Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 10% in the new Capcom Technical Center compared to 2011.
• Efficient use of Pachislo frame materials, reducing waste.
• Sharing distribution networks to reduce packing materials, fuel, and emissions.
• Paperless instruction manuals, eliminating approximately 7 million game units' worth of paper annually.

Social Achievements

• Conducted 73 on-site classes for 7,242 students.
• Improved workplace environment for women, with high childcare leave utilization and return rates.
• Employs 433 women (20% of workforce) and 20 female managers (9.7% of managers).
• Employs 69 foreigners (3.4% of workforce).
• Partnerships with police departments to raise awareness of vehicle theft prevention.
• Collaboration with Kofu city for regional revitalization.

Governance Achievements

• Improved ratio of external directors on the Board of Directors to 42.9%.
• Established Audit Committee and Remuneration Committee.
• Disclosed details of discussions at Board of Directors meetings.
• Enhanced dialogue with shareholders and investors regarding takeover defense measures.
• Increased transparency and timely disclosure of information.

Climate Goals & Targets

Environmental Challenges

• Decline in sales due to lack of hit titles in Mobile Contents and pullback after the success of "Monster Hunter 4".
• Delayed sales launch of pachislo machines due to revised certification methods.
• Intense competition in the mobile and PC online game markets.
• Rising development costs for high-performance game consoles.
• Market contraction in the arcade operations business.

Mitigation Strategies

• Structural reforms to improve profitability, including cost reduction and increased digital download sales.
• Focus on highly profitable titles and efficient internal development.
• Strengthening marketing and monetization in the online business.
• Expansion into Asian markets through business alliances.
• Cultivating new customer segments in the arcade business (seniors, families).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sharing distribution networks with other companies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Nikkei Annual Report Awards 2014 (Award for Excellence)
• Daiwa Investor Relations Internet IR Grand Prize 2014
• Gomez IR Website Ranking (2nd overall in 2014)
• Nikko Investor Relations Fiscal 2014 Listed Company Website Quality Ranking (3rd overall)
• LACP 2013 Vision Awards Annual Report Competition (Silver Award)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 10% overall versus previous levels in new R&D Building #2 and Capcom Technical Center through LED lighting and displacement air conditioning systems.
• Reduced energy intensity by at least 1% for two consecutive years, achieving S Class status under the Business Operator Class-Based Assessment System.

Social Achievements

• Launched educational support activities for elementary and junior high school students.
• Opened an on-site day care center, Capcom Juku.
• Released Toraware no Paruma, a romance game for women developed primarily by female employees.
• Increased the number of women in management positions to 25 (11.4% of managers overall) and women account for roughly 20% of Capcom’s workforce.
• Increased the number of non-Japanese employees to 99 (4.3% of employees).

Governance Achievements

• Transitioned to a company with an audit and supervisory committee.
• Increased the ratio of external directors to 50%.

Climate Goals & Targets

Environmental Challenges

• Earnings volatility risks in the Consumer business due to dependence on hit titles.
• Management decision risks in a founder-led company.
• Lagging performance in the Mobile business compared to industry peers.
• Market fluctuations in the Amusement Equipments business due to regulatory changes.
• Decreased revenue from licensing in the PC Online business.

Mitigation Strategies

• Transitioning to a recurring revenue model in the Consumer business.
• Implementing management visualization initiatives and governance reforms.
• Exploring alliances and M&A in the Mobile business.
• Expanding pachislo lineup and strengthening sales structure in the Amusement Equipments business.
• Streamlining management and reducing overhead in the PC Online business.

Supply Chain Management

Responsible Procurement

• Regulations Concerning the Management of Purchasing Transactions
• Regulations Concerning the Management of Outsourced Transactions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Awards & Recognition

• Excellence Prize at the Nikkei Annual Report Awards 2016
• 2016 Internet IR Grand Prize
• 1st overall in the Fiscal 2016 Listed Company Website Quality Ranking
• S Class status for two years running under the Business Operator Class-Based Assessment System

Environmental Metrics

ESG Focus Areas

• Enhancement of Corporate Governance
• Securing and Training of Human Resources
• Development of Solid Relationship with Society
• Promoting Diversity

Environmental Achievements

• Reduced CO2 emissions by switching to LED lighting
• Reduced exhaust gas and resources used via distribution network sharing with other companies in the industry
• Reduced paper resources used through the digitization of instruction manuals
• Reduced power usage through ongoing power saving at all of its places of business, saving energy at its amusement facilities, and implementing peak shifting for the power used by PCs and other electrical equipment

Social Achievements

• Launched educational support activities for elementary and junior high school students
• Held Company Visits, where children are welcomed to the offices, and Guest Lectures at schools
• Actively employed non-Japanese citizens
• Increased number of women in management positions
• Held Health and Safety Committee meetings
• Implemented staff training
• Implemented discretionary work system
• Established onsite daycare center
• Held amusement arcade tours free of charge for senior citizens

Governance Achievements

• Increased the ratio of external directors
• Transitioned to a company with an audit and supervisory committee
• Established a nominating committee
• Established the Compensation Committee
• Established the Compliance Committee
• Established the Audit Committee

