Sustainable Lab
A Unique Data-Driven ESG Solution

ESG (Environment, Social, Governance) metrics, unlike financial disclosures, are not governed by a standard of set principles. As a result, calculating their corporate value and measuring the progression of sustainability goals at scale has become nearly impossible for investors, partners, and the public across any venture. Invariably, institutions worldwide are looking to nurture sustainable outcomes that drive corporate value and fuel growth; however, they struggle to incorporate the necessary social and environmental initiatives that catalyze these developments. To solve this challenge, a Japanese company named Sustainable Lab leverages data analytics and financial engineering to process vast amounts of ESG data, which is often unstructured, to help organizations better streamline their sustainable development goals (SDGs).

SusLab assists clients in developing unique policies and methodologies in order to generate tangible value, which not only takes into consideration the financial and economic perspectives but also incorporates environmental or social drivers of sustainability. The firm consists of a highly seasoned and experienced group of individuals well-versed in sustainability, financial engineering, and data science. This profound knowledge-based, coupled with their individual competencies, empowers clients to develop a model that delivers measurable value and sustainable organizational advantage by combining data science with ESG. “We have already received inquiries from big corporations and top level government agencies to corroborate various ideas to enhance sustainability across the nation,” says Renji Hirase, the CEO of the company.

Interestingly, SusLab’s proficiency in aggregating and analyzing ESG data through the scope of sustainability aligns with a fair share of internationalized initiatives such as SASB and GRI. As enterprises and firms apply individual standards to recognize the companies to invest in, the firm adheres to localization standards in order to populate ESG investment. SusLab takes pride in incorporating regional forms of measurement in order to truly evaluate companies with an ESG perspective locally. “It’s not easy to gather and integrate data from non-English data sources, but we have been doing this successfully, and this is one of our greatest strengths,” says Renji Hirase. The firm has the technology and the capability to offer multiple datasets along with the necessary standardization to institutional investors in order to assist them in fulfilling the principles of responsible investment (PRI) from a localization perspective. Utilizing their experience in the local market, the firm has launched a product using SaaS technology for institutional investors, such as security firms, asset management firms, to help their ESG investments. As a result of SusLab’s pragmatic approach, the firm has been selected as one of the accelerators for SAP, which is evidently one of the high-acclaimed companies in terms of sustainability. The partnership has given the firm a well-deserved opportunity to create a more valuable service for companies all over the world.

Owing to its cutting edge solutions, SusLab received the Partner Award at the MUFG digital accelerator program, which is one of the top financial groups in Asia and has also received awards from the Ministry of the Environment. Apart from these accolades, the firm has grabbed the attention of some of the leading executives in the market. The firm now has Mr. Kato onboard, who is part of the Management Committee of GPIF, a government-backed retirement pension fund independent which is one of the largest pension funds in the world. His expertise in financial engineering and involvement in organizational decisions has had a big influence on the company’s success. With the accolades and the professionals to back them up, SusLab is looking to deliver value to their clients in a much faster and more effective manner while adapting to the ever-changing regulations. In the coming years, the firm is looking to assist companies in orchestrating their ESG workflow more smoothly by structuring and analyzing ESG data in a standardized format. “We have raised capital from some of the VCs, and we are planning to raise another round in the coming years to accelerate our business and deliver our services to as many enterprises as quickly as possible,” concludes Renji.