Avant Group Corporation
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:7,962.214 t-CO2e/year
Scope 1 Emissions:0 t-CO2e/year
Scope 2 Emissions:516.138 t-CO2e/year
Scope 3 Emissions:7,446.076 t-CO2e/year
Renewable Energy Share:100%
Total Energy Consumption:1,146 thousand kWh/year
ESG Focus Areas
- Corporate Governance
- Human Rights
- Climate Change
- Environmental Conservation
- Employee Well-being
Environmental Achievements
- Purchased Green Power Certification carbon offset for all electricity used since July 2021.
- Aiming to reduce greenhouse gas emissions (Scope 1-3) by 50% compared to FY2017.
Social Achievements
- Improved GPTW scores across Group companies.
- Introduced an open job posting system, resulting in eight transfers in the first year.
- Revised remuneration table for service personnel.
- Expanded personnel system and welfare benefits to include same-sex partners and common-law partners.
- Conducting quarterly questionnaires to address individual employee needs.
Governance Achievements
- Transitioned to a company with an Audit Committee.
- Established a Compensation Advisory Committee.
- Strengthened the link between director compensation and the medium-term management plan.
- Improved the effectiveness of the CRM Committee.
Climate Goals & Targets
Long-term Goals:
- Become a world-class software company.
Medium-term Goals:
- Increase the Recurring Sales Ratio to 70%.
- Achieve operating income of ¥3.1 to ¥3.8 billion in FY2023.
- Raise GPP (Sales Growth Rate + Operating Profit Margin) to 40 points or more.
- Maintain ROE at around 20% or more.
- Gradually raise DOE to 8% from the current 5% level.
- Reduce total greenhouse gas emissions (Scope 1-3) by 50% compared to FY2017 by FY2030.
Short-term Goals:
- Achieve net sales of ¥18 to ¥22 billion in FY2023.
Environmental Challenges
- Difficulty in linking strategic KPIs to ground-level activities.
- Insufficient communication with the team executing the company's management strategy.
- Low recurring sales ratio (34.6% in FY2022).
- Difficulty in achieving the target value of GPP (Sales Growth Rate + Operating Profit Margin).
- Risk of not producing expected investment results due to market changes.
- Risk of security incidents such as information leakage.
- Risk of product failure.
- Risk of service quality deviation from initial estimates.
- Risk of not progressing as planned in securing and fostering excellent human resources.
- Risk of business investment not producing expected results.
- Risk of non-compliance leading to loss of societal trust.
- Risk of dependence on management.
- Risk associated with the occurrence of a pandemic.
Mitigation Strategies
- Created a Value Tree to visualize measurable value creation mechanisms.
- Reorganized the Group to improve communication and execution.
- Strengthened the Group management team.
- Developed a DX platform to promote information sharing.
- Implemented measures to reduce quality risks during product development.
- Took out insurance in case of emergency.
- Strengthened the recruitment system.
- Enhanced the training menu for new employees.
- Established compliance and risk management rules.
- Ensured that all officers and employees are fully aware of compliance rules through education.
- Delegated management to next-generation leaders.
- Prepared measures to limit the deterioration of business performance by controlling certain expenses.
- Formulated a Business Continuity Plan (BCP).
Supply Chain Management
Responsible Procurement
- Purchasing Green Power Certificates
Climate-Related Risks & Opportunities
Physical Risks
- Major natural disasters (earthquakes, typhoons, floods)
- Impact on business continuity
Transition Risks
- Stricter regulations on greenhouse gas emissions
- Rise in electricity and gas rates
Opportunities
- Providing solutions to help customers respond to climate change
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO/IEC 27001:2013 (ISMS)
Awards & Recognition
- Great Place to Work® certification for Zeal and Diva