TCFD-aligned Disclosure
In April 2025, our group expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and joined the TCFD Consortium. Starting in June 2025, we began disclosing climate-related information in accordance with the TCFD framework. We are committed to enhancing both the quality and volume of disclosure by strengthening governance and analyzing climate-related risks and opportunities across our group businesses.
Governance
Under our guiding philosophy of "... planning the Future: developing people and creating the future," we aim to contribute to a sustainable society by strengthening our framework for promoting sustainability, including climate action.
In line with our environmental policy, we have established a governance structure centered on oversight by the Board of Directors and management by the Sustainability Officer to integrate climate and other environmental issues into our core business strategy.
Climate Risk Management Structure
The division in charge of sustainability in the Management Headquarters manages various issues related to climate change and the environment in general, supervised by the director with jurisdiction over the Management Headquarters and the Finance Division.
These departments are responsible for day-to-day operations related to sustainability. Their activities are conducted under the supervision of the Board of Directors and, as necessary, matters are reviewed by the Executive Committee or Board.
Strategy
Scenario Analysis
Our sustainability division identifies key risks and opportunities in relation to climate change and the specific financial impact.
We developed two scenarios for our analysis: one in which global carbon neutrality is achieved by 2050, and another in which global warming intensifies. Based on these scenarios, we examined the projected impacts by 2030 to enhance our resilience.
Scenario Assumptions
- 1.5–2.0°C Scenario: A transition to a decarbonized society globally by 2050, accompanied by tighter regulations and changing market conditions.
- 4.0°C Scenario: Limited progress toward decarbonization, leading to severe climate change, intensified natural disasters, and increasing adaptation demands.
References: IEA WEO2024, IEA WEO2022, Ministry of the Environment
Business Impact Assessment
Based on the scenario analysis, we qualitatively evaluated the potential financial impacts on our business, focusing on expected revenue impacts by 2030. Identified risks and opportunities are summarized in the table below.
Scope: Entire LIKE Group
| Key Risks and Items | Potential Events | Time Horizon | Risks | Impact Scale (based on comparison between FY05/24 and FY05/30) |
Our Initiatives | Opportunities | Impact Scale (based on comparison betweenFY05/24 and FY05/30) |
|||
|---|---|---|---|---|---|---|---|---|---|---|
| 1.5℃-2.0℃ | 4.0℃ | 1.5℃-2.0℃ | 4.0℃ | |||||||
|
Transition Risks
|
Policy/Regulatory
|
Introduction of carbon tax | Medium-term | Increased costs due to CO₂ emission charges | High | Low | - Gradual shift to renewable energy across the Group | - Cost reduction and lower environmental impact through transition to renewable electricity | Medium | Low |
| Mandatory GHG emission disclosure | Medium- to long-term | Higher operating costs due to reporting and calculation requirements | Medium | Low | - Gradual disclosure based on requirements | - | - | - | ||
|
Market
|
Changes in energy prices | Short- to long-term | Increased utility and transportation costs due to rising energy prices | High | High | - Gradual switch to energy-efficient equipment at facilities - Consolidated procurement of food and supplies via LIKE Products to reduce costs by leveraging group scale |
- Energy cost savings through efficient equipment - Cost reductions via consolidated procurement at LIKE Products |
Medium | Medium | |
|
Reputation
|
Perceived lack of environmental commitment by shareholders and other stakeholders | Medium- to long-term | Potential instability in stock price, higher funding costs, and loss of business partners | High | Low | - Gradual disclosure on website of GHG emissions and renewable energy usage aligned with TCFD - Promotion of environmental initiatives as an Eco-First certified company |
- Improved reputation through proactive climate disclosure 1. Higher customer trust and preferred business relationships 2. Recognition by capital markets (e.g. inclusion in ESG indices) and acquisition of stable, long-term investors |
Medium | Low | |
|
Physical Risks
|
Acute
|
Severe disasters such as typhoons, heavy rains, or floods | Short- to long-term | Damage to operating and tenant facilities, business suspension, and increased procurement costs for food and supplies | High | High | - Enhancement of BCP (Business Continuity Planning), including emergency response systems and contact networks - Stockpiling of emergency food and supplies at facilities and centralized procurement through LIKE Products |
- | - | - |
|
Chronic
|
Rising average temperatures | Short- to long-term | Higher raw material and cooling costs, lower productivity due to worsened working environments | Medium | High | - Cost reduction through centralized procurement via LIKE Products - Shift to energy-saving equipment - Promotion of DX to improve operational efficiency |
- Cost reduction through consolidated purchasing - Productivity improvements via DX - Energy savings through equipment upgrades |
Medium | Medium | |
Time Horizon
| Long-term | 10 years or more |
| Medium-term | 3 to 10 years |
| Short-term | 1 to 3 years |
Impact Scale
(based on comparison between FY05/24 and FY05/30)
| High | ¥100 million or more |
| Medium | ¥100 million |
| Low | Minimal or none |
Specific Strategies and Actions
Based on the identified risks and opportunities from the scenario analysis, we have begun integrating sustainability into our corporate strategy. Key initiatives include reducing GHG emissions and improving energy efficiency across our operations.
