December 22nd, 2021

Basic Sustainability Policy of the Osaki Electric Group[Group’s Direction for Sustainability]
With a vision to become a “Global Energy Solution Leader,” the Osaki Electric Group will contributeto sustainable development of society and conserving environment through its energy-solution
technologies by collaborative efforts with its stakeholders, and pursue its own sustainable growth.

[Materiality for Sustainability]
Taking diversifying social issues and the Group's business characteristics into account, the Osaki
Electric Group has identified material issues that it will prioritize. By strengthening businessactivities in its areas of priority, we aim to realize a sustainable society and achieve stable growth
for the Group.

1. Minimize environmental impact

The Osaki Electric Group develops and deploys products and services that will minimize negative
impact on environment. We are also committed to take measures to reduce the impact to theenvironment through our business activities.

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Contribution by smart meters
Smart meters are important infrastructure equipment with data collection and control functions
and being installed in all over the world. The Osaki Electric Group contributes to improving
energy efficiency by providing technologies for measuring and controlling through smart
meters worldwide.

Smart Meters
Promoting solutions to support decarbonization
Utilizing O-SOL, total solutions including an energy management systems (EMS) and smart
metering systems (SMS), we will contribute to reducing the environmental impact of society by
Visualization of CO2 emissions, support for the planning of CO2 reduction plans, andimplementation of plans to reduce CO2 emissions.
Promotion of Research and Development
Research and Development Center in Japan pursues development of smart meters that
contribute to more efficient use of electricity in society. The Group also collaborates with otherorganizations actively through open innovation to contribute to decarbonization.
Furthermore, we are developing total solution services in Oceania, that combine smart metersand head-end systems for better energy consumption efficiency. We aim to deliver the totalsolution services to other regions in the future.
Reducing Greenhouse Gas Emissions at manufacturing sites
We promote the reduction of greenhouse gases emitted particularly at manufacturing sites inand out of Japan. We declared our commitment and support for the Climate-Related Financial
Disclosure Task Force ("TCFD") recommendations. We will strengthen our organizationalframework to follow the financial disclosure guidelines recommended by the TCFD
recommendations.

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2. Contributing to sustainable cities and communities

Toward contributing to sustainable cities and communities in Japan, we are addressing
particularly the issues related to labor shortages due to the declining birthrate and aging
population, and building disaster-resilient cities. Overseas, we recognize the stable supply ofelectricity as issues to address and we are committed to building the basic power infrastructure
worldwide by delivering smart meters. The Osaki Electric Group provides solutions tosustainable cities and communities through products and services based on its measuring andcontrolling technologies.
Creating Value-Added Smart Meters
Smart meters are equipped with reliable communication protocols and are remotely operable
which enable smooth power recovery. These functions can be applied to in the event of adisaster, such as prevention of electrical fires and spotting locations of power outages. We areworking to develop smart meters to create new added value.
Promoting Smart Building Systems to Realize Labor-saving Operations
We will contribute to the realization of a sustainable society by introducing systems that
contribute to the efficiency of facility management operations (facility inspections and facilitysecurity) by improving the level of service, in addition to operational efficiency improvements,
such as the automated meter reading system (improving the efficiency of tenant meter reading)and support for the preparation of reports on environmental laws and regulations, which wehave been developing in the past.
Cooperating with Partners
Osaki Electric launched NEXT 100teX Lab, an open laboratory, to promote collaboration
across industries, university laboratories, local governments, and ventures. Together with ourpartners, we aim to create new solutions based on our development technologies for electric
power measurement and control equipment in aim to realize sustainable cities and communities.

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Contributing to Global Power Infrastructure
EDMI, a subsidiary of Osaki Electric, is expanding its business globally, including in Oceaniaand Europe as well as in Asia and the Middle East. We will further expand our solutions
services for smart meters and software, and contribute to the stable and efficient supply ofelectricity worldwide.

3. Respect for human rights

The Osaki Electric Group is committed to ensuring that we do not violate human rights and that
we are not complicit in the violation of human rights through our group or our supply chains.
We support and respect international codes of human rights, including the United Nations
International Bill of Human Rights, the United Nations Global Compact, and the ILO
Declaration on Fundamental Principles and Rights at Work. The Group states in "Osaki Group’sCharter of Corporate Behavior" that the Group shall “conduct business that respects the humanrights of all persons and take no part in any discriminatory action at all phases of ourbusinesses.” We conduct employee training and seminars on human rights, while conducting
surveys of our business partners on human rights. In addition, we declared the statement on
modern slave acts in the United Kingdom and Australia, and work to prevent human rights
infringement.

