GMO Pepabo, Inc.
Climate Impact & Sustainability Data (2020-12 to 2022-12, 2022-01 to 2022-06)
Reporting Period: 2020-12 to 2022-12
Environmental Metrics
Scope 1 Emissions:0
Scope 2 Emissions:120.2
Scope 3 Emissions:8138.0
ESG Focus Areas
- Environmental impact reduction
- Supporting all people and increasing humanity's output
- Strengthening governance for sound and transparent corporate management
Governance Achievements
- Established the Pepabo Improvement Committee with a director in charge to oversee ESG climate change risks and opportunities, TCFD scenario analysis, and financial impact assessments. The committee reports annually to the board of directors.
Climate Goals & Targets
Long-term Goals:
- Achieving long-term greenhouse gas (GHG) emission reduction targets (Scope 1, 2, and 3).
Environmental Challenges
- Increased operational costs due to carbon tax introduction.
- Decreased sales demand due to increased distribution costs.
- Decline in stakeholder reputation and trust.
- Operational shutdown of factories and data centers due to natural disasters.
- Indirect impacts such as increased costs and factory relocation due to rising sea levels.
Mitigation Strategies
- Promoting the use of renewable energy and selecting multiple distribution companies; shifting merchandise to digital content.
- Improving disclosure related to climate change and clarifying GHG emissions.
- Selecting multiple procurement candidates for data centers and partner factories.
- Risk mitigation through selecting multiple clients and partner factories.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters (e.g., causing operational shutdown of factories and data centers)
- Rising sea levels (indirect impacts such as increased costs and factory relocation)
Transition Risks
- Carbon tax introduction
- Decreased sales demand due to increased distribution costs
- Decline in stakeholder reputation and trust
Opportunities
- Technological innovation leading to changes in expressive activities
- Changes in consumer preferences and diversified expression activities
- Technological innovation through Web3 and AI, creating new markets and opportunities for efficiency improvements
Reporting Standards
Frameworks Used: TCFD
Reporting Period: 2022-01 to 2022-06
Environmental Metrics
Climate Goals & Targets
Medium-term Goals:
- Achieve operating profit of ¥2.5bn by FY12/25 (FY2025).
Environmental Challenges
- Sluggishness in the e-commerce market due to the snapback in stay-at-home demand.
- Information leak incident in Color Me Shop in January 2018.
Mitigation Strategies
- Strengthening information security measures.
- Measures to increase gross merchandise value in e-commerce related services.
- Cost reductions, including limiting personnel hiring.