Response 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 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:

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 Process & Technology, a PERSOL Group company that provides business consulting and services related to IT systems, will work to leverage the PERSOL Group's capabilities in order to deliver services that help address the decarbonization challenges faced by companies. We are committed to helping realize a sustainable society, including beginning decarbonization/green transformation (GX) services from fiscal 2022, as well as endorsing initiatives such as the GX Basic League Concept developed by the Ministry of Economy, Trade and Industry.

＜Examples of services provided＞

Support for calculation of greenhouse gas emissions

We support the collection of the data necessary to calculate greenhouse gas emissions, through to calculation of emissions and development of roadmaps/establishment of processes for the implementation of tools.

Provision of educational content related to decarbonization-related fields

We provide training and educational content for personnel newly involved in decarbonization-related work to convey basic knowledge regarding key concepts and the duties involved.

Support services for implementing greenhouse gas emission visualization and reduction plans

Using expertise gained through its energy business since October 2011 and its proprietary method of business design through outsourcing business, the company is contributing to managing decarbonization at companies by providing support as a partner for the realization of reduction plans, from the pursuit of problem specification, consideration of action plans, project management, and introduction and implementation of reduction solutions.

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 45 startups (12 overseas and 33 in Japan*) in the HR technology field working to promote new work styles, including utilizing technology to improve productivity or work remotely.
In February 2022, we established a new Job Creation Fund and began supporting startups in growth areas related to the SDGs and expected to generate employment opportunities in the next 10 to 20 years, such as the 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 February 2022

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. From fiscal 2023 onwards we aim to work toward establishing 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.

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

Calculation Scope

• 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.

Calculation Period

FY3/21 (April 1, 2020 - March 31, 2021), FY3/22 (April 1, 2021 - March 31, 2022), FY3/23 (April 1, 2022 - March 31, 2023) (*2)

Scope of Activities Measured

• 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 emissions occurring in the value chain (Scope 3), as defined in the GHG Protocol.
• Target categories of Scope 3 (*3)
  • Category 1: Purchased goods and services
  • 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

Calculation Method

• Greenhouse gas emissions (converted to CO2 volume) are calculated with reference to the GHG Protocol in accordance with the "Ministerial Ordinance Concerning Calculation of Greenhouse Gas Emissions Associated with Business Activities of Specified Emitters."
• Programmed emissions (Asia Pacific SBU) are calculated in accordance with the Australian and New Zealand government guidelines for calculation of greenhouse gas emissions.
• Emission factors used in calculations are those outlined in the Manual for Calculating, Reporting, and Disclosing Greenhouse Gas Emissions. (Emission factors used to calculate electricity use at overseas business sites are the International Energy Agency (IEA) country-specific emission factors)

Impact of COVID-19 Pandemic

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). Emissions may therefore increase in future, particularly in Scope 3, due to a recovery in onsite attendance rate and other factors.

(*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.

(*3) We will consider disclosing information on other Scope 3 categories in the future after ascertaining the relevant facts.

Third-Party Assurance of Environmental Data

We obtained an assurance from an independent third-party, SOCOTEC Certification Japan, on the figures marked with ✓ of the actual greenhouse gas emissions since FY3/22, as a way of ensuring the accuracy and reliability of the data.

Environmental considerations in office life

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

Promoting remote work

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.

Promoting paperless operations

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.

Initiatives at overseas subsidiary Programmed

Programmed, which offers comprehensive Staffing, Facility Management and Maintenance services in Australia and New Zealand, has engaged with The Energy Alliance (TEA) to implement a solution for the ongoing management of greenhouse gas emissions and energy usage. This has enabled Programmed to invest in green energy in over 60+ locations in Australia, leading not only to the reduction in carbon emissions but also significant cost savings as a business.
In addition, working with TEA from July 2022, 10 sites acheived carbon neutral (*1).
Programmed will pursue further sustainable initiatives in its sustainable business development, procurement and property leasing strategies. Programmed ANZ also introduced its first electric vehicle and installed a charging station at its location in Henderson, New Zealand. We aim to introduce EV/HV vehicles as part of our vehicle strategy to the extent possible to reduce emissions.
Some organizations are working on recycling initiatives in their products, from soft plastics to clad materials. Our New Zealand operations have been certified by the Toitū (*2) Carbon Reduce program.

(*1) A site achieves carbon neutral : the greenhouse gas emissions relating to the site’s business operations (total of scope 2) is net zero.

(*2) Toitū : a certification body that provides carbon certification in New Zealand

Engine Testing with Carbon-neutral Fuel at PERSOL CROSS TECHNOLOGY

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.