Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global semiconductor shortage impacting browser-equipped TV and automotive device shipments.
• Economic slowdown due to the prolonged impact of the COVID-19 pandemic, leading to reduced customer interaction, temporary suppression of IT investments, project delays, and testing delays.
• Potential for software bugs and defects in products, leading to additional support work, customer compensation, and lost opportunities.
• Project management challenges due to customer specification changes and exceeding initial estimates, resulting in additional development costs and potential penalties.
• Information security risks due to potential cyberattacks and information leaks, leading to potential lawsuits and reputational damage.
• Challenges in securing and developing talent in a competitive software industry.
• Intellectual property infringement risks, potentially leading to decreased competitiveness and financial losses.
• Legal and compliance risks due to changes in regulations or non-compliance by employees.
• Potential for unexpected disputes and lawsuits.
• Potential impact of natural disasters, accidents, terrorism, conflicts, or pandemics on business operations.
• Risks associated with M&A transactions, including the failure to achieve expected synergies and potential impairment of intangible assets.

Mitigation Strategies

• Strengthening marketing activities and promoting partnerships and collaborations in sales, development, and procurement.
• Implementing thorough infection prevention measures, developing remote work environments, utilizing online meetings, and building remote product development systems to mitigate the impact of COVID-19.
• Defining software development processes and quality manuals, conducting employee training, and implementing continuous improvement measures to ensure product quality.
• Thorough project management, including clear definition of responsibilities and requirements with clients, and monitoring by executive officers.
• Obtaining ISO/IEC 27001:2013 and JIS Q 27001:2014 certifications for information security management systems, implementing cybersecurity measures, and conducting regular internal training.
• Utilizing various recruitment channels, providing comprehensive training programs, creating attractive compensation and fair evaluation systems, and improving the work environment to retain and develop employees.
• Actively applying for patents and trademarks in Japan and major countries to protect intellectual property.
• Establishing a compliance risk management committee, implementing internal audits, and conducting regular internal training on compliance.
• Implementing measures to prevent and mitigate disputes with clients, including clear definition of responsibilities in contracts and consulting external experts.
• Developing a business continuity plan (BCP), promoting awareness, conducting operational tests, and preparing for remote work to minimize the impact of disasters.
• Close collaboration between global bases and customer companies to monitor business progress and adjust business strategies to mitigate risks related to semiconductor supply.
• Screening M&A and investment opportunities, conducting thorough due diligence, and providing management support to subsidiaries to mitigate risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Environmental Challenges

• Uncertainty in the global economy due to the Omicron variant, rising raw material prices, supply chain disruptions, and the Russian invasion of Ukraine.
• Continued global supply chain disruptions potentially impacting the shipment of TVs and in-vehicle devices with Access's browsers, and procurement of network equipment by telecom carriers.

Mitigation Strategies

• Monitoring the impact of supply chain disruptions and disclosing any significant effects promptly.
• Russia and Ukraine's contribution to the 2023 fiscal year budget is considered small and recoverable through sales in other regions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Human Capital
• Climate Change

Environmental Achievements

• Scope1 and Scope2 GHG emissions reduced from 187.0 t-CO2 in FY2021 to 127.4 t-CO2 in FY2024.

Social Achievements

• Increased percentage of women in management positions from 9.3% in FY2023 to 11.7% in FY2024. Target of 15.5% by FY2027.
• Increased percentage of women in new hires from 0% in FY2023 to 10% in FY2024. Target of 25% by FY2027.
• Implemented various wellbeing initiatives including flexible work arrangements, remote work, and support for life events.

Governance Achievements

• Established a Sustainability Working Group chaired by the President and CEO.
• Established a Compliance and Risk Management Committee.
• Maintained a board with a majority of outside directors.

Climate Goals & Targets

Environmental Challenges

• Intense competition in the software industry and short product lifecycles.
• Project delays and cost overruns due to customer specification changes.
• Global competition for skilled talent.
• Potential for software defects and security breaches.
• Economic downturns and market fluctuations.
• Geopolitical risks and regulatory changes.
• Climate-related risks such as natural disasters.
• Risks associated with M&A activities.

Mitigation Strategies

• Focus on product development in areas with competitive advantages.
• Thorough project management, including clear definition of responsibilities and requirements.
• Diverse recruitment strategies and employee development programs.
• Robust quality control processes and security measures, including ISO/IEC 27001 certification.
• Monitoring market trends and customer situations.
• Collaboration with external experts to monitor geopolitical risks.
• Development of a Business Continuity Plan (BCP).
• Thorough due diligence in M&A transactions.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., heavy rain, typhoons)

Transition Risks

• Policy and regulatory changes

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO/IEC 27001

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established basic policies for human resource management and intellectual property; implemented governance strengthening and enhancement measures for improving corporate value.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Disclose climate-related information based on TCFD recommendations
• Reduce the environmental load of offices
• Develop energy management solutions
• Promote the introduction of white box solutions to data centers and develop low-power switches and routers

Social Achievements

• Respect for human rights
• Promote diversity
• Develop human resource and create comfortable working environments
• Implement initiatives for health and safety

Governance Achievements

• Build a system to strengthen corporate governance
• Implement periodical evaluations of the effectiveness of the Board of Directors
• Establish a decision process for executive remuneration that ensures fairness and transparency
• Enhance internal control through the implementation of company-wide risk identification and monitoring by the Compliance and Risk Management Committee
• Establish various reporting desks

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the global economic outlook impacting investment decisions in the IT industry.

Mitigation Strategies

• Focusing on the network business, expanding the white box market, and stabilizing IoT and web platform businesses.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

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: 有限責任 あずさ監査法人

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced environmental impact through energy management solutions development and introduction of Whitebox solutions to data centers
• Compliance with environmental regulations and employee education

Social Achievements

• Establishment of basic policies for human resource management and intellectual property
• Respect for human rights
• Promotion of diversity
• Human resource development and creation of a comfortable work environment
• Commitment to health and safety

Governance Achievements

• Strengthening and improving governance for enhancing corporate value
• Establishment of an intellectual property management and promotion system
• Respect for the intellectual property of other companies
• Continuous education on intellectual property
• Construction of a system for strengthening corporate governance
• Regular implementation of board effectiveness evaluations
• Construction of a process for determining executive compensation that ensures fairness and transparency
• Enhancement of internal control through comprehensive risk identification and monitoring by the Compliance Risk Management Committee
• Establishment of various reporting channels

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduce the environmental load of offices
• Develop energy management solutions
• Promote the introduction of white box solutions to data centers and develop low-power switches and routers

Social Achievements

• Respect for human rights
• Promote diversity
• Develop human resource and create comfortable working environments
• Implement initiatives for health and safety

Governance Achievements

• Build a system to strengthen corporate governance
• Implement periodical evaluations of the effectiveness of the Board of Directors
• Establish a decision process for executive remuneration that ensures fairness and transparency
• Enhance internal control through the implementation of company-wide risk identification and monitoring by the Compliance and Risk Management Committee
• Establish various reporting desks

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD