Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Sustainability

Environmental Achievements

• Reduced greenhouse gas emissions to approximately 1,687.35t-CO2 (Scope1: 371.43t-CO2 / Scope2: 1,315.92t-CO2) in fiscal year 2021. Future plans include shifting to renewable energy.

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Committee under the representative director to formulate basic policies and identify materiality for sustainability management, including climate change issues. The committee reports to the board of directors at least once a year.

Climate Goals & Targets

Environmental Challenges

• Decreasing gaming population and reduced Pachinko hall operation due to the prolonged COVID-19 pandemic.
• Global semiconductor shortage and rising raw material prices.
• Potential for bugs in software.
• Significant fluctuations in demand for gaming machines.
• Difficulty in completely protecting intellectual property rights.
• Climate change risks.

Mitigation Strategies

• Thorough information gathering and rapid strategic planning to address inventory risks and sales slumps.
• Clarifying the roles of group companies in game development to enhance expertise and improve design quality and development productivity.
• Strengthening the analysis capabilities of in-house defects and collaborating with related departments to prevent recurrence and potential defects.
• Demand forecasting based on market trends and collaboration with gaming machine manufacturers to minimize unexpected cost burdens.
• Establishing a specialized intellectual property management department.
• Implementing “continuous supply guarantee” criteria for selecting components.
• Developing contingency plans for pandemic and major disasters.
• Regularly holding the Compliance Risk Management Committee and Financial Reporting Meeting to manage various risks.

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: TCFD

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

• 地球環境への貢献 (Contribution to the Global Environment)
• 人材活躍の推進 (Promotion of Human Resources)
• イノベーションによるソリューション提供 (Providing Solutions through Innovation)
• 依存症への対応 (Addressing Addiction)
• ガバナンスとコンプライアンスの強化 (Strengthening Governance and Compliance)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, GRIスタンダード (GRI Standard)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital/Diversity
• Governance

Environmental Achievements

• Installed solar panels at the Kasugai factory to reduce CO2 emissions.
• Achieved CDP Climate Change Management Level "B-"

Social Achievements

• Introduced an executive officer system to clarify roles.
• Implemented an individual training system and a qualification acquisition system to enhance human capital.
• Released the gambling addiction check game "Cheppachi".

Governance Achievements

• Established a Sustainability Committee under the Board of Directors.
• Established a Sustainability Subcommittee and a Diversity Subcommittee.
• Implemented a robust risk management system for sustainability-related risks.

Climate Goals & Targets

Environmental Challenges

• Decreasing gaming population and reduced Pachinko hall operation due to the prolonged COVID-19 pandemic.
• Procurement difficulties of electronic components.
• Potential risks related to climate change (transition risks and physical risks).

Mitigation Strategies

• Prioritizing the recovery of Pachinko hall performance to pre-pandemic levels.
• Shifting the business focus to "Smart Pachinko/Pachislot" in the control system business.
• Implementing cost reduction measures in the control system business.
• Introducing a solar panel system to minimize increased expenditure due to carbon tax and emission trading.
• Strengthening the development management and improving operational efficiency to reduce development costs.

Supply Chain Management

Responsible Procurement

• Criteria for ensuring continuous supply of components

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, business interruption due to severe weather

Transition Risks

• Increased carbon tax, rising electricity prices due to renewable energy expansion

Reporting Standards

Frameworks Used: TCFD

Certifications: 名古屋市ワーク・ライフ・バランス推進企業認証, あいち女性輝きカンパニー, テレワーク先駆者百選, ハタラクエール2022 福利厚生推進法人, ファミリー・フレンドリー企業

Environmental Metrics

ESG Focus Areas

• Contribution to the global environment
• Provision of solutions via innovation
• Promotion of human resource activities
• Response to addiction
• Enhancement of governance and compliance

Environmental Achievements

• Received a management level “B” score for efforts to address climate change from CDP, an improvement from the “B-” score in the previous year.
• Calculations for Scopes 1, 2 and 3 have been made in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Social Achievements

