Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Delays in the completion of biomass gasification power generation projects due to technical issues.
• High system costs in the financial securities trading business.
• Increased expenses due to business expansion.

Mitigation Strategies

• Continued efforts to resolve technical challenges in biomass gasification power generation projects, aiming for more efficient processes and cost reduction in future projects.
• Integration of multiple FX trading systems to significantly reduce system-related costs.
• System migration to reduce costs.

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Corporate Governance Committee with external experts and appointed three independent directors (two outside auditors and one outside director).

Climate Goals & Targets

Environmental Challenges

• Increased competition in the FX trading business, leading to declining profitability and increased cost burdens.
• Potential for increased competition in the renewable energy business with the entry of foreign companies or technological advancements by competitors.
• Regulatory changes in the FX trading business and renewable energy business.
• Fluctuations in the purchase price of renewable energy under the feed-in tariff (FIT) system.
• Economic and market changes affecting FX trading and renewable energy businesses.
• Natural disasters and pandemics.
• Country risk due to overseas subsidiaries.
• Risks associated with new business ventures.
• Risks associated with new services, existing service withdrawals, and new product or system development.
• Risk of declining capital adequacy ratio.
• Financial and accounting risks.
• System failures in online trading.
• Liquidity risks.
• Breach of financial covenants.
• Market risks in FX trading.
• Counterparty risks in FX trading.
• Credit risks from clients and contractors.
• Risk of client advance payments and bad debts.
• Operational risks.
• Technical and quality risks in renewable energy projects.
• Risks of employee misconduct.
• Risks associated with outsourcing.
• Risks of information leakage.
• Risks of lawsuits from clients.
• Risks related to the Prevention of Transfer of Criminal Proceeds Act.

Mitigation Strategies

• System integration to reduce system-related costs and increase customer deposits in the FX trading business.
• Strengthening marketing strategies and improving dealing profitability in the FX trading business.
• Expansion of BtoB business in the FX trading business.
• Supporting project financing needs through the financial group's business and network.
• Focusing on establishing a profitable business model for renewable energy projects.
• Strengthening the system development and sales activities in the system development business.
• Expanding business areas in the financial transaction system field.
• Diversifying revenue sources through new businesses.
• Ensuring stable profitability and achieving group growth (EPS increase) and eliminating inter-group internal fund lending and borrowing transactions.
• Maintaining a stable level of capital adequacy ratio (over 300%).
• Strengthening internal control systems and compliance.
• Securing and developing human resources.
• Improving corporate governance.
• Strengthening internal management systems.
• Improving the accuracy of financial statements.
• Developing alternative sourcing strategies for renewable energy materials.
• Strengthening risk management systems.
• Improving system security and stability.
• Diversifying funding sources.
• Cost reduction measures.
• Strengthening internal reporting systems.

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

• Wood biomass gasification power generation equipment.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity and Inclusion
• Human Capital
• ESG Governance

Social Achievements

• Established ESG Promotion Committee in June 2021 to discuss sustainability issues.
• Actively utilizes flexible work arrangements such as reduced working hours and flextime systems, particularly focusing on women's work-life balance.

Governance Achievements

• Established an ESG Promotion Committee in June 2021.
• Implemented a system for fair evaluation based on ability, experience, and work performance, regardless of gender, nationality, age, or disability.
• Defined criteria and procedures for the selection and dismissal of directors and auditors.

Climate Goals & Targets

Environmental Challenges

• ESG initiatives are in their early stages as of December 2021.
• Lack of specific policies and targets for promoting women's advancement.
• Limited information disclosure regarding human capital and intellectual property investment.
• Absence of a concrete succession plan for the CEO.
• No system for linking executive compensation to long-term company performance.

Mitigation Strategies

• The ESG Promotion Committee will identify and address key issues, and actively work through the group's business activities.
• The company will continue to improve the working environment to ensure diversity within the company.
• The company will clarify material issues in the social and environmental fields and publish the details on its website.
• The company will continue to consider the introduction of a suitable compensation system that encourages a healthy entrepreneurial spirit.
• The company will continue to examine the need for and implement measures to improve the environment for exercising voting rights.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoted paperless office to reduce paper consumption and contribute to forest resource protection and CO2 reduction.
• Implemented energy-saving measures in the office, including replacing PCs with energy-efficient models.
• Completely banned the use of plastic bottles in the office to contribute to solutions for the worsening marine plastic problem.

Social Achievements

• Participated in the "Kodomo no Mirai Kobon Bokin" (Children's Future Support National Movement) by donating used books.
• Implemented initiatives to improve financial literacy among young people, students, and women, including sending forex dealers as lecturers.

Governance Achievements

• Continuously pursued and strengthened effective corporate governance to achieve sustainable growth and long-term corporate value improvement.

Climate Goals & Targets

Environmental Challenges

• Missed target for deposit assets in FY2022 due to delays in providing cryptocurrency CFD trading services and the sharp fluctuation in the Turkish lira exchange rate in October 2021.

