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NEC will launch “NEC Sustainability Intelligence for TNFD” in September of this year as the first in its “NEC Sustainability Intelligence” series of AI services to support corporate sustainability management. This new service will help improve disclosure and develop strategies in response to TNFD (Task Force on Natural Resources Financial Disclosures).
This service uses AI to analyze information from companies’ publicly released integrated reports, sustainability reports, securities reports, websites, etc., and systematically organizes the company’s disclosures in accordance with the four pillars (governance, strategy, risk and impact management, metrics and targets) and 14 items of the TNFD recommendations.
Furthermore, in addition to TNFD sector guidance, we visualize your company’s strengths and weaknesses, areas for improvement, and measures to strengthen in the future through comparative analysis with industry-specific key issues and recommended actions indicated by international initiatives and organizations, as well as disclosures from domestic and international peers and leading companies. Taking into account the different likelihood of natural-related risks materializing in each industry, we support not only the enhancement of disclosures but also the development of effective risk management and strategies.
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In recent years, there has been growing concern about the impact of natural capital and biodiversity loss on business activities. Companies are required to understand their dependence on and impact on nature, as well as the risks and opportunities involved, and to reflect these in their management and business strategies, while also providing highly transparent information disclosure to stakeholders, including investors and business partners.
On the other hand, TNFD compliance involves a wide range of tasks, including understanding TNFD recommendations and sector guidance, evaluating internal disclosures, comparing with other companies’ examples, identifying areas for improvement, and managing internal tasks. Furthermore, natural-related risks manifest in different ways across industries, and if not adequately managed, can lead to business impacts such as procurement constraints, operational shutdowns, increased costs, regulatory compliance, and reputational damage.
Therefore, in addition to the TNFD recommendations, companies are required to continuously monitor the gap between their own initiatives and disclosures, taking into account sector guidance required for each industry and key issues and recommended actions indicated by various international organizations.
Against this backdrop, NEC, under the concept of “client zero” (Note 1), which places itself as the zeroth client, has systematized the know-how and experience gained from implementing its own TNFD compliance into an AI-powered cloud service. Through the provision of this service, NEC will support customers in streamlining their TNFD compliance and enhancing the sophistication of their strategies, taking into account nature-related issues.
SOURCE: PRTimes
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