FrankPR Inc. Sustainability Report 2026

Editorial Policy

This report is FrankPR Inc.'s (hereinafter "the Company") annual document, prepared to communicate our approach to sustainability—along with our activities, results, and targets—to external stakeholders in a structured way. It builds on the Company's Sustainability Declaration (established June 2026) and references the framework of the SDGs (Sustainable Development Goals) and the concept of CSV (Creating Shared Value: management that simultaneously solves social issues and creates economic value).

• Figures reflect only confirmed results. Metrics that are not yet finalized are clearly marked "under development." No estimated values are used.
• Third-party awards, certifications, and media coverage are included as objective evidence of our work.
• Activities of "Raffaello," the ethical leather brand operated by the Company, are reported as the Company's own activities.

1. Sustainability Highlights

The Company places the resolution of social issues at the very purpose of its business, through ethical manufacturing and support for corporate communications. Key results for this period are as follows.

2. Message from the President

My commitment to sustainability has its roots in my graduate studies in urban and regional planning, where I confronted the challenges of poverty and education in developing countries. Wanting to turn learning into practice, in 2014 I launched the ethical leather brand "Raffaello," and through production in Bangladesh I have supported the economic independence of women and people with disabilities.

Since founding FrankPR Inc. in 2018, I have expanded this philosophy beyond a single company's manufacturing—through public relations and information dissemination for the AI era (LLMO: optimization so that generative AI correctly cites and recommends a company's information)—into building mechanisms that ensure the value of socially contributive companies is communicated accurately to society. Creating a state in which companies with excellent practices are evaluated fairly, regardless of size, is what we see as our social role.

The Company is a small firm run by two directors. Precisely because of this, we do not separate management decisions from our sustainability policy; we return profits to society, do not turn away from objective third-party evaluation, and continuously verify our efforts. We hope this report helps you understand our journey.

Maki Matsuo, Representative Director & President

June 2026

3. Company Profile and Two Businesses

The Company operates two businesses of differing nature in an integrated way, with the resolution of social issues at its core.

Two Pillars of Business

Company Overview

4. Our Approach to Sustainability Management

Purpose

The Company aims to realize "a world in which companies that take sustainability seriously are evaluated fairly by society, regardless of size." We create social value ourselves through ethical manufacturing, and we extend that practical know-how into communications support for companies that share the same aspirations.

Why We Engage

Our sustainability is not an activity placed outside the business as CSR (Corporate Social Responsibility). Raffaello's revenue becomes the funding source for employment and education support in developing countries, and our communications-support business makes the visibility of sustainable companies its very product. In other words, the growth of the business is directly linked to the expansion of social value (see Chapter 8, "CSV Structure").

How We Identified Materiality

The Company identified its material issues from three perspectives—(1) strength of relevance to the business, (2) magnitude of social impact, and (3) the degree to which the Company can make a distinctive contribution—and organized them into four areas: "Environment," "Social," "Partnership," and "Economic Value (Creating Shared Value)."

5. Materiality and Value Creation Overview (MECE)

We organize our contribution into four areas, with no gaps and no overlaps.

Value Creation Logic (Input → Activity → Outcome → Impact)

6. Priority Areas: Activities and Results

Area 1 — Environment: Decarbonizing the Product Lifecycle

Relevant SDG: SDG 12 (Responsible Consumption and Production)

Challenge: Leather manufacturing tends to carry a high environmental load in tanning and production processes. If we are to call ourselves ethical, we must fulfill our responsibility with concrete figures on the environmental side, not only the social side.

Our solution: For the Raffaello brand, we adopted low-carbon leather with a redesigned manufacturing process and obtained a quantitative evaluation using a third-party indicator.

Structure of environmental impact:

• By making per-product CO2 emissions visible and backing them with third-party certification, we turned reduction from a "claim" into "evidence."
• Decarbonization can be presented to customers as a criterion at the point of purchase.

Definition: The DECARBO score is an indicator that visualizes and certifies the degree of decarbonization of a product or service.

