Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Use of forest certified paper and vegetable oil ink for products
• Reduction of paper resources by digitizing sample magazines and documents
• Expanding the inventory-free production model by POD
• Environmental preservation & safety awareness activities through Japan Mountains Heritage Fund
• Installing green electricity with building management company

Social Achievements

• Expansion of books and courses for GIGA schools and certification exams
• Various services with direct guidance from professionals
• Promotion of reading barrier-free, free access to article archives
• Flexible working style with super-flexible system
• Mobility and activation of human resources through recruitment within the group
• Skill development through training, voluntary study groups, and planning support programs

Governance Achievements

• Group management that maintains independence and strengthens horizontal synergies
• Selecting standard market and co-creation through promotion of IR and M&A
• SCM through partnerships with distributors and warehouses
• Participation in xSDG Consortium and publish “SDGs Whitepaper”
• Set up different types of hotlines, ethical business activities

Climate Goals & Targets

Environmental Challenges

• Decline in print publishing market, mainly magazines

Mitigation Strategies

• Expanding non-print publishing businesses such as Electronic Publishing, Internet Media, Target Media, and Platform Business
• Media mix development
• Development of new business models
• DX promotion
• M&A and other measures

Supply Chain Management

Responsible Procurement

• SCM through partnerships with distributors and warehouses

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Environmental Metrics

ESG Focus Areas

• Governance
• Risk Management
• Human Capital Development
• Sustainability

Environmental Achievements

• Implemented GHG emissions calculation for Scope 1, 2, and 3.
• Joined UN's SDG Media Compact.
• Participated in the "1.5℃ Promise" campaign.

Social Achievements

• Established "Impress Sustainable Lab" to promote non-financial information disclosure.
• Developed and implemented various policies (Sustainability Basic Policy, Group Environmental Policy, Group Human Rights Policy, Partner Code of Conduct, Personnel Development and Environmental Improvement Policy).
• Implemented a second career support system and additional personnel reduction measures.

Governance Achievements

• Established Risk & Opportunity Management Office (formerly Sustainability Officer) reporting regularly to the board.
• Established Nomination Committee and Remuneration Committee.
• Implemented a system for reporting important management information to the representative director.

Climate Goals & Targets

Environmental Challenges

• 19 consecutive years of decline in paper publication sales.
• Rising costs of paper, printing, logistics, and employee compensation.
• Decreased profitability in publishing and e-publishing.
• Adjustment phase for target media business.
• Overall revenue decrease.
• Risks related to climate change (e.g., paper resource reduction due to forest fires, reduced demand for paper publications due to environmental awareness, disruption of distribution networks due to abnormal weather).
• Risks related to supply chain disruptions and dependence on major distributors.

Mitigation Strategies

• Fundamental review of revenue and business portfolio.
• Structural reform of publishing business.
• Development of long-term growth base.
• Restructuring of business operations, including personnel rationalization.
• Portfolio adjustments, focusing on high-value-added products.
• Price increases.
• Improvement of return rate and production efficiency.
• Expansion of e-publishing in aviation and railway segments.
• Promotion of manga content development in mobile service segment.
• Development of DtoC business model.
• Strengthening of digital advertising and target advertising.
• Exploration of collaboration with external partners to expand business scale and strengthen business development capabilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires reducing paper resources.
• Abnormal weather disrupting distribution networks and data center communications.

Transition Risks

• Reduced demand for paper publications due to increased environmental awareness.

Opportunities

• Increased demand for SDGs-related products/services.
• Development of new products/services using AI and other new technologies.
• Creation of environmentally friendly distribution methods and markets (ethical consumption).
• Efficiency improvements through industry-wide integration of bases and production processes.

Environmental Metrics

ESG Focus Areas

• Society
• Climate Change

Environmental Achievements

• GHG Scope 2 (electricity consumption) is almost 100% non-fossil certificate power (green power).

Social Achievements

• Increased female employee ratio to 40.6% (as of March 31, 2024).
• Active promotion of women's advancement, resulting in the first female executive officer in 2018 and the first female vice president in 2020.
• Implementation of super flextime system with no core time to support diverse work styles.
• Aiming for a 50:50 gender ratio across all employee levels by 2030.

Governance Achievements

• Established a Nomination Committee and a Remuneration Committee, both with independent outside directors as major members.
• Implemented a system for reporting risks and opportunities to the board of directors every three months.

Climate Goals & Targets

Environmental Challenges

• Significant decline in profitability of the publishing business, resulting in an operating loss in fiscal year 2023.
• Relatively low ratio of institutional and foreign investors.

Mitigation Strategies

• Prioritizing business recovery and reviewing the medium-term management plan.
• Considering the utilization of an electronic voting platform and translation of the meeting notice into English, depending on future shareholder composition.
• Implementing a system for reporting risks and opportunities to the board of directors every three months.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD