Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Use of 100% recycled materials in packaging for the GROONY series.

Social Achievements

• Donation of photographed goods to a children’s nursing home in Fukuoka Prefecture.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Raised base pay by 10,000 yen for 233 regular and 12 contract employees in April 2023.
• Donated furniture and items used for photoshoots to a mother-child life support facility in Fukuoka Prefecture in June 2023.
• Changed donation destination for shareholder benefits to OISCA’s “Children’s Forest Program” in June 2023.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Rising cost of sales ratio in LOWYA business.
• Maintaining and expanding gross merchandise value in DOKODEMO business.

Mitigation Strategies

• Consolidating distribution bases and improving delivery efficiency in LOWYA business (resulted in 76 million yen YoY reduction in SG&A expenses).

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

Environmental Metrics

ESG Focus Areas

• Reduction of waste and expansion of resource recycling
• Creation of an environment rich in diversity and pursuit of employees’ job satisfaction
• Revitalization of regions and communities

Social Achievements

• Ratio of female managers 20%
• Ratio of return to work after childcare leave 100%
• Ratio of paid leave taken 87.7%
• Ratio of childcare leave taken by male employees 14%

Climate Goals & Targets

Environmental Challenges

• Foreign exchange Risk of significant exchange rate fluctuations affecting business performance
• Response to search engines Risk of not being able to acquire sufficient customers as a result of ineffective search engine optimization (SEO) due to factors including changes in search algorithms
• Impact of online malls Risk arising from mall closures, cancellation of store opening agreements, mall system troubles, etc.
• New business model Risk of not achieving expected sales and profit growth, synergies with existing business areas, etc.
• Competition Risk of a decline in the Company’s competitive advantage or occurrence of price competition
• Increase in delivery expenses Risk of shipping companies withdrawing from large-scale deliveries or raising prices
• Intellectual property rights Risk of the Company’s rights being infringed or unintentional infringement of intellectual property rights of third parties
• Information security and system troubles Risk of system troubles due to unexpected accidents, unauthorized access, etc. resulting in difficulties in providing services stably

Mitigation Strategies

• Review and upgrade the hedging policy from time to time
• Implement measures to reduce the impact of search algorithm changes, etc.
• Focus efforts on the growth of the LOWYA flagship store as well as establishment and expansion of new sales channels
• Continuously monitor sales performance, etc.
• Examine medium-term numerical plans and withdrawal criteria
• Strengthen competitive advantage
• Provide high-value-added services
• Build an earnings structure that is not easily affected by rising delivery expenses
• Obtain various intellectual property rights
• Build a system to ensure that there is no infringement of the intellectual property rights of third parties
• Back up data and disperse systems
• Strengthen security measures

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Donation of photographed goods (furniture) to welfare facilities.
• Adoption of environmentally friendly materials (chinaberry, recycled materials).

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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