Materiality-Related Initiatives and Targets

Risks, Opportunities and Promotion Strategies Related to Materiality

We are improving the effectiveness of our materiality initiatives by focusing on more specific actions through analyzing the impacts that the Group aims to reduce and identifying opportunities for each identified materiality theme.
We are also working to achieve sustainability management through the execution of Medium-Term Management Plan.

Materiality themes	Impacts to be reduced	Opportunities to be seized
1. Create a society in which diverse human resources are engaged and thrive	• Labor shortages that reduce productivity • Inability to input the necessary human resources causing business growth to be impeded • Lack of technology for new areas • Less creativity and imagination among employees • Less intra-Group and intra-organizational synergy	Boost value creation capacity • Enhance innovation abilities • Secure human resources • Boost productivity through greater employee engagement
2. Create a comfortable society through innovation and joint activities	• Opportunities lost through stagnation of R&D, etc. • Weak framework for considering new business causing lost business opportunities • Environmental burden triggering natural disasters, which in turn damage social infrastructure • Changes to environmental regulations	Construct a sustainable profit model • Shift to a better profit structure • Market growth • Global environmental protection and climate change adaptation
3. Create a safe society through high-quality services	• Productivity and quality reduced due to lack of manufacturing capacity • Deterioration in business sentiment causing customers and business partners to go bankrupt and existing customers to fall away • Lack of understanding of technological trends and customer needs, among other deficiencies, creating the risk of providing services of inappropriate quality and safety, and reducing competitiveness • Information leaks and cyberattacks • Intellectual property lawsuits	Boost market competitiveness • More attractive products and services • Optimization of manufacturing costs • Responses to country risk and technological advance
4. Enhance corporate governance and earn the trust of society	• Group governance deficiencies causing vulnerabilities (compliance, risk management, and IT governance) • Fund planning failures • Credibility affected by fraudulent transactions	Enhance corporate credibility • Better management quality • Eradication of misconduct

Materiality-Related Initiatives

The Group promotes initiatives across its major companies for each materiality identified.
Below are some examples of specific initiatives.

Theme	Status of Fiscal 2026 Initiatives
1. Create a society in which diverse human resources are engaged and thrive	• Continue to attract and develop advanced talent, while improving recruitment quality by diversifying hiring channels and refining the selection process. • Define AI business application capabilities across four proficiency levels and promote talent development to use generative AI for business transformation and value creation. • Develop a succession planning methodology to systematically identify, develop, and promote executive and managerial talent. • Continue initiatives to support women's advancement, including development and promotion opportunities, together with career development support. • Consider a new personnel system for introduction in April 2027, taking into account the merger of TIS and INTEC.
2. Create a comfortable society through innovation and joint activities	• Through PAYCIERGE, launched collaboration with regional banks to support digital transformation (DX) in B2B transactions for the SME market, with plans to begin initiatives with six banks in total during the medium-term management plan period. • Advanced the shift to AI-driven development by completing the integration of AI tools into AXION, the companywide development platform, and validating their effectiveness through pilot projects. • Promoted business co-creation and explored new business opportunities through collaboration with startups and corporate venture capital investments.
3. Create a safe society through high-quality services	• Analyzed survey results and implemented improvement measures to enhance client satisfaction. • Strengthened relationships with business partners through networking events, forums, and other initiatives to improve partner satisfaction. • Strengthened measures to prevent unprofitable projects by focusing on early-stage risk assessment, monitoring of critical projects, and prompt escalation when issues arise. • Established new AI User Guidelines, which define risks associated with AI use, and Generative AI Development and Quality Management Guidelines, which set out quality management requirements for AI-enabled development. • Delivered generative AI literacy training for all employees.
4. Enhance corporate governance and earn the trust of society	• Reviewed key issues related to transitioning to a company with an Audit and Supervisory Committee and determined the transition policy. • Conducted a Board effectiveness evaluation and confirmed the process for reporting progress on the next medium-term management plan to the Board as appropriate. • Announced a policy to strengthen the AI governance framework that supports appropriate AI use in response to increasingly sophisticated and large-scale cyber threats. • Switched six major data centers and BPO facilities to 100% renewable electricity. • Launched a solar corporate PPA in the Toyama area and strengthened engagement with business partners through briefing sessions aimed at reducing Scope 3 emissions.

Materiality-Related Indicators and Targets in the Medium-Term Management Plan

We have established sustainability indicators to monitor progress in promoting materiality, and aim to reach each target through the roadmap laid out in our medium-term management plan.

Theme	Perspectives on Progress Measurement	Indicators	Scope^1*	Fiscal 2026 Results	Fiscal 2027 Targets
1. Create a society in which diverse human resources are engaged and thrive	Demonstration of employees' capabilities	Job satisfaction	B	59%	Above 58%
		Number of consultants	B	589	Above 700
		Percentage of female employees in management positions	B	13.8%	Above 15%
2. Create a comfortable society through innovation and joint activities	Providing value to society	Strategic domain ratio^*2	A	52%	52%
		Operating income per person	A	¥3.5 million	Over ¥3.7 million
		Growth investment	A	¥17.1 billion per year	Three-year cumulative total ¥100 billion
3. Create a safe society through high-quality services	Quality demanded by society	Client and service satisfaction	C	60.6%	59%
3. Create a safe society through high-quality services	Quality demanded by society	Business partner satisfaction	D	77%	81%
4. Enhance corporate governance and earn the trust of society	A company chosen by society	GHG emissions (Scope 1 + 2) [Compared to fiscal 2020]	A	83% reduction	70% reduction
	A company chosen by society	Renewable energy utilization rate (Offices and data centers)	B	79%	100% introduction in Japan (fiscal 2031)

*1 TIS INTEC Group consolidated; B: TISI and consolidated companies (domestic); C: TISI, INTEC, AGREX, QUALICA, AJS, and TISI Solution Link; D: TISI and INTEC
*2 New standard ratio based on the review of strategic domain in Medium-Term Management Plan (2024-2026)