Environment <Initiatives Against Climate Change>

■ Basic Concept

The impacts caused by climate change, such as abnormal weather, are becoming more severe, and addressing climate change has become a global issue. The Daiichi Kosho Group, while fulfilling its mission of "providing fun and brightness to society through karaoke and contributing to people's healthy and prosperous lives," has set forth "efforts to reduce environmental impact" and positioned addressing climate change issues as one of its key challenges.

■Information Disclosure Based on TCFD Recommendations

We analyze the risks and opportunities that climate change poses to our company, reflect them in our management strategy and risk management, disclose our progress, and aim for further growth while contributing to the decarbonization of society as a whole.

■ Governance

We have established the "Sustainability Committee," an advisory body to the Board of Directors, as an organization to consider and deliberate on basic policies and key issues related to climate change. Regarding the promotion of climate change response, we provide regular reports (approximately twice a year) to the Board of Directors, establish a system to grasp and monitor the realities of risks and opportunities, and are working to strengthen governance related to climate change.

■Strategy and Risk Management

In identifying risks and opportunities, we considered transition risks such as "policy regulation: strengthening regulations on GHG emissions," "market: changes in energy supply and demand," "products and services: changes in demand for low-carbon products and the development of next-generation technologies," and "reputation: changes in stakeholder reputation," as well as physical risks such as "chronic (2°C increase): environmental changes due to global warming" and "acute (4°C increase): intensification of natural disasters." We identified the impacts on each business as risks and opportunities and considered the necessary countermeasures.

■ Indicators and goals

Our group aims to achieve carbon neutrality by reducing our group's greenhouse gas emissions (Scope 1 and Scope 2) to net zero by fiscal year 2050.
Specifically, we will contribute to the realization of a decarbonized society by promoting energy conservation and gradually expanding the switch to electricity derived from renewable energy.

Regarding Osaka Prefecture's Climate Change Measures [Decarbonization Declaration]
　 In accordance with the [Ordinance on the Promotion of Climate Change Measures in Osaka Prefecture], we submit plans and reports related to CO2 emission reductions at business sites (offices and stores) in Osaka Prefecture, similar to the Energy Conservation Act.
　 We also support Osaka Prefecture's efforts to achieve carbon neutrality by 2050 and have been registered as a [Decarbonization Management Declaration Business].
　 We will continue to work towards achieving carbon neutrality by 2050.

■ Future initiatives

From the fiscal year 2021, we have disclosed calculations for the entire group. We will continue to disclose information along with efforts towards energy conservation.
We will also consider supporting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

■ Efforts to Reduce Environmental Impact

・Reducing paper usage

At the peak of table of contents book issuance, we used approximately 7,800 tons of paper annually. To be environmentally conscious, we developed the industry's first electronic table of contents book "Denmoku," which integrates the table of contents book and remote control, and began sales in 2002.
Denmoku became a hit product, with cumulative sales exceeding 1.4 million units as of the end of June 2021. With the widespread adoption of Denmoku, the paper usage, which was approximately 7,800 tons annually at the peak of table of contents book issuance, became zero.
*The issuance of table of contents books was discontinued as of March 2020.

・Environmental Measures at Big Echo Stores

*"Big Echo" includes other brands such as Karaoke Mac.