Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Security
• Work Style Reform
• Personnel System
• Childcare Philosophy
• Environmental Sustainability
• Governance

Environmental Achievements

• Equipment for environmentally sound facilities (LED lighting, Yukarela floor-wide radiant air cooling and heating system, Ecocarat material, Solaton ceiling materials with Eco Mark certification)

Social Achievements

• Work Style Reforms: Improvement in addressing workplace environment issues, improvement in salaries/benefits of on-site employees
• Helping facilitate women’s participation in society by opening childcare facilities

Governance Achievements

• Three Outside Directors and four Outside Audit and Supervisory Board Members acting as independent officers
• Harassment eradication declaration
• Development of risk management practices
• Compliance Committee
• Internal whistle-blowing system
• Compliance training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact (temporary closure of facilities, reduced children accepted)
• Declining birthrate
• Shortage of nursery school teachers
• Intensifying competition
• Changes in government policies and subsidies

Mitigation Strategies

• Established Headquarters for Measures against COVID-19
• Implemented various safety measures in facilities and head office
• Reduced new facility openings to focus on qualitative improvement and profitability
• Work style reform and personnel system improvements
• Strengthened recruitment and retention of nursery school teachers
• Developed new growth businesses

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Childcare support
• Educational support
• Personnel development
• Empowerment of women
• Human rights and D&I
• Social contribution to local communities
• Earth environment

Environmental Achievements

• Reduction of CO2 emissions by installing LED lighting
• Reduction of food loss and waste

Social Achievements

• Promotion of work style reform
• Enrichment of training structure
• Career paths and job rotation
• Workstyles tailored to lifestyles
• Systems for childbirth, childcare, and nursing care
• Development of a proper business environment
• Promotion of childcare support in local areas
• Promotion of employment
• Promotion of prevention of abuse
• Opened 4 nursery schools and 5 school clubs. 1 nursery school became a licensed nursery school.
• Number of Children Accepted to Nursery Schools 15,517 +266 YoY

Governance Achievements

• Transformation into a Company with an Audit and supervisory Committee
• Fortification of governance and compliance systems
• Establishment of the audit and Supervisor committee
• Enhancement of the functions of the internal audit office
• Establishment of the childcare committee and safety control committee

Climate Goals & Targets

Environmental Challenges

• Declining population and decreasing number of children
• Long-term impact of COVID-19 on society and organizations
• Effects of workstyle reform on labor-intensive business
• Fierce competition for employing nursery school teachers
• Significant impact of COVID-19 on facilities and management systems
• Changes in childcare and education needs (online)
• Effects of financial policies on subsidies and childcare leave periods
• Delay in streamlining and systematization of management, operation, and workflow
• Necessity to improve employment of appropriate employees, personnel education, and excessive flat-organization
• Shortage of nursery school teachers

Mitigation Strategies

• Reform of business administration
• Intensive allocation of managerial resources to specific areas
• Improvement in revenues from existing businesses, streamlining of business operations, and creation of digital businesses
• Cooperation among group companies, exertion of synergy, and vitalization of organizations
• Fortification of our business foundation
• Promotion of digitalization of marketing
• Systematization
• Strengthen management
• HR development and management
• Online recruitment and training
• Improved tutoring system and communication
• Personnel system reform
• Streamlining paperwork with ICT
• Rationalizing attendance management system
• Group restructuring and operation streamlining
• Strengthening risk control structure
• Reinforcement of governance structure
• Group-wide projects for new businesses (Meal Kits, Online Childcare)
• Restructuring of group’s business and organizations
• Development of business operations of the development section at Japan Nursery Institute for General Research
• Utilizing national and municipal subsidy and continue to improve wages.
• Implemented salary increase by regions(Max 480 thousand ¥/y)
• Newly invented salary by roles(Max 480 thousand ¥/y)
• Salary increase for directors and chiefs of nurseries(300 thousand ¥/y)

Supply Chain Management

Responsible Procurement

• Reduction of expenses for ingredients

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

The company's initiatives contribute to these goals through providing quality childcare and education, promoting gender equality in the workplace, creating decent work opportunities, contributing to sustainable communities, and reducing environmental impact.

Sustainable Products & Innovation

• Meal kits
• Online childcare programs

Environmental Metrics

ESG Focus Areas

• Childcare support
• Educational support
• Personnel development
• Empowerment of women
• Human rights and D&I
• Social contribution to local communities
• Earth environment

Environmental Achievements

• Reduction of CO2 emissions by installing LED lighting
• Reduction of food loss and waste

Social Achievements

• Increased number of children accepted due to digitalization measures
• Improved income and expenditure through setting KPIs
• Undertook the operation of more school clubs
• Promotion of work style reform
• Enrichment of training structure
• Workstyles tailored to lifestyles
• Systems for childbirth, childcare, and nursing care
• Promotion of childcare support in local areas
• Promotion of employment
• Promotion of prevention of abuse
• Support for single-parent households (December 2020 and May 2021)

Governance Achievements

• Actualize a compact head office
• Integration of group businesses and centralization of head office
• Development of next-generation leaders

