Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Monetary donations to repair damage from the Great East Japan Earthquake of 2011
• Volunteer activities to support affected areas
• Participation in the Ecocap Movement to fund vaccines for children around the world
• Introduction of employee assistance programs to promote the mental and physical health of employees

Governance Achievements

• Development of a system for the early detection of compliance violations by employees

Climate Goals & Targets

Environmental Challenges

• Deteriorating business conditions for pachinko parlor operators
• Higher capital investment burden
• Tougher stance toward loans on the part of financial institutions
• Impact of the Great East Japan Earthquake of March 2011
• Tightening of advertising regulations in 2012

Mitigation Strategies

• Enhance the handling of advertisements through Internet-related media and swiftly develop and introduce new contents
• Increase the client acquisition rate by enhancing the quality and volume of advertising proposal activities
• Reduce cost through optimization of creative resources
• Rigorously manage revenue by region as well as service
• Maximize performance with limited human resources by leveraging flexibility of the organization and development of appropriate structures

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented paperless office and eco-car initiatives to conserve resources and energy.

Social Achievements

• Donated to victims of the 2011 Great East Japan Earthquake, participated in disaster relief volunteer activities, participated in the Eco-Cap collection activity to send vaccines to children around the world, and introduced EAP (Employee Assistance Program) for employee health.

Governance Achievements

• Established a system for early detection of compliance violations by employees.
• Implemented a corporate governance structure with a board of directors and a supervisory board to ensure transparency and accountability.

Climate Goals & Targets

Environmental Challenges

• Decreasing market size of the pachinko industry due to various factors including stricter regulations and economic downturn.
• Need for optimization of creative resources to reduce costs.

Mitigation Strategies

• Pursuing value-added services and productivity improvements to maintain market leadership.
• Exploring new business opportunities and actively engaging in business development.
• Cost reduction through optimization of creative resources.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Volunteer activities to support areas affected by the Great East Japan Earthquake of 2011
• Participation in the Ecocap Movement to fund vaccines for children around the world
• Introduction of employee assistance programs to promote the mental and physical health of employees

Governance Achievements

• Development of a system for the early detection of compliance violations by employees

Climate Goals & Targets

Environmental Challenges

• Transformation of the earnings structure in the pachinko parlor advertising business
• Declining advertising expenses by pachinko parlors reflecting the shrinking market in the pachinko industry

Mitigation Strategies

• Pursuing advertising sales activities targeting clients in industries other than pachinko parlors
• Develop and sell Internet media
• Continuously develop and supply attractive outdoor advertising businesses
• Use subsidiary U&U Co., Ltd. as a launching pad to acquire new clients
• Start commercializing the printing business
• Start testing commercialization of design contracted business
• Promoting continuous cost reduction
• Continue with centralization of the creative department
• Review the direct mail printing and posting related expenses

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented paperless office and eco-car initiatives to reduce resource consumption and energy usage.

Social Achievements

• Donated to victims of the 2011 Great East Japan Earthquake, participated in disaster relief volunteer activities, participated in the Eco-Cap collection activity to send vaccines to children worldwide, and introduced EAP (Employee Assistance Program) for employee well-being.

Governance Achievements

• Established a system for early detection of compliance violations by employees.
• Implemented a corporate governance structure with a board of directors and an executive committee, ensuring separation of decision-making, management oversight, and business execution.

Climate Goals & Targets

Environmental Challenges

• Decreasing market size of the pachinko industry.
• Strengthened advertising regulations.

Mitigation Strategies

• Pursuing service value addition and productivity improvement.
• Seeking new business opportunities and actively engaging in business development.
• Optimizing creative resources to reduce costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented paperless office and eco-car initiatives to conserve resources and energy.

Social Achievements

• Participated in volunteer activities for Tohoku earthquake disaster relief and eco-cap collection for vaccines for children worldwide.
• Introduced EAP (Employee Assistance Program) for employee well-being.

Governance Achievements

• Established mechanisms for early detection of compliance violations by employees.

Climate Goals & Targets

Environmental Challenges

• Changing revenue structure in the pachinko hall advertising business.
• Need to expand advertising business to clients outside the pachinko industry.
• Need to develop and sell internet media leveraging existing expertise in print media.
• Need to adapt to changes in the labor market and develop internal systems for recruitment advertising in pachinko halls.
• Need for continuous cost reduction.

