aiESG Inc., a Kyushu University-born startup that provides an AI-driven platform for supply chain ESG assessment, today announced that it has become the first Japanese startup and small-to-medium-sized enterprise (SME) to voluntarily publish a sustainability report aligned with the Taskforce on Nature-related Financial Disclosures (hereinafter; TNFD) framework. While TNFD reporting is gaining traction among large corporations, it remains a significant hurdle for most startups and SMEs. As a provider of ESG evaluation and analysis services, aiESG is tackling this challenge head-on by leading by example. Through this initiative, the company aims to empower all businesses, regardless of size, to integrate ESG principles into their management.

Why is a Startup Publishing a TNFD Report?　

Japan leads the world in the number of organizations registered as "TNFD Adopters," who have committed to making disclosures aligned with the framework. (See: https://tnfd.global/engage/tnfd-adopters-list/) Following the taskforce's launch, the Japanese government has promoted policies for a nature-positive economy, and the Ministry of the Environment announced funding for the TNFD at the COP16 conference in 2024.

Despite the growing importance of ESG disclosures, including those related to natural capital, many Japanese SMEs and startups are unable to take action due to the complexity and resource constraints involved. The process requires extensive effort to collect and organize data from across the entire supply chain and demands specialized expertise, including proprietary evaluation metrics. This creates a substantial burden in terms of time, personnel, and the internal systems required.

In response, aiESG has committed to"serving as a compass for its clients."　Marking its third founding anniversary, the company has voluntarily published its own TNFD-aligned sustainability report. This report demonstrates aiESG's commitment to transparency and accountability—essential qualities for an ESG solutions provider—while offering a practical, real-world example to guide other companies in taking their first steps.

Report Summary: aiESG's Nature-Related Risks and Opportunities

To prepare the report, aiESG applied its own proprietary ESG assessment methodologies to analyze its dependencies, impacts, risks, and opportunities related to natural capital. Following the TNFD's recommended LEAP approach (Locate, Evaluate, Assess, and Prepare), the company visualized environmental and human rights risk hotspots at the country and sector level across its supply chain. This was supplemented with external tools to ensure a comprehensive analysis. As part of its stakeholder engagement, aiESG also conducted an internal survey with employees on nature-related risks, incorporating the findings into its materiality assessment.

1. Identifying Our Own Environmental Footprint

• Business Orientation: As a technology-driven consulting firm, aiESG has no physical product manufacturing or distribution, resulting in limited direct environmental impact (Scope 1).
• Primary Emission Sources: The main sources of greenhouse gas (GHG) emissions are office electricity consumption (Scope 2, approx. 20.3 t-CO₂ annually) and business travel/commuting (approx. 11.2 t-CO₂ annually).
• The Importance of the Supply Chain: The analysis revealed that over 95% of the company's environmental footprint originates from its supply chain, with direct operational impacts being minimal.

2. Key Risks and Opportunities in the Supply Chain

• Water Footprint:　The largest environmental impact factor across the supply chain was the use of cooling water in data centers, which are fundamental to AI development and cloud services.
• GHG emissions:　In addition to its own direct emissions, significant GHG emissions were identified within the information services and R&D sectors of its supply chain.
• Land Use and Physical Risks of Data Centers:　Data centers in the supply chain were found to require vast amounts of land. The analysis also identified physical and reputational risks, with some facilities located in areas of high flood risk (22 in Tokyo, 12 in Osaka) or in close proximity to wildlife conservation areas.

3. Future Goals and Commitments

Based on the identified risks and opportunities, aiESG will focus on the following three areas:

• Water Stewardship:　Seek partnerships with Japanese organizations dedicated to solving social issues around water sustainability to contribute to resource efficiency and the protection of aquatic ecosystems.
• Carbon Footprint Management:　Improve the efficiency of AI model training and invest in credible carbon removal projects to offset emissions associated with business activities.
• Strengthening Internal Skillsets for Annual Disclosure and Improvement:　 Foster a culture of sustainability by establishing a Sustainability Committee, enhancing data collection processes, and implementing company-wide training. aiESG will continuously improve the quality of its ESG analysis and reporting, publishing its progress in annual sustainability reports.

The full report and a Japanese summary are available at:　 

Full text (English):. TNFD Report - Natural Capital Initiatives at aiESG

Japanese abridged version:. TNFD Report - A Responsible Approach to Natural Capital: aiESG Challenges and Strategies

Message from Shunsuke Managi, Representative Director of aiESG Inc. 
Our first sustainability report is more than just a disclosure; it is a declaration of our commitment to integrating ESG considerations into every aspect of our business. At aiESG, we aim to bridge the gap between scientific knowledge and real-world action, transforming data into decisions that drive meaningful change. We sincerely hope this report serves as a confident first step for fellow startups and SMEs on their own voyage toward a sustainable future.

About aiESG

aiESG is a start-up company from Kyushu University that aims to realize a sustainable society through product and service level ESG analysis. Based on many years of international and academic ESG research, including work by UN report representatives, the company offers an ESG assessment platform, "aiESG Flow," which traces back the entire supply chain, and other services. We also provide support services on all aspects of ESG.
Click here to visit our corporate website　https://aiesg.co.jp/)

Company Profile

Company name: aiESG Inc.
Head Office: NMF Hakata Ekimae Bldg. 2F, 1-15-20 Hakata Ekimae, Hakata-ku, Fukuoka City, Fukuoka
Representative Director : Shunsuke Managi
Chief Executive Officer : Daikichi Seki
Business : ESG analysis business at the product/service level
HP :https://aiesg.co.jp/
Establishment : July 2022

For inquiries regarding this matter, please contact:
Public Relations, aiESG, Inc. e-mail: pr@aiesg.co.jp