SEGA SAMMY Colorful Carbon Zero*1
To achieve carbon neutrality by 2050
To prevent global warming, the SEGA SAMMY Group is promoting initiatives such as effective use of energy, reduction of environmental impact from offices and production sites, and environmentally conscious design of products and services. The Group aims to achieve carbon neutrality in Scope 1 and Scope 2 in its main businesses (entertainment content and pachinko/pachislot machines) by 2030, and expects to reduce GHG*2 emissions by about 50% for the Group as a whole. In addition, the Group as a whole aims to achieve carbon neutrality by 2050.
For Scope 3, SEGA SAMMY aims to achieve a “reduction of approximately 22.5% or more of GHG emissions” to meet the SBT*3 level by 2030.
As part of this effort, we will also conduct a supplier survey starting in 2022. In addition to enhancing engagement with suppliers, we use the results obtained to reduce GHG emissions in our supply chain.
Disclosure based on TCFD recommendations
Global Warming Countermeasures
- Decarbonization with raw green electricity
The Group has achieved significant energy savings through energy conservation efforts and the consolidation of its locations into high environmental performance buildings. As part of our efforts to preserve the environment and further reduce CO² emissions, we have partnered with Sumitomo Realty & Development Co., Ltd. and TEPCO Energy Partner, Inc. to build a scheme to adopt raw green electricity* for the tenant spaces of office buildings. Under the scheme, electricity generated at a new photovoltaic power plant is used for the office space of the Group headquarters. This directly helps increase the total amount of renewable energy sources in Japan. In addition, by using non-fossil certificates at nighttime and other times when solar power generation is not available, the Group’s head office will be able to use virtually 100% green power.
*Green electricity that is considered to have been transmitted directly from the power plant through the general power transmission network by matching the time of power generation and the time of consumption in units of 30 minutes.
Decarbonization of SEGA SAMMY Group headquarters through the use of green electric power produced by newly installed generation facilities and supplied through the power grid (Only available in Japanese)
- Use of 100% Renewable Energy to Power Data Centers
The SEGA SAMMY Group is determined to use the full potential of information technology. Since 2018, we have been progressively centralizing our data centers, which were previously dispersed among Group companies, into data centers operated by Equinix*. Thanks to proactive environmental initiatives, Equinix has achieved a 100% renewable energy ratio at its facilities in Japan. By centralizing our systems into Equinix data centers, we have reduced our GHG emissions while also saving costs. As of April 2022, we are centralizing core systems, workflows, development environments, and other elements belonging to 24 Group companies, including regional units, such as Phoenix Seagaia Resort and SEGA SAMMY Golf Entertainment. We will continue to expand the scope of centralization. We will also consider the increased use of cloud services operated by providers that are proactively switching to renewable energy.
* Equinix is a global digital infrastructure company. In todayʼs cloud-centric world, Equinix provides interconnection services for industry leaders in a wide variety of fields, including finance, manufacturing, mobility, transportation, government, healthcare, and education. In an effort to counter global warming, Equinix is working to reduce its reliance on fossil fuels and has invested over $129 million in energy efficiency measures since 2011, leading to the avoidance of emissions equivalent to approximately 430,000 metric tons of carbon dioxide (mtCO2e). In 2019, over 90% of the energy used at the companyʼs global data centers was derived from clean, renewable sources.
- SEGA SAMMY-no-Mori
The SEGA SAMMY Group endorses the intent of Adopt-A-Forest Promotion Program, a program led by Nagano Prefecture acting as an intermediary, and signed an “adopt-a-forest” contract with Minamiaiki Village of Saku County in Nagano Prefecture in April 2008. The contracted forest covers an area of 3,633 hectares (roughly 773 times the area of the Tokyo Dome) of privately-owned forest. We named the forest SEGA SAMMY-no-Mori and support global environmental preservation by funding part of forest maintenance activities to sustain the forest’s ability to absorb CO2. As a result of maintenance efforts, the volume of CO2 absorbed by the forest in fiscal 2022 was 171.3 t-CO2. With the impressive cooperation of local people, SEGA SAMMY no-Mori also fosters an awareness of global environmental protection among employees.
In January 2018, our ten years of performance in forest maintenance activities and interaction with the local community were recognized by the presentation of the Nagano Prefectural Governor’s Award in the category of utilization of prefectural tax for Nagano Prefecture’s forest creation.
Reducing Environmental Loads Relating to Products and Services
- Environmentally Responsible Designs
We are continually working to reduce the power consumed by our products. For example, the power consumption of SEGA medal game machines The Medal Tower of Babel W! and Gattsuri Go! have been reduced by 44-62% compared with the earlier Arabian Jewel version. These amusement machines are designed so that parts of current products can be reused in new products, and StarHorse4 uses the main monitor from StarHorse3 and remodels the satellites to enable the continuation of the game, in an effort to reduce waste.
- Installation of LED lighting at the SAMMY Kawagoe Factory
We are saving electric power at the SAMMY Kawagoe Factory by using timers and motion detectors to turn lights on and off. We will further improve environmental performance by replacing 5,493 lights with LED lights between July and October of 2021. The transition to LED lighting will cut electric power costs of over 50% while also reducing CO2 emissions.
- Introduction of Green Electric Power Certification System
Since April 2005, SEGA has annually been purchasing one million kWh of green-certified electric power produced using micro-hydro and biomass technologies under a contract with Japan Natural Energy Company Limited. In the year ended March 2021 the scheme generated approximately 170,000 kWh, which is expected to reduce CO2 emissions by a total of approximately 518 tons.
- Partial Elimination of Plastic Packaging by SEGA Europe
SEGA Europe Ltd. has begun transitioning to fully recyclable packaging materials for all of its PC packages. This change is being driven by the shared commitment of Sports Interactive and Sega Europe to contribute to the prevention of global warming by finding alternatives to plastic packaging, including the use of 100% recycled paper for both packaging and manuals. Because these materials do not require specialized processing, they can be disposed of by ordinary households as paper resources for recycling. Additionally, all printed matter is produced using water- and vegetable-based inks, while disks are suitable for recycling by specialized processors.
- 100% Use of Environment-Friendly Timber
We are transitioning to the use of environmentally responsible PEFC-certified*2 timber at the Sammy Kawagoe Factory. In the fiscal year ended March 2021, all of the wood used (29t) was switched to PEFC certified wood.
*2 Programme for the Endorsement of Forest Certification, an international forest certification system established to encourage sustainable forest management.
- SEGA TOYS Eco Project
SEGA TOYS Co., Ltd. has launched the “SEGA TOYS Eco Project” (starting Wednesday, October 14, 2020) as part of its efforts to realize the Sustainable Development Goals (SDGs) proposed by the United Nations, and is committed to long-term environmental sustainability activities. By launching a project to collect unneeded toys, we will work together with our customers to actively address the “responsibility to create and use” so that the earth will remain beautiful even when children grow up to be adults. Gatoys is committed to solving social issues and contributing to achieving the goals of the SDGs so that we can permanently bring joy to people around the world.
- Eco Mark certification for Sheraton Grande Ocean Resort
The flagship hotel of Phoenix Seagaia Resort, Sheraton Grande Ocean Resort, obtained certification as of December 24, 2021 (Friday) under the certification criteria of Eco Mark Product Category No. 503 “Hotel/Inn Version 2.1” established by the Japan Environment Association. The Eco Mark “Hotel/Inn” and the “Hotel/Inn” are the same as the Eco Mark. The Eco Mark “Hotel/Inn” is awarded to hotels and inns in recognition of their basic environmental measures such as energy saving, water saving, and waste reduction, as well as their environmental communication that deepens users’ understanding of environmental activities of accommodation facilities and makes them aware of environmental considerations through their stay. The resort area where the Sheraton Grande Ocean Resort is located is home to a prestigious golf course and tennis club, as well as horseback riding, Segway, and other activities that allow guests to enjoy the lush black pine forest. Since its opening, the resort has worked to protect and nurture the black pine forest and clean the beaches, as a resort that coexists with nature. In this year’s judging, the hotel was highly evaluated for its business activities while protecting the local natural environment, including the protection and cultivation of black pine forests, beach cleanups, and maintenance of green areas on the premises, as well as for its “environmental considerations in hospitality” such as eco programs in guest rooms and provision of environmentally friendly foods and activities.
- Ensuring harmony between PHOENIX RESORT Co., Ltd. and a black pine forest
The amount of CO2 fixed by a total of approximately 2,417,000 m2 of green space at Phoenix Seagaia Resort is equivalent to the amount of CO2 emitted when the annual electricity consumption of 2,168 households is calculated. The new ecosystem-oriented pine tree management method that we have developed, using only natural substances that are completely unaffected by environmental hormones, has resulted in an astonishing 0.4 dead pine trees per hectare per year, a figure that has been achieved in some years since the resort was developed, while the number of severely damaged pine forests, in which more than 15 pine trees per hectare die, has been increasing nationwide. In some years, the number of dead pine trees has reached an astonishing 0.4 trees per hectare per year. The project also contributes to the maintenance of the ecosystem through the prevention of global warming and the purification of the atmosphere.
- Measures to Reduce Environmental Impact of Amusement Machines
In the amusement machine field, the SEGA SAMMY Group, which is engaged in the entertainment content business, is introducing “CVT Kits,” which upgrade content by replacing the base and distributing downloads. The “CVT Kit” makes it possible to upgrade amusement machines without purchasing a new chassis. By eliminating the need to dispose of the enclosure when replacing it, it is expected to reduce environmental impact, mainly CO2 emissions. It also reduces facility operators’ capital investment and disposal costs. The full-scale introduction of the “CVT Kit” began around 2000, and it has been used in the renewal of the Derby Owners Club and WCCF series, both of which were large enclosures at the time. The “CVT Kit” can be used not only for version upgrades of the same series, but also for new models, and has functioned effectively since that time as one of the measures to reduce environmental impact, as in the case of the Derby Owners Club chassis, which was used for the first generation MJ. The components used have also changed over time. Currently, changes in decorations are designed and manufactured with a greater awareness of reducing environmental impact so that existing components can be used as they are, for example, by utilizing LEDs to switch colors rather than replacing plastic parts, and by switching software version upgrades from DVD or USB distribution to large-volume distribution. The “CVT Kit” is also designed and manufactured with a view to reducing environmental impact. In addition, as a more advanced measure than the “CVT Kit,” the company is also working to collect the market’s casings, recondition them, modify them, and ship them as a new product for Kemono Friends 3.
- Initiatives to Reduce the Environmental Impact of the Pachinko and Pachislot Machine Business
In the pachislot and pachinko machine business, Sammy has set a target for the number of parts that can be reused in 2016 by standardizing parts, circuit boards, and units from the design and development stages with the aim of increasing the reusability of parts that make up pachislot and pachinko machines and reducing product-related CO2 emissions, etc. As of March 31, 2022, the recycling rates for pachislot machines for pachislot and pachinko machines was 94.6% and 98.1%, respectively. The Company will continue to share and reuse components for both pachislot and pachinko machines to a greater extent than before, and will aim to maximize the reuse effect by sharing the same pachinko part mechanisms and expanding the scope of common use of the common base.In addition, all pachislot and pachinko machines currently on the market are equipped with eco-functions, and for pachislot machines, the eco-function mark (a mark that can be displayed on machines equipped with the “eco function,” a unified function aimed at reducing power consumption) provided by the Japan Electric Amusement Machine Manufacturers Association (JEMA) is displayed on the The mark is displayed on LCDs and pamphlets. In pachinko machines, although there is no common mark for the industry association, “power-saving mode” is indicated in letters on the LCDs. Environmental information is disclosed on all pachinko/pachislot machine casings by means of environmental labels, etc. Within the pachinko/pachislot industry, we are collaborating with other manufacturers to create platforms for parts and units, and we are continuing our efforts to reduce the environmental impact of the industry as a whole.We are also considering reducing CO2 emissions during product delivery, and are reviewing the excessive quality of plastic and cardboard packaging materials, as well as reducing the number of items and quantity. We are also considering switching packaging materials, including the use of recyclable packaging materials and cardboard with high recycled paper content, and will continue to reduce and use environmentally conscious packaging materials.
Effective Resource Utilization, Waste Management
- Recycling of Used Amusement Machines
SEGA Logistics Service Co., Ltd. is working to reduce disposal costs and prevent illegal dumping through the development of a nationwide recycling system. It stores and manages used amusement machines, prepares units that are in good condition for sale and reuse, and extracts reusable parts from unwanted machines for use in repairs, before arranging their disposal as industrial waste. Intermediate industrial waste processing companies have been recruited to operate at SEGA Logistics Service’s Yako Plant in Chiba Prefecture, where they manually disassemble machines and sort the materials used under a system that ensures 100% recycling, with zero landfill disposal and zero direct incineration. Unwanted cards and papers from amusement machines and some types of plastic waste are processed into the alternative fuel RPF*1 , which is used to recover heat through thermal recycling.
*1 Refuse paper and plastic fuel (RPF) is a high-grade solid fuel made from industrial waste, especially waste plastic and used paper that are unsuitable for recycling as materials.
- Reuse and Recovery of Parts from Pachislot and Pachinko Machines
In 2016 Sammy set targets for the number of reusable parts and has been working to improve the reusability of Pachislot and Pachinko machine parts by working from the design and development stages to standardize parts, circuit boards, and units. In the fiscal year ended March 2023, the recovery rate reached 92%. Sammy will continue its efforts to maximize the benefits of reuse. Sammy is also working with other manufacturers to develop platforms for parts and units as part of industry-wide efforts to reduce environmental impacts.
Contributing to Local Environments
- Protecting loggerhead sea turtles through beach cleanup campaigns at the Seagaia resort in Hitotsuba
At Phoenix Resort, we have conducted the Seagaia Beach Cleaning Campaign in Hitotsuba since 2015 to protect loggerhead sea turtles, a designated natural treasure of Miyazaki Prefecture, and their spawning areas.
Every year, we invite around 100 volunteers, including local residents and members of the Junior Sports Club, to participate by, for example, collecting household waste and driftwood that could hinder loggerhead sea turtles from reaching land where they can lay their eggs.
Before the cleanup, participants have the opportunity to attend a lecture by Mr. Tomohisa Deguchi on loggerhead sea turtles and their ecology. Mr. Deguchi is a member of the Miyazaki Wildlife Research Group, which is a non-profit organization, and he is also head of the Miyazaki City Phoenix Zoo. Although we have not been able to hold the campaign with local residents in 2020 due to the impact of COVID-19, we are committed to continuing the campaign in the future.
- Support for Environmental Initiatives
In promoting sustainability, we participate in the following environmental initiatives.
■ Participation in the United Nations Global Compact
In April 2014, SEGA SAMMY HOLDINGS became the first company in the Japanese video game and amusement machine industry to sign the United Nations Global Compact. Since then, we have been striving to comply with and practice these principles and fulfill our corporate social responsibility.
The UN Global Compact is a framework proposed by then UN Secretary-General Kofi Annan at the World Economic Forum (Davos) in 1999. It calls for voluntary corporate initiatives in the areas of human rights, labor, environment, and anti-corruption, with the aim of “achieving sustainable growth through responsible and creative leadership by each company, acting as a good corporate citizen.
■ TCFD Consortium
In June 2022, SEGA SAMMY HOLDINGS INC. announced its support for the TCFD, which encourages companies to disclose financial information related to climate change. We have also joined the TCFD Consortium, which was established by the Ministry of Economy, Trade and Industry, the Ministry of the Environment, and the Financial Services Agency as a forum for discussion among companies and financial institutions that support this initiative. Through our participation in this consortium, we are continuing our efforts to appropriately disclose the risks and opportunities that climate change poses to our business.
■ CDP (Climate Change and Water Security)
We have participated in CDP, an NGO widely recognized worldwide as the global standard for corporate environmental disclosure, and have responded to the CDP Climate Change and Water Security questionnaire.
- Third Party Assurance Data
We have obtained third-party assurance of our GHG emissions from Socotec Certification Japan K.K. Through these efforts, we are increasing the transparency of our environmental disclosure data.