Mitigation Strategies

• Developing and selling internet media and utilizing subsidiary Ensign Ad for outdoor advertising.
• Utilizing subsidiary U&U for acquiring new clients, including e-commerce companies.
• Developing internal systems and collaborating with recruitment media companies for recruitment advertising.
• Starting printing business for non-pachinko clients and design outsourcing business.
• Consolidating creative departments using subsidiary Julia Japan and optimizing design-related costs.
• Reviewing direct mail printing and postage costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Volunteer activities to support areas affected by the Great East Japan Earthquake of 2011
• Participation in the Ecocap Movement to fund vaccines for children around the world
• Introduction of employee assistance programs to promote the mental and physical health of employees

Governance Achievements

• Development of a system for the early detection of compliance violations by employees
• Introduction of an executive officer system for segregating decision making and management oversight from business execution

Climate Goals & Targets

Environmental Challenges

• Polarization in the pachinko industry and changes in the inclinations of users
• Contracting pachinko market

Mitigation Strategies

• Fine-tuned promotion support services based on an understanding of the psychology of fans
• Proposals of marketing plans aimed at retaining fans
• Continuously pursuing added value and productivity in services as the market leader

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Volunteer activities to support areas affected by the Great East Japan Earthquake of 2011
• Participation in the Ecocap Movement to fund vaccines for children around the world
• Introduction of employee assistance programs to promote the mental and physical health of employees

Governance Achievements

• Development of a system for the early detection of compliance violations by employees
• Introduction of an executive officer system to segregate decision-making and management oversight from business execution

Climate Goals & Targets

Environmental Challenges

• Contracting market size in the pachinko industry
• Declining player population

Mitigation Strategies

• Fine-tuned promotion support services based on an understanding of fan psychology
• Marketing plans aimed at retaining fans
• Continuous pursuit of added value and productivity in services
• Actively working on business development

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented paperless office and eco-car initiatives to reduce resource consumption and energy usage.

Social Achievements

• Participated in volunteer activities for Tohoku earthquake disaster relief, participated in eco-cap collection activities to send vaccines to children worldwide, and introduced EAP (Employee Assistance Program) for employee well-being.

Governance Achievements

• Established a system for early detection of compliance violations by employees.
• Implemented a corporate governance structure with a board of directors and a supervisory board to ensure transparency and accountability.

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: Null

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 Responsibility
• Corporate Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Volunteer activities to support areas affected by the Great East Japan Earthquake of 2011
• Participation in the Ecocap Movement to fund vaccines for children around the world
• Introduction of employee assistance programs to promote the mental and physical health of employees

Governance Achievements

• Development of a system for the early detection of compliance violations by employees
• Introduction of an executive officer system to segregate decision-making and management oversight from business execution

Climate Goals & Targets

Environmental Challenges

• Contracting market size in the pachinko parlor industry
• Declining player population in the pachinko industry

Mitigation Strategies

• Proactive structural reorganization
• Pursuing M&A and the development of new business
• Actively working on business development to realize sustained growth

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles

Social Achievements

• Participation in the Ecocap Movement to fund vaccines for children around the world, and the introduction of employee assistance programs to promote the mental and physical health of employees.

Governance Achievements

• Introduced an executive officer system for the purpose of segregating decision making and management oversight from business execution and clearly defining responsibilities.
• Development of a system for the early detection of compliance violations by employees.

Climate Goals & Targets

Environmental Challenges

• Changes in the business environment requiring flexible responses and sustainable growth.

Mitigation Strategies

• Proactive structural reorganization, pursuing M&A and the development of new business, and working proactively to diversify the range of industries and business categories covered.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Strive for paperless operation in offices and use eco-cars for company vehicles
• Participation in the Ecocap Movement to fund vaccines for children around the world

Social Achievements

• Introduction of employee assistance programs to promote the mental and physical health of employees
• Various CSR activities as an ongoing concern trusted by society

Governance Achievements

• Management system with checks and effective oversight of business execution by means of the election of outside directors
• Introduction of an executive officer system for segregating decision making and management oversight from business execution and clearly defining responsibilities
• Development of a system for the early detection of compliance violations by employees

Climate Goals & Targets

Environmental Challenges

• Advertising demand fell dramatically due to the impact of COVID-19

Mitigation Strategies

• Further develop the customer referral support service of IDEAL
• Offer new services leveraging the video creation service and accumulated knowhow
• Focus on development of advertising services adapted to the evolving technologies in the digital advertising field, and training of employees involved with those services
• Further promotion of teleworking
• Shift to new sales styles that leverage digital tools
• Revamp personnel system to boost the motivation and productivity of employees

Supply Chain Management

Climate-Related Risks & Opportunities