The Worldfolio: ASUENE Advances Decarbonization Through AI and Carbon Accounting
JAPANSUSTAINABILITYASIA-PACIFICJAPANSUSTAINABILITY TECHNOLOGYCARBON ACCOUNTINGARTIFICIAL INTELLIGENCEDECARBONIZATION
ASUENE Advances Decarbonization Through AI and Carbon Accounting
ASUENE is an AI sustainability integrated company combining carbon accounting, advisory services, automation and artificial intelligence in a comprehensive platform. With expertise spanning Scope 3 emissions, climate disclosure and decarbonization, the company is expanding internationally while helping organizations manage increasingly complex sustainability requirements.
KOHEI NISHIWADA | FOUNDER & CEO OF ASUENE INC.
Japan has committed to achieving carbon neutrality by 2050 and has introduced a growing number of sustainability and climate disclosure requirements. At the same time, governments and corporations around the world are accelerating investments in decarbonization, clean technologies, and climate reporting frameworks. While Europe and North America are often viewed as leaders in these areas, Asia remains one of the most important growth markets for sustainability innovation. Against this backdrop, do you believe Japan is in a position to export its decarbonization expertise, business models, and sustainability solutions to other markets? What will determine whether Japan can become a global leader in this sector over the coming decade?
I believe Japan has a significant opportunity to become a global leader in sustainability and decarbonization, particularly across Asia. One of the most important factors is the role of government regulation. In my view, markets develop most effectively when governments move early and establish clear regulatory frameworks. When regulations are introduced ahead of market demand, companies are forced to adapt, new services emerge, and entirely new industries can be created.
We have seen exactly this dynamic unfold in Japan over the past several years. Even before the ISSB introduced global sustainability disclosure standards, Japan had already begun encouraging voluntary sustainability disclosure through initiatives such as the Corporate Governance Code in 2021. More recently, the adoption of the SSBJ standards, Japan’s sustainability disclosure standards aligned with the ISSB, has further accelerated this trend. Many Japanese companies had already started taking sustainability disclosure seriously even before it became a regulatory requirement.
The introduction of the SSBJ standards has significantly strengthened this momentum. Companies are now expected not only to disclose their own greenhouse gas emissions, but also to measure, disclose, and reduce Scope 3 emissions across their supply chains, creating a much broader impact. Compared with many other countries in Asia, Japan moved relatively quickly to establish a disclosure framework aligned with global standards. As a result, companies began building internal sustainability capabilities, while service providers like us were able to develop solutions that addressed these rapidly evolving market needs.
What is particularly important is the combination of government leadership and private sector innovation. Regulation alone is not enough. Companies need to respond to those regulations, and service providers need to help businesses comply efficiently. When governments and businesses work together, it becomes possible to create business models that are not only successful domestically but can eventually be exported internationally.
Europe and the United States are certainly advanced in many areas, but I believe there remains a significant opportunity for Japan to play a leading role across Asia. If Japan continues to move proactively, strengthens public private collaboration, and develops practical solutions that help companies navigate decarbonization, I believe those models can be successfully exported and scaled globally.
Around the world, concerns about climate change are increasingly intersecting with concerns about energy security. The rapid growth of artificial intelligence, cloud computing, and digital infrastructure is creating unprecedented demand for electricity, while geopolitical tensions continue to expose vulnerabilities in global energy supply chains. Japan faces a unique challenge because of its relatively low level of energy self sufficiency. How do you view the relationship between decarbonization and energy security, and what role should renewable energy play in Japan’s future?
Energy security has become one of the most important aspects of the sustainability discussion.
The rapid expansion of artificial intelligence is driving enormous increases in electricity consumption. As energy demand rises, the value of energy itself increases. This creates new incentives for energy efficiency, energy management, and technologies that reduce overall energy consumption.