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4. Creating a diversified workplace and fostering social issue-solving
cultureThe Osaki Electric Group emphasizes the education of its employees for the development ofcorporate culture where all employees have high moral standards for environmental conservationand social issues and are actively pursuing solutions for these issues. We are committed toproviding a secure and safe work environment where diversity is mutually recognized and all
employees can work to their fullest capabilities.
Establishment of a workplace environment that recognizes and accepts differences
We promote the development of workplace environments and organizations so that employeeswith diverse attributes, values, and ideas can work comfortably and safely. We believe that theactive participation by diverse workforce contributes to the flexible resolution of important
issues. In Japan, we are focusing on establishing a flexible work system where employee canchoose various workstyles according to their lifestyles and life events. Overseas, while diversity
in workplaces is permeated, we are striving to elevate quality of work environment.
Cultivating corporate culture with rich ideas and high morals
We encourage employees to gain a variety of experience and knowledge so that they can
respond flexibly and conceptually to changes and issues in society. In Japan, we provide
opportunities for employees to step up in their career and gain new challenges and experience.
We support employees' autonomous career advancement through a variety of training programs
and job rotations. At the same time, employees are provided with flexible work styles and aunique leave system. Overseas, as our headquarters is based in Singapore and there aresubsidiaries in Australia, UK, Malaysia, and other countries, we respect cultural diversity, andprovide a work environment where highly specialized professionals, such as sales, R&D,operations, and administrative, can demonstrate their capabilities. We are also working toinvigorate intra-group communication to strengthen cooperation among different divisions.

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Promoting Health Management
Osaki Electric promotes health and productivity management by acquiring certification as anExcellent Health and Productivity Management Corporation (Large Corporate Group). We
conduct ongoing activities, such as holding health seminars for employees and endorsing eachproject, such as the "Action for Companies Promoting Countermeasures against Cancer."

5. Strengthening corporate governanceIn order to fulfill its responsibilities to stakeholders based on its corporate philosophy, the Osaki
Electric Group strives to strengthen its Group management foundation and aims for sustainablegrowth.
Corporate GovernanceWe recognize that strengthening corporate governance is an important management issue inmaximizing sustainable corporate value. We continue to make fair management judgment withfurther increase of management efficiency and transparency.
Risk Management
In ensuring the sustainable development of our business, we prevent and mitigate risks, andpromote risk management to minimize damage from crises and ensure rapid recovery.
ComplianceTo strengthen the governance system, the Group recognizes the importance of all employees tocomply with laws and regulations and act with a high sense of ethics. To ensure that allemployees are aware of their actions, the Osaki Electric Group promotes and provides
compliance manuals and a group help line system.
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[Identification of Key Issues and PDCA
(Plan-Do-Check-Action) Processes]
STEP 1: Selection of social issues
K
We selected social issues that we should address from the perspectives of importance to the Groupand high societal demands based on the SDGs, Sustainable Development Goals.

STEP 2: Identification of Material IssuesK
Of the social issues selected, we identified material issues that we should prioritize based on ourstrategies in the Mid-Term Management Plan.
Developing value-added
smart meters and expanding
energy solutions

Developing new products
and services

Expanding Global Business

Building resilient group
operations

1. Minimize environmental
impactContributions by smartmetersPromoting solutions tosupport
decarbonization
Promotion of R&D
2. Contributing to sustainable
cities and communities

Creating Value-Added
Smart Meters

2. Contributing to sustainable
cities and communities

Promoting Smart
Building Systems toRealize Labor-saving
Operations

Cooperating withPartners

2. Contributing to sustainable
cities and communities
Contributing to Global
Power Infrastructure

3. Respect for human rights
4. Creating a diversified
workplace and fosteringsocial issue-solving culture
Establishment of aworkplaceenvironment thatrecognizes and accepts
differencesCultivating corporate
culture with rich ideas
and high morals
Promoting HealthManagement
5. Strengthening corporate
governanceCorporate GovernanceRisk ManagementCompliance

STEP 3: Validation and approval
KOsaki’s Board of Directors has discussed and approved the selection of social issues andidentification of material issues.

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STEP 4: PDCA management review
The Board of Directors monitors the progress and makes necessary adjustments to the Basic
Sustainability Policy based on trends in social issues and changes in the business environment.

[Structure to Promote]
The Osaki Electric Group promotes all sustainability-related activities through SDGs
Promotion Project, headed by the Executive Vice President (Representative Director).
In April 2022, we are considering the establishment of the Sustainability Promotion
Committee in place of SDGs Promotion Project. Our group's current sustainability
promotion structure is described in below.

Board of Directors

President & CEO (Representative Director)

SDGs Promotion Project

DivisionsGroup Companies

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Communications

Stakeholders