ENVIRONMENT

The INTAGE Group is committed to adapting to the impact of climate change on its business and to reducing the environmental impact that is associated with corporate activities.
In addition to reducing the amount of electricity used, we are reducing the amount of CO2 emissions in offices by improving the efficiency of our work environment and promoting energy-saving activities. We are also working to reduce paper usage, recycle the used paper, and promote green purchasing.
In addition, we are promoting initiatives based on the Task Force on Climate-related Financial Disclosures (TCFD) and striving to enhance disclosure.

INTAGE GROUP ENVIRONMENTAL PROTECTION POLICY

1．

We make efforts for global environmental conservation activities continuously by positioning an environmental management system as one of our total management systems.

2．

We aim for resource saving and energy saving by minimizing the use of resources. Especially, we endeavor to use less paper by digitalizing information as much as possible and utilizing IT equipment.

3．

We endeavor to preferentially use environmentally-friendly or recyclable resources for those required for our business activities (such as facilities, materials and equipment), and to minimize the final disposal volume of waste by waste sorting to pursue the possibility of reuse.

4．

We ensure the penetration of global environmental conservation activities, and conduct continual and scheduled education and training.

RESPONSE TO THE TCFD RECOMMENDATIONS

GOVERNANCE

Structure to Promote Climate Change Initiatives

The Sustainability Committee, which is chaired by a director of the Company, was established in the fiscal year ending June 2024. The committee meets monthly and discusses action on climate change as one of its themes. Specifically, the committee monitors the impact that climate change has on the Company's business, calculates greenhouse gas emissions due to business activities and considers measures to achieve emission reduction targets set forth in the 14th Medium-Term Management Plan. As needed, topics considered by the Sustainability Committee are elevated to the Board of Directors, which fulfills a decision making function relating important management matters.

STRATEGY

Climate Change Risks and Opportunities

The Company interviews core companies in all disclosable segments from the perspective of the risks and opportunities that climate change poses to the Company's business. Following discussion by the Board of Directors, transition risks (mainly based on the 1.5℃ or 2℃ scenarios), physical risks (mainly based on the 4℃ scenario) and opportunities are identified.

Our business activities have B to B characteristics centered on the Internet industry that handles data, so the direct impact of climate change is limited. On the other hand, indirect impact on our business will be relatively large due to the impact on business activities of our client companies. For example, opportunities such as "changes in society and consumer awareness due to climate change will create new research demands in client companies" are expected.

Going forward, we believe that we will be able to achieve sustainable and further growth by minimizing risks and taking advantage of opportunities by considering and promoting various initiatives to address climate change.

The identified risks and opportunities are described below.

Climate change risks and opportunities

METRICS AND TARGETS

GREENHOUSE GAS EMISSIONS OF THE INTAGE GROUP

Roughly half of the Group's greenhouse gas emissions are due to office and data center electricity usage which constitutes Scope 2 emissions. Scope 1 through Scope 3 emissions at major domestic sites are calculated and disclosed on the Company website.

Scope 1 and Scope 2 Emissions

In FY2022, electricity usage at some offices increased due to higher office usage reflecting the COVID-19 pandemic coming to an end. However, improvements in energy efficiency were made at the Hibarigaoka Office, which has high energy usage, and due to reductions in electricity usage and other achievements, total Scope 1 and Scope 2 emissions were reduced.

Scope 3 Emissions

We have been calculating Scope 3 emissions since FY2021. Category 1 emissions (emissions related to purchased goods and services) account for roughly half of Scope 3 emissions. In FY2022, Category 6 emissions (emissions from business travel) increased chiefly due to an expansion of the companies subject to emissions calculations.

Greenhouse gas emissions of the INTAGE Group

* Scope1: Direct emissions from use of fuels such as gasoline and diesel.
* Scope2: Indirect emissions from use of purchased electricity.
* The data is calculated from July of the current year to June of the following year.
* Boundary of data: Akihabara, Hibarigaoka, Higashikurume, Osaka, Nagano, Ikebukuro, Ochanomizu
* The Ochanomizu office was opened on fiscal 2014.
* Units of heat produced and the emission factors are calculated using the standards found in the "Act on the Rational Use of Energy" and "Act on Promotion of Global Warming Countermeasures."

