Mitsuuroko Group Holdings Co., Ltd.
SUSTAINABILITY REPORT 2021

Introduction

Philosophy/Vision

Environment

SocialGovernance

ESG Data

For the Realization ofa Sustainable Society
As stated in our management philosophy, the Mitsuuroko Group is committed to contributing
to the development of a bright future, a beautiful planet, and an enriched society, while fulfilling
our role in realizing a sustainable society through our energy-based business, from thecustomer s perspective as a Lifestyle Producer.

02

Founding principle of continually taking up challenges
One of the founding principles of the Mitsuuroko Group is that“everyone with a connection to Mitsuuroko is family, and thepath for that family to prosper must be chosen even if it isdifficult and challenging.” This is an important principle for ourcontinual pursuit of challenges and it exists so that the
Mitsuuroko Group can continue to shine for the next 100 years.

Up to now, the Mitsuuroko Group has continued to growwhile sensing changes in society and our customers andchanging ourselves as we look ahead to the future. In order
to continually adapt to the environment of the times, we willcontinue to be a corporate group that takes up challenges,
not fearing failure but learning from it.

忍而和斉家上策
勤与倹創業良図Patience and harmony serve as the key to a well-ordered family.
Hard work and frugality constitute a positive basis for business startup.
First President Tatsusaku Tajima

Management philosophy

Corporate message

We at the Mitsuuroko Group are working to spread natural energy forpeople and environmentally friendly lives while currently providing a stablesupply of LPG and other energy sources.
Since its founding in 1886, the Mitsuuroko Group has been working tosupport peopleʼs lives every way it can by supplying energy that meetscontemporary needs and providing services related to everyday lifestyles.
This involves everything from coal to briquettes, charcoal briquettes,
petroleum products, and LPG. Today, we are subject to major challenges
in terms of remaining mindful of the global environment and addressing
energy shortages. As such, we are fully committed to promoting the
spread of natural energy sources that are not dependent on traditional
fossil fuels, as well as energy storage and other next-generation energy
systems.
The Mitsuuroko Group will remain committed to helping each and every
one of our customers lead enriched lifestyles as we firmly set our sights on
resources and the environment for the sake of our children and our planet.

We provide people and communities with products thatempower lifestyles and services that lead the way into
the future.

As a Lifestyle Producer,
we consistently conduct ourbusiness with integrity and fromthe customer s perspective.

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

01

Introduction

Table of Contents/Editing Policy/Company Profile

Table of Contents
Philosophy/Vision

03

Table of Contents/Editing Policy

04

Company Profile

05

Message from the President

09

Materiality
Stakeholder Engagement

13

E (Environment)
15

Environmental management

30 Promotion of resource cycle

16

Environmental risk management

30 Supply chain

17

Climate change initiatives

S (Social)
33 Stable supply of energy/electricity

40 Health-focused management

Security and quality management
35 for customers

43 Diversity and inclusion
45 Human resource development

37 Disaster prevention measures

46 Local communities

39 Respect of human rights
49

11

G (Governance)
51 Corporate governance
55 Compliance71

We will continue to provide energy that makes life sparkle.
Energy Solutions
Business

Appropriate information
63 disclosure

60 Cyber security

64 Supply chain management

62 Personal information protection

65 GRI Standards table

ESG Data

Foods
Business

We live in an age of shifting from “energy conservation” to “energy creation.” As a power
generation business operator that uses diverse renewable energy sources and a retailelectricity business operator, we aim to “improve the global environment (reduce CO2
emissions),” “increase energy self-sufficiency,” and “coexist with local communities.”

Exciting the future with the delicious.

The scope covers 51 companies*, including Mitsuuroko Group Holdings Co., Ltd., major business companies,
subsidiaries, and affiliates. Reporting scope is clarified for items that vary from this overall reporting scope.
* 44 consolidated subsidiaries and 7 entities accounted for using equity method (as of December 31, 2021)

Reporting period is FY2020 (from April 2020 to March 2021). However, some information in and after April 2021
is also included.

In addition to development and leasing of residential
homes, office buildings, and commercial facilities, we offer
proposals to expand the range of peopleʼs living and aim
for harmony between regions through business.

Results meeting needs to accelerate business.
OthersWind power generation, biomass power
generation, mega solar power generation,
electric power wholesale to power companies,
and electric power retail sales to general
consumers
Manufacture and sale of beverages, operation ofrestaurants, and in-facility stalls and cafeterias, operationof DELICATERIA (delicatessens directly under Mitsuuroko
Grocery) and voluntary chain stores, operation of burger
restaurants, and fresh bakeries and cafés, and more.

We are providing enriched lifestyles to everyone byoperating a beverage business, shop & restaurant
business, bakeries, and cafés.

Connecting to a future that connects daily life.
Living & Wellness
Business

Sales of and logistics services for LPG,
city gas, petroleum, new energy equipment,
and more

We provide total solutions for the present and future ofbusinesses and powerfully support the streamlining of all
businesses.

Leasing of office buildings, condominiums,
and other buildings and operations/management of commercial complexes,
and more

Leasing of office equipment, payment
collection, system development,
insurance brokerage, Overseas Business,and more

Company information of Mitsuuroko Group Holdings Co., Ltd.
Net sales by segment

Company
nameMitsuuroko Group Holdings Co., Ltd.

Main businessHolding company(Groupʼs business strategy and management)

Headquarters

3-1-1 Kyobashi, Chuo-ku, Tokyo 104-0031, JapanDateestablishedMay 10, 1926

Capital¥7,077 million

GRI Sustainability Reporting Standards
Guidelines
referenced

GRI Standards Table“Environmental Reporting Guidelines (2018)” by the Ministry of the Environment

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Report reliability

Non-financial
information

Contact

Financialinformation

Information
disclosure media
structure

Some environmental information in this report has been assured by third party institutions to ensure objective
reliability of information.

Investor Relations site of
Mitsuuroko Group Holdings
Timely and appropriate disclosure of financial/business information and decisions/facts

Sustainability Report

Business Report (Integrated Report)
Mitsuuroko Report (Shareholder Correspondence)
Simple explanation of the value creation
story and business situation

Millions of yen

Assets by segment

Stakeholders(Shareholders, investors,
institutional investors)

Number of
employees

17 / Consolidated: 1,534 (as of March 31, 2021)

Disclosure of comprehensive ESG information

Mitsuuroko Group Holdings Co., Ltd., 3-1-1 Kyobashi, Chuo-ku, Tokyo 104-0031, Japan
Website (inquiries) https://www.mitsuuroko.com/contact/

Total net sales
226 , 462

Group
companies

Consolidated subsidiaries: 44 companies (36domestic companies, 8 overseas companies)
Entities accounted for using equity method: 7
companies (7 domestic companies)(as of December 31, 2021)

Energy Solutions Business
110,736
Power & Electricity Business
99,380Foods Business
11,351
Living & Wellness Business
2,195
Others2,798

Total assets
94 , 290
Millions of yen

Energy Solutions Business
43,558
Power & Electricity Business
17,212
Foods Business
4,603
Living & Wellness Business
12,154
Others
16,76104

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

Responding to contemporary needs, we continue to remain close
to our customersʼ lives and bring happiness through energy.We
are utilizing the Group network to provide energy and enriched
lifestyles.

Next-generation energy that brings comfort and ease to daily life.
Power &
Electricity BusinessThis document was prepared while emphasizing the objective to express specific topics, thoughts, and initiatives, etc.
related to the Mitsuuroko Group s Environment, Social, and Governance (ESG).
In its editing, we referred to the assessment items of major ESG rating providers, in addition to the Environmental Reporting
Guidelines (2018) by the Ministry of the Environment and the GRI (Global Reporting Initiative) Standards, the international
reporting guidelines.
In addition, the Company is continuing to enhance the ESG related information each year that is determined to be important.

Reporting period

ESG Data

Mitsuuroko Group s business areas

Editing Policy

Reporting scope

Governance

The Mitsuuroko Group is a corporate group that primarily provides environmentally friendly energy and lifestyle-related
services with a mission to contribute to enriched lifestyles.
Our businesses are the Energy Solutions Business, the Power & Electricity Business, the Foods Business, theLiving & Wellness Business, and Others, which include leasing of office equipment, insurance brokerage,
operational and system support, and Overseas Business.

Contributeto enriched
lifestyles

03

SocialCompany Profile
31

01

Environment

Introduction

Message from the President

Environment

SocialGovernance

ESG Data

As an environmentally adaptive
company, we produce sustainableenriched lifestyles.
Responsibility to express to stakeholders

Representative Director, President
and Chief Executive Officer

Kohei Tajima

High environmental awareness that the
Mitsuuroko Group is proud of
The Group took steps to meet the listing standards
for the “Prime Market” in the new categories of Tokyo

Society changing to a common sense ofvalue focused on sustainability
Through innovations in science and technology, we
have come to realize for the first time that our planetis deteriorating. It is now possible to not only calculate
CO2 emissions, but also to forecast the future. We
feel that this rapid progress in technology is well
timed with the rising interest in sustainability. I take an
optimistic approach to things every day. I also take aside that is very realistic. The current global
population is 7.8 billion people and we are almost
certain to surpass 9 billion at some point. Rather than

06

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

05

Looking back at the history of the Mitsuuroko Group,
we transported and sold coal at our founding in
1886. Subsequently, we began producing briquettes
and charcoal briquettes, from the Taisho era into theShowa era, as the main fuel at the time was charcoal,
lumber, and other wood products. However, cutting
down too many trees would cause deforestation andharm the mountain environments. Therefore, underthe mindset of planting trees to enrich mountains andshaping rivers to prevent flooding, the first andsecond Presidents sought to protect the mountains
by creating solid fuel that served to conserve thenatural environment and be more convenient thancharcoal and lumber. While there was no focus on
reducing CO2 emissions at the time, we already werevery conscious of the environment 100 years ago.
There are two major reasons for issuing thisSustainability Report. The first is external reasons. As
ESG and SDGs have become everyday words, and
ESG funds gain the attention of investors, the worldis shifting toward sustainability. Because we are apublic company, we have felt an increasing need torespond to the growing interest in non-financial
information and financing perspectives. The second
is internal reasons. We identified six important issues(materiality), raised main target management
indicators (KPIs) to target, and established qualitativeand quantitative targets. We felt the need to create
this tangible report because there was no opportunity
to collect data for each ESG area in the past.
In order to continue creating new value with ourdiverse stakeholders and contribute to enriched
lifestyles and building a society, the Group takes on
various issues. Since we are engaged in positive
initiatives, we need to also strive to transmit these
efforts to the world. In growing from a domestic
company to a global company, an international
understanding is needed. This understanding will
deepen with increased information volume and boost
our engagement with various stakeholders.

Stock Exchange, Inc. However, considering market
trends and the speed and condition of changes toour business environment, we decided to select the“Standard Market” instead. Companies listed on theStandard Market are not required to give reports
based on the TCFD recommendations. However, we
are making proactive disclosures related to climatechange and the environment. The reason for this isthat the TCFD recommendations share the samecommon sense of values we have upheld since thefounding of the Company.
The Mitsuuroko Group has grown as an“environmentally adaptive company” that meets theneeds of the times. In this age of decarbonization, thevolume of coal and briquettes handled is falling
rapidly. The nature of our business is long-term,
ongoing transactions. As such, we cannot survive as
a company without maintaining a long-term
perspective of environmental considerations andsustainability. Therefore, we intend to always maintaina high environmental awareness.
For example, while renewable energy has gained
attention recently, we were relatively early in entering
the mega solar market, beginning operations of
Suigo-Itako Solar Power Plant and Futtsu Solar
Power Plant in 2014. We also began operation ofTeshio Wind Power Plant in October 2001. It typicallytakes at least 5 years to commence the operations ofa wind power plant. It means we started construction
around 1996 . Most do not know our history of
looking ahead and entering the renewable energy
business far before the calls for carbon neutrality. We
plan to proactively share such information in the
future.

Introduction

Message from the President

taking this as a negative, I believe we should consider
how each and every person can live enriched
lifestyles. If we face a problem, we should come up
with a solution rather than engage in conflicts.
We must act fast to save our planet.
I expect students to be taught about sustainability
and they will eventually become part of company
management. These small initiatives will lead toactivities that bring harmony to our social lives andcyclical structures of our planet in the decades tocome.
I prefer to develop a new field than to compete formarket share. While competing for market share isneeded, an increase in market share is simply a resultof our efforts being chosen by customers. A bright
future is certainly preferred over a dark one. French
philosopher Alain once said, " Pessimism comes fromtemperament, optimism from will". As I am in aposition of responsibility, I would like to use my will todraw a bright future.

Identify six materiality items in a simple
and organic way
Identifying materiality is not a goal. Rather, it is important
for all employees to engage in efforts together andachieve our targets. In identifying materiality, I
emphasized being simple and organic. I have always
mentioned the concept of “SOLA.” This stands for
Simple, Organic, Live, and Advance. There is no point insetting difficult targets if we cannot take efforts toaddress them. In order for all employees to remainaware of materiality, it is necessary to make themsimple to remember, reach, participate and understand.
As a process, we first identified social issues thatshould be considered, evaluated their importance tostakeholders and the Group, and finally set our Grouppriorities. By discussing these issues, we narrowed
down the scope such that, in the light of diversity,
even foreign nationals who can only speak simple
Japanese are able to understand.
We have employees who use various workstyles in
our workplaces. Many of the materiality items wehave identified are universal topics so they will notchange frequently. However, I would like to review
them occasionally to meet the needs of the times.

Keep a close eye on development in various
fields and realize carbon neutral by 2050
Carbon neutral means virtually zero emissions,calculated by subtracting the amount absorbed byplants, etc. from CO2 emissions. In other words, itaims for overall neutral rather than eliminating all CO2

SocialGovernance

ESG Data

emissions. I believe that technological innovations will
make this possible a little earlier than 2050. In orderto achieve this, we must boost our consciousness
toward new technology and invest in theimplementation of cutting-edge technology. We areoperating the Foods Business in addition to theEnergy Solutions Business. In the food technology
field, there have been incredible advancements, suchas environmentally conscious food products. We willcontinue to observe the developments across a wide
range of fields. I also believe that it is important that
we take the additional efforts to connect with thesedevelopments.

Thoughts related to “health-focused management”
and “diversity,” and human capital
Because many young people are relatively healthy,
they do not reflect on their own health. However,observing the athletes competing in the Olympics, I
really feel the importance of maintaining physical andmental health as even the slightest weakness incondition can prevent them from performing at theirbest.
We in management are doing our best to “manage
the company,” but we havenʼt been able to “manage
health.” Delving into health focused management,
we reach the topic of health and productivity
management, in which we manage health andproductivity of employees concurrently. As investingin health leads to improved productivity, there is acorrelation between health and productivity. We canfurther improve productivity by focusing more on
elements of preventive care rather than symptomatic
treatment. Workstyles have changed with the rise of
remote work resulting from the novel coronavirus
pandemic. As workstyles become more varied, ourmeans of health management have also become
diverse. Because of greater awareness of healthwithin the company, I believe the productivity of theGroup will increase.
Diversity is closely tied to mental health. In the past, I
had lived in the US, Brazil, and Malaysia. In thesemelting pot countries, society is formed by people ofdifferent races, religions, and cultures accepting one
another. As an isolated island nation, I feel that Japan
has not reached the same level of understanding of
foreign people. I felt the power of diversity in Japan atthe 2019 Rugby World Cup. Of the members of theJapanese team, approximately half were originallyforeign nationals. I was touched to see them cometogether under the mindset of “One for all, All for one”
and reach the final eight for the first time. I feel the
Mitsuuroko Group can become our strongest byforging a bond like the Japanese rugby team.
Communication skills are vital to achieve this. I actually
prefer moving forward while facing unexpected events
rather than see everything go according to plan. Many
opinions form, clash at times, and ultimately reachconsensus through communication. I would like to see
this type of organization.

In order to continue being “a Lifestyle
Producer”
I believe that an enriched lifestyle is a stress-freelifestyle. Here, stress means friction, sacrifice,obstacles, etc. in the living environment rather thanmental stress. For example, in 1950 s, Japanesehouseholds used wood fires to cook food and heatwater for baths. As this transformed into briquettes
and gas, the time spent in the kitchen was cut into athird. The time spent travelling from Tokyo to Osaka isalso gradually getting shorter. It took approximately
14 days on foot in the Edo era. However, in the Meiji
era, this was reduced to 20 hours by train. Now, it
takes two and a half hours by bullet train. Once themaglev bullet train is completed, it will only takearound one hour.
In this sense, I feel that an enriched lifestyle is one
with no or little stress experienced on a subconscious
level in life, apart from financial wealth or need. It isbetter not to have a society that is built on sacrifices.
In the end, a society with a stress-free cycle is ideal.
Even though enriched lifestyles evolve over time,theMitsuuroko Group aims to change our role alongwith this to continue being “a Lifestyle Producer.”

From “good to have” to “difficult not tohave”
When we start each business, we want to provide a
product or service that is good to have. Our ultimate
target is to transform this product or service into
something that is “ difficult not to have. ” Whilesomething may feel “good to have” at first, if a user
becomes accustomed to this, in time they may wakeup one day and discover that it is really difficult to live
without it. We will continue providing these sort ofproducts and services.
I advocate “changing the company by 3% yearly.” By
doing so, we can change 100% in 30 years. In 30
years, the management and employees will becompletely different and the company will become acompletely different company. Management leaves
once they fulfill their roles, but the company exists
forever. Five years from now in the year 2027 we willcommemorate the occasion of a full century since theMitsuuroko Group was founded. We will continue totreasure the “ Mitsuuroko identity ” and strive toachieve a form that meets this vision without fail. We
will continue to work hard for what we can do now.
As such, the Mitsuuroko Group will remain committed
to helping each and every one of its customers leadenriched lifestyles as the Group firmly sets its sights
on resources and the environment for the sake of ourplanet.

08

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

07

Environment

Introduction

Materiality

Environment

SocialGovernance

ESG Data

Materiality identification process
STEP

1

To continue creating new value with our diverse stakeholders as well as to contribute to enriched lifestyles andprosperity of society, the Company has identified six important issues (materiality) prioritized from among all social
issues, taking into consideration the business of the Company in long-term view.

The importance to stakeholders is evaluated for social issues that should be considered based on theratings of ESG rating providers and the social issues focused by client companies.

STEP

Evaluation of importanceto the GroupThe importance is evaluated for social issues that should be considered in terms of the risks
and opportunities the issues present to the Group as a whole and to each business.

STEP

Identification of the Group spriority issues (materiality)

After the social issues are evaluated based on the
two axes, “importance to stakeholders” and“importance to the Group,” the six priority materiality
items are identified following a discussion andresolution of the Board of Directors.

3

2

Contribution to local communities

The business operation of the Mitsuuroko Group has been supported bymany stakeholders until now. Within these stakeholders, it must not forget
the indispensable role of local communities.
The Mitsuuroko Group has traditionally built relationships of trust with local
communities through not only its business relationships but also throughconnecting with them in other ways, such as by participating in community
cleanup activities and events as well as charity activities and sports. The
Mitsuuroko Group aims to coexist and prosper together with these local
communities through working as hard as possible on initiatives that it canand should do in serving them as a corporate citizen, no matter how small.

Enhancement of safety and disaster response measures

Safety is indispensable element because of the nature of all businesses the
Mitsuuroko Group promotes. With its mainstay energy-related products
directly linked to our lives as lifelines, the Mitsuuroko Groupʼs mission is tocontribute to society through the stable supply of energy as well as safe,
reliable, and prompt logistics services.
In light of the experience and lessons of the Great East Japan Earthquake
and the impact of frequent large-scale natural disasters occurring in recent
years, such as typhoons, floods, and heat waves, it recognizes the necessity
and importance of disaster prevention and is working to enhance disaster
response measures, including disaster prevention measures and support
systems, BCP, etc.

5

Health-focused management

Understanding that human resources are our greatest asset, the Mitsuuroko
Group considers the health management of employees, who are the sourceof its future growth as an important management issue. Based on the“Mitsuuroko Group Healthcare Declaration,” it respects the fact that eachindividual faces a variety of life stages, and it supports its employees inenabling them to autonomously and proactively manage their health througha variety of initiatives and information dissemination.
As a leading company in health-focused management, it will continue toprovide support and engage in even more comprehensive initiatives throughfurther promoting physical and mental health to prevent illnesses, andpromoting work styles in line with new normal, including those that address
the COVID-19 pandemic.

4

Mitsuuroko Group indicators
Charter of Corporate Ethics

Materiality

1 Contribution
Contribute to the preservation of the
global environment and the creationof an enriched and livable society( i ) Reduction of Scopes 1 and 2 (in-house)*1, 2 CO2Contribution to improved energy efficiency

to the3environment (ii) Reduction of Scope 3 (customer)* CO2
Contribution to improved energy efficiency

2 Contribution to local communities

Comply with laws, regulations, andother social norms, and conduct fairand sound corporate activities.
Strive to maintain sound and positive
relationships with a wide range ofsociety, including customers,
business partners, employees,
and shareholders.
Provide safe and high-quality
products and services

3

In the management philosophy, the Mitsuuroko Group has set forth that it
consistently conducts its business with integrity and from the customerʼs
perspective, advocating the need for legal compliance in management andbusiness operation.While thoroughly maintaining internal controls that havebeen effective and appropriate so far, we continuously maintain our legal
compliance system through means such as conducting various types ofcompliance training, producing original training videos on non-compliancecases, and ensuring employees carry compliance cards.
Going forward, we will continue to strive for sincere management andbusiness activities based on high ethical standards, always from theperspective of corporate social responsibility.

6

3 Thorough compliance

4 Enhancement of safety and disaster
response measures

The Mitsuuroko Group has grown from its principle of evolving and changing
with the times as an “ environmentally adaptive company ” whosesubsistence derives from requirements of respective eras. Going forward,
rather than having to catch up and adapt to its surroundings, it must
propose solutions and create new and beneficial conditions to achievesustainable growth. It is therefore essential that the Mitsuuroko Group
fosters a corporate culture that embraces diversity as a strength, creating
an environment that does not discriminate based on employment
background, nationality, gender, age, or whether one is a new graduate or
mid-career hire.
The Mitsuuroko Group aspires to shaping a new era by being “an enterprisethat creates favorable cycle” and “seeking continuous change.”

Respect the personality andindividuality of employees andcreate a comfortable and enriched
work environment

6 Promotion of diversity*5*1 Scope 1… Direct emissions caused by the business operator itself*2 Scope 2… Indirect emissions caused by the use of electricity, and heatand steam supplied by other companies*3 Scope 3… Indirect emissions other than Scopes 1 and 2 (upstream anddownstream of supply chain)

Quantitative targets

Target fiscal
year

Carbon neutral*4

FY2050

Increase the number of locations with
the Christel Vie Ensemble Foundation
donation boxes

Increase from the number oflocations in 2021 (11 locations)

Each year

Contribution to local communities andsociety (community cleanups, etc.)

Once a year (2 locations)

Each year

Number of IT compliance training sessions

Once a year (for all employees)

Each year

Number of harassment training sessions

Once a year (for all employees)

Each year

Number of training sessions related
to human rights

Once a year (for all employees)

Each year

Number of drills conducted in relation
to confirmation of safety

Twice a year (all employees)

Each year

Rate of receiving regular medical
examinations

Continue to provide 100%

Each year

KPI(percentage of all employees for each item)

Promotion of diversity

Importance to the Group

Materiality and the Charter of Corporate Ethics

5 Health-focused management

Thorough compliance

Materiality

The Companyʼs CO2 reduction rate
Customersʼ CO2 reduction rate

Rate of receiving thorough examinations

90%

Rate of maintaining proper weight

80%

Rate of undergoing stress checks

100%

Rate of smoking

18%

Rate of regular exercise

40%

Rate of parental leave taken

Continue to provide 100%

Ratio of female employees

Target: 33%

Ratio of female managers

Target: 11%

Number of diversity training conductedOnce a year for all employees

Number of career seminars conductedOnce a year for female employees intheir late 20s

Number of maternity leave and parental
leave training conductedOnce a year for managers

FY2023

Each year
FY2026FY2022*4 Carbon neutral … Virtually zero emissions, calculated by subtracting the amountabsorbed by plants, etc. from CO2 emissions*5 For training related to “ 6 Promotion of diversity,” we plan to change the theme oftraining on a yearly basis.

10

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

The Mitsuuroko Group is aware that it receives various benefits from theearth, including the resources necessary for its business activities, and that
it is its responsibility to preserve the global environment in a better state. The
purpose of the Mitsuuroko Groupʼs existence is to build a better society
through its daily business activities, and it places utmost importance on
making proactive efforts to solve social issues.
As measures to address climate change, which is a common challenge
facing the world, the Mitsuuroko Group is working to reduce the CO 2
emissions from its business activities and those from its customersʼ use of
products and services, as well as contribute to the improvement of energy
efficiency, aiming to achieve carbon neutral by FY2050.

4

Importance tostakeholders

09

Contribution to the environment* A report announced at the World Economic Forum Annual Meeting (also known as the Davos Forum). In the report, “risks that have ahigh likelihood of occurring and causing negative impact within the next ten years” (Global Risks) are announced. These risks are
selected based on the results of a survey of people affiliated with government, business, and civil society throughout the world.

