(Head office: Fukuoka City, Fukuoka Prefecture; Representative Director: Shunsuke Managi; hereafter "aiESG") has announced the launch of a new product, "aiESG's Supply Chain Management System," to help companies strengthen their supply chains in response to growing geopolitical and trade regulation risks around the world.Supply Chain Vulnerability Analysis SolutionWe are pleased to announce that we have started offering

■Background

Conflicts and tightening trade restrictions around the world are having a serious impact on corporate supply chains. We at aiESG believe that objective, data-driven risk assessment and strategic decision-making are essential in these uncertain times,ESG analysis and assessment service "aiESG ConsultingWe have expanded our supply chain vulnerability analysis solution as a service of

■Overview of New Solution

at this timeSupply Chain Vulnerability Analysis."The solution is to analyze the following and propose scenarios to support corporate management decision-making

1. geopolitical price impact analysis 

Using proprietary machine learning models, we quantify the impact of geopolitical risk on commodity prices by commodity item.

• Analyzed by Crude oil, etc.energyand coffee, etc.soft commodityand wheat, etc.grain, ,metalIt supports spot prices for 40 major commodities, including
• Value Provided by By calculating price sensitivity, the system supports specific data-driven decisions, such as whether financial hedging or supplier diversification is more effective.

(2) Transportation and distribution analysis 

Utilize global maritime transportation data to visualize geographic risk in the supply chain and calculate detour costs.

• Analysis:. Mapping the extent to which procurements pass through transportation chokepoints with high geopolitical risk, such as the Suez Canal and the Strait of Malacca.
• Value Provided by Cost impact of detour routes due to conflicts, etc. is also calculated. The vulnerability of supply routes can be specifically assessed, enabling route optimization and optimal allocation of resources.

3. analysis of the volatility index of the trade environment

We compare and evaluate the regulatory stability of the source countries of raw materials and identify risks that may arise due to changes in the trade transaction environment.

• Analysis:. We analyze the nature and historical frequency of trade interventions by major exporting countries for specific commodity categories to identify volatility.
• Value Provided by Categorizing exporting countries based on the stability of their trade policies and identifying countries with frequent interventions and countries with stable regulatory environments will assist in the development of a risk-based procurement strategy.

By combining the above analysis, a company can determine the "value" in its supply chain.price fluctuations"logistical jumble"trade restrictionsThe new system enables the integrated evaluation and management of the three major risks of "procurement," and enables the formulation of highly effective procurement strategies based not only on qualitative risk recognition, but also on quantitative data.

Analysis of Australian Wheat: A Case Study: Summary

It is an important wheat supplier to the Japanese market, most recently over 20%, and imports have been increasing in recent years.

• Geopolitical price impact analysis: moderate to low

An 11 TP3T increase in oil prices could increase wheat prices by 0.41 TP3T over the long term during the 13-month adjustment period.

• Negotiated Distribution Analysis: Low Degree

Exports of wheat for transportation are likely to originate from ports in the country's northwest (see figure on the right), and as a maritime transportation route, it passes through the South China Sea, which remains tense, and thus poses certain risks.

• Trade environment volatility index: very low

Australia has had only one regulatory or institutional change in wheat trade since 2009, a beneficial shift for exports in the form of a reduction in export-related taxes in 2012.

▼ Click here for more information on the Supply Chain Vulnerability Analysis document.

aiESG will continue to promote the development of solutions that contribute to sustainable corporate growth by leveraging its proprietary AI technology and ESG evaluation know-how.

■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 Co. pr@aiesg.co.jp