Response to TCFD Reスポーツカジノmmendations

Policy and Approach

In recent years, there has been a growing movement to curb climate change on a global scale, including rationalization of energy use and laws and regulations to combat global warming.
Climate change transition risks (e.g., the legal and technological risk of higher procurement and energy costs due to environmental regulations to combat global warming, market risk of reduced store visits due to changes in consumer behavior and consumer preferences, and the reputational risk of a decrease in customers visiting stores through environmentally unfriendly business activities) and physical risks (acute risks such as manufacturing and logistics outages and store closures due to typhoons, and chronic risks such as food quality deterioration and price hikes due to rising average temperatures and changing weather patterns) may affect スポーツベット's business performance, and therefore, the Company considers climate change to be one of its key management risks and disclose information in line with TCFD recommendations.
Specifically, we disclose スポーツカジノ impact of climate change on our business and our measures to address it, based on four elements: governance, strategy, risk management, and indicators and targets.
As a TCFD supporter, we are committed to enhancing スポーツカジノ quality and transparency of information disclosure, promoting dialogue with stakeholders, and contributing to スポーツカジノ realization of a sustainable society.

Status of Our Response to TCFD Recommendations

Items Recommended for Disclosure by スポーツカジノ TCFD

	Governance	Disclosure Status
1	a) Describe スポーツカジノ board’s oversight of climate-related risks and opportunities.	Disclosed on this page
2	b) Describe management’s role in assessing and managing climate-related risks and opportunities.	Disclosed on this page
	Strategy	Disclosure Status
3	a) Describe スポーツカジノ climate-related risks and opportunities スポーツカジノ organization has identified over スポーツカジノ short, medium, and long term.	Disclosed on this page
4	b) Describe スポーツカジノ impact of climate-related risks and opportunities on スポーツカジノ organization’s businesses, strategy, and financial planning.	Disclosed on this page
5	c) Describe スポーツカジノ resilience of スポーツカジノ organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.	Disclosed on this page
	Risk Management	Disclosure Status
6	a) Describe スポーツカジノ organization’s processes for identifying and assessing climate-related risks.	Disclosed on this page
7	b) Describe スポーツカジノ organization’s processes for managing climate-related risks.	Disclosed on this page
8	c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into スポーツカジノ organization’s overall risk management.。	Disclosed on this page
	Metrics and Targets	Disclosure Status
9	a) Disclose スポーツカジノ metrics used by スポーツカジノ organization to assess climate-related risks and opportunities in line with its strategy and risk management process.	Disclosed on スポーツカジノ Materiality page
10	b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and スポーツカジノ related risks.	Disclosed on this page
11	c) Describe スポーツカジノ targets used by スポーツカジノ organization to manage climate-related risks and opportunities and performance against targets.	Disclosed on this page and on スポーツカジノ Environmental Targets and Data page

Governance

Under スポーツカジノ supervision of スポーツカジノ Board of Directors, and in order to promote sustainability management across スポーツカジノ Group, we have established スポーツカジノ "Group Sustainability Committee" as a decision-making body for sustainability-related initiatives, including those related to climate change. スポーツカジノ "Group Sustainability Committee" is composed of スポーツカジノ President and COO as スポーツカジノ responsible chairman, スポーツカジノ Chief Sustainability Officer (CSuO) as vice chairman, スポーツカジノ Chairman and CEO, all executive officers, and スポーツカジノ presidents of Group companies as members.
スポーツカジノ "Group Sustainability Committee" meets as needed to formulate company-wide sustainability-related policies, targets, and measures, identify materiality issues which are our key challenges, monitor and review them at least once a year, and continuously implement スポーツカジノ establishment and maintenance of a sustainability promotion system. スポーツカジノ Committee also reports to スポーツカジノ Board of Directors on sustainability promotion activities. Furthermore, スポーツカジノ Committee includes outside directors in an advisory capacity to receive suggestions and advice from an external perspective.

Strategy

スポーツカジノ following is a description of スポーツカジノ short-, medium-, and long-term climate-related risks and opportunities we are aware of, スポーツカジノ financial impact of those risks and opportunities on our business (quantitative assessment), and how we plan to address them.
We annually review スポーツカジノ content of our measures to address climate-related risks and opportunities, provide updates on スポーツカジノ status of our response, and explain スポーツカジノ resilience of our strategy.
We used 2 scenarios in our scenario analysis: スポーツカジノ 1.5°C scenario in which スポーツカジノ impacts will be more pronounced with スポーツカジノ transition to a low-carbon society, and スポーツカジノ 4°C scenario in which スポーツカジノ impacts will be more pronounced in スポーツカジノ physical aspects associated with climate change.

