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How Humanity Should Confront the Shared Challenge of Environmental Pollution

~ The Next Strategic Move for Corporations discussed during the World Economic Forum’s Annual Meeting 2025 ~

Visualizing the Reality of Environmental Pollution through Technology

The platforms of the World Economic Forum are where leaders from politics, business, and academia discuss global issues related to the economy and environment. The platforms have repeatedly addressed climate change caused by greenhouse gas emissions.

However, comprehensive discussions on serious environmental risks, such as air and water pollution that cause health problems and marine pollution from plastic waste remained limited. At the Annual Meeting 2025, under one of the thematic priorities, 'Safeguarding the Planet', a session entitled 'Tech’s Answer to Pollution' was convened.

As one of the panelists representing tech industry, NEC President and CEO Takayuki Morita explained that the reason environmental pollution has not gained as much focus as climate change is because its reality is obscured by the complexity of the global economy.

NEC President and CEO Takayuki Morita

“In the past, goods were manufactured and consumed locally, making pollution a local issue that is easier to handle. But today, with globalization leading to highly complex supply chains, we often don’t know where pollution is occurring. That’s a fundamental issue that makes resolution difficult,” said Morita.

So how can we visualize the reality of pollution and raise awareness? Morita emphasized that technology is the key and said it is crucial to clarify the situation on both 'macro' and 'micro' levels.

“One way to understand the environment on a macro level is through Earth observation technology using satellites. This allows rapid detection of changes across wide areas.”

On the micro level, one method involves mechanisms that realize traceability across supply chain. Platforms enabling the sharing of data on pollutants and recyclables across companies—while keeping competitive information confidential—are gaining attention.

“By using technology, we can understand what is happening, what the effects of downstream/upstream manufacturing, and how that leads to pollution. We need to improve recognition and literacy around pollution using power of technology.”

Rising Literacy Leads to New Protective Laws

When public interest turns toward the environment, it fosters literacy which in turn leads to legislation. Eventually, the entire industrial world is driven to focus on environmental protection. Japan experienced this ahead of other nations during its period of rapid economic growth.

“Although Japan now boasts clean air and water, there was a time when children suffered asthma from factory soot and people died from wastewater pollution. Investigations into these health issues raised awareness and led to laws requiring companies to implement pollution control measures,” shares Morita.

As a result, technologies for proper treatment of emissions and wastewater were developed. “It's crucial that the literacy and responses once seen in Japan spread across borders.”

Supporting Sustainability Management with NEC’s Accumulated Know-How

Morita’s comment that 'the complexity of supply chains obscures the reality of pollution' also applies to NEC’s own challenges. Yutaka Okano, who manages NEC’s supply chain sustainability, explains:

“Even with semiconductors heavily used in NEC products, it’s hard to fully understand the upstream environmental impact in the supply chain when sourcing from trading companies. We’ve worked with procurement partners, national research institutes, and universities to find ways to visualize these impacts.”

Yutaka Okano, Director of Business Promotion Group, Supply Chain Sustainability
Management Division, and Senior Professional, Carbon Neutral Business Promotion PMO Group, NEC

NEC evaluates various environmental risks beyond carbon to minimize business impacts. Recently, it has started using this expertise to provide consulting on sustainability transformation (SX), including strategy development, roadmaps, and IT system implementation for companies addressing environmental issues.

A key partner in this consulting is GX Concierge (GXC), established by NEC group member ABeam Consulting and Sumitomo Corporation to advance environmental business.

“We cover full range of environmental themes , not just decarbonization,” says Akira Terasaki of GXC.

Recently, more companies are expanding their focus from greenhouse gas reduction to broader concerns like the circular economy and nature positivity. “With the worsening pollution problem, more executives now feel the need to scrutinize their entire supply chain. Society and investors increasingly expect major corporations to take full responsibility,” explains Terasaki.

Environmental issues like climate change are already impacting business. Global shortages of coffee and cocoa beans or rice price hikes in Japan are examples. “Proper sustainability management of supply chains is not just risk avoidance—it’s becoming a business opportunity. Executives now understand the pressing threat of raw material risks and price surges. Environmental response today is no longer just ‘the right thing to do’—it’s critical,” says Okano

Akira Terasaki, General Manager of Marketing & Consulting Department, GX Concierge Inc.

How to Respond to the Growing Trend of Environmental Disclosure

The growing awareness among companies is driven by the development of international frameworks. Following the 2016 Paris Agreement and climate-related frameworks, the Taskforce on Nature-related Financial Disclosures (TNFD) was established in 2021. TNFD framework requires companies to assess how their activities impact nature and to develop and report on corresponding strategies.

Because NEC issued Japan’s first TNFD report in the IT industry in July 2023, it has taken on the role of assisting other companies in doing the same. “In Japan, listed companies will likely soon be required to publish TNFD reports. Preparations are accelerating. But supply chains are global and environmental issues span water, minerals, biodiversity, etc. Companies often don’t even know where to begin,” says Okano.

Supporting Execution with the Right Tools

NEC is also actively developing technologies and solutions to help global businesses in their sustainability efforts. For example, 'GreenGlobeX,' efficiently centralizes environmental performance data across domestic and international sites like factories and offices, and 'Obbligato,' a PLM (product lifecycle management) software that supports risk management in design, procurement, and production.

In Thailand, NEC also deployed the Real-Time Waste Transportation Monitoring System which integrates license plate registration, weigh-in monitoring, GPS, RFID, and many other technologies to monitor transport trucks to ensure illegal waste dumping can be detected and stopped, reducing negative environmental impact.

NEC also jointly developed an ICT agricultural platform “CropScope” which combines AI farming advice and automatic irrigation control functions to provide sustainable agriculture, accurately calculating the optimal amount of water required for plant growth and reducing water wastage.

If environmental efforts are properly evaluated by consumers and investors, companies can ensure the sustainability of their business—and the pollution problem will naturally move toward resolution. The foundation for that transformation is only now beginning to take shape.