SUSTAINABILITY
Sustainability Policy
User Local, Inc. promotes sustainable management by actively working to solve social issues through our business.
User Local, Inc. sets forth the philosophy “ Driving global evolution by combining Big Data and AI” and the goals to make AI more accessible and usable by everyone, and to create a society in which everyone can benefit from automation and efficiency.
User Local, Inc. believes it is important to always think from the user's point of view and provide services that are easy to use and versatile for everyone, not just engineers, and that can utilize data in real time. We will contribute to the creation of new value by utilizing data and AI technology through our corporate activities.
In order to continue to be a company that is trusted by our stakeholders (customers, shareholders, employees, business partners, etc.) and society, we have been working to strengthen and enhance our governance since we were unlisted. We will proactively address recent global environmental and social issues and work together to realize a sustainable society.
December 8, 2021
User Local, Inc.
President Masao Ito
Identification of Materiality
User Local,inc. believes that the social issues that we should focus on are those that are important to both our stakeholders and our business growth. For each materiality, we recognize the social issues that are relevant to our business activities, examine the main risks and opportunities for us due to the impact of social issues, and disclose our approach to each issue.
In identifying materiality, we look to the framework of major guidelines such as SDG Compass and SASB, and actively discussed them with internal and external stakeholders, followed by discussions at the Board of Directors.
Elimination of Disparties
Realization of a society where everyone can benefit from AI and Big Data
With innovations such as the development of cloud environments and improvements in computing power, the opportunities to utilize AI in our society and business world are expanding at an accelerating pace. In the future, AI will be used in all aspects of society and its benefits will be recognized. However, the gap between major overseas and domestic firms that effectively utilize them and small and medium-sized firms and individuals that do not is on the verge of widening.
In order to eliminate such disparities, under our management philosophy of "Driving Global Evolution by combining Big Data and AI," we aim for a future in which everyone can utilize data and be better affected by AI in their work and lives, and all people can equally enjoy the benefits of AI technology.
Through our extensive and sustained efforts, we will make AI-based big data analysis a familiar technology that permeates our society and business world, contributing to the establishment of a sustainable and prosperous society.
Initiative
User Local, Inc. offers a variety of free tools to make AI technology available to everyone. Some are provided via Web API, allowing anyone to easily incorporate them into their own systems.
1 Provision of AI algorithms free of charge
User Local, Inc. provides AI algorithms of a level previously sold for a fee at no charge, Position Inference AI, Handwritten OCR tools , and Various image recognition AI.
2 User Local Handwritten Character Recognition AI (Handwritten OCR tools)
AI recognizes Japanese handwritten characters and converts them into text data. This will improve productivity by streamlining the reading and conversion of huge volumes of handwritten documents into data, not only in the corporate sector, but also in the government, finance, and education sectors. Also, Digitization also promotes a paperless environment.
3 Character Analysis AI
Deep learning can estimate a person's posture (whole-body skeleton), gaze, facial orientation, facial expression, gender, and age from a photograph of the person, as well as the person's emotions from voice or text. Also, All-in-one AI capable of analyzing people's actions, expressions, attention, voice, and other information in a cross-sectional, multifaceted manner enables you to integrate AI into your own services with less hassle. In all areas, data can be analyzed and used for services. Particularly in the field of education, the use of posture estimation, facial expression estimation, gaze and facial orientation, and text emotion recognition can provide high quality education.
4 AI Chat bots free of charge
User Local, Inc. provides chatbots that can be installed on in-house portal sites and business chat rooms free of charge to companies that are implementing telework in the Corona Disaster, and support corporate activities that are responding to and taking measures against new coronavirus infections.
5 Free release of SNS accounts data
Data such as the number of followers of popular SNS accounts is available for reference in SNS management.
Human Resource Development
R&D Human Resource Development
Japan has lagged far behind the United States, China, and other advanced information and telecommunications countries in the diffusion and development of technology in the Japanese economy and society, digitization in the public and private sectors, and AI analysis using big data.We believe that it is extremely important to broaden the base of students who are expected to play an active role in the field of AI analysis using big data in Japan and to discover promising students, and we will continue to make various efforts in the future.
Initiative
1 Lecture activities at universities
In order to discover and nurture advanced AI human resources, we provide highly realistic lectures and talks based on the president's own experiences , such as the background to starting a business and awareness of current issues. We also respond to the questions and needs of promising future engineers and entrepreneurs through a variety of practical training programs, including lectures on the latest programming, text mining, AI, and other topics.
2 AI education for students
We provide tools to universities and other research institutions at a low cost for use in thesis writing and research activities.
Solving Social issues with Technology
User Local, Inc. aims for a future in which everyone can utilize data and technology to be better affected in their work and lives under our management philosophy of "Driving Global Evolution by combining Big Data and AI". We will contribute to people's more convenient and affluent lives by continuously providing highly versatile services that can be used in all areas, including businesses, government, and educational institutions.
