Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain
• Diversity & Inclusion
• Environmental Conservation
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions (specific figures not provided, but shows year-over-year decrease in energy consumption)
• Achieved over 50% reduction in power consumption in ASICs compared to previous methods.
• Contributed to the use of renewable energy with high-speed Power Line Communication (PLC) LSI in solar panels.

Social Achievements

• 100% return rate of employees after childcare leave (as of June 2022)
• Promotion of diverse work styles including telecommuting and flexible working hours.
• Support for second careers for senior employees.
• Donations to universities to foster engineers.

Governance Achievements

• Established a robust internal control system with an unqualified opinion from accounting auditors.
• Board of Directors consists of nine directors, including three outside directors.
• Board of Auditors includes three outside auditors.

Climate Goals & Targets

Environmental Challenges

• Dependence on specific customers (Nintendo accounting for 87.8% of sales in FY2022)
• Dependence on a specific contract manufacturer (Macronix accounting for 67.8% of outsourced processes in FY2022)
• Risks associated with LSI product market fluctuations and technological innovation.
• Securing and retaining skilled personnel.
• Risks related to climate change (increased costs due to environmental regulations, changes in consumer behavior, etc.)
• Exchange rate fluctuations.
• Intellectual property rights protection.
• Risks associated with accidents or natural disasters.
• Impact of COVID-19.

Mitigation Strategies

• Diversification of business portfolio into industrial equipment, telecommunications, AI, energy control, and robotics.
• Strengthening relationships with key customers and contract manufacturers to ensure stable supply.
• Flexible provision of optimal production technology and optimization of purchase costs.
• Continuous investment in R&D to maintain a competitive edge.
• Streamlining personnel treatment system and implementing a comprehensive personnel policy.
• Scenario analysis and risk management strategies to address climate change risks and opportunities.
• Use of forward currency contracts to mitigate exchange rate risks.
• Active filing and registration of patents and trademarks.
• Development and implementation of a Business Continuation Plan (BCP) and Crisis Management Manual.
• Implementation of various measures to prevent COVID-19 infection.

Supply Chain Management

Responsible Procurement

• Green procurement guidelines
• Policy on Conflict Minerals

Climate-Related Risks & Opportunities

Physical Risks

• Increased energy costs due to higher temperatures
• Decreased manufacturing capacity at outsourced sites due to extreme weather

Transition Risks

• Increased labor costs due to tighter environmental laws
• Increased development costs for low-carbon products
• Decreased demand for products due to changes in consumer behavior

Opportunities

• Increased demand for low-power consumption LSI products
• New business opportunities in energy-saving technologies

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

• Low-power consumption ASICs
• High-speed PLC LSI for renewable energy applications