Climate Change Data

Environmental Metrics

ESG Focus Areas

• GHG emissions
• SDGs
• Decarbonization
• DX (Digital Transformation)
• Teleworking

Environmental Achievements

• Launched Future Sustainatopia, utilizing LaiBlitz, Inc.’s metaverse platform to address ESG and SDG concerns. Started disclosing GHG emissions since September 2022.
• Released CPQ SaaS, a cloud-based solution for product configuration and quoting, and launched “Manufacture GX,” a green transformation assistance service for the manufacturing industry.

Social Achievements

• Not disclosed

Governance Achievements

• Strengthening internal communication within the Group and further improving the accuracy of its quality management.

Climate Goals & Targets

Environmental Challenges

• Weaker than expected sales of winter apparel due to weather conditions and fierce competition in the outdoor goods market.
• Depreciation of the yen and rising purchase costs due to raw material and logistics costs.
• Decrease in SI projects at YDC Corporation.

Mitigation Strategies

• YOCABITO CO., LTD. will further enhance its brand awareness through flagship store promotion, etc., and attract more customers to both the EC site and real stores with an addition of another EC site that opened in January, striving to increase profitability.
• CodeCamp, Inc. will enhance its service for corporate customers in consideration of the market needs including DX professional development and reskilling, and continue to focus on growing web-design service for individual customers, aiming to receive more orders.
• YDC Corporation will focus on proposing smart factory solutions to the manufacturing industry and stepping up efforts to propose solutions to new and existing customers by introducing such solutions to pilot customers, while in the logistics area, it will aim to acquire new projects by taking further advantage of the Group synergy.

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

• CPQ SaaS, Manufacture GX

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• SDGs
• Decarbonization
• DX

Social Achievements

• Launched Value Recruitment based on experience and skills developed during student years, applying a new compensation system with an increase in estimated annual salary.
• Disseminating recruitment information on the Group’s unique metaverse platform.

Governance Achievements

• Strengthened internal communication within the Group and further improved the accuracy of its quality management.

Climate Goals & Targets

Environmental Challenges

• Slowdown of IT investment by SMEs following the implementation of the invoice system in Japan.
• Weaker than expected sales of fall and winter apparel because of the warm winter.
• Sluggish sales of outdoor goods due to the increasingly competitive market.

Mitigation Strategies

• Promoting per-product management with utilization of a digital platform, strategic sales price setting, and renewal of some private brands.
• Strengthening digital promotion by analyzing and utilizing user data, and seamless cooperation of monthly magazines and web media.
• Enhancing product lineup and leveraging the strength of its original InfiniOne software package to boost orders through industry-specific sales strategies.
• Focusing on proposing SmartFactory solutions to the manufacturing industry and continuously stepping up efforts to propose solutions to new and existing customers.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Japan GAAP

Environmental Metrics

ESG Focus Areas

• Digital Transformation (DX)
• ESG
• SDGs
• Decarbonization
• Work Style Reform

Social Achievements

• Value Recruitment based on experience and skills developed during student years, applying a new compensation system with an increase in estimated annual salary.
• Disseminating recruitment information on the Group’s unique metaverse platform.

Governance Achievements

• Strengthening internal communication within the Group and further improving the accuracy of its quality management.

Climate Goals & Targets

Environmental Challenges

• Slowdown of IT investment by SMEs following the implementation of the invoice system in Japan.
• Slower than planned orders for cybersecurity-related services.
• Continued stagnant sales in YOCABITO Co., Ltd.'s outdoor business.
• Costs relating to the development of Tokyo Calendar Inc.'s new service Gourmet Calendar.

Mitigation Strategies

• YOCABITO Co., Ltd. cleared slow-moving inventories, utilized a digital platform for profit management, product renewal, and strategic sales price setting.
• Tokyo Calendar Inc. is strengthening digital promotion by analyzing and utilizing user data.
• CodeCamp Co., Ltd. implemented appropriate cost control.
• dit Co., Ltd. will strengthen its human resources through recruitment activities and internal training, and promote the provision of a log analysis service and crisis management service.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 9: Industry, Innovation and Infrastructure
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action

Supporting customers' digital transformation, promoting decent work through new recruitment strategies, and supporting decarbonization efforts.

Environmental Metrics

ESG Focus Areas

• ESG
• SDGs
• Decarbonization

Climate Goals & Targets

Environmental Challenges

• Increased hiring costs at Future Inspace, Inc.
• Impact of large-scale development projects peaking out at Future One, Inc.
• Sales shortfall in the media business at Tokyo Calendar Inc.

Mitigation Strategies

• YOCABITO Co., Ltd. improved gross margins by managing individual products and setting strategic selling prices through the use of digital platforms, and reduced logistics costs by improving the efficiency of logistics.
• Tokyo Calendar Inc.’s improved work efficiency and cost reductions.
• YDC Corporation increased profitability as a result of appeals on value to customers through the execution of DX projects

Supply Chain Management

Climate-Related Risks & Opportunities