Response to Climate Change
(Endorsement of TCFD Recommendations)

• 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 and related management agendas 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.
• 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.

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:

4°C scenario

• IEA SPS scenario (Stated Policies Scenario)
  
• IPCC RCP 8.5

1.5~2°C scenario

• IEA SDS scenario (Sustainable Development Scenario)
  
• IEA NZE scenario (Net Zero Emissions Scenario)
  
• IPCC RCP 2.6

An increase in average temperature of around 4°C compared to pre-industrial times. Lack of policies and legislation to combat climate change or action to transition to a decarbonized society, resulting in the manifestation of the physical risks of climate change.

The rise in average temperatures is contained to less than 2°C compared to pre-industrial times. Policies and legislation to combat climate change are significantly strengthened, and a societal transformation toward decarbonization occurs. Physical risks such as natural disasters remain at the same level as at present.

PERSOL Group aims to contribute to decarbonization through its multiple businesses, including its 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 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. Starting in fiscal 2022, we will begin offering decarbonization/green transformation (GX) services. We will also endorse initiatives such as the GX Basic League Concept developed by the Ministry of Economy, Trade and Industry, and are committed to helping realize a sustainable society.

＜Examples of services provided＞

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

Following the Group Vision “Work, and Smile,” the PERSOL Group is contributing to the realization of a sustainable society by creating a society in which all people can work safely and securely. To achieve this, we recognize environmental preservation as one of the Company’s management issues and carry out corporate activities that take into account environmental considerations to reduce our environmental impact. We will also manage data related to our environmental impact, clarify the risks, opportunities that climate change poses to the Company as well as related targets, and work to contribute to the realization of a decarbonized society.

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. By 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.

[Calculation Scope]

• Scope1 and 2: PERSOL HOLDINGS Co., Ltd. and all subsidiaries (133 consolidated subsidiaries and 10 affiliates) (*1)
• Scope 3: PERSOL HOLDINGS Co., Ltd. and all subsidiaries in Japan

[Calculation Period]

Fiscal 2020 (April 1, 2020 - March 31, 2021) and fiscal 2021 (April 1, 2021 - March 31, 2022) (*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 5 (Waste generated in operations): Waste from office buildings
  • Category 6 (Business travel): Air/rail travel and accommodation during business trips (not including transport expenses for sales activities)
  • Category 7 (Employee commuting): Employee use of trains, buses, and private cars or motorcycles for commuting

[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)
• Calculation of greenhouse gas emissions is verified by PERSOL Process & Technology, a PERSOL Group company. To further ensure the accuracy of emissions, we are considering seeking third-party verification in the future.

[Impact of COVID-19 Pandemic]

Greenhouse gas emissions in fiscal 2020 (April 1, 2020 to March 31, 2021) and fiscal 2021 (April 1, 2021 to 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) Greenhouse gas emissions for the fiscal year ending March 31, 2022 include some estimates that have not yet been finalized. These will be replaced with actual values once the collection of all actual values has been completed.

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

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 will become carbon neutral*. Programmed will continue to pursue further sustainability initiatives in its ongoing business development.
* a carbon neutral site means that the greenhouse gas emissions relating to the site’s business operations (total of scope 1,2) is net zero.

Launch of engine testing services with carbon-neutral (CN) fuel by PERSOL R&D

In September 2021, PERSOL R&D began performance, function, and durability testing services for engines using carbon-neutral fuel. In recent years, the automotive industry has made rapid advances in fuel efficiency and the development of electric vehicles. At the same time, there is an increasing need for testing engines using carbon-neutral fuels, an area which is attracting increasing attention in large commercial vehicles in which electrification is difficult due to their long driving range and high-power requirements, as well as in agricultural and construction machinery where infrastructure issues exist. PERSOL R&D aims to contribute to the realization of carbon neutrality in engines by leveraging its long-standing engine development technologies and working together with the commercial vehicle and agricultural/construction equipment industries, as well as with fuel producers.

Environmental considerations in office design

At the office design stage, we strive to reduce waste by using to the extent possible uniform specifications for furniture and fixtures. We are also taking steps including switching to LED lighting and consolidating trash collection at single locations to create environmentally friendly offices.

Environmental considerations in office life

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

• Liberalizing the work dress code, in principle
• Ensuring appropriate temperature settings of air conditioners
• Encouraging required approval for after-hours airconditioning
• Encouraging the use of personal, reusable water bottles
• Using PLA straws
• Setting up recycle bins for stationery and file folders
• Promoting recycling
• Posting electricity and energy conservation flyers
• Encouraging purchases of recyclable equipment
• Reusing company-use mobile phones

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.