Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Social

Environmental Achievements

• Promoted energy saving initiatives such as paperless meetings, use of recycled paper, and energy-saving measures at offices.

Social Achievements

• Women's employee ratio is 50%, and the ratio of female managers is 23% (as of April 1, 2019). Two female executives were appointed in OPT Co., Ltd. in 2019. Managerial (section chief) women's ratio exceeds 40%.

Governance Achievements

• Established a Nomination and Compensation Committee to enhance the independence, objectivity, and accountability of the Board of Directors.
• Implemented a performance-based compensation system for directors (excluding audit committee members).
• Introduced a restricted stock compensation system for directors (excluding outside directors and audit committee members).

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

• Digital Industrial Transformation (IX)
• Sustainable Development Goals (SDGs)
• Digital talent development
• Diverse workstyles
• Corporate governance
• Community contribution
• Climate change measures
• Circular economy

Environmental Achievements

• Initiatives towards carbon neutrality and circular economy through JOMYAKU (waste collection and transportation service)

Social Achievements

• Introduced new workstyles including telework and Nasu workation, promoting diverse work styles and employee wellbeing.
• Pharmacy X (Pharmacy Transformation) reached 1,563 contracted stores and 271,000 LINE official account members.

Governance Achievements

• Strengthened corporate governance with new CXO system and board members.
• Improved transparency and information disclosure.

Climate Goals & Targets

Environmental Challenges

• Labor environment and human resource challenges in waste collection and transportation industry.
• Need for efficiency improvement in various industries.
• Maintaining growth while ensuring profitability.

Mitigation Strategies

• Developed JOMYAKU to improve efficiency in waste collection and transportation.
• Investing in IX (Industrial Transformation) to create new markets and business opportunities.
• Implementing cost reduction measures and improving operational efficiency in advertising business.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through digital industrial transformation, sustainable business practices, and community engagement.

Sustainable Products & Innovation

• JOMYAKU (waste collection and transportation service)

Environmental Metrics

ESG Focus Areas

• Digital Transformation for Industrial Reform and Social Issue Resolution
• Digital Talent Development and Diverse Work Environment
• Establishment of a Strong Management Foundation
• Contributing to the Global Environment through Digital Technology

Social Achievements

• Established a D&I (Diversity & Inclusion) Promotion Office in 2021 to foster a diverse and inclusive workplace.
• Aiming for a 30% female management ratio, implementing a unique program to cultivate next-generation female leaders.
• Improving work-life balance initiatives, including support systems from before maternity leave to after returning to work.

Governance Achievements

• Implemented a performance-based compensation system for executive directors.
• Established a Nomination and Compensation Committee to enhance the independence, objectivity, and accountability of the board of directors.
• Conducted an effectiveness evaluation of the board of directors.

Climate Goals & Targets

Environmental Challenges

• Shrinking domestic market due to declining population.
• Rapid advancements in science and technology requiring adaptation.
• Environmental challenges such as global warming and frequent extreme weather events.

Mitigation Strategies

• Focusing on digital transformation to adapt to changing market conditions.
• Strengthening corporate governance and comprehensive risk management.
• Implementing initiatives to contribute to environmental sustainability through digital technology.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Sustainable Development
• Employee Wellbeing
• Circular Economy
• Diversity and Inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Introduced new work styles including telework and Nasu workation, promoting diverse ways of working.
• Improved employee wellbeing initiatives.

Governance Achievements

• Transitioned from a group executive officer system to a CXO system.

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

The company aims to contribute to the SDGs through co-creation with various stakeholders and digital industrial transformation.

