Drecom Co., Ltd.

Climate Impact & Sustainability Data (2020-04 to 2020-12, 2021-03 to 2022-03, 2022-03, 2022-04 to 2022-06, 2022-04 to 2022-09, FY2022 Q1 (Apr-Jun))

Reporting Period: 2020-04 to 2020-12

Environmental Metrics

ESG Focus Areas

Governance
Social

Social Achievements

Implemented remote work and encouraged male employees to take parental leave.
Established a massage room, a cafe space, and supported knowledge-sharing events and technical information dissemination to improve employee well-being and skill development.
Supported startup communities through programming classes for junior high and high school students, participation in startup-related events, and providing office space for study sessions and seminars.

Governance Achievements

Actively appointed female directors (20% female director ratio as of January 2021).
Maintained a balance between internal and independent outside directors (60% independent outside directors as of January 2021).
Appointed independent outside directors with diverse expertise (certified public accountants, lawyers, university professors, etc.).
Held regular monthly board meetings with high attendance (28 meetings in fiscal year 2020, 24 in fiscal year 2019).

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2021-03 to 2022-03

Environmental Metrics

ESG Focus Areas

Diversity and Inclusion
Employee Well-being
Corporate Governance

Social Achievements

Implemented remote work and encouraged male employees to take parental leave.
Established a massage room and a cafe space in the office.
Supported knowledge-sharing events and technical information dissemination.
Held programming classes for junior high and high school students.
Participated in and sponsored various entrepreneurship-related events.
Provided office space for study groups and seminars.

Governance Achievements

Actively appointed female directors (20% female director ratio as of May 2022).
Maintained a balance between internal and independent outside directors (60% independent outside directors as of May 2022).
Appointed independent outside directors with diverse backgrounds (certified public accountants, lawyers, university professors, etc.).
Held regular monthly board meetings with high attendance (19 meetings in FY2022, 24 meetings in FY2021).

Climate Goals & Targets

Medium-term Goals:

Increase revenue by more than 20% year-on-year and maintain an operating profit margin of 15% in FY2024 and FY2025.

Environmental Challenges

Three new game titles released in FY2022 underperformed expectations, leading to impairment losses.
Lower-than-expected sales of new titles.

Mitigation Strategies

Implemented impairment losses on two titles in Q4 of FY2022.
Actively investing in new game development and other business areas to drive future growth.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022-03

Environmental Metrics

ESG Focus Areas

Human Rights
Diversity & Inclusion
Employee Well-being
Community Investment
Corporate Governance

Social Achievements

Implemented remote work and encouraged male employees to take parental leave.
Established a massage room and a cafe space for employees.
Supported knowledge-sharing events and technical information dissemination.
Held programming classes for junior high and high school students.
Participated in and sponsored various entrepreneurship-related events.
Provided office space for study groups and seminars.

Governance Achievements

Actively appointed female directors (20% female director ratio as of May 2022).
Maintained a balance between internal and independent outside directors (60% independent outside directors as of May 2022).
Appointed independent outside directors with diverse backgrounds (certified public accountants, lawyers, university professors, etc.).
Held regular monthly board meetings with high attendance (19 meetings in FY2022, 24 meetings in FY2021).

Climate Goals & Targets

Medium-term Goals:

Achieve over 20% year-on-year revenue growth and maintain a 15% operating profit margin in FY2024 and FY2025.

Environmental Challenges

Three new game titles released in FY2022 underperformed expectations, leading to impairment losses.
Two new game titles released in Q4 of FY2022 required early impairment, resulting in temporary losses.

Mitigation Strategies

Implemented impairment accounting for the underperforming titles.
Actively investing in new game development and other business areas (publishing, Web3) to drive future growth.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022-04 to 2022-06

Environmental Metrics

ESG Focus Areas

Human Rights
Diversity & Inclusion
Employee Well-being
Corporate Governance
Community Investment

Social Achievements

Implemented remote work and encouraged male employees to take parental leave.
Established a massage room and a cafe space in the office.
Supported knowledge-sharing events and technical information dissemination.
Held programming classes for junior high and high school students.
Participated in and sponsored various entrepreneurship-related events.
Provided office space for study groups and seminars.

Governance Achievements

Increased the ratio of female directors to 20% as of May 2022.
Maintained a 60% ratio of independent outside directors on the board as of May 2022.
Appointed experts from various fields (certified public accountants, lawyers, university professors) as independent outside directors.
Held monthly board meetings with high attendance rates (19 meetings in FY2022, 24 in FY2021).

Climate Goals & Targets

Medium-term Goals:

Increase sales by 20% or more year-on-year and maintain a 15% operating profit margin in FY2025.

Short-term Goals:

Increase sales by 20% or more year-on-year and maintain a 15% operating profit margin in FY2023 and FY2024.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022-04 to 2022-09

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Human Rights
Diversity & Inclusion
Employee Well-being
Corporate Governance
Community Investment

Environmental Achievements

Not disclosed

Social Achievements

Implemented remote work and encouraged male employees to take parental leave.
Established a massage room and a cafe space in the office.
Supported knowledge-sharing events and technical information dissemination.
Held programming classes for junior high and high school students.
Supported student entrepreneurship through programming course sponsorships.
Provided office space for study groups and seminars.

Governance Achievements

Increased the ratio of female directors to 20% as of May 2022.
Maintained a 60% ratio of independent outside directors to all directors as of May 2022.
Appointed experts from various fields (certified public accountants, lawyers, university professors) as independent outside directors.
Held monthly board meetings with high attendance rates (19 meetings in FY2022, 24 in FY2021).

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Become a comprehensive entertainment company providing diverse digital entertainment content globally, centered around IPs.

Short-term Goals:

Increase revenue by more than 20% and maintain a 15% operating profit margin in FY2023 and FY2024.

Environmental Challenges

Release delays for some new game titles.

Mitigation Strategies

Prioritizing quality over speed in game development.

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

Reporting Period: FY2022 Q1 (Apr-Jun)

Environmental Metrics

ESG Focus Areas

Human rights
Diversity
Flexibility in the workplace
Employee health promotion
Skill development
Support for entrepreneurial communities
Governance

Social Achievements

Introduced remote work and encouraged male employees to take childcare leave
Installed massage rooms and a cafe space in the office
Supported knowledge-sharing events
Held programming classes for junior and senior high school students
Spoke at and supported various entrepreneurship-related events
Provided office space for study groups and seminars

Governance Achievements

Actively appointing female directors (20% as of January 2021)
Maintaining a balance between internal directors and independent outside directors (60% independent outside directors as of July 2021)
Appointing diverse independent outside directors with expertise in various fields
Holding regular monthly Board of Directors meetings with high attendance rates (24 meetings in FY2021, 28 in FY2020)

Climate Goals & Targets

Medium-term Goals:

Launch 9 new titles
Further expansion of game business
IP acquisition, cultivation, and development
Breaking away from dependence on the F2P model
Expanding into the overseas market
Business development in new areas (music, light novels, comics)

Short-term Goals:

Return unprofitable titles to profitability by the end of the first half of FY2022

Environmental Challenges

Intense competition in the gaming market
Some unprofitable titles

Mitigation Strategies

Successful cost reduction
Strong sales of anniversary event titles
Addressing unprofitable titles with the aim of returning to profitability in the first half of FY2022