, it has been implemented in about 6,500 companies across more than 95 countries. The company also conducts sustainability consulting to assist in executing projects aimed at enhancing corporate value.

This comprehensive suite of features is designed to empower organizations by enabling effective management of sustainability-related financial disclosures and activities.

For more information, visit Booost Inc. website.