Initiatives to combat climate change (information disclosure based on TCFD recommendations)

Governance

The Board of Directors makes important management decisions and oversees business operations. It also deliberates and makes decisions on important matters such as policies for addressing risks and opportunities related to climate change and greenhouse gas emissions.
Aiming to respond in line with the TCFD recommendations, companywide cross-functional members and the ESG promotion office play a central role in analyzing climate change-related risks and opportunities through scenario analysis, considering countermeasures, and reporting regularly to the Board of Directors.

Structure

Risks and countermeasures based on scenario analysis

The following table summarizes the impact on business performance of the major risks identified and considered through scenario analysis.
For the scenario analysis, the two scenarios below were selected based on referenceable climate change scenarios.

2℃ scenario

This scenario assumes that global policy measures and technological innovations will advance to keep the average temperature rise below 2℃ by the end of the century, that social changes associated with the transition to a decarbonized society will have an impact on business, and that we will live in a society where transition risks and opportunities are apparent.

4℃ scenario

If no action is taken to address climate change, average temperatures will rise by about 4℃ by the end of the century. This scenario assumes a society in which increased natural disasters due to rising temperatures, etc., are likely to impact business, and physical risks and opportunities will materialize.

Summary

Risk category	Category	Content	Measure	Status of Implemented Measures	Financial impact
Physical risk	Extreme weather and natural disasters	Service disruptions caused by flooding, power conservation, and power outages	Choose data centers with excellent disaster preparedness and diversify locations	〇	High
Physical risk	Extreme weather and natural disasters	Internal infrastructure suspension	Install emergency generators to ensure employee safety	〇	High
Physical risk	Extreme weather and natural disasters	Voluntarily refraining or reduction of ad placement	Develop sales strategies appropriate to the situation	〇	High
Physical risk	Extreme weather and natural disasters	Slow service development	Create developmental and operational systems for remote work	〇	Medium
Physical risk	Extreme weather and natural disasters	Cooling consumer sentiment	Operate in harmony with consumer sentiment	〇	Medium
Physical risk	Technology	Increase in power consumption due to business growth (increased access rate)	Strive for greater efficiency through technological innovation and a transition to energy-saving equipment	〇	Medium
Transition risk	Extreme weather and natural disasters	Labor force migration due to high temperatures becoming commonplace in urban areas	Establish a remote work environment	〇	Low
Transition risk	Technology	Transition to low-carbon technologies	Encourage a gradual transition to energy-efficient servers and PCs	〇	Low
Transition risk	Reputation	Misinformation about climate change	Conduct third-party reviews or audits	〇	Low
Transition risk	Increased regulation	Carbon tax burden	Consider energy-saving measures in the workplace, switch to renewable energy sources, etc.	△	Low

Risk management

CyberAgent believes that assessing climate change as part of business risk is essential to carrying out risk management and ensuring business continuity.
We strive to identify physical risks such as extreme weather and flooding caused by climate change, develop BCP plans, and ensure widespread familiarization with manuals. The ESG promotion office also reports regularly to the Board of Directors on risks and measures related to climate change. It also monitors and assesses risks and disclosures related to climate change through internal audits.