Cierpa Identifies Key Materiality Issues to Bridge Sustainability and Profitability

Cierpa Ensures Diverse Perspectives in Identifying Key Materiality Issues

Cierpa & Company, headquartered in Shinagawa, Tokyo, is striving to create a world where profitability and sustainability coexist. They recently identified significant materiality issues that prioritize their business activities, emphasizing a holistic impact on society, the environment, and their financial performance. Utilizing their own product, SmartESG, they aim to accurately reflect diverse stakeholder perspectives and enhance the validity of their hypotheses regarding impact.

The Evolution of Sustainability Reporting

In recent years, sustainability information goes beyond mere compliance; it has evolved into an essential part of corporate value assessment and investment decisions. Cierpa recognizes that, as a provider of a sustainability data platform that connects companies and investors, it is crucial to clarify their materiality in alignment with their management strategy.

The identified materiality themes have been structured in relation to business priorities, considering strategies projected five years into the future. For a rapidly changing startup, it is vital to define resource allocation and approaches to growth opportunities and risks at early stages, integrating sustainability into the decision-making process.

The Comprehensive Identification Process

To determine this materiality, Cierpa leveraged SmartESG while referring to major ESG rating agencies, disclosure platforms, and international reporting standards. They conducted extensive mapping of sustainability issues relevant to their business and industry characteristics. Collaborating with internal experts and advanced case studies allowed them to systematically refine and clarify these issues.

Moreover, Cierpa engaged various stakeholders—customers, employees, investors, and external experts—through interviews. Following discussions with management based on these insights, they evaluated the importance of the issues from the perspectives of social/environmental impact and financial impact. This thorough examination led to the identification of six key materiality issues.

Validation by the Board

The materiality issues identified were approved by the board of directors and integrated as key themes within the corporate strategy. They are designed to reflect current business environments and societal demands, with plans for regular revisions to adapt to future changes.

The Six Identified Materiality Issues

Cierpa has determined six crucial areas as materiality:

1. Providing a Sustainability Data Platform
Cierpa is developing and offering a global all-in-one platform that integrates and visualizes diverse sustainability-related information to support decision-making for companies and investors. This contributes to realizing a world where profit and sustainability are intertwined.

2. Establishing Robust and Advanced Governance
Recognizing the heightened importance of governance in a growing organization, Cierpa is committed to early establishment of a transparent and ethical governance structure to ensure sustainable operations and trustworthiness.

3. Realizing Well-Being of Workers
Understanding that organizational progress depends on individual contributions, Cierpa prioritizes the well-being of all members by ensuring a workspace that promotes learning, growth opportunities, transparency in evaluation processes, and psychological safety.

4. Ensuring Stable Operations of Systems
As a platform provider supporting diverse activities, Cierpa will ensure the stable operation of systems, including AI-related services, to maintain consistent and dependable service delivery.

5. Protecting Customer Information
With a focus on strategic and confidential data management, Cierpa enforces robust security measures across its systems to create a secure environment where customers can utilize services confidently.

6. Ethical Use of AI
As a provider of AI-related services, Cierpa prioritizes accuracy, transparency, and explainability of information while complying with relevant laws for appropriate disclosure. They also assess and manage sustainability risks, including environmental impacts from AI development and utilization.

Engaging External Stakeholders

Cierpa collaborated with multiple stakeholders for insights into their materiality process, enhancing its comprehensiveness and justifiability. Some key stakeholders included:

- Kaoru Mamiya, Line Manager at Dai-ichi Life Holdings’ Sustainability Unit
- Kenji Onishi, Partner at WiL
- Hiroaki Sakuma, Executive Director at Japan AI Governance Association
- Naoko Nemoto, Professor at Waseda University’s Graduate School of Business Management and External Advisor to Cierpa

Future Commitment

Cierpa positions this materiality as a cornerstone for its business decisions, aiming to simultaneously enhance corporate value and create a positive impact on society and the environment. Through the evolution of its sustainability data platform, they aspire to support decision-making for companies and investors while contributing to sustained growth in the Japanese market.

Continuous improvements and returning insights to society will help Cierpa establish a sustainability management model for startups.

About SmartESG

SmartESG is a data platform that centralizes scattered sustainability and ESG data within companies to support strategic sustainability management. It streamlines reporting processes and enables advanced analysis, contributing to enhanced information disclosures and improved stakeholder engagement, while accelerating the formulation and execution of sustainable management strategies.

Corporate Information:

- Company Name: Cierpa & Company, Inc.
- CEO: Jun Sugimoto
- Location: 1F, Terrace Site Gotanda, 3-6-32 Nishigotanda, Shinagawa-ku, Tokyo
- Established: September 2019
- Capital: 100 million JPY
- Business: Develops and provides a cloud service for sustainability information disclosure support (SmartESG), operates ESG-focused media (ESG Journal Japan), and consultancy services (ESG Advisory).