Evaluation of importanceto stakeholders

Materiality of the Mitsuuroko Group1

Social issues that should be considered are identified after social issues extracted from the targets of the Sustainable Development
Goals (SDGs) and the “Global Risks” outlined in “The Global Risks Report 2021”* are examined comprehensively.

STEP

2

Identification of materiality

Identification of social issues
that should be consideredIntroduction

Stakeholder Engagement

Environment

SocialGovernance

ESG Data

Communication with employees
Building good labor relations

Communication between the President and employees

The Company and unions build sound and positive relations
based on mutual understanding and trust. The Company openly
exchanges opinions on various management issues and labor
conditions through regular labor-management consultations.
The Company also provides an environment where staff
who are non-union members, such as contract employees,
part-time employees, or temporary staff can work safely,
and it has entered into minimum wage agreements. Further,
the Company respects the rights of workers at its overseas
facilities, taking into consideration the legal and regulatory
systems of the respective areas.

The President visits each of the Companyʼs departments
and the workplaces of subsidiaries, exchanging opinions
and ideas with onsite leaders.
Along with posting the message from the President on theintranet, the Company also works to increase
understanding throughout the Group through means suchas publishing articles that explain the vision in the Business
Report.

Basic approach
Guided by the Mitsuuroko Group Charter of Corporate Ethics, the Company conducts fair and sound corporate
activities and seeks to contribute to the preservation of the global environment and the creation of an enriched andlivable society while respecting the positions of various stakeholders and maintaining positive relations with them.
The Company constantly promotes reforms of its corporate governance practices to enable swift decision making,strengthen management supervision, and ensure transparency in our corporate activities. It also works to improvevalue for all stakeholders connected to the Mitsuuroko Group through striving to reform the management structureand enhancing internal control systems.

Communication methods and means
Stakeholders

Development and provision of safe andsecure products and services
Customers

business strategies and non-financial information. In
addition, members of the IR team engage in dialogue withshareholders, holding individual meetings with themwhenever possible if requested to do so. Opinions andconcerns raised by shareholders in the dialogue are thenreported through the Head of Finance & Control to senior
management and the Board of Directors. The Company
also thoroughly ensures that no insider information is leaked
when engaging in dialogue with shareholders.

Shareholders/
Investors

Support for active participation ofdiverse human resources
Sharing of various information within theGroup
Employees

Business partners

Timely and appropriate disclosure of information

Government
authorities and local
governments

Group ” and “ The Financial Strategy of the Mitsuuroko
Group” in the Business Report (Integrated Report), which is
published every year.
The Mitsuuroko Group focuses efforts on publishing various
reports, which represent important IR communication tools.
In FY 2021 , it issued the Business Report (Integrated
Report), which is published once per year, and the
Mitsuuroko Report (Shareholder Correspondence), which is
published twice per year. Both of these publications,
including past editions, can be accessed via the IR Library
page on the Companyʼs website.

Labor-management partnerships
Provision of occupational health andsafety information, mental healthmeasuresDialogue with shareholders and investors
To ensure sound and highly transparent management andgain the understanding and trust of shareholders andinvestors, the Company places importance on proactively
disclosing information in a manner that is “timely, fair, andconsistent.”
Via the Company ʼ s website and the Timely Disclosure
Network (TDnet) of the Tokyo Stock Exchange, etc., theCompany works proactively to make timely disclosures that
include financial information and other information related to
the Group. The Company also publicly discloses the“ Management Policy and Strategy of the Mitsuuroko

Disclosure of information on financial
condition, explanation of status of businessactivities and plans of the Group

Declaration of Partnership Building

Disaster prevention initiatives

Participation in regional disaster prevention and fire fighting activities
Acceptance of practical training from various organizations andschools
Cooperation in surveys, including government statistical surveys

Provision of information to solve social
issues and promote administrative policy
Protection activities of regional environments
Contribution to society through sports
Local community exchange

Since we are promoting the expansion of our global
business, we expect the proportion of overseas investors in
our Company will increase. Therefore, in the 113th Ordinary
General Meeting of Shareholders held in June 2022, we will

Association

Tokyo Employersʼ Association

introduce the electronic voting system platform. In addition,
the Company is working to ensure our convocation notices
and IR pages on the website are also available in English.

Establishment of inquiries and addressing concerns
Activities to protect and nurture the forests around water collection sites
Support of basketball and swimming team activities, and professional golfers
Participation in activities, exchange, and events with local communities
Cleanup activities
Fund-raising activities for the Christel Vie Ensemble Foundation(Christel Foundation)

Communication with industry associations
KEIDANREN (Japan Business Federation)

Initiatives for overseas investors

Quality maintenance and improvement activities run primarily by thequality assurance department of each operating company
Protection of personal information through stringent information
security management
Provision of value to remain close to our customersʼ lives through theGroup business websites
Daily business activities
Provision of opportunities for participating in exhibitions and seminars
Suggestions of environmentally-friendly products and services
GPS-based monitoring service, “mitsu-mail Imakoko”
General meeting of shareholders
Business Report (Integrated Report) and Mitsuuroko Report(Shareholder Correspondence)
Disclosure of IR information on the corporate site
Responding to surveys by ESG rating providers
Formulation of diversity and inclusion promotion policy
Introduction of work-from-home system, support of telework
Enhancement of various types of training and career support
Communication of the message from the President
Communication and sharing of information via the intranet and groupware
Publication of web company newsletters
Various surveys of employees
Opinion exchange through labor-management consultations
Development of safety promotion system
Stress checks
Healthcare support, establishment of contact point for counselling
Compliance hotline

Establishment of relationships of trust andmaintenance of sound and positive relations

Understanding opinions and requests
Society and local
communities

Examples of communication methods, means, and activities

Main position served by officers of the Company, etc.

Member of the Policy Board
Executive Director

Japan L.P. Gas Sales Association

Director

Liquefied Petroleum Gas Center

Trustee

The Mineral Water Association of Japan

Auditor

12

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

11

Creation of opportunities for customers
to provide feedback on products andservices
Co-creation and innovation in creating
value for society

Promotion system
The Company has established Finance & Control and ateam within it that is in charge of IR. The Director who
serves as the Head of Finance & Control becomes the
Director in charge of IR and is responsible for IR. To ensurethat many stakeholders understand the unique way inwhich the Group creates value, the Company proactivelyd i s c l o s e s i n f o r m a t i o n t o s h a re h o l d e r s t h ro u g hcommunications such as the Business Report (Integrated
Report) and Shareholder Correspondence, which containnot only financial information but also information on our

Main response

Introduction

E (Environment)

Environment

SocialGovernance

ESG Data

Main target management indicators (KPIs)

The Company s CO2 reduction rate
FY2050 target

At the Mitsuuroko Group, we are developing a variety of businesses to realize a low-carbon society.
By expanding our mainstay Energy Solutions Business and the Power & Electricity Business, which
could become our next pillar, we will contribute to the realization of a low-carbon society.
We believe that this is the role we can play as a corporate citizen.
The Mitsuuroko Group will remain committed to helping each and every one of our customers leadenriched lifestyles as we firmly set our sights on resources and the environment for the sake of ourchildren and our planet.

Carbon neutral*

Customers CO2 reduction rate
FY2050 target

Carbon neutral*
15

Environmental risk management

16

Climate change initiatives

17

Promotion of resource cycle30

Supply chain

30* Carbon neutral: Virtually zero emissions, calculated by subtracting the amount absorbed by plants, etc. from CO2 emissions

14

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

13

Environmental management

Introduction

Environmental management/Environmental risk management

Environmental management

Charter of Corporate Ethics (extract)

Contribute to the preservation of the global environment and the creation of an enriched and livable society
We will be aware that we receive various benefits from the earth, including the resources necessary forour business activities, and that it is our responsibility to preserve the global environment in a better state.

ESG Data

Directors determines policies and targets (KPIs) for
addressing climate change. In addition, at regularly monthly
meetings of the Board of Directors, the Officer in charge of
ESG reports the status of initiatives for the policies foraddressing climate change and progress of the targets(KPIs) as one of the items in a corporate governance report,
and the Board of Directors supervises accordingly.

Climate change-related governance and risk management system
Roles
1

The Board of Directors identifies material issues concerning risks andopportunities related to climate change, determines the policies andtargets (KPIs) for addressing climate change, and supervises them.

