Federated Learning offers privacy-preserving collaborative intelligence but struggles to meet the sustainability demands of emerging IoT ecosystems necessary for Society 5.0-a human-centered technological future balancing social advancement with environmental responsibility. The excessive communication bandwidth and computational resources required by traditional FL approaches make them environmentally unsustainable at scale, creating a fundamental conflict with green AI principles as billions of resource-constrained devices attempt to participate. To this end, we introduce Sparse Proximity-based Self-Federated Learning (SParSeFuL), a resource-aware approach that bridges this gap by combining aggregate computing for self-organization with neural network sparsification to reduce energy and bandwidth consumption.