Efforts towards SDGs, ESG, and CSR.

Needs Well <3992> is engaged in activities related to SDGs, ESG, and CSR from two perspectives. One is initiatives directly linked to business incorporating the views of SDGs, ESG, and CSR, and the other is initiatives supporting a sustainable society through systems and support activities.

1. Initiatives Directly Linked to Business.

As initiatives directly linked to business in SDGs, ESG, and CSR, "Promoting Nearshore Development," "Development of New Solutions Assisting DX," and "Business Growth through Promoting Partnerships" are outlined.

"Promoting Nearshore Development" involves the establishment of the "Nagasaki Development Center" in Nagasaki City, Nagasaki Prefecture in October 2019, positioned as one of the growth strategies for sustainable management of SDGs and the medium-term management plan. Aiming for a 100-person system by the fiscal year ending September 2024, the goal is to utilize excellent local talent and contribute to rich community development through industrial infrastructure, technological innovation, and job creation. Recognized as the first registered business under Nagasaki Prefecture's SDGs registration system, efforts are also being made to participate in the "Regional Revitalization SDGs Public-Private Partnership Platform" established by the Cabinet Office.

"Development of New Solutions Assisting DX" aims to solve issues hindering the realization of DX due to the existence of individually built systems and excessive customization leading to system complexity and black-boxing. By building platforms using AI technology, providing systems, analyzing data, and realizing integration with RPA to reduce labor, assistance for DX will be provided, contributing to the establishment of an industrial foundation for a digital society.

"Business Growth through Promoting Partnerships" focuses on forming business alliances and collaborations with a diverse range of companies to establish an organization capable of long-term development. Partnerships have been established with companies such as ITFOR <4743>, Canon Inc-Spons Adr, Asentec <3565>, Sumitomo Mitsui Card Co., Ltd., Sakura Information Systems Co., Ltd., Meiji Yasuda Life Insurance Company, Connexio Co., Ltd., and Mitsubishi Research Institute DCS Co., Ltd. By promoting partnerships with group companies and clients, synergies are expected to expand sales channels, orders, products, and technicians, aiming for a long-lasting development structure together.

2. Initiatives Supporting through Systems and Support Activities.

The company encourages employees to take planned vacations through "Paid Leave Encouragement Days," and promotes early departures on the last Friday of each month for enjoying hobbies or spending quality time with family through "Premium Friday." Additionally, it is working on reforming work styles and developing human resources through "reducing overtime hours," "training systems and motivation enhancement mechanisms," and "communication enhancement mechanisms." Furthermore, it supports proper workplace placement and motivation improvement by implementing initiatives such as the "Double Job System," "Internal FA System," "Workplace Reintegration Support System," "Scholarship Assistance Program," and "Social Contribution System."

(1) Double Job System

This is a system that allows employees to experience work in areas outside their own department that they are interested in. By engaging in work in a different environment from their own department, employees can develop a new career that suits them while acquiring new expertise and flexible response skills, and can also enhance motivation by building new human relationships and being exposed to diverse perspectives. If the individual wishes and the accepting department can accommodate, it is possible to engage in approximately 30% of the individual's work volume in tasks from other departments, and it started in April 2023 targeting employees in management departments.

(2) Internal FA System

This is a system that allows employees to apply for transfers to recruitment projects on their own initiative. By engaging in new work, employees can develop a broad perspective, further enhance their skills, and advance their careers. Additionally, by being involved in projects of personal interest, employees will gain exposure to new technologies and knowledge, which contributes to motivation enhancement. It was launched in October 2023 for all employees.

(3) Workplace Reintegration Support System

This system prepares optimal work for employees wishing to return from leave, based on interviews with those on leave and opinions from supervisors and occupational physicians. To prevent recurrence of mental health issues leading to leave after returning to work, it started in October 2023, allowing individuals to resume the same tasks as before their leave in their affiliated departments. Additionally, from April 2024, a "Comeback System" will be introduced as a reemployment system for former employees.

To reduce stress and fatigue among employees due to commuting, promote the success of women, and further encourage paperless practices through the use of web conferencing, a telework system has been implemented for all employees.

(4) Scholarship Support System

From April 2025, a system will assist with the repayment of scholarships for new employees who majored in the information field during their studies, with a maximum of 1.8 million yen. In a social context where about half of university students rely on scholarships and the average repayment period exceeds 14 years, this initiative aims to support young employees in repaying their scholarships, reducing their financial burden, and creating an environment where they can focus on their duties.

(5) Social Contribution System

This system grants special leave for employees engaging in social contribution activities in Japan, such as disaster recovery support and providing bone marrow or peripheral blood stem cells. The company holds the management philosophy of 'continuing to contribute broadly to the economy and society' and strives to create a prosperous society in the IT field. As part of this initiative, participation in social contribution activities by employees is encouraged.

Additionally, the company aims to 'increase the ratio of female employees and managers' and supports the objectives of the local 'Nagasaki Women's Advancement Promotion Conference'. The self-declarations made include: 1) More than 30% of managerial positions held by women, 2) More than 30% of female employees within the entire company, 3) A monthly average of working hours for all employees kept within 20 hours of overtime, 4) Promotion of telework to facilitate easier return for employees on maternity leave and to realize flexible working styles.

Furthermore, the company is actively involved in initiatives like 'AI programming classes for students' and sponsoring the J-League soccer team 'V-Varen Nagasaki'.

(Reported by FISCO guest analyst Hiroshi Nakayama)