TOKYO, July 29, 2024 - (JCN Newswire) - NEC Corporation (TSE: 6701) has announced publication of the NEC TNFD Report (2nd Edition), a report disclosing business risks and opportunities related to natural capital(1), including biodiversity, based on the Task Force on Nature-related Financial Disclosure (TNFD) Final Recommendations v1.0(2) issued by the TNFD in September 2023.

NEC set forth a vision for the future of society in the "NEC 2030VISION," which outlines the world around us in three layers: "Environment," "Society," and "Life." With regard to the environment, which is the foundation of all activities, NEC aims for "Living harmoniously with the earth to secure the future" and to contribute to the realization of a decarbonized society, global warming adaptation, and water and food safety through business activities.

In July 2023, NEC became the first company from Japan’s IT industry to issue a TNFD report. This was based on the TNFD Recommendations Beta v0.4 and evaluated NEC’s dependence on and impact on nature both within the company itself and its value chain. The report has now been further revised based on the TNFD Final Recommendations v1.0, for which NEC has been registered as a "TNFD Adopter." The 2nd edition of NEC’s TNFD Report was prepared by approximately 85 employees from 30 departments, mainly volunteer members from various divisions within the NEC Group.

Key points of the 2nd edition:

NEC's business activities are referred to as "direct operations," the suppliers of parts and materials are "upstream" in the value chain, and the customers who have adopted NEC products are "downstream." In collaboration with outside experts, NEC has further assessed its dependence on and impact on natural capital and risks in a comprehensive manner.

  • With regard to risks related to NEC's direct operations, we identified 150 types of NEC Group business activities and selected activities for in-depth risk analysis based on dependence on and impact on nature, as well as the scale and characteristics of the activities. Based on this screening process, the risk management status of the submarine cable business, data center business, and equipment manufacturing business were evaluated and disclosed.
  • We assessed risks in the upstream of the value chain with the cooperation of aiESG, a start-up company from Kyushu University, where we tested a method that utilizes AI and statistical data, such as international input-output tables, to visualize environmental impacts.
  • Regarding efforts to conserve endangered species near NEC's Abiko Plant in Japan’s Chiba Prefecture, in cooperation with Think Nature, a startup company from Ryukyu University(3), we evaluated the biodiversity conservation priorities in Abiko City and surrounding municipalities, and describe the significance of this initiative to the conservation of the local ecosystem.
  • In terms of downstream in the value chain, a concept is presented on how NEC's ICT solutions can contribute to corporate transformation for a nature-positive society. Specifically, the necessity to incorporate environmental information into business activities, such as product planning, design, procurement, production, logistics, and sales is outlined, including:

-Inter-company data sharing throughout the value chain
(Plastics Information Distribution Platform, etc.)

-Enterprise systems that support the use of data in the value chain
("Obbligato" product lifecycle management (PLM) solution, etc.)

-Solutions to reduce environmental impacts and dependencies in the upstream of the value chain
("CropScope" AI-enabled agricultural ICT platform, etc.)

-Consumer-behavior analysis to make environmental efforts economically sustainable
(Causal analysis technology, etc.)

Future development

NEC views itself as an "environmental client zero" and is contributing to corporate nature-positive management by taking the lead in information disclosure and providing services based on its own practical experience to companies that address issues related to natural capital.

(1) The term "biodiversity" is used to refer to the diversity of animals and plants. "Natural capital" consists of water, soil, and air, as well as animals and plants. In this report and press release, the term biodiversity is included in natural capital.
(2) Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations v1.0 https://tinyurl.com/2f4npvb2
(3) Think Nature is a startup that provides consulting and data analysis services, utilizing its developed big data on biodiversity and promoting Japan Biodiversity Mapping Project: J-BMP (https://biodiversity-map.thinknature-japan.com/en/)

About NEC Corporation

NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at www.nec.com.

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