WILL GROUP

Initiatives for the Environment

Environmental policies

In order to sustainably and safely protect the global environment, through reduction of energy use, the Group will proactively take efforts toward addressing climate change, reuse of resources and the conservation of biodiversity.

Initiatives for addressing climate change

Targets

The Group has established a target to “reduce total CO2 emissions by 20% by the fiscal year ending March 31, 2031, compared with the fiscal year ended March 31, 2020.”

This applies to not only the CO2 emitted from the offices, but also CO2 from employee’s business activities and through the service’s entire life cycle. We will perform wide-ranging activities to prevent global warming while working with clients, business partners, and employees.

Initiatives related to Task Force on Climate-related Financial Disclosures (TCFD) Recommendations.
Initiatives for the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Our approach to climate change, organized by the four core elements, Governance, Strategy, Risk Management, Metrics and Targets, advocated by the TCFD, is as follows.

1. Governance Disclosure of the organization’s governance as it relates to climate-related risks and opportunities
  • a) Describe the Board of Directors’ system of oversight for climate-related risks and opportunities
 A Sustainability Committee chaired by the President and Representative Director has been established, and meets at least twice a year.
The President and Representative Director deliberates and investigates general matters of sustainability, including climate change problems, with the Sustainability Committee. Overall plans, issues that should be addressed, and the state of progress in such issues are overseen and supervised by the Board of Directors in the form of reports or agenda items submitted to the Board of Directors at least once a year.
A chart showing the structure of the Sustainability Committee can be seen here.
  • b) Describe the role of management in assessing and managing climate-related risks and opportunities
 The President and Representative Director assumes overall responsibility for promoting sustainability within the Group, including goals and objectives associated with climate change-related risks and opportunities.
The Sustainability Committee chaired by the President and Representative Director is responsible for submitting reports or agenda items on general sustainability matters, including climate change, to the Board of Directors at least once a year.
2. Strategy Disclose actual and potential impact of climate-related risks and opportunities on the organization’s business, strategy, and financial plans, where material
  • a) Describe climate-related risks and opportunities identified by the organization over the short, medium, and long term
 Refer to Table 1: Risks and opportunities in the climate change issue
  • b) Describe the impact of climate-related risks and opportunities on the organization’s business, strategy, and financial plans
  • c) Describe the resilience of the organization’s strategy, taking into account a variety of climate change scenarios, including a 2℃C or lower scenario
3. Risk Management Disclose how the organization identifies, assesses, and manages climate-related risks
  • a) Describe the processes by which the organization identifies and assesses climate-related risks
 Information on climate-related problems is reported to the Sustainability Committee.When the Sustainability Committee considers such matters, it submits agenda items to the Group Management Committee, if required, after taking into account the severity of risks, etc.
The President and Representative Director oversees risk control for the entire company, including risks related to climate change.The President and Representative Director hypothesizes and categorizes specific risks in advance, puts in place emergency structures and structures for the prompt and appropriate transmission of information, and works with the Compliance Committee to assess and oversee the status of management for the day-to-day risks of each department.
  • b) Describe the processes by which the organization manages climate-related risks
  • c) Describe how the organization’s processes for identifying, assessing, and managing climate-related risks are integrated into the overall risk management of the organization
4. Metrics and Targets Disclose the metrics and targets used to assess and manage climate-related risks and opportunities, where material
  • a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in accordance with its own strategy and risk management processes
 The Group has established a target to “reduce total CO2 emissions by 20% by the fiscal year ending March 31, 2031, compared with the fiscal year ended March 31, 2020.”
  • b) Disclose Scope 1, Scope 2, and, where relevant, Scope 3 GHG
 Refer to Table 2: Data on CO2 emissions
  • c) Describe the metrics used by the organization to manage climate-related risks and opportunities, and performance against those targets

