Climate Change Data

MTI Ltd.

Climate Impact & Sustainability Data (2009, 2011)

Reporting Period: 2009

Environmental Metrics

ESG Focus Areas

  • Social Contribution Activities
  • Safety
  • Environmental Responsibility

Environmental Achievements

  • Collected 46,680 PET bottle caps, resulting in approximately 367.61 kg CO2 reduction and 58.4 vaccine doses through the Ecocap campaign.
  • music.jp® sponsored Earth Day Tokyo 2009.

Social Achievements

  • Number of paying subscribers for Luna-Luna Health for Women exceeded one million.
  • Provided donations through Japan Red Cross and UNICEF to assist victims of natural disasters and children worldwide.
  • Increased final dividend by ¥1,000 to ¥2,000 per share.
  • Implemented measures to create a safe online environment for Log Tomo users, including 24/7 monitoring and reporting of inappropriate content to the police.

Governance Achievements

  • Adopted a one-year term of office for directors to add urgency to management.
  • Strengthened compliance systems.
  • Appointed Ernst & Young ShinNihon LLC as independent auditor.
  • Formulated rules covering risk management structure.

Climate Goals & Targets

Environmental Challenges

  • Reliance on key individuals (President and CEO Toshihiro Maeta).
  • Potential for unforeseen factors impacting the content distribution business (technical innovation, competition, changing user preferences).
  • Potential for unforeseen factors impacting the mobile advertising business (subscriber acquisition costs, media advertising sales).
  • Risks related to changes in laws and regulations.
  • Risk of personal information leakage.
  • Risk of intellectual property infringement.
  • Risk of information network inoperability.
Mitigation Strategies
  • Developing and reinforcing human resources to reduce reliance on key individuals.
  • Continuously monitoring market trends and adapting strategies.
  • Implementing strict policies and systems to protect personal information and intellectual property.
  • Maintaining robust information security measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2011

Environmental Metrics

ESG Focus Areas

  • Social Contribution
  • Employee Well-being
  • Corporate Governance
  • Risk Management
  • Information Security

Environmental Achievements

  • Used FSC® certified paper and vegetable oil-based ink for printing the annual report.
  • Collected 175,000 PET bottle caps for recycling and donated proceeds to charity.

Social Achievements

  • Donated a portion of revenues from music downloads to charities.
  • Supported women's health campaigns, including "Women's Health Week" and cervical cancer awareness.
  • Provided free access to the "Home Medicine" iPhone application to victims of the Great East Japan Earthquake.
  • Donated to victims of the Great East Japan Earthquake through the Japanese Red Cross Society.
  • Proactively used "Red Cross Paper" and "Vaccine Paper" for company materials.

Governance Achievements

  • Adopted a one-year term of office for directors.
  • Strengthened compliance systems.
  • Emphasized two-way communication with stakeholders.
  • Appointed Ernst & Young ShinNihon LLC as independent auditor.
  • Established a Compliance Committee and internal reporting system.

Climate Goals & Targets

Short-term Goals:
  • Expand the number of paying subscribers to smartphone services and return the total number of paying subscribers to an increasing trend.

Environmental Challenges

  • Rapid shift from feature phones to smartphones, causing delays in smartphone-compatible content and billing system development.
  • Increased competition in the mobile content market.
  • Rapid technological changes in the smartphone market.
  • Potential for inoperability of information networks due to natural disasters, accidents, or system failures.
  • Risk of personal information leakage.
  • Potential infringement of intellectual property rights.
Mitigation Strategies
  • Developed smartphone service infrastructure, adapting 43 services for smartphones.
  • Improved mopita®, the company's proprietary member authentication and settlement system.
  • Increased development staff and adopted the "agile method" for software development.
  • Promoted development at offshore bases in China and South Korea.
  • Implemented strict policies to protect personal information.
  • Maintained caution to avoid infringement of intellectual property rights.

Supply Chain Management

Climate-Related Risks & Opportunities