Sustainability

The Group established the Group Sustainability Committee, which is comprised of the Director and Group CFO as chair Lead Directors and Corporate Officers of each business segment, and Outside Directors with skills in risk management, organization/human resources, and communication strategies. The Committee serves as an advisory body to the Board of Directors and comprehensively oversees and promotes sustainability initiatives, and also provides advice to the President and Group CEO (responsible for operations) on the promotion of sustainability management. In the Sustainability Committee, members establish subcommittees for each topic and make the appropriate deliberations.

Sustainability Committee members hold meetings quarterly and as needed (including subcommittees), and discuss/deliberate business-related risks and response policies, and set objectives, as well as assessments on risks and opportunities associated with sustainability related to matters like climate change and human capital. Committee discussion details and decisions are reported to the Board of Directors twice or more annually. The Board of Directors then holds discussion and makes decisions to ensure proper supervision.

The Sustainability Promotion Section promotes and supports general business execution concerning sustainability within the Group, functions as the secretariat of the Sustainability Committee mentioned previously, and is responsible for sustainability-related duties.

(As of June 18, 2025)

The Group has established a comprehensive risk management system to support continual business growth and we use it to identify, assess, and respond to risks that could affect management. Risk Management Subcommittees are established within the Sustainability Committee, which allows for integrated risk management of managerial matters including risks concerning sustainability. Further, the Sustainability Committee reports important matters to the Board of Directors, which provides supervision and guidance to the Committee.

Risks managed by the Group includes: market condition changes, compliance with laws and regulations, digital security, geopolitical risks, natural disasters, and risks to business continuity. We recognize climate change risks as major threats to sustainability of our business and are taking the appropriate measures.

The Sustainability Promotion Section and all personnel assigned to sustainability roles from each group company collect information on risks and opportunities concerning sustainability, identify risks and opportunities, assess them, and then reports the results to the Sustainability Committee. Based on the reports above, the Sustainability Committee supervises the risk management and actions taken towards opportunities conducted within the Group, and gives advice, proposals, and reports to the Board of Directors. They also give advice and suggestions to major Corporate Officers who are not members of the Committee and the President and Group CEO as needed.