Initiative
1 Provision of high-quality, easy-to introduce services through SaaS business
2 Promotion of DX in school education by providing Cheating Prevention
To promote online examinations, we develop and provide artificial intelligence to deter cheating.
3 Academic plan
We provide tools to universities and other research institutions at a low cost for use in thesis writing and research activities.
4 Provision of AI algorithms free of charge
Safety and Reliability of Information Management
Adequate information management is essential for the development of a prosperous and convenient information technology society.
User Local, Inc. manages big data and ensures information security so that we can provide safe and secure services. Also, we will also contribute to the establishment of a safe and convenient information technology society by providing versatile services to support information management.
Initiative
1 Information Security Initiatives
- Information security awareness through employee training
- Certification for Information Security (ISO270001)
2 Providing free tools for information management measures
- Personal Information Test Data Generator
A large amount of dummy data can be immediately utilized for quality and security checks in system development. Dummy data can be created as a precaution against unauthorized access because it can be generated with data quality very close to that of the real data.
- Personal Information Masking Tools
By masking data such as addresses, names, and phone numbers from large volumes of data, the risk of leakage is greatly reduced, contributing to data utilization.
Environment
Basic Policy
UserLocal Inc. recognizes that environmental issues are long-term problems that will extend beyond the next generation, and we conduct our business activities with the understanding that it is our natural role as a company to maintain the environment in a better state. We will continue to implement initiatives to conserve the global environment through our business activities and strive to realize a sustainable society.
Environmental Policy
UserLocal Inc. recognizes that environmental issues are long-term problems that will extend beyond the next generation, and we will continue to implement initiatives to conserve the global environment through our business activities and strive to realize a sustainable society.
・Prevention of Global Warming
We will continue to implement initiatives to improve our environmental impact due to greenhouse gas emissions and other factors.
・Effective Use of Resources
We recognizes that environmental resources are limited, and we will use it most effectively.
・Coexistence with Nature
We will consider the impact of our operations on ecosystems and strive for sustainable procurement, waste management, and the conservation of water resources and biodiversity.
・Promotion of Environmental Management
We will educate and enlighten our each and every employees so that they understand the importance of environmental issues and are able to contribute to environmental preservation.
・Compliance with laws and ordinances
We will comply with laws and regulations related to environmental conservation.
Enacted on December 8, 2021
Disclosure under the TCFD or equivalent framework
To solve the global issue of climate change, we aim to contribute to sustainable and stable social activities and economic development by identifying the impact of climate change on our business activities and properly managing and operating various possible risks. We disclose those specific initiatives and other information as follows, based on the framework of the Task Force on Climate-related Financial Disclosures (TCFD).
1. Governance
The Board of Directors deliberates and decides on policies and important matters related to the realization of sustainability. Risks and opportunities related to climate change are identified and issues are addressed by the Risk Management Committee, which is composed of the Representative Director and other officers and department heads. The results of the committee's deliberations are reported annually to the Board of Directors for oversight.
2. Strategy
With regard to the risks and opportunities related to climate change that we have assessed as being of particular importance, we have estimated the impact on our business activities under the 1.5°C and 4°C scenarios from both quantitative and qualitative perspectives over the medium to long term, and formulated countermeasures for each of these scenarios.
| Scenarios | Identification of Risks and Opportunities | Potential financial impact | Occurrence Time | Countermeasure | |
|---|---|---|---|---|---|
| 1.5℃ Scenarios | Transition Risks |
・Increase in GHG emission prices (introduction of carbon tax) ・Significant increase in energy prices |
Increased costs due to higher electricity prices and the introduction of a carbon tax | Short- to medium-term (estimated around 2030) |
・Reduction of GHG emissions through energy conservation in facilities ・Use of environmentally friendly data centers with 100% green power |
| 4℃ Scenarios | Physical Risks |
・Torrential rains and flooding due to climate change occur with a certain frequency ・Increased social unrest due to climate change |
Temporary suspension of service operations due to flooding at the site | Medium- to long-term (estimated around 2050) |
・Redundancy of systems (servers) used ・Strengthen BCP measures |
| 1.5℃/ 4℃ Scenarios | Opportunities |
・Acceleration of corporate decarbonization efforts, expansion of sustainability-related businesses in various industries, and increased opportunities for the application of digital technologies ・Acceleration of digitization and AI services due to changes in consumer behavior |
Increase in sales due to accelerated shift to DX and higher demand for our services | Short- to medium-term (estimated around 2030) | ・Strengthen marketing initiatives and provide services sought by customers |
3. Risk Management
The Risk Management Committee identifies business risks and opportunities related to climate change, assesses their significance, and considers countermeasures. These matters are reported annually to the Board of Directors, which determines business strategies and plans, taking these risks and countermeasures into consideration.