2

The Officer in charge of ESG reports to the Board of Directors on
risks and opportunities, their status, and progress of KPIs.
If new risks or events that may impact the achievement of KPIs are
discovered, they are reported to the Risk Management Committee.
The Officer in charge of ESG works together with the department incharge of sustainability, Finance & Control and Legal & Secretary to
extract and evaluate risks and opportunities, and monitor progress
of KPIs.

4The Risk Management Committee evaluates and analyzes such risks
and events, and reports to the Board of Directors.

5

The departments in charge of KPI promotion at each business andGroup company report on the status of initiatives and progress of
KPIs via a corporate governance report.

Response to natural disasters

The Group is developing a variety of businesses to realize a
low-carbon society. LPG is a form of distributed energy thathas a low environmental impact and is portable. We arealso promoting the spread of energy products, such as
solar power generation systems, lithium-ion batteries, andhousehold fuel cells, that are helpful for peopleʼs lives today
and for the global environment of the next generation.
Furthermore, through the creation of renewable energy, we
are working to contribute to the improvement of the global
environment through reducing CO2 emissions and improveenergy self-sufficiency.

While LPG is a form of distributed energy that is easy toinstall and restore even when natural disasters linked toclimate change occur, such as torrential downpours andstorm surges, it is possible for filling stations to be damaged
and for its transportation to be delayed or slowed. In
preparation for emergencies, we have implemented disasterprevention measures at facilities such as filling stations andhave also formulated a business continuity plan (BCP). The
LPG supply network is rationally designed to ensure asteady supply of LPG to every corner of the country intimes of peace and even in times of disaster.

Board of Directors

Representative Director and Chief Executive Officer

1

3

Department in chargeof sustainability

Risk Management Committee 4

Officer in charge of ESG 2

Finance & Control

Legal & Secretary

Initiatives to reduce water usage

In the wellness business, we are working to reduce bathingwater used at “SPA EAS: Yokohama Onsen-Natural Hotspring” through the use of a recovery tank (tap water andnatural spring water) timer system and water-saving devices

installed in all shower heads. We are also reducing otherwater used at the facility through measures such as the useof grey water and the introduction of water-saving toilets,and employees are also making efforts to save water.
16

Conserving water resources through the use of businesscards made primarily from limestone

From the viewpoint of conserving forest and water
resources, the Group has adopted the use of businesscards made with “LIMEX,” a material derived primarily fromlimestone.
Limestone exists in abundance throughout the world and isa mineral resource which Japan is completely self-sufficientin and can obtain at a low cost. By adopting limestone as
the main material for our business cards, we arecontributing to the conservation of forest and water
resources, which are essential for the production of paper.
This initiative saves 10 liters of water per card box ofbusiness cards (100 cards). When converted to the numberof business cards used by the Group, this equates to
22,000 liters of water saved in a year.

3

Water used at plant per 1 ton sheet [m /t]
100
80(Weight)

85

60
40

96%

Approx.

20

3.23

0
Paper and paperboard

LIMEX sheet* Calculated values are for reference purposes and are not guaranteed values.
Figures may change in accordance with product-specific compositions andproduction requirements as well as data collection conditions.

Departments in charge of KPI promotion at each business and Group company 5

Response to soil contamination
In the event that pollution is detected at LPG filling stations
and gasoline service stations, while we report such
incidents to the relevant government agencies and actively
disclosing information to the public, such as throughexplanations to residents within the vicinity or press

releases, we work to control soil contamination. In
accordance with the state of the pollution, we employ
measures such as excavation, removal, and paving toprevent contamination from spreading or entering groundwater.

SUSTAINABILITY REPORT 2021

The Company recognizes climate change as importantmanagement issues for the preservation of the global
environment, and the Board of Directors determines policies
for addressing climate change and oversees their status.
Specifically, the Officer in charge of ESG reports periodically(at least once a year) to the Board of Directors on theGroupʼs risks and opportunities related to climate change
as well as their status. Based on these reports, the Board of

Climate change initiatives

Water risk initiatives

Environmental management promotion system

Mitsuuroko Group Holdings Co.,Ltd.

Governance

Response to climate change and natural disasters

As a corporate group that is responsible for the supply of energy, the Mitsuuroko Group works to appropriately identify
the impact that its business activities have on climate change and natural capital.
Furthermore, along with environmental conservation as set forth in the Charter of Corporate Ethics, the Group is
engaging in initiatives together to realize a sustainable society.

3

SocialEnvironmental risk management

Basic approach

15

Environment

Introduction

Climate change initiatives

Environment

SocialGovernance

ESG Data

Climate change-related governance and risk management system

Climate change initiatives

Roles

Basic approach

In terms of climate change initiatives, as an entity responsible for stable supply in regions, the Mitsuuroko Group aims
to harness its comprehensive power embedded in these regions to maintain and improve supply infrastructure toensure supply is also available during emergencies, while implementing various initiatives that align with thediversification of customer needs and preferences.
The entire Mitsuuroko Group is engaging in climate change initiatives to achieve a sustainable society throughreducing CO2 emissions, promoting renewable energy, and reducing fuel consumption. For customers who arefocused on reducing CO2, we offer environmentally-friendly electricity plans that stipulate the use of renewable energy.
In addition, we utilize monitoring information obtained by remote automatic meter readings through LPWA connection,and provide a delivery operation streamlining solution that proposes the optimal delivery plans.

TCFD*

1

The Board of Directors identifies material issues concerning risks andopportunities related to climate change, determines the policies andtargets (KPIs) for addressing climate change, and supervises them.

2

The Officer in charge of ESG reports to the Board of Directors on
risks and opportunities, their status, and progress of KPIs.
If new risks or events that may impact the achievement of KPIs are
discovered, they are reported to the Risk Management Committee.

3

The Officer in charge of ESG works together with the department incharge of sustainability, Finance & Control and Legal & Secretary to
extract and evaluate risks and opportunities, and monitor progress
of KPIs.

4The Risk Management Committee evaluates and analyzes such risks
and events, and reports to the Board of Directors.

5

The departments in charge of KPI promotion at each business andGroup company report on the status of initiatives and progress of
KPIs via a corporate governance report.

Board of Directors 1

Representative Director and Chief Executive Officer

3

Department in chargeof sustainability

Risk Management Committee 4

Officer in charge of ESG 2

Finance & Control

Legal & Secretary

Departments in charge of KPI promotion at each business and Group company 5

The Mitsuuroko Group s climate change initiatives

The Mitsuuroko Group considers the TCFD
recommendations an effective framework for disclosing
information and engaging in dialogue with stakeholders inregard to climate change issues. In accordance with the
TCFD recommendations, we disclose information on theimpact of climate change on the Groupʼs business activities
and the measures we are taking in response.
Governance and risk management

The Company recognizes climate change as an importantmanagement issue, and the Board of Directors determines
policies for addressing climate change and oversees theirstatus.
Specifically, the Officer in charge of ESG works together
with the department in charge of sustainability, Finance &Control, and Legal & Secretary to analyze materiality,
extract and evaluate climate change-related risks andopportunities, and identify priority issues concerning suchrisks.
In addition, the Officer in charge of ESG reports periodically(at least once a year) to the Board of Directors on theGroupʼs risks and opportunities related to climate change
as well as their status. Based on these reports, the Boardof Directors determines policies and targets (KPIs) for
addressing climate change.
For KPIs determined, each department in charge of KPIpromotion reports on the progress in a corporate
governance report that is submitted monthly to Finance &Control, and the department in charge of sustainability and
Finance & Control monitor the progress.
At regularly monthly meetings of the Board of Directors, theOfficer in charge of ESG reports on the status of initiatives
based on the policies and targets (KPIs) progress as one of
the items in a corporate governance report, and the Boardof Directors supervises accordingly.
If new risks or events that may impact the achievement of
KPIs are discovered, each manager in charge of
department reports on them to the Officer in charge of
ESG. The Officer in charge of ESG then reports to the Risk
Management Committee, which is chaired by the
Representative Director.
The Risk Management Committee evaluates and analyzes
such risks and events, reporting on them to the Board of
Directors. Based on these reports, the Board of Directors
identifies new material issues, then determines policies andtargets (KPIs), and supervises them accordingly.

Strategy

The Group assumes climate change to have a significant
impact on its Energy Solutions Business and Power &Electricity Business. For these businesses, we have begun
analyzing the below 2 C scenario, which is associated withhigh transition risks, and the 4 C scenario, which is
associated with high physical risks. With 2050 as the target
year, we are examining the risks and opportunities that may
arise under these scenarios as well as response measures.
The below 2 C scenario assumes that the climate will notchange significantly compared to its current state due tothe tightening of environmental restrictions. The 4 C
scenario assumes that decarbonization and carbon
reduction efforts fail to advance, leading to an increase inphysical risks such as those due to natural disasters.
Going forward, we will evaluate the impacts under eachscenario and also carry out scenario analysis for otherbusinesses, taking the results into account in theformulation of our management plans.

