Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Achieved an A score in CDP Climate Change Report 2023
• Raised the percentage of renewable energy sources used at business sites to 100% in FY2023

Social Achievements

• Certified Health and Productivity Management Outstanding Organization (Large Enterprise Category)
• No.1 certification in Oricon Customer Satisfaction® Survey, Standalone Housing Renovations
• Exceeded target of 50% female employees in FY2023 (56.4%)

Governance Achievements

• Included in major ESG investment indices (S&P/JPX Carbon Efficient Index)
• Board was 53.8% independent directors and 30.8% women

Climate Goals & Targets

Environmental Challenges

• Net sales fell in fiscal 2023 due to slowed consumption and increased leisure spending

Mitigation Strategies

• Improved operating income ratio due to gross profits outpacing increases in selling, general and administrative expenses

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Certified Health and Productivity Management Outstanding Organization (Large Enterprise Category)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Building a Responsible Value Chain
• Promoting Synergies with Local Communities

Environmental Achievements

• Achieved 100% renewable energy at 150 business sites where the Company contracts directly with power suppliers.
• Reduced Scopes 1 and 2 GHG emissions by 22.5% compared with FY2021.
• Reduced Scope 3 (Categories 1 and 11) GHG emissions by 15.9% compared with FY2021.
• 86.4% reduction in plastics used for shopping bags (compared with FY2019).

Social Achievements

• Recognized as a Certified Health & Productivity Management Outstanding Organization (Large Corporation Category) for five consecutive years.
• Increased percentage of female new hires to 56.4%.
• Launched Joshin Smile Program, a new loyalty program.
• Held the first Joshin Customer Service Roleplaying Contest.

Governance Achievements

• Increased percentage of independent directors to 44.4% and female directors to 22.2%.
• Introduced a performance-linked stock-based compensation system for employees.
• Increased target payout ratio from 30% to 40% or more.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population leading to labor shortages.
• Shrinking home appliance market due to various factors including normalization of demand after the COVID-19 pandemic.
• Increased competition from online retailers and direct-from-manufacturer sites.
• Logistics challenges due to the "2024 problem" (driver shortage, increasing costs).
• Achieving targets in the JT-2025 Management Plan.

Mitigation Strategies

• Implementing ICT to improve efficiency and reduce labor needs.
• Strengthening the east-west logistics network.
• Focusing on improving quality and sales strength at existing stores.
• Structural improvements in the EC store business.
• Implementing the fan base strategy.

Supply Chain Management

Supplier Audits: 249 suppliers surveyed in the supply chain procurement questionnaire (60.6% response rate)

Responsible Procurement

• Joshin Group Procurement Policy and Procurement Guidelines
• UN Global Compact Ten Principles
• Voluntary Action Guidelines for Product Safety of Joshin Group

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., the 2024 Noto Peninsula Earthquake)

Transition Risks

• Introduction of carbon pricing
• Rising renewable energy prices
• Reduction in consumer demand for environmentally friendly products

Opportunities

• Expanding sales of environmentally friendly products
• Developing a renewable energy agency business for consumers
• Expanding EV-related business

Reporting Standards

Frameworks Used: TCFD, SASB, SDGs

Certifications: ISO 14001, PrivacyMark, SBT

Third-party Assurance: Japan Audit and Certification Organization for Environment and Quality (JACO)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy adoption, waste reduction, and GHG emission reductions.

Sustainable Products & Innovation

• Energy-saving home appliances
• Aperture insulation products
• Eco-friendly window products
• High-efficiency water heaters

Awards & Recognition

• CDP Climate Change Program "A" score
• Gold Product Safety Company

Environmental Metrics

ESG Focus Areas

• Diversity & Inclusion
• Climate Change
• Sustainability
• Employee Engagement
• Corporate Governance

Environmental Achievements

• Achieved 100% renewable energy ratio for business places receiving electricity under power purchase agreements in March 2024.
• Earned CDP’s highest rating of “A” in the climate change category in fiscal 2023.
• Company’s head office building has acquired ISO 14001 certification.

Social Achievements

• Increased the ratio of female employees and hiring career professionals with immediate ability in various fields, as well as promoting them to management positions.
• Planning to increase the ratio of female managers to 20% by fiscal 2030.
• Established and announced the Joshin Group Human Rights Policy, the Joshin Group Procurement Policy and Procurement Guidelines, and the Joshin Group D&I Policy and Joshin Group Anti-Corruption Policy.

Governance Achievements

• Revised compensation system to link director compensation to management strategy and connect achievement of the strategy to the Company’s sustainable growth and enhancement of corporate value.
• Introduced ESG indicators in the calculation basis for stock compensation.
• Established the Evaluation Committee for the Board of Directors to investigate the effectiveness of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population impacting consumer purchasing behavior, market size, and working population.
• Climate change posing risks to the global economy and biodiversity.

Mitigation Strategies

• Supporting and strengthening resilience in our aging society.
• Promoting the use of home appliances with high performance in energy generation, energy storage, and energy saving.
• Working to reduce environmental impact by increasing the ratio of renewable energy sources.
• Established a transition plan to address the goal of limiting the global average temperature rise to 1.5°C.

Supply Chain Management

Responsible Procurement

• Joshin Group Procurement Policy and Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Popularizing home appliances with high performance in energy generation, storage, and saving

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 22301:2019, Privacy Mark

Sustainable Products & Innovation

• Solar power generation, storage batteries, energy-saving appliances

Awards & Recognition

• METI Minister’s Award at the Best Contributors to Product Safety Awards (three consecutive times)
• METI’s Gold Product Safety Company mark

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Diversity & Inclusion
• Human Capital Management
• Symbiosis with local communities

Environmental Achievements

• Published a roadmap toward zero carbon, expanding third-party assurance for Scope 3 emissions to cover 98.1% of total emissions.
• Obtained SBT certification for its greenhouse gas emissions reduction target for 2030, aiming to limit emissions to 1.5°C.

Social Achievements

• Launched the first “Joshin Customer Service Role-playing Contest” to improve customer service skills and employee motivation.
• Introduced a new loyalty program with expanded benefits for members.
• Disclosed a breakdown of its human capital investment.

Climate Goals & Targets

Environmental Challenges

• Sluggish internet sales compared to the peak during the COVID-19 pandemic.
• Price competition in the home appliance market.

Mitigation Strategies

• Reviewing and improving the internet sales strategy.
• Focusing on improving customer service skills to sell the right products to the right customers.
• Implementing a new loyalty program to increase customer engagement and retention.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, FTSE

Certifications: SBT