Sustainability

1. Basic Policy

The Group endorses the TCFD's (Task Force on Climate-related Financial Disclosures) recommendations and strengthened our system to properly analyze and assess the risks and opportunities that climate change imposes on the Group's business. Through this, the Group aims to continually generate operating profits, and improve social recognition by integrating climate change risks and opportunities into our business strategy. Moving forward, we will enhance our information disclosures based on TCFD recommendations, and promote sustainable business operations that have reduced environmental impact.

2. Governance

The Group has positioned socially and environmentally friendly business operations as a top management priority, and will promote the management of climate change risks and opportunities led by the Sustainability Committee under the supervision of the Board of Directors.
Further, we have established the Sustainability Promotion Section and personnel assigned to sustainability in each group company, all of which are under the Sustainability Committee. Sustainability Promotion Section and personnel assigned to sustainability in each Group company will create, promote, and manage detailed measures, and report the details to the Sustainability Committee. The Sustainability Committee will periodically monitor and supervise items and initiatives concerning climate change, which will lead to continual improvements. They will also enhance future responses to climate change issues and promote sustainable business operations.

3. Strategy

Scenario Analysis Method

The Group conducts scenario analysis based on TCFD recommendations to accurately identify the business risks and growth opportunities brought upon by climate change and achieve continual growth. Most recently we analyzed the Content and Digital Business as well as the Amusement Equipment Business, and found that worsening climate change and government policies on decarbonization will impact the business environment.
In the scenario analysis, we used scenarios assuming 1.5℃ and ４℃.In the 1.5℃ scenario, the analysis results showed that risks in transitioning to decarbonization (e.g. introducing and strengthening carbon taxes and energy costs) would impact business activities. Then in the ４℃ scenario, the results indicated that physical risks (e.g. increasing abnormal weather and infrastructure damage due to rising temperatures) would impact business operations.
This analysis used scenarios from the IPCC (Intergovernmental Panel on Climate Change) and IEA (International Energy Agency) to predict the effects in the year 2030. We will continue to assess risks and opportunities related to climate change, promote sustainable business activities, and be transparent in information disclosures to our stakeholders.

Scenario Summaries		Reference scenarios
1.5℃ scenario	Scenario in which stricter climate change measures than now are taken and the increase of global average temperature is limited to 1.5°C	・SSP1-1.9 from IPCC ・NZE from IEA (part of preliminary calculation based on SDS)
4℃ scenario	Scenario in which no stricter climate change measures are taken that now and the average global temperature rises by about 4°C	・SSP5-8.5 (RCP 8.5) from IPCC ・STEPS from IEA

Scenario analysis results
Content and Digital Business

In the 1.5℃ scenario, carbon taxes and emissions trading are expected to increase as environmental regulations become more stringent. There will be significant risks (e.g. damage to the corporate trust and brand value) if the Group does not carry out environmental initiatives as a company. In the 4°C scenario, it is predicted that climate change will get much worse, resulting in fewer opportunities to go outside because of typhoons, heavy rains, and extreme heat. As a result, there is a risk of lost opportunities for sales and events, but on the other hand, demand for digital content as well as indoor and online events is expected to increase.

Item				2030 Financial impact		Countermeasures
				4℃	1.5℃
Risks	Transition risks Imposition of carbon price	Imposition of carbon price	There is a possibility that introduction of carbon taxes in Scope 1 and 2 results in increased operating costs and suppressed operating income	―	Low	Strengthening initiatives to reduce carbon emissions
		Increased costs involving information disclosures	Increased information disclosures and management expenses concerning sustainability	―	Low	Use of information disclosure tools and optimization of disclosure system
		Increased SG&A expenses due to rising electricity rates	Increased SG&A expenses due to rising electricity rates	Low	Low	Reduced electricity used through energy conservation
		Increased costs involving manufacture of goods with low environmental impact	Increased procurement costs of raw materials due to using substitute materials with low environmental impact	―	Medium	Strengthening of materials procurement network
		Damaged brand image due to late environmental response	Customers placing higher importance on a company’s environmental considerations and late environmental initiatives by the Group may lead to a decrease in transactions	―	Medium	Promoting initiatives concerning environmental considerations
	Physical risks	Increased costs involving manufacture of goods	Unstable supply and rising costs of raw materials will increase the manufacturing cost of goods	Medium	―	Strengthening of materials procurement network
		Suspended business and lost opportunities due to typhoons, flooding, etc.	Water damage and flooding risks could arise, leading to suspended business activities. Additionally, disaster prevention and restoration costs at company locations would increase	Medium	―	Creation of photos and videos in-doors
		Reduced customer event attendance due to climate change	Rising average temperatures decreases intention to go outside during summer, leading to less customers attending events	Low	―	Strengthening provision of company IPs to digital content
Opportunities		Increased demand for digital content	Demand for digital content which can be enjoyed indoors will increase due to people going outside less frequently	Medium	Low	―

