ESG
Disclosure in Line with TCFD Recommendations 2023
Disclosure in Line with TCFD Recommendations
Sega Sammy Group’s Efforts for ‘Environment’
Sega Sammy Holdings Inc. (hereinafter referred to as the Company) has set forth its group mission to be “Constantly Creating, Forever Captivating – Making Life More Colorful–“ and is promoting sustainability management. As part of this effort, we have identified five materialities (important issues) and set ‘environment’ as one of them. The Sega Sammy Group (the Group) has been working on effectively using energy, reducing the environmental load from offices and production bases, and environmentally conscious design of products/services to prevent global warming. In May 2022, we set a quantitative target for reducing greenhouse gas (GHG) emissions. In Scope 1 and 2, we aim to reduce group–wide emissions by more than 50% by 2030 based on the fiscal year ending March 2021 and achieve carbon neutrality by 2050. In Scope 3, Sega Corporation and Sammy Corporation, the Group’s principal operating companies, aim to achieve a more than 22.5% reduction that meets the SBT* level by 2030. This effort will be realized through engagement with suppliers through supplier surveys and collaboration to address climate change issues.
※Based on the requirements of the Paris Agreement and scientific evidence, companies set greenhouse gas emission reduction targets for 5 to 15 years in the future.
The Purpose of Expressing Support for TCFD and Participating in the TCFD Consortium
The Group has implemented climate-related financial disclosure in line with the TCFD framework since 2022. In June of the same year, the Group announced its endorsement of the main points of the final report (TCFD Recommendations) of the Task Force on Climate-related Financial Disclosure (TCFD), which provides a framework for climate-related information disclosure and will be used as guidelines to verify the adequacy of the Group’s climate change-related measures.
In addition, through participation in the TCFD Consortium, which comprises companies and financial institutions that support the TCFD, we will exchange information with other supporting companies and financial institutions to ensure more effective information disclosure.

Disclosure Items Recommended by TCFD Recommendations
Recommended Disclosure Items |
Recommended Disclosure Content |
Governance |
(a) Board oversight of climate change-related risks and opportunities (b) Management’s role in assessing and managing climate change-related risks and opportunities |
Strategy |
(a) Describe the short-, medium- and long-term climate change-related risks and opportunities identified by the organization (b) Describe the impact of climate change-related risks and opportunities on the organization’s business, strategy, and financial planning (c) Describe the resilience of the organization’s strategy based on various climate change-related scenarios, including a 2°C or lower scenario |
Risk Management |
(a) Describe the process by which the organization identifies and assesses climate change-related risks (b) Describe the process by which the organization manages climate change-related risks (c) Describe how the organization’s processes for identifying, assessing, and managing climate change-related risks are integrated |
Indicators and Targets |
(a) Disclose the metrics used by the organization to assess climate change-related risks and opportunities in line with its strategy and risk management process (b) Disclose Scope 1, Scope 2, and, if applicable, Scope 3 greenhouse gas emissions and related risks (c) Describe the targets used by the organization to manage climate change-related risks and opportunities and performance against those targets |
(Source) Task Force on Climate-related Financial Disclosures, “Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures,” June 2017
Recommended Disclosure Item: Governance
(a) Board Oversight of Climate Change-Related Risks and Opportunities
As an organization to discuss and deliberate on the basic policies and important matters related to the Group’s climate change, we established the Group Sustainability Subcommittee within the Group Management Committee, an optional committee, in April 2022. The Group Sustainability Subcommittee is composed of the President and Group CEO of the Company, as well as directors and members of the Board Audit Committee who are consistent with sustainability in the skills matrix of the Board of Directors and also includes the CFO of the Group from the perspective of disclosure by the TCFD. The Sustainability Division of the Company handles the secretariat.
The Board of Directors receives reports on the policies and plans discussed in the Group Sustainability Subcommittee and approves them as appropriate.
[Sega Sammy Group Sustainability Governance System]

