Climate Change Data

TIS Inc.

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:70000 metric tons CO2e
Scope 1 Emissions:760 tCO2e
Scope 2 Emissions:65867 tCO2e
Scope 3 Emissions:365595 tCO2e
Total Energy Consumption:141620 MWh
Waste Generated:290 tons

ESG Focus Areas

  • Financial inclusion
  • Health concerns
  • Urban concentration/rural decline
  • Low-carbon/decarbonized society

Environmental Achievements

  • Cut greenhouse gas emissions by 3% from fiscal 2020 level
  • Pushed renewable energy utilization rate at key data centers above 10%

Social Achievements

  • Launched Healthcare Passport, a platform that provides health information
  • Improved employee satisfaction ratio to 62%

Governance Achievements

  • Introduced a new management structure to clarify the execution of business activities and the function of governance
  • Established the Nomination Committee and the Compensation Committee to ensure objectivity and transparency in decision-making processes

Climate Goals & Targets

Long-term Goals:
  • Become carbon neutral in 2050
Medium-term Goals:
  • Achieve a stable ROE of 15%
  • Sales of societal issue solution services to exceed ¥50 billion
Short-term Goals:
  • Reduce GHG emissions by 27.5% compared to fiscal 2020 by fiscal 2031
  • Raise the renewable energy utilization rate to 50% by fiscal 2030 for eight data centers

Environmental Challenges

  • High-quality human resources are not secured and developed according to plan
  • Intensification of competition, price competition
  • Overseas business is impacted by various factors, including global economic and foreign exchange trends
Mitigation Strategies
  • Strive to secure talented human resources by providing a corporate culture, HR systems, and an office environment in which a diverse group of people can thrive
  • Constantly analyze the business environment to better grasp customer needs, offer higher value-added services and take other measures to differentiate from competitors
  • Improve the management structure by ensuring coordination between overseas Group companies and business sites and corporate management in Japan

Supply Chain Management

Responsible Procurement
  • Promote the promulgation of guidelines based on its sustainable procurement policies

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Higher electricity charges due to rising temperatures
  • Increased costs due to use of renewable energy
Opportunities
  • Enabling the optimization of urban planning and management systems
  • Contribute to the further expansion of renewable energy

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, GRI, SDGs

Certifications: Platinum Kurumin, Eruboshi (L-Star), ISMS, JIPDEC PrivacyMark

Third-party Assurance: Ernst & Young ShinNihon LLC

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 10
  • Goal 13

Sustainable Products & Innovation

  • PAYCIERGE
  • Healthcare Passport
  • CreditSaaS
  • RoboticBase

Awards & Recognition

  • Grand Prize in Good Career Company Award 2020
  • New Diversity Management Selection 100
  • Four stars in the fourth Nikkei Smart Work Management Survey
  • White Company Recognition

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:426,085 t-CO2e/year
Scope 1 Emissions:513 t-CO2e/year
Scope 2 Emissions:64,157 t-CO2e/year
Scope 3 Emissions:300,905 t-CO2e/year
Total Energy Consumption:139,560 MWh/year

ESG Focus Areas

  • Financial inclusion
  • Health concerns
  • Urban concentration/rural decline
  • Low-carbon/decarbonized society

Environmental Achievements

  • Obtained SBTi certification (June 2021), captured CDP-B score
  • Committed to TCFD, disclosed information based on recommendation (January 2022)
  • Encouraged use of renewable energy
  • Achieved a 27.5% reduction in emissions by fiscal 2031 compared to fiscal 2020

Social Achievements

  • Implemented human rights due diligence in line with Group human rights policy (Plan to disclose results of risk evaluation in first half of 2022)
  • Promote diversity, elevate engagement inside and outside the company
  • Supported the installation of submarine optical fiber cables and provision of services on three inhabited islands

Governance Achievements

  • Responded to revised Corporate Governance Code and prepared disclosure document (Revised December 2021)
  • Drafted Group Taxation Policy (Disclosed April 2022)
  • Streamlined strategic shareholdings (Total disposal: 8 issues; partial disposal: 1 issue; reduced ¥7.5 billion)

Climate Goals & Targets

Long-term Goals:
  • Become carbon neutral in 2050
Medium-term Goals:
  • Reduce GHG emissions in fiscal 2031 by 27.5% compared to fiscal 2020
  • Achieve a 67% reduction of GHG emissions from data centers (as compared with fiscal 2020)
Short-term Goals:
  • Increase renewable energy utilization rate to 50% by fiscal 2030 for eight data centers

Environmental Challenges

  • Unintentional access by children through mobile phones and people becoming financially overextended due to weak financial literacy
  • The value of our services depends on the digital literacy of users, so the results are not equally beneficial
  • Soaring prices of non-fossil fuels have a significant impact on renewable energy prices, and unstable power supply conditions due to repeated power shortages can be a major variable for the data center business
Mitigation Strategies
  • Making very strong efforts to prevent fraudulent payments
  • Disseminating information in a broad and deep way
  • Reevaluating areas that we have taken for granted
  • Considering moving the plan forward and is in the process of formulating new reduction targets in line with the 1.5°C target of the Paris Agreement

