The Environment

Konami Group's Efforts on Climate Change
Disclosure based on TCFD

Basic Concept in Responding to Climate Change

Conservation of the "Global Environment" is an indispensable material issue for Konami Group that has aimed to be an enterprise that "keep stakeholders always looking forward with anticipation as we create and provide our current and future customers with products and services that offer "Valuable Time" by contributing to achieving a sustainable society through our business."

As an effort to reduce CO2 emission, we have engaged in office energy conservation and promoted "modal shift." In addition, Konami Sports Club Facilities have introduced cogeneration systems and hybrid hot water systems to convert heat sources. We have strengthened our forest management initiatives as well.

Konami Group expressed its support for the TCFD recommendations in May 2022 and will continue to disclose information in line with the recommendations. Contents including the company's environmental information is also posted on our website.

Task Force on Climate-related Financial Disclosures (TCFD)

TCFD was formed by the FSB in 2015 following a request from the G20 to assess and disclose the risks and opportunities that climate change poses on business.

Core Disclosure Elements
Governance Disclose the organization's governance around climate-related risks and opportunities.
Strategy Disclose the impacts of climate-related risks and opportunities on the organization's businesses, strategy, and finance.
Risk
Management
Disclose how the organization identifies, assesses, and mitigates climate-related risks.
Metrics
& Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.

Governance

Issues regarding climate change are handled at the "Sustainability Committee (Chair: President)." Decisions made by the Sustainability Committee are reported to the Board of Directors and are subject to periodic oversight. In addition, an Officer in charge of climate change has been appointed. Climate-related issues are taken into consideration when reviewing various plans, including medium and long-term plans, and when making decisions including investments.

Set policies are implemented by each business segment and group company while the Sustainability Committee Secretariat monitor the progress.

Strategy (Scenario Analysis 1)

Konami Group adapted 1.5℃ scenario based on International Energy Agency (IEA)'s Net Zero Emission Scenario and 4℃ scenario based on IEA's STEPS (Stated Policies Scenario) and Intergovernmental Panel on Climate Change (IPCC)'s Representative Concentration Pathways Scenario, all three scenarios are science-based and adapted globally, to evaluate the changes in the business environment and the risks and opportunities that arise from climate change. In all the scenarios analyzed, we have confirmed that it is possible to conduct resilient management in the analyzed business segments.

Under the 1.5℃ scenario where major policy changes for decarbonization are expected to be implemented, business model will need to shift to a more decarbonized one that can cope with the introduction of a carbon tax and higher raw material prices. The impact of physical risks further increases under the 4℃ scenario, where responses to risks such as factory closure and supply chain disruptions will be required.

【Global surface temperature change relative to 1850-1900】

Strategy (Scenario Analysis 2)

Carbon Neutral (1.5℃) world in 2050

Strategy (Scenario Analysis 3)

Scenario analysis has revealed hike in raw materials and carbon prices in the 1.5℃ case, whereas spread of infectious diseases has been revealed in the 4.0℃ case. In both cases, we were able to recognize that there are significant business opportunities backed up by demand growth in environmentally friendly products/services and health maintenance needs.

Based on these results, we will prepare for the rising price of carbon and raw materials by implementing renewable energy and energy-preservation measures/equipment throughout the company. Moving forward, we will further specify measures to address the identified risks and opportunities arising from climate change and incorporate them into our medium and long-term management strategies to further improve the resilience of Konami Group's business.


KONAMI CAMPUS

KONAMI SOLAR SYSTEM

Strategy (Scenario Analysis 4)

Business Impact Analysis
Category Description Business Impact
1.5℃ 4.0℃
Risks Carbon Price
  • Manufacturing cost will increase due to global introduction of carbon tax, emissions trading, and Carbon Border Adjustment Mechanism (CBAM).
MediumLow
Raw Material Cost
  • Raw material cost for mineral resources will increase due to higher carbon price.
  • Plastic procurement cost will increase due to adoption of recycled materials.
  • Paper procurement cost will increase due to depletion of forest resources.
LowLow
Energy Cost
  • Renewable energy procurement cost and energy-saving measure cost will increase.
  • Air conditioning cost will increase with temperatures rise.
LowLow
Cost to address Physical Risks
  • Sales loss will occur in case of factory closure due to extreme weather.
LowLow
Regulations for Environmentally Conscious Products
  • Sales loss will occur if platformers and distributors pose energy conservation restrictions on existing products.
HighLow
Opportunities Decarbonized/Digitalized Products
  • Demand for systems efficient in decarbonization will increase.
HighLow
Environmental Education
  • Demand for environmental education will increase as consumers become more environmentally conscious.
MediumLow
Health Awareness
  • Demand for health maintenance will increase in line with increased environmental awareness.
LowMedium
Infectious Diseases
  • Demand for online services will increase due to the spread of infectious diseases while the number of facility visitors decrease.
LowMedium

Risk Management

Sustainability Committee Secretariat identifies, evaluates, and manages the risks. It identifies risks by extracting relevant parameters for scenario analysis and conducts periodic assessments. It also manages risks by quantitatively assessing the financial impact of each risk. The results of the risk assessments are reported to the Board of Directors through the Sustainability Committee, as climate change criteria is established for linkage to company-wide risk management.

<Climate Change Risk Management Process>
Identification / Evaluation
  • Sustainability Committee Secretariat identifies and evaluates the Risks.
  • It extracts relevant parameters, including new regulatory requirements, and conducts periodic assessments.
Management
  • Sustainability Committee Secretariat manages the Risks.
  • It evaluates and prioritizes the quantitative financial impact of each risk in the scenario analysis.
Reporting / Coordination
  • Sustainability Committee Secretariat includes and discloses the Risks as a risk management item.
  • It reports risk assessment results to the Board of Directors and coordinate with company-wide risk management.

Metrics & Targets

Prevention of global warming by mitigating CO2 emissions is essential for realizing a sustainable society. To fulfill this responsibility, Konami Group monitors CO2 emissions in its business operations and conducts specific reduction measures.

As a target for mitigatining the environmental impact of our business operations, we aim to reach operational carbon neutrality in accordance with the Japanese government's declaration for 2050.