Climate Change (Information Disclosure Based on TCFD Recommendations)

With the aim of becoming a company capable of contributing to society through the creation of business, the Prestige International Group creates services that resolve social issues by endeavoring to solve social problems and contribute to local communities through business activities.

Accordingly, with the damage caused by global climate change and natural disasters worsening in recent years, the Group regards climate change as a top priority; therefore, the company decided to accurately assess the impact of climate change on the Prestige International Group and proactively promote a variety of different environmental measures, including the reduction of CO2 emissions.

In line with the TCFD framework, moving forward the Group will endeavor to analyze the risks and opportunities that climate change may bring to Prestige International, reflect these in the management strategies, and disclose information based on recommendations.

TCFD Task Force on Climate-Related Financial Disclosures

Governance

The Prestige International Group established a Sustainability Committee to consider issues related to the environment and society’s needs. The committee generally meets every quarter with ad hoc meetings held as necessary. The Sustainability Committee also examines the relationship between management activities and business risks as considered by the Risk Management and Compliance Committee by evaluating the possibility and frequency of such risks occurring and their potential impact in the event that they do occur, ascertaining their significance, and submitting reports to the Executive Board or the Board of Directors as necessary. Under the supervisory system overseen by the Board of Directors, these issues and risks are reflected and addressed the Group's strategies.

Corporate Governance System

Corporate Governance System chart

Scenario Analysis

Analysis Method

Scope of Analysis

Prestige International Group Overall

Definition of Importance

In assessing the financial impact of climate change, the impact classification is based on the criteria for timely disclosure by the Financial Instruments Exchange in relation to revisions to earnings forecasts, differences between forecasts and financial results, and the damage caused by disasters or the damage incurred in the course of business operations; an anticipated 10% increase/decrease in consolidated net sales or 3% increase/decrease in consolidated net assets is regarded as "Large" impact.
The quantitative information in the scenario analysis is based on the company’s judgment using reference scenarios. Although care has been taken to improve the accuracy of the analysis, it contains many uncertain factors.

Impact
classification
Criteria Amount
Large Ratio to consolidated net sales: 10% or higher 7.1 billion yen or higher
Ratio to consolidated net assets: 3% or higher 1.6 billion yen or higher
Medium Ratio to consolidated net sales: 5% or higher/less than 10% 3.5 billion yen or higher/less than 7.1 billion yen
Ratio to consolidated net assets: 1.5% or higher/less than 3% 800 million yen or higher/less than 1.6 billion yen
Small Ratio to consolidated net sales: less than 5% less than 3.5 billion yen
Ratio to consolidated net assets: less than 1.5% less than 800 million yen

* Calculated on the basis of actual performance for the period ended March 2026.

Setting of Scenarios

When considering the scenario analysis, the company referred to materials published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC)—organizations that have high international credibility, are referenced in TCFD recommendations and are able to cover a wide range of business areas—and set the following two scenarios.

Set Scenario Less than 2°C 4℃
Worldview Bold policies and regulations will be implemented and technological innovation promoted in order to keep average temperature increases under 2°C.
Today’s society is one in which there is a high possibility that social changes accompanying the transition to a decarbonized society will affect business.
Physical risks will increase without the promotion of different policies and laws and regulations. Global warming will continue to progress, and natural disasters such as torrential rains and floods will intensify.
Today’s society is one in which there is a high possibility that climate change will affect business.
Reference scenario Transition aspects IEA WEO2021
IEA NZE2050, etc. IEA STEPS, etc.
Physical aspects IPCC (AR6) SSP1-1.9, etc. IPCC (AR6) SSP5-8.5, etc.
Risks and opportunities Risks and opportunities can easily materialize in terms of transition aspects. Risks and opportunities can easily materialize in terms of physical aspects.

Analysis Results

Classification Impact on Business Timeline
*1
Impact
Less than
2°C
4℃
Transition risks Policies, laws/
regulations
  • Taxation of CO2 emissions through introduction of a carbon tax
  • Increase in business costs such as fuel costs
Medium to
long term
Small Small
Technology
  • Increase in purchasing costs for environmentally friendly products and services (electricity; office supplies such as paper, electric vehicles (EVs), etc.)
  • Increase in construction costs for new BPO centers due to ZEB and zero-carbon buildings
Short to
long term
Small Small
Market
  • Inability to keep up with needs for electric vehicles (EVs) in the automotive business
  • Inability to meet needs for the provision of services accompanying lifestyle changes toward a decarbonized society
Short term
(*2)

(*2)
Reputation
  • Impact on stock prices/sales and loss of business opportunities due to delays in climate change countermeasures
  • Difficulty securing human resources
Short term
(*2)

(*2)
Physical risks Acute
  • Decrease in revenue due to suspension of operations of BPO centers as a result of natural disasters, such as typhoons, torrential rains, and floods
  • Costs incurred for restoring the infrastructure for business continuity at affected BPO centers (including relocation costs) and decrease in assets value
  • Employees being unable to go to into the office to work due to natural disasters, such as typhoons, torrential rains, and floods
Medium term Small
(*3)
Large
(*4)
Chronic
  • Increase in costs for improving workplace environments to mitigate employee health problems (heat stroke, spread of infectious diseases, increase in respiratory diseases, etc.) expected to result from rising temperatures
Long term Small Small
Opportunities Energy resources/
resource efficiency
  • Construction and operation of energy-efficient BPO centers
Long term
(*2)

(*2)
Services/markets
  • Acquisition of new contract work in response to the growing BCP needs of companies
Medium to
long term

(*2)

(*2)
  • Increased demand for electric vehicles (EVs) in the automotive business
Short term
(*2)

(*2)
  • Creation of services that respond to lifestyle changes toward a decarbonized society
Medium to
long term

(*2)

(*2)
Resilience
  • Ensuring business continuity and stability by strengthening the backup system among BPO centers
Long term
(*2)

(*2)
  1. *1 Timelines for full realization of risks and opportunities Short-term: 2025; Medium-term: 2030; Long-term: 2050
  2. *2 At this stage, it is difficult to collect sufficient information and assess the extent of the impact on business and finances.
  3. *3 In the less than 2°C scenario, it is anticipated that the frequency of natural disasters, such as typhoons, torrential rains, and floods, will increase, but there will be no natural disasters that directly affect business continuity at BPO centers.
  4. *4 In the 4°C scenario, the maximum impact would be one of the BPO centers flooding and operations being suspended.

Strategies

  • The Prestige International Group operates contact centers (BPO centers) mainly in the Tohoku region. The main sources of CO2 emissions in Scope 1 and Scope 2 are electricity and gas consumption at BPO centers and fuel consumption by service vehicles for roadside assistance services.
  • In order to reduce CO2 emissions, the company will progressively introduce renewable energy and replace roadside assistance service vehicles with electric vehicles (EVs). Reducing CO2 emissions not only reduces the company’s environmental impact but also mitigates the financial impact of carbon taxation.
  • With regard to transition risks, the risk of increased costs from policies, laws, and regulations was identified in both the under 2°C and 4°C scenarios. However, the financial impact on the Prestige International Group envisioned for 2030 is shown in the table below, and the Group ascertained that the financial impact would be 'Small' if the above measures were implemented.
  • With regard to physical risks, the Group has ascertained that the financial impact on the company of the 4°C scenario would be 'Large', mainly because of the risk of flooding affecting BPO center operations as a result of the anticipated increase in the severity and frequency of natural disasters in addition to rising sea levels. The Group will continue to implement measures to minimize the impact on business continuity by further strengthening the backup system among BPO centers and adopting stricter location conditions for establishing new BPO centers. At the same time, in order to ensure employee safety, the Group will continue conducting disaster drills and reviewing stockpile contents and quantities.
  • Customer needs related to electric vehicles (EVs) present both risks and opportunities for the Prestige International Group. The Group has a training facility, Toyama Training Field, which allows the company to efficiently and intensively conduct training mainly on roadside assistance services, and the Group recognizes that strengthening its response to EVs could bring opportunities.
  • We have launched the “On-Site EV Emergency Recharging Service,” using our existing service network to respond to cases where EVs run out of power while driving, enabling vehicles to be recharged directly on-site without towing to a charging station, and as of May 2023, the service has been deployed nationwide across all 47 prefectures in Japan.

