Disclosure in accordance with the TCFD Framework

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Policy Addressing climate change (information disclosure based on TCFD recommendations)Case Studies

Policy

We believe that a healthy global environment is essential for the lives of plants and animals, including humans, as well as for sustaining HIS Group's business.
Accordingly, we work to conserve resources and reduce the environmental footprint of our business activities.
Moreover, we consider it our mission to provide opportunities for people to experience and learn about our planet's rich environment and biodiversity as something we can do for a sustainable world as a company with a heritage in the tourism industry.

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Disclosure in accordance with the TCFD Framework

The HIS Group has expressed its support for the recommendations of the Climaterelated Financial Disclosure Task Force (TCFD) and joined the TCFD consortium to understand the impact of climate change-related risks and opportunities on HIS' business activities through (1) governance, (2) strategy, (3) risk management, and (4) indicators and targets.
We will continue to promote and improve our disclosure in line with the TCFD recommendations.

Addressing climate change
(information disclosure based on TCFD recommendations)

Strategy

The HIS Group has conducted a climate change scenario analysis in accordance, and has compiled climate change risks, opportunities, associated impacts, and corresponding measures that are relevant to its businesses.
We will promote priority measures for items with high risk significance and long-term impact.

Physical Risk

Impact	Item of risk/opportunity	Measures	Period
High	Increasing frequency of typhoons, heavy rains, heat waves, etc. and increasing severity of damage	Customer response based on crisis management manual Enhancement of Pre-travel support services (cancellation support) Providing safety and security using a global network (DX promotion) Thorough disaster prevention manuals and disaster prevention training for owned facilities and vehicles Improvement of stockpiles and evacuation system	Short-Long
Medium	Suspension or delay in service provision due to data center (DC) damage caused by natural disasters	Review data center configuration Migrate servers to the cloud Redundancy of critical data	Short-Medium

Transition risk

Impact	Item of risk/opportunity	Measures	Period
High	Changes in customer behavior and preferences due to increased interest in climate change	Reducing plastic products and promoting paperless use Providing environmental protection experience programs Promoting the conversion of owned buses and vehicles to EVs, FCVs, etc. Promoting the conversion of owned buses and vehicles to EVs, FCVs, etc. Providing new experience value Introduction of environmentally friendly means of transportation Proactive information disclosure	Short-Long
Medium	Cooling consumer sentiment due to rising service prices due to soaring fuel prices	Promotion of micro tourism Stimulating demand for travel Providing new experience value	Short-Long
Medium	Decline in services due to environmental changes such as rising temperatures and sea levels, and the enactment of new regulations, laws, and ordinances	New product development/destination development Development of products aimed at protecting the natural environment (in collaboration with tourism bureaus and local governments) Expansion of businesses other than travel industry	Medium-Long
Medium	Decrease in corporate value and decrease in investment and business partners when climate change efforts are judged as insufficient	Proactive information disclosure Investment in renewable energy	Short-Long
Low	Increase in business operating costs due to restrictions on vehicle operation and taxation according to emissions because of stricter regulations on GHG (greenhouse gas) emissions	Promoting the conversion of owned buses and vehicles to EVs, FCVs, etc. Investing in and introducing environmentally friendly means of transportation Understanding supplier GHG emissions and considering sustainable procurement	Medium-Long
Low	Increase in business operating costs due to the introduction of carbon pricing	Energy saving and introduction of renewable energy Promoting the conversion of owned buses and vehicles to EVs, FCVs, etc. Reducing plastic products and promoting paperless use	Long

Short (~FY2024), Medium (FY2025~FY2026), Long (FY2027~FY2030)
*01 December 2023

Governance

Its Sustainability Committee, which is chaired by the president and representative director, takes the lead in discussing important policies and measures, monitoring progress toward targets, and promoting sustainability initiatives.
This is done in collaboration with the Risk / Compliance Committee, business execution departments, and domestic and overseas subsidiaries.
Important matters discussed in the Sustainability Committee are submitted to the Board of Directors for deliberation and approval.
Further, all employees strive to foster a corporate culture and environment that respects the rights and positions of stakeholders and upholds sound ethics in business activities in accordance with the HIS Group Code of Conduct.

Sustainability Promotion Structure

Risk management

The Sustainability Committee and the Risk / Compliance Committee collaborate to identify, evaluate, and manage climate-related risks.

The Risk Management Office collects information on business risks for the Group as a whole, including risks related to climate change, and shares its findings with the Risk / Compliance Committee.
The committee develops a management system for identifying, analyzing, evaluating, and responding to potential risks, and conducts activities to prevent risks from materializing.

The Sustainability Committee engages in activities such as ascertaining risks associated with climate change, analyzing them in accordance with the framework of the TCFD recommendations, discussing important policies and measures related to the environment, and monitoring progress toward targets.
It provides reports to the Board of Directors as deemed necessary.