Our Approach to Environmental Sustainability
At SmartHR Group, we believe that a healthy planet, where all life thrives, is essential for sustainable business operations. We are committed to complying with international environmental declarations, agreements, and treaties, as well as local laws and regulations in the regions where we operate and are intent on working to protect and preserve the environment.
Our services at SmartHR go hand in hand with the goals of environmental sustainability. Through the use of our platform, companies can significantly cut down on the amount of paper generated during employee onboarding, social insurance processes, and more. Additionally, using less paper reduces the need for transportation and logistics associated with handling physical documents. Through these efforts and our continued use of technology and innovation, we are committed to minimizing our own environmental impact and providing services that contribute to overall sustainability.
Addressing Climate Change
Climate change—with its risks of rising temperatures, shifting weather patterns, and extreme weather events—has the potential to affect countless communities worldwide. Naturally, this also poses a threat to our business operations. Therefore, we recognize it as one of the most urgent challenges of our time. As a responsible corporate entity, SmartHR Group is committed to the goal of creating a low-carbon society for preserving a healthy environment where all life can thrive. To that end, we have been implementing mitigation and adaptation measures such as 1) assessing, disclosing, and reducing greenhouse gas emissions; 2) improving energy efficiency; 3) using clean energy; and 4) developing environmentally friendly services.
Reducing Greenhouse Gas Emissions
At SmartHR Group, we are committed to reducing our Scope 1 and Scope 2 greenhouse gas emissions.
Greenhouse Gas Reduction Targets
Using 2021 as a baseline, we aim to reduce greenhouse gas emissions related to electricity usage. Our efforts include actively exploring and implementing daily energy-saving measures and the use of renewable energy to mitigate climate change.
Greenhouse Gas Emissions
SmartHR Group’s recent greenhouse gas emissions (t-CO2) are as follows:
| Category | FY 2022 | FY 2023 |
|---|---|---|
| Scope1* | 0 | 0 |
| Scope2** | 194.1 | 214.4 |
| Total | 194.1 | 214.4 |
- * Direct emissions from fuel usage within the company.
- ** Indirect emissions from electricity and heat purchased by the company.
Efforts to Reduce Resource and Energy Consumption
1.Reducing Energy Consumption Together with Customers via SmartHR
Achieving a low-carbon society requires collaboration. By offering SmartHR, a service that reduces paper use and decreases the reliance of businesses on transportation and logistics infrastructure, we help our customers reduce energy consumption.
- Using SmartHR for tasks like employee onboarding, social insurance processes, year-end tax adjustments, and payslip distribution drastically reduces paper use.
- The reduction of paper eliminates the need for physical transportation of documents, further cutting down logistics and travel-related emissions.
Examples of Paper Reduction Through SmartHR
-
Altius Link, Inc.:
Switched to paperless for year-end tax adjustments for 19,000 employees, increasing efficiency across offices nationwide. (Japanese Only)
Read the case study here -
Nankai Electric Railway Co., Ltd.:
Switched to paperless processes for 3,000 employees as part of a larger HR reform. (Japanese Only)
Read the case study here
For more customer testimonials, visit our "Case Studies (Japanese Only)" Opens external site in a new window or tab.page.
2.Internal Efforts to Reduce Energy Consumption
SmartHR reduces greenhouse gas emissions internally by minimizing paper and electricity use:
- We’ve distributed laptops to all employees, allowing us to significantly reduce the amount of printed documents via the use of office computers, monitors, and projectors during meetings, and by transitioning to online work processes.
- By adjusting the temperature and operating hours of air conditioning systems, we reduce energy consumption related to climate control.
- Our remote work system allows all employees to work from home, which not only boosts productivity but also reduces commuting and business travel-related emissions.
- For business travel, we encourage the use of public transportation.
We are also committed to reducing waste and promoting recycling in the office, further minimizing our environmental impact:
- Office waste is strictly sorted, with efforts to reduce its amount. To help employees easily identify waste categories, we have applied clear labels designed by our communication design team.
- For visitors, we offer original bottled water in 100% recyclable, eco-friendly bottles made from recycled domestic plastic.
Climate Change: Risks and Opportunities
While SmartHR Group recognizes the potential risks that climate change poses to our business, we also view it as an opportunity to play a role in mitigating its impact. As such, we have identified the risks and potential opportunities associated with climate change facing our business.
Analysis Process
In identifying risks and opportunities, we analyzed the potential impacts of global warming, including potential future legislation. Through the deliberations of our Risk Management Committee, we identify climate-related risks and opportunities relevant to SmartHR's business. Feedback from this process is then provided to our directors and factored into our strategic decision-making to mitigate these risks.
Climate Change: Risks and Opportunities
| Classification | Business Impact | |
|---|---|---|
| Low-Carbon Society Transition Risks | Regulatory Risks |
|
| Technology Risks |
| |
| Market Risks | Decrease in lead generation from fewer large-scale events or cancellations | |
| Reputation Risks | Negative evaluations due to stakeholders' growing concern over climate change | |
| Physical Risks Due to the Impact of Climate Change | Immediate Risks |
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| Long-Term Risks |
| |
| Opportunities | Resource Efficiency | Reducing costs through improved energy and water efficiency and better waste management |
| Products and Services |
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| Market Opportunities |
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