Hello! We are an ESG Tech start-up from Kyushu University.
In this column, we will introduce aiESG trends, our services and case studies for those who are interested in aiESG, want to conduct ESG analysis but do not know what to do, or what ESG is all about in the first place. This column introduces global trends in ESG, our services and case studies. We will also regularly update you with the voices of our staff.
In the second column,Our servicesThis section provides an overview of the
We at aiESG offer a comprehensive ESG assessment platform that traces back through the entire supply chain in products and services. This is a world-first initiative.
In recent years, ESG-conscious management has become increasingly important for the survival of companies (see1st column.(ibid.).
However, it has not been easy to obtain data to help companies, businesses and investors objectively determine whether they are managing their business in an ESG-conscious manner.
Our solution uses big data on global ESG supply chains accumulated by the founders, Professor Managi and Associate Professor Keeley of Kyushu University, based on years of ESG research with international and academic authorities such as UN report representatives, and has been difficult to quantitatively evaluate until now. ESG data is presented objectively.
Challenges of traditional ESG assessment
Even with the trend towards comprehensive ESG initiatives, not only on a company-by-company basis but also going back to its supply chain, there have been a number of challenges. For example, even if a company has implemented advanced ESG initiatives, it is not possible to objectively evaluate the content of these initiatives, which means that it is not possible to promote the merits of these initiatives to investors and consumers, which may not lead to the promotion of financing or purchases, and ESG initiatives are sometimes disregarded within the company. In addition, ESG initiatives were sometimes taken lightly within the company. In addition, the initiatives required to build a sustainable supply chain were wide-ranging, and it was time-consuming and costly to collect data on suppliers dating back to the primary and secondary upstream.
Features of the aiESG
0 Comprehensive ESG analysis and visualisation material
aiESG traces back to overseas supply chains,ESG assessment of 15,979 different products and services based on 3,290 indicators of comprehensive ESG items on human rights and environmental destruction before products are supplied.It is possible to do so.
Figure 1 List of aiESG assessment items
Indicators range from wages and child labour, gender equality (closing the gender gap), greenhouse gas emissions and consumption of water and mineral resources.
It also has geographical information, which is difficult to obtain with conventional LCA (Life Cycle Assessment: a method for visualising environmental impact), and can trace back not only direct suppliers but also secondary, tertiary and upstream suppliers to identify hot spots (high risk areas) for ESG items (environmental, social and corporate governance). The information can be used to identify hotspots (areas of high risk) for ESG items (environmental, social and corporate governance).
Figure 2: Map image showing the supply chain impact of producing one car in Japan
aiESG provides scientifically supported data and compelling visualisations to support companies in their ESG-aware investor relations.
Figure 3 Example of aiESG analysis results dashboard (distribution of human rights violation risks worldwide)
Figure 4: Examples of comparisons in the global distribution of human rights violation risks
Figure 5.Example of ESG score calculation at product level
0 Low-cost analysis
Another traditional challenge in ESG assessments has been the cost of collecting the data required for ESG analysis at aiESG,Only cost structure data or physical quantity data for productsand has achieved overwhelming analytical cost savings through the use of data science.
0How to use ESG assessment results
aiESG identifies the ESG issues of suppliers based on product cost structure data and physical quantity data for (1) the hierarchy and business activities of the supplier and (2) the geographical area where the supplier is located, respectively. Companies that have undergone ESG assessments are able to prioritise items that have been identified as high risk due to a lack of consideration for society and the environment and, in some cases, obtain information to make decisions such as reviewing their suppliers, etc. They can also compare their level of achievement in ESG items with the industry average, recognise their own strengths, and make clear their issues to investors and consumers. It can also be used to identify your company's strengths and appeal to investors and consumers, as well as to identify areas for improvement by clarifying your company's problems.
0 Validity and reliability of the assessment.
The validity and reliability of the assessment will be verified and certified (CARE certification) by a third-party international academic organisation (the Metrological Sustainability Organisation), making the most of its strength as a university venture. (Fig. 6).
Figure 6: Details of CARE certification criteria
(aiESG's) future.
With ESG management about to become mainstream in recent years, companies are being asked to change their business models to view ESG response costs as an investment. While there must be a lot of confusion about the rapidly advancing mandatory environmental and human rights due diligence (ongoing efforts to prevent and remedy negative impacts on human rights and the environment in business activities), the establishment of sustainable supply chains and the strengthening of related information disclosure can also be an opportunity for companies to increase their value. The following are some of the key issues that need to be addressed.
Through the world's first comprehensive product- and service-level lifecycle sustainability analysis, aiESG can help you significantly reduce the risk of loss in your company, products and services and seize opportunities for growth.
*Related page*.
● First column:Background to the initiation of aiESG.
●News:World's first! ESG analysis service at product and service level launched