Funai Soken Holdings Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:653.2 t-CO2e (2019)
Renewable Energy Share:13.44%
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
Environmental Achievements
- Reduced GHG emissions by 50% vs. 2019 (Scope 1 and 2)
- 13.44% of total electricity consumption from renewable energy in 2021 (Tokyo office)
Social Achievements
- Launched "Lady Go" project to help women forge meaningful careers
- Women make up 38.1% of the workforce and 23.8% of management positions in 2022
Governance Achievements
- Established a Risk Management Committee
- Majority of outside directors on the Board of Directors
- Acquired ISMS certification for Funai Soken Holdings and Funai Soken Digital
Climate Goals & Targets
Long-term Goals:
- Achieve 100% renewable energy procurement rate at all Japanese sites by 2030
- 30% women in management positions by 2030
- 40% women in the workforce by 2030
Short-term Goals:
- Increase consultants and business staff by 10% annually
Environmental Challenges
- Supply chain disruptions
- Climate change related risks (physical and transition)
- Competition in the consulting industry
- Securing and retaining talent
- Information security risks
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented climate change risk management strategies
- Developed industry-specific DX modules
- Improved employee value proposition (EVP)
- Strengthened information security framework and acquired ISMS certifications
Supply Chain Management
Responsible Procurement
- Support for clients and suppliers in responding to climate change issues
Climate-Related Risks & Opportunities
Physical Risks
- More severe natural disasters impacting business operations
Transition Risks
- Increased awareness of climate change and decarbonization among clients
- Reputation loss due to lack of climate action
Opportunities
- Growing demand for consulting services related to decarbonization
Reporting Standards
Frameworks Used: TCFD
Certifications: ISMS, ISO/IEC 27001 (Funai Soken Holdings and Funai Soken Digital)
Sustainable Products & Innovation
- Industry-specific DX modules
Awards & Recognition
- Chosen by the Government Pension Investment Fund as the Most Improved Integrated Report 2022
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:379.3 t-CO₂
Scope 1 Emissions:2.9 tCO2e/year
Scope 2 Emissions:376.4 tCO2e/year
Renewable Energy Share:100% (target by 2030 for Japanese sites)
ESG Focus Areas
- Climate change
- Human capital
- Information security
- Business
Environmental Achievements
- Switched Tokyo Headquarters energy supply contract to renewable energy sources in June 2021.
Social Achievements
- Women held 34.6% of management positions at Funai Soken Holdings in 2023, and 22.6% across the whole Funai Soken Consulting Group.
- Continued majority of outside directors on the board.
Governance Achievements
- Established a Sustainability Committee in 2021, chaired by an outside director.
- Established a Sustainability Office with four groups overseeing environmental, human capital, information security, and business aspects.
Climate Goals & Targets
Medium-term Goals:
- Achieve a 100% renewable energy procurement rate at all its Japanese sites by 2030.
Short-term Goals:
- Reduce greenhouse gas emissions by 50% compared with 2019 levels by 2025.
Environmental Challenges
- Maintaining high profitability while expanding business to provide a full spectrum of solutions for SMEs and mid-scale companies.
- Controlling turnover among consultants under remote work.
- Securing and developing human resources.
- Country risk in overseas business (Shanghai, China).
- Risks associated with logistics BPO services (accidents, quality defects).
- Competition in the digital and HR solutions industries.
- Potential for deviations between investment plans and actual performance in new business domains.
- Maintaining the Funai Soken brand strength.
- Information security risks.
- Building adequate internal control systems in response to rapid business expansion.
- Risks related to assets held.
- Risks of major disasters and pandemics.
Mitigation Strategies
- Aggressive investment in HR, focusing on consultant human resources.
- Strengthening cooperation among Group companies.
- Active recruitment of career professionals in high-growth domains.
- Strengthening recruitment and training of PM human resources.
- Active assignment of business human resources to system development.
- Improving employee value proposition (EVP) to boost retention.
- Relocating Tokyo office to consolidate into a single floor.
- Sharing the Group Purpose to increase employee engagement.
- Establishing a framework of due diligence to ensure compliance with the UN’s Guiding Principles on Business and Human Rights.
- Implementing a safety confirmation system.
- Strengthening systems and infrastructures to prevent data loss.
- Developing ESG consulting services and providing implementation support.
- Established a Risk Management Committee.
- Relocating Tokyo Head Office to Tokyo Midtown Yaesu in April 2024.
- Established a Group-wide system for controlling information security-related regulations.
- Regular discussions at the Sustainability Committee, chaired by an outside director.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Severe natural disasters
- Data loss due to damage to offices
Transition Risks
- Increased awareness of climate change and decarbonization
- Reputation loss due to lack of climate action
Opportunities
- Growing demand for environmentally conscious consulting services
Sustainable Products & Innovation
- ZEB/ZEH building business solutions
- TCFD compliance, CDP response, SBT certification, decarbonization roadmap development, and carbon neutrality support solutions