*For operating profit forecasts for segments in 2030
Small: Less than 3% financial impact
Medium: 3% to 10% financial impact
Large: Over 10% financial impact

Amusement Equipment Business

In the 1.5℃ scenario, carbon taxes and emissions trading are expected to increase due to rising demands to consider the environment.
Even in PS machines, it is predicted that there will be increased demand for development of products that meet energy conservation and recycling concerns. In the 4°C scenario, it is predicted that worsening climate change will increase the physical risks at manufacturing locations and sales offices, as well as stores (parlors). Additionally, severe weather like heavy rain, typhoons, and intense heat may reduce the number of customers visiting stores and sales, leading to reduced purchasing power of parlors (clients).We will strive to reduce physical risks such as by strengthening BCP, and are thinking about conducting new forms of parlor operation and service support that have been adapted to climate change.

Item				2030 Financial impact		Countermeasures
				4℃	1.5℃
Risks	Transition risks Imposition of carbon price	Imposition of carbon price	There is a possibility that introduction of carbon taxes in Scope 1 and 2 results in increased operating costs and suppressed operating income	―	Low	Strengthening initiatives to reduce carbon emissions
		Increased costs involving information disclosures	Increased information disclosures and management expenses concerning sustainability	―	Low	Use of information disclosure tools and optimization of disclosure system
		Increased SG&A expenses due to rising electricity rates	Increased SG&A expenses due to rising electricity rates	Low	Low	Reduced electricity used through energy conservation
		Increased cost of human resources due to late environmental considerations	Increased costs to acquire human resources due to late initiatives for environmental considerations	―	Low	Promoting initiatives for environmental considerations
		Increased SG&A expenses due to rising gasoline prices	Increased costs in sales activities due to rising gasoline prices	Low	―	Cost reductions through optimization of sales
		Increased costs associated with manufacturing PS machines with low environmental impact	Increased procurement costs of raw materials due to using substitute materials with low environmental impact	―	Large	Strengthening development of products that meet energy conservation and recycling regulations
	Physical risks	Increased manufacturing costs due to rising raw material and energy prices	Increased costs to manufacture PS machines due to rising raw material prices and unstable supply	Large	―	Strengthening of materials procurement network
		Reduced purchasing power of parlors due to fewer customers visiting because of intense heat	Customers visiting parlors will decrease because of their lessened intention to go outside during the summer due to the rising average temperature. As a result, purchasing power of parlors will decrease, impacting the Group's transactions	Medium	―	Promoting parlor management forms and provision services that take climate change effects into account
		Repair expenses due to water damage and flooding risks	Water damage and flooding risks could arise, leading to suspended business activities. Additionally, disaster prevention and restoration costs at company locations would increase	Medium	―	Formulation of BCP (Business Continuity Plan) Implementation of training to prepare for emergencies at each location
Opportunities		Development of goods that meet energy conservation and recycling regulations, and strengthened handling of them	Develop PS machines that can be recycled and meet energy conservation needs to lower electricity consumption, and strengthen their handling	Medium	Low	―
		Proposal of parlor spaces	Demand for new parlor management forms and services that take climate change effects into account, like switching to low emission energy	Low	―	―

*For operating profit forecasts of segments in 2030
Small: Less than 3% financial impact
Medium: 3% to 10% financial impact
Large: Over 10% financial impact

4. Risk management

We recognize climate change risks as major threats to sustainability of our business and are taking the appropriate measures.
We categorize climate change risks into transition risks (regulatory and market changes associated with transition to a decarbonized society) and physical risks (effects from temperature increases and abnormal weather). These risks are identified and evaluated in the Sustainability Promotion Section. Results of risk identifications and evaluations are reported to the Sustainability Committee. The results are reported to the Board of Directors as well to receive supervision and directions as needed.
Furthermore, the Group has strengthened the risk monitoring structure, and now we periodically assess the status of risk occurrences and progress of countermeasures, and make efforts to review and improve the measures when necessary. We will also continue to enhance future responses to climate change risks and implement initiatives for realizing sustainable business operations.

5. Indicators and objectives concerning climate change

The Group will also actively promote initiatives to reduce GHG emissions to achieve the government's goal of a carbon-neutral society by 2050.GHG emissions of the Group are as written below. The objectives will be discussed and decided upon in future Sustainability Committee meetings.

[TSUBURAYA FIELDS HOLDINGS group Scope1, 2, 3 GHG emissions (t-CO2) results]

FY	Scope1	Scope2	Scope3
			Category 6	Category 7
Fiscal year ended March 2025	715.645	1,169.548	216.3	263.143
Fiscal year ended March 2024	860.299	1,091.406	185.0(Note)1	234.321(Note)2
Fiscal year ended March 2023	855.134	715.386	-	-

* Scope 1
The fiscal year ended March 2025: The Group’s direct greenhouse gas (GHG) emissions were calculated by multiplying the total gasoline used by vehicles at TSUBURAYA FIELDS HOLDINGS INC., FIELDS CORPORATION, and Tsuburaya Productions Co., Ltd. by the applicable CO2 emission factors under the Ministry of the Environment, Government of Japan's accounting and reporting system of the Ministry of the Environment available at the end of the fiscal year under review .

The fiscal year ended March 2024: The scope of data collected was expanded from what was disclosed last year, and the figures were recalculated under the same scope of the fiscal year ended March 2025.

The fiscal year ended March 2023: The figures were calculated by the vehicles used at TSUBURAYA FIELDS HOLDINGS INC. and FIELDS CORPORATION. Increasing the rate of introducing hybrid vehicles has led to a year-over-year reduction in emissions for the fiscal year ended March 2025.

* Scope 2
The fiscal year ended March 2025: The figure was calculated using the total electricity used at 16 companies at the Head Office building such as TSUBURAYA FIELDS HOLDINGS INC., FIELDS CORPORATION, and Tsuburaya Productions Co., Ltd., four non-head office locations of Tsuburaya Productions Co., Ltd., the motion-capture studio of Digital Frontier Inc., as well as regional offices and branches and a showroom of FIELDS CORPORATION (at the time of update, there were 12 branches and one showroom where data could be collected).

The fiscal year ended March 31, 2024: The scope of information collected was expanded from what was disclosed last year, and the figures were recalculated using the same scope as the fiscal year ended March 2025.

The fiscal year ended March 2025: The figure was calculated using the total electricity used at the 16 companies at the Head Office building such as TSUBURAYA FIELDS HOLDINGS INC., FIELDS CORPORATION, and Tsuburaya Productions Co., Ltd., as well as the Sendai, Hiroshima, and Fukuoka branches of FIELDS CORPORATION.

We measured the GHG emissions in Scope 2 according to location standards based on estimation methods by multiplying the electricity used at each location by the national average factors in the Ministry of Environment's "emission factors per electricity provider" available from the end of the fiscal year under review.

* Scope 3
We newly calculated emissions from employee business trips (Category 6) and work commutes (Category 7) for the fiscal years ended March 2024 and 2025.

For Category 6, first we multiplied transportation, lodging, and package tour expenses for business trips in one year across Japan (data from Japan Tourism Agency "Travel and Tourism Consumption Trends [2010]") by the emission intensity per transport method per price and the emission intensity of lodging to get an emission amount. Then we calculated the emission intensity from the working population, and multiplied that by the number of our employees (consolidated) to get the final figures.

Category 7 was calculated from the commuting allowance per transportation category given to employees at TSUBURAYA FIELDS HOLDINGS INC., FIELDS CORPORATION, Tsuburaya Productions Co., Ltd., and Digital Frontier Inc.

* GHG emissions data are estimates calculated using the data that we were able to collect as of the date of the update based on factors announced by the Ministry of the Environment, and are subject to change.

Caution

5. Indicators and objectives concerning climate change
[TSUBURAYA FIELDS HOLDINGS group Scope1, 2, 3 GHG emissions (t-CO2) results]

Note 1: Figures for Scope 1 and Scope 2 for the fiscal year ended March 2024
The figures for the fiscal year ended March 2024 published on June 18, 2025 were recalculated based on an expanded data collection scope consistent with that of the fiscal year ending March 2025. As a result, these figures may differ from those published on January 14, 2025.

Note 2: Scope 3 Category 6 and Category 7 figures for the fiscal year ended March 2024
There was an error in the figures for Scope 3 Category 6 and Category 7 for the fiscal year ended March 2024 published on January 14, 2025: the data for Category 6 and Category 7 were swapped. As of June 12, 2025, the figures have been corrected and updated accordingly. We sincerely apologize for any inconvenience this may have caused.