Disclosure based on TCFD recommendations

Supervisory Committee members, as well as division heads andReputation

Change inreputation
fromcustomers

The momentum for decarbonization is growing
throughout the supply chain. Clients may
require their suppliers to reduce emissions anddisclose relevant information.
In particular, the automotive industry, which
accounts for a major part of our customer base,is making much progress in this area than otherindustries. If our efforts are deemed insufficient,
there is a risk that our reputation will bedamaged, leading to a decrease in sales. Inaddition, significant costs may be required toaddress these issues.

AcuteIntensifying
extremeweatherevents(typhoons,
torrentialrains,landslides,storm surges,etc.)

If our clients are adversely affected by increased
natural disasters causing operation downtime,etc., our sales may decrease due to reduced
demand for engineers as a result of R&D budget
cutbacks.
Also, in the event that our offices and training
facilities are affected by such disasters, costs
for recovery and relocation may be incurred.

(including the President and CEO), Directors who are Audit andtheir awareness of environmental issues and promote environ-managers. The Committee is held four times a year. The Com-mental activities.

mittee promotes and manages the status of sustainability issues● We will comply with environmental laws and regulations andand initiatives, including those related to climate change.

strive to disclose appropriate information. We will also collabo-

The topics deliberated in the Committee are reported to therate with local communities and other stakeholders in an effort

Board of Directors. The Board then deliberates and adopts theto achieve a more sustainable society.

resolutions on important risks and opportunities related toTransition(1.5 and2°C
scenarios)

climate change, gives instructions on how to deal with them,Governanceand supervises the progress of such initiatives.

As we have rated climate change as a high-priority issue, weStrategy

have established the Sustainability Committee as a special
committee for discussing sustainability-related issues including

As our social environment continues to change on a global

climate change. This Committee is established directly underscale, we believe that dealing with social issues, such as

the Board of Directors, and reports and submits the topics it

initiatives based on the recommendations from the Task Forcediscusses to the Board, which then deliberates and makes

on Climate-related Financial Disclosures (TCFD), is an important

decisions on them. The content of such discussions will bemanagerial agenda.We will strive to build an internal system of

disclosed externally and reflected in the Company’s manage-recruitment, training, and sales with carbon neutrality as a main

ment policies and various initiatives.

pillar of our business activities.

Physicalimpact(4°Cscenario)

ChronicIncreased
averagetemperature

Rising average temperatures will increase theuse of air conditioning, which may increase
costs at all our business and training facilities.

The main members of the Committee consist of Directors who

Artner conducts scenario analysis by identifying key risks and opportunities related to climate change and carrying out qualitative assessments of their impacts. For the first timein our scenario analysis, we included our main business area of engineer dispatching while using two scenarios (4°C scenario and combined 1.5°C and 2°C scenario) to examine
the impact of climate change in the year 2030.We extracted risks and opportunities, and the degree of impact on our business activities was evaluated on a three-point scale oflarge, medium, and small.

Market23

Change indemand forimportantproducts

ARTNER CO., LTD. Annual Report 2023

M e di u mTransition(1.5 and2°C
scenarios )A low-carbon society may be promoted, which
will lead to an increase in the demand for
products using low-carbon technologies. Insuch a case, our sales may increase due to anincreased demand for the dispatch of engineers
to our existing clients and new clients.

Since the Company’s main customers belong to theautomotive industry, actively attracting engineers
who can deal with the design and development
processes that support the shift to zero-emission
vehicles (ZEVs) may lead to increased demand forthe dispatch of engineers, which could result inhigher sales.
The advancement of low-carbon technologies has
accelerated the speed of development of low-carbon
business. Enhancing our recruitment and training
systems as well as our services to meet theincreasing number of requests from clients could leadto increased sales.
If extreme weather conditions increase, along with arising demand for seasonal products such as air
conditioning products that can deal with higher/lower
outdoor temperatures, this may lead to themanufacturers’ increased demand for the development of HVAC equipment, resulting in growing
demands for the dispatching of engineers andincreased sales.

Evaluation

Advances in
low-carbon
technologies

Our main customers are in the automotiveindustry, which requires us to provide engineers
who can develop products related to low-carbon
technologies. If we are slower than ourcompetitors to respond to these technologies,
our engineers’ skills may be considered obsolete
and the demand for the dispatch of engineers
may shrink, resulting in decreased sales.
If new technologies need to be incorporated,costs for information gathering and training mayincrease.

