Based on the Benesse Group's environmental policy, we promote understanding and measures to restore biodiversity and conserve resources through environmental education, as well as our own initiatives.

• The Benesse Group Environmental Policy

●  Adaptation to materiality

The Benesse Group's materiality and its response to the restoration of biodiversity and conservation of resources in the materiality formulation process are included in "Preserving a sustainable global environment".

●  Scope of disclosure

In this first year of disclosure, the analysis focused on "Domestic Education (Benesse Corporation)" within the Benesse Group. The evaluation covered the entire value chain, from upstream to downstream, related to the domestic education business.

●  Locations of nature-related issues

We conducted IBAT (Integrated Biodiversity Assessment Tool) surveys of biodiversity at company-owned sites and around suppliers' paper mills and printing plants.

* With regard to identifying the locations of raw materials, it is difficult to identify the specific procurement locations of our suppliers, so we are assessing the procurement locations as a whole for each supplier company.

●  Integration with other sustainability-related disclosures

Sustainability in general is disclosed on our Sustainability website, while business-related information is disclosed in the Annual Securities Report. Climate-related information is analyzed and disclosed for the domestic education and nursing care and childcare domains according to the TCFD (Task Force on Climate-related Financial Disclosure) framework. The analysis of the domestic education domain also refers to the TCFD analysis methodology when analyzing the TNFD.

●  Considered timeframe

The TNFD analysis is conducted with a focus on the year 2030.

●  Engagement with indigenous and local residents and affected stakeholders in assessing and identifying nature-related issues for the organization

We communicate with local communities, suppliers, customers, employees, and other stakeholders throughout the year, and conduct surveys of our suppliers.

Benesse advances initiatives for sustainability and ESG, including biodiversity, through the following framework.

●  Representative Director, President, and CEO of Benesse Holdings

Chief Executive for climate change and other ESG concerns

●  Sustainability Promotion Committee

The Committee is chaired by the Executive Officer for Sustainability and consists of the President and CEO, CXO (Chief X Officer, chief officers in each area), company presidents, deputy company presidents (responsible for the Group's businesses), and general managers of cross-functional divisions. It discusses ways to improve the Benesse Group's sustainability activities (the Committee meets several times a year, or as needed, depending on the agenda).
The activities of the Committee are supervised by the Board of Directors, and matters discussed by the Committee are regularly reported to and discussed by the Executive Committee and the Board of Directors. In addition, corporate auditors and the chairperson's appointee may participate as observers at each meeting.

• Arrangements to Promote Sustainability

[Domestic Education (Benesse Corporation)]

Benesse Corporation, one of the Group's major subsidiaries, conducts analyses using the LEAP approach^* to identify the impact of risks and opportunities related to biodiversity, and formulates and implements strategies and initiatives based on this analysis.

* An integrated approach developed and recommended by the TNFD for assessing nature-related issues, including contact with nature, dependencies on nature, impacts, risks, and opportunities. The process involves scoping, followed by the steps of Locate, Evaluate, Assess, and Prepare.

Overview of analysis according to the LEAP approach

●  Overview of the relationship with natural capital

We conducted an analysis from the perspectives of dependence on nature and impact on nature.

• • We reviewed the relationship between our business and natural capital by checking the use of critical resources through value chain analysis(*1), ENCORE(*2), and the High Impact Commodity List(*3).
• • Based on the degree of impact on nature and the volume used, paper and mineral resources were identified as Benesse's resources of focus.

●  Supplier survey

Questionnaires were sent to the following suppliers.

• • Paper companies: We confirmed that they do not engage in deforestation or land conversion that damages natural capital.
• • Printing and bookbinding companies: While fewer companies have incorporated environmental management compared to paper companies, we confirmed that they are switching to environmentally friendly inks and printing methods, and that their environmental impact is not high.
• * We also conducted IBAT surveys of supplier factory locations for deliverables to the company and provided the results to each supplier.

●  Survey of company-owned sites

We conducted an IBAT survey for all of our locations.

• • We confirmed that the majority of the activities at our sites are office-based, and that the environmental impact of our operations is relatively low.
• • Our Okayama Head Office is located within a protected area, necessitating a certain degree of consideration for biodiversity.

1. *1 A method of analyzing each step of a business process, from purchasing raw materials, manufacturing, shipping, sales, marketing, providing services, and disposal.
2. *2  Exploring Natural Capital Opportunities, Risks and Exposures : A tool developed by Global Canopy, UNEP FI (United Nations Environment Programme Finance Initiative) and UNEP-WCMC (United Nations Environment Programme-World Conservation Monitoring Center) to investigate exposure to nature-related risks and to understand dependencies and impacts on nature.
3. *3  A tool developed by SBTN (Science Based Targets Network) that lists commodities (raw materials) that are considered to have a significant impact on nature.

Assessing risks and opportunities

Based on the analysis conducted using the LEAP approach, we evaluated the risks and opportunities as follows.

●  Risks

• • Impact on the supply chain and company-owned sites due to the intensification of wind and flood damage caused by the degradation of natural capital
• • Fluctuations in the purchase prices of paper, mineral resources, etc.
• • Strengthening of plastics regulations
• • Rising costs due to higher shipping costs and the switch to renewable energy

●  Opportunities

• • Cost reduction through reduced use of raw materials due to digitization
• • Reduction of tablet manufacturing costs and avoidance of price fluctuations risks in mineral resources through BYOD (Bring Your Own Device)
• • Reduced raw material use and costs by minimizing direct mail
• • Increased sales in response to growing environmental education opportunities
• • Enhanced recognition as a brand with low environmental impact

Future strategies and initiatives

As a result of the above considerations, the following strategies and initiatives will be developed and promoted.

●  Resource efficiency

• • Promotion of DX (digital transformation)
• • Consideration and implementation of BYOD for tablets

●  Addressing natural capital in supply chain management

• • Maintaining communication with paper and printing/binding companies regarding the formulation of environmental policies and promoting the increased use of environmentally friendly printing and ink, while considering requests and collaborations as needed

●  Resource recycling

• • Continuation of recycling teaching materials and toys
• • Continuation and expansion of tablet reuse
• • Continuation of waste recycling at each site

●  Collaboration with stakeholders

• • OECM (Other Effective Area-Based Conservation Measures) feasibility study
• • Exploring activities that contribute to Nature Positive outcomes

●  Environmental education

• • Strengthening the provision of developmentally appropriate environmental education opportunities

Benesse Holdings has established a Risk and Compliance Committee to promote risk management and compliance throughout the Benesse Group. The Committee is chaired by the Chief Legal and Risk Officer (CLRO), who oversees risk management and compliance, and includes the CEO, CXO, the presidents of major subsidiaries Benesse Corporation and Benesse Style Care, and the business managers of these companies. The Committee aggregates the results of various risk assessments at each Group company, including human resource risks, information security, BCP, and other sustainability-related risks, and formulates countermeasures and manages the promotion of Group-wide risks. In addition, the Sustainability Promotion Committee conducts detailed risk assessments of human rights and environmental risks at each Group company, formulates countermeasures and promotes management based on these assessments, and reports and makes proposals based on the results to the Board of Directors.

Benesse Corporation, one of our major subsidiaries, has been 14001-certified since 2004 and manages risks through this process. Specifically, each division formulates annual plans in line with the customers and business stage of each division, and promotes environmental load reduction, including GHG emissions reduction, and biodiversity restoration. We also conduct web-based environmental training for all employees to raise awareness. As part of these activities, we also conduct an annual management review with the president.

As a result of the above considerations, the following strategies and initiatives will be developed and promoted.

●  Procurement of paper that does not contribute to deforestation

 Reduce paper usage and maintain 100% procurement of paper that does not contribute to deforestation

●  GHG emissions reduction

 Same as the "Indicators and Targets Related to Climate Change"

●  Reduction of resource usage

Reduction of paper use through DX, and consideration and implementation of BYOD for tablets

●  Adoption of printing methods with low environmental impact

 Expansion of environmentally friendly printing methods and increased use of environmentally friendly inks

●  Promotion of recycling and reuse of teaching materials, teaching aids, etc.

