September 29, 2025

NEC Releases Third Edition of TNFD Report

By ellen

TOKYO, Japan, September 29, 2025 – (JCN Newswire via SeaPRwire.com) – NEC Corporation (NEC; TSE: 6701) has published the third edition of its report summarizing business risks and opportunities related to natural capital, aligned with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).

In creating this report, NEC significantly enhanced the comprehensiveness of site analysis by leveraging the expertise and know-how of its specialized personnel and incorporating it into generative AI and agentic AI. Specifically, NEC analyzed local risks related to water infrastructure at each analysis site—risks that were difficult to grasp using conventional generic tools. Moreover, communication materials were automatically generated and the number of sites subject to detailed analysis were expanded to approximately 2,000 (*1). This enabled dialogue with local stakeholders based on actual conditions. Going forward, NEC plans to further deepen engagement with upstream partners in the value chain.

NEC TNFD Report, Third Edition URL: https://www.nec.com/en/global/sustainability/eco/pdf/NEC-tnfd-en.pdf

In recent years, demand for global disclosure of information on sustainability has rapidly intensified. This requires companies to possess specialized knowledge and handle significant workloads. NEC, with the realization of a sustainable society as its Purpose, is actively engaged in this field.

Since publishing Japan’s first TNFD report in the IT industry in July 2023, NEC has continued its proactive activities, including issuing the second edition of its TNFD report in June 2024 (*2), which reflects the TNFD Final Recommendations v1.0. NEC also contributes to the development of international schemes, participating in activities that include the creation of IT sector guidance for use by the World Economic Forum (*3) and collaborating with TNFD’s Nature Data Public Facility (NDPF, (*4)). Insights gained from these experiences are woven into this report. Furthermore, this TNFD report leverages generative AI and agentic AI. Treating NEC itself as “client zero,” the company first thoroughly utilizes advanced technologies internally, then applies the resulting know-how and insights to help solve customer challenges. This is used not merely for disclosure purposes, but as a tool for minimizing risks and maximizing opportunities.

Benefits of Utilizing Generative AI and Agentic AI

Overview of the Third Edition

1. Deepening and Expanding Nature-Related Risk Assessment

– For approximately 2,000 NEC Group sites and upstream value chain locations, conducting quantitative analysis of water scarcity and flood/storm risks through collaboration with specialized institutions, and enabling water-related local risk analysis using generative AI and Agentic AI.
– Visiting sites located in areas requiring attention and engaging in dialogue with local stakeholders (Practicing the Landscape Approach).
– Analyzing the impacts of future natural scenarios on business operations using generative AI.
– Organizing the hierarchy of upstream value chain segments (mining, material manufacturing, component manufacturing) and developing future investigation strategies.

2. Organizing an Opportunity Framework Leveraging NEC’s Strengths

– As a part of the client zero approach, integrating generative AI and Agentic AI services into consulting services, and visualizing environmental information in enterprise IT systems.
– Introducing five themes that generate value for solving environmental challenges through partnerships with other sectors, leveraging NEC’s technologies such as trust technologies and material informatics.

Going forward, NEC will incorporate in-depth investigations of supply chain risks into its next mid-term environmental plan, the “Eco Action Plan,” starting in 2026, and drive its implementation. Furthermore, insights from the generative AI developed this time will be applied to reporting works under sustainability disclosure standards (SSBJ) and responses to external surveys.

NEC will take the lead in tackling various challenges to realize data-driven nature-related management. Through its own practical experience, the company will contribute to customers and society by sharing insights gained through consulting and other services.

(*1) Conventionally, local risk assessments have required approximately 40 hours per site. By leveraging Agentic AI, simultaneous assessment of multiple sites can be conducted within about one hour. Utilizing Agentic AI is expected to yield efficiency gains equivalent to approximately 80,000 hours compared to conventional methods for assessing local risks across roughly 2,000 sites.
(*2) NEC publishes TNFD Report (2nd Edition)
https://www.nec.com/en/press/202407/global_20240729_02.html
(*3) Nature Positive Transitions: Sectors: Reports compiled by the World Economic Forum in collaboration with Oliver Wyman that outline actions that each sector should take to transition towards a nature-positive economy. NEC is collaborating with other leading global companies to create the IT sector report.
(*4) TNFD Nature Data Public Facility
https://tnfd.global/enhancing-market-access-to-global-nature-data/

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 https://www.nec.com.