Consideration: opportunities

OngoingeffortExamples Examples ofof ourour activities toresponse
achieveto risks
opportunities

As the entire supply chain of theautomotive industry is making aneffort to reduce emissions, if webecome recognized as a leader inaddressing climate change issues,
this could lead to increased sales.

−If rising outdoor temperatures
increase the need for safer and more
comfortable indoor temperatures, themanufacturers’ demand for developing HVAC equipment will increase,which may result in an increased
demand for the dispatching of ourengineers and increased sales.

Participate in
the automotive
industry,etc., our main
customers

ment Meeting as part of its effort to clarify the Company’s
approach to risk management and future initiatives, and to practice risk management as an enterprise-wide commitment. This
Meeting, established under the control of the Board of Directors, identifies risks that need to be addressed among various
such risks, and manages progress on an ongoing basis. The

Examples of ouractivities toachieve opportunities

Contribute to the development of customers’
low-carbon products bydispatching engineers with
low-carbon skills
Acquire new clients bystrengthening the low-carbon skillsets of ourengineers"

Disclosed in
Medium-TermBusiness Plan
Participate in
the automotiveindustry,etc., our maincustomers

DisasterPreventionManual

Formulate a
BCP inpreparation
for thepotential
occurrenceof natural
disasters−−

Respond tothe growing
demand forthedevelopment of air
conditioning
products

Disclosed in
Medium-TermBusiness Plan
Participation in
the automotive
industry, etc.,
for major
customers

ReportInquiry

ReportCompliance and Risk
Management Meeting

Inquiry

Sustainability Committee

ReportCorporate
Planning andStrategy
DivisionManagement
Division

ReportEngineerBusiness
Division

Engineer Agency
Business Division

Technology
Development
Division

topics discussed in the Meeting are reported and submitted toParticipate in
the automotive
industry,etc., our main
customers

Disclosed in
Medium-TermBusiness Plan

Company has established the Compliance and Risk Manage-Examplesof our response
to risks

Ongoingeffort

Board of Directors

In response to major changes in the business environment, therisks such as climate change, sets priorities for responding toDisclosed in
Medium-TermBusiness Plan
L a rge

Consideration: risks

Response

L a rgeTechnology

Smallcategory

Business impact
Evaluation

Mediumcategory

Business impact

L a rgeLarge
category

Consideration: opportunities

Risk management《 Our response to risks and opportunities 》

Risk item

Evaluation

Consideration: risksEvaluation

Small
category

Response

L arge● We will provide education to our employees in order to raise

Mediumcategory

Business impact

Med i u m

are not members of the Audit and Supervisory Committee

Large
category

Business impact

L argeEnvironmental activity policy

Risk item

L argeWe will disclose information in accordance with the recommendations published by the Task Force on
Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB).

S m al l

Sustainability

the Board of Directors, which then deliberates and makeCapture demand
for the development oflow-carbonproducts such as
EVs and otherlow-carbon
vehicles, as wellas energy-saving
and renewableenergy equipment, etc.

decisions on such topics.

Indicators and targets

The main members of the Meeting consist of Directors who are

We calculate our Greenhouse gas (GHG) emissions.Our goal for

not members of the Audit and Supervisory Committee (includingthe President and CEO), Directors who are Audit and Supervisory Committee members, as well as division heads and managers. The Meeting is held once per month.

FY2051 is to achieve net zero GHG emissions.
(Reduce CO2 emissions by 7.3t by FY2025 , compared withFY2021 levels)
Greenhouse gas (GHG) emissions (Scope 1 and Scope 2)
Description

scope 1scope 2

Use of fuel for
rent-a-cars
Use of electricity
at our locations
Total

Unit : tCO2

FY2051 FY2024 FY2023 FY2022 FY2021
Target Target Result Result ResultNetzero

111826

82.3

79.3

82

93.3

97.3

10886

ARTNER CO., LTD. Annual Report 202324

Sustainability

Human Resource Strategy

Organization

Declaration for health andproductivity management

The Director/Head of the Management Division will serve as theMental health training for managers byclinical psychologists

Based on Artner’s management philosophy of being anoverall supervisor and the Management Division’s General

Mental health training by clinical psychologists was offered for

Affairs and Human Resources Group will function as the Healthour managers and sales staff. The Company supports theand Productivity Management Promotion Office to plan,

physical and mental health of our employees through mental

operate, and promote different initiatives.

health measures, including primary prevention through stress

In promoting the initiatives, these stakeholders will collaboratechecks (self-care), secondary prevention through mental healthwith the Health and Safety Committee, industrial physicians,

management by managers, mental health care by clinicaland health insurance societies, and report on the progress atpsychologists, and establishment of health consultation desks

the Sustainability Committee meeting.

