SUSTAINABILITY

There are severe warning signs that the survival of the human race is at stake if the world does not work together to hasten decarbonization. In October 2020, Japan, the world’s fifth largest emitter of greenhouse gases, announced that it would reduce its greenhouse gas emissions by 46% in FY2030 compared to FY2013, with the realization of carbon neutrality in 2050 as a pillar of its growth strategy. With the mission of “Creating the Future of Energy,” ENECHANGE is committed to contributing to the 4Ds of Energy, four concepts that will help revolutionize the energy sector: Deregulation, Digitalization, Decarbonization, and Decentralization. Through active dialogue with stakeholders both inside and outside the company, we aim to create a sustainable society through the energy industry.

Those of us in the energy industry, which accounts for the majority of CO2 emissions, are required to take responsible action and make changes on our own.

The scale of the electric power market is expected to grow from the current 13 trillion yen to 18 trillion yen by 2050, thanks to electrification: the widespread use of electricity as the power source for various products and electric vehicles, making electric power a huge growth industry in a decarbonized society. To support this electrification, thermal power plants are being phased out and renewable energy is rapidly spreading. In order to cope with output fluctuations caused by the expansion of renewable energies, which generate unstable amounts of electricity, the importance of demand response, which allows flexible control of the consumer side, is expected to increase in the future.

As a category leader in the energy tech field, ENECHANGE will actively invest in people and future energy technologies to positively impact the energy industry and the realization of our decarbonized society that lies ahead.

Representative Director and CEO, ENECHANGE Ltd.

Yohei Kiguchi

Based on international indices such as SASB (Sustainability Accounting Standards Board), GRI Standards, and SDGs (United Nations Sustainable Development Goals), and through analysis of our external environment and feedback from our stakeholders, we extracted key, material issues that are highly relevant to our management to help improve our corporate value.

We gathered information on the expectations of our company through discussions with shareholders, investors, and key partners. We also gathered information on the expectations of our employees through the results of our regular employee surveys. Through these dialogues, we organized the material topics that arose.

Through discussions at meetings of the Board of Directors and the Executive Committee, we assessed the relevance of the identified material topics to our corporate strategy and identified issues to be addressed on a priority basis. As an energy tech company that promotes innovation in the energy industry, our goal is to transform the energy industry as a whole through the provision of cutting-edge technology services to energy companies that are required to change rapidly in order to realize a decarbonized society. Hence, with regards to ESG, our core business activities are in the environment (“E”) area, and we regard this as important for both our stakeholders and our company.

Our main business is to develop innovative services using technology from a market neutral position, focusing on the 4Ds of Energy including decarbonization, and we believe responding to climate change itself will lead to business growth.

Our Platform business for liberalization, and our Data business for digitization, decarbonization, and decentralization

Because it is important to become a highly sustainable corporate entity in response to the long-term vision of the energy industry, and to grow by flexibly adapting to changes in the external environment and technological innovation.

Developing a Platform business that focuses on recurring revenue with positioning in the energy vertical

To actively expand partnerships across multiple industry fields, both domestically and internationally, and to promote the resolution of issues in the energy industry, which will lead to a unique positioning and strong barriers for competitors to entry.

Partnership strategy for Platform business, collaboration involving investment in overseas ventures for Data business, etc.

As a responsible custodian of a large amount of data, including personal information, it is essential to maintain a robust data protection system at all times in order to prevent damage to corporate value caused by information leaks.

Disclosure of information security guidelines (planned), efforts toward DX certification

To create a comfortable working environment by actively promoting human resources with diverse backgrounds and values, and to provide appropriate compensation for value creation, which will lead to long-term organizational competitiveness.

Remote work, Work from UK, College system, Trusted FMV Stock Option®, Employee Stock ownership system, etc.

Because it is in the common interest of shareholders to have effective governance by knowledgeable outside directors who support appropriate risk-taking, and to construct and operate a compensation design in line with fair standards.

Skills matrix disclosure, Nomination and Compensation Committee, etc.

To become an organizational entity that maintains high ethical standards and compliance awareness and continues to learn the necessary lessons to achieve them and protect corporate value.

Formulation of Compliance Risk Management Committee, Compliance Hotline, and Values and linking them to evaluation

In order to ensure management transparency, we must ensure fair disclosure and provide prompt and proactive information disclosure to the capital markets based on accuracy, fairness and continuity, which will build shareholder trust.

Disclosure in English, proactive IR activities by CEO/CFO to institutional and individual investors, detailed disclosure of KPIs and risks