SDGs & Establishing Key Themes◆ Establishing Key Themes
Management Philosophy● Securing quality● Preventing work-related accidents

Promoting Safetyand Quality● Securing diverse, outstanding manpower

Cultivating HumanResources

We will contribute to our country andlocal communities by building social
infrastructure that supports affluent
lifestyles.

● Large-scale natural disaster countermeasures● Preventing global warming

Helping to Builda Sustainable Society

We will continue with unrelenting
reform in our aim to further increase
corporate value.

● Building governance structures● Increasing awareness of compliancePursuing More
Efficient and Sincere
Corporate Activities

We will build a company that customers
continue to choose through the construction of diverse infrastructure thatcarries our era forward.

◆ Basic Approach to Sustainability (Environmental, Social, and Governance [ESG] Policies)
The role of the COMSYS Group is to fundamentally support
sustainable, safe, secure, and rich community lifestyles throughthe construction of telecommunications infrastructures andsocial infrastructures, and the continuation of business in an
appropriate form ties into social contributions. Because of thehighly public nature of this business, we bear a great socialresponsibility, and we are aware that continuous activities
aimed at increasing corporate value are essential to the continuation of our business.
Governance (G) that ensures appropriate business operations
is particularly important to the COMSYS Group. In keepingwith the transition to a company with an Audit and Supervisory
Committee, we designated five outside directors to make up
one-third of our 15-member Board of Directors. By incorporating this “outside perspective,” we guarantee appropriate andadequate management, while at the same time focusing efforts
on internal auditing activities to guarantee appropriate work
activities and compliance to prevent corruption in this highly
public business. We also conduct employee training designed
to educate employees and increase awareness of these issues.
The COMSYS brand is closely related to society (S), and asJapan faces an unprecedented decrease in the birthrate andincrease in the senior population, securing human resources
has become a critical issue in the continuation and expansionof business for the COMSYS Group, which sees people as its
greatest management resource. We are actively promoting
diversity and undertaking workstyle innovations to draw inand secure more diverse, outstanding individuals. In addition
to conducting recruiting activities and in-house training toincrease female new graduate hires and female managers,

COMSYS GROUP REPORT 2021

volunteers identify and resolve issues aimed at establishing an
ideal work environment for women and for all other membersof the COMSYS Group’s increasingly diverse team. At the sametime, we have reviewed the re-employment system so thatseniors can remain active in the Group, and we are recruiting
labor with various nationalities.
In the construction industry, preventing work-related injuries and ensuring quality are top priority issues in terms ofmaintaining business activities. The COMSYS Group makes
concerted efforts to eliminate work-related accidents througha variety of measures, including safety training; the adoption ofsafety equipment; exchanges of information with partner companies; and safety patrols on multiple levels, by the workplace
representatives, safety management staff, and managers. Our
quality improvement activities include thorough checks basedon laws and in-house regulations, and management of work
processes using smartphones and tablet terminals.
Increasingly severe natural disasters continue to threaten
sustainable community life. The COMSYS Group is actively
involved in disaster countermeasures and disaster recovery
construction, and entered the renewable energy business tocontribute to preventing global warming. Even within the company, we invest efforts into measures targeting environmental(E) issues, including the purchase of low pollution vehicles and“green electricity.” In addition, to help build safer and moresecure cities, we undertake earthquake-proofing construction
and upgrades to aging facilities as part of disaster measures,and we combine the Group’s resources in the recovery of telecommunications facilities in regions affected by earthquakes
and typhoons.

Activities aimed at continuously
increasing corporate value◆ The COMSYS Group’s Four Key Themes and Activities

The COMSYS Group’sFour Key Themes

Main Activities during
FY2020Main Improvement Items
and Results

Issues and Areas Requiring
Improvements in FY2021

Pursuing More Efficientand Sincere CorporateActivities●Promoted consolidation (e.g.,reorganized operational structures, began system integration,
secured joint project orders)●Nationwide centralization of sales and backoffice functions●Test operations of mobile operation systems●Group collaborations in the Rakuten Mobilebusiness●Continue to promote consolidation

Cultivating HumanResources●Implemented diverse workstyles(introduced satellite offices, promoted teleworking)●Started up a Diversity Promotion
Project Team (Nippon COMSYS)●Increase the ratio of female recruiting at
new graduate level (18.8%; +0.1 percentage point year on year)●Increase the ratio of female managers (2.1%;+0.5 percentage point year on year)●Study new workstyles to adapt tothe “new normal”●Expand hiring of females and persons with disabilities●Foster female managerial candidates●Consider appointing female officers

