FRONTEO, Inc.
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
ESG Focus Areas
- Economic Security
- Diversity & Inclusion
- Governance
Social Achievements
- Launched new AI solutions for various fields, contributing to social issue resolution.
- Developed and released new AI medical device programs (cognitive impairment diagnosis support, fracture screening, schizophrenia diagnosis support, and depression/mania diagnosis support).
Governance Achievements
- Strengthened corporate governance by increasing the number of outside directors.
- Implemented a stock option plan for employees to enhance motivation and attract talent.
Climate Goals & Targets
Short-term Goals:
- Achieve Stage 4 of the mid-term strategy by 2026 (details in the business plan and growth potential document released on May 20, 2022).
Environmental Challenges
- Sales in the Business Intelligence field were lower than expected in the second half of the fiscal year.
- Maintaining a balance between concentrating resources on AI businesses and strategically reducing non-AI related businesses.
Mitigation Strategies
- Strengthening sales structure to capture sales opportunities in the Business Intelligence field.
- Strategic reduction of non-AI related businesses to focus resources on AI business.
- Active investment in human resources to support long-term growth.
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- AI medical device programs
- AI solutions for economic security
- AI solutions for business intelligence
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions through the use of Green micro AI
Social Achievements
- Developed AI solutions to address social issues such as smart healthcare initiatives (fall/fall prediction AI, dementia diagnosis support AI, etc.), AI drug discovery, and support for international litigation fairness.
- Achieved a 33.6% female employee ratio and a 16.9% female management ratio as of March 31, 2023.
Governance Achievements
- Established corporate governance, compliance, and information security basic policies.
- Maintained ISO27001 certification.
Climate Goals & Targets
Environmental Challenges
- Addressing social issues such as dementia diagnosis, child abuse, and mental health deterioration.
- Ensuring fairness in international litigation.
- Protecting investors in financial institutions.
- Preventing workplace accidents.
- Maintaining economic security through supply chain and stakeholder visibility.
Mitigation Strategies
- Developed AI solutions to address each of the above challenges, improving efficiency and accuracy in various processes.
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- AI solutions for healthcare, drug discovery, and legal support