Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Governance
• Human Resources
• Environmental Initiatives
• Compliance

Environmental Achievements

• Reduced employee per capita electricity consumption year-on-year.
• Reduced waste inventory ratio year-on-year.

Social Achievements

• Improved employee satisfaction and engagement.
• Increased percentage of women employees year-on-year.
• Implemented various work-style initiatives (telework, childcare support, flextime).

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee.
• Implemented a compliance program and established a Compliance and Governance Committee.

Climate Goals & Targets

Environmental Challenges

• Decreasing domestic advertising and promotional market.
• Supply chain disruptions.
• Compliance incidents.
• Securing and retaining competitive human resources.

Mitigation Strategies

• Developing new products and services to meet changing consumer needs.
• Expanding into new markets domestically and internationally.
• Strengthening the compliance system and employee training.
• Improving work-life balance and employee support systems.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

Certifications: ISO 9001, ISO 14001, Privacy Mark

Awards & Recognition

• Minato Environmental Award, 'Minato Ward Energy Saving Promotion Model Office'

Environmental Metrics

ESG Focus Areas

• Human Capital
• Environmental Sustainability
• Corporate Governance

Environmental Achievements

• Reduced electricity consumption per employee (though specific figures are not provided, a significant reduction compared to the previous year is mentioned)
• Participation in the ASKUL Resource-Recycling Platform
• Development of products using eco-conscious materials (FSC certified paper and MAPKA plastic)

Social Achievements

• Implementation of Remote working system, Childcare support systems, Flextime system, and Life event support system
• Promotion of diversity and inclusion (D&I) through Partnership Certificates and promoting greater employment of those with disabilities
• Efforts to improve employee engagement (with plans to use a shared engagement analysis tool in FY2023)
• Three-year retention rate for new graduates at 85%

Governance Achievements

• Transition to a holding company structure
• Establishment of a Compliance and Governance Committee
• Introduction of a new restricted stock compensation plan linking executive remuneration to long-term corporate value improvement

Climate Goals & Targets

Environmental Challenges

• Changes in consumer behavior due to COVID-19
• Low birthrate and aging society in Japan
• Transition to a digital society
• Growing awareness of sustainability
• Diversification of work styles
• Government-led corporate governance reforms
• Decreased demand for big content
• Soaring resource prices impacting client orders

Mitigation Strategies

• Developing products and services responsive to changing consumer needs and sales promotion needs
• Expanding overseas business
• Developing products and services utilizing digital technology, digitalizing business processes, enhancing cybersecurity, and securing digital talent
• Developing sustainable products and services, promoting CSR procurement
• Acquiring human resources matching the Group’s management style, creating a pleasant work environment
• Ensuring sound and transparent management
• Reducing inventory disposal using IP content analysis and sales forecasting system
• Using promotions and IP content to address the SDGs
• Developing services using environmentally friendly and recycled materials
• Diversifying hiring categories and approaches, creating a system accommodating diverse work styles
• Improving employee engagement index
• Creating infrastructure to develop human resources from a long-term perspective
• Introducing a junior board system
• Strengthening management, business, and risk control systems globally

Supply Chain Management

Responsible Procurement

• CSR procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework from the IFRS Foundation

Certifications: ISO 9001, ISO 14001, Privacy Mark

Sustainable Products & Innovation

• Mochidoru plush toys
• Original digital products (NFTs)

Awards & Recognition

• Three gold and two silver awards in the JPM POP Creative Awards
• SUSTAINA ESG AWARDS 2022 (CDG Co., Ltd.)

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Sustainable Business Development
• Corporate Governance

Environmental Achievements

• Reduced annual electricity consumption per employee
• Percentage of inventory disposed of vs product sales (7.3%)
• Use of environmentally friendly materials and recycled materials in products and gifts (e.g., recycled porcelain clay, recycled PP file folders, bioplastic straws)

Social Achievements

• Launched Junior Board System to develop future management personnel
• Increased percentage of women in management positions (17.8%)
• Average annual hours of training per employee (43.8 hours)
• High childcare leave take-up rate
• Promoting diversity, equity, and inclusion (DE&I)

Governance Achievements

• Full compliance with revised Corporate Governance Code
• Established Compliance and Governance Committee
• Established Nominating and Compensation Advisory Committee
• Executive compensation linked to ESG performance (EBITDA and operating income growth)

Climate Goals & Targets

Environmental Challenges

• Shrinking domestic market due to demographic changes
• Increased competition in the promotional services market
• Securing and developing human resources
• Aligning the mental vectors of all employees
• Early training targeting management personnel

Mitigation Strategies

• Transitioned to a holding company structure
• Focus on recurring revenue model BPO services
• Expansion of Ex-Tainment services (particularly theme cafes)
• Investments in human capital (training, development programs)
• Implementing philosophy-based management and CL Philosophy
• Junior Board System
• Leader Management Education
• Philosophy Study Meetings
• Improving and integrating digital infrastructure

Supply Chain Management

Responsible Procurement

• Use of FSC-certified paper and MAPKA plastic
• Use of recycled porcelain clay

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: ISO 9001, ISO 14001, PrivacyMark

Sustainable Products & Innovation

• Coffee cups, teacups, and saucers made from recycled porcelain clay
• Recycled PP file folders
• Bioplastic straws