Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable society
• Diversity and gender equality
• Regional revitalization
• Corporate governance
• Reducing electricity and paper usage

Environmental Achievements

• Reduced electricity and paper usage through power saving and digitalization of internal documents and workflows

Social Achievements

• Supported local revitalization project in Nagasaki Prefecture since 2018
• Held AI experience seminar for students
• Promoting diversity and gender equality; 17% female employees as of Nov 2019

Governance Achievements

• Constantly reviewing governance system to create a more transparent and fair corporate structure
• Board effectiveness evaluation

Climate Goals & Targets

Environmental Challenges

• Struggled to retain engineers
• Head office relocation and Nagasaki Development Center opening increased other expenses

Mitigation Strategies

• Efforts to train engineers, resulting in new financial projects and expanded business with existing customers
• Opened Nagasaki Development Center in October 2019, aiming for 100 employees in FY2024 to mitigate labor shortages through nearshore development

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity & Inclusion
• Corporate Governance
• Community Investment
• Environmental Responsibility

Environmental Achievements

• Reducing electricity and paper usage through energy-saving activities and digitalizing internal documents and workflow.
• Voluntary declaration for the active participation of women at the Nagasaki Women's Promotion Council.

Social Achievements

• Concluded sponsor support agreement with V・Varen Nagasaki of Succor J League, supporting the promotion of sports culture and revitalization of local community.
• Holding an AI experience seminar for students.
• Supporting Nagasaki province generating project “Human resource development for young people who support the future of region”
• Aiming for 30% female employees and managers ratio.

Governance Achievements

• Constantly implementing self-evaluation and reviewing of governance structure.
• Reviewing of effectiveness of Board of Directors.
• Reviewing of advisory committee.

Climate Goals & Targets

Environmental Challenges

• Difficulty securing human resources for business systems SI and embedded systems solutions, despite specialization in potential fields such as automobile and medical device.
• Aimed for total orders coordinated with business operation system development, but faced difficulty securing human resources.

Mitigation Strategies

• Won new financial projects and expanded transactions with existing customers by securing personnel and training engineers.
• Expanded the product lineup with ‘Information Security Solutions’ and ‘Operation Optimizing Solutions’ products.
• Opened Nagasaki Development Center in Oct 2019, targeting 100 staff by September 2024 to overcome the lack of personnel.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG, SDGs

Certifications: ISO27001 (ISMS), ISO9001 (QMS)

Environmental Metrics

ESG Focus Areas

• Sustainable Management
• SDGs
• ESG
• CSR
• Near Shore Development
• DX(Digital Transformation)
• Diversity and Gender Equality
• Regional Revitalization
• Corporate Governance

Environmental Achievements

• Reduction of electricity and paper usage through employee eco-consciousness initiatives.

Social Achievements

• Introduced work-at-home system for employees with childcare responsibilities, reducing commuting load and promoting women's success.
• 20% female employee ratio (compared to ±10% industry average).
• Almost all female employees return to work after childbirth.
• Sponsorship contract with V. VAREN Nagasaki, supporting sports culture and regional revitalization.
• AI experience seminar for students, promoting IT education.

Governance Achievements

• Constantly evaluating and reviewing NeedsWell’s governance system to establish a more transparent and fair corporate system.
• Voluntary declaration for the active participation of women at the “Nagasaki Women's Achievement Promotion Council”.

Climate Goals & Targets

Environmental Challenges

• Negative impact of COVID-19, leading to temporary waiting, cancellation, and postponement of projects.
• Decrease in orders for manufacturing projects.
• Shortage of personnel.

Mitigation Strategies

• Shift from Resident type to Remote type work.
• Shift sales activities from face-to-face to online.
• Enhancement of product lineup of new solutions.
• Expansion of business domain by developing systems for the logistics industry.
• Securing excellent human resources and training existing employees.
• Research and development of solutions utilizing AI technology.
• Search for target companies to proactively pursue M&A growth.
• Establishment of nearshore development in Nagasaki.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Work AI solutions assisting DX

Environmental Metrics

ESG Focus Areas

• DX (Digital Transformation)
• Nearshore Development (Nagasaki)
• Work-Life Balance
• Diversity & Inclusion
• Community Investment
• Partner Collaboration

Social Achievements

• Expanded telework opportunities.
• Launched AI programming education for students.
• Supported Nagasaki prefecture's “Society5.0 toward next-generation human resources creation project” (corporate version of the hometown tax system).
• Sponsored V-Varen Nagasaki (soccer team) to promote sports culture and regional revitalization.
• Aiming for 30% female management and 30% female employee ratio.