Financial Impact on the Prestige International Group Envisioned for 2030

Based on FY2020 emissions, the Group estimates that carbon tax for the Prestige International Group will be approximately 163 million yen. However, by systematically introducing renewable energy and electric vehicles (EVs) in order to achieve our company’s CO2 emissions reduction targets, the Group estimates that the carbon tax can be reduced to approximately 81 million yen.

Item Financial Impact
Carbon tax *1 81 million yen
Cost of introducing renewable energy 20-29 million yen
Cost of carbon offsetting *2 93 million yen
  1. *1 Calculated based on the carbon price in developed countries in 2030. (USD130 (IEA NZE2050)); Exchange rate JPY/USD 159.88 (March 31, 2026)
  2. *2 Calculated based on the average sales price of J-credits and the price of Green Power Certificates in March 2026.

Risk Management

Process for Identifying and Assessing Climate-related Risks

Within the Prestige International Group, the Sustainability Committee identifies issues and risks related to the environment and society’s needs and considers these along with the risks related to management and business activities that are considered by the Risk Management and Compliance Committee. The Sustainability Committee reviews the issues and risks considered by both committees and establishes their relationships by selecting risks and opportunities accompanying climate change that are important to the Group. The Committee then evaluates the significance of the selected climate change-related risks and opportunities based on the likelihood of their occurrence and their financial impact on business.

Process for Managing Climate-related Risks and Integration into the Risk Management System Overall

Conventionally, the Risk Management and Compliance Committee has been responsible for determining and developing the risk management policies of the Prestige International Group, formulating risk management regulations and verifying their operational status, responding to crises, and other matters related to risk management overall. With regard to climate change-related risks, in addition to the above, the Sustainability Committee—a body established for the purpose of discussing initiatives for solving environmental and social issues—identifies and considers climate-related risks related to business activities and identifies high-impact significant risks. Related transition risks and physical risks are identified and assessed, including scenario analysis, in accordance with the framework of TCFD recommendations. With regard to the identified risks, under the supervision of the Risk Management and Compliance Committee and the Sustainability Committee, the relevant departments formulate, implement, and report on measures to address climate change, and both committees work together to check the progress of these measures. In addition, the Sustainability Committee consolidates, discusses, and then summarizes the status of the Group's overall response, reporting important matters to the Executive Committee and the Board of Directors under the supervision of the CEO and reflecting and addressing these in the Group's strategies as corporate risks to the Group under the supervision of the Board of Directors.

Targets

Based on the results of the scenario analyses, the Prestige International Group has set CO2 emission reduction targets in order to reduce the risks accompanying climate change. 

Indicator Target
2030 2050
CO2 emission reduction rate
(Scope 1, 2; compared to FY2021.3)
50% 100% (net zero)

Past CO2 Emissions Performance and Targets for 2031 and 2051

【unit;t-CO2

Item FY2023.3
performance
FY2024.3
performance
FY2025.3
performance
FY2026.3
performance
2030
targets
2050
targets
Scope 1 Emissions from gasoline and diesel oil 3,802 4,133 4,616 5,274 1,550 0
Emissions from LPG, LNG, and city gas 1,566 887 846 913 683 0
Total for Scope 1 emissions 5,367 5,019 5,462 6,188 2,234 0
Scope 2 Total for Scope 2 emissions 4,037 1,673 1,608 3,320 1,688 0
Total for Scope 1 and 2 emissions 9,405 6,692 7,070 9,507 3,921 0

* If the electricity consumption of some overseas subsidiaries is unknown, a rough estimate is calculated based on electricity rates, the country’s electricity rate market, and office floor area.