4. Indicators and Targets
We have selected GHG emissions as an indicator for evaluating climate change. The calculation of actual GHG emissions under Scope 3 is currently under consideration.
| Year ended June 30, 2018 | Year ended June 30, 2019 | Year ended June 30, 2020 | Year ended June 2021 Issue | Year ended June 2022 Issue | Year ended June 2023 Issue | Year ended June 2024 Issue | |
|---|---|---|---|---|---|---|---|
| Electricity consumption (kwh) | 58,274 | 69,241 | 68,653 | 90,190 | 68,421 | 71,769 | 79,079 |
| CO2 emission factor | 0.462 | 0.455 | 0.441 | 0.434 | 0.452 | 0.376 | 0.398 |
| SCOPE1(kg-CO2) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SCOPE2(kg-CO2) | 26,923 | 31,505 | 30,276 | 39,142 | 30,926 | 26,985 | 31,473 |
| Number of employees (including average number of temporary employees) | 62 | 66 | 78 | 94 | 97 | 112 | 123 |
| CO2 emissions per capita (Kg) | 434 | 477 | 388 | 416 | 319 | 241 | 256 |
Use of environmentally friendly Data Centers with 100% clean energy
Our business require the collection and management of large volumes of data, which makes facilities such as servers and network equipment indispensable. In order to reduce the amount of electricity consumed by these facilities, we use data centers with low environmental impact and proactively introduce server equipment with high energy-saving performance, thereby contributing to the reduction of greenhouse gases.
Activities in the office
We encourage Cool Biz/Warm Biz, setting appropriate air conditioning temperatures and frequently turning on/off indoor lighting equipment to raise employees' environmental awareness and reduce power consumption.
We are also promoting the reduction of printing paper consumption by digitizing internal documents and invoices. These efforts not only reduce environmental impact, but also reduce printing and distribution costs and work time.
Social
Basic Policy
UserLocal, Inc. believes that it is important to continue to meet the ethical and public expectations of society, with a strong sense of being a member of the international community, based on our hope of creating a world where everyone can benefit from the automation and efficiency of AI technology. We are committed to building a relationship of trust with society through various social activities conducted through our business activities, with the aim of realizing a prosperous society.
Enacted on December 8, 2021
Initiatives for Respecting Human Rights
Human Rights Policy
UserLocal, Inc. believes that it is important to continue to meet the ethical and public expectations of society, with a strong sense of being a member of the international community, based on our hope of creating a world where everyone can benefit from the automation and efficiency of AI technology.
In accordance with “International Bill of Human Rights”, “Declaration on Fundamental Principles and Rights at Work”, and “UN Guiding Principles on Business and Human Rights” , we support and respect international norms on human rights. We believe that respecting people's human rights and fulfilling our social responsibility is one of the contributions we can make.
In addition, we shall endeavor not to discriminate or violate human rights in our business activities on the basis of race, nationality, gender, age, religion or political ideology, disability, marital status, child-bearing status, sexual orientation, gender identity, or other such grounds. We will also strive to continue to meet the expectations of our stakeholders regarding respect for human rights, which change with the times.
Enacted on December 8, 2021
Employee Education activities
We regularly conduct training for all employees, by position, on specific cases of harassment, prevention measures, and solutions to actual cases of harassment. The training is conducted in a discussion format to encourage each employee to think and deepen their understanding. We will continue to promote ongoing educational activities on various human rights violations.
Establishment of a human rights consultation and reporting desk
We have established an internal reporting system to accept consultations and reports on human rights. We accept consultations and opinions on human rights violations and harassment, and strive for early detection and prevention of such violations.
Human Capital Development and Training
Training Policy
To realize our mission of of “Driving global evolution by combining Big Data and AI”, we believe that employee skill development is one of the most important aspects of management. In order to develop next-generation leaders who will drive our business based on our vision and our five values, which are our code of conduct https://www.userlocal.jp/company/value/, each and every employee will strive to enhance his or her own motivation for personal growth and self-improvement. We conduct various training programs such as company-wide training, development programs for each department, and management development programs. In addition, we aim to unlearn and reskill employees to meet social needs amid changes in social structure due to an aging society and other factors, as well as changes in the abilities required of people due to the introduction of AI and robots.
Enacted on April 12, 2023
Internal Environment Improvement Policy
We will comply with laws and regulations related to occupational safety and health to create a comfortable environment in which employees can work in a healthy and safe manner so that they can achieve high performance over the long term.
● Health Care Basic Policy
- Employees shall give top priority to their own health and strive to maintain and promote their physical and mental health.
- The company shall provide a comfortable work environment so that each employee can fully demonstrate his or her abilities.
