Sony Group Corporation (6758) Earnings Call Transcript & Summary

It's now time for us to start Sony Group Corporation Sustainability Briefing for fiscal year 2022. I will act as your emcee, and my name is [ Ishii ] from Corporate Communications. We are holding this briefing for media analysts and institutional investors whom we have contacted in advance. And from this fiscal year, the name of the event has changed from ESG Briefing to Sustainability Briefing. Today, we will be hearing from Chairman, President and CEO, Mr. Yoshida; also Senior Executive Vice President, Shiro Kambe; and Kazushi Ambe. And then after that, there will be a Q&A session with the participation of Kambe, Ambe and Mitsu Shippee of the Sustainability department. And we expect the session to last for about 90 minutes. First, we will have an explanation from Yoshida.

Hello, everyone. This is Kenichiro Yoshida. At Sony Group, we are driving diverse businesses based on our purpose to fill the world with emotion through the power of creativity and technology. I would like to make the Sony Group, which is made up of approximately 110,000 employees, a company that continues to learn. This is because learning leads to the growth of our employees, and it directly relates to today's theme of sustainability. First, I would like to touch on getting closer to the creators who create Kando or emotion as well as users who are the subject of Kando and what we learn from them. Sony collaborates with various partners to fill the world with emotion. At the same time, we are also delivering our own DTC services based around communities of interest. That is communities of people who share Kando experiences and interest. The reason we directly deliver Kando to users in specific areas is because we are able to learn from them. One example is live game services, which we are engaging in as a growth area. Instead of games being produced by creators alone, we use what we learn from user feedback to generate endless game worlds. By connecting directly with the community in this way, we learn about their enthusiasm or their frustration and use this to create Kando. And the filming of this year's blockbuster hit, Top Gun: Maverick, 6 Venice digital cinema cameras and extension systems were used for shooting to capture stunning images from inside an F-18 fighter cockpit. Sony provides many products and services that are used to create Kando content. These emerge from the accumulation of our learning from creators. CMOS image sensors are key components that support the creation of Kando by creators. Sony has invested approximately JPY 1 trillion in CMOS image sensors over the past 4 years. Our CMOS image sensors that capture the real world can be said to be technology that learns from reality. This technology is also being used in our new business initiative that delivers the Earth to people in the form of Kando content. The nano satellites of the STAR SPHERE project incorporates Sony cameras, allowing creators and users themselves to capture the Earth and Stars. I would like to provide opportunities for people to learn more about our planet and heighten awareness of our environment through creations that utilize this perspective from outer space. In addition to these perspectives from space, watching over our planet extends to sensing the earth's surface. We are proceeding with an R&D initiative by combining sensing of elements such as soil moisture, ultra-wide communication networks and predictive analysis based on the captured data. Watching over the Earth enhances our ability to protect it. This project is an R&D initiative that aims to function as a platform to watch over the Earth and contributes to prevention of natural disasters and the resolution of environmental issues. AI is integral to this type of predictive analysis based on data. I consider AI as technology that learns from reality, just like CMOS image sensors. Our intelligent vision sensor, IMX500, combines CMOS image sensor technology with AI. The IMX500, which can be considered IoT technology that learns, can help advance the productivity of society, for instance, through the realization of smart cities. In addition, this technology enables power consumption to be reduced by performing data processing within the image sensor and minimizing the amount of data flowing to the cloud. Going forward, we aim to extend its availability around the world as a solution that creates social value. Sensing and AI are also indispensable for the evolution of mobility such as ADAS. We also believe that the evolution of mobility will connect to a healthy global environment. Today, I explained how diverse learning is leading to the growth of Sony and the sustainability of our planet. Sony's management is constantly learning from our diverse employees that hail from various backgrounds. In fact, the purpose that I mentioned at the beginning was born from the observations and awareness of our employees. In order to make the world, which is a place where we pursue our purpose, sustainable, I would like to continue to value learning alongside our employees so that Sony can contribute to people, society and the planet from a long-term perspective. Thank you.

Hello, everyone. My name is Shiro Kambe. This year marks the fifth ESG and sustainability briefing. Since the first one was held in 2018, when Mr. Yoshida was appointed President of Sony. As Mr. Yoshida mentioned in his opening speech, we value diverse learning and believe that learning from our stakeholders is important, therefore, we continue to hold these briefings. Today, we will focus on our initiatives for employees and climate change. Additionally, as an example of our efforts in solving social issues accompanying changes in society and technology, we will go over our efforts related to AI ethics, which have become particularly important in recent years. Sony has a diverse range of businesses, each with its own sustainability priorities. In addition to material topics for the entire group, each individual business is working on relevant sustainability topics by leveraging its own strength. At the business segment briefings held in May of this year, top management of each business introduced initiatives to address the sustainability issues in their focus area. In addition to the introduction of sustainability evaluation indicators as a factor in determining compensation of senior executives, we have also established KPIs in each of our businesses and have incorporated them into the performance evaluation of our business. Sustainability is also positioned as an important topic for the Board of Directors to whom the progress of sustainability initiatives is reported for review on a quarterly basis. Sustainability-related issues are diverse, and new challenges continue to arise, accompanying the evolution of society and technology. In addition, the issues that we see as priority areas may change depending on the status of Sony's business going forward. In promoting sustainability initiatives, we believe that it is important to regularly review and update the sustainability issues that are important to the Sony Group, both from our own perspective and from that of our stakeholders. This is called materiality analysis. Our previous materiality analysis was conducted in 2018. But over the past 4 years, the environment surrounding Sony has also changed dramatically, including an increase in natural disasters due to climate change, the COVID-19 pandemic, an increase in human rights risks and social divisions and the emergence of new geopolitical risks. Also, while new technologies such as AI and sensing contribute to solving these social issues, they can also contribute to the creation of new social issues that did not exist in the past. In light of these changes, we conducted a materiality analysis from the perspective of the entire Sony Group this year. After spending about 6 months evaluating the importance of sustainability topics, we identified climate change, diversity, equity and inclusion, respect for human rights and technology for sustainability as the most important. Additionally, there are also topics that we recognize that is becoming particularly important in recent years, such as AI ethics, information security, privacy and the circular economy. We believe that these items will become increasingly important in the future, especially as Sony continues to grow and create new Kando spaces as a creative entertainment company with a solid foundation of technology. Now the officer in charge of Human Resources and General Affairs, Mr. Ambe, will talk about our efforts in human resources, including DE&I, which is one of the most important items. Ambe-san, please.

