Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed LED lighting in almost all (445) halls.
• Installed energy-efficient air conditioning systems in 87.7% (391) of halls.
• 80.7% (360) of halls are constructed from wood, reducing CO2 emissions.
• Initiatives to reduce electricity usage through power saving guidelines and green IT.

Social Achievements

• Promotion of low playing cost games (70.7% of machines as of 31 March 2017).
• Opened 24 smoke-free or partitioned halls (DYNAM Shinrai no Mori).
• 94.7% of employees returned to work after childcare leave.
• ¥214 million in social expenditure.
• Initiatives to support senior citizens and people with disabilities.
• Disaster relief efforts following the Kumamoto and Tottori earthquakes.

Governance Achievements

• Established three committees: Nomination, Remuneration, and Audit.
• Established a Group Risk Management Committee.
• Established a DYJH Group Hotline (whistleblowing system).

Climate Goals & Targets

Environmental Challenges

• Gaming addiction.
• Environmental impact of pachinko hall operations.
• Risks associated with major natural disasters.

Mitigation Strategies

• Awareness campaigns on responsible gaming.
• Energy efficiency initiatives and waste reduction programs.
• Crisis management plans, emergency response centers, and backup systems.

Supply Chain Management

Responsible Procurement

• Compliance checks before entering into agreements with new business partners.
• Sharing of corporate code of conduct with business partners.
• Joint development of game machines and prizes.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, ISO 26000, Sustainable Development Goals (SDGs)

Environmental Metrics

ESG Focus Areas

• Customers
• Communities
• Organizational Governance
• Human Rights
• Labor Practices
• Environment
• Fair Business Practices

Social Achievements

• Nurturing employees to harness collective energy; maintaining and improving a proper work environment.

Governance Achievements

• Adoption of new internal control systems to improve operations and clarify/eliminate factors that could lead to misconduct or violations.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Introduced LED lighting in all 450 stores.
• Implemented energy-saving air conditioning systems in 98.4% of stores.
• 85.1% of stores use wooden buildings, reducing CO2 emissions and waste.
• Developed a system for proper disposal of used pachinko machines.
• Implemented measures to reduce noise pollution in stores.

Social Achievements

• Launched a new private brand pachinko machine, 'Goraku'.
• Implemented various initiatives to improve customer satisfaction.
• Promoted low-stake pachinko games.
• Improved gaming spaces with universal design.
• Implemented measures to address problem gambling.
• Contributed to local employment and community development.
• Supported disaster relief efforts.
• Promoted diversity and inclusion in the workplace.
• Implemented various employee support programs.
• Achieved a 96.9% return rate for employees after childcare leave.

Governance Achievements

• Established a Group Crisis Management Committee.
• Developed a Business Continuity Plan (BCP).
• Established a company-wide compliance system.
• Established a whistleblowing hotline.

Climate Goals & Targets

Environmental Challenges

• Environmental impact of pachinko hall operations.
• Problem gambling.
• Maintaining a safe and secure gaming environment.
• Ensuring compliance with various laws and regulations.

Mitigation Strategies

• Energy-saving initiatives.
• Waste reduction and recycling programs.
• Measures to address problem gambling, including guidelines and support resources.
• Safety measures and training programs.
• Compliance programs and internal controls.

Supply Chain Management

Responsible Procurement

• Compliance checks for new suppliers.
• Sharing of corporate code of conduct with suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG guidelines, GRI (G4), ISO 26000, UN SDGs

Sustainable Products & Innovation

• Private brand pachinko machines ('Goraku').

Environmental Metrics

ESG Focus Areas

• Sustainable growth
• Environmental protection
• Social contribution
• Corporate governance

Environmental Achievements

• Reduced electric power usage by installing LED lighting at pachinko halls
• Proper end-disposal of gaming machines by recycling usable parts and materials

Social Achievements

• Pachinko experience at nursing care facilities
• Disaster recovery support
• Employing people with disabilities at Dynam Business Support Nihon Humap Business Partners

Governance Achievements

• Established audit, remuneration, and nomination committees
• Complied with the Corporate Governance Code (with some exceptions noted in the report)
• Implemented anti-money laundering measures

Climate Goals & Targets

Environmental Challenges

• Decreasing number of customers due to declining population, competition from other amusements, and negative perceptions of pachinko
• Potential for tighter government regulations
• Over-reliance on key suppliers
• Impact of COVID-19 pandemic leading to temporary closures of pachinko halls

Mitigation Strategies

• Cost reduction measures, including labor costs and curbing new investment
• Emergency borrowing from financial institutions
• Shifting focus to low playing cost halls
• Implementing various experimental sales policies
• Companywide sharing of successful gaming environment improvements and sales measures

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Aarata LLC

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions through energy-saving air conditioning systems and LED lighting in most halls.
• Achieved 99.3% of halls with energy-efficient air conditioning and 100% with LED lighting.
• Reduced total power consumption and CO2 emissions (specific figures provided in the report).

Social Achievements

• Maintained zero incidents of children being left in vehicles.
• Implemented measures to prevent pachinko addiction, aiming for 'zero addiction by 2050'.
• Improved customer satisfaction through various initiatives, including a customer service desk and personnel exchanges between group companies.
• Achieved 95.7% employee return rate after childcare leave.
• Zero work-related fatalities in the reporting year.

Governance Achievements

• Established a robust corporate governance structure with various committees.
• Implemented a Group Risk Management Committee and a Group Crisis Management Committee.
• Established a Group Hotline for whistleblowing.
• No incidents of fraudulent acts resulting in litigation.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on energy consumption.
• Pachinko addiction.
• Maintaining a safe and secure amusement environment during the COVID-19 pandemic.

Mitigation Strategies

• Implementing energy-saving measures in air conditioning and lighting.
• Collaborating with the Recovery Support Network to address addiction.
• Creating guidelines for infection prevention and implementing necessary measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Multiple sourcing for prize goods, considering logistics and environmental factors.
• Use of environmentally friendly materials like LIMEX.
• Basic agreements with suppliers including clauses on compliance with the Charter of Corporate Behavior.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PB prizes using environmentally friendly materials.

Awards & Recognition

• Gold award in PRIDE Index 2020
• Platinum Kurumin Mark certification

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions through energy conservation and efficient resource utilization in all stores. Implemented solar panels at Ibaraki Inashiki store.
• Reduced waste through 3R initiatives and use of wooden buildings for stores (85% of stores are wooden).

Social Achievements

• Maintained zero workplace fatalities for three years.
• Implemented various initiatives to support employee well-being, including mental health programs and work-life balance measures.
• Launched the Dynam Nadeshiko Project to promote women's advancement, resulting in a significant increase in the percentage of women in management positions.
• Continued to support community development through various initiatives, including donations and disaster relief efforts.

Governance Achievements

• Established a robust compliance system and implemented annual anti-corruption training for all employees.
• Maintained a high level of financial creditworthiness, securing a commitment line and syndicated loan.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on energy consumption and resource management.
• Maintaining employee well-being and work-life balance.
• Ensuring responsible supply chain management.

Mitigation Strategies

• Implementing energy-saving measures in all stores, including the use of solar panels and energy-efficient equipment.
• Providing various employee support programs, including mental health resources and work-life balance initiatives.
• Prioritizing environmentally friendly products and services in procurement and developing a robust supplier code of conduct.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing suppliers with strong ESG performance, including those committed to environmental sustainability.
• Utilizing a joint purchasing system for consumables to reduce costs and improve efficiency.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Regulations

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Gold award in the PRIDE Index for four consecutive years.