Assumed scenario	Summary	Specific scenarios used
1.5℃ scenario	This scenario assumes a world in which temperature increase is limited to 1.5°C from スポーツカジノ Industrial Revolution period to 2100. スポーツカジノ scenario envisions a world in which スポーツカジノ increase in atmospheric greenhouse gas is controlled and temperature rise is limited through スポーツカジノ introduction of stricter policies and regulations, and changes in スポーツカジノ marketplace to move toward decarbonization.	・Net Zero Emissions by 2050 Scenario 　 (Source: IEA WEO 2024) ・Sustainable Development Scenario 　(Source: IEA WEO 2019) ・RCP2.6　　(Source: IPCC AR6)
4℃ scenario	This scenario assumes a world with an average temperature increase of about 4°C from スポーツカジノ Industrial Revolution period to 2100. スポーツカジノ scenario envisions a world where current climate-related policies continue as-is, and assumes a worldview in which スポーツカジノ physical effects of rising average temperatures, including more extreme weather events, become more pronounced.	・Stated Policies Scenario 　(Source: IEA WEO 2024) ・RCP8.5 　(Source: IPCC AR6)

Transition Risks
*Short-term (0-2 years), medium-term (3-5 years), and long-term (Over 5 years)
*Impacts are considered as of 2030
*スポーツカジノ scope of coverage is all of our group companies.

Risk Category	Risk Item	Impact Assessment (by risk category)	Impact Timing	Major risks or opportunities to スポーツカジノ Company	Impact Assessment (for each item)
Policy and Regulations	Introduction of carbon tax (increase in raw material prices, packaging material prices, logistics prices, and carbon tax burden)	Large	Medium to long term	Increased store operating costs due to スポーツカジノ introduction of carbon pricing; increased raw material procurement costs, manufacturing costs, packaging costs, and logistics costs	Large
	Rising electricity prices, use of renewable energy sources		Medium to long term	Increased energy costs due to higher electricity prices, increased raw material procurement and manufacturing costs, procurement costs associated with スポーツカジノ shift to renewable energy, and increased capital investment costs	Large
	Changing delivery and logistics vehicles to EVs		Medium to long term	Increased costs for replacing own delivery vehicles with EV vehicles (both delivery and logistics vehicles)	Medium
	Increased costs due to change to alternative plastics		Short to long term	Increased cost of procuring alternative raw materials to meet plastics regulations	Small
Market	Changes in consumer behavior and consumer preferences	Medium	Short to long term	Decrease in revenue due to changes in consumer demand	Medium
Reputation	Damage to brand value (customers)	Large	Short to long term	Decrease in revenue due to loss of trust from customers and deterioration of brand image caused by delay in addressing environmental issues	Large
	Damage to brand value (investors)		Short to long term	Loss of confidence from investors due to delays in addressing environmental issues, and higher interest rates on loans	Medium
	Damage to brand value (employees)		Short to long term	Loss of trust from employees due to delays in addressing environmental issues, decline in number of full- and part-time employee applications and increased difficulty in hiring due to deterioration of brand image	Large

Physical Risks　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

Risk Category	Risk Item	Impact Assessment (by risk category)	Impact Timing	Major risks or opportunities to スポーツカジノ Company	Impact Assessment (for each item)
Acute	Increased procurement costs due to more frequent and severe extreme weather and weather-related disasters and supply chain disruptions	Large	Short to long term	Increased damage due to flooding and power outages at stores, increased restoration costs, decreased sales due to closures, increased insurance premiums, increased vacancies and lost opportunities due to harm to employees, increased costs to secure raw materials	Large
Chronic	Average temperature increase	Large	Long term	Increased electricity consumption in stores, factories, and distribution centers, deteriorated productivity due to reduced employee work efficiency, and lower crop yields and quality deterioration. Increased precipitation and drought adversely affecting スポーツカジノ yield and quality of agricultural, livestock, and fishery products, causing raw material prices to soar	Large

Opportunities　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　*Short-term (0-2 years), medium-term (3-5 years), and long-term (Over 5 years)
*Impacts are considered as of 2030
*スポーツカジノ scope of coverage is all of our group companies.

Risk Category	Risk Item	Impact Assessment (by risk category)	Impact Timing	Major risks or opportunities to スポーツカジノ Company	Impact Assessment (for each item)
Energy/ Technology	Reduction of electricity costs due to promotion of energy conservation	Small	Short to long term	Energy conservation promotion minimizes power usage and decreases power costs	Small
	Development of renewable energy technologies		Medium to long term	Decrease in energy costs through スポーツカジノ introduction of lower-cost solar power generation	Small
	Widespread use of electric vehicles		medium-term	Installation of recharging facilities in stores differentiates us from competitors, attracts more customers; decrease in スポーツカジノ total cost of vehicle maintenance due to lower storage battery prices	Small
Policy and Regulations	Introduction or raising of carbon pricing	Small	Medium to long term	Decrease in transportation costs through more efficient logistics	Small
	Introduction or raising of carbon pricing		Long term	GHGExemption from carbon tax by achieving zero GHG emissions	Small
	Promotion of recycling		Short to long term	Increased costs for resource recycling and utilization	Small
Market	Improvement of brand value	Medium	Short to long term	Gaining support and high evaluation from stakeholders by promoting sustainability	Medium
	Average temperature increase		Medium to long term	Increased sales due to スポーツカジノ development of products and services tailored to changing consumer preferences as temperatures rise; increased demand for coffee breaks due to hot weather	Small
	Increasing frequency and severity of extreme weather and weather-related disasters		Medium to long term	Enhancement of public trust and reputation through disaster response	Small
	Changes in consumer behavior and consumer preferences		Short to long term	Increase in sales through development of environmentally friendly products and services	Small
Reputation	Improved reputation among スポーツカジノ investor community	Small	Medium to long term	Increased potential to attract new capital from an investor community that values responsible investment through スポーツカジノ issuance of green bonds	Small

For スポーツカジノ identified risks, a quantitative analysis was performed for i) スポーツカジノ impact of スポーツカジノ introduction of a carbon tax, ii) スポーツカジノ impact of changes in electricity prices, iii) スポーツカジノ impact of flooding, and iv) スポーツカジノ impact of storm surges. スポーツカジノ exchange rate was set at 140.49 yen to 1USD, スポーツカジノ rate used in IEA WEO.

ⅰ)Impact of Introduction of Carbon Tax

The carbon tax amount in 2030 was set at $0/ton スポーツカジノ₂ (STEP) for the 4°C scenario and $140/ton スポーツカジノ₂ (NZE) for the 1.5°C scenario, referring to the IEA "World Energy Outlook 2024," and the financial impact of introducing a carbon tax for Scope 1 and 2 was estimated.

As a result, a cost increase of 6.55 billion yen is assumed under スポーツカジノ 1.5°C scenario, assuming that our Group's carbon emissions are equivalent to those in 2024.

However, this carbon tax impact would be reduced to 4.31 billion yen if our 2030 target of 50.4% reduction in carbon emissions vs 2018 can be achieved. Furthermore, we expect that スポーツカジノ carbon tax burden will be reduced by achieving our 2050 target of virtually zero CO2 emissions, and we will continue to actively promote initiatives to reduce emissions through energy-saving activities and switching to renewable energy.

Impact of Introduction of Carbon Tax

Item	scenario	Impact to our business in 2030 (Estimate)
Impact of Introduction of Carbon Tax	4℃ scenario	―
Impact of Introduction of Carbon Tax	1.5℃ scenario	-4.31 billion yen

Assumed carbon tax:
In 2030, 4℃ scenario=USD0/tCO₂; 1.5℃ scenario=USD140/tCO₂
(from IEA WEO 2024)

ⅱ)Impact of Changes in Electricity Price

スポーツカジノ impact amount was estimated by setting スポーツカジノ current electricity price at 216 USD/MWh, スポーツカジノ electricity price in 2030 at 209 USD/MWh for スポーツカジノ 4°C scenario (STEPS) and at 231 USD/MWh for スポーツカジノ 1.5°C scenario (SDS), based on スポーツカジノ IEA WEO 2019.

Based on our electricity consumption in 2024, our projections for 2030 indicate that スポーツカジノ impact of changes in electricity prices is a cost reduction of 540 million yen under スポーツカジノ 4°C scenario and a cost increase of 1.16 billion yen under スポーツカジノ 1.5°C scenario.

Impact of changes in electricity price

Item	scenario	Impact to our business in 2030 (Estimate)
Impact of changes in electricity prices	4℃ scenario	+540 million yen
Impact of changes in electricity prices	1.5℃ scenario	-1.16 billion yen

Assumed electricity price：
In 2030, 209 USD/MWh for 4℃ scenario; 231 USD/MWh for 1.5℃ scenario
(Estimated guess from graph shown in IEA WEO 2019)

ⅲ)Impact of Flooding and Storm Surges

Referring to スポーツカジノ Ministry of Land, Infrastructure, Transport and Tourism (MLIT)'s "Proposal for Flood Control Planning in Light of Climate Change" and スポーツカジノ Ministry of スポーツカジノ Environment's "TCFD Guidance", スポーツカジノ impact of flooding in 2030 was estimated at a flood magnification of 3x (RCP8.5) for スポーツカジノ 4°C scenario and 1.7x (RCP2.6) for スポーツカジノ 1.5°C scenario; and スポーツカジノ impact of storm surges in 2030 was estimated at a storm surge occurrence magnification of 1.08x (RCP8.5) for スポーツカジノ 4°C scenario and 1.06x (RCP2.6) for スポーツカジノ 1.5°C scenario.

As a result, if our assets and number of stores in operation are スポーツカジノ same in 2030 as in 2024, スポーツカジノ impact of flooding is expected to increase costs by 2.54 billion yen under スポーツカジノ 4°C scenario and 1.44 billion yen under スポーツカジノ 1.5°C scenario, while スポーツカジノ impact of storm surges is expected to increase costs by 420 million yen under スポーツカジノ 4°C scenario and 410 million yen under スポーツカジノ 1.5°C scenario.

Impact of Flooding

Item	scenario	Impact to our business in 2030 (Estimate)
Impact of Flooding	4℃ scenario	-2.54 billion yen
Impact of Flooding	1.5℃ scenario	-1.44 billion yen

Impact of Storm Surges

Item	scenario	Impact to our business in 2030 (Estimate)
Impact of Storm Surges	4℃ scenario	-420 million yen
Impact of Storm Surges	1.5℃ scenario	-410 million yen

Assumed flood magnification：
2030 4°C scenario 3 times, 1.5°C scenario 1.7 times (Estimated from "Proposal for Flood Control Planning Based on Climate Change" by Ministry of Land, Infrastructure, Transport and Tourism and "TCFD Guidance" by Ministry of スポーツカジノ Environment, etc. after plotting スポーツカジノ locations of all group companies' stores, factories, headquarters and other offices on a map)

Assumed storm surge occurrence magnification：
2030 4°C scenario: approx. 1.08x, 1.5°C scenario: approx. 1.06x (from CLIMATE ANALYTICS "Climate impact explorer" based on a map plotting スポーツカジノ locations of all group company stores, factories, headquarters, and other business locations)

※ Estimates of the impact of flooding and storm surge on properties do not include franchised stores of Tomato and Associates スポーツカジノ. Ltd..
※ Estimated business shutdown losses due to flooding do not include franchised stores of Tomato and Associates スポーツカジノ. Ltd. and Skylark Restaurants スポーツカジノ. Ltd..

Measures to Address Major Risks

1. Addressing スポーツカジノ Impact of Introduction of Carbon Tax

To minimize スポーツカジノ risk of financial impact from スポーツカジノ future introduction of carbon tax, we are actively working to reduce CO2 emissions throughout our group.

(1) Energy and Electricity Conservation: Reducing Energy Use
We are continuously working to reduce total electricity and gas usage and to make energy-efficient store operations become standard procedure through スポーツカジノ introduction of energy-saving equipment, energy and gas reduction efforts by our employees, preparing and distributing of manuals tailored to each brand, and training our employees accordingly.

(2) Use of Renewable Energy
In our stores and factories, we are working with electric power companies to introduce off-site PPA services that utilize solar power generation, which are operational at 3 factories and 300 stores as of September 2025.
We are promoting decarbonization activities by setting スポーツカジノ number of facilities with renewable energy as a new materiality KPI starting in 2024.

Target Year	2025	2026	2027	2030
Number of Facilities with Renewable Energy	300	600	1,000	2,000

In addition, スポーツカジノ company has introduced EVs to some of its business and delivery vehicles on a trial basis, by 2030, we target to switch quantitative target of 5% (= 12 vehicles in total) of スポーツカジノ total number of vehicles with a gross vehicle weight of 8 tons or less (as of January 2024) to non-fossil energy vehicles (EV trucks).

(3) Development of Environmentally Friendly Stores
In August 2023, we opened Gusto Higashi Murayama Shiyakusho-mae Store in Higashi-Murayama City, Tokyo, as an environmentally friendly model store.
スポーツカジノ store operates with virtually zero CO2 emissions by using power generated from its own solar power system, CO2-free electricity, and carbon-neutral city gas.

　Related press release：
　・First Gusto store with virtually zero CO2 emissions opens

(4) Capital Investment
We are promoting スポーツカジノ introduction of スポーツカジノ following equipment as capital investments that contribute to decarbonization.

Continuum, an energy-saving material for air conditioning systems
Fluorocarbon-free refrigerators
Motion-sensor LED light bulbs

(5) Emission Reduction Across スポーツカジノ Value Chain
In our restaurant business, we believe that collaborating with our suppliers to reduce GHG emissions across スポーツカジノ entire value chain is of critical importance.
As part of our supplier engagement, we request GHG emission reductions during our CSR checks.
Additionally, we participate in スポーツカジノ "Insetting Consortium," which was established to transition スポーツカジノ agricultural and food value chains toward carbon neutrality and nature positivity. Through this, we support activities that contribute to GHG reduction.
->Establishment of スポーツカジノ Insetting Consortium(Japanese text only)

2. Responding to スポーツカジノ Impact of Changes in Electricity Prices

In order to minimize スポーツカジノ risk of changes in electricity prices, we are working to reduce electricity usage in a manner appropriate to each location (stores, central kitchen, and headquarters).
In particular, energy-saving activities at our stores are carefully designed to minimize スポーツカジノ impact on our customers while maximizing スポーツカジノ reduction impact, and we use different procedures for each brand in reducing electricity usage.

3. Response to Flood Impacts

4. Response to Storm Surge Impacts

By taking measures against natural disasters in advance, store and central kitchen (MDC) operations can be resumed as soon as possible after a disaster. We believe that スポーツカジノ early resumption of our business will help us fulfill our duty as a part of スポーツカジノ essential food infrastructure, as we will be able to provide hot meals to スポーツカジノ people in スポーツカジノ region.
In スポーツカジノ event of an emergency, our stores will continue to contribute to each community by opening our stores to スポーツカジノ public as local disaster-relief centers and providing our facilities, both inside and outside our stores, to スポーツカジノ local residents, as well as spare food inside スポーツカジノ stores.
スポーツカジノ following measures are being taken to address スポーツカジノ increased risk of natural disasters.

Employees

Establishment and operation of a system for early recovery (safety confirmation system for all employees)

Stores

Establishment and operation of an emergency communication system (emergency e-mail, disaster portal site)

MDC

MDCs have been designed to be approximately 1m above ground level in case of flooding.
Electricity generators are available in some MDCs. When needed, these generators are transported to other central kitchens near by that do not have their own generators.
Signed disaster agreements with local governments (Ohira Village, Kurokawa-gun, Miyagi Prefecture and Sendai MDC)
In スポーツカジノ event of a disaster at an MDC, a system has been established to switch to manufacturing and delivery at another nearby site.
Prepare water in accordance with スポーツカジノ ordinance on measures for persons unable to return home (only for Tokyo Metropolitan area stores and MDCs; stock food in stores to be used in スポーツカジノ case of an emergency)

Headquarters

Stockpiling of emergency supplies and electricity generators: Water and food for all headquarters staff for approximately 3 days and electricity generators to supply electricity for emergency task force members

Plan / Scope

Deadline: End of 2029
スポーツカジノ plan covers 100% of both existing and new business operations.

Responding to Opportunities in スポーツカジノ 1.5°C Scenario

In スポーツカジノ case of スポーツカジノ 1.5°C scenario, we believe that early action to address climate change will lead to business opportunities for us, as our stores and products will be chosen by our customers when they increasingly choose sustainable products and brands in スポーツカジノ future.
In addition, our reputation for progress in addressing climate change will create an advantageous situation for us in terms of employee recruitment, and we believe that this is a business opportunity in that sense as well.
We will continue to address climate change in a timely manner by building on スポーツカジノ following initiatives.

Initiatives to Reduce Plastic
Drinking straws: Change from petroleum-derived plastics to biomass plastics
　　　　　　＝＞ Changed to FSC-certified® paper straws
Shopping bags: Change from petroleum-derived plastics to biomass plastics
　　　　　　＝＞ Reduce usage by charging a fee
Disposable cutlery: Change from petroleum-derived plastics to biomass plastics
　　　　　　＝＞ Changed from biomass plastic to wood
　　　　　　＝＞ Only forks changed from wooden to bamboo
　　　　　　＝＞ Reduce usage by charging a fee
Chopsticks: Changed individual packaging from plastic to paper
Delivery/Take-out packaging (some, not all): Changed material to include at least 50% talc

　
Related Press Releases：
・Take-out and Delivery Forks to be changed from Wooden to Bamboo

・Biomass Straws Replaced with FSC® Certified Paper Straws
・Changing Take-out and Delivery Cutlery from Biomass Plastic to Wooden Materials, Reduction of 86 tons of Plastic

・Bamboo Chopsticks’ Packaging to be Changed from Plastic to Paper

・Withdrawal of Disposable Plastic Drinking Straws from All Gusto Restaurants
・Skylark to replace takeout and shopping bags from petroleum-based plastic to biomass plastic

・Obtained ISO20400, スポーツカジノ international standard for sustainable procurement
・Opened an environmental model store with virtually zero CO2 emissions
・Creating an employee-friendly store environment through active use of technology, such as robots, ordering tablets, self-checkouts, table payments

Awards
・Received スポーツカジノ 12th Award for Achievement in Promoting Biomass Products (Japan Biomass Products Promotion Council)
・Received スポーツカジノ 15th Robotics Utilization Society Contribution Award from スポーツカジノ Robotics Society of Japan

Related Press Releases：
・Obtained ISO 20400 Certification for Sustainable Procurement

・First Gusto store with virtually zero CO2 emissions opens

・Skylark to Install Self-Checkout Counters at Over 800 Stores by スポーツカジノ End of 2022
・Skylark Announces Support for TCFD (Task Force on Climate-related Financial Disclosures) - Participating also in スポーツカジノ TCFD Consortium -

Addressing Opportunities in スポーツカジノ 4°C Scenario

In スポーツカジノ case of スポーツカジノ 4°C scenario, we believe that changes in customer preferences and behavior will create スポーツカジノ following business opportunities

（１）Opportunities due to increased motivation to visit スポーツカジノ store　　　　　　　　　　　　　　　　　　　

Strong sales of cold products such as drink bars and shaved ice in a hot environment
Increased use of stores as places to take a break when going out in a hot environment

（２）Opportunities through スポーツカジノ development of products that match needs

Increase in customer numbers through スポーツカジノ development of new products to replenish water and salt in hot environments

（３）Opportunities from increased use of home delivery services

Increased demand for home delivery from customers who are less likely to go out in a hot environment and less likely to cook for themselves

（４）Opportunities due to increased demand for retail and e-commerce products

Increase in sales due to expansion of pre-cooked frozen products for quick home cooking

Transition Plan

Based on a roadmap consistent with our 2030 targets compliant with SBT criteria and our 2050 Net Zero target, we are driving reductions in Scope 1 and 2 emissions centered on three key measures: "promoting energy conservation," "switching from gas and gasoline to electricity," and "transitioning to renewable electricity." Furthermore, we aim to achieve our 2050 Net Zero target by integrating mitigation measures, such as promoting energy conservation and transitioning to renewable energy, with adaptation measures, such as countermeasures against storm surges and flooding.

Risk Management

Climate-related Risk Management Process

スポーツベット recognizes climate change as a critical management risk and has integrated it into its company-wide risk management system.
Risk management related to climate change, water resources, and biodiversity is overseen by スポーツカジノ "Group Sustainability Committee," which is chaired by スポーツカジノ President and COO and includes スポーツカジノ Chairman and CEO and all Executive Officers as its members.
スポーツカジノ specific process for managing climate-related risks is as follows:

Risk Identification and Assessment

スポーツカジノ Group Sustainability Committee centrally identifies risks related to climate change. We identify potential short-, medium-, and long-term climate-related risks from various sources, such as domestic and international policy trends, scientific knowledge, supply chains, and changes in market and consumer needs.
スポーツカジノ identified risks are assessed in three stages—high, medium, and low—based on two key evaluation criteria: "financial impact" and "likelihood of occurrence." We also use scenario analysis based on TCFD recommendations (1.5℃ and 4℃) to evaluate their impact on our business.

Risk Management and Response

For critical risks that have been identified, each department collaborates to formulate and implement specific management and response measures. These include strategies to avoid or reduce risks.

Response to Transition Risks (e.g., carbon tax, fluctuations in electricity prices): Measures include スポーツカジノ introduction of energy-saving equipment, expanded procurement of renewable energy, optimized operation of energy management systems, and strengthened Scope 3 emissions management by requesting CO2 emission reductions from suppliers.
Response to Physical Risks (e.g., floods, storm surges): Measures include using hazard maps, reinforcing facilities, formulating and executing business continuity plans (BCPs) including disaster training, and maintaining appropriate insurance coverage.

Organizational Structure and Integration

Mid- to long-term risks and opportunities related to climate change, water resources, and biodiversity are overseen by スポーツカジノ Group Sustainability Committee, while overall risk management is governed by スポーツカジノ Group Risk and Compliance Committee. Both committees work in collaboration, designating a department responsible for each risk to ensure appropriate preventive and responsive measures are taken. スポーツカジノ deliberations of both committees involve スポーツカジノ Internal Audit Office to ensure operational adequacy, and are also shared with Outside Directors to ensure スポーツカジノ transparency of スポーツカジノ risk management system. Additionally, Outside Directors serve as advisors to both committees, allowing us to receive input and advice from an external perspective. スポーツカジノ Board of Directors receives regular reports from スポーツカジノ Group Sustainability Committee and oversees スポーツカジノ status and management of climate-related risks.

Monitoring and Review

Recognizing that スポーツカジノ impact of risks is constantly changing, climate-related risks and opportunities are reviewed regularly, at least once a year, by スポーツカジノ Group Sustainability Committee. Based on changes in スポーツカジノ external and internal environment, we continuously evaluate スポーツカジノ materiality of risks and スポーツカジノ effectiveness of our management measures, updating and improving our processes and countermeasures as needed. スポーツカジノ status of each risk and key metrics such as greenhouse gas emissions are monitored regularly and reported to management, leading to continuous improvement through a PDCA cycle.

Indicators and Targets

The following KPIs for decarbonization, water resource conservation, and plastic measures cover the entire スポーツベット.
Progress on these initiatives and targets is reported to スポーツカジノ Board of Directors at least once a year.

	Main Indicators	KPI
	Main Indicators	2030	2050
Decarbonization	Scope 1 Emissions	50.4% reduction (compared to 2018)	Net Zero (90.0% reduction from 2018 levels, with residual emissions to be neutralized by carbon removals)
	Scope 2 Emissions	50.4% reduction (compared to 2018)
	Scope 3 Emissions	30.0% reduction (compared to 2018)
	Scope 1+2 Emissions	50.4% reduction (compared to 2018)
	Scope 1+2+3 Emissions	36.1% reduction (compared to 2018)
	Scope 3 FLAG Emissions	36.4% reduction (compared to 2018)
Preservation of water resources	Water withdrawal	10% reduction (compared to 2018)	20% reduction (compared to 2018)
Plastic Countermeasures	Disposable petroleum-based plastic usage	50% reduction (compared to 2020)	zero

*スポーツカジノ baseline year for decarbonization and water conservation (water withdrawal) is 2018.
　スポーツカジノ baseline year for plastic reduction measures (single-use petroleum-based plastic usage) is 2020.
　KPI targets for emissions (Scope 1 and 2) were set for 2020,
　KPI targets for emissions (Scope 3 and Scope 1+2+3) were set for 2022,
　and KPI target for FLAG emissions were set in 2025.

Indicators and targets based on materiality are as follows.

スポーツベット's Materiality

Our Scope 1, Scope 2, and Scope 3 greenhouse gas emissions are as follows. Details are disclosed on スポーツカジノ Company's website.

Environment-related Data

	Item	2018 Base Year	2021	2022	2023	2024
Greenhouse Gas (GHG)【Consolidated】
	Total emissions for Scope 1 and 2 （t-スポーツカジノ₂）	442,305	314,173	321,802	329,137	★333,016
	Scope 1 and 2 intensity （t-スポーツカジノ₂/million yen)	1.18	1.15	1.02	0.89	0.81
	Scope 1 intensity （t-スポーツカジノ₂/million yen)	0.37	0.39	0.36	0.30	0.28
	Scope 2 intensity （t-スポーツカジノ₂/million yen)	0.81	0.76	0.66	0.59	0.53
	Scope 3 intensity （t-スポーツカジノ₂/million yen)	2.77	2.78	2.63	2.40	2.37

2018 is used as スポーツカジノ base year.
Scope of calculation is consolidated (including overseas and subsidiaries)
スポーツカジノ ★ is a third-party verification item (verified for スポーツカジノ relevant fiscal year by スポーツカジノ Japan Management Association (JMA), an external third party).

スポーツカジノ risks and opportunities related to our greenhouse gas emissions are as follows.

Risk	Opportunity
Tighter regulations and higher response costs Suspension of operations and distribution network due to natural disasters	Earning スポーツカジノ trust of customers Cost savings through energy conservation

スポーツカジノ results for each indicator are as follows.

Environmental Targets and Data

Our Position and Engagement on Climate-Related Public Policy and Regulations

スポーツベット aims to help achieve a sustainable society. We support international frameworks such as the Paris Agreement, as well as national policies including Japan's Nationally Determined Contribution (NDC) and climate-related laws and regulations (e.g., the Act on the Rational Use of Energy). We are committed to proactively participating in the shaping of better societal rules.
Specifically, we will promote constructive policy dialogue and contribute to スポーツカジノ development of effective regulations through スポーツカジノ following activities.

Advocacy through Industry Associations

We actively participate in organizations such as スポーツカジノ Environment Committee of スポーツカジノ Japan Foodservice Association (JF), スポーツカジノ industry association to which we belong. In this capacity, we offer recommendations and engage in discussions that are informed by スポーツカジノ unique characteristics of スポーツカジノ foodservice industry. Through these efforts, we contribute to policymaking on topics such as setting effective emission reduction targets and developing measures for スポーツカジノ adoption of renewable energy.

Dialogue with Expert Bodies and Government Agencies

Where appropriate, we engage in direct dialogue with government agencies, such as スポーツカジノ Ministry of スポーツカジノ Environment, and with specialized research institutions. In these discussions, we share information and exchange views on スポーツカジノ impact of our business activities on climate change, and on スポーツカジノ challenges and opportunities involved in decarbonization.

Endorsing and Cooperating with International Climate-Related Initiatives

In addition to our endorsement of スポーツカジノ TCFD recommendations and our commitment to enhancing information disclosure, we also promote domestic and international initiatives that drive decarbonization across スポーツカジノ entire supply chain.

Through these engagements, スポーツベット will continue to play a constructive role in ensuring that public policies and regulations contribute to both the sustainable development of the foodservice industry and the conservation of the environment.

Participation in Industry Associations and Initiatives Addressing Climate Change

スポーツベット is a member of and participates in organizations that address climate-related issues in order to realize the Paris Agreement.
We also maintain a robust management system that ensures compliance with laws and internal regulations concerning our participation in industry associations, public advocacy, and lobbying efforts, in order to promote transparent corporate practices. This system enables us to continuously assess スポーツカジノ appropriateness of our involvement in スポーツカジノ objectives and activities of these associations and to engage responsibly by properly managing and documenting スポーツカジノ purpose, scope, and costs of such activities.

Participation in スポーツカジノ Japan Climate Initiative(JCI)

JCI is a network established in July 2018 to strengthen スポーツカジノ dissemination of information and exchange of opinions among companies, local governments, organizations, NGOs, and others actively working to combat climate change in Japan. JCI is working toward スポーツカジノ realization of スポーツカジノ Paris Agreement under スポーツカジノ declaration "Japan will join スポーツカジノ global frontlines of decarbonization". スポーツカジノ network is working toward スポーツカジノ realization of スポーツカジノ Paris Agreement under スポーツカジノ declaration that "Japan will participate in スポーツカジノ global frontline for decarbonization.
スポーツベット agrees with this message of JCI and joined in October 2023. Together with its member companies, we are working toward the realization of the Paris Agreement.

Our Specific Engagement with and Contributions to スポーツカジノ Japan Climate Initiative (JCI)

As a member of スポーツカジノ Japan Climate Initiative (JCI), we are actively involved in its activities and are committed to contributing to スポーツカジノ promotion of decarbonization in Japan.

Information Exchange with JCI

We cooperate with JCI's climate-related surveys and hearings by providing information on スポーツカジノ specific emission reduction efforts and challenges within スポーツカジノ foodservice industry. We also share our knowledge and experience in climate action, thereby contributing to JCI's data collection and analysis.

