Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Partially powered Kizugawa factory with solar power to reduce CO2 emissions

Social Achievements

• Improved work environment to enable better work-life balance for women with children or those providing care
• Actively recruiting mid-career professionals to promote diverse hiring and support business expansion
• Aiming for 3% female employee ratio in design/technical and manufacturing positions

Governance Achievements

• Established Nomination and Compensation Committee in December 2021 to enhance transparency and fairness in succession planning and compensation
• Implemented a restricted stock reward system in June 2019 to incentivize sustainable corporate value growth and enhance value sharing with shareholders
• Regularly conducts surveys to evaluate the effectiveness of the board of directors

Climate Goals & Targets

Environmental Challenges

• Need to improve transparency and fairness in shareholder meetings regarding proxy voting for institutional investors
• Need to further improve information sharing and understanding among independent outside directors
• Need to develop a more robust framework for business portfolio management and disclosure
• Need to further develop a system for evaluating the effectiveness of the board of directors
• Need to further develop and disclose the details of the company's sustainability initiatives

Mitigation Strategies

• Planning to develop guidelines regarding attendance of beneficial owners at shareholder meetings
• Actively considering regular meetings for independent outside directors to enhance information exchange and shared understanding
• Preparing a basic policy on business portfolio management
• Considering evaluation methods for improving the effectiveness of the board of directors
• Implementing sustainability initiatives based on the mid-term management plan, including CO2 emission reduction and human resource development

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Resource Recycling
• Sustainable Global Environment
• Human Capital Development
• Corporate Social Responsibility
• ESG Awareness

Environmental Achievements

• 37% YoY cut in CO2 emissions vs. FY2021 via introduction of solar power (per ¥mn in sales)

Social Achievements

• Active investment in human capital
• Working-style reforms
• Enhancing customer service structure

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Worsening environmental issues
• Resource depletion and difficulty in procuring parts
• Decline in working population
• Diversifying values and working styles
• Digitalization

Mitigation Strategies

• Strong push toward standardization/mass production
• Enhancing customer service structure
• Continued strengthening of global development
• Pursuing smart factory technologies
• Business development that embodies market needs
• Expanding human capital
• Investment in factory infrastructure
• Expansion of after-sales service structure
• Technological development and business development for next-generation growth areas
• Investment in systems to improve operating efficiency
• R&D and equipment investment to reduce environmental load

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed