Climate Change Data

Environmental Metrics

ESG Focus Areas

• SDGs
• Climate Change
• Human Capital
• Governance

Environmental Achievements

• Reduced electricity usage from 191,730kWh in FY2022 to 180,590kWh in FY2023
• Initiatives for green purchasing and decarbonization (switching to LED lighting, paper-based folders, eliminating plastic bottles)

Social Achievements

• Obtained B Corporation Certification in January 2022
• Increased proportion of women in management positions from 16% in FY2021 to 20% in FY2023
• SX Farm initiatives employing people with disabilities
• Health management program enhancements (subsidies for health checkups, genetic testing, etc.)

Governance Achievements

• Strengthened Audit & Supervisory Committee with independent outside directors
• Established Sustainability Committee with subcommittees for Environmental, Social, and Governance

Climate Goals & Targets

Environmental Challenges

• Economic downturn risks due to global monetary tightening and overseas economic slowdown
• Rising prices and supply-side restrictions
• Changes in financial and capital markets

Mitigation Strategies

• Synergy between consulting and investment businesses to create new markets and solve social issues
• Blueprint for medium- to long-term growth (targeting ¥25 billion revenue, ¥7 billion ordinary profit, 28% profit rate, and 800 employees by FY2026)

Supply Chain Management

Responsible Procurement

• Green purchasing initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corporation Certification

Awards & Recognition

• B Corporation Certification

Environmental Metrics

ESG Focus Areas

• Human Assets
• Climate Change
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 50% compared to FY 2021 by FY 2030. Net-zero by FY 2050 (Scope 1, 2).
• Initiatives for green purchasing (eliminating plastic bottles, switching to paper folders, LED lighting).
• Switching to renewable electricity by procuring FIT Non-Fossil Certificates.

Social Achievements

• Established Human Assets Development Policy (March 2023) and SIGMAXYZ Group Human Rights Policy (April 2024).
• Improved work environment supporting value co-creation (Holacracy-based organization, capability development framework, learning programs, health management program).
• Increased proportion of employees taking childcare leave (Group) to 50% in FY2023.

Governance Achievements

• Established Sustainability Committee to examine ESG and SDG challenges.
• Established Risk Management Committee to identify and manage human assets risks.
• Established Compliance Committee to oversee legal compliance, including an Anti-Bribery Policy (September 2023).

Climate Goals & Targets

Environmental Challenges

• Macro-economic environment downturn impacting client conditions.
• Business continuity risks from natural disasters, infectious diseases, and system disruptions.
• Market risk from price fluctuations in fund management assets.
• Information management risk from confidential and personal data.
• Compliance risk from potential violations by officers or employees.
• Legal risk from potential lawsuits.
• Credit risk from inability to collect receivables.
• Reputation risk from malicious information spread.
• System risks from damage to system facilities or large-scale system failures.
• Risks associated with using new technology (AI).
• Risks relating to securing consultants.
• Risks relating to outsourcing.
• Investment risk in domestic and overseas companies.

Mitigation Strategies

• Cost control policies to minimize impact of economic downturn.
• Building a crisis management system and strengthening systems platform, including digital workplaces.
• Internal regulations for fund management decision-making.
• Confidentiality agreements with clients and careful management of information.
• Compliance Code of Conduct, Chief Compliance Officer, and Compliance Committee.
• Internal regulations to manage contract conditions.
• Credit management rules and checks for links to organized crime.
• Sound corporate management and proactive information disclosure.
• Strengthening system platform and ensuring business continuity.
• Acquiring and developing human assets well-versed in new technologies and establishing contract conditions limiting liability.
• Hiring and developing excellent human assets, ensuring suitable positions and salary structure.
• Regular reviews of quality standards and management systems for outsourcing contractors.
• Examination by Investment Committee.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale natural disasters caused by climate change

Transition Risks

• Negative impacts due to macroeconomic stagnation caused by carbon pricing

Opportunities

• Increased demand for consulting support for the transition to a decarbonized society and adaptation to climate change

Reporting Standards

Frameworks Used: SDGs, ESG

Certifications: B Corporation Certification