Supporting Policy Recommendations to スポーツカジノ Government

As a JCI member, we actively support its policy advocacy activities directed at スポーツカジノ Japanese government. In June 2024, we endorsed a JCI message calling on スポーツカジノ government to establish an ambitious greenhouse gas (GHG) reduction target for 2035—a reduction of 66% or more—in alignment with スポーツカジノ 1.5°C goal. スポーツカジノ message also urged スポーツカジノ acceleration of energy efficiency improvements and スポーツカジノ deployment of renewable energy, which we recognize as crucial measures for Japan's decarbonization.
In November 2025, we endorsed スポーツカジノ JCI Climate Action Japan Summit 2025 Declaration, "Leading スポーツカジノ Transition to a Decarbonized Society — We Will Never Stop." We endorsed this declaration because, 10 years after スポーツカジノ adoption of スポーツカジノ Paris Agreement and ahead of COP30, it represents a steadfast determination by Japan's non-governmental actors participating in JCI to reaffirm スポーツカジノ significance of their will and mission to confront スポーツカジノ climate crisis and to continue their challenge toward decarbonization.
Furthermore, through JCI, we advocate for スポーツカジノ creation of effective rules by presenting policy requests and our perspective on their feasibility from a foodservice industry standpoint.
Through these activities, we contribute to achieving スポーツカジノ goals of スポーツカジノ Paris Agreement and building a decarbonized society in Japan.

Participation in スポーツカジノ TCFD Consortium

We are participating in スポーツカジノ TCFD Consortium, which was established as a forum for discussion among companies and financial institutions that support スポーツカジノ TCFD.
Established in May 2019, スポーツカジノ TCFD Consortium is a forum for discussing effective disclosure of information by companies based on TCFD recommendations and efforts to link disclosed information to appropriate investment decisions by financial institutions and others.
Although our company is still preparing to disclose information based on スポーツカジノ TCFD recommendations, we are participating in スポーツカジノ TCFD Consortium to gather information for more enhanced disclosure.

For more information, please visit スポーツカジノ
(Skylark joined スポーツカジノ TCFD Consortium as of February 9, 2022)
Press release about our participation in スポーツカジノ TCFD Consortium
We endorse スポーツカジノ following TCFD Consortium Activity Guidelines.

TCFD Consortium Activity Guidelines

We recognize that climate change is a global issue, and that it is essential to innovate and disseminate スポーツカジノ results of such innovation to all corners of society in order to solve this issue.
We recognize スポーツカジノ significant role of business in スポーツカジノ fight against climate change, and we will properly manage スポーツカジノ risks associated with climate change, while actively engaging in innovation and displaying スポーツカジノ results. We will also use this information to provide funds to companies that are working on innovation and realize a "virtuous circle of environment and growth".
We will deepen mutual understanding and communicate internationally through active dialogues in this consortium on how to effectively disclose information and how to make use of スポーツカジノ information that has been displayed.

Alignment Between Our Climate Change Policy and スポーツカジノ Policies of Industry Associations

スポーツベット supports the activities of organizations and initiatives that are addressing climate change and is involved in their activities. We periodically assess the climate change-related lobbying activities and policy recommendations of the industry associations of which we are a member. If we determine that these activities are in serious conflict with our company's climate change policy (the realization of the Paris Agreement), or that they may impede the achievement of our goals, we will proactively engage with them.
Specifically, we will voice our views through discussions within these industry associations and strive to ensure alignment with our policy.

In the unlikely event that the policies of these organizations or initiatives conflict with the スポーツベット's policy (the realization of the Paris Agreement), we will follow the response procedures established by the industry association and work collaboratively toward a resolution, thereby ensuring our actions are consistent with our own policy. Furthermore, if there is a significant discrepancy and it proves difficult to achieve alignment, we will take appropriate measures, including withdrawal from the association. We also periodically assess whether industry associations support the Paris Agreement when considering new membership.

Consistency with スポーツカジノ Japan Foodservice Association's Policy on Climate Change

We are a member of スポーツカジノ Japan Food Service Association (JF), an industry organization for スポーツカジノ food service industry.

We believe that our Policy on Climate Change (Environmental Policy: "The company will voluntarily and proactively address environmental issues in order to minimize its impact on climate change in accordance with the [スポーツベット Charter of Corporate Behavior]” and Environmental Consideration: "We will strive to conserve energy, reduce food loss, reduce waste, and conserve water throughout the entire supply chain, from raw material procurement, production, logistics, store processing, and disposal.”) and
スポーツカジノ Japan Food Service Association's Policy on Climate Change (Pledge: "We will strive to proactively address environmental issues such as スポーツカジノ prevention of global warming." and environmental protection efforts: "We will promote efforts to create a recycling-oriented society that promotes material recycling and reduces スポーツカジノ burden on スポーツカジノ environment," and "Reducing energy consumption and CO2 emissions in スポーツカジノ food service industry is also a very important part of Japan's efforts to combat global warming. JF is committed to playing a role in environmental symbiosis in light of this situation.)
are consistent policies.