In the IT Infrastructure Distribution Business, we aim to realize a circular economy by working with manufacturers and dealers to foster the widespread use of cloud services and subscriptions. We are also working across the group to reduce the amount of industrial waste we produce.

For the IT Infrastructure Distribution Business, we are aiming to achieve an annual average growth rate of 36% for our cloud platform transaction volume (fiscal 2024 to fiscal 2026), and we are promoting improving operational efficiency by reducing CO2 emissions and management person-hours in the supply chain. There have been reports that, on the average, Japanese companies and public organizations can reduce their energy consumption by roughly 70% or more by switching from on-premise to cloud operation. Through our cloud business, we are indirectly contributing to the realization of a circular economy. We are also working with SaaS vendors globally to support the DX of various users in Japan. In the Industrial Machinery Business, we are reusing the scraps (chips) generated during machining and developing products that lead to a reduction in power consumption. The amount of industrial waste we discharge has also decreased and its recycling rate has increased due to our efforts to recycle and reuse scrap materials. The group as a whole discharged 1,061 t of industrial waste in fiscal 2023 (a decrease of 15% compared to the previous fiscal year), and our recycling rate was 18%. We will continue to reduce resource usage amounts and strive to effectively use resourcesMain topics in FY2023 For the IT Infrastructure Distribution Business, we are aiming to achieve an annual average growth rate of 36% for our cloud platform transaction volume (fiscal 2024 to fiscal 2026), and we are promoting improving operational efficiency by reducing CO2 emissions and management person-hours in the supply chain. There have been reports that, on the average, Japanese companies and public organizations can reduce their energy consumption by roughly 70% or more by switching from on-premise to cloud operation. Through our cloud business, we are indirectly contributing to the realization of a circular economy. We are also working with SaaS vendors globally to support the DX of various users in Japan. In the Industrial Machinery Business, we are reusing the scraps (chips) generated during machining and developing products that lead to a reduction in power consumption. The amount of industrial waste we discharge has also decreased and its recycling rate has increased due to our efforts to recycle and reuse scrap materials. The group as a whole discharged 1,061 t of industrial waste in fiscal 2023 (a decrease of 15% compared to the previous fiscal year), and our recycling rate was 18%. We will continue to reduce resource usage amounts and strive to effectively use resources.

In fiscal 2023, we used the hazard maps created by local governments and Aqueduct, from the World Resources Institute, to identify the group’s water risks and water stress. We calculated the financial impact of water risk based on the total value of assets, the likelihood of occurrence, and damage rates for the physical risks produced by natural disasters, such as flooding (P60: see TCFD Physical Risks). For water stress, we used Aqueduct4.0 and confirmed that there were no sites with “high” or “extremely high” water stress levels, neither as baseline (current state) or in the years leading up to 2045. With regard to water resources, at our Nagaoka Factory we use underground water for melting snow. At our other sites, underground water is primarily used for daily use applications. In fiscal 2023, we cut water usage at our factories by 21% (versus the previous fiscal year).