Climate change response

In order to contribute to achieving the goals of the Paris Agreement on climate change, an international framework, we have set our own goals to address climate change and will actively take initiatives to reduce greenhouse gas emissions through our business.

In addition to reducing direct greenhouse gas emissions from our own activities, we will achieve this by providing a wide range of services that contribute to reducing environmental impact through our proprietary technologies, thereby increasing the effectiveness of reducing greenhouse gas emissions in society as a whole.

Indicators and Targets

We have selected greenhouse gas (GHG) emissions as a measure of climate change and disclose our performance for Scope 1-3 of the GHG Protocol. In addition, we have set the following goals to reduce risks and create new opportunities for climate change:

Scope1&2Reduce GHG emissions to 0 by 2030: For Scope 1 & 2, reduce GHG emissions from in-house operations to zero (net) by converting 100% of electricity consumption to renewable energy.
Scope3Reduce GHG emissions to 0 by 2030: Reduce indirect GHG emissions from Scope 3 business activities to zero (net) by contributing to the reduction of environmental impact through the provision of our products and services.

GHG emissions results		Unit	2020	2021	2022
Scope1	Direct GHG emissions	t-co2	4	6	8
Scope2	Direct GHG emissions	t-co2	1,275	1,232	873
Scope3	Direct GHG emissions	t-co2	4,373	3,734	5,297
Total emissions		t-co2	5,652	4,973	6,178
	Scope 3 breakdown:
	Category 1: Products and services purchased	t-co2	3,948	3,071	4,541
	Category 2: Capital finance	t-co2	110	364	93
	Category 5: Waste from business operations	t-co2	4	0	0
	Category 6: Business trips	t-co2	133	130	455
	Category 7: Employer commuting	t-co2	179	169	208

Governance structure

We have established the Sustainability Promotion Committee as an organization to evaluate and monitor our policies and initiatives to achieve our climate change-related goals. The CEO and other members of management are involved in the development of climate change strategies and report their efforts to the Board of Directors.

Strategy

The risks and opportunities we face in relation to climate change were assessed by the relevant departments and the Sustainability Promotion Committee for the timing of their manifestation and their impact on our business, and then we identified risks and opportunities of particular importance.
We recognize the following as important transition and physical risks and opportunities related to climate change:

Type of risks/opportunities			Time of manifestation	Impact on business	Response policy
Transition risks	Policy & regulations risks	Increased operational costs associated with the introduction of policies and stricter regulations regarding the control of GHG emissions	Short	Small	Establish a disclosure management system and expand efforts to reduce GHG emissions from business activities
	Technical risks	Decrease in product value centered on environmental aspects due to delays in developing environmentally friendly technologies and solutions	Mid	Mid	Improvement of energy-saving performance in products and services Increase earnings by developing solutions that contribute to reducing environmental impact and expanding the scope of offerings
	Market risks	Deemed to have begun to increase customer awareness of environmental issues.	Mid	Mid	Expand investment and development of environmentally friendly products and services
	Reputation risks	Decline in the Company's external reputation due to lack of information disclosure	Short	Mid	Improvement of disclosure management system and enhancement of disclosure
Physical risks	Acute risks	Suspension of operations of a business location due to a sudden disaster Stagnation of business, including servers and mailings, due to supply chain damage	Short	Small	Business Continuity Plan (BCP) measures (including crisis response manuals) at each site Establishment of a remote work system Conducting drills (workshops) for each possible event Establish environment such as downloadable shipments and remote support
	Acute risks	Suspension of operations at a business location due to the spread of an infectious disease or other illness	Mid	Mid	Business Continuity Plan (BCP) measures (including crisis response manuals) at each site Establishment of a remote work system
	Chronic risks	Suspension of operations at business locations due to chronic climate change (e.g., sea level rise, temperature rise) Impact of rising temperatures on employee health	Mid	Mid	Business Continuity Plan (BCP) measures Establishment of a remote work system (e.g., measures against heat stroke, promotion of efforts to reduce physical inactivity)
Opportunities	Resource efficiency	Reduction of GHG emissions through higher efficiency in production and transportation Establish a business continuity environment in the event of a disaster through remote work with paperless operations	Mid	Mid	Development of products suitable for resource conservation Promote development of production and transportation efficiency technologies Procurement to reduce plastic waste (promotion of green procurement)
	Energy conservation	Lower procurement costs due to generalization of renewable energy	Mid	Small	Prepare for future increases in fossil fuel costs (because fossil fuels may be expensive) Expand renewable energy use
	Products & services	Increased demand for products and solution services that contribute to environmental friendliness in line with diversified and increased customer awareness of environmental issues	Mid	Mid	Expansion of earnings through development of products and solutions for reducing environmental impact (e.g., paperless, GHG emission reduction, monitoring through visualization), and development of new markets.
	Market	Enhance corporate image by promoting disclosure of climate-related information	Mid	Mid	Improvement of disclosure management system and enhancement of disclosure

Risk Management

Regarding our risks and opportunities in climate change, the office of the sustainability committee conducts an annual company-wide risk identification with the relevant departments.

The policy for responding to the selected important risks is reviewed on an annual basis by the office of the sustainability committee and relevant departments and is identified after discussion by the Sustainability Committee, which includes the management team.

The results of the above risk assessment are then reported by the office of the sustainability committee to the risk management department, which is responsible for company-wide risks, and to the risk and compliance committee.

1 The office of the sustainability committee identifies risks and opportunities related to climate change with relevant departments
2 The office of the sustainability committee selects important risks with the relevant departments, and reviews the policies
3 The Sustainability Committee discusses and identifies risks and response policies
4 The office of sustainability committee reports the results to the risk management department, which oversees company-wide risks, and to the risk and compliance committee.

Visualizing GHG through the power of data

WingArc1st visualizes GHG to respond to the climate crisis and aims to contribute to the decarbonization of society as a whole through the power of data.

https://www.alterna.co.jp/51932/