- Promote health management of employees in cooperation with industrial physicians through appropriate use and thorough management of personal information such as results of health checkups and stress checks.
Enacted on April 12, 2023
Employee Engagement
The Company has introduced the following systems to support the asset building of employees, foster a sense of belonging to the Company, and increase corporate value over the medium to long term through each employee's contribution to the Company's performance.
● Restricted stock grant plan
In order to motivate employee to contribute to the Company's long-term performance, the Company provides its employees with the restricted stocks as incentives to continuously improve the Company's corporate value.
● Improvement of Work Environment and Stress Checks
The results of the company-wide stress check conducted once a year show that health risks are low compared to the national average. These are due to an appropriate workload burden and an environment in which employees have control over their work. We will continue to maintain and improve a comfortable work environment to enhance employee engagement.
Promoting Diversity and Inclusion
Promotion of Women
Recognizing that the promotion of women's activities is essential for sustainable growth, we are actively working to develop and appoint female managers as well as promote diverse work styles. As of the end of June 2024, we have achieved a ratio of 25% of female managers.
Promoting work styles that suit lifestyles
n order to realize a work style that suits each employee's lifestyle, we have introduced various systems such as childcare leave, shortened working hours for childcare and nursing care, flextime system, and telecommuting system. In particular, we are promoting an environment that allows employees to return to work with peace of mind after maternity or childcare leave, and the return rate from childcare leave has remained at 100%. We also actively encourage male employees to take childcare leave.
Promotion of Women's Activity
We have a policy of actively recruiting talented people, without regard to gender, nationality, or other factors, based on an equal evaluation process. However, given the fact that Japan lags far behind the rest of the world in terms of women's activities, we believe that it is not enough to evaluate women equally and fairly, but that it is necessary to take action to actively promote women. Therefore, we aim to increase the ratio of female hires to more than 30% by strengthening our female recruiting staff, conducting PR activities to promote the company as a company where female employees can play an active role, and expanding our recruiting content for female job seekers.
Solving social issues through our business
We are developing diverse services to solve social issues. One of our key services, Support Chatbot, contributes to solving issues such as the declining workforce by automating internal inquiries and customer support tasks. We also develop AI tools and AI algorithms and provide them free of charge to the general public, thereby contributing to the realization of digital transformation (DX) and a paperless operation.
- Provide high-quality, easy-to-introduce services through SaaS business
- Promoting DX in school education by providing Cheating Prevention AI
- Provision of free tools for companies working on personal information protection measures
- Free provision of OCR tool for DX and paperless operation
- Free provision of various AI algorithms
- Provision of Cheating Prevention AI to Promote DX in School Education
Initiatives to eliminate social and digital disparities
We are committed to eliminating the digital divide and other disparities in society.
- Conducting classes on AI, language processing, entrepreneurship, and other topics at several universities
- Providing our services at a discounted price for educational institutions and research organizations
Governance
Basic Policy
User Local, Inc. positions the enhancement of corporate governance as the most important issues.
We believe that t it is important to continue to maximize sustainable corporate value and build a relationship of trust with our shareholders and all other stakeholders.
Based on this recognition, we have committed to highly transparent management with enhancement of the efficiency and soundness of management.
Enacted on December 8, 2021
Initiative
● Corporate governance system centered on the Board of Directors and the Audit & Supervisory Committee
Board of Directors
The Board of Directors, consisting of 8 members (including 5 outside directors), makes decisions on important management matters related to business execution, supervises the execution of duties by directors, and works to ensure the transparency, efficiency, and soundness of decision-making.
Audit & Supervisory Committee
The Audit & Supervisory Committee consists of 3 members (including 3 outside corporate auditors) and monitors the operation of the Board of Directors and audits the activities of the Company as a whole, including the execution of duties by the directors, from the perspective of legality and appropriateness.
In addition, the Company actively exchanges opinions with the accounting auditors and internal audit staff on a regular basis to ensure effective and efficient audit operations.
Auditing Firms
Name of the auditing corporation：PricewaterhouseCoopers PwC Japan LLC
● Strengthen risk management system
We have established a Risk Management Committee, chaired by the President and Representative Director, to manage all risks associated with our business activities in a rational and optimal manner from an overall perspective. The committee identifies and assesses risks for the company as a whole, and responds to important matters after reporting to the Board of Directors.
● Establish and strengthen compliance system
We have established an internal reporting system for directors and employees to report suspected violations of laws, regulations, and internal rules, etc., in order to prevent and detect violations of laws, regulations, and the Articles of Incorporation at an early stage, and in the event that a violation does occur, to quickly identify and deal with the information. We also regularly conduct compliance training for our employees to create an organization that is geared toward enhancing corporate value.
● Corporate Governance System
Our corporate governance structure is as below.