‹Scope3›
Calculated based on the Ministry of the Environment's Basic Guidelines for Calculating Greenhouse Gas Emissions Through Supply Chains. The calculation methods for the main categories are as follows.
・Category 1 (purchased products and services): Calculated by multiplying the purchase volume or purchase price for each product or service (copy paper, stationery, software, data cloud services, etc.) by the emissions unit value (regarding to some data cloud services, emissions are calculated independently by the service provider.).
・Category 3 (upstream processes (mining, refining, etc.) of fuel and electricity used in Scope 1 and 2): Calculated by multiplying the amount of each energy consumption by the emissions unit value (Business sites covered: Akihabara, Hibarigaoka, Higashikurume, Osaka, Nagano, Ikebukuro, Ochanomizu).
・Category 5 (waste generated from business): Calculated by multiplying the amount of waste processing entrusted for each type of waste (waste paper, waste plastic, metal scrap, etc.) by the emissions unit value (Business sites covered: Akihabara, Hibarigaoka, Ochanomizu).
・Category 6 (business trips): Calculated by multiplying the amount of business travel expenses by the emissions unit value for each mode of transportation (Companies covered: INTAGE HOLDINGS, INTAGE, INTAGE Healthcare, INTAGE TECHNOSPHERE *INTAGE and INTAGE TECHNOSPHERE have been calculated since fiscal 2022).
・Category 7 (commuting): Calculated by multiplying the amount of commuting expenses by the emissions unit value for each commuting method (Companies covered: INTAGE, INTAGE TECHNOSPHERE, DataAge, INTAGE RESEARCH, INTAGE ASSOCIATES, INTAGE Healthcare, PLAMED, INTAGE Real World, INTAGE QUALIS).

Targets for Climate Change Initiatives

・Reduce CO2 emissions (Scope 1 and 2) by 46% (2030 target compared with 2013 levels)
・100% renewable energy usage rate (2030 target)
・Response to the TCFD recommendations

CLIMATE CHANGE INITIATIVES

INITIATIVES TO REDUCE THE ENVIRONMENTAL IMPACT OF THE HIBARIGAOKA OFFICE

The Hibarigaoka Office, which houses a data center, uses a large amount of electricity, thus posing challenges in terms of costs and environmental impact. Given this situation, since 2011 we have implemented energy saving measures with the cooperation of an energy service company (ESCO)*. We have reduced electricity usage by more than 40% compared with 2013 levels by implementing measures such as introducing air conditioning inverter control and switching to energy-efficient lighting.

* A service provider related to building energy savings

Electricity usage of Hibarigaoka

* Electricity consumption at Hibarigaoka, where a data center is located, accounts for about 60% of that of the entire group.

SUSTAINABLE EFFORTS AT THE DATA CENTER

At the Hibarigaoka Office, a data center that is in charge of the Group's IT infrastructure and business applications, as well as the customers' equipment and data, represents 65% of the electricity usage. We therefore make efforts in regular monitoring of its electrical usage, operation of the related ICT equipment, and maintenance of the server environment. In order to reduce the heat associated with the increase in data volume and advanced performance of the equipment, we have installed floor fans, which operate in conjunction with temperature sensors to improve the air conditioning of the racks. We also conduct thermal environmental surveys twice a year.
With the aim of providing a 24x7 management system in the event of a disaster caused by climate change or a pandemic, we have added a remote operating function in data center management, enabling remote support, from May 2020. We are helping our customers' business continuity and stable operation of various systems, contributing to the continuous improvement of their business value.

PARTICIPATION IN THE MINISTRY OF THE ENVIRONMENT'S "COOL CHOICE" CAMPAIGN

The INTAGE Group is participating in "Cool Choice," a new national campaign to prevent global warming promoted by Japan's Ministry of the Environment. We are communicating information through the Group newsletter and using educational video content to raise employee environmental awareness.

CONTRIBUTION TO THE ENVIRONMENT THROUGH BUSINESS

ACCOMPANYING THE PROMOTION OF "GREEN PURCHASING"

INTAGE RESEARCH focused early on "green purchasing" by initiating purchase of eco-friendly products and has been engaged in the study on standards used by the government for its purchasing. This is why INTAGE RESEARCH has continuously been involved in adding and reviewing fields and items (the Company refers to them as "Specific Purchasing Items") of a category called "Environmental goods and others" for promotion of purchase by the government.
If green purchasing is promoted, consumers' behavior in selecting of goods will change and result in the enhanced market competitiveness of products and services, and in reduced environmental burden over the products' lifecycles, from raw material purchasing to production, consumption, and disposal. INTAGE RESEARCH intends to promote a potential shift in demand of consumers via its business, with the aim of promoting the establishment of a sustainably-developing society.