Climate Goals & Targets

Environmental Challenges

• Increasing the percentage of women in management positions
• Training of human resources globally
• Further promotion of regional revitalization using Capcom content
• Increasing energy conservation at existing buildings through renovation
• Further conserving energy in amusement facility operations
• Increasing the number of opportunities for persons in charge of development to converse with the market
• The effective operation of the audit and supervisory committee system
• Board of Directors effectiveness assessments and their utilization
• Setting developer compensation in consideration of medium- to long-term sustainable growth

Mitigation Strategies

• Formulated guidelines with industry groups
• Education of manufacturers, users, consumer groups, government entities, etc.
• Supported senior citizen community formation with video game arcade tours
• Reduced costs (used less electricity, cut distribution costs)
• Constructed new environmentally-friendly buildings
• Reduced paper resources used through the digitization of instruction manuals
• Increased dialogue with shareholders
• Transitioned to a company with an audit and supervisory committee
• Raised the ratio of external directors
• Established a nominating committee

Supply Chain Management

Responsible Procurement

• Sharing distribution networks with other companies in the same industry when shipping products

Climate-Related Risks & Opportunities

Awards & Recognition

• Institutional Investor’s 2017 All-Japan Executive Team rankings, Software sector “Best IR Company” Third Place
• Capcom’s integrated report chosen for excellence by asset management companies contracted with GPIF
• Capcom’s integrated report chosen for “marked improvement” by asset management companies contracted with GPIF
• 20th Nikkei Annual Report Awards, Excellence Prize
• Institutional Investor’s 2017 All-Japan Executive Team rankings, Software sector “Best Website” First Place
• Daiwa Investor Relations Co., Ltd. (Daiwa IR), “Internet IR Award 2017,” Grand Prize
• Morningstar Japan K.K., Gomez Consulting Dept.’s “Investor Relations Site Ranking 2017,” First place
• Nikko Investor Relations Co., Ltd., “Fiscal 2017 Listed Company Website Quality Ranking,” Second Place

Environmental Metrics

ESG Focus Areas

• Environmental
• Social Responsibility
• Governance

Environmental Achievements

• Introduced CO2-free electricity from renewable energy sources in Kansai region buildings (June 2022) and Tokyo branch (April 2023).
• Digitalization of game sales reduced environmental footprint by eliminating package manufacturing.

Social Achievements

• Increased employee engagement in fiscal 2022 through improved communication.
• Continued game-related educational support activities since 2004 to address social concerns.
• Promotes diversity and inclusion in hiring and training.

Governance Achievements

• Increased ratio of external directors to 46.7% (including one female director in June 2022).
• Established Information Technology Security Oversight Committee after 2020 network security incident.
• Employs quantitative management visualization for transparent and rational decision-making.

Climate Goals & Targets

Environmental Challenges

• Securing and retaining talent in a competitive job market.
• Expanding brand awareness globally, particularly in emerging markets.
• Addressing challenges related to in-game purchases by minors and game addiction.
• Managing risks associated with cyberattacks and data protection.

Mitigation Strategies

• Annual hiring of approximately 150 new graduates and mid-career professionals.
• Investments in workspace expansion and employee well-being initiatives.
• Collaboration with industry organizations to address social concerns.
• Strengthened security measures and establishment of oversight committees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Securing and Training of Human Resources
• Promoting Diversity
• Development of Solid Relationship with Society
• Enhancement of Corporate Governance

Social Achievements

• Increased ratio of female employees to 21.2% and foreign employees to 6.8%
• Provided educational support to 23,089 students
• Introduced special leave for foreign employees to visit home countries and a more inclusive partnership system

Governance Achievements

• Maintained 46.7% external directors on the board

Climate Goals & Targets

Environmental Challenges

• Generational and interregional communication gaps
• Sluggish local industries
• Japan’s declining position internationally
• Global economic and information inequality

Mitigation Strategies

• Securing and training outstanding developers
• Promoting diversity in hiring and evaluation
• Developing solid relationships with society through various initiatives
• Strengthening corporate governance through transparency, soundness, and legal compliance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• 2
• 5
• 8
• 10
• 11
• 17

Capcom's initiatives contribute to these SDGs through human resource development, diversity promotion, community engagement, and corporate governance enhancement.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Resources

Social Achievements

• Increased the average base salary of full-time employees by 30% since FY2023.
• Established a more performance-linked bonus system.
• Introduced a stock-based compensation system.
• Increased starting salary for new graduates.

Governance Achievements

• Established Corporate Governance Guidelines.
• Revised director compensation system to align with shareholder perspective and introduced a performance-linked stock compensation system.
• Improved Board of Directors effectiveness through round-table discussions with external directors and enhanced reporting of stakeholder opinions.
• Maintained a Board of Directors with seven external directors, all meeting independent director criteria.

Climate Goals & Targets

Environmental Challenges

• Maintaining and attracting young employees.
• Increasing diversity in senior management, particularly women.
• Narrowing the wage gap.
• Promoting male employees taking childcare leave.

Mitigation Strategies

• Reviewing compensation and benefits for young employees.
• Improving career development support.
• Reviewing organizational forms and evaluation systems.
• Clarifying issues and examining measures to support career development for women.
• Strengthening outreach efforts to promote childcare leave.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• IR Excellent Company Award 2023 (Japan Investor Relations Association)
• Internet IR Award 2023 (Daiwa IR), Excellence Award
• Fiscal 2023 Listed Company Website Quality Ranking, Grade AAA (Nikko Investor Relations Co., Ltd.)