| Category | Initiative | Impact |
|---|---|---|
|
Mitigation
|
[Group-wide] | |
| Introduction of renewable energy toward 100% renewables | Reduce CO₂ emissions from electricity use by shifting away from fossil fuels and using clean energy like solar and wind. | |
| Digitalization of approvals, contracts, and payslips | Reduce paper use through paperless operations, helping conserve forests and cut CO₂ from printing and mailing. | |
| Reduction in overtime hours | Cut electricity use by shortening office lighting and air conditioning hours. | |
| Promotion of Cool Biz and Warm Biz | Reduce electricity consumption by limiting heating and cooling, thereby lowering CO₂ emissions. | |
| [LIKE Staffing] | ||
| Online meetings with job seekers | Reduce transportation needs and lower gasoline/electricity use, cutting CO₂ emissions. | |
| [LIKE Kids] | ||
| Environmentally friendly buildings | Use highly insulated materials to reduce energy use for heating and cooling. | |
| Use of furniture and toys made from thinned wood | Support sustainable forestry and promote carbon neutrality through responsible wood use. | |
| Use of digital communication tools (e.g., child-rearing app) | Reduce paper usage and associated deforestation and CO₂ emissions. | |
| Use of recycled soap made from used cooking oil | Prevent water pollution, promote resource reuse, and provide environmental education opportunities for children. | |
| Environmental events and food education programs | Help children engage with environmental issues through hands-on learning. | |
| Collection boxes for household plastic waste for reuse in crafts and handmade toys | Reduce plastic waste and promote resource reuse to lower environmental impact. | |
| [LIKE Care] | ||
| Use of recycled soap made from used cooking oil in nursing home | Promote effective waste utilization while preventing water pollution. | |
|
Adaptation
|
[LIKE Care] | |
| Green curtain installations by residents | Plants block direct sunlight, helping lower indoor temperatures and reduce the load on air conditioning. | |
| Gardening and vegetable cultivation at facilities | Support local CO₂ absorption and biodiversity. | |
Risk Management
The sustainability division identifies and evaluates climate-related risks. As part of our risk management efforts, we gather and analyze information on social and market trends to detect emerging risks at an early stage.
We also convene a Risk Management Committee as necessary to consider measures for preventing and minimizing the impact of risks. For risks with potentially significant impacts, relevant committees work together to explore preventive and mitigating measures.
Metrics and Targets
We aim to source 100% of electricity used in our business operations from renewable energy by 2050. As a step toward this goal, we joined the “RE Action: Declaration for 100% Renewable Energy” initiative in September 2022 and have since been incorporating renewable energy into our operations.
Progress toward each metric and target is available on our Sustainability Data page (only in Japanese).
We are also revising and expanding the scope of our greenhouse gas emissions calculations as needed. Through renewable energy adoption and other initiatives, we continue working toward the shared global goal of achieving a carbon-neutral society.
Participation in Industry Groups and Initiatives
To advance our efforts against climate change, we participate in and support the following industry initiatives:
- Task Force on Climate-related Financial Disclosures (TCFD)
We declared our support for the TCFD recommendations in April 2025 and are committed to further integrating climate action into our business strategies and enhancing TCFD-aligned disclosures. - RE Action: Declaration for 100% Renewable Energy
As a participant, we are taking concrete steps toward using 100% renewable energy in our operations.
Our participation in such groups is based on alignment with our business goals and focus areas. We regularly assess the compatibility of our values with those of the groups, and will consider withdrawal if significant misalignment is identified.