Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions (Scope 1: 39 tCO2 in FY2019 to 13 tCO2 in FY2021; Scope 2: 1,138 tCO2 in FY2019 to 453 tCO2 in FY2021). Note: Data is non-consolidated.

Social Achievements

• Launched k encom health app, used by approximately 4.8 million users; improved awareness of exercise and diet habits among users.
• Achieved high marks in three categories of "health maintenance and promotion, including health issues specific to women," "promotion of communication among employees," and "prevention of decline in employee productivity and prevention of accidents" in the 2022 Health & Productivity Company (White 500) selection.
• Continued to promote a work-from-home system and flexible work arrangements.

Governance Achievements

• Revamped Mission, Vision, and Values (MVV) in April 2021.
• Established Nomination Committee and Compensation Committee to increase objectivity and transparency.
• Implemented a Group Executive System in April 2022 to develop future leaders.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks: increased costs from renewable energy conversion, loss of reputation due to inaction on climate change, loss of reputation and profit due to inability to respond to changes in environmental awareness.
• Climate change related physical risks: physical and human damage to facilities, supply chain disruptions due to disasters, increased costs to cope with rising temperatures, decline in business profitability due to changes in consumer trends and regulations.

Mitigation Strategies

• Promoting energy conservation and efficient use of renewable energy; prompt compliance with regulations; development of a decarbonization system; development of new businesses and services that respond to changes in behavior and values due to heightened environmental awareness; strengthening of business continuity plan (BCP); diversification of risk of damage to facilities by moving data centers to the cloud; promotion of businesses that make better use of online and digital technologies.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, rising temperatures, infectious disease outbreaks

Transition Risks

• Regulatory changes (carbon tax), market shifts (consumer preferences), reputational risks

Opportunities

• Development of energy-efficient products and services; capturing new business opportunities by leveraging strengths and assets to contribute to sustainable community development; enhancement of corporate brand image and reputation.

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• k encom health app

Awards & Recognition

• Health & Productivity Company (White 500) for six consecutive years (2017-2022), Health & Productivity Stock in 2019 and 2020, FTSE Blossom Japan Sector Relative Index constituent (2022), MSCI Japan Empowering Women Index Select Index constituent