Japan faces a particularly challenging situation because our energy self sufficiency rate is only around 15 to 17 percent. This is in stark contrast to countries such as the United States, with an energy self-sufficiency rate of around 120%, and Russia, at approximately 190%, both of which are net energy exporters. Japan remains heavily dependent on imported energy resources, which creates vulnerabilities during periods of geopolitical instability. This also weakens Japan’s bargaining power relative to other countries.
Events affecting regions such as the Middle East or critical shipping routes can have a direct impact on Japan’s energy security. This is one reason why the Japanese government increasingly discusses Green Transformation and energy security together since the administration of former Prime Minister Fumio Kishida. These are no longer separate policy issues. They are closely connected.
Increasing renewable energy capacity will strengthen Japan’s energy self-sufficiency while enhancing its energy security. Renewable energy can improve Japan’s energy resilience while also supporting decarbonization goals. Nuclear energy will also likely play an important role, and there is growing interest in future technologies such as fusion energy. However, restarting nuclear facilities takes time, and those are not immediate solutions.
For that reason, renewable energy is becoming increasingly important in the short term. Japan should view this challenge as an opportunity to accelerate investment in clean energy infrastructure while strengthening national energy security at the same time.
Sustainability disclosure requirements are becoming increasingly sophisticated through frameworks such as ISSB, CSRD, and other climate reporting standards. Yet despite growing regulatory clarity, many organizations continue to struggle with Scope 3 emissions, which often represent the largest portion of a company’s carbon footprint. Why has Scope 3 become such a critical issue, and what are the biggest obstacles companies face when trying to measure, report, and reduce these emissions?
Scope 3, supply chain is by far the biggest challenge facing many of our customers today.
The complexity comes from the sheer breadth of the data involved. Companies must collect information across fifteen separate categories, many of which extend far beyond their direct operations. This requires engagement with suppliers, partners, logistics providers, and other stakeholders throughout the value chain.
Another major challenge is data quality. Increasingly, companies are expected to move beyond secondary databases and estimate based approaches. They are being asked to collect primary data directly from suppliers and business partners. That creates significant challenges for both buyers and suppliers.
At the same time, regulatory requirements continue to evolve. Sustainability-related disclosure frameworks such as ISSB, CSRD, and other disclosure standards are increasing pressure on organizations to provide accurate and transparent information.
Since launching our carbon accounting business in 2021, we have grown rapidly in Japan, achieving the No.1 position in cumulative domestic customers for three consecutive years. Based on our own estimates, our market share is now more than seven times larger than that of the next-largest provider in Japan.
Large enterprises have become major drivers of this trend. Companies such as Sony, and Murata Manufacturing manage supply chains that can involve thousands or even tens of thousands of suppliers. These organizations are increasingly asking suppliers not only to disclose emissions data but also to demonstrate annual reductions.
In some cases, suppliers are being asked to reduce emissions by several percentage points such as 3–4% each year. This transforms sustainability from a reporting exercise into a business requirement, such as supplier selection criteria and bidding qualification requirements. Suppliers recognize that maintaining commercial relationships increasingly depends on their ability to meet these expectations.
Japan’s business culture has also played an important role. Companies generally take these requirements seriously and are willing to invest in compliance. Combined with relatively early regulation, this has helped accelerate sustainability disclosure and emissions management across the market.
However, many organizations still struggle with fundamental questions. They may not fully understand Scope 3 methodologies, category definitions, reduction strategies, disclosure requirements, or assurance processes. That knowledge gap continues to create strong demand for comprehensive sustainability solutions.
Large multinational companies are increasingly extending sustainability requirements throughout their supply chains. What are you seeing among both large enterprises and smaller suppliers as they adapt to these expectations, and how has this trend influenced demand for your services?
We began our carbon accounting business in 2021, and over the past several years we have seen the market demand increase significantly. The primary driver has been large enterprises including listed companies that are moving aggressively on sustainability and decarbonization.
For many suppliers, sustainability has become a commercial requirement rather than a voluntary initiative. If a supplier cannot meet the expectations of major customers, it risks losing business opportunities. As a result, organizations of all sizes are seeking practical solutions that help them calculate emissions, manage disclosure requirements, and implement reduction strategies.
