Material Issues,
Targets and Results

In June 2022, our Board of Directors identified key material issues (priority issues) relating to the environment, society, and governance. Subsequently, in 2023, we set quantitative targets for each of these issues for the fiscal year ending May 31, 2030. We will strive to resolve these issues through our core business, thereby contributing to achieving the United Nations Sustainable Development Goals and, consequently, to building a sustainable society.

Identifying
Material Issues

  • Identification process – 1

    Selecting candidates for material issues

    In addition to referring to international guidelines and rules, such as the goals and targets in the Sustainability Accounting Standards Board (SASB) standards and the Sustainable Development Goals (SDGs), industry trends and the perspectives of ESG rating agencies are also taken into consideration in identifying issues that are highly relevant to the Group. Material issue candidates are selected from external and management perspectives through discussions and other communication between Directors and institutional investors.

  • Identification process – 2

    Assessing the importance of issues

    The issues selected in Identification process 1 are each assessed along two axes: the issues importance to society (stakeholders) in terms of achieving a sustainable society and achieving the Groups vision and driving business growth. All Directors conduct these assessments individually, incorporating expertise and diverse perspectives to visualize the prioritization of the issues.

  • Identification process – 3

    Discussions and decisions by the Board of Directors

    The Board of Directors discusses and deliberates the results of the assessments in Identification process 2, and identifies material issues. The content of the identified issues is reflected in strategic initiatives under the oversight of the Directors who serve as issue owners. At the Board meeting in August 2022, 10 material issues were identified and organized into five areas. At the Board meeting in August 2023, long-term quantitative targets for FY2029 were formulated.

5 Priority Areas and 10 Material Issues

  • Area 1

    Balance Security and Convenience

    Besides convenience, we also implement measures to ensure that our employees maintain data privacy and information security, thereby providing society with a highly safe and stable service.

    Material issues

    1. 1. Provide safe and stable infrastructure services
    2. 2. Ensure robust protection of data privacy and information security

    Metrics and targets for fiscal year ending May 31, 2030 *1

    • Number of major incidents: 0
    • Proportion of those qualified as Protection of Individual Information Person: maintained at 80% or higher

    Results for fiscal year ended May 31, 2025 *1

    • Number of major incidents: 0
    • Proportion of those qualified as Protection of Individual Information Person: 90.6%
  • Area 2

    Transform Work Through Innovative AI Transformation Solutions

    To become business infrastructure, we will leverage our strengths in digitization to develop and provide innovative AI transformation solutions that substantively improve social and economic productivity.

    Material issues

    1. 3. Promote AI transformation solutions that improve productivity
    2. 4. Create innovative business infrastructure

    Metrics and targets for fiscal year ending May 31, 2030 *1

    • Number of items converted from analog to digital information using our solutions: 500 million
    • Number of users of our solutions: 20 million people

    Results for fiscal year ended May 31, 2025 *1

    • Number of items converted from analog to digital information using our solutions: 270 million *2
    • Number of users of our solutions: 9.80 million people *2
  • Area 3

    Respect Employee Diversity and Producing Innovation

    To produce innovation that helps solve business challenges through the power of encounters, we promote creation and provision of opportunities and environments for our diverse workforce to succeed.

    Material issues

    1. 5. Promote recruitment, development, and success of human resources
    2. 6. Promote diversity, equity and inclusion

    Metrics and targets for fiscal year ending May 31, 2030 *1

    • Proportion of recruitment through referrals: 35%
    • Unipos *3 (peer bonus) posting rate: 80%
    • Ratio of female employees in management positions: 30% or higher
    • Ratio of female employees: 45% or higher

    Results for fiscal year ended May 31, 2025 *1

    • Proportion of recruitment through referrals: 12.1%
    • Unipos *3 (peer bonus) posting rate: 59.5%
    • Ratio of female employees in management positions: 20.2%
    • Ratio of female employees: 37.0%
  • Area 4

    Establish a Firm Management Structure to Support Rapid Business Growth

    To support our growth under a multiproduct structure, we will reinforce our management structure by strengthening corporate governance and ensuring compliance.

    Material issues

    1. 7. Strengthen corporate governance
    2. 8. Ensure compliance

    Metrics and targets for fiscal year ending May 31, 2030 *1

    • Ratio of female Directors: 30% or higher
    • Number of significant compliance violations: 0
    • Proportion of employees receiving compliance-related training: 100%

    Results for fiscal year ended May 31, 2025 *1

    • Ratio of female Directors: 20.0%
    • Number of significant compliance violations: 0
    • Proportion of employees receiving compliance-related training: 100%
  • Area 5

    Conserve the Environment Through Business

    We will promote environmental conservation by addressing climate change issues through our business activities, including advancing DX, supporting paperless work, and introducing environmentally friendly solutions.

    Material issues

    1. 9. Address climate change issues
    2. 10. Use natural capital efficiently

    Metrics and targets for fiscal year ending May 31, 2030 *1

    • Scope 1+2 *4: carbon neutral
    • Number of uses of paperless functions in our solutions: 120 million

    Results for fiscal year ended May 31, 2025 *1

    • Scope 1+2 *4: 575 t-CO2
    • Number of uses of paperless functions in our solutions: 20 million *2
  1. *1 Results and targets presented here are for the Company on a non-consolidated basis.
  2. *2 Results for the Company’s solutions are aggregated for Sansan, Bill One, Contract One and Eight.
  3. *3 Unipos is a solution centered on the peer bonus® system provided by Unipos, Inc.
  4. *4 Scope 1 is calculated by aggregating direct GHG emissions from our own offices and facilities. Scope 2 is calculated by aggregating by indirect GHG emissions from the use of purchased electricity and thermal energy in each office. Past figures have been updated in line with refinements to the calculation methods and scope of coverage.

Materiality Map