 Continuation of collection of teaching aids and toys, continuation and expansion of tablet reuse, and continuation of recycling of waste at each site

●  Promotion of activities to improve biodiversity in areas surrounding business sites

 OECM feasibility study

●  Promotion of environmental education services, including biodiversity

 Expansion of provided content

[Domestic Education (Benesse Corporation)]

●  Procurement of paper that does not contribute to deforestation

 Reduce paper usage and maintain 100% procurement of paper that does not contribute to deforestation (FY2023)

●  Scope 1, 2 and Scope 3 Reduction Results

●  Energy Consumption

●  Resource Consumption, Waste Generation & Recovery Results

We are involved in recycling and resource circulation by reducing paper resources through the digitization of products and services, the procurement of FSC-certified paper resources, and the use of 100% used paper in packaging.

Initiatives with Products and Services

● Promoting the reuse of student tablets

We are promoting the reuse of student tablets used in Shinken Seminar, a program offered by the Benesse Corporation.

See the following website for details of this initiative.

• Promoting the Reuse of Student Tablets【Japanese】

● Kurukuru Recycle

Teaching equipment is taken and recycled after being used in Kodomo Challenge. Collected play materials are reprocessed into oil and used as energy. This is a chance for children to learn about the environment while having fun.

See the following website for details of this initiative.

• Kurukuru Recycle【Japanese】

● Tree planting through Akapen Sensei no Mondai

We contribute to the community and environment through tree planting based on the paper resources that are used to submit and return work with Akapen Sensei no Mondai, problems for correction in Shinken Seminar.

See the following website for details of this initiative.

• Tree planting through Akapen Sensei no Mondai【Japanese】

● Environmental Considerations for Ink and Paper in Tamahiyo Commercial Magazines

Benesse Corporation's commercial magazines for pregnancy and child-rearing, “First Tamago Club," "Mid-Term Tamago Club,” and "Late-Term Tamago Club," use environmentally friendly ink (vegetable oil ink ) and paper (FSC® certified paper) (with some exceptions).

See the following website for details of this initiative.

• 【What Print Magazines Can Do】for Future Generations: Environmental Considerations for the Six Newly Launched Tamahiyo Magazines 【Japanese】

Office Initiatives

● Thorough waste separation

An inspection is carried out quarterly to ensure thorough waste product separation.

Results are consolidated by floor and the information is shared through the company's internal website, with deficient floors being pointed out. Floors are encouraged continually throughout the year and in an average year, most floors are no longer deficient by the end of the year. We also host the Environmental Poster Contest for employees and their families during the summer holidays each year as a statement meant to encourage awareness. In addition to announcing winning posters in each age category online, submitted works on waste product processing that encourage caution are posted within the company.

● Reducing copy paper

In 2005, we began working to reduce the amount of copy paper used by making the amount used by each person per month as a guideline. We have reduced paper usage by more than 60% compared to 2005 when we started. We are involved in multiple efforts, including using monitors or projectors in meetings, reducing materials themselves, and printing double-sided on a single sheet of paper for multiple pages.

● Acrylic panel recycling and other initiatives

Instead of disposing of panels used as splash prevention guards for the Corona disaster as industrial waste, they were donated to a recycling company and re-made as acrylic panels again as recycled products, to be reused.Other activities include recycling helmets that have reached the end of their useful life and reusing office supplies.

Procurement Initiatives

The Benesse Corporation has established comprehensive green procurement guidelines for the procurement of raw materials. Environmental considerations are also undertaken in cooperation with clients. More specifically, we are involved in the following activities:

• ◆Establishing procurement standards for paper and raw materials for teaching aids and toys as well as product safety standards for manufacturing, strictly regulating prohibited materials that affect the environment, establishing an inspection system, and carrying out inspections
• ◆As part of our sustainable procurement, we source paper from paper companies that are all SGEC (Sustainable Green Ecosystem Council) forest certified*. Through SGEC activities, we also collect information on plantation countries.

 * SGEC forest certification is mutually recognised with the Programme for the Endorsement of Forest Certification Schemes (PEFC) forest certification, an international certification system.

Benesse Corporation Product Safety Initiatives

Complete Understanding of Raw Materials【Japanese】

Restrictions on Substances that are Harmful to the Environment and to People【Japanese】

Environmental Education

Please see the details below.

• Environmental Education