Basic Sustainability Policy and System

The Basic Policy on Sustainability

The Elematec Group aims to enhance corporate value by contributing to creating a sustainable society through business activities under its mission to provide new value by expanding our good relationships as a global manufacturing partner. As with addressing risks, we consider efforts to expand business and tackle social issues with environmental considerations important business opportunities.

Concepts Concerning and Efforts Aimed at Sustainability in General

1. Strategy

Based on the Basic Policy on Sustainability, the Group has identified important issues (materiality) that should be prioritized through business activities in order to address issues facing society and the Group. With this materiality as our foundation, we will formulate strategies that contribute to solving social issues through our business activities and work to contribute to their realization. For our main strategies, please refer to our Corporate Strategy (Medium-term Management Plan), Response to Climate Change, and our Human Resources Strategy.

2. Risk Management

The Sustainability Committee assesses and reviews measures to address risks related to sustainability that are considered to have a significant impact on elements such as the Group's business activities and earnings. Working groups which are formed directly under the committee take specific measures and conduct the monitoring of indicators serving as measures of success for initiatives being undertaken. The committee and working groups will periodically report to the Board of Directors with respect to the state of their responses to risks.

Sustainability Promotion Structure

Governance structure

With regard to specific initiatives pertaining to sustainability, including climate change, the Sustainability Committee reviews, formulates, and manages the progress of company-wide measures. The committee is chaired by the Chief Executive Officer and Chairman of the Board and is composed of  Business Executive Directors, Director of Corporate Division, and Executive Officers(Development). The status of its activities is regularly reported to the Board of Directors. A working group for each material issue and a working group for climate change have been established and operate directly under the authority of the committee. Each working group conducts reviews aimed at the solving of each of the issues being dealt with and conducts monitoring on the status of efforts being undertaken, with the results being reported to the committee on a periodic basis.

Roles

Board of Directors

Receives reports from the Sustainability Committee and supervises its initiatives

Chief Executive Officer and Chairman of the Board

Reports to the Board of Directors and instructs the Sustainability Committee

Sustainability Committee

Performs examination, planning, and progress management for specific initiatives and measures related to sustainability, and reports to the Chief Executive Officer and Chairman of the Board

Working groups

Execution of initiatives and measures decided by the Sustainability Committee