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PROJECT

PROJECT OVERVIEW

October 2024 saw the formal activation of the " Development and demonstration project of Nature Footprint for promoting Nature-related Financial Disclosures by investors and financial institutions and international standardization " initiative, a flagship program anchored within the " Bridging the gap between R&d and the IDeal society (society 5.0) and Generating Economic and social value (BRIDGE)" policy framework spearheaded by the Japanese Cabinet Office.

Human economic activities are primary drivers of global ecological crises, with climate change and biodiversity degradation now recognized as environmental risks. Institutional investors are strategically integrating environmental, social, and governance (ESG) metrics into decision-making processes, compelling corporations to achieve measurable impact reduction while meeting rigorous disclosure standards. This paradigm shift positions the Nature-Footprint as the emerging gold standard for environmental impact quantification, attracting significant attention.

However, the evaluation indicators widely employed by the EU and other entities have initially remained limited in scope for evaluating impacts on natural systems. Specifically, assessments of biodiversity impacts, and the economic valuation of ecosystem services have been conducted separately, with no existing integrated models. To address this gap through synergistic integration of two core components: This initiative establishes a knowledge alliance between two pioneering research streams: Theme 1: "Evolution of Nature Footprint Methodology through LIME Extension" (Lead: Waseda University, Prof. Norihiro Itsubo, Faculty of Science and Engineering). Theme 2: "Operationalizing Nature Footprint in Financial Decision Systems" (Lead: Value Management Institute, Inc., Kiyoshi Yamasaki). Through cross-sectoral collaboration, we are advancing the LIME3 (Life cycle Impact assessment Method based on Endpoint modeling 3) to pioneer a unified nature footprint framework that systematically integrates biodiversity metrics and ecosystem service valuation models.

By integrating cutting-edge modules for biodiversity risk and ecosystem service valuation into LIME3, we are pioneering a holistic nature-economy modelling framework. Through a strategic consortium comprising financial institutions, industry leaders, and sustainability consultancies, this initiative will validate implementation protocols and drive global standardization of the methodology as a next-generation ESG disclosure infrastructure.

OUR RESEARCH

In this research, we will develop an impact assessment method for nature footprint by advancing LIME model　(Life cycle Impact assessment Method based on Endpoint modeling), which is one of the impact assessment methods of LCA.

Specifically, we will conduct research focusing on the following:

(1) Evaluating both quality and quantity: While the significance of biodiversity has been well-emphasized in the conventional life cycle assessment methodologies, our research pioneers an innovative framework that systematically integrates ecosystem service valuation into impact quantification, establishing a new paradigm for nature-positive economic modeling.

(2) Enhancing comprehensiveness and regional resolution: We cover a wide range of impact categories—including climate change, land use, and pollution, and extend our evaluation to both terrestrial and aquatic ecosystems. Additionally, for areas like land use and resource extraction, where impacts vary by region, a higher-resolution evaluation factor will be developed.

(3) Development of economic evaluation methods: By developing economic evaluation methods that are easier for financial institutions and business companies to interpret and utilize, we will provide indicators to support the formulation of management strategies.

(4) Enhancing the implementation: The developed evaluation method will be implemented as a standard feature in widely used Life Cycle Assessment (LCA) software both domestically and internationally, to facilitate easy utilization by LCA practitioners.

The evaluation method developed in this study is expected to assist companies with nature-related disclosures and support financial institutions in their investment decision-making. Furthermore, these findings will be consolidated into guidelines and presented at international conferences to foster their global adoption.

THEME 1