Promoting Safety
and Quality●Activities aimed at preventing
accidents involving workers,equipment, and vehicles●Conducted workplace management trials using wearable terminals●Reduce accidents involving workers (4; down
27 year on year)●Reduce accidents involving equipment andhuman-initiated failures (13; down 9 year onyear)●Reduce accidents involving vehicles (46;down 54 year on year)●Reduce incidents involving information(including loss and theft) (3; down 2 year onyear)●Conduct activities aimed at preventing accidents●Build Group-wide safety management structures●Continue to study the introduction of ICT in the front lines

Helping to Build a
Sustainable Society●Assisted in recovery efforts following 2020 Kyushu floods●Introduced and promoted renewable energy●Increased attention to environmental issues●Assist in recovery activities (total of 7,100
employees participated over two months)●Expand the Renewable Energy business (neworders: +31% year on year)●Reduce CO 2 emissions (Nippon COMSYS)(down 9.2 percentage points year on year)●Reduce industrial waste (Nippon COMSYS)(down 6.2 percentage points year on year)●Expand the “post-solar” businessResponse to Climate-related Risks and Opportunities
Endorsement of the TCFD

Risk Management

In November 2021, the COMSYS Group formallyendorsed recommendations on climate-related financial
disclosures, the final report by the Task Force on
Climate-related Financial Disclosures (TCFD)*, releasedin June 2017. Following the TCFD recommendations,
the Group will disclose appropriate information on therisks and opportunities that climate change poses to theGroup’s business.

*T ask Force established by the Financial Stability Board (FSB) in 2015 at
the request of the G20. The final report recommends that companies
disclose information on four core elements of their organizational
operations (governance, strategy, risk management, and indicatorsand targets) in order to properly assess and grade corporate risks andopportunities related to climate change.

Governance
Under its management philosophy, the Group has
identified four key themes, of which it regards climatechange as important to address. In addition, in order
to contribute to the SDGs and enhance sustainablecorporate value, the Group has set up a management
system to promote sustainability. The Group establishedthe Sustainability Committee, chaired by the president ofCOMSYS Holdings Corporation, as the body responsible
for formulating strategies and resolving issues related tosustainability, including climate change, within the Group.
The committee meets as needed to review issues anddetermine the direction of initiatives. Important themes
related to management are decided after deliberations atmanagement meetings and Board of Directors meetings.
In fiscal 2021, the committee set a greenhouse gas
reduction target for fiscal 2030 as a contribution to therealization of a carbon-free society, and in May 2022 itannounced the target. Going forward, the committee willconsider and formulate specific reduction measures, such
as KPIs, to strengthen its system for monitoring progress tofurther promote efforts to address climate change issues.
Board of Directors
ReportingPotential Risks and Opportunities

The Risk Management Committee, chaired by thepresident and composed of the directors and presidents
of supervisory business companies, meets as needed
to identify business risks throughout the Group andaddress them according to the level of their impact.
Each company in the Group also holds appropriate
meetings to address risks accordingly.
With regard to climate-related risks and opportunities,
the Sustainability Committee takes the lead in monitoringchanges in the internal and external environments
associated with climate change and identifying climatechange risks and opportunities that may affect theGroup’s business. Identified risks and opportunities areassessed and analyzed based on the level of impact on
our company and other factors to determine which ones
have a high impact. We will report important matters tothe Board of Directors moving forward.

StrategyScenarios
The following scenarios were developed to identify andassess climate-related risks and opportunities.
Major Reference Scenarios

Approval, Supervision

Sustainability Committee
Chairman : P resident of COMSYS Holdings
Members : E lected from COMSYS Holdings and supervisorybusiness companies (directors, board members, etc.)
Sustainability Promotion Office(Sustainability Committee Secretariat)
Sustainability Promotion Division of each company

Timeline

Regulationand legalLess than 2°C > 4°C

Medium to longterm• I ncreased procurement costs of materials and fuels associated with carbon
pricing

Regulationand legalLess than 2°C > 4°C

Short to medium
to long term

• I ncreased electricity costs due to conversion to electricity derived fromrenewable energy sources

Markets,
reputation

Less than 2°C > 4°C

Short to medium
to long term•C ustomer defection and damage to corporate image if customers deem
environmental initiatives are inadequate

Acute

Less than 2°C < 4°C

Short to medium
to long term•D amage to telecommunications facilities and base stations caused by natural
disasters and increased restoration costs•D amage to aging social infrastructure, including water, sewage, and gas
facilities and increased repair costs

