NSD recognizes that the conservation of the earth's environment is one of the issues for management. The Group has established an Environmental Policy in an effort to limit our impact on the environment, and will systematically and continuously work to reduce energy consumption derived from our business activities. To achieve this goal, we will contribute to a better, more prosperous global environment in collaboration with our customers and business partners across various industries.

In order to address the increasingly serious issue of global climate change, NSD has positioned climate change and energy management as one of its material issues, and is working to reduce greenhouse gas (CO₂) emissions by setting medium- to long-term targets in line with the framework of the Paris Agreement.

We conduct business with customers in a wide range of industries, and so we recognize the importance of predicting the impact that climate change, which brings more abnormal weather, storms and flood damage, will have on our business activities. Based on this understanding, we will analyze the risks and opportunities that climate change poses to our business and we will disclose all such information.

Since NSD is mainly engaged in software development and does not have facilities, such as data centers, that use large amounts of energy, the Group's direct CO₂ emissions are very small. As such, we are working to reduce greenhouse gas emissions by attempting to cut down on the amount of electricity and air conditioning we use in our offices.
To achieve these reductions, we have set and are working towards long-term targets of a 35% reduction by fiscal 2030, ending March 31, 2031, and a 72% reduction by fiscal 2050 (compared to fiscal 2020 levels).
Greenhouse gas emissions in fiscal 2022 were 915 t-CO₂, a 28.1% reduction compared to fiscal 2020 (base year).

CO₂ emissions reduction targets

CO₂ emissions

1. *1Scope: Head office, branch offices, consolidated subsidiaries (excluding overseas subsidiaries)
2. *2Energy measured: Scope 2 emissions only
3. *3CO₂ emissions calculation formula: Electricity consumption at each site x Emission factor at each site
   (Emission factors are based on those of the electric power companies as disclosed by the Ministry of the Environment)

NSD has few in-house facilities with many of its offices rented in office buildings. Since it is difficult for us to introduce renewable energy and LED lighting by ourselves when implementing initiatives in our offices, we are making requests to the building management companies at each of our sites to switch to renewable energy CO₂-free energy tariffs and to change to LED lighting.
We have already switched to renewable energy power at our head office and Nagoya branch office. LED lighting has also been introduced at several business sites, including our head office.