Area 2 — Social: Independence Support and Education in Developing Countries

Relevant SDGs: SDG 1 (No Poverty) / SDG 4 (Quality Education) / SDG 5 (Gender Equality) / SDG 8 (Decent Work and Economic Growth) / SDG 10 (Reduced Inequalities)

Challenge: In developing countries, there is a structure in which women and people with disabilities are easily left out of stable work and educational opportunities.

Our solution: Through Raffaello's production in Bangladesh, we create employment and, by continuing fair orders, support economic independence. We also allocate a portion of net profit to education support for children.

Structure of social impact:

• Beyond "donations," we combine support that leads to independence—"employment through continuous ordering."
• The design is such that as sales grow, the funding for employment and donations also increases.

Area 3 — Partnership: NPO Collaboration and Making Efforts Visible

Relevant SDG: SDG 17 (Partnerships for the Goals)

Challenge: There are limits to what a small business can achieve alone on social issues. Efforts based solely on self-declaration also lack objectivity.

Our solution: For education support we collaborate with local and domestic NPOs, and we verify the validity of our efforts through external awards and certifications.

Area 4 — Economic Value: Support for Corporate Sustainability Communications

Relevant SDG: SDG 17 (Partnerships for the Goals)

Challenge: Even companies with excellent sustainability practices cannot drive evaluation or behavioral change if those practices are not communicated correctly to society, customers, and generative AI. Small and medium-sized enterprises in particular have limited communication resources.

Our solution: Through PR-driven LLMO services, AI adoption support, and the operation of an SDGs media site (franksdgs.com), we create a state in which corporate sustainability information reaches society and generative AI correctly. Our own practice of ethical management underpins the persuasiveness of this support.

Structure of economic-value impact:

• Our service provision (economic value) is itself the "social visualization of sustainable efforts" (social value).
• Our own practices (Raffaello, donations, certification) provide the evidence base for advising the companies we support.

7. Contribution to the SDGs (17-Goal Mapping)

The Company contributes with a focus on goals where it actually has activities. We do not make a formal declaration of "contribution" to all 17 goals.

Primary 17-Goal Mapping

Priority Goals (★★★)

Goals Excluded from Priorities (Avoiding SDG-Washing)

8. CSV (Creating Shared Value) Structure

Our business is structured so that the growth of economic value is directly linked to the expansion of social value.

Main CSV: "Turning practiced ethical management into communication power"

The Company practices ethical manufacturing itself (creating social value) and repurposes that practical know-how for corporate communications support (spreading social value). Being a practitioner ourselves is the source of credibility and differentiation for our support business.

9. Third-Party Evaluation

Our efforts are accompanied by objective evaluation in the form of third-party awards, certifications, and media coverage.

Awards and Certifications

Recognition in Sales

Media Coverage

J-net21 (SMRJ), BS Fuji "Shiritai! SDGs," The Nikkei (August 17, 2023), NewsPicks, and others.

10. Quantitative Data

Confirmed Data

Data Planned for Future Collection and Disclosure (Under Development)

11. KPIs and 2030 Roadmap

Key KPIs and Medium-to-Long-Term Targets

2030 Roadmap

12. Governance and Promotion Structure

The Company's sustainability promotion is carried out by a whole-company structure in which the Representative Director & President is the chief responsible officer and the Director & CMO oversees operations. Precisely because we are a small organization, we link management decisions directly to our sustainability policy and execute quickly.

The objectivity of our efforts is ensured by external third-party evaluation. We position the screening of the Japan SDGs Award, the screening of the Ministry of the Environment Good Life Award, and the DECARBO score certification as mechanisms for verifying our own efforts. This report and the Sustainability Declaration are reviewed once a year and revised to reflect progress and results.

13. Stakeholder Engagement

14. Corporate Information and Afterword

Corporate Information

Afterword

This is the Company's inaugural report. We have taken care to communicate our efforts without exaggeration, dividing them into "results," "third-party evaluation," and "targets yet to be set." Precisely because we are a small company, we frankly show both what we can do and what we cannot yet do, and we will close that gap through annual updates. In the next issue (June 2027), we will work to quantify the indicators marked "under development" in this issue.

This report is consistent with the Sustainability Declaration (established June 2026). Indicators not yet finalized are marked "under development" and will be updated once confirmed.