Climate Change Response

Gurunavi has implemented scenario analyses in order to identify risks and opportunities related to climate change.
The scenario analyses considered a “1.5°C/2°C scenario” and a “4°C scenario”. As a result, the main risks and opportunities for Gurunavi in relation to climate change have been identified as follows, and Gurunavi is considering and executing initiatives to address them.

Categories			Overview of Risks and Opportunities	Main Initiatives
Risks	Transition risks	Policies / laws and regulations	Increased costs accompanying the reinforcement of regulations related to CO2 emissions. - Introduction of carbon pricing. - Reinforcement of reporting obligations for greenhouse gases.	・The impacts related to these risks are understood to be limited due to the characteristics of Gurunavi business. ・Along with energy-saving operations at offices and data centers, Gurunavi will aim to control CO2 emissions by controlling movement such as commuting through the “Hybrid workstyle”, and by continuing to promote paperless operations.
		Market	Reduced demand for Gurunavi services accompanying heightened environmental awareness among consumers. - Changes in restaurant selection criteria due to changes in values. - Changes in opinions regarding domestic holidays and business trips, and travel to Japan from overseas.	・Continuous reviews of information and content posted on “Rakuten Gurunavi” in line with changes in consumer needs in Japan and overseas. ・Recognition of the need for businesses/services that will contribute to the optimization of the overall food service industry in Japan (improving efficiency from production to consumption by forecasting demand, etc.), and commencing work to build such businesses/services.
		Reputation	Diminished reputation among stakeholders due to late responses to climate change.	・Continued initiatives to enhance disclosure of climate change response information.
	Physical risks	Acute	Impacts on Gurunavi business operations due to increased severity of natural disasters such as typhoons and floods, etc. - Physical damage to offices, data centers, etc. - Disruption of telecommunications.	・Gurunavi has completed construction of remote working mechanisms and environments that are not tied to work locations, through the introduction of the “Hybrid workstyle”. ・Alleviation of impacts by using multiple data center sites. ・Promotion of considerations for appropriate BCP reviews according to business content and environmental changes.
		Acute	Reduced demand for Gurunavi services due to increased severity of natural disasters such as typhoons and floods, etc. - Suspension of restaurant business and increased restoration costs.	・Recognition of the need to build an optimal business portfolio (acquisition of revenue sources other than support for restaurants).
		Chronic	Reduced demand for Gurunavi services due to the progress of global warming. - Sharp rises in procurement costs incurred by restaurants due to diminished raw materials production volumes and quality, etc. - Consumers’ hesitance to go out, and consumption hesitance due to sharp rises in prices.	・Commencement of work to build business that will contribute to the optimization of agricultural production and distribution through the promotion of DX (Green Innovation Fund projects, etc.). ・Services that will contribute to improving the purchasing efficiency of restaurants are currently under consideration. ・Commencement of work to build services related to promoting the enjoyment of home-cooked meals and ready-made meals (EC services such as Gurusuguri, Premium Meal Kit, etc.).
Opportunities	Products / Service		Development of new products and services in response to changing values and initiatives accompanying heightened environmental awareness among persons engaged in the food services market (producers, wholesalers, restaurants, consumers, etc.).	・Continuous reviews of information and content posted on “Rakuten Gurunavi” in line with changes in consumer needs in Japan and overseas. ・Recognition of the need for businesses/services that will contribute to the optimization of the overall food service industry in Japan (improving efficiency from production to consumption by forecasting demand, etc.), and commencing work to build such businesses/services. ・Expanded provision of services that contribute to improved restaurant business efficiency and labor-saving.
	Market		Improving Gurunavi’s reputation among stakeholders through initiatives for the resolution of environmental issues.	・Continued initiatives to enhance disclosure of climate change response information.