Climate Goals & Targets

Environmental Challenges

• Capability of disseminating information needs to be improved
• Regional disparities
• Need to receive more subsidies
• Need to review business operations to further streamline them
• Need to curtail labor expenses through proper allocation of personnel
• Need to expand the business scale other than subsidies
• Significant and sharp drop in the number of births
• Impact of economic stagnation on subsidies
• Change in the subsidy system
• Improvement in profitability and efficiency
• Reform of mindsets of onsite workers
• Intensification of the competition for acquiring children
• Closure of more nursery schools
• Acceleration of restructuring of childcare enterprises
• Outsourcing of operation of more public nursery schools to private enterprises
• Change of social welfare corporations due to the amended Social Welfare Act
• Establishment of Agency for Children and new items for subsidies
• Chronic shortage of nursery staff
• Trend of COVID-19
• Steep drop in the number of births
• Decline in needs for childcare, due to the decrease of children
• Revision to systems and policies of national and local governments

Mitigation Strategies

• Cooperation with municipalities, approach to guardians, collaboration with local communities
• Online facility tours
• Improvement of the environment of each nursery school
• Implementation of digitalization programs (English, gymnastics, eurhythmics, and dance)
• Enrichment of early childhood learning programs
• Start of the support business by visiting nursery schools
• Proper allocation of personnel and streamlining of operation
• Review business operations in order to further streamline them
• Curtailment of labor expenses through proper allocation of personnel
• Restructuring of businesses inside our corporate group
• Removal of unnecessary tasks and proper allocation of head office personnel through systematization
• Enrichment of the early childhood learning program and integration of procurement processes based on the business alliance with Gakken HD
• Promotion of the platform business
• To put demonstrations and experiments into practice
• Active adoption of digital technologies (online facility tours, online learning programs, online international exchange programs)
• Development of nursery schools and facilities that would be selected by customers
• Systematization and reform of systems for streamlining the operations at the head office and each workplace
• Proper allocation of on-site personnel
• Strengthening of cooperation with on-site workers by reallocating head office’s staff through the streamlining of management and systematization
• Restructuring of our subsidiaries
• Merger of Japan Nursery Service and Amenity Life (Apr. 2022)
• Sharing best practices among blocks to fix disparities in revenues
• Promotion of the sale of real estate we own
• Undertaking more projects for schools clubs and children’s houses
• Facilitating the exchange between the management division and the staff of facilities
• Enrichment of the training for each class
• Online facility tours/enrichment of external announcements
• Renewal of our website
• Development of the forte of each nursery school based on the survey on competition in the neighborhood and PR
• Popularization through joint events with local communities and programs of each nursery school
• Enhancement of PR activities
• Development and adoption of attractive programs, and enhancement of PR
• Collaborative lessons with other companies
• Original online programs for English, gymnastics, eurhythmics and dance
• Expansion of early childhood learning programs
• Development of new programs and improvement of services for infants
• Adoption of dance and fine arts programs
• Increase in recognition of Baby Asc
• Value creation based on the business alliance with Gakken
• Cooperation in reducing costs, including joint purchase
• Creation and launch of a platform business
• Business alliances with other enterprises and M&A to achieve the top share

Supply Chain Management

Responsible Procurement

• Joint purchase with Gakken HD

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

The company's activities contribute to these SDGs through providing childcare and educational support, promoting gender equality in the workplace, contributing to economic growth, reducing inequalities, promoting sustainable communities, and reducing carbon emissions.

Environmental Metrics

ESG Focus Areas

• Childcare safety and reliability
• Employee well-being
• Community engagement
• Environmental sustainability
• Social contribution

Environmental Achievements

• Reduced CO2 emissions through power-saving measures (details not quantified)
• Food loss reduction measures (details not quantified)

Social Achievements

• Increased number of children accepted in facilities
• Improved quality of childcare support
• Expanded early childhood learning programs
• Developed a child-rearing assistance platform ("codomel")

Governance Achievements

• Strengthened governance structure
• Improved management efficiency
• Systematization of human resource systems

Climate Goals & Targets

Environmental Challenges

• Rising electricity charges and increasing prices of procured merchandise
• Shortage of nursery staff
• Intensification of competition for nursery staff

Mitigation Strategies

• Streamlined business operation and cost reduction measures
• Improved working environment and employee treatment
• Enhanced recruitment of new personnel
• Considering establishment of a personnel introduction firm
• Considering M&A and acceptance of non-Japanese personnel

Supply Chain Management

Responsible Procurement

• Reuse and recycling of childcare products

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

The company's activities contribute to these SDGs through childcare support, educational support, personnel development, social contribution, and environmental initiatives.

Environmental Metrics

ESG Focus Areas

• Childcare support
• Employee well-being
• Community engagement
• Environmental sustainability
• Diversity and Inclusion

Environmental Achievements

• Reduced CO2 emissions by installing LED lighting
• Reduction of food loss and waste

Social Achievements

• Opened new childcare facilities, increasing the number of children served
• Improved employee treatment
• Launched child-rearing assistance platform “codomel”
• Initiatives for preventing child abuse
• Support for single-parent households
• Empowerment of women in the workplace
• Workstyles tailored to lifestyles
• Systems for childbirth, childcare, and nursing care

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Declining birthrate
• Increasing competition among childcare facilities
• Shortage of nursery school teachers
• Skyrocketing commodity prices

Mitigation Strategies

• Opening new facilities
• Implementing drastic countermeasures against declining birthrate
• Maximizing subsidies
• Improving efficiency of business operations
• Active promotion of M&A
• Personnel introduction/dispatch business expansion
• Real estate cost reduction
• Enrichment of childcare support programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Lump-sum purchase of ingredients and fixings, policies for business partners

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

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

The company's childcare support business contributes to these goals through various initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed