Sustainability | SIGMAXYZ Holdings Inc.

Sustainability Committee

The Sustainability Committee is strengthening our efforts to address ESG and SDGs challenges by examining the key issues related thereto, including climate-related issues, and by monitoring risks and regularly reporting to the Board of Directors. A summary of the Sustainability Committee’s operations is as follows. (as of May 2023)

The Sustainability Committee is chaired by the Directors who execute operations and comprises Executive Officers responsible for their respective business segments. In addition, subcommittees, etc have been established for each of the three ESG criteria: “Environmental,” “Social,” and “Governance.”
Important issues related to sustainability initiatives are deliberated by the Management Meeting, and reported and supervised by the Board of Directors.
The Sustainability Committee (including subcommittees, etc) meets once a month to discuss initiatives to address issues surrounding sustainability. The Committee also examines measures to tackle sustainability issues and monitors progress thereof.

Risks concerning Human Assets, an important issue of the Group, are identified and managed by the Risk Management Committee chaired by the Director, CFO. In turn, the committee reports and provides recommendations to the Board of Directors. The identified Human Assets risks are addressed by having subcommittees under the Sustainability Committee examine measures and monitor the progress of these measures. With regard to other matters such as legal compliance, the Compliance Committee, chaired by the Executive Officer, CCO, conducts supervision and examines measures.
As for climate-related risks, the Environmental Subcommittee of the Sustainability Committee explores ways to address risks associated with the transition to a decarbonized society, risks concerning greenhouse gas reduction, and risks associated with the physical impacts of climate change.

Initiatives for Climate Change

In addition to its own efforts, the Group will make contributions to the fight against climate change by collaborating with partners through business activities such as the promotion of digital transformation in Japanese companies.

We are supporting new approaches to community development that include regional energy design. We are working to build a next-generation resilient town in Obuse Town, Nagano Prefecture, and working alongside community members, companies, and governments to create resource recycling and regional co-prosperity mechanisms through a partnership with Tokyu Corporation in the Tama Denentoshi area.
In the investment business, SIGMAXYZ Investment Inc. has positioned the area of Regenerative & Well-being as an investment area, and is promoting investment operations that support value creation. In the renewable energy field, we invest in and support the business operations of SHIZEN ENERGY Inc. and Forest Energy Inc.
We disseminate information through media requests of energy analysts specializing in decarbonization and appearances at seminars.
SIGMAXYZ Inc., a consulting business, participates in the “Working Group (WG) on Carbon Neutrality” of the Japan Association of New Economy.
The entire Group is promoting efforts to go paperless for internal communication. Furthermore, we are accelerating initiatives for green purchasing and decarbonization by no longer offering beverages in plastic (PET) bottles, completing the switchover to LED ceiling lighting at our offices, and switching clear folders made of plastic to paper-based ones in the Group’s business premises.

	Results for fiscal year ended March 31, 2021	Results for fiscal year ended March 31, 2022	Results for fiscal year ended March 31, 2023
Electricity usage	222,824kWh	191,730kWh	180,590kWh
Paper usage	1,420㎏	1,080㎏	1,360㎏
Waste	4,313㎏	5,497㎏	6,021㎏
Amount recycled	2,160㎏	2,160㎏	2,480㎏

Contributing to Achieve the SDGs

Striving to expand value-added activities to address social issues as well as our clients’ issues with a view to achieving the SDGs, we always set up a meeting on commencing a project for consensus-building with a client concerning which of the SDGs’ 17 goals are to be achieved, and how.

	Results for fiscal year ended March 31, 2021	Results for fiscal year ended March 31, 2022	Results for fiscal year ended March 31, 2023
Proportion of SDGs-related projects Based on contract volume (based on number of projects)	38% (48%)	44％ (38％)	40% (31%)

	Proportion of SDGs-related projects Based on contract volume (based on number of projects)
Results for fiscal year ended March 31, 2021	38% (48%)
Results for fiscal year ended March 31, 2022	44％ (38％)
Results for fiscal year ended March 31, 2023	40% (31%)

We are striving to construct "social multi-sided platforms" to form an ecosystem where people in Japan and overseas who empathize with and support our initiatives gather to address social issues.

Establishment of the Future Creation Consortium for Cultured Meat

In March 2023, five organizations—the Graduate School of Engineering, Osaka University, Shimadzu Corporation, Itoham Yonekyu Holdings Inc., Toppan Inc., and SIGMAXYZ Inc.—established the Future Creation Consortium for Cultured Meat. The purpose of this consortium is “concrete initiatives for practical implementation of the manufacturing technology of edible cultured meat using 3D bioprinting,” and through cross-company collaboration, it will carry on “developing 3D bioprinting technology for application,” “establishing an integrated value chain from production to logistics,” and “contributing to legislation through collaboration with government offices and private companies.” By exhibiting at the 2025 World Exposition in Osaka, Kansai, Japan, the project will disseminate information and aim to realize the world’s first use of cultured meat.

While supporting the revitalization of domestic industries and local communities, we will continue to work toward the formation of an ecosystem that will generate new value through employment and procurement in local areas of　more than 80% of SIGMAXYZ Group’s business transactions.
We focus on creating an environment where diverse personnel can come together and play active roles.

Governance Initiatives

In order to further enhance the corporate governance system, we have established an Audit & Supervisory Committee including several independent outside directors. We have adopted this system as we believe it will further strengthen the supervisory functions of the Board of Directors, ensure management transparency, and improve efficiency.

Diagram of the corporate governance system（as of April 2023）

	Results for fiscal year ended March 31, 2021	Results for fiscal year ended March 31, 2022	Results for fiscal year ended March 31, 2023
Number of Directors	12	13	13
Number of Outside Directors	7	7	7
Number of Independent Officers	7	7	7
Number of Female Directors	1	2	2
Number of Audit & Supervisory Committee Members	3	3	3

Related Conferences	Results for fiscal year ended March 31, 2023
Board of Directors	12
Audit & Supervisory Committee	13
Management Meetings	12
Sustainability Committee	3
Environmental Subcommittee	11
Society subcommittee	12
Risk Management Committee	12
Compliance Committee	5
Disciplinary Investigation Committee	2
Information Committee4	8

Obtain B Corporation Certification

We have obtained the "B Corporation Certification" for the business and activities of SIGMAXYZ Group.
More than 5000 companies in 80 countries have obtained this certification.
SIGMAXYZ Group is the first listed company group that has its headquarters in Japan. (As of May 2022)

PrivacyMark and ISMS Certification Obtained (SIGMAXYZ Inc.)

Protecting individual information and ensuring that information assets are safeguarded properly and rigorously is a priority in our group's business operations. As the lead company for our group's consulting business, SIGMAXYS Inc. has obtained the PrivacyMark (P Mark) and ISMS certification and is continuously monitoring its internal information management processes for improvement.

・ PrivacyMark No. 10840533 (05)
・ ISO9001 Registration certificate number JQA-QMA15755