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Part 2: What services does aiESG provide?

  • Introduction to aiESG

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Hello, we are an ESG Tech startup from Kyushu University! We are an ESG Tech startup from Kyushu University.

In this column, we will introduce global ESG trends, our services, and case studies for those who are "interested in aiESG," "want to conduct ESG analysis but don't know what to do," or "what is ESG in the first place? This column introduces global trends in ESG, our services, and case studies. We will also regularly introduce the voices of our staff members who work at our company.
In the second column,Our ServicesWe will provide 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 the first of its kind in the world.
In recent years, ESG-conscious management has become increasingly important for the survival of a company (seeFirst Column(See Section 2.1.2.).

However, it was not an easy task to obtain data that would enable the company, its corporate clients, and investors to objectively determine whether the company was managing its operations in an ESG-conscious manner.
Our solution uses big data on global ESG supply chains accumulated by our founders, Professor Managi and Associate Professor Keeley of Kyushu University, based on their 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 objectively presented.


Challenges of Conventional ESG Assessment

Even with the trend toward comprehensive ESG initiatives that go back not only to individual companies but also to their supply chains, there were still a number of issues to be addressed. For example, even if a company was implementing advanced ESG initiatives, because it was not possible to objectively evaluate the content of these initiatives, it could not appeal to investors and consumers about the merits of its initiatives, which did not lead to the promotion of financing or purchases, and ESG initiatives were sometimes disregarded even within the company. In addition, ESG initiatives were sometimes neglected within the company. In addition, the initiatives required to build a sustainable supply chain were wide-ranging, and the collection of data on suppliers dating back to the primary and secondary upstream stages was both time-consuming and costly.


Features of aiESG

0 Comprehensive ESG analysis and visualization materials

At aiESG, it goes back to the supply chain overseas,ESG assessment of 15,979 different products and services based on 3,290 indicators of comprehensive ESG items such as human rights and environmental destruction until products are supplied.The following is an example of a product that can be used in this way.


Figure 1 List of aiESG assessment items

Indicators range from wages and child labor, gender equality (closing the gender gap), greenhouse gas emissions, and consumption of water and mineral resources.

In addition, it has geographic information, which is difficult to obtain with conventional LCA (Life Cycle Assessment: a method for visualizing 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). ESG hotspots (areas of high risk) can be identified.

Figure 2: Map image showing the supply chain impact of producing one car in Japan


aiESG provides scientifically supported data and compelling visualization materials to support companies in their ESG-aware investor relations efforts.

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 assessment has been the cost of collecting the data required for ESG analysis at aiESG,Only cost structure data or physical quantity data for productsand achieved an overwhelming reduction in analytical costs by making full use of data science.


0How to use ESG assessment results

aiESG identifies (1) the hierarchy and business activities of suppliers and (2) the regions where the suppliers are located, respectively, with regard to ESG issues of suppliers based on product cost structure data and physical quantity data. Companies that have undergone ESG evaluations are prioritized for investigation of items identified as high-risk due to lack of consideration for society and the environment, and in some cases are able to make decisions such as reviewing suppliers, etc. Comparisons can also be made with industry averages regarding the degree of achievement of ESG items, allowing companies to recognize their strengths, to link them to appeals to investors and consumers, and to clarify the issues they face. It is also possible to compare your company's level of achievement in ESG items with industry averages, recognize your company's strengths and appeal to investors and consumers, and identify areas for improvement by identifying your company's problem areas.


Validity and reliability of the 0 evaluation

The validity and reliability of the evaluation will be verified and certified (CARE certification) by a third-party international academic organization (the Measurement Sustainability Organization), taking full advantage of its strength as a university-launched venture. (Figure 6).

Figure 6: CARE Certification Criteria Details


(aiESG's) future

As ESG management has become mainstream in recent years, companies are being asked to change their business models to view ESG response costs as an investment. The rapid progress of mandatory environmental and human rights due diligence (ongoing efforts to prevent and correct negative impacts on human rights and the environment in business activities) must be confusing for many, but the establishment of sustainable supply chains and the strengthening of related information disclosure can also be an opportunity to increase corporate value. However, the establishment of a sustainable supply chain and the strengthening of related information disclosure can be an opportunity to enhance corporate value.

Through the world's first comprehensive product- and service-level lifecycle sustainability analysis, aiESG can help you significantly reduce the risk of loss and seize opportunities for growth in your company, products, and services.


Related page

● First column:Background of starting aiESG

●News:World's First! ESG analysis service at the product and service level is now available.

●News:aiESG and Deloitte Tohmatsu begin collaboration to provide real corporate value enhancement services based on ESG evaluation of products and services.

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The Role of aiESG in Realizingthe Ideals of Society and Business.
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