Hello. My name is Kazushi Ambe, and I'm in charge of Human Resources and General Affairs. I will now explain our efforts to realize Sony's growth by unleashing the diverse individuality of each and every employee within the Sony Group and supporting their growth. The diverse businesses of the Sony Group are supported by a diverse workforce of approximately 110,000 employees. By region, about half of the employees are outside of Japan, and we consider this diversity of talent to be a major strength in enabling Sony to achieve sustainable growth. Ultimately, our belief is that the growth of the company is the sum of the growth of diverse individuals. As Kenichiro Yoshida stated earlier, for a company to continue to grow, it is imperative that its employees continue to learn proactively and realize growth. Since its founding, Sony has respected the ideas and individuality of each employee and supported the individual challenges. As a result, we have established a culture in which employees engage in learning themselves. And through this, we have achieved self-sustaining employee growth. Placing such emphasis on the individual can make it more challenging to align this diverse spectrum of individuality and thoughts with the overarching management strategies. However, I believe that a drive towards growth represents a common thread connecting the company and employees. This corporate culture and management philosophy in relation to our employees that continues to support, protect and cultivate the relationship between the company and employees around the access of growth is another key competitive advantage for Sony. I'd like to share a video that includes messages from our founders, Masaru Ibuka and Akio Morita and our current CEO Yoshida, on this philosophy. [Presentation]

As Yoshida said in his message, we believe that people are the most important foundation of value creation at Sony. Sony's purpose was defined to unite our 110,000 diverse employees and to ensure that they're all moving forward on the same vector towards value creation. Our purpose is a promise to our employees, and the essence of a job-type employment system that matches well-defined roles with opportunities for individual growth is dialogue with employees. In order to support the challenges of diverse individuals who share our purpose and are committed to value creation, we decided it was necessary to convey the philosophy for people in an easy-to-understand manner. So we have redefined it as Special You, Diverse Sony. This phrase expresses the message that each individual with his or her unique personality, and Sony, which welcomes these diverse individuals, can create mutual growth centered around our purpose together. We have organized our HR initiatives to realize this people philosophy into 3 pillars: attract, develop, engage talented individuals. The diverse businesses that comprise the Sony Group and the HR policies required to address the individuality of each business and achieve growth differ. As you can see, we're promoting support for attracting, developing and engaging individuals through initiatives optimized for each business, led by a highly diverse HR leadership team. Just as our purpose represents a shared foundation for value creation across our diverse businesses, we are working together as a group on initiatives to create greater value by leveraging our diversity. These include measures to nurture the next generation of talent, optimizing talent across business boundaries and initiatives to enhance engagement, all of which are based around the shared access of the overall group's people philosophy. All of these efforts are based on a fundamental approach that emphasizes supporting employees to unleash their individuality and undertake challenges and grow rather than managing them. I would now like to introduce some of the specific measures related to the Sony Group's HR initiatives and their evolution to date as well as some of the themes we are focusing on going forward. This is one example of how we aim to bring out the best of our diversity of knowledge and experience. In addition to supporting the growth of individuals within the company and providing employees with opportunities to maximize their abilities, we also appoint experts with rich outside experience to leadership roles across our group companies and in managerial roles with responsibility for core headquarters functions. By bringing in people with outstanding knowledge, experience and high degree of expertise from outside the company, we aim to acquire new perspective and learning that triggers inspiration within our organization, enables us to adapt to the drastic changes in our business environment and continue to evolve. We are also implementing priority measures according to the business region and social environment in the area of diversity, equity and inclusion. For example, in our entertainment business headquartered in North America, we provide support for the education and early stage development, such as mentorship and internship programs for people from underrepresented backgrounds through internal and external partnerships that aim to help them prosper within the industry. In Japan, we provide the Symphony plan, which covers not only child care and nursing care, but also cancer and infertility treatment and sharing the know-how of a special subsidiary of employment, people with disabilities within the group. We are also adopting universal design elements in our products and services by involving people with disabilities in the creation process from the planning stage by working to create an optimal and rewarding work environment, we are building a culture at Sony in which everyone can play an active role. We have also emphasized diversity in our measures to develop talented individuals and have achieved evolution. Sony University was established in 2000 as an initiative to develop future leaders in the Sony Group. Currently, 3 courses are provided for executive, leader and emerging leader level participants. And the programs are structured around lectures on leadership and group discussions. The spectrum of participants is well balanced and continues to evolve in every respect from their area of business responsibility to their nationality and gender. As part of our efforts to drive further diversification, we are also promoting activity interaction and personnel exchange and continue to explore partnership with advanced external training institutions such as IESE Business School in Barcelona and Singularity University in Silicon Valley. Technology, one of the drivers of Sony value creation, is also generated by people. The technology strategy committee supports the independent learning and growth of employees and is at the core of our efforts to support a cross-sectional deployment of this technology in all businesses across the Sony Group and to drive its future evolution. There are 10 technology domains within each area of technology, which transcend business boundaries to share cutting-edge technology, provide opportunities for broader learning and support the advancement of our technology capabilities. These committees also conduct activities to support the training, career development and rotation of engineers. We believe that the various HR measures we are taking to support employees' growth will ultimately be reflected in the level of employee engagement we are able to generate. We conduct regular employee awareness service as an important indicator for management. And from an early stage, have linked employee engagement to remuneration for executives as part of evaluation of the implementation of sustainability initiatives. By analyzing the result of this engagement service and quantitatively ascertaining their correlation with the earning and growth changes, we have begun working to utilize them in our HR policies. And to this point, I have introduced a number of changes which we have implemented today to support the growth of diverse individuals as companies engage in even more of the investment in human capital to ensure the similar growth going forward, I believe an important keyword will be medium to long-term perspective. It is difficult to empirically quantify the present value of our people who represent vital assets to the company. And then much depends on the organization culture and mindset of each employee. However, at Sony, we believe that every individual has limitless potential for development and growth. Culture and mindset are not things that can be changed quickly. Furthermore, as with other areas of sustainability, there are some issues that are difficult for a single company to resolve on its own. That is why we consider it important to take a medium- to long-term approach rather than a short-term perspective when deploying and investing in human capital. I would now like to introduce some of Sony's areas of focus and key themes going forward. The first aspect of this approach is to support human capital development from a medium to long-term perspective. By going beyond the boundaries of companies through university and enterprise partnerships, the Sony Group operates globally and our recruitment and employee development is conducted according to the strategies and circumstances of each business and reason. In Japan, we hire more than 1,000 new graduates every year as well as proactive recruiting of mid-career employees with engineers, in particular, accounting for a large percentage. Our initiatives in this area include participating in the world-leading innovative graduate study program established by the University of Tokyo School of Engineering and participating as a donor company and then of course the school provides on cutting edge topics related to AI. In addition, Sony has established a joint research chair for future devices and systems with Tokyo Institute of Technology that aims to promote research and development that contributes to a safe, secure and sustainable society; nurture the next generation of talent; and participate in support programs for women in science and technology open to a wider range of participants, including junior high and high school students. The limited number of women in the field of engineering in Japan is one of the major challenges in ensuring diversity at Sony, which has a large number of engineers. And Sony plans to support the University of Tokyo's Metaverse School of Engineering scheduled to be established in October and Nara Women's University's Faculty of Engineering, newly established this spring, mainly by dispatching lecturers and holding workshops as a way to inspire future engineers. Supporting the development of innovative and entrepreneurial talent in Japan on a wider scale is also an important initiative for Sony, a company where creativity is a keyword of our management approach. As part of this effort, we are investing in the Kamiyama Marugoto College of Technology as a scholarship partner to support free scholarship for students. Next, I would like to explain the expansion of our investment in human capital through compensation using stocks. The Sony Group has been actively using stock options for about 20 years as stock-based compensation to promote share value with shareholders in order to enhance our corporate value in the medium to long term and eligibility for stock options is currently being expanded throughout the group. If the combination of human resource measures is employee engagement index, the aggregation of business activities can be considered corporate value. In a company with diverse businesses such as Sony, stock-based compensation is a highly effective way to align the vectors for value creation between these diverse businesses and employees. Furthermore, in an increasingly competitive race for talent acquisition, stock-based compensation represents an essential part of the proposition we can make to attract talent. Paying close extension to the trends in legal reforms, we introduced restricted stock RS compensation plan in 2017 and decided to introduce a global and more generic stock-based plan through restricted stock units, RSU, in June as a further step in our evolution. Eligibility for this RSU plan also includes employees in addition to executives. And we intend to accelerate our investment in human resources through stock. We plan to strengthen analysis and management of employee data, in addition to reinforcing our alignment with the area of digital transformation, to effectively leverage the abundant business assets within the Sony Group, such as platform services, technology, know-how and expertise and intellectual property. For us to effectively utilize these business resources beyond the boundaries of each individual business, the key is to develop the talent and interpersonal networks that can serve as catalysts for the growth of technology and knowledge in addition to analyzing assets. In doing so, what is vital is to accumulate and enhance the visibility of personal data such as where our talent is located and the specific area of expertise. In addition to further admitting and actualizing the information provided by the global employee data management system, Workday, we plan to work closely with our team promoting DX to build a system that maximizes the potential of the Sony Group. In terms of sharing the diversity of our knowledge and experience, the management team who play a central role in each of our businesses and functions are a vital asset for the Sony Group. To create a strategic connection between our management and promising future leaders, we aim to build relationship as mentors and mentees and ensure that the rich experience accumulated within the group is passed on to the next generation, leading to new value creation and employee development. Lastly, I would like to touch again on this important approach, enabling Sony to continue achieving growth. The keywords for our growth are individuality and diversity. While further enabling both these concepts to flourish, we believe that supporting the continued learning and growth of diverse individuals from a medium- to long-term perspective and synchronization with our business strategies will also be increasingly important for the sustainable growth of the Sony Group. Thank you for listening.

As we heard from Mr. Ambe, Sony is implementing various measures with the diversity of its employees as a major strength. In addition, we are promoting initiatives related to DE&I as part of our relationship with society. One example is Sony's technology designed to improve the accessibility of products and services. On September 13, we announced a partnership with WS Audiology in the hearing aid business for the U.S. market. We adopted an inclusive design method, which includes conducting interviews and testing with hearing impaired employees and users from the planning stage. By reflecting lessons learned from this process into the design and comfortability of the product, we aim to contribute to delivering Kando to many people by reducing the psychological hurdles that users face when wearing hearing aids. In addition, through the Global Social Justice Fund established in 2020, we're committed to promoting diversity, equity and inclusion and supporting organizations dedicated to social justice and human rights around the world. Today, Sony Group companies in the U.S., mainly the entertainment companies, will publish their global Social Justice Fund Impact Report highlighting the outcomes of the grants for communities around the globe. Next, we will explain the use and responsibility of AI. Sensing and AI are particularly important as technologies that support Sony's growth and endeavors. We see AI as a technology that will support the evolution of mobility and entertainment. Deep learning and AI are becoming increasingly important in the areas of audio and video, which we have been involved with for some time. On the other hand, considering how powerful these technologies are, their impact on society is also significant. And with the development and use comes great responsibility. Sony has formulated the Sony Group AI ethics guidelines in 2018 and established the Sony Group AI Ethics Committee in 2019 to talk about the responsible use of AI. The AI Ethics Committee, which I chair consists of members with diverse specialties and backgrounds to educate and enlighten group companies on AI ethics and to support the appropriate use of AI in the Sony Group. Now Alice Xiang, Global Head of AI Ethics, will provide an overview of Sony's AI ethics activities.

Hi, everyone. My name is Alice Xiang, and I am the Global Head of AI Ethics for Sony Group. The team's I lead conduct ethics assessments of AI development and use across Sony's business units, along with cutting-edge research on fairness, transparency and accountability in AI. AI is revolutionizing society, transforming how we interact with and understand the world. Through leveraging AI, Sony aims to contribute to the development of a peaceful and sustainable society while delivering Kando or emotion to the world. As we expand our AI development and usage, however, we must ensure that it conforms with our Sony Group AI ethics guidelines, which include respecting diversity and human rights, preventing discrimination and pursuing transparency and trustworthiness. Our goals for AI ethics at Sony are fourfold. First, our AI Ethics work should help maintain and expand Sony's global competitiveness. To enable and accelerate AI as a sustainable competitive advantage for Sony, we must invest in our capacity to use AI in an ethical way. This is nontrivial given that AI is an emergent technology, often with unanticipated effects. As a result, our second goal is to evaluate and mitigate potential legal, reputational and ethical risks associated with AI use. We should be proactive rather than reactive to addressing AI ethics concerns. Third, since Sony is a leading global technology company, we must ensure that our products and services work well for all customers regardless of their nationality, gender or other attributes. Finally, our goal is not simply to have Sony stay up to date with AI ethics practices across industry, but rather to be a leader in AI ethics. To this end, in 2018, Sony was one of the first companies to establish AI Ethics guidelines. In December 2019, Sony established the Sony Group AI Ethics Committee, comprising senior executive leaders who deliberate on high stakes AI use cases and make decisions regarding the modification or discontinuation of such uses. The direction was also set that all AI products should be evaluated for ethical concerns. And in 2021, the AI Ethics office was established to provide subject matter expertise on AI Ethics to all Sony businesses. In July 2021, after months of pilot assessments, Sony launched its AI Ethics assessment process as part of the mandatory quality management system for electronics products. A key component of this assessment process is AI ethics by design. Instead of being a final step considered at the end, ethical issues are evaluated at every stage of the product development life cycle, beginning in the planning stage, before a single line of code is written, and extending to the design, production and shipment stages. Since launching the system, the AI Ethics office has evaluated over 100 cases. These have included smart camera solutions using our image sensor technologies, video production solutions and other electronics products. High-risk use cases, including those that might affect people's health or livelihoods, has been reported to the AI Ethics Committee, which has halted the development of certain AI technologies. Another important component of our AI Ethics strategy at Sony is the integration of research and practice. To this end, in 2021, Sony also launched the AI Ethics research flagship at the heart of Sony AI to conduct cutting-edge research on challenges faced in the development of AI products and services, including ethical data collection and algorithmic bias detection and mitigation. In addition, Sony actively pursues dialogues with relevant companies, organizations and the academic community on AI ethics issues. Sony is a member of several multi-stakeholder organizations, including the partnership on AI and the global partnership on AI, and contributes expertise to numerous policy initiatives globally. We believe Sony is well positioned to become a leader in ethical AI. In a field that is dominated by U.S.-based tech companies and European regulatory standards, Sony can offer a distinctively diverse and global perspective with its businesses ranging from entertainment to electronics and financial services. Our AI ethics initiatives are fundamentally aligned with Sony's value creation to create products and services at the intersection of entertainment and technology. We aim to enhance and expand human imagination and creativity rather than to replace it. Sony has consistently been named one of the World's Most Ethical Companies by the Ethisphere Institute. Through our work in the AI ethics office and Sony AI, we aim to reflect these values in our business practices and lead the way toward more ethical AI.

