WATI editor
Jun 12, 2024
Seventeen companies, including Sumitomo Mitsui Banking Corporation (SMBC), Murata Manufacturing, and NIPPON EXPRESS Holdings, are investing a total of ¥4.2 billion in Asuene, a startup specializing in CO2 emission calculations.
This move aims to incorporate CO2 visualization and reduction expertise, enabling the measurement of emissions across the supply chain and supporting decarbonization business initiatives. This investment responds to the global demand for corporate CO2 disclosure.
Founded in 2019, Tokyo-based Asuene excels in using artificial intelligence (AI) to accurately measure and reduce "Scope 3" emissions, covering the entire supply chain. The company’s CO2 calculation system is already used by over 6,000 companies, making it the largest in Japan.
In addition to SMBC and Murata Manufacturing, investors include SBI Holdings, Ricoh, KDDI, and several venture capital firms, with the collective investment constituting a 17% stake in Asuene.
Asuene plans to use the funds to launch a feature by summer 2024 where AI autonomously suggests CO2 reduction measures. The company also aims to enhance its development capabilities through multiple mergers and acquisitions of startups specializing in AI.
Six of the investing companies, including SMBC, will form business partnerships with Asuene. SMBC will leverage data from Asuene’s network of over 6,000 companies to analyze CO2 emission trends by industry, providing effective CO2 reduction consulting to its domestic and international clients.
Murata Manufacturing will promote Asuene’s adoption among its approximately 4,700 suppliers, visualizing CO2 emissions across its supply chain to advance its decarbonization efforts. NIPPON EXPRESS plans to expand CO2 reduction support services for the logistics industry in collaboration with Asuene.
The demand for corporate CO2 disclosure is increasing. In March, Japan's Sustainability Standards Board (SSBJ) proposed that companies listed on the Tokyo Stock Exchange Prime Market should disclose CO2 emissions and reduction targets for their entire supply chain. The Financial Services Agency is expected to finalize these rules, potentially mandating such disclosures for companies with market capitalizations over ¥3 trillion by the fiscal year ending March 2027.
In the US, the Securities and Exchange Commission (SEC) adopted regulations in March requiring publicly traded companies to disclose their greenhouse gas emissions. Companies like Apple are also pushing their suppliers to achieve net-zero CO2 emissions, further emphasizing the need for supply chain-wide decarbonization.
In 2023, the Japanese government announced a plan for public and private sectors to invest ¥150 trillion in decarbonization over the next decade. Leading companies investing in Asuene aim to accumulate expertise in CO2 visualization and reduction, positioning themselves at the forefront of decarbonization efforts.
Japan has set a goal of achieving net-zero greenhouse gas emissions by 2050. If major companies with extensive domestic and international customer bases seriously pursue emissions visualization and reduction, it could significantly accelerate decarbonization efforts.