Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Contribution
• Human Resources
• Corporate Governance

Environmental Achievements

• Promoting digital downloads to reduce emissions from transporting physical products and conserve resources.
• Using recyclable materials in the production of physical products.

Social Achievements

• Age suitability labeling on games in various regions.
• Compliance with CESA guidelines on random item distribution in mobile games.
• Collaborations with academia to support the development of society and the content industry.
• Implementation of various human resource programs supporting diverse working styles.

Governance Achievements

• Transitioned to a company with an Audit & Supervisory Committee.
• Strengthened monitoring functions of the Board of Directors by staffing it primarily with outside directors.
• Established the Remuneration & Nomination Committee with a majority of independent outside directors.

Climate Goals & Targets

Environmental Challenges

• Rise in business costs with future introduction of policies such as carbon taxes.
• Rise in cost of materials, production and procurement costs with restrictions on use of plastic.
• Disruptions to business continuity, physical damage, and impact on employee workstyles and lifestyles from natural disasters and global warming.
• Increased difficulty and longer timelines for developing game titles due to performance gains by consoles and devices.
• Intensified competition to attract talent and fewer external partner companies capable of handling large-scale development projects.

Mitigation Strategies

• Plans to switch Japanese offices and data centers to renewable energy to limit greenhouse gas emissions.
• Further consideration of emissions from other facilities.
• Overhauling studio portfolio and optimizing resource allocation.
• Strengthening internal development resources and improving domestic and overseas publishing functions.
• Focusing on internal development resources and improving publishing functions.
• Striking a balance between internal and external resources in new business domains (blockchain, AI, cloud).
• Revisiting the missions of internal AI-dedicated R&D organization and AI-specialized Group operating company.

Supply Chain Management

Responsible Procurement

• Using recyclable materials in production.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and global warming

Transition Risks

• Rise in business costs with carbon taxes
• Increased costs due to plastic restrictions

Opportunities

• Carbon tax reduction via shift to renewable energy
• Reduced costs with increased shift to digital

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance
• Climate Change
• Human Capital
• Intellectual Property

Environmental Achievements

• Reduced CO2 emissions from Japanese offices/data centers by approximately 50% between FY3/17 and FY3/24 (from 34,320 tCO2e to 20,625 tCO2e). Target of virtually zero emissions from Japanese offices/data centers by 2030 and 50% reduction in emissions from amusement facilities by 2050.
• Promoting digital downloads of video games to reduce transportation emissions and resource consumption.

Social Achievements

• Approximately 29% of Group employees are female, roughly 19% are foreign nationals, and roughly 85% are mid-career hires as of March 31, 2024.
• Compliance with age appropriateness rating systems (CERO) and Operational Guidelines for the Provision of Random Items in Networked Games (CESA) to ensure customer safety and transparency.

Governance Achievements

• Transitioned to a Company with an Audit & Supervisory Committee on June 22, 2018.
• Established a Remuneration and Nomination Committee with a majority of independent outside directors.

Climate Goals & Targets

Environmental Challenges

• Rising business costs due to future carbon taxes.
• Increased material and production costs due to plastic restrictions.
• Business continuity disruptions and physical damage from natural disasters/global warming.

Mitigation Strategies

• Plans to switch Japanese offices and data centers to renewable energy to reduce carbon tax and emissions.
• Shifting to digital to reduce costs associated with plastic.

Supply Chain Management

Responsible Procurement

• Clause in contracts with business partners requiring no relations with antisocial forces.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters/global warming impacting business continuity, causing physical damage, and affecting employee workstyles/lifestyles.

Transition Risks

• Rise in business costs with future introduction of policies such as carbon taxes.
• Rise in cost of materials and production/procurement costs with restrictions on use of plastic.

Opportunities

• Carbon tax reduction via shift to renewable energy.
• Reduced costs such as for plastic with increased shift to digital.

Sustainable Products & Innovation

• Digital downloads of video games