DmMiX recognizes climate change due to an increase of greenhouse-gas emissions to be a serious issue impacting our business activities. As a policy to fulfill our responsibility in tackling the alleviation of climate change and bringing about a sustainable society, we have adopted the following Environmental Policy, the establishment of which has been approved by the Board of Directors.

Believing that our response to climate change is an important management issue, under the Board of Directors we have set up the Sustainability Committee, chaired by the President and CEO, Representative Executive Officer, to promote proactive countermeasures centered on the achievement of carbon neutrality.

Under the responsibility of its chair, the President and CEO, Representative Executive Officer, the Sustainability Committee deliberates on various issues related to climate change and the environment on a quarterly basis, and studies and discusses specific initiatives and measures to address risks such as environmental pollution and abnormal weather caused by global warming and so on. In addition, in collaboration with the Risk and Compliance Committee, it promotes the management and reduction of risks. Matters studied and discussed in the Sustainability Committee are reported to the Board of Directors on a quarterly basis, and the Board regularly supervises this process and gives instructions as necessary.

We identify the risks and opportunities associated with climate change that are important for our business and evaluate the degree of influence of the identified risks and opportunities based on their possibility of occurrence and size of impact.

Regarding risks related to climate change, the Sustainability Committee formulates action plans for initiatives and check the progress of the plan in collaboration with each department and Group subsidiaries. The Sustainability Committee reports the content of these action plans to the Board of Directors, which deliberates and decides on how to deal with important matters reported to it. Through this process, risks and opportunities associated with climate change that are deemed to be especially important are reflected in our strategy as corporate risks for the Company and countermeasures are implemented under the supervision of the Board of Directors.

We use two scenarios (+ 1.5℃ and + 4℃) to study physical risks caused by climate change, such as abnormal weather conditions, and transition risks, such as the introduction of measures and regulations by the government to curb climate change, from short-term (0–1 year), medium-term (1–9 years), and long-term (10–29 years) perspectives. Risks and opportunities that are identified as a result are reflected in our strategy, and countermeasures are implemented.

For scenario analysis, we refer to reports^* issued by international organizations, such as the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), and equivalent research organizations.

1. *Reference scenarios: IEA NZE 2050, IEA STEPS, RCP1.9, RCP4.5, etc.

In the 1.5℃ scenario, amid the introduction of a carbon tax in Japan, changes in the renewable energy power promotion surcharge consequent to the promotion of renewable energy diffusion, and growing interest in environmental issues among stakeholders, there is a risk of a certain impact on our corporate activities, such as a decline in our share price if our initiatives are judged to be inadequate. On the other hand, as society as a whole moves forward with efforts to curb climate change, there is a possibility that demand for environmentally-friendly products and services, such as energy-efficient buildings, energy-efficient electric products, will further grow and new businesses will emerge in the process of transition to renewable energy. We recognize that these creation of new markets and business opportunities, expansion of the business process outsourcing (BPO) market, and increased need for business continuity planning (BCP) response will provide opportunities to increase sales revenue for our company, which plays a role in promoting the social implementation of new services.

In addition, under the 4℃ scenario, the damage caused by natural disasters (typhoons, floods, storm surges, etc.) and higher electricity costs due to increased air conditioning power consumption caused by rising temperatures may have a certain impact on our business, especially in terms of physical risks.

At the present point in time, since our business model has extremely little impact on or from the environment, in both scenarios we judge that there will be no substantial risks to our business or financial status either in the short term or medium to long term. At the same time, since the response to climate change is an important management issue, we are promoting a proactive response with the aim of reducing CO2 emissions in the Group as a whole to virtually zero (carbon neutral) by 2030. Specifically, we aim to achieve carbon neutral by implementing the following initiatives.

The risks and opportunities in two scenarios and their impact on our business and finances are as follows:

Category			Time axis*	Degree of impact	Impact on DmMiX	Response
Risks	Transition risks	Policy and legislation	Medium term, long term	Low	Increase of tax burden due to raising of carbon tax consequent to introduction of policies and strengthening of regulations relating to the curbing of greenhouse gas emissions	To curb CO2 emissions across the entire Group, we have procured electricity for use from renewables energy sources (green certification) since 2023, with the goal of shifting all electricity used to renewable energy sources by 2030. By reducing CO2 emissions to virtually zero, it will be possible to lower the carbon tax burden to zero.
		Reputation	Medium term, long term	Low	Decline in share price and corporate image if our approach to the environment issues is judged to be negative	By promoting and disclosing information on our initiatives to tackle ESG issues, including problems relating to climate change, and reflecting them in our management strategy, we will endeavor to engage in dialogue with shareholders, investors and other stakeholders. Furthermore, we will make continuous efforts to improve our ESG scoring by evaluation organizations, such as the CDP, and enhance our information disclosure.
	Physical risks	Acute risks	Short term, medium term	Low	Impact of water-related disasters on business performance (decline in operating rate) and increased costs associated with recovery response or lelocation	We monitor the risk of flooding or damage to server locations and consider relocating or replacing servers when the risk reaches a certain level. In the event of a disaster occurring, in the light of our role as a social infrastructure linking people, we will strive to disperse sites and strengthen BCP response so as to mitigate the risk.
		Chronic risks	Medium term, long term	Low	Increase of electricity costs due to greater consumption of air-conditioning electricity for cooling equipment consequent to temperature rises and increase of investment costs for improving the workplace environment	To control the amount of electricity used, we will make continuous efforts to encourage the wearing of seasonal clothing by employees (Cool Biz and Warm Biz), adjust air-conditioning temperatures in offices and switch off equipment when not needed, etc.
Opportunities	Market		Medium term, long term	Low	Creation of new business opportunities consequent to our response to climate-change issues, acquisition of growth opportunities due to expansion of the BPO market and increased BCP response needs	To capitalize on chances to develop new markets and acquire new business, we will be agile in securing operating capacity to meet growing demand.
	Reputation		Medium term, long term	Low	Increase of sales revenue, rise in share price and enhancement of corporate image if clients and investors judge our efforts to address environmental issues to be outstanding	By promoting and disclosing information on our initiatives to tackle ESG issues, including problems relating to climate change, and also reflecting them in our management strategy, we will endeavor to engage in dialogue with shareholders, investors and other stakeholders. Furthermore, we will make continuous efforts to improve our ESG scoring by evaluation organizations, such as the CDP, and enhance our information disclosure.

1. *Short term = 0–1 year, medium term = 1–9 years, long term = 10–29 years

In accordance with the GHG Protocol, we define GHG emissions (absolute Scope 1 and 2 emissions*) over the entire life cycle of our offices and business activities as an indicator for managing risks and opportunities associated with climate change.

1. *Calculated using the location-based method. The area of calculation is the Direct Marketing Mix Group (the Company and its subsidiaries).

As management strategy, we have set the goal to achieve virtually zero CO₂ emissions (carbon neutral) from scope 1 and 2 emissions in the Group as a whole through the use of electricity and other measures by 2030, which is the target year of the Sustainable Development Goals (SDGs). We will contribute to the reduction of CO₂ emissions and adaptation to climate change through the active use of renewable energy, etc. (Introduced from 2022).

Scope 3 emissions are calculated in accordance with the "Basic Guidelines for Calculating Greenhouse Gas Emissions through Supply Chains" established by the Ministry of the Environment and the Ministry of Economy, Trade and Industry. In the future, we plan to set targets.

（Unit : t-CO2）	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
Scope 1	0	0	0	0	0	0
Scope 2	757	870	1,017	1,447	1,416	1,446
Scope 3	-	-	4,993	6,757	7,878	4,789
1. Purchased Goods and Services	-	-	4,147	5,809	6,677	3,653
6. Business travel	-	-	431	454	673	659
7. Employee commuting	-	-	415	493	528	477
Emissions per employee	0.024	0.023	0.129	0.130	0.129	0.100
Emissions per unit of net sales (t-CO2/million yen)	0.056	0.051	0.268	0.271	0.268	0.232

（Unit : MWh）	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
Scope 1	0	0	0	0	0
Scope 2	1,714	2,359	2,855	3,820	4,328	4,300

（Unit : MWh）	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
Scope 1	0	0	0	0	0	0
Scope 2	0	0	0	0	558	558

（Unit : %）	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023
Scope 1	0	0	0	0	0	0
Scope 2	0	0	0	0	11.4	11.5

While climate-related problems are risks that should be addressed by society as a whole, we believe that at the present point in time they have not reached a level exerting a serious impact on our management. Furthermore, since the business domains in which we operate, such as contact centers, field sales, sales and marketing business process outsourcing, and human resources dispatch, are not industries that consume vast amounts of energy, we believe that the risk of suffering a major economic impact due to climate change is not very significant even for the business as a whole. Nevertheless, since climate-related problems could become a serious risk for the Company in the future, we realize that going forward it will be necessary for us to actively engage in initiatives undertaken by business organizations and others.

We encourage implementation of Cool Biz and Warm Biz (campaigns for wearing more casual attire in the office and taking other measures so that the use of air conditioning can be limited) and are working to save electricity through measures such as adjusting air conditioning temperature in offices by setting them higher in the summer and lower in the winter, turning off non-essential equipment, and fostering environmental awareness among executives and employees.

We use an internal application and approval system and are digitalizing various paper resources such as internal application forms and reports. We are also reducing paper use by posting bulletins and the like on the company intranet.

In addition, we have prohibited employees from bringing paper into or removing paper from centers from the perspective of information security and have digitalized all personal information and the like for storage in order to shift to paperless operations.

Furthermore, we introduced a system of printing following confirmation of identity at the time of printing using an ID card issued to each employee in order to determine the amount of copy paper used and raise awareness of the need to reduce usage.

By using business cards made from limestone we avoid cutting down trees, which are the raw material for paper, thereby reducing the amount of wood resources used. This also contributes to reducing water use as almost no water is required in the manufacturing process (100 business cards reduce 10L of water).

We provide training for our employees to raise their awareness of environmental practices and to promote understanding of the impact of our business activities on the environment.