This is where we have seen substantial demand for both software and advisory services including sustainability consulting. Companies need support not only with reporting but also with understanding how to collect data, improve performance, and navigate increasingly complex regulatory and customer expectations.
Many organizations today rely on multiple providers for carbon accounting, sustainability reporting, target setting, compliance, consulting, and implementation support. Your company has taken a different approach through a one stop solution model. What inspired this strategy, and why do you believe it resonates with customers?
One of our core differentiators is that we provide a comprehensive one stop solution.
In many cases, organizations use one provider for carbon accounting, another for CDP support, another for SBTi guidance, and additional providers for disclosure, consulting, or implementation. This creates complexity and often requires companies to coordinate multiple external partners.
Several years ago, we observed that many customers were struggling with this fragmented approach. One of our largest early customers was working with numerous service providers simultaneously as part of its decarbonization strategy. Managing relationships with as many as eight to ten different vendors created significant operational complexity, requiring substantial time each month for coordination, meetings, and information sharing.
We believed there was an opportunity to consolidate these functions into a single platform and service offering. Seeing these challenges firsthand convinced us that the market needed a comprehensive all in one solution. Our goal was not only to provide software but also to help customers understand methodologies, develop reduction strategies, prepare disclosures, and implement sustainability initiatives.
In addition, our Customer Success team works closely with customers through regular meetings at least once a month, helping them address questions related to carbon accounting methodologies, emissions reduction strategies, and sustainability management. We do not simply provide software—we work alongside our customers to ensure they achieve meaningful business outcomes.
Beyond that, we have built a comprehensive support system that covers the full spectrum of sustainability management. This includes responding to approximately 200 CDP questionnaire items, supporting SBTi target validation, helping companies comply with ISSB and CSRD requirements, conducting double materiality assessments, and providing product-level carbon footprint calculations and life cycle assessments (LCA).
As a result, customers can work with a single partner rather than managing multiple vendors. We believe this integrated approach simplifies sustainability management and delivers greater value over time.
Your company was founded before sustainability disclosure became a mainstream business priority. Looking back, what convinced you that this industry would become such an important growth market?
Before founding ASUENE, I spent approximately 11 years at Mitsui & Co., working on renewable energy investments and M&A projects across Latin America, North America, and Europe. I also had the opportunity to live and work in Brazil, which gave me firsthand insight into the global energy transition.
Through that experience, I repeatedly observed a significant gap between Japan and international markets especially in both clean technology and digital technology. While Japan had strong capabilities in hardware and manufacturing, it was moving more slowly in some of the technologies that were driving the global energy transition.
I also saw renewable energy becoming increasingly competitive internationally. Around 2015, Japan’s feed-in tariff rates remained at approximately ¥20–30 per kWh. By contrast, in some overseas markets, renewable energy projects were already becoming commercially viable without subsidies at prices of around ¥5–10 per kWh, and in some cases even lower.
These experiences convinced me that the decarbonization sector would become a major growth industry globally. I felt there was a significant opportunity to help close the gap between Japan and international markets while building a company capable of competing on a global stage.
Ultimately, these experiences gave me a strong sense of urgency about Japan’s position relative to the rest of the world. I believed Japan needed stronger technology companies in this field, and I wanted to help create one.
Throughout your career, you have spoken about the gap between Japan and global markets in areas such as clean technology and digital innovation. How has that perspective shaped your long term vision for the company?
My experience in international energy markets made it very clear that sustainability would increasingly be driven not only by physical infrastructure but also by software, data, and digital technologies.
Japan has world class manufacturing capabilities and a long history of industrial excellence. However, the next stage of the sustainability transition will require sophisticated software platforms, automation capabilities, and artificial intelligence driven solutions.
From the beginning, our vision has been to build a company that combines deep sustainability expertise with advanced technology. Rather than simply providing compliance services, we want to create scalable technology solutions that help organizations manage sustainability more effectively.
That vision continues to guide our strategy today and remains central to our ambitions for global expansion.