(health insurance societies, etc.). Managers and staff will

Engineer Support Company, we at Artner believe that ensuring
the health and peace of mind of employees at work will
eventually result in achieving the happiness of all the employees
and reflection within the company.
Under our mission to promote human resource development
and the happiness of all the employees, we declare that we will
work to create a workplace environment where each and every

continue to support the mental wellbeing of employees byemployee can work vigorously and in good mental and physicalnoticing mental health issues in team members and engineers

health.

and teaming up with superiors, colleagues, and the personnel
Chief Health Officer
Head of the Management Divisionaffairs manager.

Recognized as one of the 2023 CertifiedHealth and Productivity Management
Outstanding Organizations(large enterprise category)
Artner was recognized as one of the 2023 CertifiedHealth and Productivity Management OutstandingOrganizations (large enterprise category) under theCertified Health and Productivity Management
Outstanding Organizations Recognition Program,operated by the Ministry of Economy, Trade andIndustry and the Nippon Kenko Kaigi.
The recognition program recognizes corporations,
including large companies and small- andmedium-sized enterprises, that practice particularlyexcellent health and productivity management, basedon their efforts to address local health issues andcooperate with the health initiatives conducted byNippon Kenko Kaigi.
Artner has been promoting health and productivity
management based on its declaration, and its efforts
have been recognized by external organizations.

Health and Productivity Management Promotion Office
Management Division(General Affairs and Human Resources Group)

Health and SafetyCommittee

Health insurance
societies

Industrial physicians

Policy on talent development

Health management results
Item
Periodic health checkup

KPI
Consultation rate

100%

FY2020

FY2021

FY2022

FY2023100.0%

100.0%

100.0%

100.0%

Improvement of service quality

T-shaped specialist education system

As we achieve our purpose to “Support the growth andArtner has introduced its own education system in which theself-actualization of engineers, who are Japan’s world-classhorizontal axis represents specialized knowledge and work skills

assets,” and our management philosophy “Engineer Support

and the vertical axis represents general education andCompany,” we stay committed to engaging in the following

communication capabilities. By doing so, we have establishedactivities in order to enhance customer satisfaction and improve

an effective approach to improving the skills of each and every

service quality.

Stress check

Consultation rate

90%

77.4%

78.1%

82.8%

78.9%

Annual paid leave

Acquisition rate

70%

81.4%

82.1%

76.5%

85.0%

workers with little or no experience to participate in

Improving health literacy(through training)

Attendance rate

100%

––

100.0%

100.0%

cutting-edge projects at an early stage and to shift their careers

Before engineer placement

to growing industry fields.

Proper weight ratio

Proper weightpeople ratio

75%

–––

69.9%

We provide industry knowledge of the client company,
and train the engineer using the same types of tools
as those used in the field.

Improving productivity(eliminating presenteeism)

Labor function
assessment

100%–––

92.3%

Average years of service

Years

1.2 times

1.00

0.98

1.00

1.03

Mental health care for employees

engineer. We also provide support for new employees andExpand expertise
and work skills

Expertise

Communication

Horizontal axis education
Skill

Vertical axis education

After engineer placement
We conduct interviews with the client company on aregular basis. We also train the engineer to meet theneeds of the company.

Deepen general educationand communication capabilities

To support the mental and physical health of our employees, we provide them with mental health care from professional counselors,
thereby helping in the prevention and early detection of mental health issues.