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SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

17* Task Force on Climate-related Financial Disclosures (TCFD) wasestablished by the Financial Stability Board (FSB), which was establishedby the G20 Leadersʼ Summit, having recognized the threat of climatechange to the stability of the financial system. TCFD aims to provide
clear recommendations to enable corporations and financial institutions
to make consistent information disclosures on financial risk and potential
impacts related to climate change.

Introduction

Climate change initiatives

Indicators and targets

Environment

Governance

ESG Data

Climate-related risks and opportunities, and their response measures

The Groupʼs GHG emissions in FY2020 were approximately
5.79 million t-CO2eq. 99.6% of the emissions were Scope
3 , of which 54 . 4 % was attributed to customer gas,
electricity, and product usage and 34.0% was attributed torelated procurement operations. The Groupʼs Scope 1 andScope 2 emissions were attributed to vehicle operation(gas delivery vehicles and company cars) and gas andelectricity usage within the Company.

Scenario

Category Classifications
Opportunity/riskof factors

Administrative
policies andlaws

Breakdown by Scope
Greenhouse gas (GHG) emissions

Percentage

Scope 1

Gas delivery vehicles and company cars

★ 11,579t-CO2

0.2%

Scope 2The Companyʼs electricity usage★ 14,249t-CO2

0.2%

Scope 3

Energy procurement and customer usage★ 5,760,604t-CO2eq

99.6%

Risk

2050
Carbon neutral

environmentally-friendly energy sources we handle.
In addition, to contribute to the reduction of CO2 emissions
in our supply chain (Scope 3), we are expanding our meterreadings service powered by Smart OWL ®, expanding
streamlining delivery operation services, transitioning tohigh-efficiency water heaters (ECO FEEL, fuel conversion
systems, ECO-JOZU, ECO ONE), and promoting the
Mitsuuroko Green Plan.

Tightening of fossil fuel regulations andoperating cost increases due to carbon taxes(Estimated cost increase: approx. ¥600
million/year*1)

Increase sales in the Power & Electricity Businessdue to increased demand for renewable energy

Opportunity

Renewable energy is expected to comprise
58% of Japanʼs energy mix by 2050*2
Decrease in sales for LPG and petroleum products

as the total of these four categories. (See pages 21–22 for information on the calculation standard)

To reduce the Companyʼs direct CO2 emissions (Scopes 1
and 2), the Group is automating remotely obtained data
meter readings for LPG and working to improve theefficiency of delivery operations (reduction of truck
operation time and driving distance), eliminate complicateddeliveries, and promote eco-driving activities. We are alsochanging to electric vehicles (EVs) for company cars andincreasing the amount of renewable energy and

Risks and opportunities

Carbon tax (for developed countries including
Japan) is projected to rise to US$120/t-CO2 by2030 and US$200/t-CO2 by 2050*2

CO2 reduction target★ marked indicators are independently assured by KPMG AZSA Sustainability CO., Ltd. For Scope 3 emissions, the Companyʼs category 1 ( ★ 638,501
t-CO2eq), category 3 (★1,960,081 t-CO2eqt), category 4 (★28,571 t-CO2eq), and category 11 (★3,133,452 t-CO2) emissions have each been assured as well

Risk

Below
2C

Oil demand in Japan is expected to fall by
74% by 2050 compared to 2020*2

Transition
risk

Market andtechnology

Opportunity

Reduction of future in-house power
generation costs if the Company establishes
plants that take advantage of developments
in renewable energy production technologies

Solar power generation costs are expected todrop by 50% by 2050 compared to 2020*2

19

Risk

4C

Physical
risk

Acute

Risk

Direction of response and measures• Carbon neutral by 2050
• Automate remotely obtained data meter readingsfor LPG• Reduce truck operation time and driving distanceby improving the efficiency of delivery operations• Promote eco-driving activities• Change to EVs for all company cars by around2030• Increase amount of renewable energy andenvironmentally-friendly energy sources handled• Promote natural energy and the installation ofenergy-saving household equipment• Sell natural energy not dependent on traditional
fossil fuels and other new energy equipment
such as storage cells, and provide services suchas the Mitsuuroko Green Plan

• Establish own plants that utilize the newest
developments in renewable energy production
technologies and increase amount of renewableenergy sources handled• Utilize PPA model*3 and increase solar power
generation• Focus on popularizing EVs and promote thedevelopment of 100% renewable energy EV
charging infrastructure• Expand the installation of storage cells andstrengthen ability to adjust electricity supply anddemand• Focus on transitioning from FIT system to FIP
system*4 and launch renewable energy
aggregation business

Increase in costs to meet the rising
expectations of investors and the market inrespect to corporate climate change initiatives(Financing costs and communication costs)• Actively work to meet the changing expectationsof investors and the market• Proactively engage in ESG-related initiatives andenhance relevant information disclosures• Focus on sales of new energy equipment,
including high-efficiency water heaters,
distributed demand appliance ENE FARM, solar
power and storage cells, to contribute to
reducing customers CO2 emissions

Decrease in sales and increase in recovery
costs due to damage to plants and facilities,
the supply chain, and power companies asa result of heavy rain and floods• Produce disaster manuals and conduct security
training, safety confirmation drills, andevacuation drills• Implement disaster countermeasures at LPG
filling stations (disaster prevention nets, lashingbelts, etc.) and consumers homes (double
chains, tension-type high-pressure hoses, etc.)• Develop a shared system for LPG delivery that canused by Japan Enagic Co., Ltd. and among bases• Develop a robust business continuity plan (BCP)
system through the enhancement of disastermanuals*1 The cost increase for business operations due to the impact of carbon tax is calculated as below:
2050 Carbon tax of US$200/t-CO2 is based on the International Energy Agencyʼs publication, “World Energy Outlook 2021.”
Groupʼs CO2 emissions (t) in 2020 × US$200/t-CO2 × exchange rate (¥/$)*2 Each estimation is based on the calculations in “World Energy Outlook 2021.”*3 PPA model… A business model in which business operators install, manage, and maintain solar power systems on the roofs of customersʼ offices free of charge.
Consumers then purchase the electricity that is generated.
PPA stands for Power Purchase Agreement*4 FIT… A system where power companies purchase electricity from renewable energy sources at a fixed price for a fixed period of time.
FIT stands for Feed in Tariff
FIP… A system where power generation business operators that produce electricity from renewable energy sources and sell it in wholesale markets or through overthe-counter trading are granted a premium equivalent to the difference in the standard price (FIP price) and the market price.
FIP stands for Feed in Premium

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SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

SocialIntroduction

Climate change initiatives

Environment

SocialGovernance

ESG Data

CO2 reduction target
FY2020 Greenhouse gas (GHG) emissions

Action plan

Improve delivery efficiency with
SmartOWL®

Scope 1 (direct emissions)★

11,579 t-CO2

Reduce Scope 1 emissions

Aim

Efficiency of delivery operations increases through enabling container replacement to take place at the
optimal time by analyzing LPG meter data collected daily through LPWA with unique know-how. We
achieved an approximately 30% reduction in delivery time and an approximately 20% reduction in travel
distance in a demonstration test*.
* A comparison and analysis of the conventional delivery method, in which the next delivery date is determined based on a prediction of
the amount of gas remaining based on regular monthly meter readings, and a new delivery method based on actual results, in which theamount of gas remaining in the LPG container is monitored daily using the LPWA and the next replacement date is determined.

Scope 2 (indirect emissions from the use of energy)★

14,249 t-CO2

Promote EV for company cars
Reduce Scope 1 emissions

Scope 3 (indirect missions in the value chain)★

5,760,604 t-CO2eq

Scope 1
11,579t-CO2(0.2%)

CO2
emissions5.79 million
t-CO2eq

21

Promote reducing CO2 fromthe use of electricity

Scope 2
14,249t-CO2(0.2%)

Reduce Scope 2 emissions
Reduce Scope 3 emissions (category 3)

We will reduce CO2 emissions related to our own electricity consumption and the electricity we sell to ourcustomers through the following two measures:( i ) FIT electricity + environmental value
We can reduce the adjusted emissions factor by purchasing
FIT non-fossil fuel certificates and J-credit equivalent to theamount of electricity used.
(ii) 100% non-FIT electricity
Switch to renewable energy (non-FIT electricity).

