Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cost Optimization
• Employee Well-being
• Food Loss Reduction
• Energy Efficiency
• DX (Digital Transformation)

Environmental Achievements

• Implemented energy-saving measures in air conditioning and kitchen equipment.
• Reduced food loss and improved food recycling rate.

Social Achievements

• Implemented various measures to improve employee well-being, including work-life balance initiatives and a partner evaluation system.
• Introduced a regional limited regular employee system to improve work-life balance.
• Implemented infection control measures for customer and employee safety.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant decrease in sales due to the COVID-19 pandemic and the transfer of Atom Hokkaido.
• Securing high-quality workforce in a labor-intensive industry.

Mitigation Strategies

• Cost optimization initiatives, including fixed cost reduction and variable labor cost control.
• Implementation of DX initiatives to improve store operations and enhance efficiency.
• Development of takeout and delivery services to adapt to changing consumer lifestyles.
• Introduction of new technologies such as robots for improved service and cost reduction.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Close collaboration with suppliers to optimize delivery frequency, standardize ingredients, and expand in-house production.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Community Investment

Social Achievements

• Established a nomination and compensation advisory committee in May to strengthen governance.
• Concluded an industrial promotion collaboration agreement with Fukui Prefecture (one of the company's founding locations) in September to contribute to the development of the local community and economy.

Governance Achievements

• Established a nomination and compensation advisory committee in May.

Climate Goals & Targets

Environmental Challenges

• Decreased sales due to continued requests for shortened business hours due to declarations of emergencies and focused measures to prevent the spread of COVID-19 from January to September 2021.

Mitigation Strategies

• Cost optimization and streamlining of unprofitable stores resulted in a profit effect of 377 million yen.
• Implemented marketing strategies after the lifting of emergency declarations and focused measures to prevent the spread of COVID-19, leading to sales recovery in October.
• Continued cost optimization efforts, resulting in a 17.3% improvement in break-even sales in the second quarter of fiscal year 2022 compared to the first quarter of fiscal year 2021.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Regional economic development
• Sustainable sourcing
• Waste reduction
• CO2 emission reduction
• Board diversity
• Compliance
• Community engagement

Environmental Achievements

• Reduced food waste through improved demand forecasting and inventory optimization
• Reduced CO2 emissions by reviewing delivery frequency
• Use of soybean meat and other alternative proteins
• Introduction of oil-reducing fryers

Social Achievements

• Active use of local ingredients (e.g., Aichi Prefecture's Atsumi Premium Russa Salmon)
• Contribution to regional brand expansion (e.g., Fukui Fair)
• Held special lectures and classes at Fukui University and Fukui Prefectural High School
• Increased frequency of compliance training

Governance Achievements

• Appointed independent outside directors to more than one-third of the board
• Substantially revised internal audit standards to improve store operational quality

Climate Goals & Targets

Environmental Challenges

• Seventh wave of COVID-19 impacting consumption
• Higher-than-expected energy and hourly wage costs
• Underperformance of the Izakaya (pub) business segment compared to competitors

Mitigation Strategies

• Marketing and store development initiatives to improve sales
• Cost optimization efforts
• Brand conversion from Izakaya to other restaurant formats (e.g., steak, yakiniku, sushi)
• Store remodeling and new high-value-added product offerings
• Active use of national travel support coupons in Izakaya restaurants in local train stations

Supply Chain Management

Responsible Procurement

• Active use of local ingredients

Climate-Related Risks & Opportunities

Transition Risks

• Energy price increases

Sustainable Products & Innovation

• Soybean meat and other alternative proteins
• Oil-reducing fryers

Environmental Metrics

ESG Focus Areas

• Sustainable food procurement
• Reduction of carbon dioxide emissions
• Use of locally sourced ingredients
• Sustainable aquaculture

Environmental Achievements

• Reduced carbon dioxide emissions through revised store delivery frequency
• Introduced plant-based soybean meat hamburger as an alternative to meat

Social Achievements

• Actively utilized locally sourced ingredients from the regions where stores are located, contributing to regional economic development
• Sold live-killed Yonago osashimi masaba produced through a completely aquaculture system that reduces environmental burden
• Sold Aserora Madai® certified by SCSA, proving that it is produced by sustainable aquaculture

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased consumer sentiment due to price increases from the yen's depreciation
• Increased raw material and energy costs

Mitigation Strategies

• Cost optimization activities
• Introduction of high value-added products and promotional measures
• Store remodeling and conversion to improve profitability
• Closing unprofitable stores

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing of locally produced ingredients
• Use of sustainably farmed seafood

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: SCSA

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Plant-based soybean meat hamburger
• Aserora Madai® (sustainably farmed fish)

Awards & Recognition

• Not disclosed