HAGIWARA ELECTRIC HOLDINGS CO., LTD.

Climate Impact & Sustainability Data (2022, 2024)

Implementing environmental conservation activities as a key management issue, contributing to the preservation of the global environment.
Conducting CSR activities such as volunteer donations and donations of electricity sales revenue.

Increased number of female executives (+1 year-on-year), female general employees (+7 year-on-year), and foreign general employees (+1 year-on-year) in FY2022.
Actively promoting the employment and promotion of diverse personnel, including women, foreigners, and mid-career hires with diverse backgrounds.
Implementing a next-generation leader training program for newly appointed executives.

Transitioned from a board of directors audit system to a committee on audit system in June 2016.
Established a Nomination and Compensation Advisory Committee in July 2019.
Implemented a performance-based compensation system for directors (excluding audit committee members).
Introduced a restricted stock compensation plan and a director stock ownership association to align interests with shareholders.

Ensuring both diversity and effectiveness within the board of directors.
Securing sufficient time for board discussions and improving the quality of discussions.
Improving the skills of directors to enhance the quality of discussions.
Increasing the number and fostering the development of diverse internal personnel.

Actively promoting the employment and promotion of diverse personnel.
Seeking external advice and using anonymous responses to improve self-assessment and analysis of board effectiveness.
Providing opportunities for directors to attend seminars on key themes of the medium-term management plan and skills required by the skill matrix.
Implementing a next-generation leader training program for newly appointed executives.

Frameworks Used: TCFD

Expanding coverage for Scope 1 & 2 calculations across all Group locations
Refining calculation logic for Scope 3 and engagement activity within supply chain

Formulation of Human Capital Management Framework, human resources system overhaul (operational from April 2024)
Appointment of two female Directors
Community contribution: One-day supporter of local sports team, Joint research and academic seminars with university research labs, Company visits for elementary, junior high school, and high school students

Ensuring the diversity of the Board of Directors
Comprising a majority of Independent Outside Directors
Review of cross-shareholdings policy: Partial reduction of shareholdings, Determination on policy for withdrawal from the shareholding association

Medium-term Goals:

Improve the P/B ratio by strengthening profitability and improving capital efficiency by implementing key strategies in the Medium-Term Management Plan, and by focusing on the stakeholder engagement.
Business portfolio management with appropriate risk taking, system development, and strengthening of profitability
Reduction in cost of shareholders’ equity through implementation of financial and non-financial measures
Fostering growth expectations and improving stakeholder engagement through dialogue with the stock market and enhanced information disclosure