environment

Governance

Attitude towards addressing climate change

Our group's group purpose isSustainable growth for more companiesTo achieve this goal, we are advancing our response to climate change based on the revised Basic Environmental Policy established in 2023.

Governance System

Our group has a representative director as its highest-ranking officer.SustainabilityExecutive in charge,SustainabilityCentered around the Promotion Office,Funai Consulting Inc.In collaboration with other organizations, we assess and manage the financial impacts of climate change risks and opportunities on our business, and we are working on environmental basic policies, GHG emission targets, and promoting, managing the progress of, and disclosing various responses.SustainabilityThe Promotion Office is an advisory body to the Board of Directors, responsible for reviewing and monitoring the progress of the matter.SustainabilityIt will be reported to the committee and discussed.SustainabilityThe results of the committee's deliberations are reported to the Board of Directors as appropriate, and monitoring is conducted.SustainabilityThe Promotion Office has established four themed promotion groups (Environment, Human Capital, Information Security, and Business), and meetings are held monthly.SustainabilityAt the project management office meeting, the entire group discusses the progress of the activities and future initiatives.

[Governance Structure Diagram]

[Defining Roles in the Governance System]

strategy

Business Strategies in the Face of Climate Change

Our group's group purpose isSustainable growth for more companiesTo realize our vision of "...", we will expand our business to a system that can provide end-to-end services to address the management challenges of companies, and our group vision is to become a "mid-sized company..."Mid-market leaders・Rising starsWe aim to be a comprehensive X (Transformation) consulting group centered on businesses.

Furthermore, based on "5. Initiatives through Business Activities" of our Basic Environmental Policy, our group is committed to reducing environmental impact not only within our own group's activities but also through consulting and services, working together with our customers to address climate change, prevent environmental pollution, and promote resource recycling.

Risks and opportunities

Our group is committed to understanding the impacts of climate change risks and opportunities, and is implementing the necessary strategies to realize a sustainable society.

【risk】

classification		Risk assessment	Main countermeasures
Transition risks	market	Climate change and for society as a whole and for our clients Increased awareness of decarbonization	Amid growing societal concern over climate change, our group's main clients, small and medium-sized enterprises (SMEs), are also shifting towards decarbonization and environmentally conscious management. In this context, our group provides consulting services, including decarbonization support.
	reputation	Decreased reputation among stakeholders and reduced trading due to insufficient explanation.	With demands from stakeholders such as clients and investors rapidly increasing regarding climate change, a passive or delayed response by our company could risk damaging our brand and lowering our social standing. Furthermore, we anticipate a risk of increased difficulty in attracting talent due to the growing sense of crisis among younger generations regarding climate change.
Physical risks	acute	Increased risk of economic stagnation due to the intensification of natural disasters and floods. Risks of data loss, etc., due to damage to business premises.	If our group's offices suffer physical damage or disruptions to transportation networks, it will affect our face-to-face consulting business, and ensuring the safety of our group employees will be essential. We have implemented a safety confirmation system. Furthermore, due to the risk of data loss (support recipient data, personal data) in the event of damage to our facilities, we are working with the Information Security Management Department and the Risk Management Committee to strengthen our system infrastructure.

【opportunity】

classification		Risk assessment	Main countermeasures
opportunity	Products and Services	Provision of environmentally friendly services	From society, the market, and clientsSustainabilityAs interest in this issue grows, we anticipate an increase in the demand for consulting services from our group. Our group will expand our consulting services, which are tailored to each industry, to include services that take climate change and environmental considerations into account. Initiatives of each company 【Funai Consulting Inc.】 - ZEB/ZEH construction business in the housing and real estate sector • TCFD compliance by carbon neutrality support group • CDP response • SBT certification • Decarbonization roadmap development • Carbon neutrality support solutions Decarbonization managementManagement workshops*Event *For business leaders promoting carbon neutral managementSustainabilityMembership-based study group for those in charge [Funai Research Institute Logistics (from January 2026,Funai Soken Supply Chain Consulting Inc.(Company name changed to) - Distribution of a guide to implementing ESG practices in logistics. - Support for implementing ESG logistics

The risks and opportunities described above will be addressed by the Risk Management Committee, as described later.SustainabilityWe will report and share this information with the committee, and we will work to consider and implement appropriate measures.

