Response to Climate Change

Climate change is an unavoidable issue in our society today, impacting both the lives of people around the world and the PERSOL Group's business. Accordingly, we regard the problem of climate change as one of the PERSOL Group's management issues, and are committed to reducing greenhouse gas emissions and promoting efficient and sustainable use of energy by reducing and controlling its usage. Furthermore, we aim to contribute to the achievement of the international goals outlined in the SDGs and the Paris Agreement by striving to provide services that help society mitigate and adapt to climate change.

In order to realize a sustainable society in which all people truly feel “Work and Smile,” we are working to strengthen our sustainability promotion systems, including our response to climate change.
The Sustainability Committee, which was established as an advisory committee under the Headquarters Management Committee (HMC) to promote sustainability initiatives at the management level and chaired by Representative Director, President and CEO, regards sustainability as the Company's highest priority management task. The Committee deliberates on sustainability related management agendas, including climate change issues and submits proposals and reports to the HMC and the Board of Directors. The Board of Directors oversees this process on a regular basis and issues directives for action as necessary.
In addition, from fiscal 2023, we established the Steering Committee to provide a forum for discussion on how to achieve carbon neutrality. This committee is comprised of executive officers and other staff members from Japan and overseas, and conducts active discussions and information sharing on CO₂ reduction measures.

In order to identify the specific impacts of climate change on our business, as well as climate-related opportunities and risks, we referenced as benchmark and analyzed based on scenarios published by external organizations such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).
The specific scenarios referenced are outlined below:

* Short-term: Within 5 years; Mid-term: 5 to 10 years; Long-term: 10 years+

The PERSOL Group views contribution to decarbonization efforts as a business opportunity, and is pursuing multiple businesses in this field, including temporary staffing and placement services.

We aim to develop personnel with expertise that will contribute to decarbonization and climate change, and, by providing human resource mobility support services, including temporary staffing and placement services, to work together with our customers in their efforts to decarbonize their businesses.

PERSOL CROSS TECHNOLOGY, which is engaged in temporary staffing of IT and manufacturing engineers, offers a temporary staffing service for “Green Engineers” who can visualize greenhouse e gas emissions in manufacturing and design in consideration of the environment. As well as promoting projects to calculate CO2 emissions at automakers, the company will strengthen its recruitment, training and development of engineers committed to carbon neutrality and strive to position “Green Engineers” to support design and development and increase their value as engineers.

* Engineers who have the technical ability to support corporate green transformation, as defined by PERSOL CROSS TECHNOLOGY.

PERSOL BUSINESS PROCESS DESIGN CO., LTD, a business process outsourcing (BPO), consulting, and BPaaS provider, offers green transformation (GX) services that leverage PERSOL’s capabilities to address the challenges companies face in making their businesses carbon neutral. We work to support companies in their efforts to achieve carbon-neutral management and sustainable society by implementing green technologies on a societal level. We also work to achieve a green society by endorsing the GX Basic League Concept developed by the Ministry of Economy, Trade and Industry, as well as working with local governments to promote carbon neutrality and establish related programs.

＜Examples of Services Provided＞
Support for calculation of greenhouse gas emissions
We support our clients in the collection of data needed to calculate greenhouse gas emissions, the emissions calculation process, the formulation of a roadmap for the implementation of tools, and the construction and execution of processes. For the calculation of emissions in the supply chain, including for Scope 3 emissions, we have the capability to deliver appropriate implementation systems by designing business processes and IT systems.

Providing training content on carbon neutrality
We offer training for personnel involved in decarbonization operations that covers the basic knowledge of the key concepts and tasks required to perform such work. For companies that require industry-specific support, we also offer flexible programs, including customized training content and practical training for emissions calculation.

Support for greenhouse gas emission reductions and plan creation
We help our clients achieve carbon-neutral management by providing close-knit support and partnership as they work to realize their GHG reduction plans by identifying key issues, developing action plans, conducting project management, and introducing and implementing reduction solutions based on the expertise we have accumulated in the energy business since October 2011 and our unique business design methods made possible by our outsourcing services. We also support carbon-neutral management and business operations by developing plans in light of the information disclosure requirements, which have become increasingly complex in recent years.

＜Initiatives in the Public Sector＞
PERSOL P&T (*) awarded contract to support SMEs in Yamanashi Prefecture in promoting carbon-neutral management—to conduct seminars and workshops to support carbon neutrality efforts

PERSOL P&T* awarded contract to support local companies in Nasushiobara City, Tochigi Prefecture in study and formulation of carbon neutrality measures—to support development of effective measures and schemes

* From September 1, 2024, PERSOL P&T (PERSOL Process & Technology Co., Ltd.) changed its company name to PERSOL BUSINESS PROCESS DESIGN CO., LTD.