Governance Achievements

• Established partnerships with various companies (e.g., ITFor, Meiji Yasuda Life Insurance, Logistics Revolution).

Climate Goals & Targets

Environmental Challenges

• Addressing the "2025 cliff" (referring to the challenges of digital transformation).
• Attracting and retaining talent.

Mitigation Strategies

• Developing new solutions to assist with DX.
• Expanding nearshore development in Nagasaki to 100 employees by 2024.
• Implementing work-life balance initiatives (e.g., encouraging paid leave, premium Friday, overtime target of 20 hours or less).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

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: ISO27001 (ISMS), ISO9001 (QMS)

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

• Sustainability
• SDGs
• ESG
• CSR
• Corporate governance
• Work style reform
• Personnel development
• Nearshore Development
• DX

Environmental Achievements

• Not disclosed

Social Achievements

• Nagasaki Development Center aims to maintain 100 employees by 2024
• Incentive dates for paid leave, Premium Friday, overtime target of 20 hours
• Expand selection of employees eligible for remote work
• System for encouraging skill improvement and motivation
• Target female manager ratio: 30%, target female employee ratio: 30%
• AI education for students
• Donate to assistance programs for repaying student loans
• Support for V-Varen Nagasaki of the Soccer J League

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Labor shortages in the logistics industry
• 2025 Digital Cliff

Mitigation Strategies

• Launch of Logistics Business (WMS, AGV, WCS)
• Expansion of AI business (AI-OCR, RPA)
• Nearshore development in Nagasaki
• DX support through IT re-engineering

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promote partnerships with contractors and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO27001 (ISMS), ISO9001 (QMS)

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

• Sustainability
• SDGs
• Corporate governance
• CSR

Social Achievements

• Work style reform & personnel development: Incentive dates for paid leave, Premium Friday, overtime target of 20 hours; Expanded selection of employees eligible for remote work; System for encouraging skill improvement and motivation; Increased ratio of female employees and managers (target female manager ratio: 30%, target female employee ratio: 30%); AI education for students; Donation to assistance programs for repaying student loans; Contribution to projects by Nagasaki Prefecture for assisting young adults in the repayment of their student loans; Support for V-Varen Nagasaki of the Soccer J League.

Climate Goals & Targets

Environmental Challenges

• Labor shortages in the logistics industry
• 2025 Digital Cliff

Mitigation Strategies

• Nearshore development in Nagasaki (aiming for 100 employees by FY2024/9)
• Development of new solutions to assist DX (using AI, providing systems, analyzing data, saving labor through RPA integration)
• Collaboration with partner companies (ITFOR Inc., Meiji Yasuda Life Insurance Company, Meiji Yasuda System Technology Limited, Logi-Revo Co., Ltd., Office FA.com Co., Ltd., Souken-sys Inc., Canon IT Solutions Inc., Zeroichi Production)

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs
• Corporate governance
• Nearshore Development
• DX

Social Achievements

• Work style reform & personnel development: Promoting a healthy work-life balance, expanding remote work eligibility, and encouraging skill improvement.
• Increase ratio of female employees and managers: Targeting 30% for both female managers and employees.
• AI education for students: Providing AI programming experiences and internships.

Governance Achievements

• Needs Well has chosen to be included in the Prime Market for the Tokyo Stock Exchange market restructuring in April 2022. Needs Well aims to satisfy all listing criteria by the end of September 2023 by improving corporate value based on our “Plan for Compliance with Listing Criteria.”

Climate Goals & Targets

Environmental Challenges

• Labor shortages in the logistics industry.
• 2025 Digital Cliff

Mitigation Strategies

• Expanding nearshore development to acquire highly competent personnel.
• Assisting client companies in realizing and promoting DX to overcome the "2025 Digital Cliff" by building platforms using AI technology, providing systems, analyzing data, saving labor through RPA integration, etc.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs
• Corporate governance
• Nearshore Development
• DX

Environmental Achievements

• Not disclosed

Social Achievements

• Nagasaki Development Center aims to maintain 100 employees by 2024
• Promote a healthy work-life balance by incentive dates for paid leave, Premium Friday (leaving work early on the last Friday of the month), reducing overtime work, etc.
• Expand selection of employees eligible for remote work
• AI education for students
• Donate to assistance programs for repaying student loans
• Support for V-Varen Nagasaki of the Soccer J League

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Delays in M&A contracts
• Decreased orders for the manufacturing industry affected by the spread of COVID-19

Mitigation Strategies

• Increased sales from capital and business alliances
• Continue to explore M&A projects that have the potential for synergies
• Consider bank loans instead of fund-raising through the issuance of new shares

