NEC Releases Third Edition of TNFD Report

Tokyo, Japan, September 29, 2025 ― 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 (Note 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 (Note 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 (Note 3) and collaborating with TNFD's Nature Data Public Facility (NDPF, Note 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. 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.