In 2015, PERSOL Group established PERSOL Venture Partners (formerly PERSOL Innovation Fund). Focusing on improving corporate human resource management, the Company has supported a total of 66 startups (20 overseas and 46 in Japan) in the HR technology field working to promote new work styles, including utilizing technology to improve productivity or work remotely. We have also actively invested in growth startups related to the SDGs, such as those in the fields of environment, energy, healthcare, and mobility.
In addition to providing financial support, PERSOL Group will provide the know-how necessary for organizational expansion, recruitment support, and other services that the PERSOL Group specializes in and are essential for achieving rapid growth of startups into mega-ventures. Through these initiatives, we aim to contribute to the achievement of the SDGs and efforts to combat climate change.

* As of May 2024

Climate change-related risks related to the Company's business identified by the Sustainability Committee are shared with the Risk Management Committee. Measures to address related risks are studied by the Risk Management Committee and subsequently deliberated on the Sustainability Committee. Through this framework, we are striving to understand and respond to the impact of climate change-related risks to our business.

For more information on how climate change-related risks are integrated into the Group's risk management, see below.

・PERSOL has set a “Carbon Neutral” target to aim for net-zero greenhouse gas emissions from its business activities* by FY2030
PERSOL Group has set itself the target of becoming carbon neutral by fiscal 2030, which entails reducing greenhouse gas* emissions from our business activities to net zero. As an short-term goal, we aim to reduce emissions by 17% or more compared to FY2021 by FY2025. By switching to HV/EV, implementing energy conservation initiatives in our offices and utilizing renewable energy, we will work to realize the common global goal of a carbon-neutral society. In fiscal 2025, we plan to establish targets for the reduction of greenhouse gas emissions, including Scope 3 emissions.

* Greenhouse gas emissions from business activities refers to the total of scope 1 and scope 2 emissions.

*1 In order to ensure the accuracy and reliability of the actual greenhouse gas emission figures denoted by the ✓ symbol, we obtained assurance from independent third-party organizations: SOCOTEC Certification Japan in FY3/22 and FY3/23, and from LRQA Limited in FY3/24.

*2 Figures for FY3/23 have been updated to reflect the unification of domestic and international calculation standards for Scope 1 and the change in the calculation method for Scope 3 Category 11.

For detailed data on greenhouse gas emissions and energy consumption, see below.

・Scope 1, 2 and Scope 3 Category 3 : The figures for Scope 1, Scope 2 and Scope 3 Category 3 emissions are calculated for key facilities of PERSOL HOLDINGS and consolidated subsidiaries in Japan and key facilities of principle overseas consolidated subsidiaries.

・Scope 3 (excluding Category 3): The figures for Scope 3 (excluding Category 3) emissions are calculated based on data from the main bases of the company and its consolidated subsidiaries in Japan.

FY3/21 (April 1, 2020 - March 31, 2021), FY3/22 (April 1, 2021 - March 31, 2022), FY3/23 (April 1, 2022 - March 31, 2023), FY3/24 (April 1, 2023 - March 31, 2024)

・Direct emissions (Scope 1: Combustion of fuels such as municipal gas, natural gas, gasoline, and diesel fuel), indirect emissions (Scope 2: Use of electricity and heat), and emissions occurring in the value chain (Scope 3), as defined in the GHG Protocol.
 ・Target categories of Scope 3
　- Category 1: Purchased goods and services
　- Category 2: Capital goods
　- Category 3: Fuel- and energy-related activities (not included in scope 1 or scope 2)
　- Category 4: Upstream transportation and distribution
　- Category 5: Waste generated in operations
　- Category 6: Business travel
　- Category 7: Employee commuting
　- Category 9: Downstream transportation and distribution
　- Category 11: Use of sold products
　- Category 12: End-of-life treatment of sold products

・Greenhouse gas emissions (converted to CO2 volume) are calculated with reference to the Ministry of the Environment’s Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain and the GHG Protocol.

・Emission factors used in calculations are the Ministry of the Environment’s Emissions Intensity Database for Calculating an Organization’s Greenhouse Gas Emissions Through its Supply Chain, IDEA (Inventory Database for Environmental Analysis: LCA database provided by the National Institute of Advanced Industrial Science and Technology), IGES (Institute for Global Environmental Strategies), and other databases.

・Programmed emissions (Asia Pacific SBU) are calculated in accordance with the Australian and New Zealand government guidelines for calculation of greenhouse gas emissions.

