Sustainability Management

Our group recognizes the promotion of sustainability management as a key priority and has established a governance framework centered on oversight by the Board of Directors and management by the Sustainability Promotion Committee. This governance framework is stipulated in the “Sustainability Promotion Committee Regulations.”

1. Board of Directors

The Board of Directors receives reports from the Sustainability Promotion Committee on sustainability matters, generally twice a year or as needed, to monitor progress, targets, and results. Furthermore, for important matters such as management strategy, medium-term management plans, annual budgets, and business plans, decisions are made by the Board of Directors after considering climate-related risks and opportunities as necessary.

2. Sustainability Promotion Committee

The Sustainability Promotion Committee is chaired by the President and Representative Director of the Company. Its members consist of the Company's directors, executive officers, and chief operating officers of subsidiaries, selected based on their responsibilities and deemed appropriate for the role. It deliberates and decides on matters such as formulating sustainability management policies, identifying material issues, and setting target metrics.

It reports and makes recommendations to the Board of Directors regarding the outcomes of these decisions, progress against targets, and the status of implementation plans. The main functions, roles, and deliberation items of the Sustainability Promotion Committee are as follows.

• Identifying material sustainability issues, setting targets, and verifying performance
• Determining the need to revise material sustainability issues or established targets
• Examining and implementing measures to comply with sustainability-related laws and regulations
• Deliberating on identifying climate-related risks and opportunities, and conducting scenario analysis
• Assessing greenhouse gas emissions and setting reduction targets
• Formulating and promoting policies, strategies, and measures to minimize identified risks and capture opportunities
• Reviewing and managing budgets necessary to execute the above items
• Integrating into individual business plans of each department and subsidiary, and confirming progress
• Reporting and making recommendations to the Board of Directors

(Secretariat)

The Business Management Department serves as the secretariat for the Sustainability Promotion Committee. It develops concrete plans based on committee deliberations, leads the integration of these plans into the business plans of each department and affiliated company, and advances operations in accordance with the committee's directives.