The concept of ESG, which stands for Environment, Social, and Governance, refers to investment, management, and business activities that consider these three factors. It builds on the principles of corporate social responsibility and sustainability and has become systematized and widely adopted within the field of investment.
Alexander Ryota Keeley, an Associate Professor at Kyushu University, is a prominent environmental economist specializing in sustainable investment and ESG metrics. In 2022, he co-founded aiESG, a university-based startup where he serves as the Director and Chief Researcher. He has also taken on a role as an entrepreneur.
aiESG provides a tool that quantitatively evaluates the ESG activities of companies and municipalities through AI analysis. While similar services primarily focus on evaluating entire organizations, the unique feature of aiESG's tool is its ability to assess individual products and services. Additionally, aiESG evaluates the entire supply chain, from raw material procurement to manufacturing, transportation, and sales. Its strength lies in assessing not only climate-related metrics like CO2 emissions but also in utilizing a comprehensive set of 3,290 indicators that include human rights and labor conditions, which were previously difficult to quantify with existing tools.
As interest in ESG investment and the SDGs has grown, there has also been increasing criticism of "greenwashing," where companies promote environmentally friendly initiatives that, in reality, lack substance or effectiveness. In this context, Keeley states that he wants to “support the proper evaluation of activities that deserve recognition," helping companies enhance their long-term value and foster innovation. In fact, aiESG's tool is increasingly being adopted by companies, having been utilized in NEC's TNFD (Taskforce on Nature-related Financial Disclosures) report and Norinchukin Bank's ‘Climate & Nature’ report, among others.
Keeley's work is backed by his extensive international experience. During his doctoral studies in environmental economics at Kyoto University, Keeley gained practical experience in analysis and evaluation as an intern at the International Energy Agency (IEA) and the United Nations Development Programme (UNDP). Afterward, while working as a consultant for the World Bank, he led international collaborative research projects with institutions such as Uppsala University and Harvard University, publishing over 20 papers in top academic journals. Four of these papers were cited in IPCC reports, further establishing his solid track record in academic research.
He is also passionate about applying research findings to society. While at Kyoto University, he founded a company in his hometown of Itoshima, Fukuoka Prefecture, to promote small-scale hydroelectric power generation. Keeley's hands-on approach to implementing renewable energy projects rooted in the local community demonstrates his strong commitment to making a positive impact on society.
"For the economy to continue developing sustainably, it's essential to foster a steady stream of innovation," says Keeley. He aims to bridge the gap between academic research and its practical application in society, effectively channeling accumulated knowledge to support the development of a sustainable society.
