AVANT Group Environmental Policy

We value management philosophy based on Japanese culture to regard our company as a public organization as a cultural asset and aspire to develop as an organization that exists for the development of society, which we refer to as the "Creation of a 100-year company" and have been the Group's corporate philosophy since our founding. The creation of a company in 100 can be achieved through sustainable development that balances economic activities, environmental conservation and social justice. To this end, the Avant Group has established the following environmental policies.

Compliance with environmental laws and regulations

We will comply with environmental laws and regulations as well as agreements with stakeholders and take appropriate actions.

Familiarizes with the environmental policies

We will conduct education and awareness-raising activities to foster each and every employee's awareness of the environment and to enable them to carry out their own environmental conservation activities.

Environmental Conservation

We will work closely with government agencies, local communities, and related organizations to actively support individual Group employees' efforts to address climate change, promote resource circulation, and conserve biodiversity.

Communication with Stakeholders

Aiming for the realization of a sustainable society, we will strive for mutual understanding with stakeholders and proactive information disclosure.

This policy was approved by the Board of Directors of Avant Group Corporation on Jury 22, 2020.

July 22, 2020
Avant Group Corporation
President and Group CEO
Tetsuji Morikawa

Endorsement of the Task Force on Climate-related Financial Disclosures (TCFD)

The AVANT Group's founding management philosophy of "Creating a 100-year company" reflects our sustainability philosophy of achieving continuous business growth through a self-sustaining organisation with the ability to adapt to rapidly changing market conditions. It is not enough for a company to pursue profit, but it is also important for the Avant Group to always consider how to create sustainable corporate value in balance with society and the environment. The Avant Group signed the United Nations Global Compact on 25 August 2020 and endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) on 22 December 2021. This is an opportunity for us to consider and implement what we can do as a Group, while conducting a risk assessment to achieve sustainability.


Under the leadership of President and Group CEO Morikawa, the IR Office of the AVANT Group and the CRM Committee will be responsible for gathering information on climate change, its impact and measures to address it. The opportunities and risks associated with climate change will be discussed in the CRM Committee‘s regular reports to the Board of Directors and in the Group Management Committee, and future policies will be formulated and progress will be over seen.


[Response to transition risk]

The AVANT Group's electricity and gas purchase costs for the year ended 30 June 2022 were approximately 20 million yen, which is equivalent to 0.13% of sales. If we are forced to purchase alternative energy sources as a result of stricter regulations on greenhouse gas emissions, this may have a minor impact on our business performance due to higher unit prices for electricity and gas. We aim to reduce our greenhouse gas emissions by 50% from the level of the year ended 30 June 2017 by using carbon offsets, etc. In the year ended 30 June 2022, we offset 0.03% of our net sales, and we plan to continue to build up our offset quota below this level. Offset credits are finite, and if a large number of companies adopt the same method, we may not be able to secure offset credits at the expected unit price and volume.

[Physical Risk Response]

According to the Ministry of the Environment's "Assessment of the Impacts of Climate Change on the Severity of Disasters (Interim Report)" based on the IPCC's Fifth Report, the main factors are that rising sea surface temperatures will make it easier for the ocean to supply water vapor to typhoons, and that rising temperatures will increase the amount of water vapor that the atmosphere can store. Typhoons are more likely to approach Japan with greater strength than at present, bringing more rainfall to the Kanto and Tohoku regions. Scenarios have been developed for a 2% or 4% increase in rainfall and tide levels due to global warming, but typhoons such as 2019's Typhoon No. 15, which exceeded these scenarios and the assumed once-in-50-year risk, passed over the Kanto region and damaged the power transmission system. However, the reality is that typhoons of a magnitude that exceeds these scenarios and the once-in-50-years risk, such as typhoon No. 15 in 2019, have already passed through the Kanto region and damaged the power transmission system. Rather than taking measures in line with such a scenario, the AVANT Group has decided to adopt a response that assumes the occurrence of the largest possible disaster.

