Sustainability Governance Structure

Our group recognizes the promotion of sustainability management as a key issue and has established a governance system centered on oversight by the Board of Directors and management by the Sustainability Promotion Committee. This governance system 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, and monitors the progress of initiatives, as well as targets and achievements. Furthermore, important matters such as management strategy, medium-term management plan, annual budget, and business plan are decided upon 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 our President and CEO, and its members consist of directors, executive officers, and chief operating officers of our subsidiaries, among others, who are deemed appropriate based on their respective duties. The committee deliberates on the formulation of sustainability management policies, the identification of key issues (materiality), the setting of target indicators, and reports and makes recommendations to the Board of Directors regarding the matters decided, the results against the targets, and the progress of the implementation plan. The main functions, roles, and matters of deliberation of the Sustainability Promotion Committee are as follows:

• Identifying key sustainability issues (materiality), setting targets, and verifying performance.
• Confirmation of whether changes are necessary to key sustainability issues (materiality) and target settings.
• Consideration and implementation of measures to comply with laws and regulations concerning sustainability.
• Discussion on identifying climate-related risks and opportunities, and scenario analysis.
• Understanding the current state of greenhouse gas emissions and setting reduction targets.
• Formulating and promoting policies, strategies, and measures to minimize identified risks and seize opportunities.
• Review and budget management necessary to implement the preceding items.
• Translating the plan into individual business plans for each department and subsidiary, and monitoring progress.
• Reports and recommendations to the Board of Directors

Business Management Department, acting as the secretariat for the Sustainability Promotion Committee, is responsible for formulating specific plans based on the committee's deliberations, leading the implementation of these plans into the business plans of each department and affiliated company, and promoting operations based on the committee's instructions.