Digital Arts Inc.
Climate Impact & Sustainability Data (2022-04 to 2023-03)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:258 tons (fiscal 2021)
Scope 1 Emissions:0
Scope 2 Emissions:258 tons (fiscal 2021)
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Set a target for GHG emissions in Scope 2 (indirect emissions from electricity consumption) in fiscal 2025 to be effectively zero.
Social Achievements
- Aiming to build a comprehensive training environment, working to launch and enhance in-house training for each job level, training for each skill, and support systems for acquiring qualifications.
- Created a system and culture that encourages proactive career development and skill acquisition by starting career design training and introducing company-wide examples of personal development activities and awards.
Governance Achievements
- Established a Sustainability Committee in April 2022 to strengthen its efforts to realize a sustainable society.
- The Board of Directors receives reports from the Committee and monitors and oversees the efforts to address issues and the goals set.
Climate Goals & Targets
Short-term Goals:
- Target for GHG emissions in Scope 2 in fiscal 2025 to be effectively zero.
Environmental Challenges
- Risks related to changes in the sales situation and operating environment of major distributors affecting the Group
- Risks associated with changes in the national budget and local government policies affecting the Group’s product sales to schools and local municipalities
- Risks related to internet regulations, free services provided by NPOs and other organizations, and services mounted on future OSs at no cost
- Risks of specializing in the security business
- Risks related to fluctuation in the Group’s quarterly net sales results
- Risks associated with laws and regulations
- Risks associated with the future decline of internet use in business, schools and homes
- Limitation in protecting intellectual property rights (including patents)
- Risks associated with the Group’s technology obsolescence and deterioration of technological innovation
- Risks associated with bugs and defects on products offered by the Group
- Risks associated with issues in the mainstay system (server) owned by the Group
- Reliance on key management, and securing/developing talent
- Risks pertaining to merger and acquisitions, and assignment/acquisition of business rights
- Risks associated with natural disaster, disaster, terrorist activities, war, the spread of infections and power outage
Mitigation Strategies
- Endeavors to expand net sales by reaching out effectively to distributors.
- Enhanced the linkage and features of its mainstay products of i-FILTER, m-FILTER and FinalCode and added a broad array of security solutions to them in response to mounting needs for comprehensive security.
- Released the D Alert Reporting Service as a new low-cost option for the swift detection of incidents for customers facing difficulties in hiring personnel or security cost issues.
- Released Anti-Virus & Sandbox to steadily achieve an increase in orders.
- Newly equipped i-FILTER with a credential protection function to provide customers with a higher security level.
- Continuously reviews its personnel programs to ensure that it offers attractive levels of pay, a fair evaluation program and a full lineup of employee training programs and we also strive to attract and retain talented human resources by actively engaging in both new graduate and mid-career recruitment.
- Acquired the Privacy Mark and developed a system in compliance with Information Security Management System (ISMS) requirements.
- Exercises integrated management in relation to business risks that might arise as a result of its business activities to prevent risks and deal with any risks that arise, based on the Risk Management Regulations established by the Board of Directors.
Supply Chain Management
Climate-Related Risks & Opportunities
Transition Risks
- Introduction of carbon taxes