Conducting Sustainability Management to Achieve Corporate Philosophy

Goals and KPIs

2030 Goal

Integrate a sustainability perspective into management and business activities, and have all executives and employees help create a better society by pursuing our mission and vision

2024 Goal

Deepen understanding of and support for sustainability through engagement with our philosophy and develop a management system to address sustainability issues

2030 KPIs

1. Establish sustainability management infrastructure with the cooperation of each division (assign a Chief Sustainability Officer, identify materiality, set goals and KPIs, disclose ESG information, etc.)
2. Conduct basic training on sustainability and ESG
3. Implement training on kubell's sustainability initiatives for new employees

Approach and System

In order to achieve sustainable growth and long-term corporate value enhancement through the pursuit of our mission and vision, we must continue to provide superior value through our business to solve issues faced by society and our stakeholders, please our stakeholders, and earn commensurate profits.

To this end, it is essential that we create a workplace where our employees, who are the main drivers of value creation in our business activities, can exercise their creatively with enthusiasm. We must also build an exceptional management foundation that can respond quickly and flexibly to changes in the business environment. However, it would be difficult to achieve the society depicted in our mission and vision alone. Thus, we must expand "co-creation" together with business partners who share our mission and vision.

It is essential for us to maintain a positive cycle whereby we communicate these activities with our stakeholders and investors through information disclosure and receive an appropriate evaluation from the capital market. This enables us to procure the medium- and long-term supply of financial capital necessary to support our growth.

We believe that managing from a more integrated and long-term perspective that understands and responds to the expectations and demands of all of our stakeholders, including customers and employees, is necessary to achieve sustainable growth and long-term enhancement of corporate value. Therefore, in November 2021, we made the CEO Office, which reports directly to the CEO, the main department in charge of promoting sustainability and ESG, with the CEO Office Manager, who is an executive, as the person responsible. We also established a system in which the Strategy Meeting and the Board of Directors carries out company-wide deliberations and makes decisions. The CEO Office identifies issues for achieving sustainable growth, formulates the strategies and plans necessary to address these issues, and implements management aimed at expanding value creation and enhancing value creation infrastructure in a company-wide, cross-functional manner.

Our company was listed on the Tokyo Stock Exchange Mothers Index (at the time) in 2019. However, we are in the midst of rapidly expanding our business and organization to achieve discontinuous growth, and with limited management resources, we are not able to respond to all issues. Thus, we intend to respond to issues in stages based on a rational assessment of our priorities and current organizational capabilities.

Please view the "Sustainability" page for details.

kubell's Main Initiatives

Executive Study Session on Sustainability

We invited outside experts to hold a study session for executives in January 2022 in order to further deepen understanding of sustainability and ESG. The session succeeded in deepening understanding of sustainability issues and the international trends that surround them, as well as ESG investment, SDGs, and other  trends that are important for our sustainable growth and value creation.

Dialogue with Experts and Identification of Key Issues

It is extremely important for us to properly understand the essential needs and demands of society and stakeholders, including capital markets. It is also truly important to respond to these needs and demands through our business activities in order to achieve sustainable growth and enhance our corporate value over the long term. In particular, there has been an increase in the potential impact of sustainability issues that companies have not fully recognized until recently, such as climate change and human rights issues, on management and business activities. As a result, the importance of properly understanding risks and opportunities through dialogue with stakeholders and implementing strategies in-house is also increasing.
In such an environment, we recognize that identifying key issues based on sustainability and ESG and addressing them from a medium- to long-term perspective is important for achieving our mission and sustainable growth.
We believe that hearing the opinions of both internal and external stakeholders is extremely important in moving forward. Therefore, in May 2022, we held discussions with six people including Mari Yoshitaka, the Representative Director of Virtue Design, Chatwork CEO Masaki Yamamoto, CFO Naoki Inoue, CHRO & VP of People & Branding Tomokazu Nishio, and Corporate Planning Office Manager Hiroyuki Horiuchi. Through these discussions, we exchanged diverse views and opinions on issues that our Group should consider from the perspectives of sustainability and ESG. We then used these opinions as a basis to further consider the Group's key issues.

Please view the "Sustainability Strategy" page for details.

Formulation of Medium- to Long-Term Targets (Goals & KPIs)

We considered our long-term ideals and established goals and KPIs to be achieved by 2030 in order to conduct initiatives to address key issues. Going forward, we will steadily carry out initiatives to achieve these goals by setting medium-term goals and KPIs (to be achieved by 2024).

Please view the "Value Creation Process to Achieve Our Mission and Vision" page for details.

Future Activity Roadmap

The first step toward achieving our 2030 goals is to deepen the understanding of all Group executives and employees regarding sustainability and ESG. It is essential that they understand the significance of these efforts to achieve our mission. To this end, we plan to carry out awareness-raising activities for both our philosophy (mission, vision, values) and sustainability/ESG in an integrated manner from February 2023.
We will then establish a company-wide sustainability management system based on this improved internal knowledge from fiscal year 2023 and begin activities toward achieving our 2030 goals. Furthermore, we will report the results of these activities on our website regularly to enhance the transparency and credibility of our activities.

Conducting Sustainability Management to Achieve Corporate Philosophy