Greenhouse gas emissions FY3/21 (April 1, 2020 - March 31, 2021) and FY3/22 (April 1, 2021 - March 31, 2022) reflect the impact of increased utilization of remote working and reduced business travel due to the spread of the new coronavirus (COVID-19).

*1 Although the scope of calculation encompasses the entire PERSOL Group, it includes companies for which data collection is not yet fully complete in certain areas. We plan to systematically improve the completeness of our data collection in future.
*2 Some values of Greenhouse gas emissions include estimates.

In order to ensure the accuracy and reliability of the actual greenhouse gas emission figures denoted by the ✓ symbol, we obtained assurance from independent third-party organizations: SOCOTEC Certification Japan in FY3/22 and FY3/23, and from LRQA Limited in FY3/24.

The PERSOL Group has begun adopting renewable energy sources in order to reduce CO2 emissions from electric power as a part of its efforts to achieve carbon neutrality by the fiscal year ending March 31, 2031. We are working to shift our office buildings to renewable energy by progressively switching to renewable energy plans offered by electric power companies, with the goal of switching all (100%) of our energy consumption to renewable energy in real terms. As of March 31, 2024, the amount of renewable energy adopted across 38 sites in Japan totaled 3,787 MWh, out of our overall electricity consumption of 24,341 MWh. In April 2024, we also switched the electricity contract for the entire Minami-Aoyama Building, the headquarters of PERSOL Holdings, to a renewable energy plan. Going forward, we will continue striving to adopt renewable energy*1 at the PERSOL Group’s locations.

*1 As a supplementary measure, we will simultaneously work to switch to renewable energy in real terms by purchasing non-fossil fuel certificates.

We are pursuing the following initiatives to conserve energy in office life:

・Liberalizing the work dress code, in principle

・Ensuring appropriate temperature settings of air conditioners

・Encouraging required approval for after-hours airconditioning

・Posting electricity and energy conservation flyers

We are building remote work environments through the proactive use of ICT, including providing employees with laptop computers and introducing chat tools. At PERSOL HOLDINGS and some Group companies, Wednesdays are designated “no overtime” days, and efforts are made to finish operations by 6:00 p.m. These measures help reduce the number of commutes and lessen the amount of electricity used in offices, with the dual aims of work style reform and reduction of CO2 emissions.

The Group is promoting paperless operations by discontinuing the sending of printed New Year cards and introducing tools for electronic contracts. PERSOL HOLDINGS and some Group companies are also cutting back on the use of printed materials for internal meetings and thoroughly sorting and recycling paper resources to reduce the use of paper. Going forward, we will monitor the amount of paper used and promote measures that can be expected to produce even greater results as we strive to preserve resources and reduce CO2 emissions. For the paper that we do use, we encourage the use of environmentally friendly products like those certified with the Eco Mark.

Toitū carbon reduce certification
Programmed is a leading provider of comprehensive staffing, facility management and maintenance services in Australia and New Zealand.
All of Programmed New Zealand’s sites have been certified under the Toitū Envirocare*1 carbon reduce program. This certification also recognizes Programmed’s efforts to reduce greenhouse gas emissions and its proactive environmental initiatives in its business operations. Programmed will continue working to reduce greenhouse gas emissions by adopting hybrid and electric vehicles, electrifying its plants and facilities, and concluding renewable power purchase agreements.

*1 Toitū Envirocare is a New Zealand certification agency that provides carbon certifications.

Partnering with TEA to reduce Scope 2 emissions
Programmed has partnered with The Energy Alliance (TEA), a major Australian energy management company, to invest in green energy for electricity consumption (Scope 2). As of March 2024, 61% of the company’s 115 sites operate entirely on renewable energy, and 10% of sites have achieved 100% carbon offsets. This initiative helps to reduce Scope 2 emissions while also contributing to environmental stewardship and sustainable business operations.

PERSOL CROSS TECHNOLOGY, which is engaged in technical engineering operations, provides performance, functionality and durability testing services for engines that use carbon-neutral fuel. The automotive industry has in recent years made rapid advances in fuel efficiency and electric vehicle development. At the same time, carbon-neutral fuel is gaining attention for large commercial vehicles that are difficult to electrify and require large power output due to their long driving range, as well as for agricultural and construction machinery whose power supply infrastructure presents a challenge. Recently, needs have also been growing in the area of testing engines that use carbon-neutral fuel. PERSOL CROSS TECHNOLOGY is working with the commercial vehicle industry, the agricultural and construction machinery industry and fuel producers by using the engine development technology that the company has cultivated over the years to help make carbon-neutral engines a reality.