■Status of ESG initiatives

Dynam Japan Holdings has established clear policies from<06889/HK> environmental (E), social (S), and governance (G) perspectives, and is sincerely continuing efforts to increase value for all stakeholders (stakeholders), including investors.

Under the corporate philosophy of “a hundred year challenge that fosters trust and dreams,” ESG activities are developed with the ideal of achieving permanent growth, and information is disclosed in accordance with the latest international guidelines and Hong Kong Stock Exchange listing rules in the E (environment), S (society), and G (governance) categories. Details can be confirmed on the company's website and “ESG Report 2023/2024.” As ESG investment is attracting attention, it is expected that it will play an important role as a dialogue tool with investors.

1. Environmental Initiatives

Recognizing that global environmental issues are common to all humankind, the Group actively tackles environmental issues centered on climate change and aims to reduce environmental impact. Furthermore, we comply with environment-related laws and regulations and practice continuous environmental management.

Economic activity is one cause of global environmental issues such as climate change, energy consumption, and pollution, and international targets have also been set for global warming. Regarding business operations in a decarbonized society, the Group is striving for wooden stores with low environmental impact in order to suppress CO2 emissions due to excessive energy consumption, proper management of energy consumption (energy saving support, installation of water-saving toilets, etc.), promotion of green IT (digitization of documents, promotion of web conferences, etc.), a system that does not generate waste and its appropriate treatment (effective use and recycling of used game machines, wooden stores, recycling of general waste). As an energy saving initiative, BEMS and LED lighting have been introduced to all group stores, and new solar power generation panels have begun to be introduced to stores.

2. Social Initiatives

The Group is making efforts aimed at “improving social value” through initiatives for each trusted party, such as customers, local communities, business partners, employees, and shareholders and investors.

In order to create the value of “pachinko = everyday entertainment,” various initiatives aimed at “improving social value,” such as providing services from the customer's point of view under the “customer first principle,” responding to pachinko immersion, activities advocating “regional infrastructure,” development of private brand machines with game machine manufacturers, human resource development including promotion of active participation of women, optimization of work-life balance and work styles, health management, and implementation of briefings for investors I'm going.

In activities advocating “regional infrastructure,” in addition to independence support for the elderly, employment promotion in the region, disaster response and reconstruction support, sports support, etc., donation activities to regional revitalization projects are also carried out through corporate hometown tax payment (regional revitalization support tax system).

3. Governance Initiatives

The company group has selected a company with a nomination committee, etc. as an institutional design, and has established three committees: a nomination committee, a remuneration committee, and an audit committee. In companies that have established nomination committees, etc., executive officers are responsible for decision-making and supervisory functions in order to clarify management decision-making and supervisory functions and business execution functions. Furthermore, a cross-company “Group Crisis Management Committee” has been established to strengthen risk management throughout the Group, and a system has been established that enables quick decision-making, information transmission, and appropriate response in the unlikely event of a crisis.

(Author: FISCO Visiting Analyst Joe Sato)