Sustainable Lab was in charge of correlation analysis of
non-financial and financial indicators using machine learning in Matsuki Yokokokara & Company’s Integrated Report 2024
*Sustainable Lab Co., Ltd.*
Press release: September 19, 2024
Sustainable Lab was in charge of correlation analysis of non-financial and financial indicators using machine learning in Matsuki Yokokokara & Company’s Integrated Report 2024
*Contributing to improving corporate value by quantitatively clarifying sustainability management*
Sustainable Lab Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo,
Representative Director: Renji Hirase, hereinafter referred to as the “Company”) provides Japan’s largest non-financial data platform “TERRAST” and financial and non-financial data analysis support. uses model analysis using AI and machine learning in the Integrated Report 2024 released by Matsukiyokokokara & Company Co., Ltd. (Headquarters: Bunkyo-ku, Tokyo, President: Kiyoo Matsumoto, hereinafter
“Matsukiyokokokara & Company”). I was in charge of correlation analysis between non-financial indicators and financial indicators.
As experts in non-financial data science, we will continue to support disclosure-related work in order to use data to illuminate advanced initiatives that contribute to sustainability.
If you are interested in analyzing the correlation between
non-financial and financial indicators, please contact us via the contact page.
https://www.terrast.biz/contact
Background and analysis results
In order to understand how the company’s initiatives related to non-financial indicators affect financial indicators and convert into corporate value, Matsuki Yokokokara & Company analyzes the company’s materiality and related non-financial KPIs. Conducted correlation analysis between validity and financial indicators. As a partner, we utilized TERRAST, one of Japan’s largest non-financial data platforms, to conduct a correlation analysis to test the hypothesis of
connectivity between non-financial indicators and financial
indicators.
* [Points of analysis] *
*Correlation between non-financial and financial indicators* We confirmed a correlation between some non-financial KPIs and ROIC, an important indicator for promoting sustainable management. In particular, it was suggested that “employee awareness surveys,” “average years of service,” and “customer satisfaction” may have a strong influence on improving ROIC.
* Financial impact of non-financial data improvement simulation* Our simulation results show that maximizing human capital, having a diverse board of directors, and improving customer satisfaction are likely to have a positive impact on financial performance, including ROIC and PBR.
For details, please see Matsuki Yokokokara & Company’s “Integrated Report 2024”. (Relevant pages: P51, 52)
https://www.matsukiyococokara.com/sustainability/integrated_report/pdf/MC&C_integrated_report_2024.pdf
This analysis confirmed that among the non-financial KPIs set by Matsuki Yokokokara & Company, there are strong and weak links between financial indicators, and it is possible to clarify the sustainability management promoted by the company from a quantitative perspective. It’s done. We hope that this will contribute to improving corporate value by reviewing qualitative non-financial KPIs, expanding the scope of analysis, and deepening analysis through additional analysis.
Comment from the person in charge
* Mr. Masanori Seki (Sustainability Manager, General Affairs Planning Office, Group Management Supervisor, Matsuki Yokokokara & Company) * Our company aims to improve corporate value from the three
perspectives of “improving profitability,” “reducing capital costs,” and “improving growth potential.” ) We have established the ideal KGI and are promoting sustainable management to achieve it. We aim to further improve corporate value by considering a partial review of non-financial KPIs and promoting initiatives that include non-financial indicators, while taking into account the direct and indirect connections to financial indicators visualized through this initiative. I will continue to do so.
* Daichi Maeda (Our company/ESG consultant)*
Through this data analysis, we believe that we were able to
demonstrate to a certain extent the materiality advocated by Matsuki Yokokokara & Company, the validity of the non-financial KPIs linked to this, and the correlation with financial indicators.
We will continue to contribute to the promotion of data-driven sustainable management by deepening our data analysis.
Sustainable Lab Co., Ltd.
TERRAST, one of the largest non-financial data platforms in Japan, uses big data and AI to quantify companies’ environmental and social contributions, which can be easily described in qualitative terms, as well as support for disclosure and analysis of non-financial and sustainability data. Tool “TERRAST”
for Enterprise” and operates the sustainable company directory “Terrace TV.” We also perform causal analysis and correlation analysis of non-financial indicators and financial indicators, and perform data science.
× Sustainability ×
As a non-financial big data group specializing in ESG/SDGs made up of people with a background in financial engineering, we aim to seamlessly connect social and environmental contributions with the economy.
* “TERRAST for Enterprise”, a DX tool that enhances ESG management operations * [Features]
Interface that can be used even without ESG knowledge
Automatically generate diagnostic results by simply entering approximately 40 items of ESG-related information
ESG score report enables quantitative understanding of current situation and target management
Compliant with SDSC (Sustainability Data Standards Corporation) guidelines – Company name: Sustainable Lab Co., Ltd.
– Representative Director: Renji Hirase
– Location: FINOLAB, 4th floor, Otemachi Building, 1-6-1 Otemachi, Chiyoda-ku, Tokyo
– Business content: Provision of non-financial data platform specializing in ESG/SDGs and research and development related to corporate value including non-financial information
– Date of establishment: January 2019
– Official website: https://suslab.net
[Service provided]
– Japan’s largest non-financial data platform “TERRAST” for financial institutions, consulting firms, and corporate planning
– DX tool “TERRAST for Enterprise” for business companies to enhance ESG/SDGs management operations
– “TERRAST for Management” is a data aggregation, visualization, and monitoring tool for consolidated disclosure of ESG information for buyers.
– Sustainable company directory “Terrace TV”
– Recruitment site: https://suslab-recruit.net/
– Press release list:
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