Specificactions

Eliminate mineral waterbottle labels

Scope 35,760,604t-CO2eq

Reduce scope 3 emissions (category 1)(99.6%)We began selling labelless products in April 2021. Our 550ml bottles are sold exclusively in boxes andwithout labels on the bottles themselves, thereby reducing the amount of plastic waste. This also
eliminates the hassle of removing labels when sorting trash and contributes to reducing the environmental
footprint.

2050

CarbonneutralGreenhouse gas (GHG) emissions
Scope 1★

11,579t-CO2

Scope 2★

14,249t-CO2

Scope 3

★ 5,760,604t-CO2eq

Category 1★

Category 3★ 1,960,081t-CO2eq activities not included in

Category 4★

Promoting sales forhigh-efficiency water heaters
Reduce Scope 3 emissions (category 11)

goods and638,501t-CO2eq Purchased
services

We aim to contribute to the reduction of CO2 emissions and the prevention of global warming through thepromotion of high-efficiency gas equipment. We are promoting sales of energy efficient products with highadded value. These include latent heat recovery-type high efficiency water heaters for domestic use called“ECO-JOZU,” which reduce CO2 emissions by approximately 16% compared to conventional heaters, aswell as “ECO ONE,” a hybrid hot water and heating system that combines a heat pump water heating
system with “ECO-JOZU,” achieving an approximately 40% reduction in CO2.

Fuel and energy-related
Scopes 1 and 2

Category 11 ★

28,571t-CO2eq

Transportation anddelivery (upstream)

Reduce CO2 from LPG delivery

3,133,452t-CO2 Use of sold goods★ marked indicators are independently assured by KPMG AZSA Sustainability CO., Ltd. The basis for the calculations is as follows:

Reduce scope 3 emissions (category 4)

The scope of calculation covers Mitsuuroko Group Holdings Co., Ltd. and consolidated subsidiaries. Scopes 1 and 2 emissions include only CO2 emissions, while Scope 3 emissions include GHG
emissions other than CO2.
Scope 1: CO2 emission factor of fuel and the unit calorific value are based on the coefficients specified in the Act on Promotion of Global Warming Countermeasures.
Scope 2: CO2 emission factor of electricity based on the adjusted emission factors by electric utility business operator.
Scope 3: Each emissions intensity is referenced from the Act on Promotion of Global Warming Countermeasures; the Ministry of the Environmentʼs “Database on Emissions Unit Values for
Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain”; and the Inventory Database for Environmental Analysis version 2 (IDEAv2) for
calculating supply chain greenhouse gas emissions, published by the Sustainable Management Promotion Organization.
Category 1: Calculated by multiplying the amount (physical quantity) of petroleum-derived fuel and city gas procured for sales by the emission intensity for each fuel type specified in IDEAv2.

Japan Enagic Co., Ltd., which is one of our LPG delivery subcontractors, has participated in the Tokyo
Trucking Association ʼ s Green-Eco Project. In the “ Tokyo Freight Forwarding Evaluation System ”
conducted by the Tokyo Metropolitan Government, it was awarded “one star (☆)” for its efforts to reduce
CO2 emissions in FY2020.
The Group is supporting initiatives to reduce CO2 emissions from LPG delivery by promoting SmartOWL®
delivery operation streamlining solution to LPG delivery businesses throughout all of Japan.
Category 3: GHG emissions derived from the extraction, production, and transportation of fossil fuels used in the production of electricity for sales purposes and the production of energy purchased
for private use. Emissions from “electricity for sales purposes” are calculated by multiplying the amount of electricity sold by the basic emission factor of the Mitsuuroko Group conducting
retail electricity business and the emission intensity database figure. Emissions from “private electricity consumption” are calculated by multiplying the amount of electricity used for
private consumption by the emission intensity database figure. Emissions from “private fuel consumption” are calculated by multiplying the amount of fuel used for private consumption
by the fuel emission intensities specified in IDEAv2 for each fuel type.
Category 4: Upstream transportation emissions are calculated by multiplying the transportation volume (t-km), which is the product of the cargo weight and the distance transported, by the emission
intensity for each transportation type.
Category 11: Calculated by multiplying the sold volume (physical quantity) of petroleum-derived fuel and city gas by their respective fuel-specific calorific values and CO2 emission factors.

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SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

We will ( i) switch to fuel-efficient vehicles and (ii) promote eco-driving, aiming to change about 700
company cars to EVs by 2030.

Introduction

Climate change initiatives

Controlling customer CO2 emissions

Hybrid hot water and heating system “ECO ONE”

Governance

Promotion of household fuel cell ENE FARM
For the promotion of the new energy solutions business,
we are working to improve energy efficiency through a local
power production and consumption approach centered on
the best mix of energy. We are currently focusing on thefact that the main forms of power supply have low energy
efficiency in terms of transmission loss and waste heat loss,
promoting the rollout of “ENE FARM,” a distributed power
generation system installed in each consumption area.
“ENE FARM” is an LPG-based system, and we are mainly
concentrating on popularizing it among new standard
homes by partnering with home construction companies.
Through these efforts, we will continue to promote thespread of distributed energy systems.

Development of renewable energy sources
Renewable energy is an important form of domestic energythat does not emit greenhouse gases and can be produced
within Japan. It harnesses the natural environment and isalso a vital power source for the development andmaintenance of society. In addition to the power plants wealready possess, we are also developing renewable energy
sources such as solar, wind, and biomass.

24

Provision of the Mitsuuroko Green Plan

Household fuel cell “ENE FARM”

Since the “Paris Agreement” was adopted in December
2015, the awareness of consumers and investors toward
climate change has increased rapidly, and corporate efforts
toward reducing greenhouse gas emissions are being

viewed as important. By providing the “Mitsuuroko GreenPlan” to customers who are working to reduce their CO2
emissions, we will contribute to a low-carbon society and meetthe needs of our customers.

What is the Mitsuuroko Green Plan…
Expanding sales of solar power generation systems
Solar power is a carbon-free source of energy that does
not emit greenhouse gases. Consumers do not need to
pay consumption charges and can reduce the amount ofelectricity they purchase from power companies by using
the power generated for their own household. Unusedenergy can then be sold to power companies. It is also
highly economic, as once installed, power can continue tobe generated as long as there is sunlight. Since Japan
often faces natural disasters such as earthquakes,
typhoons, and severe rainstorms, solar represents aneffective source of emergency power in the event of power
outages. We will also promote the spread of integrated
power generation storage systems through the installationof storage cells together with solar power generation
systems.

ESG Data

The Mitsuuroko Green Plan uses renewable energy suppliedby Mitsuuroko Green Energy Co., Ltd., as well as J-Credit
and non-fossil fuel certificates. It offers CO 2 emission
factors tailored for customers needs in two options.
* It not only reduces electricity charges, but also enables customers to
reduce their CO2 emission factors.
* The plan is available Japan-wide excluding Okinawa and someremote islands.

1 FIT electricity + environmental value

FIT electricity + non-fossil fuel certificates or J-Credit Mitsuuroko Green Plan
Mitsuuroko Green
Energy Co., Ltd.
Supplied FIT electricity

Mitsuuroko
Green EnergyCo., Ltd.
Non-fossil
fuel certificates
J-Credit

Benefits of the Mitsuuroko Green Plan
Lead improvement of corporate image.
Customers can report lower emissions in the System for Greenhouse Gas Emissions Calculation,
Reporting, and Disclosure based on the Act on Promotion of Global Warming Countermeasures(Global Warming Countermeasures Act).
Customers can report lower emissions in a CDP report, which is noticed by corporate investors.
Customers using our extra-high voltage power service or high voltage power service can view
the balance between costs and emission factors and select a plan (emission factor).

Customers

2 100% non-FIT electricity

Mitsuuroko Green Plan linked to 100% renewable energy
Renewable energy

Mitsuuroko
Green EnergyCo., Ltd.

Customers

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

SocialExpanding the energy solutions businessWe save energy at a wide range of facilities including
factories, commercial buildings, and hospitals through theselection and maintenance of cogeneration systems andproposal of energy-saving equipment. We also work torealize comprehensive energy management centered onelectricity, thermal, measurement, control, power storage,
and power generation. In addition to reducing running costswith our energy solutions, we are expanding business thathelps the global environment. Committed to theachievement of a sustainable society, we provide solutions
for the future.