I will now discuss the progress of our environmental initiatives with a focus on climate change, which was identified as one of the most important items. Sony's environmental initiatives are organized along 2 axis: responsibility and contribution. The long-term environmental plan, Road to Zero, set in 2010, is representative of our responsibility initiatives. As a long-term goal, this plan aims to achieve a zero environmental footprint and is driven from 4 perspectives: climate change, resources, chemical substances and biodiversity. Considering the urgent issue of climate change as well as our past achievements, we have decided to push forward our target for achieving net zero greenhouse gas, GHG emissions, by 10 years, a decision we announced at the Corporate Strategy Meeting in May. Additionally, within this context, we have also pushed forward our RE100 goal of operating with 100% renewable electricity by 10 years. Specifically, we're aiming to first reduce Scope 1 and 2 GHG emissions generated from our business sites to net zero by 2030. Furthermore, when including Scope 3, which indirectly occurs in the value chain, we aim to reach net zero by 2040. This plan meets the criteria for the science-based targets initiative, SBTI, net zero targets and was recently approved as net zero targets. The key to this plan is to reduce emissions throughout the value chain. That is Scope 1, 2 and 3 in total by 90% at a rate compliant with emission pathways that limit global temperature rise to 1.5 degrees Celsius, and ultimately reduce the remaining 10% or less of emissions to 0 through carbon removal. We recognize this as a world first for a major company in the consumer durables, household and personal products sector. Here, you can see the missions for the Sony Group as a whole, along with our initiatives to reduce them. We believe that achieving net zero for Scope 1 and 2, which are the emissions generated by our own sites, is an important responsibility. However, Scope 1 emissions generated directly from our business sites are relatively small. And even when combined with Scope 2 emissions from power plants and other sources of energy used by our sites, they account for only 7% of total emissions. A relatively large amount of emissions for the Sony Group are attributed to the category of indirect emissions or Scope 3. The largest share, approximately 62%, is generated from the electricity used by the customer in the use of sold products. This is followed by purchased products and services generated in the supply chain when manufacturing the raw materials and parts that make up products, which accounts for approximately 22%. Sony plans to continue to reduce electricity consumption of its products. However, because these emissions depend largely on the energy source of the electricity consumed by Sony's customers and suppliers, initiatives that involve whole supply chain as well as the promotion of decarbonization by society as a whole will be essential. Next, I would like to touch on the introduction of renewable energy at our business sites as well as our supply chain initiatives. Sony has been promoting the introduction of renewable energy in each region, even since before joining the RE100 initiative, having achieved 100% renewal electricity in Europe in FY 2008, in China in FY 2020. In addition, in line with the RE100 target being advanced for by 10 years, Sony has raised its target for the usage rate of renewable energy at our business sites from 15% to at least 35%, which we aim to achieve by FY 2025. Last fiscal year, we installed solar power generation equipment at business sites, which is indicated by the green box to meet our targets. And in order to further optimize the use of renewable energy at the business sites around the world in accordance with the conditions of each region, we intend to continue our efforts to introduce a solar power generation equipment at additional business sites, purchase renewable electricity from power companies and use renewable energy certificates. Additionally, as a new initiative, we have entered into a contract with a renewable power generation company to implant a virtual power purchase agreement, PPA, that uses a feed-in premium scheme, the first of its kind in Japan. With this initiative, we hope to accelerate the introduction of renewable energy with additionality in Sony. We plan to collaborate with the companies you see on the slide to receive approximately 2.4 million kilowatt hour of renewable energy annually from a new 2.0 megawatt solar power generation facility built in early FY 2022 while Sony has always taken the surrounding environment into consideration when introducing renewable energy. In May of this year, Sony revised its renewable energy procurement policy and added new consideration, including those for the environment at the time of installation and operation of power generation facilities. For this current procurement as well, we conduct on-site inspection of these items and confirm the status of communication with the local community. The next topic is the reduction of emissions along the supply chain. As part of our efforts to reduce the environment impact of its supply chain, Sony requires its suppliers of raw materials and parts as well as contract manufacturers to monitor GHG emissions, set long-term and medium-term targets for emission reduction and perform progress management. Additionally, Sony also conducts surveys on its efforts to reduce environmental impact in order to understand the GHG emissions associated with the manufacture of raw materials, parts and products delivered to Sony. We are working to raise the level of awareness along the supply chain by informing suppliers of Sony's environment perspective through videos and other means as well as through providing guidance on SBG and assistance in calculating GHG emissions. Starting from this year, we began supporting some of our suppliers by visiting their factories in person to assist in developing energy saving activities and providing instruction on how to set SBT equipment targets and obtain approval from SBTi. So far, we have talked about responsibility initiatives, but Sony has also launched a variety of initiatives, as you can see here, in the area of contributions where we are endeavoring to contribute to the improvement of the global environment itself through our technologies and businesses. Today, several of these examples are on display on the first and second floors here at Sony's headquarters, and I hope you will take a look at them on your way out. This exhibition consists of 3 perspectives: the planet, society and the people, and includes examples of the technology that Sony is currently working on. We hope that this will be an opportunity to everyone to think about the Earth, which we must protect from a variety of perspectives and how we, who inhabit the Earth, can jointly fulfill our responsibility and make contributions. For example, virtual production is a technology that replaces on-location shooting with virtual sets within a sound stage. We believe that this technology can help reduce our environmental impact as there will be no need to transport crew and equipment to the filming locations. Our early test shows a 75% to 80% reduction in GHG emissions compared to filming on location. Today, we talked about the importance of diverse learning materiality analysis and its associated initiatives, human resources strategies that support the growth of diverse individuals, initiatives toward net zero by 2040 and utilization and responsible use of AI. There are many other topics that I have not been able to cover due to the time constraints. However, please refer to the corporate report and the sustainability report for more detailed information. We would like to further evolve our sustainability initiatives by continuing dialogues with you, our stakeholders, including the feedback we receive in response to today's briefing and by continuing to learn. Thank you.

That is the end of the presentation portion of this session. Following this, from around 3:50 p.m., we will have a Q&A session. The first 20 minutes will be for the questions from the media, and the latter 20 minutes will be questions from investors and analysts. Those of you participating online, for those of you who have registered in advanced ask questions, please call the designated phone number and connect. And method of asking questions and caution points, please refer to the notice that we have sent, too, in advance. For those of you who have not registered in advance, you can continue to observe the Q&A session. Can you wait a little while before we resume.

So now we will entertain questions from the media. The respondents are Senior Executive Vice President, Shiro Kambe; Senior Executive Vice President, Kazushi Ambe; Senior General Manager of Sustainability Department, Mitsu Shippee. So let us now begin our Q&A session. [Operator Instructions]. The person in the middle in the front row.

I'm from Nikkei newspaper. My name is [ Surokawa ]. And I would like to ask for environment and AI. With regards to the environment, as a new initiative, you have the first FIP virtual PPA in Japan. And at the General Meeting of Shareholders, Kambe-san, this renewable energy introduction in Japan is a challenge, you said, especially with semiconductor plants. And by 2030, 100% attainment of renewable energy is your goal. And this time, how effective will the virtual PPA be? In your case, in FY '21, Scope 1, was 14.6% introduction. And in 8 years to make it 100%, I would think that the hurdle is quite high. And so 2.4 million kilowatt hour per year, how much percentage will be to raise? And second question about AI ethics and you have evaluated 100 cases and sometimes you have discontinued the development. So to the extent that you can, which kinds of cases did you have to discontinue?

Thank you for those questions. First question is about using FIPS and the virtual PPA and in Japan, for the 100% renewable energy procurement, how effective it is. And second has to do with AI ethics and what are the cases where the development was discontinued. So first question, I would like to answer and if necessary, Shippee we would like to supplement. And as you say, Sony Group -- of the power used by Sony Group, the semiconductor plant, in terms of power consumption in Japan, it's about 70% to 80%. So overall, big. And therefore, in Japan, to what extent can we change the use of renewable energy to attain RE100. So that is the biggest challenge. And especially power consumption is used much in the large semiconductor plant. And the measures, first of all, in the plants and business sites, how to efficiently use electricity in order to reduce power consumption. And that effort is taking place. For example, in the case of semiconductors, in Nagasaki [ F5 ] has opened. And there, the power efficiency has gone up quite a bit. And also power -- solar power generation is being promoted so that we ourselves can create renewable energy. But that alone is not enough and that means that renewable energy power has to be purchased. And in addition to that, there is the certificate of renewable energy. And so this time, we introduced the FIP system and virtual PPA. And I think Shippee can talk about this aspect. And so this is just one part. And in semiconductor business of Sony for the next 7 to 8 years, we are working for 100% renewable energy, which could raise costs. But we believe that, that is necessary. And so the road map has already been prepared. Mitsu Shippee?

Well, first of all, with regards to the virtual PPA system, from this fiscal year, we are able to make use of the system. And the biggest key point here is that the power generator, well, they generate power, and the environmental value and the power that they generate can be separated and the environmental value or the certificate can be utilized separately. And this use of the FIP system, well, the power generator sell power. And that price -- or the price fluctuation risk, because there's a premium, that can be suppressed. In other words, for us as users, the environmental value or there could be price fluctuation changes of the certificate and we can suppress that risk. And so we are making use of the system so that at a stable price for a long time, the environmental value portion can be purchased. And I would say that, that is the biggest advantage. And this system overseas already is spread. And as Kambe has just mentioned, in Japan, renewable energy procurement is being viewed. And therefore, we have expectations as one option. As for the second question on AI ethics, especially the AI Ethics Committee making the adjustment to discontinue development. With regards to the individual cases, we must refrain from talking about that. But what was -- what tends to be a topic of discussion. Well, facial recognition, something related -- technology related to facial recognition, especially in Europe and the United States, that is a topic of discussion. And there is some moves for legislation. And well, depending on how it's used or the evolution of the technology, it could violate human rights or it could encroach on privacy. And so in this area, you have -- we are making very cautious study. And it could be that -- well, there are use cases. So where will the technology be used? For example, if it's Sony, is it going to be used inside the company or one private company? Or is it going to be outside, in the public, used outside? Or is it going to be used by a public agency or public institutions. So I think that will differ in terms of AI ethics value. And one more thing. AI ethics. Well, going beyond our laws and regulations, regions, countries culture, religion, I think there are different views. And so from that perspective, we have to have diverse discussions to think about certain cases and make judgments.

Thank you. We will proceed to the next question. Yes, I see someone in the third row.

NHK, [ Shimai ] is my name. I would like to ask you about personnel matters, HR, on 2 points. Other companies recently are shifting toward more flexible work style. Going forward, well, you need to secure top talents, but do you have any specific initiatives? For example, certain specific HR systems that you introduced. Another point about HR personnel matters. Well, prices are going up now. And if you are thinking about a onetime payment or any possibility of pay raise in the future? If you could share with me this information, I would appreciate it.