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promote partnerships with contractors and suppliers and aim to establish a structure for continuing to develop together over a long period of time

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO27001 (ISMS), ISO9001 (QMS)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Work AI (industry-specific AI solutions)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• SDGs
• ESG
• CSR
• Work-life balance
• Diversity & Inclusion
• Nearshore Development
• Community Investment

Environmental Achievements

• Not disclosed

Social Achievements

• Promoted a healthy work-life balance by offering incentive dates for paid leave, Premium Friday, reducing overtime work, expanding remote work eligibility, and implementing a system for encouraging skill improvement and motivation.
• Increased ratio of female employees and managers (targets: 30% for both)
• AI education for students (arranging AI programming experiences, internships, and programming classes)
• Donated to assistance programs for repaying student loans
• Supported V-Varen Nagasaki of the Soccer J League

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Issues in the scale of concluding M&A contracts to meet Medium-Term Management Plan targets.

Mitigation Strategies

• Increase sales from capital and business alliances, continue exploring M&A projects with synergy potential, and consider bank loans if needed instead of issuing new shares.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promote partnerships with contractors and suppliers and aim to establish a structure for continuing to develop together over a long period of time.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO27001 (ISMS), ISO9001 (QMS), Privacy mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SmartWMS

Awards & Recognition

• First registered business operator of the Nagasaki Prefecture SDGs Registration System

Environmental Metrics

ESG Focus Areas

• Human Capital Development
• Environmental Sustainability
• Community Engagement
• Governance

Environmental Achievements

• Reduced electricity and paper usage (quantified data not provided)
• Reduced plastic waste through the use of semi-transparent paper holders (quantified data not provided)

Social Achievements

• Launched AI programming workshops and internships for students
• Implemented a telework system
• Encouraged paid leave and reduced overtime (2022 average overtime: 18.7 hours)
• Sponsored V-Varen Nagasaki soccer team to support youth development and community revitalization
• Supported Nagasaki prefecture's “Society 5.0 toward next-generation human resource creation project”

Governance Achievements

• Achieved ISO27001 (ISMS) and ISO9001 (QMS) certifications
• Acquired several subsidiary companies (e.g., 零壱製作株式会社, 株式会社ビー・オー・スタジオ, 株式会社コムソフト)
• Established partnerships with various companies (e.g., 株式会社アイティフォー, 明治安田生命保険相互会社, 株式会社物流革命)

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: ISO27001 (ISMS), ISO9001 (QMS), Privacy Mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

The company's initiatives contribute to these goals through various programs such as promoting regional development, supporting youth development, and fostering partnerships.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• SDGs
• ESG
• CSR
• Corporate governance
• Work style reform
• Personnel development
• Nearshore Development
• Diversity & Inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Nagasaki Development Center aims to maintain 100 employees by 2024, contributing to regional development and job creation.
• Initiatives for work-life balance (paid leave incentives, Premium Friday, reduced overtime).
• Expansion of remote work eligibility.
• AI education for students (internships, programming classes).
• Support for V-Varen Nagasaki (sports sponsorship).

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Meeting Medium-Term Management Plan targets for net sales (10.0 billion JPY) and ordinary profit (1.0 billion JPY), particularly regarding M&A contract closures.

Mitigation Strategies

• Increased sales from capital and business alliances.
• Exploration of M&A projects with synergy potential.
• Consideration of bank loans for additional funding if needed.

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: ISO27001 (ISMS), ISO9001 (QMS), Privacy mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SmartWMS

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable management
• Nearshore development promotion
• DX support
• Partnership promotion
• Work style reform
• Increase in the ratio of female employees and managers
• AI education for students
• Nagasaki Prefecture's hometown tax
• Support for V-Varen Nagasaki

Environmental Achievements

• Not disclosed

Social Achievements

• Established Nagasaki development center aiming for 100 employees by 2024, contributing to regional revitalization.
• Developing a frailty prevention solution to contribute to extending the healthy lifespan of the elderly and reducing medical expenses for municipalities.
• Introduced "double job system", "in-house FA system", and "workplace return support system" to improve job placement and motivation.
• Promoting work-life balance through measures such as encouraging paid leave, premium Friday, and reducing overtime.
• Holding AI programming experiences and internships for students.
• Supporting "Society 5.0 Project for Creating Next-Generation Human Resources" (corporate version of hometown tax system) in Nagasaki Prefecture.

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

• Frailty prevention solution

Awards & Recognition

• First registered business in Nagasaki Prefecture's SDGs registration system