Money Forward, Inc.

Initiatives Concerning Human Rights Risks

The Company has established the “Money Forward Group Human Rights Policy” as a policy to promote initiatives of respecting human rights by resolution of the Board of Directors on April 14, 2023. In order to understand the notable human rights risks and the current state of measures of the Group, as part of human rights due diligence, impact evaluations of human rights have been conducted for employees.

Please see the Money Forward Group Human Rights Policy here.

Selection of Human Rights Issues

In order to clarify tangible and potential human rights risks that may occur within the Group, the following human rights risks expected of the Group have been selected.

Human rights issues, discrimination, foreign worker rights, power harassment, sexual harassment, maternity/paternity harassment, care harassment, forced labor, child labor, excessive/long working hours, short/unpaid wages, living wages, freedom of association, safety and health, freedom of expression, privacy rights, and information management concerning gender (including sexual minorities)

Initiatives to identify and evaluate, and measures to prevent and lessen adverse impacts to notable human rights

In order to identify adverse impacts to notable human rights of employees and temporary employees of the Group, referring to guidelines concerning human rights such as the “UN Guiding Principles Reporting Framework,” evaluations of the likelihood of adverse impacts to human rights, the severity of adverse impacts, and scope of adverse impacts and difficulty of correction were conducted, focused mainly on the supervising companies and departments in charge.
The adverse impacts to notable human rights that were identified and evaluated, and the main initiatives to prevent and lessen their occurrences, are as follows.

Content	Measures to prevent and lessen
Harassment	・If the reason for resignation is suspected to be harassment, such as interpersonal relationships, verification with relevant members of the Human Resources Department and managers ・The person in charge of surveys shall review the survey scores and qualitative comments, and will verify the status, etc. with Head of Human Resources Department and managers of the relevant departments as necessary ・Establish a system and formulate and operate rules to realize timely and appropriate responses, such as dual-track responses and regular verifications of the status of responses so that responses to harassment reports will not be delayed ・Harassment to be prevented with management in each company and department enhancing their understanding through the Compliance and Risk Management Committee sharing consultations concerning harassment
Discrimination	・Introduce a format to verify discrepancies in the promotion rate and wages between males and females at the time of evaluation, and verify the reason if a clear discrepancy is discovered ・Verify the appropriateness of offers at the time of hiring
Excessive/long working hours Safety and health	・Verify the reasons with managers for those working 45 or more hours of overtime ・Guidance on meeting with industrial physicians for employees who show a high degree of stress in the stress check and those working long hours (meetings are voluntary) ・Monthly condition checks through surveys. Establish a system where consultations can be made in a timely manner through sending consultation forms to the Human Resources Department at the same time ・Individual reminders to those who have not had their health checkups performed

Other Initiatives

Training

The Group provides compliance training so that all officers and employees (regardless of whether they are new graduate hires, mid-career hires, part-time or casual employees, interns, temporary employees, or hired under other arrangements) can acquire knowledge on compliance and be more aware of compliance. In addition to touching on human rights risks during training on overall compliance and Code of Conduct, training on harassment prevention is conducted through e-learning programs (incorporating online learning material and comprehension tests).

Please see the dates and attendance rates here.

Hotlines

In order to appropriately respond to compliance violations, including human rights, the Group has established points of contact which enable the Group’s officers and employees to make anonymous reports by means such as email and chat tools, on a violation of laws or ordinances, compliance violations (including a violation of the Group Compliance Rules or other internal rules or a violation of the action guidelines provided in the Money Forward Group Compliance Manual), an act of harassment, or an act that could lead to any of such violations or harassment in the Company and Group companies.

Please see here for details.

Creating a Safe Work Environment

To realize our vision for the society and to steadily increase shareholder value, the Company has set “Talent Forward (Moving Employee Potential Forward)” as one theme of materiality. And so, the Company has organized the five key tenets of our HR philosophy into a strategy that we call the “Talent Forward Strategy.” One of the measures is to “foster a safe work environment and corporate culture,” to strive to create an environment in which employees with different backgrounds and values can feel comfortable working together and respect each other’s differences.

Please see here for specific initiatives.

For disclosure based on TCFD

In order to understand the risks, opportunities, and impacts of future climate change on our business activities, we predicted and analyzed changes in the external environment in accordance with the framework proposed by the Task Force on Climate-related Financial Disclosures (TCFD). As a result, we perceive that there are significant opportunities in our business domains, represented by the potential rise in demand for cloud services, and on the other hand the risks are relatively small. On the opportunity front, we will explore possibilities of expanding our business scope, whereas on the risk front, we will minimize exposure while assessing cost-effectiveness.
*We support TCFD, and Join TCFD Consortium Japan.

Governance

The Company has set up the Compliance and Risk Management Committee and Sustainability Committee under the Board of Directors. Both are composed of members appointed by the board, and chaired by the Representative Director,President and CEO.The Compliance and Risk Management Committee (hereinafter referred to as the “Risk Committee”) oversees risk management, instructs countermeasures to departments responsible for respective risks, and reports the situation to the Board of Directors. Meanwhile, the Sustainability Committee oversees climate change risks, instructs countermeasures to departments responsible for respective risks, and together with the Risk Committee reports the situation to the Board of Directors. The Internal Audit Office checks and supervises the overall risk management structure and status from an independent standpoint.

Strategies

We have identified the following risks and opportunities related to climate change.

		Scenario	Risk or Opportunity for the Company	Impact Level	Countermeasures
Transitional Risks	Policy and Regulatory Risk	Introduction of carbon tax	Increased tax burden due to carbon tax	Small	Reduce greenhouse gas (GHG) emissions
	Market Risk	Rise in renewable energy prices	Increased cost burden for procuring renewable energy	Small	Reduce costs by diversifying and optimizing power suppliers
	Reputational Risk	Accelerated ESG investments	Difficulty raising funds Reputational Accelerated ESG from financial institutions investments and investors if climate change measures are evaluated as inadequate	Small	Enhance information disclosure and engage in appropriate dialogue with financial institutions and investors
Physical Risks	Acute Risk	Intensification of natural disasters	Outage of data center Damages to the office and Medium employees	Medium	Strengthen business continuity plans (BCPs) (including dispersing risks of facility damages and promoting offsite measures)
Opportunities	Product/ Service	Accelerated DX	Increased demand for cloud services	Large	ー

Risk Management

In order to understand and evaluate the impact of climate change on the Group’s business, we analyze scenarios and identify related risks and opportunities. Risks and opportunities that are identified are monitored by the Sustainability Committee in collaboration with the Risk Committee. There is also a process flow in which reports and recommendations are made to the Board of Directors depending on the gravity of the case.

Indicators and Goals

We calculate GHG emissions as an indicator for climate change. Scope 1 and 2 emissions are currently as follows.

Scope 1: （t-CO₂）
Scope 2(location basis): 370（t-CO₂）

We have also been using 100% renewable electricity at our headquarters since 2021, and at our Tokai Branch and Nagoya development base since 2022. We will continue to consider ways to reduce emissions at each of our locations.