Climate change-related issues are regularly discussed by the Board of Directors and the Sustainability Committee, which is composed of the executive level. In addition, the Board of Directors meetings at the Company are chaired by the President and Chief Executive Officer.
EM Systems aims to "realize a sustainable society through our business" based on our management philosophy of "continuing to contribute to the health of people and the planet. We have newly formulated four materialities in 2021 that will serve as important indicators in promoting sustainability management.

EM Systems has established a "Sustainability Committee" and a "SDGs Promotion Committee.
The "Sustainability Committee" is composed of directors and mainly discusses the promotion of sustainability management and ways to promote and realize sustainability, and is chaired by the President and Representative Director.
The "SDGs Promotion Committee," consisting of employee representatives from each group company, is chaired by a director and discusses and plans how to raise awareness of the SDGs, reduce greenhouse gas emissions, improve employee engagement, and accelerate solutions to social issues from the perspective of the SDGs.

Although we do not belong to the high-risk sector as defined by the TCFD and do not engage in any approximate business, we believe that, when considered over the long term, the impact of climate change on our business will be a considerable risk, and that situations such as power supply disruptions due to flooding or typhoons becoming stronger may cause a slowdown in our business activities. We believe that there is a possibility of stagnation of business activities due to situations such as power supply outages caused by floods or typhoons.

＜Short-term＞（Within 3 years）
Broken down by time period, the short-term forecast is significantly lower, with no occurrence of risks and opportunities affecting the business, although the Company must be prepared for the risk of sudden climate change-based events such as typhoons and floods.

＜Medium-term＞（Within 10 years）
In the medium term, we assume that society will recognize the situation where climate change risks will gradually become more apparent and serious in the risks that affect our business, and that we will enter an era in which climate change-friendly low-carbon products will be more selective.

＜Long-term＞（Within 30 years）
In the long term, we envision a society that requires a sustainable healthcare system and a more information-related society, and that is progressing toward a society that operates with climate change in mind.

Although we are in the information and telecommunications industry, a segment that does not necessarily have high GHG emissions, we believe that the impact on our organization of the risks and opportunities posed by climate-related electricity supply and demand spikes, carbon tax generation, and increased regulation of power equipment and other facilities requires careful analysis.

We identify climate-related risks and opportunities in our risk management and business continuity planning (BCP measures). Risk mapping and financial analysis have resulted in an analysis that can be divided in two directions.
In the 4°C scenario, the impact on our business is extremely large, and we believe there will be no small amount of impact on our business strategies and financial statements, since it is assumed that extensive damage will inevitably occur.
In the 2°C or lower scenario, the frequency of occurrence and phenomena can be predicted in advance, and preventive measures and countermeasures can be taken in advance, so the impact on our business is considered to be negligible.

In the evaluation process, which includes the management of non-climate-related risks within the company, we identify targets that are expected to have a financial impact within a range calculated by multiplying the frequency by the impact on the business.

Climate-related risks will be managed by the Administration Department from time to time, including review of the Business Continuity Plan (BCP measures), while keeping an eye on events that occur on an annual basis. Reports are made to the "Sustainability Committee" or "Board of Directors" as necessary.

Climate-related risks are defined in the context of an overall risk mapping within the organization.
Our internal assessment process is divided into four categories: "1. risks from climate change and natural disasters," "2. Risks from management factors," "3. Risks from internal factors," and "4. Risks from external factors. Of these, climate-related risks fall under "1. Risks due to climate change and natural disasters.

In February 2022, we announced a review of our medium-term management plan, and at the same time, in order to promote sustainability management, the "Sustainability Committee" formulated materiality and set long-term goals and announced them. Our long-term goals related to climate change are as follows.

Scope 1, 2, and 3 emissions were 624.52t-CO2, 618.03t-CO2, and 22,100.51t-CO2 in the fiscal year ended December 31, 2020.

Scope 1 covers gasoline used in cars. We will continue to make calculations based mainly on the amount of energy used, but for items that are difficult to determine based on the amount of energy used, we will make calculations based on the amount of money used for energy.
Scope 2 mainly covers electricity consumption generated at the Company and its affiliated subsidiaries.
Scope 3 is indirect greenhouse gas emissions, and calculations were made for those that could be calculated in the business area. Of these, Category 11 (use of products) had the highest number of results. Category 11 covers PCs and printers that we sold to our customers.

In conjunction with the Mid-term Management Plan, we have set three long-term goals.1. 50% reduction in electricity consumption and GHG emissions by 2020; 2. 40% reduction in GHG emissions by 2021 through DX effects of products and services; and 3. 80% implementation rate of electronic contracts (by 2025).
As of 2022, CO2 emissions (Scope 1+2) totaled 1193.16t-CO2, and actual greenhouse gas emissions due to the DX effect were 7,616 t-Co2eq in FY2021.