Climate Change Data

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