Sustainability

Environment

Contributing to Address Global Issues including Climate Change and Environmental Pollution

Throughout all areas of our business activities, Sun* Group acts in full consideration of environmental issues, such as prevention of pollution, reduction of greenhouse gas emissions, mitigation and adaptation of climate change, and conservation of biodiversity and ecosystems, based on the thought that each employee, as corporate citizens, should be aware that addressing environmental issues is one of their social responsibilities. In addition, we make efforts to reduce our environmental burden by reducing waste, promoting energy and resource conservation, and conducting corporate activities based on the risks and opportunities that climate change imposes on the business environment.

Response to TCFD Recommendations

In order to understand the risks, opportunities, and impacts of future climate change on our business activities, Sun* Group conducted an analysis of projected changes in the external environment in accordance with the framework proposed by the TCFD*1 (Task Force on Climate-related Financial Disclosures). As a result, we recognize that there are significant opportunities in our business domain, such as further increase in DX demand, while risks are relatively small. We will continue to explore the possibility of expanding our business domain with regard to opportunities, while minimizing risks while also assessing cost-effectiveness.

※1 TCFD：A task force established by the Financial Stability Board (FSB), which includes representatives of central banks and financial supervisory authorities from major countries and regions around the world. An international initiative aimed at stabilizing financial markets by providing support to companies disclosing information on climate change and facilitating a smooth transition to a low-carbon society.

(1) Governance

This company, the Board of Directors deliberates on social issues, including issues related to climate change, and the Board of Directors determines material issues and response guidelines. The status of responses to material issus, including climate change related issues, is reported to the Board of Directors once a year, and is monitored under the direction and advice of the Board of Directors.

(2) Strategy (Risks and countermeasures based on scenario analysis)

The following table shows the major risks and opportunities that we identified and considered based on our scenario analysis, their impact on our business performance, and the countermeasures we have taken. For the scenario analysis, two scenarios were set from the available climate change scenarios.

2°C scenario

A society in which policies and technological innovations to limit the average temperature increase to less than 2°C by the end of the century on a global scale, social changes associated with the transition to a decarbonized society are likely to affect business, and transition risks and opportunities are likely to materialize.

4°C scenario

No action is taken to address climate change, and average temperatures rise by about 4°C by the end of the century. Assumption of a society in which the increase in natural disasters, etc. caused by the rise in temperature is likely to affect business, and physical risks and opportunities will become apparent.

(3) Risk Management

The "Risk Management Committee" recognizes and identifies risks that must be addressed in the course of business activities and discusses priority countermeasures. The Risk Management Committee is chaired by the President and consists of members appointed by the Chairman, and meets quarterly.

(4) Indicators and Targets

As part of our response to climate change, we will strive to reduce our greenhouse gas emissions. We measure and disclose our greenhouse gas emissions and promote energy efficiency improvements. We are currently discussing CO2 reduction targets in Scope 1 and 2. We will prepare for the creation of indicators for our mid- to long-term CO2 reduction targets, including the contribution to the reduction of greenhouse gas emissions throughout the value chain.

Please refer to the following for the year-to-year results of the indicators we are measuring.

		Scenarios	Risks to our company	Impact	Countermeasures
Transition Risk	Policy & Regulation Risks	Introduction of carbon tax	Increased tax burden due to carbon tax	Small	Reduction in GHG emissions
	Market Risks	Increase in renewable energy prices	Increased costs associated with renewable energy procurement	Small	Cost reduction through diversification and optimization of electricity and other procurement sources
	Reputation risk	Acceleration of ESG investment	Difficulty in obtaining financing from financial institutions and investors if climate change measures are regarded as insufficient	Small	Enhancement of information disclosure and appropriate dialogue with financial institutions and investors
Physical Risk	Acute Risk	Severe natural disaster	Data center down Damage to offices and employees	Medium	Strengthen business continuity plan (BCP) (including diversification of risk of facility damage and promotion of remote response)
Opportunities	Products/Services	Acceleration of DX	Increase in DX demand	Large	ー

Climate Change Mitigation Initiatives

Since our establishment, Sun* Group has been actively recruiting every year, and has hired many employees with experience or potential in value creation by utilizing digital technology and creativity. The Group continues to commit to securing talent capable of engaging in Digital Transformation and value creation in all industries, as well as continuously expanding job opportunities.

Promotion of "Paperless"

We continue to contribute to the reduction of greenhouse gas emissions by significantly eliminating the use of paper for in-house work through vigorous digitization of internal operations. We are also committed to reducing unnecessary use of paper in society through digitization of our clients' businesses.

Conservation of Energy

We have been promoting flexible work styles that are not bound to the office since our establishment, and we strive to reduce the use of electricity in the office through efforts including remote work.

In regard to society, we actively support clients in the mineral resources and energy industry. We address environmental issues we cannot resolve on our own by forming alliances with our clients to provide knowledge on digitalization.

Trend of Our Environmental Performance Indicators

	2019	2020	2021	2022	2023
SCOPE1 (kg-CO2)	0	0	0	0	0
SCOPE2 (kg-CO2)	40,683	40,551	39,049	54,164	46,992
Total of SCOPE 1, 2	40,683	40,551	39,049	54,164	46,992
Electricity usage (kwh)	78,3993	87,228	102,059	148,141	128,994
Carbon Intensity	898	756	574	504	376

* Subjects are the Group's four domestic corporations
* SCOPE1 is the amount of carbon dioxide emitted from the direct use of gas in the office.
* SCOPE2 is the amount of carbon dioxide emitted from electricity use in the office.
* CO2 emission coefficients for each year are calculated using the latest publicly available figures at the time of compilation.
(The following are the values for each location at the time of calculation for the fiscal year ending December 31, 2023)
・OTEMACHI：0.441kg-CO2/kwh
・AKASAKA：0.453kg-CO2/kwh
* Kanda and Ryogoku will occur until May 2022, Otemachi from June 2022
* Carbon Intensity calculated as CO2 emission volume/consolidated sales (100 million yen）