AcuteLess than 2°C < 4°C

Short to medium
to long term

• Discontinuation of products and services due to value chain disruption

Chronic

Less than 2°C < 4°C

Long term•D ecreased productivity due to increased number of telecommunications
equipment construction engineers suffering from health hazards such as heatstroke, and avoidance of scorching hot hours

Products and services,energy sources

Less than 2°C > 4°C

Short to medium
to long term

• Growing demand for renewable energy projects such as solar and wind power

Markets, resilience

Less than 2°C < 4°C

Short to medium
to long term

• Rising need for undergrounding utility poles as a disaster prevention measure
in response to frequent and increasingly severe natural disasters

Less than 2°C < 4°C

Medium to longterm• Growing demand for disaster prevention and mitigation construction
for telecommunications facilities and base stations due to frequent andincreasingly severe natural disasters• Rising demand for repair and seismic retrofitting of social infrastructure due torising demand related to national resilience

Transition

Risks

PhysicalOpportunities
Markets

Risks and Opportunities

Metrics and Targets

The Group analyzed potential risks and opportunities
related to climate change, referring to the below 2°C(1.5°C) and 4°C scenarios.
As a result, the Group determined that the impactsof possible future events due to the transition to acarbon-free society (policy and legal, markets, andreputation) and the physical (acute and chronic) impactsof climate change would be readily apparent. In relation
to its business, the Group has identified growing
demand for renewable energy projects as well as theneed of undergrounding utility poles and the renovationand seismic retrofitting of social infrastructure asprospective opportunities.
The Group will consider responses to these risks andopportunities and their incorporation into its businessstrategy.

Threshold Scenarios

Probability ofOccurrenceClassification

Below 2°C (incl. 1.5°C) Scenario:
Scenario for transition to a carbonfree society (Transition Scenario)• S DS in the IEA’s World
Energy Outlook 2018

4°C scenario:
Scenario in which physical impacts
become apparent• I PCC Fifth Assessment
Report RCP2.6, RCP8.5• I PCC Special Report on
Global Warming of 1.5°C

In May 2022, the Group set
greenhouse gas reduction targets
for fiscal 2030 and fiscal 2050.
These are based on Sciencebased Targets (SBTs)*, and we will
promote efforts to achieve them.
* Based on the Near-term SBT approach

Reduction Targets
Scope1	Direct greenhouse gas emissions by the business entity
itselfScope2	Indirect emissions from the use of electricity, heat, andsteam supplied by other companies
Scope3	Indirect emissions by supply chain (emissions from othercompanies related to the supplier’s business activities)• 42% reduction fromFY2020 level by FY2030• Carbon neutral by FY2050• 25% reduction fromFY2020 level by FY2030

Greenhouse Gas Emissions in FY2020
Scope, Category

Scope and Method of Calculation

Emissionsin FY2020(t-CO2)

Scope 1 (direct emissions)—Scope 2 (indirect emissions)—

15,626

Scope 3 (total value chain)—

1,746,812

88,178Category 1 (purchased goods and services)

Calculated from the emissions per unit of value of each company’s publicly disclosed values for
major suppliers, and the weighted average is applied to the other suppliers.

293,231

Category 2 (capital goods)

Calculated from capital investment

43,720Category 3	(fuel-and energy-related activities) Calculated from annual consumption by energy type
Category 4 ( transportation and distribution(upstream))(Delivery is not subject to calculation because it is included in Category 1)

4,550
–

Category 5 (waste from operations)

Calculated from the volume of waste by type

Category 6	(business travel)

Calculated from the number of consolidated employees

2,219

Category 7 (employee commuting)Calculated from the number of consolidated employees

4,034

8,654

Category 8 (leased assets (upstream))(Emissions from leased buildings, etc., are calculated in Scopes 1 and 2)–

Category 9 ( transportation and distribution(downstream))(Not subject to calculation)–

Category 10	(processing of sold products)(Not subject to calculation)–Category 11 (use of sold products)

For the telecommunications business, the figures are calculated from the publicly disclosed
values of major customers in Scope 2. For the non-telecommunications sector, sales volume ismultiplied by the assumed intensity of use and the number of years of use.

Category 12	(disposal of sold products)(Not subject to calculation)

Category 13 (leased assets (downstream))Calculated from the gross floor area of the apartment buildings

Category 14	(franchises)(Not subject to calculation)

Category 15 (investments)(Not subject to calculation)

Total GHG emissions

1,390,000–
404––
1,850,616