Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Implemented measures to reduce overtime work, including weekly management meetings to check employee overtime situations, incorporating overtime evaluation into the evaluation system.

Governance Achievements

• High proportion of outside directors (4 out of 7)
• One-year term for directors (excluding outside directors)
• Stock-based compensation system for directors
• Zero cross-shareholding

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic (lockdown in the Philippines, decreased inquiries due to reduced use of dining and leisure services, decreased advertising spending)
• Growth of the video market and increased inquiries

Mitigation Strategies

• Promotion of telework and staggered commuting
• Maintaining service provision

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced resource consumption through AI-driven business efficiency and initiatives like free address system, e-Trident for automated post monitoring, hinagata for email efficiency, and e-KYC service for paperless processes.
• Promoted LED lighting.

Social Achievements

• Implemented short-hour work system, flextime, and work-from-home system.
• Established specialist training courses.
• Introduced employee condition visualization tools.
• Reduced overtime.
• Offered birthday leave.

Governance Achievements

• Strengthened the board of directors' functions.
• Established a nomination committee and a compensation committee.
• Achieved 50% external director ratio.
• Implemented a stock-based compensation system for directors since 2015.
• Ensured one-year term for directors (excluding audit committee members).
• Maintained zero cross-shareholding.

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
• Governance

Environmental Achievements

• Reduced paper usage by 52% compared to 2020

Social Achievements

• Approximately 3.5 external training opportunities per year for employees
• 30% female management ratio

Governance Achievements

• 50% external director ratio on the board of directors
• Established a nomination and compensation committee

Climate Goals & Targets

Environmental Challenges

• Completion of medium-sized projects related to the new coronavirus vaccine, resulting in decreased sales.
• Inability to offset the decrease in sales from the completion of existing projects with new project acquisitions.
• Occurrence of low-profit projects.
• Stagnation of center operating rate.
• Impact of decreased sales on profits.

Mitigation Strategies

• Strengthening sales structure
• Utilizing customer bases with Change Holdings
• Strengthening enterprise-level digital BPO area
• Strengthening center structure
• Strengthening profitability management
• Pursuing high productivity
• Increased hiring and training of engineers and sales personnel

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social
• Environmental
• Governance

Environmental Achievements

• Reduced paper usage by 52% since 2020

Social Achievements

• Women's management ratio exceeding 30%

Governance Achievements

• 50% external director ratio
• Establishment of nomination and remuneration committees

Climate Goals & Targets

Environmental Challenges

• Increased costs from new center expansion
• Low-profit large-scale project due to miscommunication and differing expectations with the client
• Decreased revenue in game support business due to market shifts

Mitigation Strategies

• Addressing low-profit project through improved communication and relationship maintenance with the client
• Continued investment in new centers despite initial low occupancy rates, anticipating future growth
• Offering localization services (language support) to support Japanese and international game companies

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Green procurement promoted through the Green Purchasing Law

Social Achievements

• 26% female management ratio (national average: 7.9% for equivalent positions)
• Approximately 5.4 external training sessions per employee (previous year: 3.5)

Governance Achievements

• 7 out of 7 board members are external directors
• Establishment of Nomination, Compensation, and Special Committees

Climate Goals & Targets

Environmental Challenges

• Sales and operating income fell short of revised plans due to factors that have since been addressed.

Mitigation Strategies

• Strengthened sales organization, implemented training, shared consulting know-how with Change HD, improved cost management, stricter pricing for new projects, improved operational efficiency using AI.

Supply Chain Management

Climate-Related Risks & Opportunities