Risks and opportunities in the climate change issue

Table 1: Risks and opportunities in the climate change issue

Important risk and
opportunity items		 Specific example Scenario Financial impact Main response policies
4℃ 2℃
Transition
risks		 Policies and laws and regulations Increase in GHG emission prices Increase in electricity costs due to introduction of carbon taxes – Small
  • Elimination and consolidation of branches
  • Introducing flexible workstyles including telework
  • Initiatives to reduce electricity use (CoolBiz/WarmBiz)
  • Switching all company vehicles to eco-cars
Mandating emissions reporting Increase in operating costs (monitoring costs, third-party organization inspection costs) – Small
  • Seeking monitoring methods using DX
Evaluation Increase in concern or negative feedback from stakeholders Decrease in employee retention rate.Getting undervalued, with decreased ability to attract customers – Small
  • Disclosure of initiatives to combat environmental issues such as climate change (sustainability initiatives disclosed on our website)
  • Business operating companies to engage in PR for environmental activities
Physical
risks		 Acute Severe increase in extreme weather conditions such as cyclones and flooding When health and safety cannot be maintained and conditions preventing work continue, earnings are lost, and costs increase Large Large
  • Organizing our emergency disaster response and our reporting line
  • Disaster response communication network (safety confirmation communications)
  • Distributing disaster pocket manuals
  • BCP/BCM formulation
  • Implementing disaster response training
Chronic Rising average temperatures Reducing earnings and increased costs due to negative effects on the labor force Small Small
  • Further promotion of workstyle reforms
  • Changing over to electricity produced form natural energy, etc.
  • Considering relocation to office design with highly efficient air-conditioning, ZEB-compliant building, etc.
Opportunities Resource efficiency Use of more efficient transportation methods (modal shift) With the promotion of changing workstyles, reducing CO2 used in transportation and reducing resources through the transition to paperless – Small
  • Establishment of work from home system
  • Company-wide application of online meetings and chat tools
  • Accelerating the shift to telework through the digitalization of operations, including digital contracts
Transitioning to high-efficiency buildings Implemented health and safety policies, boosting employee satisfaction.Reductions in GHG-related costs and operating costs – Small
  • Researching ZEB-compliant buildings and running simulations
  • Implementing regular surveys using questionnaires
Products and
services		 Developing and expanding low-emission products and services Increase in demand for online services – Small
  • Introducing online interviews
  • Development of environmentally friendly services
  • Digitalization of paper materials within the Company
Changes in customer preferences Customers choose us over competitors because of our decarbonization initiatives – Small
  • Proactive initiatives for addressing climate change
  • Proactive information disclosure on our climate change initiatives

Preconditions for scenario analysis

The Group has analyzed the impact of climate change-related risks and opportunities on its business using multiple scenarios (2.0℃, 4.0℃), in accordance with the TCFD framework.

Scenario ≪2.0℃ scenario≫
World view: a world in which various measures have been taken to achieve low-carbon societies
Assumptions: regulations have been strengthened, the shift towards low-carbon/decarbonized societies has progressed, and transition risks have increased
Measures: introduction of carbon taxes, and aggressive promotion of energy-saving and renewable energy measures.Companies required to achieve significant reductions in CO2 emissions.
≪4.0℃ scenario≫
World view: a world in which various measures have not been taken to achieve decarbonized societies (business as usual)
Assumptions: increase in physical risks as a result of abnormal weather and other factors
Measures: energy-saving and renewable energy measures are not aggressively promoted (carbon taxes have not been introduced)
Scope WILL GROUP, INC. and wholly owned subsidiaries in Japan
Period to which scenario applies Impact as of March 31, 2031
References IEA WEO 2019, Ministry of Land, Infrastructure, Transport and Tourism “Recommendations for Flood Control Plans that Take Climate Change into Account,” Ministry of the Environment, Japan Meteorological Agency, others

Trends in CO2 emissions

Based on the “Green Value Chain Platform” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry, we calculate Scope 1 and 2 CO2 emissions at WILL GROUP, INC. and wholly owned subsidiaries in Japan.

Starting with the disclosure for the fiscal year ended March 31, 2023, we have reviewed the companies corresponding to Scope 1 and 2 and items to be included in the calculation, and also added Scope 3.

The emission sources applicable to each Scope are as follows.

  • Scope 1: CO2 emissions from direct use of gas and gasoline
  • Scope 2: CO2 emissions through the use of electricity in offices
  • Scope 3: CO2 emissions of Category 6 (Business Travel) and Category 7 (Employee Commuting)

CO2 reduction targets through the fiscal year ending March 31, 2031 and results (CO2 total emissions Scope 1 + 2 + 3)

CO2 reduction targets through the fiscal year ending March 31, 2031 and results (CO2 total emissions Scope 1+2)
CO2 reduction targets through the fiscal year ending March 31, 2031 and results (CO2 total emissions Scope 1+2)

Table 2: Data on CO2 emissions

Item FY3/20
(actual)		 FY3/24
(actual)		 FY3/25
(medium-
term
target)		 FY3/31
(long-
term
target)
CO2 emissions
Scope 1		 343.1 269.9 308.8 274.5
CO2 emissions
Scope 2		 772.2 557.9 695.0 617.8
CO2 emissions
Scope 3		 851.7 654.4 766.5 681.4
CO2 emissions
Scope 1+2+3		 1,967.0 1,482.2 1,770.3 1,573.6

Units: t-CO2/year

Initiatives for the conservation of biodiversity

The Group will consider support for environmental protection organizations.

Sustainability