【Director Skill Matrix】

(b)Management’s Role in Assessing and Managing Climate Change-Related Risks and Opportunities
The President and Group CEO/Representative Director also serve as Chairman of the Group Sustainability Subcommittee, which has the highest responsibility for climate-related initiatives. The Group Sustainability Subcommittee discusses general sustainability issues, policies, and plans for achieving sustainability goals and monitors the progress of the Group’s initiatives. Discussions by the Group Sustainability Subcommittee are reported to and approved by the Board of Directors before proceeding with initiatives.
In addition, under the Group Sustainability Subcommittee, the Group Sustainability Promotion Meeting has been established as a forum for discussing, verifying, and sharing sustainability-related measures. The Group Sustainability Promotion Meeting is held twice a year (in June and October). It consists of executives in charge of sustainability at major Group companies, including Sega Corporation and Sammy Corporation, which account for 90% of the Group’s sales. The General Manager of the Sustainability Division manages the meetings and monitors the status of the promotion of initiatives at each Company.
Under this system, the Group discloses its policies and manages the progress of each Company through its environmental policy. On the other hand, as a factor affecting the environment, we compile greenhouse gas emissions and disclose this information in our integrated report and on our corporate website. While compiling the disclosed information, the Group Sustainability Subcommittee meets to receive reports and instructions from management.
In this way, the monitoring of climate change issues by management effectively implements plans and monitors performance to achieve our goals.
■ Sega Sammy Holdings Inc. Integrated Report
■ Sega Sammy Holdings Inc. Corporate Website Sustainability ESG Environment
Recommended Disclosure Item: Strategy
(a) Climate Change-Related Risks and Opportunities Identified by the Organization in the Short, Medium, and Long Term
In order to understand the risks and opportunities that future climate change may have on our business activities and financial impact, we have conducted an analysis using scenario analysis methods in accordance with the framework proposed by the TCFD to predict changes in the external environment.
We disclose the results of our scenario analysis based on three axes: short-term (within 2 years), medium-term (over 2 years to within 10 years), and long-term (over 10 years) for the timing of the emergence of climate change-related risks and opportunities that are expected to have a significant impact on the Group.
[Definition of the Timing of Emergence of Climate Change-Related Risks and Opportunities in the Sega Sammy Group]
Time Axis |
Emergence Time |
Definition |
Short-term |
Within 2 years |
Execution period for business plans, etc. |
Medium-term |
Over 2 years to within 10 years |
Until around 2030 |
Long-term |
Over 10 years |
2030-2050 |
(b) The Impact of Climate Change-Related Risks and Opportunities on the Organization’s Business, Strategy, and Financial Planning
<Analysis Method and Assumptions>
Based on the requirements of the TCFD recommendations and with the advice of external experts, the Group conducted a scenario analysis for the following purposes:
・Understand the risks, opportunities, and impact of climate change on our Company
・The resilience of the Group’s strategy for the world between 2030 and 2050 and the need for further measures
In our scenario analysis, we referred to multiple existing scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC). We assumed two worlds: one in which the goal of the Paris Agreement to limit the global average temperature rise to 1.5°C compared to pre-industrial levels is achieved (the “below 1.5°C scenario”), and another in which no policies or systems are introduced, and the average temperature rises above the present level (the 4˚C scenario).
Source: IPCC AR6 WG1 SYR SPM.8
Scenarios referenced
1.5°C scenario: “Net Zero Emissions by 2050” (IEA (*1), 2022), “SSP1-1.9” (IPCC (*2), 2021)
4°C scenario: “Stated Policy Scenario (STEPs)” (IEA, 2022), “SSP5-8.5” (IPCC, 2021)
*1 IEA: The International Energy Agency is an autonomous organization established in 1974 within the framework of the OECD (Organization for Economic Cooperation and Development) after the first oil crisis. It provides information such as medium- to long-term supply and demand outlooks necessary for energy policy.
*2 IPCC: The Intergovernmental Panel on Climate Change is an intergovernmental organization established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP). It provides scientific information necessary for climate change policies of governments of various countries.
<Analysis Results>
From a scenario analysis assuming two worlds, we identified the risks and opportunities that climate change poses to our group and examined transition risks, such as the introduction of policies and regulations by governments, technology, and market changes, as well as physical risks, such as abnormal weather caused by climate change.
【Scenario Analysis Results (Risks/Opportunities, Financial Impact】
Category |
Risks/ |
Timing |
Impact on the SEGA SAMMY Group |
Impact |
MeChanges to policies |
Introduction of GHG emission |
Medium/ |
●The carbon tax burden will increase if governments adopt more brutal climate change-related regulations and apply carbon taxes to greenhouse gas emissions. |
Medium |
Medium/ |
●If governments adopt more brutal climate change-related regulations and apply carbon taxes to greenhouse gas emissions, manufacturers will pass on the resulting increase in the carbon tax burden, leading to higher procurement costs. |
Large |
||
Medium/ |
●〇Electric power charges could increase or decrease due to the use of electric power produced using renewable energy. |
Small |
||
Technology and Market |
Introduction |
Short- to |
●Manufacturing costs could rise due to transitioning to alternative materials (recycled/biomass plastics) with smaller environmental footprints in response to tougher regulations. |
Large |
Relocation of highly |
Medium/ |
〇By centralizing head office functions in Sumitomo Realty & Development’s Osaki Garden Tower, which has advanced environmental systems and features, we will reduce greenhouse gas emissions and curb cost increases resulting from the future introduction of carbon taxes. |
Small |
|
Recycling/Reuse |
Short- to |
〇We will reduce costs by recycling used amusement machines and reusing parts. |
Small |
|
Reduction of parts, materials, and packaging through environment-focused changes to marketing formats |
Medium/ |
〇We will reduce the cost of parts, materials, packaging, etc., by shifting to environment-friendly marketing formats for online game sales and sales of amusement machines. |
Large |
|
Physical changes |
Increasing seriousness of abnormal weather events |
Medium/ |
●Sales could decline due to damage and shutdowns affecting manufacturing facilities and offices.。 |
Small |
Short term: within 2 years, Medium term: over 2 years to within 10 years, Long term: over 10 years
[Carbon Pricing]
For carbon pricing, which can be quantitatively evaluated based on the third-party assurance of greenhouse gas emissions, we have calculated based on the following calculation. In the future, we will continue to consider disclosing quantitative evaluations for items other than carbon pricing.
Greenhouse gas emissions (Scope 1 and 2) were calculated by multiplying the emission unit by the activity volume and multiplying it by the assumed carbon tax price for each 1.5°C scenario and 4°C scenario to calculate the impact of carbon pricing. In 2030, it was found that the burden of the carbon tax would be 530 million yen in the 1.5°C scenario and 160 million yen in the 4°C scenario, and in 2050 it would be 950 million yen in the 1.5°C scenario and 340 million yen in the 4°C scenario. We will continue to work towards reducing greenhouse gas emissions by about 50% by 2030 and achieving carbon neutrality by 2050 as a group-wide goal.
Scenario |
2030 |
2050 |
1.5℃ scenario |
▲530 million yen |
▲950 million yen |
4℃ scenario |
▲160 million yen |
▲340 million yen |
Assumed carbon tax price: (1.5°C scenario) US$140/t-CO2 in 2030, US$250/t-CO2 in 2050, (4°C scenario) US$42/t-CO2 in 2030, US$89/t-CO2 in 2050 (quoted from IEA (World Energy Outlook 2022)), assuming an exchange rate of US $1=135 yen (adopting the AR at the time of our third quarter results for the fiscal year ending March 2023)
*Assuming that Scope 1 and 2 are targeted, greenhouse gas emissions are the same as in the fiscal year ending March 2022.
(c)Resilience of the Organization’s Strategy Based on Various Climate Change-Related Scenarios, including Scenarios below 2°C
Based on our calculation of the impact on our business and finances in two scenarios assuming 2030-2050, the Group assumed that the following three items would have a significant impact:
・If regulations related to climate change are strengthened and a carbon tax is introduced for greenhouse gas emissions, the carbon tax will be passed on to procurement prices, and procurement costs will increase.
・Changing alternative materials with less environmental impact (recycled plastic/biomass plastic) due to regulatory strengthening will increase manufacturing costs
・By changing the sales of games and game machines to environmentally friendly forms such as online sales, we can reduce costs by reducing parts and packaging materials.
In order to ensure the resilience of our strategy, we will develop and implement countermeasures.
【Countermeasures】
Impact on the Group (Risk ● / Opportunity 〇) |
Impact |
Countermeasure |
● If regulations related to climate change are strengthened, and a carbon tax is introduced for greenhouse gas emissions, the carbon tax will be passed on to procurement prices, increasing procurement costs. |
Large |
Consider selection criteria for trading partners / Continue to strengthen supplier engagement. |
●The change to alternative materials with less environmental impact (recycled plastic/biomass plastic) due to regulatory strengthening will increase manufacturing costs. |
Large |
Review product materials while considering manufacturing cost control. |
〇 By transforming the sales of online games and game machines into environmentally conscious sales forms will decrease costs, such as reducing parts and packaging materials. |
Large |
Build partnerships with platformers which are working on environmental measures and work to reduce environmental impact / Reduce environmental impact by standardizing game machine parts and minimizing replacement parts. |
Recommended Disclosure Items: Risk Management
(a) The Process by Which the Organization Identifies and Assesses Climate Change-Related Risks
The Company has identified climate change-related risks that are expected to have a significant impact on the group as follows:
・Risks related to the “transition” to a low-carbon economy
Climate change policies, regulations, technological development, market trends, and evaluations.
・Risks related to “physical” changes caused by climate change
Acute or chronic damage caused by disasters brought about by climate change
In addition, for climate change-related risks that are expected to have a significant impact, we evaluate their importance based on the impact assessment criteria using internal indicators.
(b) The Process by which the Organization Manages Climate Change-Related Risks
The process for managing climate change-related risks in our group involves monitoring and discussing progress on countermeasures within the Group Sustainability Subcommittee and reporting and obtaining approval from our Board of Directors. In addition, the management content is shared with sustainability officers from each business company at the Group Sustainability Promotion Meeting under the Group Sustainability Subcommittee.
(c) Integration of the Organization’s Process for Identifying, Assessing, and Managing Climate Change-Related Risks
The Group established a Group Risk & Compliance Subcommittee under the Group Management Committee in April 2022 as a forum for discussing, verifying, and sharing measures and information related to risk management. The Group Risk & Compliance Subcommittee comprises directors and audit & supervisory board members who match risk management and compliance in the skill matrix of the Board of Directors.
For climate change-related risks, progress on countermeasures is monitored in the Group Sustainability Subcommittee and shared with the Group Risk & Compliance Subcommittee to be integrated into potential risks within the group. After verifying and evaluating major risks, the results of discussions and verification of countermeasures are reported to the Board of Directors.
In addition, when deciding on business portfolios or making decisions on large-scale investments and financing, we check from a sustainability perspective, including climate change-related risks as one of the criteria.
【Schematic Diagram of SEGA SAMMY Group’s Corporate Governance Structure】

Recommended Disclosure Item: Indicators and Targets
(a) Metrics Used by the Organization to Assess Climate Change-Related Risks and Opportunities in Line with its Strategy and Risk Management Process
The Group has established greenhouse gas emissions (Scope 1, 2, 3) as a metric for managing climate change-related risks and opportunities.
(b) Scope 1, Scope 2, and, if Applicable, Scope 3 Greenhouse Gas Emissions and Related Risks
The Group has been working on calculating the greenhouse gas emissions of the entire group since fiscal year 2014.
For the fiscal year ending March 2022, the Group has obtained third-party assurance from SOCOTEC Certification Japan for Scope 1, 2, and 3 greenhouse gas emissions.
【SEGA SAMMY Group Scope 1, 2, and 3 Greenhouse Gas Emissions Performance for the Fiscal Year Ending March 2022】
Category |
Content |
Emissions (t-CO2) |
Share (%) |
Scope1 |
|
7,049 |
1.1 |
Scope2 |
|
20,982 |
3.3 |
Scope3 |
|
607,175 |
95.6 |
Total of Scope1、2 and 3 |
|
635,207※1 |
100.0 |
※1 Third-party assurance obtained by SOCOTEC Certification Japan
【Third-Party Assurance Report by SOCOTEC Certification Japan for the Fiscal Year Ending March 2022】

(c) Goals and Performance against Goals Used by the Organization to Manage Climate Change-Related Risks and Opportunities
【Regarding Scope1 and 2】
We are working towards achieving carbon neutrality by setting a deadline.
・Achieve carbon neutrality by 2030 in the Entertainment Content and Pachinko & Pachinko Machines businesses, our core businesses
・Achieve carbon neutrality by 2050 group-wide
SEGASAMMY Colorful Carbon Zero
“SEGASAMMY Colorful Carbon Zero” is the name of the Group’s action to promote efforts to reduce greenhouse gas emissions. The word “Colorful” implies achieving carbon zero through various measures.
【SEGA SAMMY Group Scope1, 2 Roadmap for Reducing Greenhouse Gas Emissions】

【SEGA SAMMY Group Scope1, 2 Greenhouse Gas Emissions Trend Graph】

【SEGA SAMMY Group Scope1, 2 Comparison Table of Greenhouse Gas Emissions Targets and Performance】
Category |
FYE Mar. 2021 (t-CO2) |
FYE Mar. 2022 (t-CO2) |
2030 (t-CO2) |
Entertainment Content Business (including SSHD) |
8,322 |
5,952 |
Group-wide reduction of 50% or more (compared to 2021) |
Pachislot and Pachinko Machines Business |
4,762 |
3,824 |
|
Resort Business |
13,537 |
18,256 |
|
Total of Scope 1 and 2 |
26,621 |
28,032 |
<Examples of Initiatives>
The Group has significantly reduced energy consumption through energy-saving initiatives and the consolidation of offices into high-environmental-performance buildings. To conserve the environment and further reduce CO2 emissions, we have established a scheme in cooperation with Sumitomo Real Estate Development Co., Ltd. and Tokyo Electric Power Energy Partners, Inc. to introduce raw green power “derived from newly constructed solar power plants” to the exclusive areas of tenants in our office buildings, which will directly contribute to increasing the total amount of renewable energy sources in Japan. The scheme has been in place since December 2021 in the exclusive areas of the Group’s head office.
In addition, by utilizing non-fossil certificates for the nighttime hours when solar power generation is not available, the Group can convert virtually 100% of the electricity used at its head office to green power.

【About Scope 3】
Sega Corporation and Sammy Corporation, the Group’s leading operating companies, aim to achieve a reduction of approximately 22.5% or more, which meets the SBT level, by 2030, and are implementing initiatives such as increasing engagement with suppliers through supplier surveys and other means.
【SEGA SAMMY Group Scope 3 Greenhouse Gas Emission Volume Trend Graph】

【Sega-Sammy Scope 3 Greenhouse Gas Emissions Targets and Results Comparison Chart】
Category |
FYE Mar. 2021 (t-CO2) |
FYE Mar. 2022 (t-CO2) |
2030 (t-CO2) |
SEGA |
169,021 |
221,244 |
Reduction of approx. 22.5% or more (compared to 2021) |
Sammy |
200,921 |
235,799 |
|
Scope 3 total |
369,942 |
457,043 |
<Examples of Initiatives>
The Group aims to reduce Scope 3 greenhouse gas emissions and, as part of this effort, has been conducting supplier surveys since 2022. The Group has conducted supplier surveys since 2022 as part of this effort.
【Number of Suppliers Surveyed】
|
FYE Mar.2022 |
FYE Mar.2023 |
Number of suppliers surveyed |
24 companies |
41 companies |