Sustainable Products & Innovation

• Pharmacy X, Stores X, AD Credit X, Circular Transformation (CX)

Awards & Recognition

• LINE Biz Partner Program Diamond Certification for RePharmacy

Environmental Metrics

ESG Focus Areas

• Digital Transformation for Industrial Revolution
• Sustainable workforce
• Strong corporate governance
• Contribution to decarbonization and circular economy

Social Achievements

• Focus on diverse workforce and flexible work environment

Governance Achievements

• Establishment of effective corporate governance

Climate Goals & Targets

Environmental Challenges

• Decreased labor productivity impacting industrial/corporate profitability
• Industrial structural changes affecting Japanese corporate competitiveness
• Obsolescence of existing business models due to new technologies from digitalization
• Loss of new business opportunities
• Human resource outflow due to new normal/diverse work styles
• Decreased motivation/productivity of human resources impacting service quality
• Increased costs related to human resources/health

Mitigation Strategies

• Digital transformation to improve business models and organizational structures
• Creating an environment where people can work fulfillingly and authentically
• Improving productivity through digitalization leading to increased disposable time
• Utilizing digital technology to reduce costs related to human resources/health

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

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

Digital Holdings' initiatives contribute to these goals by promoting digital transformation, fostering a sustainable workforce, and contributing to decarbonization and a circular economy.

Environmental Metrics

ESG Focus Areas

• Digital Transformation for Industrial and Corporate Reform
• Sustainable Workforce Development and Diverse Work Environments
• Strong Corporate Governance
• Contribution to a Decarbonized Society
• Contribution to a Circular Economy

Social Achievements

• Focus on diverse workstyles and employee wellbeing; details not quantified.

Governance Achievements

• Improved corporate governance structure and transparency; details not specified.

Climate Goals & Targets

Environmental Challenges

• Decreased business profitability during a period of transformation.
• Lack of investor confidence due to slow progress in transformation.
• Low ARPU (Average Revenue Per User) in some areas.
• Supply chain disruptions (implied, not explicitly stated).

Mitigation Strategies

• Portfolio restructuring and cost reduction.
• Focus on high-growth, high-profit DX development.
• Accelerated growth of AD Credit X.
• Withdrawal from low-synergy IX businesses.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these SDGs through digital transformation, sustainable workforce development, and focus on circular economy.

Sustainable Products & Innovation

• JOMYAKU (waste management software)
• Stores X (cloud-based software for managing store information)

Environmental Metrics

ESG Focus Areas

• Digital Transformation for Industrial Revolution
• Sustainable Society Development
• Corporate Value Enhancement

Social Achievements

• Focus on diverse workstyles and digital talent cultivation

Governance Achievements

• Establishment of effective corporate governance

Climate Goals & Targets

Environmental Challenges

• Decreased labor productivity impacting industrial/corporate profitability
• Industrial structural changes affecting Japanese corporate competitiveness
• Obsolescence of existing business models due to new technologies from digitalization
• Loss of new business opportunities
• Human resource outflow due to new normal/diverse workstyles
• Decreased human resources and efficiency in industries/companies
• Decline in service quality for consumers and users
• Increased costs related to human resources/health
• Climate change related business disruptions

Mitigation Strategies

• Group asset consolidation for enhanced customer value
• Focus on AD Credit X for accelerated growth
• Expansion of service areas and customer base
• Update of the examination model
• Business restructuring
• Development of new services (e.g., Vankable)
• Investment in sustainable transformation startups

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Digital Transformation for Industrial Revolution
• Sustainable Society Development
• Corporate Value Enhancement

Social Achievements

• Improved employee wellbeing and productivity through digital tools and flexible work arrangements (implied)

Governance Achievements

• Established a robust corporate governance structure (implied)

Climate Goals & Targets

Environmental Challenges

• Decreased labor productivity impacting industrial/corporate profitability
• Industrial structural changes affecting Japanese corporate competitiveness
• Obsolescence of existing business models due to new technologies from digitalization
• Potential loss of new business opportunities
• Human resource outflow due to new normal/diverse work styles
• Decreased human resources and efficiency in industries/companies
• Decline in service quality to consumers/users due to decreased motivation/productivity
• Increased costs related to human resources/health
• Climate change related business disruptions

Mitigation Strategies

• Group asset consolidation for enhanced customer value
• Focus on high-synergy businesses (AD Credit X)
• Withdrawal from low-synergy businesses
• Expansion of service areas and customer base
• Update of data-driven screening models
• Investment in sustainable innovation (implied)

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• LINE Yahoo Partner Program CX Partner (2 years)
• Google Local Inventory Ads Partner Program