Tokyo, Japan, August 19, 2025 - (JCN Newswire) - NEC Corporation (NEC; TSE: 6701), in collaboration with ClimateAi, a San Francisco-based startup that built the first climate resilience platform, has developed a conceptual model to estimate the effectiveness of climate change adaptation measures for cocoa and rice cultivation in Africa. In this project, ClimateAi’s long-term climate change forecasting technology, which models both the impact of climatic factors on agricultural production and the effectiveness of adaptation measures, was combined with NEC’s expertise in agricultural technology (agritech) to successfully quantify the impact of climate change on agriculture and clarify the return on investment for adaptation measures.

This achievement will be showcased at the TICAD Business Expo & Conference (Japan Fair), one of the thematic events of the Ninth Tokyo International Conference on African Development (TICAD 9) to be held in Yokohama, Japan, in August 2025, conveying the significance of utilizing digital technology to address the challenges facing African agriculture (*1).

Background and purpose

Globally, while greenhouse gas emission reductions and credit trading are actively being conducted to mitigate the effects of climate change, the implementation of adaptation measures to prevent or reduce damage caused by climate change has not yet progressed. This is due in part to the difficulties involved in assessing the investment cost-effectiveness of implementing adaptation measures.

Notably, although the agricultural sector is an industry highly susceptible to climate change, estimating the return on investment for adaptation measures, such as the introduction of irrigation facilities or changes in crop varieties, has thus far proven difficult due to the wide range of factors affecting crop growth, including temperature, water, and soil.

NEC and ClimateAi have developed a conceptual model that analyzes various factors affecting agricultural growth using AI and calculates the economic return on investment for adaptation measures. Utilizing this model enables the implementation of adaptation measures that focus on areas where positive effects are expected, promoting local agriculture efficiently and sustainably.

Overview

This newly developed conceptual model was used to analyze adaptation measures targeting the cultivation of cocoa and rice in various locations in Africa. Africa is the world’s largest cocoa producer, with agriculture being one of its major industries. However, due to the impacts of climate change, the cultivation environment for cocoa and rice is expected to change significantly in the coming decades. This initiative focused on the following three adaptation measures to examine their ability to maintain and enhance yields and create economic value in a changing climate.

• Introduction of irrigation facilities
• Changing to climate-adapted varieties
• Changing of planting time for traditionally cultivated varieties

Some of the analysis results can be verified through interactive demonstrations. As an example of potential applications for this conceptual model, it is envisioned that international organizations and development banks providing local agricultural support will utilize it to explore farmland in recipient areas and estimate the effects of implementing adaptation measures.

Beyond this example, the system is designed to cater to the needs of various stakeholders involved in agriculture, enabling them to make data-driven decisions.

Results and future prospects

The utilization of AI made it possible to analyze the cost-effectiveness of adaptation measures, such as the introduction of irrigation facilities and changes in cultivation varieties in rice farming across various regions, as well as effective adaptation strategies for cacao cultivation.

Significant funding is required to advance climate change adaptation in agriculture. It has been pointed out that in addition to the need for financial support from international organizations, development banks, and governments, the mobilization of private investment is necessary. To provide continuous funding, it is essential to quantify the investment returns from adaptation measures and to conduct proper monitoring and intervention following their implementation.

While exploring opportunities for collaborations with businesses that provide irrigation equipment and seedlings, NEC and ClimateAi aim to leverage digital technology use cases to promote financing for climate change adaptation and expand data-driven agritech businesses.

• Adaptation finance business
  • Support for understanding risks to agricultural yields to reduce entry barriers for the private sector / Support for evaluating business feasibility for financing
• Agritech business
  • Support for agricultural producers and managers of climate change adaptation / Support for climate change adaptation in the upstream (seed and agricultural material businesses) and downstream (processing businesses, etc.) of the agricultural supply chain
• Other business
  • Support for climate change adaptation in the infrastructure industry and manufacturing supply chains

The results of this initiative will be announced at the TICAD Business Expo & Conference (Japan Fair) and other events to gather feedback from the market and proceed with discussions toward commercialization. Going forward, NEC and ClimateAi will work together to scientifically assess the impact of climate change on agriculture and present concrete solutions to achieve sustainable agriculture and food security. Both companies will continue striving to solve global agricultural challenges through technological innovation and data utilization.

NEC’s new business development, under the key message "The future is ours to shape," is advancing NEC Open Innovation (*2) through diverse co-creation with a wide range of startups and partner companies. NEC’s collaboration with ClimateAi is one such initiative. By uniting innovative technologies with cross-domain collaboration, NEC continues to create new social value and shape the future.

(*1)NEC to participate in "TICAD Business Expo and Conference" and thematic events for TICAD 9 https://www.nec.com/en/press/202508/global_20250805_03.html
(*2)NEC Open Innovation
https://www.nec.com/en/global/innovation/index.html

About ClimateAi, Inc.

ClimateAi is a climate adaptation and resilience platform purpose-built for the agriculture, food, and consumer goods sectors. It combines AI-powered weather modeling with phenological and water-scarcity data to deliver highly localized, crop-specific agricultural impact insights across the short, medium, and long term. With deep expertise in climate–agriculture interactions and a client base that spans agricultural and consumer-goods multinationals as well as agricultural investors, ClimateAi turns complex climate data into actionable insights. For more information, visit ClimateAi at https://www.climate.ai

About NEC Corporation

NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.

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