Artificial intelligence is rapidly transforming nearly every business function, and sustainability teams are facing increasing workloads as reporting requirements become more complex. Your company recently introduced a multi agent AI system designed specifically for sustainability management. How do you see AI changing the way organizations approach sustainability, compliance, and carbon accounting?
Our ambition is to become the leading AI native company in sustainability and decarbonization.
To support that vision, we have invested heavily in artificial intelligence across multiple areas. We have established an AI lab, expanded the use of AI internally, integrated AI into our existing products, and launched new AI focused solutions.
One of the most immediate applications is sustainability reporting. Organizations often prepare annual reports using information that is similar to previous disclosures. For frameworks such as CDP and ISSB, as well as sustainability reporting, by combining historical data with generative AI, AI can automate approximately 80–90% of the drafting process.
Another important area is workflow automation. Sustainability teams spend considerable time collecting data, linking emissions factors, and managing manual inputs. Through integrations with ERP systems, accounting platforms, and other enterprise software, many of these processes can be automated.
AI can also support benchmarking, research, analysis, and decision making. Instead of manually searching for information, users can receive insights directly through the platform.
We believe AI will dramatically reduce administrative burdens while enabling sustainability professionals to focus on higher value strategic work.
Your company has completed a number of acquisitions in a relatively short period of time. How does M&A fit into your long term growth strategy, and what role does it play in strengthening your market position?
M&A is a central part of our growth strategy.
Over the past year and a half, we have completed seven acquisitions, including both companies and business units. Our primary approach is what we describe as a roll up strategy, where we acquire competitors and related businesses that strengthen our market position.
Examples include the acquisition of NZero, which complements our emissions reduction capabilities, Iconic Air in the United States, and the Sustana business formerly operated by SMBC.
Sustana had a customer base of approximately 160 companies—equivalent to around 10% of Japan’s Prime Market-listed companies. By integrating those customers into the ASUENE platform, we have expanded our market share, improved operational efficiency, and enhanced profitability.
A second priority is acquiring complementary capabilities that enhance our value proposition. For example, after companies calculate emissions, they need tools that help them reduce emissions. Acquiring businesses that support this broader value chain allows us to provide more comprehensive solutions.
We also view acquisitions as a way to expand our customer base, strengthen platform integration, and create operational efficiencies. By bringing customers and capabilities onto a unified platform, we can improve service quality while increasing scale.
Looking ahead, where do you see the greatest opportunities for international expansion, and how would you define the company’s mission for a global audience of business leaders, investors, sustainability executives, and decision makers?
In North America, our current focus is on the United States and Canada, with Mexico and Brazil also part of our longer-term expansion plans. In Europe, alongside the United Kingdom, we view Germany as a strategically important market because of its strong manufacturing base.
Japan remains an important market because of its regulatory environment and our strong local presence. At the same time, North America represents one of the largest sustainability markets in the world, and Europe continues to be a global leader in climate related regulation and corporate sustainability initiatives.
Our international strategy is closely linked to acquisitions because they provide access to customers, talent, leadership teams, and local market expertise. We are particularly interested in regions where sustainability requirements are becoming increasingly sophisticated and where demand for technology solutions continues to grow.
Ultimately, our goal is to become the leading sustainability AI platform. We want to provide a comprehensive solution that combines sustainability expertise, software, automation, and artificial intelligence.
Today, more than half of our customers are manufacturers—a sector facing particularly strong demand for supply chain-wide carbon emissions management and sustainability disclosure. Going forward, we plan to further strengthen our manufacturing-focused solutions and accelerate our expansion across Japan, North America, and Europe.
While there are strong technology players in the United States and Europe, very few companies in Japan combine deep sustainability knowledge with advanced software and AI capabilities. We believe that is our unique strength.
As organizations around the world face increasingly complex sustainability requirements, our objective is to become the trusted platform they turn to for managing disclosure, compliance, decarbonization, and long term sustainability transformation.
For more information, visit their website at: https://asuene.com/
