Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Impact
• Sustainability

Social Achievements

• Launched a social impact bond (SIB) initiative in Toyota City focusing on elderly care prevention, aiming to reduce care costs by approximately 10 billion yen and engaging approximately 5,000 participants annually.

Climate Goals & Targets

Environmental Challenges

• Difficulty in implementing SIBs due to the complexity of stakeholder involvement, KPI design, and the lack of organizations to support the entire SIB process.
• Limited application of SIBs to easily measurable areas due to the difficulty in measuring outcomes for various social issues.

Mitigation Strategies

• Dream Incubator acts as a fund manager and central coordinator, facilitating stakeholder matching and overall project management for smooth SIB operation.
• Collaborating with multiple municipalities to develop SIB projects in areas such as elderly care prevention, infrastructure maintenance, and recycling.
• Establishing the Next Rise Social Impact Fund to support SIB initiatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social Impact
• Sustainable Development Goals (SDGs)
• Governance
• Climate Change
• Diversity & Inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Launched several Social Impact Bonds (SIBs) projects focusing on healthcare, recycling, employment, and infrastructure.
• Partnered with JICA to support startups in Asia and Latin America addressing social issues.
• Expanded into fan marketing through the acquisition of Peaks Co., Ltd.

Governance Achievements

• Strengthened governance by increasing the number of independent outside directors on the board.
• Improved board diversity.

Climate Goals & Targets

Environmental Challenges

• Significant losses due to the impact of the COVID-19 pandemic and restructuring.
• Decreased new business enthusiasm among companies, underperformance of investments, and delays in IPOs.
• High volatility in risk-money investments.
• Insufficient investment in business production.
• Lack of a system to leverage strengths.
• Inadequate governance.

Mitigation Strategies

• Structural reforms focusing on risk management, increased investment in business production, leveraging strengths, and strengthening governance.
• Suppression of self-funding investment and expansion of fund size.
• Strengthening business production capabilities through functional expansion, personnel increase, and business partnerships.
• Strengthening the governance structure by increasing the proportion of independent outside directors on the board.
• Utilizing financial functions to scale business production.
• Capital and business partnership with Dentsu Group.

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

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 13: Climate Action
• Goal 3: Good Health and Well-being
• Goal 11: Sustainable Cities and Communities

The company's initiatives, particularly in social impact bonds and investments in sustainable development projects, contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Transformation (GX)

Environmental Achievements

• Not disclosed

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

Environmental Metrics

ESG Focus Areas

• Sustainable Growth
• Incubation (Venture Capital and Business Investment)
• Shareholder Returns

Social Achievements

• Launched Social Impact Bond (SIB) promoting collaboration with financial and government institutions.

Governance Achievements

• Established a Board with a majority of outside directors and shifted to a Board that monitors Business Production.

Climate Goals & Targets

Environmental Challenges

• Skewed resource allocation due to heavy weighting of risk assets and stagnation of investment into Business Production.
• Lack of mechanisms to leverage and expand the differentiating feature (Business Production).
• Mismatch between risk and time horizon due to investment volatility in Incubation businesses.
• Governance system that needed strengthening to support and review business efforts.

Mitigation Strategies

• Strengthened Business Production by doubling staffing and applying financial functions.
• Limited principal investment and revised expansion policy in Incubation.
• Strengthened governance structure with a majority of outside directors and a monitoring model for Business Production.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable Growth
• Incubation Harvest
• Shareholder Returns
• Corporate Governance

Social Achievements

• Launched Social Impact Bond (SIB) to reduce long-term care and infrastructure maintenance costs for local governments.

Governance Achievements

• Established a Board of Directors with a majority of outside directors.
• Implemented a remuneration system linked to both mission fulfillment and corporate value enhancement.
• Shifted to a monitoring model where the Board delegates business execution to the inside directors’ meeting.

Climate Goals & Targets

Environmental Challenges

• Skewed resource allocation due to heavy weighting of risk assets and stagnation of investment into Business Production.
• Lack of mechanisms to leverage and expand the differentiating feature of Business Production.
• Mismatch between risk and time horizon due to investment volatility in Incubation businesses.
• Governance system that needed strengthening to support and review business efforts.

Mitigation Strategies

• Initiated structural reforms focusing on resource allocation to Business Production, re-examination of Incubation, and strengthening governance.
• Plan to double the staffing for Business Production.
• Limiting principal investment and revising expansion policy for Incubation.
• Strengthening the governance structure by establishing a Board with a majority of outside directors.

Supply Chain Management

Climate-Related Risks & Opportunities