■Fujibo Holdings' ＜3104＞ ESG Initiatives

1. Basic Sustainability Policy

The company group practices “sustainability management,” which incorporates sustainability into the core of its business strategy. The key point of the Group's sustainability management is to achieve sustainability by implementing fair and transparent SDGs management based on “profit,” “growth potential,” “profitability,” “social contribution,” and “honesty” in a well-balanced manner.

2. Identification of 5 materialities/key issues and status of promotion

In order to realize a sustainable society, the company group analyzes the impact of business activities on stakeholders, the economy, society, and the environment, and identifies five material issues based on the idea of “double material,” which integrates materiality (financial materiality) from an investor's point of view and materiality (environment/social materiality) from a stakeholder's point of view.

(1) Sincere efforts to realize a sustainable environment and society

In order to maintain the sustainability of the global environment, we aim to establish a stable and sustainable procurement and supply system by working to preserve the natural environment and biodiversity and promoting effective use of resources.

(2) Adapting to climate change

In addition to working to reduce the environmental impact of business activities for a decarbonized society, we will respond appropriately to the impact of climate change that will occur in the future on companies.

The company recognized climate change response aimed at realizing a low-carbon society as an important management issue, and agreed with the TCFD (Climate-related Financial Information Disclosure Task Force Task Force on Climate Change Financial Disclosure) recommendations, which serve as guidelines for disclosing information on climate change, in 2021/11. Important information related to climate change is disclosed in line with the TCFD recommendations. Also, they answered the CDP* questionnaire (climate change) and received a “B-” (1 rank improvement from the previous “C”, management level) evaluation.

* CDP is a British non-profit organization that sends questionnaires (3 types of climate change, forest, and water security) to each company on behalf of investors, analyzes and evaluates the responses of companies, and discloses the results.

(3) Co-creation of value with diverse stakeholders

Through business activities, we place importance on dialogue with diverse stakeholders and contribute to the sustainable growth and development of local communities, etc.

(4) Creating an environment where diversity is accepted and individual abilities can be maximized

We respect diversity regardless of gender, age, nationality, etc., and promote the development of a work environment so that people can demonstrate their abilities with peace of mind.

(5) Advancing corporate governance and thorough compliance risk management

In addition to practicing highly transparent management, we aim for sustainable growth by adhering to a risk management system that prevents accidents and fraud.

In addition to this, in terms of the environment (environment), environmental load reduction is being promoted, with CO2 emissions (Scope 1 and Scope 2): 62 thousand tons (+2 thousand tons compared to the previous fiscal year) and the same (Scope 3): 128 thousand tons (+4,000 tons compared to the previous fiscal year) as results for the fiscal year ending 2023/3. Also, in terms of governance (governance), management diversity is progressing smoothly, with 8 directors and 3 outside directors, 2 of whom are women (including 1 foreigner).

3. Sustainability promotion system

The company established an “ESG Promotion Committee” in 2021/4 to promote sustainability management across the entire company group through responses to important issues related to the SDGs in line with the launch of the medium-term management plan “Enhancement 21-25.” The “ESG Promotion Committee” is chaired by President Inoue and consists of three subcommittees: environment (environment) subcommittee, society (social) subcommittee, and governance (governance) subcommittee. The mission is to respond appropriately to the Group's sustainability issues and to make recommendations so that responses to sustainability lead to medium- to long-term improvements in corporate value. Each subcommittee tackles various issues related to sustainability promotion, and it is a system where the ESG Promotion Committee, the Management Council, and the Board of Directors are consulted according to the degree of importance. The Board of Directors finalizes important policies and measures covering overall management, and carries out management supervision of management meetings, ESG promotion committees, etc.

(Written by FISCO Visiting Analyst Keiji Shimizu)