We believe that the greatest risks to the AVANT group are (1) the difficulty in maintaining a safe living and working environment for employees due to a catastrophic disaster, and (2) the loss of continuity in the provision of services to customers. In particular, the continuity of services provided by the AVANT Group is a very important issue because the services provided by the AVANT Group contribute extensively to the preparation of financial information for customers and the generation and disclosure of information that contributes to management decisions, information that is critical to the survival of a company. The CRM Committee will consider the appropriate BCP for dealing with these risks and report to the Board of Directors on its progress.

[Responding to opportunities]

On the other hand, in order for our customers to respond to climate change, it is important for them to be able to visualise the economic activities that lead to the generation of greenhouse gases within their organisation, to take action and to provide an environment for better communication with their stakeholders. It is also an opportunity for the AVANT Group to grow further. These opportunities will be discussed and promoted by the Group Management Board, the Group CEO and each Group representative.

Risk Management

[Risk management system]

AVANT Group's IR Office and the CRM Committee will collect information and discuss the response. Important information is reported to the Board of Directors through the CRM Committee and discussed as appropriate.

[Formulation of BCP assuming the greatest risk]

As risks associated with the intensification of natural disasters such as short-term torrential rains and super typhoons due to the risk of climate change, we have formulated a BCP for three possible maximum disasters: the Tokyo Arakawa River Flood, the Tokyo Bay Storm Surge, and the Osaka Bay Storm Surge. The CRM Committee formulates a BCP to ensure the safety of employees before and after the disaster, to support their daily lives and work during the recovery period, and to ensure the continuity of services for customers, and reports this to the Board of Directors.

Quantitative measurements and targets

As for greenhouse gas emissions by the Core Group Companies, direct emissions from the use of fuel (Scope 1) were 0, and indirect emissions from the use of electricity, steam, and heat (Scope 2) were 516.138t-CO₂ in the fiscal year ended June 2022. On the other hand, indirect emissions (Scope 3) from procurement of raw materials, travel of employees, outsourcing of waste treatment, etc. amounted to 7,446.076t-CO₂ in the fiscal year ended June 2022. In the medium to long term, we aim to reduce excess power consumption by encouraging appropriate working hours and telecommuting, and to reduce total greenhouse gas emissions (Scope 1-3) by 50% compared to the fiscal year ending June 2030 (approximately 5,000t-CO₂) by the fiscal year ending June 2017 through carbon offsets, under the circum - stances in which an increase in emissions associated with business expansion is unavoidable. Since July 1, 2021, we have purchased a green power certification that corresponds to Scope 2 emissions and achieved carbon offset. We are also aiming to reduce emissions with Scope 3 by combining various means.

Greenhouse Gas Emissions(t-CO_{2})






Scope 1






Scope 2






Scope 3












Carbon Offset Initiative by AVANT

Starting from July 1, 2021, Avant Corporation purchases "Green Power Certificates" issued by Japan Natural Energy Company Limited (Head Office: Shinagawa-ku, Tokyo, President: Keiki Kato) for all electricity used in the company-wide offices of the five Avant Group companies and switch to green power.
The Green Power Certification System is a system for trading the environmental added value of electricity generated from renewable energy sources (green power) in the form of "Green Power Certificates," which are issued by certificate issuers and certified by the Japan Quality Assurance Organization. By purchasing a Green Power Certificate, a company can assume that the amount of electricity (kWh) listed on the certificate was generated by renewable energy sources, even if the company does not have its own power generation facilities. The Green Power Certificate is attracting attention as a mechanism to curb carbon dioxide emissions, which cause global warming, because it can be regarded as a contribution to the spread of renewable energy equivalent to the amount of electricity listed on the certificate.

Japan Natural Energy Company Limited's logo
certifying the use of green electricity
Japan Natural Energy Company Limited's logo
certifying the use of green electricity

<Overview of the Green Power Certification System>

With the conclusion of this contract, the Avant Group expects to reduce carbon dioxide emissions by approximately 660 ton-CO_{2} per year (equivalent to the annual emissions of approximately 242 households*) by switching all of the annual electricity used by the offices of the five group companies (1.5 million kWh, actual results for the fiscal year ended June 30, 2020) to green electricity. The Avant Group is committed to the efficient use of electricity and the spread of power generation using natural energy to prevent global warming.


*Calculated based on FY2019 household sector CO_{2} emissions.