FinancialSquare Enix
Annual Report 2025: Environment, Social and Governance
1 Mar 202618 pages~54 min full read
Square Enix has committed to achieving net-zero CO2 emissions at its Japanese offices and data centers by 2030.
See it on page 3The company reduced its electricity-related emissions from 34,320 tCO2 in 2017 to 20,635 tCO2 by 2025.
See it on page 2Executive compensation is tied to performance metrics, including consolidated net sales and operating income, with a significant portion paid in restricted stock to align with shareholder interests.
See it on page 15The Board of Directors is composed primarily of independent outside directors, who maintained near-perfect attendance for the fiscal year ending March 31, 2025.
See it on page 12Human capital development includes specialized training in AI and blockchain, alongside expanded employee support systems like daycare concierge services and flexible work-from-home options.
See it on page 5Strategic shareholdings in partners such as gumi Inc. are being used to expand the company's influence in blockchain, cloud gaming, and the metaverse.
See it on page 17Square Enix has formalized a comprehensive sustainability and governance framework aimed at aligning long-term corporate value with environmental responsibility and human capital development. Central to this strategy is a commitment to achieve net-zero CO2 emissions at Japanese offices and data centers by 2030. This transition is already evidenced by a significant reduction in electricity-related emissions, which fell from 34,320 tCO2 in 2017 to 20,635 tCO2 by 2025. By shifting toward digital sales and renewable energy, the Group seeks to mitigate climate-related risks while modernizing its operational footprint.
The organizational focus on human capital emphasizes creativity and employee well-being through specialized training in emerging technologies like AI and blockchain, alongside "Game Dev Boot Camps." Support systems have been expanded to include flexible work-from-home options, daycare concierge services, and gamified wellness initiatives designed to incentivize healthy lifestyles. These efforts are intended to foster a high-performance culture capable of navigating the evolving digital entertainment landscape.
Governance is characterized by a clear separation between management oversight and operational execution. The Board of Directors is predominantly composed of independent outside directors who maintained near-perfect attendance throughout the fiscal year ending March 31, 2025. Executive remuneration is strictly tied to performance metrics, including consolidated net sales and operating income, with a significant portion of compensation delivered via restricted stock to align leadership interests with those of shareholders. Furthermore, strategic shareholdings in partners like gumi Inc. underscore a commitment to expanding influence within blockchain, cloud gaming, and the metaverse.
