Resolving Social Challenges through Services with Low Environmental Footprint

Response to climate change (information disclosure based on TCFD recommendations)

The Company promotes online, cashless and paperless migration, which has a low environmental footprint compared to conventional payment services. In addition, financial-related services such as lending, is offered to domestic and overseas operators involved in online and FinTech services that have a similarly low environmental footprint as the Company. Through such services, we aim to achieve the decarbonization of society and our customers and the transition to a carbon-free sustainable society.
In January 2023, the company endorsed the TCFD (Task Force on Climate-Related Financial Disclosures) recommendations.
The company will continue to work to expand climate change-related information disclosure as per TCFD recommendations.

The executive vice president bears responsibility for climate change issues at the Board and to reflect/incorporate all environment related issues to the Company’s management strategy and management targets. The management team including the president and executive vice president carries out deliberations on policies related to sustainability activities, reviews the progress, evaluates plans, reports the progress to the Board and compiles measures to reflect the feedback received. In addition, the Board receives periodic reports from the Risk Management Committee on its discussions, verifications and findings to help the Board monitor the responses and impact of climate related issues on the overall Company.

Based on scenario analysis methods recommended by the Task Force on Climate Related Financial Disclosures (TCFD), the Company identifies those potential risks and opportunities arising from future climate change. By referring scenarios presented by the Intergovernmental Panel on Climate Change (IPC) and International Energy Agency (IEA), we have identified the climate change related risks and opportunities based on scenarios related to changes in natural and social environments.

Estimated scenario (1.5ºC scenario)

• Rapid progress in the reduction of CO2 emissions arising from the transition to a decarbonized society
• Regulatory tightening from carbon pricing, etc.
• Changes in needs from heightened environmental awareness by stakeholders

Risks and Opportunities Associated with Climate Change
Classification Risks and opportunities Timeline Initiatives
Transition risk Policy,
・Increase in cost of business from implementation of carbon tax Medium-to long term ・Implementation of what is effectively renewable energy Market, at major data centers
・Loss of business opportunity from inability to fulfill the client’s needs for reducing environmental burden Medium-to long term
Evaluation ・Increase in fund procurement cost, recruitment cost and negative evaluation from stakeholders from being regarded as insufficiently responding to climate change issues Short-to medium term ・Promote ESG-related information disclosure
Physical risk Chronic ・Increase in electricity cost from higher burden on air-conditioning caused by the rise in average temperatures Medium-to long term ・Improve efficiency at data centers
・Impact to operations from spread of infectious diseases and wind/water disasters due to rise in average temperatures Medium-to long term ・Select data center locations less impacted by natural disasters
・Redundancy configuration of systems, dispersion and multiplexing of data centers
・Compilation of business continuity plans (BCP)
Acute ・Suspension of operations and services due to personnel loss, data loss and/or damage to data centers caused by abnormal weather and natural disasters Short-to medium term
Opportunity Market,
・Increase in demand for the Company’s services that enables online, cashless and paperless migration due to the increase in social demand for environmentally conscious management Medium-to long term ・Pursue current strategy of DX support
Evaluation ・Rise in corporate value and improved evaluation from stakeholders from aggressive involvement to tackle climate change problems Short-to medium term ・Promote ESG-related information disclosure
Risk Management
Recent years have seen a worsening of climate change issues, and services offered by the Company may also be impacting the climate and natural resources through CO2 emissions from electric power consumption. To combat this issue, the Risk Management Committee comprehensively undertakes an assessment of and response to natural disaster risks, including climate change.
The Company convenes the Risk Management Committee once every quarter to implement measures effectively and efficiently by incorporating climate related risks into the overall risk management. Risk incidents are classified into six categories according to the quantitative evaluation based on two metrics of monetary impact and frequency of occurrence. The foreseeable risks and general risks are evaluated and selected across the Company by employees above a certain position. Of those, risk incidents that exceed a certain threshold are designated as material risk, and each Division must consider and implement responses.
Consideration and response to the material risk is further deliberated by the relevant Division after incorporating the opinions of external experts. This is examined and debated at the Risk Management Committee and reported to the Board.
Indicators and Targets
In order to contribute to realizing a sustainable society, the Company is undertaking initiatives to reduce greenhouse gas (GHG) emissions related to business activities. In FY2022, the Company implemented what is effectively renewable energy for electric power consumptions at major data centers, which consume the bulk of business-use electricity. The Company will achieve zero GHG emissions (under Scope 1+2) in its operations, including offices and all other data centers, by FY2023.
In addition, in order to carry out supply chain engagements, the Company has commenced discussions with payment terminal manufacturers to assess GHG emissions during the manufacturing process and the appropriate measurement of electric power consumption at the time of offline payment, in order to accurately measure GHG emissions of payment terminals which constitute the bulk of Scope 3 emissions.
GHG Emissions
(Unit:t-CO2) FY2019 FY2020 FY2021 FY2022
Scope1*1 0 0 0 0
Scope2*2 Market-based 1,559 1,736 1,883 308
Location-based - - - 929
Scope3*3 - - 24,015 22,462
Category1(product procurement and services) 15,178 10,240
Category2(Capital Goods) 5,181 8,439
Category11(use of products sold) - - 3,344 3,418
Other - - 312 365
* Note: Compiled from electric power usage at offices and data centers of major GMO-PG consolidated companies
*1 Scope 1: Direct emissions from owned or controlled sources
*2 Scope 2: Indirect emissions from the generation of purchased electricity, heating and cooling, etc.
*3 Scope 3: All other indirect emissions that occur related to the Company’s activities
Trend of GHG Emissions
Third Party Certification
In order to ensure the reliability of GHG Emission, the Company has obtained an independent third-party certification from SOCOTEC Certification Japan.



Initiatives to Counter Climate Change

The Company supports the merchant’s migration to paperless operations by providing services to digitalize invoices.

Support the digitalization of electric bill payment promoted by TEPCO Energy Partner Co., Ltd.

Expansion of "GMO Payment After Delivery" and "Electronic Barcode Type" that do not require paper invoice