Funai Research Institute's Initiatives

Offering carbon neutrality management support and sustainable management support menus.

We provide sustainable management support to listed companies, including assistance with international initiative compliance (TCFD compliance, CDP responses, SBT certification), and development of decarbonization management roadmaps and reduction of GHG emissions for medium-sized and large companies.

Seminar on developing new business models in the decarbonization market

Funai Research Institute is supporting small and medium-sized enterprises (SMEs) in their decarbonization efforts by holding seminars on decarbonization-related topics tailored to specific industries. These seminars cover industry trends in response to the transition to a low-carbon society, and provide industry-specific solutions based on concrete success stories.

Regular study sessions to promote carbon-neutral management

Funai Research Institute offers a membership-based study group for managers and sustainability officers of small and medium-sized enterprises called "Decarbonization Management."Management workshopsWe launched this organization in August 2022. It serves as a platform where the latest information from all over Japan is gathered, covering everything from CO2 emission calculations and specific reduction methods to lectures by special guest speakers, information exchange among members, and commentary on current trends by expert consultants.

Publication of a book on carbon neutral management

In December 2022, Funai Research Institute published a book for managers and sustainability officers of small and medium-sized enterprises (SMEs) explaining how to approach decarbonization management. The book includes information on the meaning of decarbonization, specific approaches, case studies, and other know-how for decarbonization management.

Funai Research Institute Logistics' Initiatives (Funai Research Institute Logistics will begin operations in January 2026)Funai Soken Supply Chain Consulting Inc.(The company name has been changed to "[new name]".)

Development of ESG logistics for logistics companies and logistics departments

Funai Research Institute Supply Chain Consulting Co., Ltd. offers comprehensive support services for the introduction of ESG logistics aimed at reducing environmental and labor burdens in logistics operations. Based on the results of the implementation assessment, logistics consultants analyze progress and challenges, consider strategies, and provide support for the implementation of ESG logistics.

Future initiatives

As part of our support for decarbonization management for small and medium-sized enterprises (SMEs), in addition to our efforts in providing solutions tailored to various industries, such as ZEH (Zero Energy Housing), we are now also promoting a new decarbonization management diagnostic service in cooperation with financial institutions. Moving forward, starting with the decarbonization management diagnostic service, we will provide support for calculating Scope 1, 2, and 3 GHG emissions, developing a roadmap for achieving decarbonization management based on GHG emission data, and implementing decarbonization management at the operational level.Management workshopsWe also plan to launch a new membership organization aimed at decarbonization management. Currently, decarbonization management presents significant hurdles for medium-sized and small businesses, but we will continue to support them, as we believe that pursuing social responsibility will lead to increased profitability and corporate value.

Risk Management

Approach to climate change

Based on "6. Dialogue and Information Disclosure" of our Basic Environmental Policy, we are committed to working towards the continuous improvement of global environmental issues, including climate change, through information disclosure and dialogue with stakeholders.

Management system

Our group recognizes that identifying, assessing, and managing business risks that affect corporate management and business continuity is a crucial issue, and our Risk Management Committee appropriately manages them and implements countermeasures. Furthermore, risk management in climate change countermeasures isSustainabilityThe committee is in charge and works in cooperation with the Risk Management Committee.

SustainabilityThe committee, primarily the Environmental Management Group, reports on the results of risk assessments and risk analyses conducted regularly and in response to changes in the internal and external environment. Risks deemed to require countermeasures against environmental risks are shared with the Risk Management Committee, which is the secretariat.SustainabilityThe Promotion Office submits a report to the Board of Directors. The Board of Directors then evaluates the relationship with other risks, decides on the necessary countermeasures, and implements them.

Indicators and targets

In the newly established Medium-Term Management Plan 2026-2028,SustainabilityOur target is to reduce GHG emissions (Scope 1 and 2) by 75% compared to fiscal year 2019. Furthermore, we aim to achieve carbon neutrality by 2030, and will promote initiatives including a 100% renewable energy procurement rate at our domestic business sites.

Reduction measures

Procurement of renewable energy

By 2030, we aim to achieve a 100% renewable energy procurement rate at our domestic facilities, thereby realizing net-zero Scope 2 emissions.