Thank you for 2 questions. Flexible work style, which is becoming more prevalent in society. But in order to recruit good talents, is Sony thinking about the introduction of a new system. And as an investment into HR, is Sony thinking about having a onetime payment or pay raise. For more than 2 years, COVID-19 is upon us and work from home is taken root, and we acquired some know-how during this period. How can we leverage this knowledge going forward? As I said earlier, ultimately, for a company to sustainably grow, the employees must sustainably grow. What is the most desirable. Depending on the characteristics of the business that may differ for each business, there should be efficient way of working, including working from home. One specific example I can give you, proactively, in the semiconductor business, which is leading the growth, securing stably the personnel, human resources is so important as a challenge on -- from the 1st of October, we are going to introduce a full remote work system, which does not require for people to come to office throughout Japan. If they can contribute to the growth of Sony's semiconductor business, they can do so in different -- from different areas. And the premise there is that they don't have to come to office. That is a new trial that we are introducing in October. And then as we acquire the know-how through this, we try to amplify this and try to utilize that going forward. At the same time, creativity, well, is one of the most important things for growth. Sharing the space and time has a value. We recognize this value, so for each business site and for business. On an appropriate basis, people come to the office and share time and space. And combined with the work from home in a well-balanced manner, that's what we are going to introduce. Now about the investment to acquire talent, payment is so important. The prices are going up now. So how can we benefit or try to compensate for the price hike, but that's what we are thinking. Based on this idea on the basic pay or fixed pay, necessary pay raise will occur so that we can maintain our attractiveness toward people. At the same time, basically, the growth of Sony Group as a whole should be returned back to the employees. So the compensation is related or linked to performance. The employees' contribution should be reflected in the company's growth. In a very dynamic way, we try to circulate back to the employees what the company acquired or obtained. Thank you.

Now I would like to turn to the next question. The central row, and the second row from the front, please.

I'm [ Soma ] with [ EKSG ]. I would like to ask a question about the human resources as well for the environment. As to the human resources, HR at the end of last month, the government launched this new guideline for the disclosure related to the human capital. The value of human resources should be conveyed, so disclosure will get more important in the future. But talk about the human capital and human resource capital, how do you convey that message? Based upon the government launched the new guidelines, what can the indexes, indices used in order to communicate the value of your human resources? How do you cope with this new guideline by the government about disclosure? As to the environment, SBT net zero, there you are certified. So in Japan, only 3 companies, including Sony, who are certified. However, with regard to suppliers that you are going to support your suppliers to be certified, why SBT net zero certification is so emphasized by your company? What's the purpose of getting certified? Could you please elaborate on those?

So Ambe will answer the first question. I'd like to respond to the second question. So the government, the other day announced this new -- the human capital disclosure guidelines and principle. So on behalf of Sony Group, how do we respond to the government requirement. That's the gist of your question. So let me elaborate on this. Each -- one of the guidelines, of course, for the management, it's, of course, the important capital for the management. So we have a common understanding. It's an important capital, but it's so difficult to quantify. How to quantify the human resources value. It's so difficult to clarify that. There are lots of discussions likely to take place. The guidelines launched the other day are the guidelines and the cabinet office has launched that guideline. But finally, for each company, do they really have to disclose it? In order for the guideline to mature, they have to get the feedback from the companies and their voices. I understand the process will continue. The METI is exercising leadership. This the human capital-based, the current management consortium and together with Yoshida, I'm a member of the committee organized by the METI. So that from a company side, the implementable and feasible disclosure guidance should be, they figured out through the discussion. And finally, mainly the financial services METI issued, the government's disclosure or in the securities report to governments, they will make it mandatory to maybe disclose those items. And I'm sure it will eventually become the part of the mandatory part of disclosure. So in the recent guidelines, of course, one of the important draft ideas. But continuously, the implementable guidelines should be nurtured and developed further so that for our business, our private sectors voices should be reflected in the discussion. So implementable and the sustainable guideline, I think, should be eventually developed. But at any rate, the human resources are so difficult to be quantified and to visualize that, regardless of the type of guidance is something we really have to seriously deal with. And as I said earlier, within the company, we have accumulated the knowledge and findings and human resource data. In the future, more positively, that should be linked to the management policy and strategy and utilize that information. That is to say we already have the assets, human assets, which should be visualized within the company. So our initiatives should really be well coordinated and to all the investors and to the consulting community at large, what they require and some disclosure conditions, they demand is something that we would like to really pay due respect to in our discussion. So let me respond to the second part of your question about SBTi certification. That is something that, of course, our company is certified, including suppliers that we are supporting even our suppliers. Why? Sony give importance to this SBTi certification. I understand that this is the point of your question. But anyway, environment area, for example, is a climate change, is the most relevant, especially the GHG emission as well as the GH gases. For these problems, there are too many maybe indicators, indices available. Scope 1 is your own direct emission, by your own -- the business site and factories. Scope 2 means that it's part of the activity, but maybe the power source, electric power, which where does it come from? So Scope 1 is something that's easy to grasp and deal with. But Scope 2, it's rather okay to be dealing with. But Scope 3 is an indirect area emission, that you have to cover an entire value chain. It's Indirect emission. So how can you really grasp and to understand what is the emissions level? It's quite difficult in the sense. So each company might have a separate ways to handle these issues to deal with Scope 1, 2 and 3. So that SBTi is one of the standards to grasp this and capture that. So I think that is one of those rules. So globally, most scientifically based methodology in order to understand these GHG gases. So I think that's one of such institutions. So to be certified by SBTi means that we have already declared a 2040 net zero target. So maybe our target conforms to the global standard in a way, based upon the scientific grounds and evidence. And it's one of the proofs that we really conform to the global standard. There are different evaluation organizations. But among them, SBTi seems to be the most highly appreciated and evaluated by the public. But in order to realize that, to what extent can we realize our goal in Scope 3, especially that covers the entire supply chain, including our suppliers of the parts and components materials as well as the contract factories as well. So it does mean that we should just request them and ask them to do this by when. But that's not enough, because what we have to do is that we have to give them some of the support to them. In other words, we'd like to have an inclusive relationship involving all these people involved in the supply chain. Thank you.

Well, our time is running out, and so this will be the final question. And one question, please. First row, the person with the black shirt.

My name is [ Motto ] and I looked at the exhibit on the environment downstairs. And so I'd like to ask about your environmental initiative. In other words, material to suppress the environmental footprint, you have a variety of materials. And it could be the product itself or maybe in the packaging, the internal technology and know-how. How can it be shared broadly with speed? And within the company, do you have a kind of a system for the speedy adoption? And who will lead, in what way, this development?

Thank you very much for the question. There are various technology and efforts for the environment. And how can that be used in products quickly? What is the internal system to do that? I'd like to give you the answer. Now I believe that environmental initiatives of the past tended to be with the environmental department of the head office saying that you have to do certain things by a certain date or you shouldn't use plastics. So let's set a target. And the business side was thinking about cost or the product advantage. And so the exchange between the 2 parties at one time in the past was difficult. However, recently, the -- and this is true for the external environment and also the internal environment in Sony has changed quite a bit, so that the collaboration is now much better. And within the head office, of course, there is under Mitsu Shippee, the environmental group, looking at the group environment. And then R&D is also looking at the mid- to long-term sustainability as a growth strategy, and they are developing environmental technologies. And on the other hand, on the business side, especially electronics, that is ET and semiconductor, image sensors or I&SS. In these segments, environmentally friendly or environmentally related value-added products, ultimately, well, you have the customer and the employees. And it has to be appealing to both sides. And I think that awareness is very strong now. Especially the younger generations, their environmental awareness, originally in the U.S., it was strong and recently also strong in Japan. For example, last year, went on sale. The headphones and original blend material used in the headphone has captured those needs to an extent. In other words, using in place of plastic packaging. And I think such ideas are beginning to be utilized. And in ET&S and I&SS segments, there are teams that are focusing on the environment. And I think that the PDCA is beginning to work well.

Now it's time to end, finish the session for media. Shortly, we are going to open the Q&A session for investors and analysts. Now we would like to start the Q&A session for investors and analysts. Allow me to introduce myself. My name is [ Shinji ] from financial department, IR Group. We also have 3 people to answer your questions, just like the media session. Now let us start the Q&A session. [Operator Instructions] Now the floor is open. Someone in the third row towards the left.

My name is Hirakawa from BofA Securities. I have one question about the AI ethics. Earlier in the video, Ms. Xiang talked about AI ethics. Sony having diverse businesses and have the unique perspective because of that. And then in the world of AI, if you look around hyperscalers and those with the formidable amount of data processed, they are operating at a high level. So to have some influence means that the level required of Sony should be high as well. There are 2 things to consider. The AI level of Sony on a global perspective, what is the level of evaluation you yourself have on your AI scale? Second, to give a unique perspective, do you have any specific examples about the unique perspective of Sony on AI?

Thank you for your questions. AI ethics and AI itself are included in your questions, I suppose, how high the level of Sony's AI and the evaluation of AI ethics, what are the unique points of Sony. Those are your questions. As you rightly said, AI for AI ethics, the discussion around these topics is influenced by tech giants, platformers of the United States, they are leading the world in this regard. However, in -- from 2017, Sony had this partnership on AI, those members of the partnership. And Sony is the only Japan-based company in this group. This is the development and use of AI in a responsible manner. That's what we try to achieve. And Sony's CTO, Mr. Kitano, in the field of AI is well known in the realm of AI in the world in the academic society and in relation with the U.S. platformers, he gains respects. And in video, Global Head of AI Ethics Office, Alice Xiang, joined Sony last year. But even before that, in this field, centering in the United States, she has been quite active. Therefore, to a certain extent, diversity of talent, in terms of that, we are recruiting top-notch talent from in and outside the company. As Alice said in the video, the discussion of AI ethics should not be restricted to one location or one country. This should be dealt with. And on a global basis, our local characteristics are also important as well. So we have headquarters in Japan and doing business in Europe and Asia and the United States, Sony is participating in this kind of forum to lead a discussion of AI ethics. That's so important. For Sony, I would imagine these represent unique characteristics of Sony.

Now I would like to entertain the next question. Internet participants from [ HP Asset Management ], representing that, Ms. [ Omi ], will be the speaker.

I have just one question about the climate change that towards net zero that you are supporting suppliers' initiatives. But for the suppliers, how do you identify them? How do you strategically identify those suppliers whom you extend support? And so in this -- and object setting that you gave your support to the suppliers, what are the problems and challenges you face when you are trying to extend support to suppliers?

Thank you very much for your question. With regard to supply chain and initiative, and that's going to your question. As to this question that maybe the analyst will -- rather Shippee-san will answer. Thank you. Mitsu-san, can you please answer?

Well, about the suppliers' initiatives, Sony's suppliers includes so many companies and entities. So the core suppliers are first identified, selected, that's the starting point. And then the electronics product side that the parts and component suppliers and the 80% top suppliers, those are the OEMs. 90% of those are suppliers. So we first select, identify those suppliers. And then GHG remission level as well as the water usage and so on are the items where the targets are to be set by the suppliers, that's first stage. So in that sense, on behalf of Sony, the first that we did a survey or research. What is the status quo of the suppliers in terms of the stage. And so we investigated the first. In the future, the initiative will be further promoted to reduce emissions. So that's the steps that we are thinking about. And as you said and Mr. Kambe explained earlier, that they shouldn't just request them because there are so many problems to have to implement those. So that probably, we do the knowledge sharing with them. So that's the type of support we give to them. In addition, the SBT we mentioned, that finally, of course, we set the target dates and then the percentage target. So eventually, we would like to make such requests to the suppliers, that's a natural scenario. But it's not just a one-way communication imposing our targets on them. But rather, I think, first, that actual situation should be understood and the knowledge should be upgraded and how can we really introduce this energy more and GHG emission reduction can take place so that the suppliers should have more control over all these items. So together with the suppliers, like you think about the ideas and then promote those initiatives. So that's the first approach we think is very important for the time being.

Thank you very much. Next question. Those of you who have a question, people who are in the hall, you can raise your hand. And second row, please go ahead.

Nishimura from Credit Suisse. About human resources and environment, I'd like to ask one question each. With regards to people. First of all, you have a technology strategy committee that you mentioned and collaborating with the company's development or with other companies, if you could talk about that. And also, secondly, about the environment. You introduced at the end an environmental solution. And by expanding them, the CO2 is to be reduced in society. But what is the potential that you see there? And in order to increase the potential, again, are you going to make initiatives to collaborate within -- across the industry?

Well, first, with regards to the people, they will answer. And secondly, about the environmental solution, I'd like to provide the answer. So technology strategy committee, it's across the board. And what is the status of development internally and with other companies. This technology strategy committees, the scope of activities depends on the group. But the ownership, it's the R&D CDO, Kitano, basically, that's where the secretary lies and at Sony Group Corporation, the committee is operated so that the technology is utilized by all parts of the company. And so we have that kind of relationship. And what is discussed there is to be linked to the development and services at each of the businesses. So from each -- from almost all the businesses, engineers participate, and they participate in the discussions that take place. And this activity is not just limited in-house. As you asked, there are other companies, and we look at their trends and moves always, and we learn openly and try to absorb knowledge. And to be specific, there is by domain experts and they are invited to the company or on a remote basis. In various ways, we will establish relationships and sometimes they give lectures or maybe they hold workshops. And that discussion evolves or deepens and sometimes leads to the joint initiatives, I hear. So the group as a whole and also -- well, not only within the Sony Group, but also for the moves in the market as a whole, we have a high awareness so that we can pursue some collaboration. Second question. On the first floor, there's an exhibit of the Environmental Solutions. And by expanding on that, how much CO2 reduction effect can be estimated on that point. What we exhibit this time, that is the environmental contribution to the society as a whole. There is the long-term perspective of R&D. And also mostly, we feel there's business potential. And right now, we don't have numerical targets in place. But as I mentioned today, somewhat, with regards to our environmental activities, Sony's business activities, how we can use the road to zero. According to Yoshida-san, there is the responsibility of the company to reduce emissions. And I think that this is very important, and it's something that we have to do. That is we have KPIs and road map, and we determine a time line. And in addition to that, as a technology company, there is the social structure as a whole, society as a whole and how we can minimize the CO2 that is emitted and we want to contribute to that aspect, too. At least, that is our feeling. And that feeling is reflected in what is exhibited on the first floor. And Yoshida-san called this contribution. He has described it as contribution. And the environment is an urgent issue. And well, we're talking about the global environment, so the time span is long. But we have to work on this solidly. And we believe that it can be a business opportunity for the future, too. For example, if I may give one example, already, we've commercialized on this. That is I&SS business has the intelligent business sensor where AI is buying down to the sensor, and you have a sensor with AI functions. And originally, you have the sensor side, ultimate edge side. And by doing the processing there, all the -- instead of sending all the information to the cloud, you can have very quick processing. And you can also be considered a privacy. And also, furthermore, in the system as a whole, you can reduce power or the environmental footprint, we believe. And so sending to the cloud side, well, it's not just image data which is processed, but it's only metadata. So according to some calculation, the power required would be like 1/7,000 we have some times results like that. So that can be connected to our business and it can also be a change of the social systems.

Because of the shortness of time, I would like you to restrict yourself to one question each. On the left block, someone in the second row, please.

From Daiwa Securities, my name is Sakae. On Page 39 of the presentation, I have a question. Virtual PPA, that is in selecting the power generators, are there any criteria you have?

To start with, environmental value from Sony's view, what will be the appropriate way to evaluate it? And the power generators may already establish -- have established the standard. Now virtual PPA utilizing FIP, that's your question. So Shippee will answer your question.

Thank you. Allow me to answer. But the power generator, for the first time, this is the first attempt for us and the environmental group in a various way, have had discussions with these generators and in our renewable procurement partner companies have assisted us. So with them, we have had discussions. That's how we started this initiative. In the renewable procurement field, Sony as a group, there is the renewable energy procurement policy we have established. And then we are going to revise this utilizing virtual PPA procuring renewable on what ground criteria should we decide. We have already confirmed this within our company. Based on this criteria, for this project, we try to certify or ascertain that the environmental load value is secured. One point, the environmental value in the certificate is -- shows the amount of reduction of CO2. That's what the certificate is all about. It's important to get them. Something with the additionality. Renewable energy with additionality will be more important. We would like to work toward that goal.

Time is running so short, so we'd like to entertain the last question for this session. So just one question, please. Thank you. Via Internet from Mizuho Securities, Mr. Nakane, please, of Mizuho Securities.

So just one question. My question to Mr. Ambe. It may be abstract, the question, but I'd like to hear your thoughts on this. So for the human, the HR and the remuneration program and then promotion. Because there are different business companies rather depending on their own initiative that you would be maybe managing that, in general, more flexibly for HR program. So that for each entity and the subsidiaries -- and maybe there could be some gap in that HR policy amongst different companies within the Sony Group, but you might have an intergroup exchanges or the synergy to be achieved by this HR. So you do need to have one unity or sometimes conformance within your company. How do you try to strike a balance of having this more autonomous subsidiary versus more the unified global data management system? And this system is to be introduced now, but the Workday. But will that contribute to the betterment of the situation resolving that the problem you are faced with in HR management?

So I said that we dedicate the same authority to the some of the subsidiaries and companies. And so we have a more flexible management as well as more like a synergy and uniformity within the company, how do we strike a balance as a Sony Group. So in the HR, the work, would that really contribute to the betterment of the situation. Thank you for the question. As to your first question. Last year, Sony Group, to manage the diverse the businesses, we'd like to enhance and to accelerate the growth. We have a new group entity structure. Under the Sony Corporation, different group companies should become more autonomous and then pursue its own growth. So that is a new kind of this new structure and the overall goal of this Sony Group. So if that's the case, for each entity and subsidiary, I think they should recruit their own necessary people and then have the HR, the system. So that's a grand premise. So that is the policy we should share within the company. So we should maybe delegate the authority to each of the entity so that they will be more autonomous. But we cover so many diverse people and diverse business units, and that is a source of a unique competitive edge of Sony. There are lots of chance and opportunity for us to further grow and the place is to really grow and be active. So this diversity within the group should lead to the value creation for the entire group. So opportunities should be created on behalf of the entire Sony Group. And we hold the headquarter HR, that's our aim. Specifically, when there's a new opportunity arises, maybe the -- in addition to dedicating to this current business, but the employees should be given another chance and an option so they can go beyond this entity they go to the other company within the Sony Group. In other -- rather than being transferred to that place maybe within the week, certain hours are dedicated to the different business activity rather than the original. So that can carry plus system. That is a complementary new system so that the diversity will create a further new kind of value. So that's a new support system on behalf of the entire Sony Group. So today, we didn't talk about institution and system structure. Rather than talking about the structure, we talked about how to create the value from diversity, which sort of gave you a philosophical area today. But the gist of it is that the system structure, institution need to be implemented and then create the value. It's up to each employee and the management thoughts as well. So as the video clip introduced at the beginning, as the President Yoshida talked about the purpose, which is a shared common value, and the employees I think should respond to his wish. And then Sony will respond to the employee's wish. In other, we choose each other as a basic relationship between. And then all kinds of opportunities should be created and shared. So we will hit towards the common direction to stimulate growth. So Workday will contribute to that clearly. In other words, that you earlier asked about the disclosure-related question. But we at least, what kind of knowledge and expertise exists and experience we know exists? And what kind of the employee has that kind of expertise. So not the company should [ grant ]. Maybe amongst the different employees, they would like to know each other, what each has as a strength and expertise. So that kind of knowledge should be shared more in the company. So more entirely within the company, maybe the horizontal, the cross section of collaboration should be nurtured further and accelerated in the future. So first of all, so each division in the company should have the more autonomous HR management. But more cross-sectional and cross company, the common threat should be introduced as well.

Thank you very much. Well, our time is now up, and therefore, we would like to close Sony Group Corporation's Sustainability Briefing here. And as Kambe mentioned earlier, on the first floor lobby and the second floor, we have an exhibition on Sony's story on the environment, which is the initiative for the environment, and we hope that you can drop by before you leave. Thank you very much for your participation today.