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conducts

Climate-Related Risks & Opportunities

Physical Risks
  • Heightened risk due to unusual weather events, including floods
  • Higher costs due to rising temperatures
Transition Risks
  • Rising energy prices
  • Regulations based on regional ordinances
  • Higher costs due to carbon tax
  • Higher costs due to GHG reduction and introduction of renewable energy
Opportunities
  • More opportunities to provide data center services and cloud services to meet needs of low-carbon/decarbonized society
  • Greater need for system upgrades to improve environment for electric power companies and redesign power infrastructure
  • More opportunities to provide IT services and solutions to address new needs related to climate change

Reporting Standards

Frameworks Used: TCFD, SBTi, GRI, UNGC

Certifications: Privacy Mark (JIS Q 15001), ISMS, WCMS

Third-party Assurance: Ernst & Young ShinNihon LLC

Sustainable Products & Innovation

  • Carbony VPP Platform

Awards & Recognition

  • Grand Prize in Good Career Company Award 2020
  • Platinum Kurumin
  • New Diversity Management Selection 100
  • Semi-Nadeshiko Brand
  • DC Excellent Company
  • Telework Pioneers
  • Nikkei Smart Work Management 4.5 stars
  • Bronze in the Pride index
  • Grade 3 Eruboshi (L-Star)
  • Tomonin
  • White Company Recognition
  • Gomez IR Site Comprehensive Ranking 2021
  • Internet IR Commendation Award
  • Homepage Quality Ranking Survey of All Listed Companies

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:518,782 t-CO2e/year (Fiscal 2023)
Scope 1 Emissions:481 t-CO2e/year (Fiscal 2023)
Scope 2 Emissions:53,076 t-CO2e/year (Fiscal 2023)
Scope 3 Emissions:386,392 t-CO2e/year (Fiscal 2023)
Renewable Energy Share:Increased renewable energy use in data centers and offices (Specific percentage not provided).
Total Energy Consumption:143,909 MWh/year

ESG Focus Areas

  • Diversity
  • Work style reforms
  • Human resource development and training emphasizing self-fulfillment
  • Safe, convenient social foundation that supports people and society
  • Connecting with stakeholders and promoting joint activities
  • Reduce environmental impact
  • Continuous quality improvement
  • Information security
  • Safeguarding personal information
  • Corporate governance
  • Compliance
  • Risk management

Environmental Achievements

  • Achieved a 17.8% reduction in GHG emissions (Scope 1 and 2) compared to fiscal 2020.
  • Declared carbon neutrality goal for Scope 1 and 2 emissions by fiscal 2041 and net-zero for Scope 1, 2, and 3 by fiscal 2051.
  • Increased renewable energy use in data centers and offices.

Social Achievements

  • Launched a new HR system with a maximum 17% increase in base salaries.
  • Improved employee awareness survey results.
  • Improved business partner satisfaction survey results.
  • Improved client satisfaction survey results (though still room for improvement).

Governance Achievements

  • Reduced strategic shareholdings to less than 10% of consolidated net assets.
  • Strengthened the Corporate Sustainability Committee by placing it directly under the Board of Directors.
  • Established a Corporate Governance Promotion Department and Investor Relations and Shareholder Relations Office.

Climate Goals & Targets

Long-term Goals:
  • Create Exciting Future by 2026.
Medium-term Goals:
  • Achieve carbon neutrality in Scope 1 and 2 by fiscal 2041.
  • Achieve net-zero GHG emissions across the value chain by fiscal 2051.
  • Become the top-class IT group in the ASEAN region.
Short-term Goals:
  • Reduce GHG emissions by approximately 40% in fiscal 2024 (versus fiscal 2022).
  • Increase DX consultants from 420 to 500 by March 31, 2024.
  • Achieve ¥50 billion in sales from the social issue solution business by the end of March 2024.

Environmental Challenges

  • Aging population and the need for healthcare IT solutions.
  • Supply chain disruptions.
  • Competition in the DX services market.
  • Maintaining profitability in service-style businesses.
  • Securing and developing high-quality human resources.
  • Climate change risks (physical and transition).
Mitigation Strategies
  • Investing in human resources (training, recruitment, compensation).
  • Developing service-style businesses to anticipate client needs.
  • Expanding global operations through strategic alliances.
  • Improving project management capabilities and preventing unprofitable projects.
  • Implementing robust risk management strategies.
  • Promoting renewable energy adoption and GHG emission reduction.

Supply Chain Management

Responsible Procurement
  • Sustainable procurement policy

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Rising temperatures
Transition Risks
  • Rising energy prices
  • Carbon tax
  • Regulations
Opportunities
  • Increased demand for data center services and cloud services.
  • Greater need for system upgrades to improve the environment for electric power companies.
  • More opportunities to provide IT services and solutions to address new needs related to climate change.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 20000

Sustainable Products & Innovation

  • Carbony VPP Platform
  • Healthcare Platform