25

ARTNER CO., LTD. Annual Report 2023

ARTNER CO., LTD. Annual Report 2023

26

Sustainability

Diversity and Inclusion

Sustainability

Improving the employment environment to promote active participation of women

Diversity and LGBTQ initiatives

To help establish an employment environment that enables the active participation of women and permits employees to achieve a better

At Artner, we believe that promoting workplace diversitywork-life balance, Artner has formulated a General Employers Action Plan, based on the Act on Promotion of Women’s Participation andand giving all employees the opportunity toAdvancement in the Workplace and the Act on Advancement of Measures to Support Raising Next-Generation Children. We also strive todemonstrate their full potential lead to innovation andincrease the number of female executives and improve the rate of childcare and nursing leave utilization.

value creation. For this purpose, we strive to foster anFY2024

FY2023

FY2022

Share of female employees (engineers)-4.1%

3.7%

Share of female employees (administration)

-

27.6%

31.4%

Share of female employees (engineers) among newemployees

-6.4%

3.0%

Share of female employees (administration) among
new employees-27.3%

66.7%

Appointment of female employees (engineers)
to managerial positions

Three or more

Two (as of January 31, 2023)

Two (as of January 31, 2022)

Appointment of female employees tomanagerial positions

Ten or more

Ten (as of January 31, 2023)

Six (as of January 31, 2022)

Share of female employees inmanagerial positions

Increase on an
ongoing basis

3.4%

3.7%

KPI

27TargetResultResultWage difference between male andfemale employees (overall)-Male 100% : Female 94%

Male 100% : Female 93%

Wage difference between male andfemale employees (engineers)-

Male 100% : Female 96%

Male 100% : Female 99%

Wage difference between male andfemale employees (administration)-

Male 100% : Female 71%

Male 100% : Female 71%

Usage rate of childcare leave (male employees)

30% or more

30.8%

12.5%

Usage rate of childcare leave(female employees)

80% or more

100%

100%

Usage rate of nursing care leave(male and female employees)

50% or more

7.4%

1.2%

Human rights policy

Procurement policy

We will respect basic human rights without discrimination• As a responsible member of society, we will comply withbased on gender, age, place of origin, nationality, race, ethnicity,laws and regulations and respect social justice and basic

creed, religion, disease, disability, and/or other factors.We will

human rights.

create a healthy work environment, and will not engage in• We will establish equal and fair business relationships andharassment (workplace bullying, sexual harassment, pregnancy

procure the best and most appropriate resources.

discrimination, or any other form of harassment by any name)• We will conduct fair transactions and act by putting

or any other treatment that would be recognized as inhumane

ourselves in our customers’ shoes.

by global standards.We will make reasonable accommodations• We will meet customer needs by providing products thatfor employees’ religious practices and document the details ofoffer value in all aspects of price, quality, safety, and thesuch accommodations.We will not require employees toenvironment.

undergo medical examinations that are not reasonably and• We will strive to use environmentally friendly products.

objectively necessary in the hiring process.We will respect the• We will strive to properly manage documents andrights of employees to form and join labor unions, to bargain

information.

collectively, and to participate in peaceful assembly of their• We will strictly manage information that should be kept

own volition, as well as their rights to withhold such participation.

confidential.

ARTNER CO., LTD. Annual Report 2023

inclusive company culture, through measures such as
diversity training, LGBTQ study meetings, and activities
to promote an understanding of gender equality by all

Regional Contribution

Programming classes forelementary school students
We run computer programming classes led by Artner employees
for children in grades four to six at local elementary schools. Like
this, we provide opportunities for children to learn how to think
like a programmer.

employees.

Establishing a diversity
promotion office
In September 2011, Artner set up a Diversity Promotion
Office (now Diversity Team), centered around people
with disabilities. In addition to promoting theemployment of people with disabilities, we also aim tocreate a workplace that enables all employees to feel
fulfilled by their work.

Active hiring of people with disabilities
Artner actively hires people with disabilities. In 2018
Artner was officially recognized by Osaka Prefecture forits outstanding company efforts in support of people
with disabilities. (This award is part of the prefecture’s

Initiatives to clean public spaces
As part of its community service activities, Artner organizes acleanup of Esaka Park, located near our learning centers in WestJapan, and of Shin-Yokohama Ekimae Park, located near ourTokyo headquarters and learning centers in East Japan, inviting
the participation of all of our directors, managers, and employees.

initiatives to actively support the employment of people
with disabilities.)

Volunteering at Osaka Prefectural Suita School
for Students with Special Needs
Since 2018, our staff have been serving as “school volunteers”
for the annual festival at Osaka Prefectural Suita School forStudents with Special Needs.

ARTNER CO., LTD. Annual Report 2023

28