Mitigation Strategies

• Implementing measures to increase deposit assets by 25.9 billion yen in FY2023, including focusing on the company's core strengths in over-the-counter derivatives and enhancing the attractiveness of its main FX trading service.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity and Inclusion
• Human Capital
• Environmental Issues

Social Achievements

• Established ESG Promotion Committee in June 2021 to discuss sustainability issues.
• Actively utilizes flexible work arrangements such as reduced working hours and flextime systems, particularly focusing on women's work-life balance.

Governance Achievements

• Implemented a system for evaluating the effectiveness of the Board of Directors (since April 2022).
• Introduced a restricted stock compensation system for directors (excluding outside directors) to align interests with shareholders.

Climate Goals & Targets

Environmental Challenges

• ESG initiatives are in their early stages, requiring further development.
• Lack of specific internal policies and targets for promoting women's advancement.
• Limited disclosure of information regarding investment in human capital and intellectual property.

Mitigation Strategies

• The ESG Promotion Committee will identify and address key issues, with updates provided on the company website and disclosure documents.
• The company recognizes the importance of diversity and promotes fair evaluation based on ability and performance, regardless of gender, nationality, age, or disability.
• The company plans to improve disclosure regarding human capital and intellectual property investment, aligning with business strategy.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoted paperless office to protect forest resources
• Completely banned the use of plastic bottles in the office
• Reduced electricity consumption through energy-saving initiatives

Social Achievements

• Participated in the "Children's Future Support National Movement" by donating used books
• Improved financial literacy through various initiatives including events and publications

Governance Achievements

• Enhanced corporate governance by improving the effectiveness of the board of directors
• Increased compliance with the Tokyo Stock Exchange's Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Decreased deposit assets due to the Turkish lira crash in November and December 2021

Mitigation Strategies

• Shifted focus from cryptocurrency to FX, implemented various marketing strategies including TVCMs, and launched campaigns to attract new customers and increase deposits

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• みんかぶFX年間ランキング総合部門1位
• みんかぶFX年間ランキングスワップ部門1位

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoted paperless office to protect forest resources
• Completely banned the use of plastic bottles in the office
• Reduced electricity consumption through energy-saving initiatives and replacement of PC equipment
• Started using renewable energy-derived electricity at the head office, reducing CO2 emissions equivalent to what 14.8ha of cedar forest absorbs in a year

Social Achievements

• Participated in the "Kodomo no Mirai Kobon Bokin" (Children's Future Used Book Donation) program
• Improved financial literacy through various initiatives, including lectures and publications

Governance Achievements

• Strengthened corporate governance, including enhancing the effectiveness of the board of directors and increasing transparency in management processes
• Increased the number of Comply items in the Tokyo Stock Exchange's Corporate Governance Code from 46 to 72

Climate Goals & Targets

Environmental Challenges

• Significant decrease in entrusted assets due to rapid yen appreciation and resulting customer losses
• Increased transaction-related expenses due to performance-based advertising and marketing campaigns

Mitigation Strategies

• Review and reduction of management expenses
• Active marketing campaigns to increase brand awareness and attract new customers

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity
• Human Capital

Social Achievements

• Established the ESG Promotion Committee in June 2021 to regularly discuss sustainability issues.
• Established the Human Resources Development Policy in 2023, clarifying the importance of diversity and providing training opportunities.

Governance Achievements

• Introduced a Restricted Stock Compensation Plan to incentivize sustainable corporate value increase.
• Established the Corporate Governance Committee to exchange opinions on corporate governance.

Climate Goals & Targets

Environmental Challenges

• Insufficiently addressing sustainability issues despite starting initiatives.
• Lack of specific indicators or target levels for ensuring diversity, including women.

Mitigation Strategies

• Continuing to actively address sustainability issues through business activities and the ESG Promotion Committee.
• Planning to provide training and re-skilling opportunities for human resources who respect diversity.
• Regularly verifying and disclosing details of implemented initiatives on the company's website.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity
• Human Capital
• Environmental Sustainability
• Governance

Social Achievements

• Established ESG Promotion Committee in June 2021 to discuss contributions to sustainability issues.
• Established Human Resources Development Policy in 2023, setting target indicators for female workers in management positions, wage difference between male and female workers, ratio of female employees, employment rate of persons with disabilities, and ratio of foreign workers.

Governance Achievements

• Transitioned from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee on June 26, 2024.
• Established the Nomination and Remuneration Committee as a voluntary advisory body to the Board of Directors.
• Introduced a Restricted Stock Compensation Plan to incentivize sustainable increase in corporate value.

Climate Goals & Targets

Environmental Challenges

• Insufficient diversity in the group, including promotion of women’s activities.
• Need for proactive investment in human capital and intellectual property.
• Appropriate allocation of management resources, including investment in human capital and intellectual property, and effective supervision by the Board of Directors.

Mitigation Strategies

• Clarified human resource development policy and internal environment development policy for 2023, setting target indicators for diversity.
• Established ESG Promotion Committee to discuss sustainability issues and clarify materiality.
• Formulating strategies and policies to increase corporate value related to human capital and intellectual property, based on evaluations and analyses of Board of Directors meetings.

Supply Chain Management

Climate-Related Risks & Opportunities