Initiatives to Reduce CO2 Emissions

The Prestige International Group will implement the following initiatives aimed at achieving the CO2 emissions reduction targets in order to reduce the risks accompanying climate change.

Scope 1(Direct emissions from fuel combustion)

By converting city gas to CN gas, we will reduce CO2 emissions by 1,300 t-CO2 annually.

→Gradually change city gas, etc., used at each BPO center to CN gas (carbon neutral gas) by 2030, reducing CO2 emissions by approximately 1,300 t-CO2 annually by the fiscal year ending March 2031.

CN Gas Introduction Status

BPO Center Energy Introduced Date of Introduction
Akita BPO Main Campus Tobu Gas Co., Ltd.
“City Gas with J-Credits”
Apr. 2025
Toyama BPO Town Nihonkai Gas Co., Ltd.
“Carbon Neutral City Gas”
Jan. 2023
Akita BPO Nikaho Campus Nikaho Gas Co., Ltd.
“Carbon Neutral City Gas utilizing J-Credits”
Apr. 2023
Akita BPO Yokote Campus Tobu Ekika Sekiyu Co., Ltd.
“Carbon Neutral LP Gas”
Jul. 2023
Iwate BPO Fortress Ichinoseki Gas Co., Ltd.
“Carbon Neutral LP Gas”
May 2024

By converting company vehicles to EVs, we will reduce CO2 emissions by 1,000 t-CO2 annually.

→On the assumption that service vehicles such as vans for a wide range of applications and large vehicles for tow trucks will be electrified and marketed in the future, we will gradually replace approximately 240 of the Group's approximately 450 company vehicles with EVs by the fiscal year ending March 2031, aiming to reduce CO2 emissions by approximately 1,000 t-CO2 annually.

Response to the Spread of EVs

Premier Assist Inc., a group company, is engaged in the installation of EV charging stations. Within our group, charging stations have also been installed at directly operated sales offices and domestic BPO centers, contributing to the development of EV charging infrastructure in Japan.
As part of these efforts, we have launched the “On-Site EV Emergency Recharging Service”, which uses our existing service network to respond to incidents where EVs run out of power while driving. The service enables vehicles to be recharged directly on-site, without the need for towing to a charging station. As of May 2023, this service has been rolled out nationwide across all 47 prefectures in Japan.

We will continue to work on developing services and systems to address new demands surrounding the mobility society, as well as to solve issues arising from changes in society and the environment.

Scope 2(Usage of electricity supplied by other companies)

Environmental measures model facility “Iwate BPO Fortress”

We will position the 'Iwate BPO Fortress,' which opened in June 2024, as a model facility utilizing 100% renewable energy, and introduce an on-site solar PPA in collaboration with JERA Co., Inc.

Measures to be implemented at existing and newly established BPO centers

  • We are promoting the introduction of the latest energy-saving equipment (lighting, air conditioning, communication equipment, etc.).
  • By introducing an off-site corporate PPA in March 2025, we established a system to cover approximately 30% of the electricity used at our BPO centers in the Tohoku region with raw green electricity derived from solar power plants.
The status of renewable energy introduction is shown in the table below.
BPO Center Energy Introduced Date of Introduction
Akita BPO Nikaho Campus Tohoku Electric Power Co., Inc.
Locally-produced for locally-consumed CO2-free electricity plan
“Akita E-Ne! Option 100% Hydropower”
Apr. 2023
Niigata BPO Uonuma Terrace Enet Co., Ltd.
Decarbonization support menu “EnneGreen BASIC”
Apr. 2025
Iwate BPO Fortress JERA Co., Inc.
On-site solar Power Purchase Agreement (PPA)
Jun. 2024

For CO2 emissions that cannot be reduced, the carbon offset system is utilized.