Scope 2 (electricity use) emission reduction

To achieve our 2030 target, we are proceeding with the switch to renewable energy plans at each of our business locations, and the ratio of renewable energy procurement to total electricity consumption has progressed as follows: (FY2021: approximately 13.4%, FY2022: 22.8%, FY2023: 24.1%, FY2024: 21.9%)

Future RE100 (In our case, because the scale of our electricity usage is small, RE In light of our membership in Action, we will adopt electricity plans that utilize additionality-based, trackable non-carbonized stone certificates (limited to the environmental value of renewable energy power plants built within the last 15 years) for electricity derived from renewable energy sources.

Reduction of GHG emissions

Promoting in-house education and awareness-raising regarding climate change and waste management.

To ensure that our efforts regarding climate change and waste reduction are implemented throughout the entire group, we launched a "Climate Change and Waste Management Training" program in fiscal year 2026, using original content tailored to the specific characteristics of our business. The participation rate in May 2026 was 99.1% (for all group employees, with 1,745 participants).
We will continue to provide ongoing education to deepen each employee's understanding of environmental issues and translate that understanding into concrete actions.

Scope 3 Cat.1 (Reducing emissions from purchasing copy paper, printing and mailing direct mail for seminars)

We will promote paperless operations by further advancing digitalization. In the medium to long term, we will seek the understanding of our suppliers and consider promoting environmentally friendly printing and adopting environmentally conscious postal and logistics companies.

Furthermore, we will implement emission calculations based on primary data, rather than on unit intensity.

(For your reference)

Paper usage (office paper) *Converted to 4g per A4 sheet
2019 figures: 35 tons.➡2024 figures: 10 tons.

Scope 3 Cat.6 (Business Trip) Funai Research Institute Business Trip Expenses

Due to the rapid increase in remote work since 2020 as a measure against COVID-19, the number of employees compared to 2019 was on a downward trend. Currently, we are maintaining the quality of communication with customers by appropriately combining remote work and business trips.

Capital expenditures related to environmental measures

Our group calculates shadow costs as expenditures related to environmental measures in order to visualize the effects of environmental considerations in our business activities. Key shadow costs include the installation of telephone booths to reduce the environmental impact of employee travel such as business trips, the installation of dual monitors to promote paperless operations, and the reduction or avoidance of the impact on service quality of remote work as an alternative to business trips.Management workshopsI believe this includes things like the development and use of databases. Going forward, we will continue to improve the accuracy of visualizing the effects of environmental considerations in our business activities through the calculation of shadow costs.

Main Shadow Costs
- Installation of telephone booths: Approximately 49 million yen (2024, Tokyo Head Office (Yaesu) and Osaka Head Office)
- Dual monitor setup: Approximately 7 million yen (2023-2024, same as above)
・Management workshopsDatabase: Approximately 58 million yen (2018-2025, ManagementManagement workshopsBy providing member companies with this text as a database, we have made it possible to digitize text that was previously printed on paper.

Initiatives to collaborate with external parties and promote efforts to reduce pollution, waste, and resource use.

● Signing the United Nations Global Compact (GCNJ) (starting in 2023)

I participate in the GCNJ Environmental Management Subcommittee and the GCNJ Circular Economy Research Subcommittee, striving to gather information and collaborate with external organizations (Funai Research Institute, Carbon Neutral Team).

●Regarding waste management, our goal is to implement continuous monitoring and maintain a recycling rate of 50% or higher. In fiscal year 2024, the recycling rate reached 62%.

Funai Research Institute Group ESG Data (Environment):https://hd.funaisoken.co.jp/sustainability/#evaluation

● Reducing environmental impact through trial use of reusable cups, raising employee awareness, and collaborating with companies (chemical manufacturers) located in our Tokyo headquarters (Yaesu).

「SustainabilityIt has become commonplace (SustainabilityAs a new initiative related to "built-in" features, we conducted a trial use of reusable cups.

(Implementation period) A trial period of approximately one month, from October 1st to 30th, 2024, with nearly 200 users per day.

(Objective) To reduce environmental impact by reducing the use of disposable cups, to raise reuse awareness among group employees, and to verify the challenges and effects of introducing reusable cups (by conducting a survey).

◾ Actual reusable cup used for trial

Capacity: 360ml
Weight: 86g
Size: Diameter 95mm, Height 130mm, Base Diameter 60mm
Available hot or cold.