Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance

Social Achievements

• Promoting diversity and inclusion within the workforce, including increasing the number of female employees and foreign nationals.

Governance Achievements

• Established Corporate Governance Guidelines in accordance with the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Lack of a clearly defined long-term vision, capital policy, and mid-term management plan.
• Absence of specific guidelines for board member selection and compensation.
• Limited engagement with stakeholders regarding the company's ESG performance.

Mitigation Strategies

• Planning to establish a mid-term management plan with KPIs and capital policy for the fiscal year ending March 2019.
• Intention to create an executive regulations document to clarify criteria for director selection and compensation.
• Commitment to improve stakeholder engagement and transparency through enhanced communication and information disclosure.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Diversity and Inclusion

Social Achievements

• Promoting diversity and inclusion within the company

Governance Achievements

• Established corporate governance guidelines
• Implemented internal reporting system
• Strengthened risk management system

Climate Goals & Targets

Environmental Challenges

• Decreasing profitability of existing directly managed stores
• Need to improve franchisee satisfaction
• Need to create new franchise packages
• Need to review risk management system and strengthen corporate governance

Mitigation Strategies

• Implementing a three-year mid-term management plan to address these challenges
• Strengthening marketing strategies
• Improving QSC (Quality, Service, Cleanliness)
• Strengthening human resource education systems
• Solving personnel shortages
• Building a stronger franchisee support system
• Creating new franchise packages
• Building an enterprise-wide risk management system (ERM)
• Strengthening management accounting

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Compliance
• Social Responsibility (CSR)
• Internal Controls

Social Achievements

• Promoting diversity and inclusion in the workplace.
• Establishing a whistleblower system to protect employees reporting illegal or inappropriate behavior.

Governance Achievements

• Establishment of Corporate Governance Guidelines.
• Implementation of internal control systems.
• Establishment of an ethics committee.
• Implementation of a risk management committee.

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance between capital efficiency and financial soundness.
• Ensuring the effectiveness of the board of directors.
• Addressing stakeholder concerns regarding corporate governance practices.

Mitigation Strategies

• Regular review of the effectiveness of the board of directors.
• Open communication and engagement with stakeholders.
• Continuous improvement of internal control systems.
• Planned development of a code of conduct to clarify selection criteria for directors.

Supply Chain Management

Responsible Procurement

• Fair and transparent transactions with suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Revised Corporate Governance Guidelines to comply with the Corporate Governance Code and implement previously unimplemented items.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Compliance
• Diversity and Inclusion
• Social Responsibility

Social Achievements

• Promoting diversity and inclusion within the company

Governance Achievements

• Established corporate governance guidelines
• Implemented internal control systems
• Established a corporate ethics committee
• Established an internal reporting system

Climate Goals & Targets

Environmental Challenges

• Balancing efficient management with transparency and soundness
• Ensuring the effectiveness of the board of directors
• Implementing electronic voting and English language disclosures

Mitigation Strategies

• Appointing independent outside directors
• Strengthening the supervisory function of the board of directors
• Reviewing the need for electronic voting and English language disclosures based on shareholder composition

Supply Chain Management

Responsible Procurement

• Fair and transparent transactions

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Sustainability
• Human Rights
• Employee Well-being
• Diversity and Inclusion

Environmental Achievements

• Reduced food waste
• Eliminated plastic straws
• Eliminated chopsticks sourced from deforestation

Social Achievements

• Promoting a diverse and inclusive workplace with a target of over 20% female employees.
• Established guidelines for employing foreign workers.
• Implemented various employee training programs

Governance Achievements

• Established internal reporting system
• Established corporate ethics committee
• Strengthened internal control system

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance between capital efficiency and financial soundness
• Addressing risks related to sustainability
• Ensuring effective corporate governance in a rapidly changing business environment

Mitigation Strategies

• Implementing a comprehensive internal control system
• Actively engaging with stakeholders on sustainability issues
• Developing and implementing a robust corporate governance framework

Supply Chain Management

Responsible Procurement

• Fair and equitable transactions

Climate-Related Risks & Opportunities