Environment <Initiatives to Address Climate Change>

■ Basic Concept

Extreme weather events and other impacts caused by climate change are becoming increasingly severe, and responding to climate change is now a global challenge. The DAIICHIKOSHO Group has positioned addressing climate change as one of its key issues. We are taking steps to reduce environmental impact while fulfilling the main mission in our Basic Policy on Sustainability – provide fun and happiness to society and contribute to healthy and enriching lives through karaoke.

■ Disclosure Based on TCFD Recommendations

DAIICHIKOSHO analyzes climate change risks and opportunities for the Group, incorporates them into business strategy and risk management, and discloses progress towards its goals in order to generate further growth while contributing to the decarbonization of society.

■ Governance

The Group has established a Sustainability Committee as an advisory body to the Board of Directors to consider and deliberate on basic policies and key matters related to climate change. The committee typically updates the Board of Directors on progress with climate change response measures about twice a year. It has also established a system to identify and monitor actual risks and opportunities as part of broader efforts to strengthen governance related to climate change.

■ Strategy and Risk Management

We have identified risks and opportunities that could affect the Group’s businesses in two categories – (1) transitional risks: policy and regulatory (tighter rules on greenhouse gas [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 reputational (changes in stakeholder views of DAIICHIKOSHO); and (2) physical risks: chronic (assuming 2°C rise in global temperature), resulting in environmental changes due to global warming, and acute (assuming 4°C rise in global temperature), resulting in increasingly severe natural disasters. We then explored measures to address these risks.

■ Indicators and Targets

To achieve carbon neutrality, we aim to reduce the Group's GHG emissions (Scope 1 and Scope 2) to zero in real terms by FY2050.
Specifically, we will help to realize a decarbonized society by saving energy and progressively switching to energy generated from renewable sources.

・The Osaka Prefectural Government’s “Decarbonization Declaration” climate change policy

In accordance with the Osaka Prefecture Ordinance on Promotion of Climate Change , and similarly with the Act on Rationalizing Energy Use , we have submitted our plan and report on reducing CO2 emissions in workplaces (places of business/stores) within Osaka prefecture based on laws and ordinances.
We are in accord with the initiatives by the Osaka Prefectural Government toward achieving carbon neutrality by 2050 and have been registered as an “Corporate Decarbonized Management Declarant.”
We will continue our initiatives to achieve carbon neutrality by 2050.

■ Future Initiatives

Starting from FY2021, we have begun calculating and disclosing CO2 emissions on a Group-wide basis. Going forward, we will continue to implement energy-saving measures and related disclosure.
We will also consider adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

■ Initiatives to Reduce Environmental Impact

･Reducing the use of paper

Previously, DAIICHIKOSHO used up to 7,800 tons of paper each year to publish music guides for karaoke customers. Aiming to reduce our impact on the environment, we were the first company in the industry to develop a karaoke machine remote control device with an integrated digital music guide. We started selling the devices in 2002.
The devices have become very popular, with total sales exceeding 1.4 million units as of June 30, 2021. The wide uptake of the devices has seen a steep drop in the volume of paper needed to publish physical music guides from a peak level of around 7,800 tons annually to zero today.
*Publication of the physical music guides ended in March 2020.

■Environmental measures at karaoke rooms and restaurants

*BIG ECHO includes sub-brands such as Karaoke Mac