Disclosure based on TCFD recommendations
・Materiality identification/management

GovernanceDiscussion

・Identification/assessment/management of sustainability-related risks and opportunities

In May 2023, we established the Sustainability Subcommittee as a subcommittee of the Management
Committee under the supervision of the Board of Directors to discuss matters related to sustainability*. The・Development of related policies

subcommittee is chaired by CEO and consists of the members of the Management Committee as well as those

Strategyin charge of sustainability promotion and other members appointed by CEO as necessary. The subcommitteeIn July 2023, we declared "Carbon Net Zero for FY2050" and set a goal to reduce greenhouse gas (GHG)

discusses

materiality,emissions, and is promoting a response to climate change as part of its management strategy. We conducted

identification/evaluation/management of sustainability-related risks and opportunities, and formulation ofa scenario analysis to identify climate change risks and opportunities related to its social commerce business,related policies, and reports the results of discussions to the Board of Directors without delay.

centered on BUYMA, and to understand their impact on its business.

The Sustainability Subcommittee also collaborates with the Risk Management Committee to share risk

See next page for details.

information throughout the company and conduct employee education to instill a high sense of ethics and aspirit of compliance, including the concept of compliance and legal observance.

Risk Management*Sustainability refers to matters related to the sustainability of corporate management, including environmental (climate change), social,

We have a system in place for each division to report risks to the Risk Management Committee in a timely

employee, and human rights, anti-corruption, anti-bribery, governance, cyber security, data security, and business environment.

manner in accordance with the risk management policy. In addition, risks related to sustainability are sharedmattersrelatedtosustainability,

specifically,identification/management

ofwith the Risk Management Committee by the General Manager of the Corporate Operations Division, amember of the Sustainability Subcommittee, to identify company-wide risks. These identified risks areevaluated by the Management Committee through the Risk Management Committee and the Sustainability
Subcommittee from the perspective of urgency and impact and classified into levels in order of priority. If arisk is identified as a significant company-wide risk based on the content of the discussion, it is not only
managed by the Risk Management Committee or the Sustainability Subcommittee, but a separate committee
may also be established to address the risk.

Metrics and Targets
In July 2023, we declared "Carbon Net Zero by FY2050" and set a goal to reduce GHG emissions (Scope 1, 2, & 3) frombusiness operations to virtually zero by FY2050. In addition to the long-term target of 2050, we have also set short- andmedium-term milestones as shown below, and are working to achieve decarbonization.

Greenhouse Gas Emissions Reduction Targets and Results (Unit: t-CO2e)
Base year

ActualActualActualemissionsemissionsemissionsemissions

FY2020FY 2021

FY 2022

FY 2023

Scope 1&2

40283531

Scope 3

8,150

7,266

5,514

4,030

8,190

7,293

5,549

4,061

Scope

Sustainability Subcommittee
Chair: CEOMember

Other members: Management Committee members, those in charge of sustainability
promotion, and other members appointed by CEO as necessary

Number oftimes heldAt least 4 times a year

Totalemissions

Target annual emissions
FY 2025

FY 2030

FY 205035230(▲13%)(▲43%)(▲100%)

6,456

4,7620(▲21%)(▲42%)(▲100%)

6,491

4,7850(▲21%)(▲42%)(▲100%)

Note: Figures in parentheses % in the target annual emissions indicates the rate of reduction fromthe base year.

Disclosure based on TCFD recommendations
Scenario Analysis
Applicable businesses: The analysis applies all of Enigmo's businesses.
Scenario: Scenario analysis is conducted by using the IPCC (RCP 2.6 and 8.5) and IEA WEO2023 (APS and NZS), which are 2 or less and 4℃ scenarios, respectively.
Time axis: The period during which the risk will manifest is set as the short term from the present to FY2025, the medium term from FY2026 to FY2030, and the long term from FY2031 onward.
Financial impact: The impact on our financial statements is set as follows: small is assumed to be less than 30 million yen, medium is assumed to be between 30 and 100 million yen, and large is assumed to be
more than 100 million yen.
Time Horizon

Categorization of risks andopportunities based onContents

TCFD recommendations
Policies andLaws
TechnologyTransition

MarketRisks

・Increase in costs associated with change to environmentallyfriendly operations

Risks
Chronic

MarketOpportunities
Reputation

termterm

●

●

●

●

●

・Strengthen competitiveness in the face of changing consumer
preferences due to heightened environmental awarenessproducts

Large

●
●

●

・Implement environmental measures in compliance●・Enhanced disclosure of the status of environmental●

・Improvement of ESG evaluation●・Diversification of delivery methods●natural disasters or severe climatic events

transition to a circular economy

・Expand development of sustainable and ethicalMediuminitiatives

・Disruptions in the value chain (e.g., delivery delays) due to・ Increased demand in the used goods market due to theto sustainable vendors●●

environmental issues

warming・Promote activities to achieve net-zero emissions

Smallwith laws, regulations, and international standards

・ Suspension of transactions due to insufficient response to・Decrease in demand for heavy winter clothing due to global

Countermeasure

・Increase efficiency of operations/enhance outsourcing●●

sustainable fashion and ethical consumption

environmental issues

Physicalterm

・ Changes in demand for products due to the expansion of・ Poor investor evaluation due to inadequate response toAcute

Long-of carbon pricing, etc.

・Reputational risk and loss of corporate value due to inadequate

Reputation

Mid-・Increase in operating costs and tax burden due to introduction

response to environmental issues
Risks

Short-

Financial Impact●

・Diversification of user bases / further acquisition of●

global users
●

●

●

●

●

●

●

・Diversification of business portfolio, including
expansion of Travel business・Strengthen promotion of Sokuwari/ALL-IN, used goods
trading services
・Expansion of sustainable private guide services, etc.

●

●

●

●

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Reference:

IEA - Global Energy and Climate Model Documentation-2023

Ministry of the Environment - Introduction of a tax to address global warmingTokyo District Meteorological Observatory - Climate Change in Tokyo

Ministry of Land, Infrastructure, Transport and Tourism - Technical Study Group on Flood Control Planning in Light of Climate Change "Flood Control Planning in Light of Climate Change" Proposal
Reporting date: April 25, 2024