• Students from Rikuzentakata Municipal Junior High School had a work experience at “Robocube,” a programming school operated by the company.
• Released “Cheppachi,” a game to check gambling addiction, in fiscal 2022. Developing a second series.
• Sponsored the Kasugai Festival and conducted community clean-up activities.
• Donated 10 million yen to Ishikawa Prefecture to support areas affected by the 2024 Noto Peninsula Earthquake.
• Interviewed by the Aichi Prefectural Labor Bureau as an example of a company that promotes the use of childcare leave by male employees.

Governance Achievements

• Strengthened proposals to improve the performance of pachinko hall management companies.
• Strengthened information disclosure to provide new game features and specifications to fans.
• Promoted and strengthened proposals for the application of the “Market-SIS” trade area analysis service, the “ClarisLink” cloud chain store management system, and the “Χ (Kai)” AI-based hall computer.

Climate Goals & Targets

Environmental Challenges

• Tough market situation in the pachinko industry due to decreasing number of pachinko halls and installed machines.
• Need to strengthen proposals to improve the performance of pachinko hall management companies.
• Need to strengthen information disclosure and improve support functions for complicated game features.
• Need to promote and strengthen proposals for management support services.
• Need to promote measures for smart gaming machines by building a manufacturing and sales structure for pachislot machines and expanding the software development line for gaming machines.
• Need to strengthen cooperation among group companies to improve operational efficiency.

Mitigation Strategies

• Providing valuable products and services in a timely manner in response to market changes.
• Strengthening information disclosure to provide new game features and specifications to fans in a more attractive way, while improving support functions.
• Promoting and strengthening proposals for the application of the “Market-SIS” trade area analysis service, the “ClarisLink” cloud chain store management system, and the “Χ (Kai)” AI-based hall computer.
• Promoting measures for smart gaming machines by building a manufacturing and sales structure for pachislot machines and expanding the software development line for gaming machines.
• Strengthening cooperation among group companies to improve operational efficiency from planning and development to manufacturing and sales, and to enhance the product appeal of gaming machines.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Wellph noise-cancelling earphones
• Cheppachi gambling addiction check game

Environmental Metrics

ESG Focus Areas

• Gambling addiction
• Workstyle reforms
• Human resource engagement
• Climate change

Environmental Achievements

• Installed solar panels

Social Achievements

• Raising awareness through games to check gambling addiction
• Holding parent-child programming experience classes
• Promoting telecommuting and other workstyle reforms as well as human resource engagement

Governance Achievements

• Established the Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Difficulty of procuring electronic components and other items
• Decline in gaming machine sales volume due to replacement demand and exploration of smart gaming machines
• Impact of semiconductor shortages and sharp increases in costs caused by rising prices

Mitigation Strategies

• Made preparations to be able to fully meet demand (for electronic components)
• Strengthened its pachislot development system and re-established a manufacturing environment
• Not disclosed

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: TCFD

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

• Gambling addiction
• Workstyle reforms
• Human resource engagement
• Climate change

Environmental Achievements

• Installed solar panels

Social Achievements

• Raising awareness through games to check gambling addiction
• Holding parent-child programming experience classes
• Promoting telecommuting and other workstyle reforms as well as human resource engagement

Governance Achievements

• Established the Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Decline in the overall number of pachinko players
• Trend toward playing games with low rental costs for balls
• Increases in Japan’s consumption tax
• Impact of the new regulations
• Impact of the COVID-19 pandemic

Mitigation Strategies

• Shifting to a business model with recurring revenue
• Promoting widespread use of Market-SIS market area analysis service
• Launching the cloud-based chain store management system ClarisLink
• Developing smart pachislot machines under its own brand
• Aiming to become a DX leader in the pachinko industry by utilizing the latest technologies, such as AI and Big Data

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Wellph noise canceling earphones