Promotion of high-efficiency gas equipment
We seek to contribute to the reduction of CO2 emissions
and the prevention of global warming through thepromotion of high-efficiency gas systems, proposing andselling efficient products with high added value. Aiming tomeet the diversifying needs and preferences of ourcustomers, these products include latent heat recoverytype high efficiency water heaters for domestic use called“ECO-JOZU,” which reduce CO2 emissions byapproximately 16% compared to conventional heaters, aswell as “ECO ONE,” a hybrid hot water and heating systemthat combines a heat pump water heater system with ECOJOZU, achieving an approximately 40% reduction in CO2.

23

Environment

Introduction

Climate change initiatives

In April 2021, we began to provide the “Mitsuuroko Green
Plan,” which adheres to the “RE100*,” global initiative on
renewable energy, to four facilities of “ RE 100 ” member
MARUI GROUP CO., LTD. MARUI GROUP CO., LTD. joined“RE100” in 2018 and has set the target of using at least 70%

renewable energy by FY2025 and 100% by FY2030 for theelectricity it uses in its business activities. To achieve the
RE100 targets, it is gradually switching to electricity thatadheres to RE100 standards.

* “RE100” is a global initiative aimed at preventing global warming. It is led by The Climate Group (international NGO working to reduce greenhouse gas
emissions) in partnership with the CDP (international NGO promoting disclosures on environmental issues). Member companies pledge and publicly
announce that they will use 100% renewable energy for the electricity used in their business activities by 2050 at the latest.

Governance

ESG Data

Although mega solar plants adopt the same mechanism as
residential solar power systems, they are not installed on theroofs of houses. They are installed in large areas of vacant land
and have large-scale generation capacity making them suitablefor industrial use. Expectations are high for both the “Suigo-Itako
Solar Power Plant” in Ibaraki (power output of approximately
14,500 kW) and the “Futtsu Solar Power Plant” in Chiba (power
output of approximately 40,000 kW), which are participating in
the business, as next-generation energy sources.
Total output

Provision of the EV Green Plan

In February 2021, the company was selected as a business
operator that provides electric power from renewable energy
eligible for EV purchase subsidies designated by the Ministry of
the Environment under the “model project for early adoption of azero carbon lifestyle and workstyle making use of electric powerfrom renewable energy, electric vehicles, fuel cell vehicles, etc.”
EV purchase subsidies are a government system for popularizing
EVs that enable people to receive a subsidy when buying an EV

if they purchase a “renewable energy power” (electricity contract)provided by the selected retail electricity business operators.
Providing the “ EV Green Plan, ” which combines EVs andrenewable energy, we will contribute to the spread ofrenewable energy and the promotion of a decarbonized society
through the mobility industry.
* From April 2022 (planned), the purchase of “renewable energy power” isno longer required to receive EV purchase subsidies.

Key example
Partnering with Nissan Motor Co., Ltd., we began to sell the“EV Green Plan” to owners of Nissan EVs and new EV buyers
in April 2021.
Nissan Motor Co., Ltd. is promoting the spread of EVs tochange society, as well as its “Blue Switch” project, whichaims to solve regional issues and electrify Japan. As part ofthese efforts, it is actively working toward using renewableenergy in its EVs.
We are also contributing to the spread of renewable energy
through the mobility industry and the realization of adecarbonized society through providing the “EV Green Plan,”which combines EVs and renewable energy. Our partnershipwith Nissan Motor Co., Ltd. grew from the shared ideal ofpromoting the use of renewable energy.

Suigo-Itako Solar
February 2014
Co., Ltd.

Maekawa, Itako-shi, Ibaraki
Prefecture

14,500kW

July 2014

Shimokenzaku, Kato,
Futtu-shi, Chiba Prefecture

40,000kW

Futtsu Solar Co., Ltd.

Solar power plants with output under two megawatts(municipal solar)

The Group is working to expand the use of solar power systems
and fuel cells to promote the spread of renewable energy.
We also have solar power plants that are of a smaller scale thanthe mega solar plants described above (less than 2 megawatts).
We currently operate these plants in 19 locations, and the total
output in FY2020 was 7,045 thousand kWh.
26

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

SocialMega solar business

Key example

25

Environment

Initiatives of operating companies
As a power generation business operator that produces electricity from renewable energy sources such as wind power, mega solar,
and biomass power, Mitsuuroko Green Energy Co., Ltd., the electric power business company of the Mitsuuroko Group, aims to
reduce CO2 emissions, improve energy self-sufficiency, and coexist with local communities.

Wind power generation businessIn wind power generation, a turbine is turned by the force ofwind, and this rotational motion is then transferred to a
generator to create electricity. It is a comparatively efficientmethod of power generation where 40% of windʼs energy canbe converted to electricity. With its long coast lines, Japan has
many locations suitable for harnessing stable wind power(average wind speed of 6 m/second or more), making it apromising country for wind turbines. We are also considering
the installation of offshore wind turbines.

Biomass power generation business

Biomass is an organic resource (excluding fossil fuel) produced
by organisms from the inorganic compounds of water and CO2
using solar energy. It is a sustainable and renewable energy
source that only requires life and solar energy. Within biomass,
it is the category of “woody biomass,” which comes fromwood such as thinned wood and construction wood waste.
Since CO2 generated by burning woody biomass is absorbed
from the atmosphere by trees in the process of photosynthesisthat drives their growth, there is virtually no increase inatmospheric CO2. This is called “carbon neutral.”

Total output

January 2007

Gumihara Wind
Power Station

Higashitoge, Mutsure-cho,Tahara-shi, Aichi Prefecture

Mach 2007

Aduchiohshima
Wind Power Station

Oshima Village, Hirado-shi,
Nagasaki Prefecture

January 2008

Kamisu Wind Power Yanagawa, Kamisu-shi,
Station
Ibaraki Prefecture* Teshio Wind Power Plant ceased operations in June 2021.

1,500kW

Total output

Mitsuuroko Iwakuni
Iwakuni-shi,
Japanʼs first wood chip combustion
10,000 kW power plant
Power Station Co., Ltd. Yamaguchi Prefecture

32,000kW

January 2006

10,000kW

We provide electricity produced at the Mitsuuroko Iwakuni Power Station
to the customers of our power and electricity sales business.

Introduction

Climate change initiatives

Commencement of construction preparation for grid energy storage stations that will contribute to spreading
renewable energy as the main form of power and the stability of power grid

Mitsuuroko Green Energy Co., Ltd. has begun preparations for theconstruction of the “ Kitahiroshima No. 1 and No. 2 Storage
Stations” in Kitahiroshima-shi, Hokkaido, aiming to start operationin December 2022.
The use of renewable energy power generation facilities for therealization of carbon neutral by 2050 is expanding. However, there
are difficulties in power generation prediction and control due tothe fact that facilities such as those for solar and wind power are
affected by the seasons and the climate. To solve these challenges,
it is essential to secure “adjustment power” to suppress unstable
power generation.
At these power storage stations, the storage battery can be used
as “adjustment power,” and the charge or discharge control of thestorage battery can then be used to compensate for the shortfall in
the power generation plan of the renewable energy power source,
thereby contributing to the stabilization of the power grid*1. In
addition, these storage stations can also be used in the control of
distributed energy sources and other such applications.
Mitsuuroko Green Energy Co., Ltd. seeks to create a stable andefficient balance of supply and demand for electricity. As anaggregator business operator*2, it will contribute to the further
adoption of renewable energy and the stabilization of powersystems by entering new markets, such as the supply-demand
adjustment market and the capacity market.

*1 Power grid
A system that integrates power generation, substation, power transmission,and distribution to supply power to consumersʼ power receiving equipment.
*2 Aggregator business operator
A business operator that effectively manages energy by bundling the electricity
demand of consumers and the electricity of distributed power sources (storage
batteries and private power generation equipment).

Mitsuuroko Group Holdings Co.,Ltd.

Capacity market system
Supply-demand adjustment market system
Simplified control system

Charge and discharge control of storage batteries

OutputDecember 2022
(scheduled)

Kitahiroshima No.1 andNo.2 Storage Stations

Kitahiroshimashi, Hokkaido

3,085.6kW

generation facilities, such as those for solar and wind power, which
fluctuate substantially. Its development will enable a smoother
response to the supply-demand adjustment market which isphased in from this fiscal year, and the capacity market, which will
start in FY2024.
Mitsuuroko Green Energy Co., Ltd. and Nippon Koei Co., Ltd. havelabelled “IPoCC” as “epochmaking.” The two companies aim toestablish it as next-generation standard in power control systems,
and in addition to developing and testing it, they are focusing on
external sales and the expansion of aggregation energy business.
Through these efforts, they will contribute to the popularization ofrenewable energy and the realization of a decarbonized society.

Renewableenergy BG

Retail electricity
business operators
Avoid imbalance, etc.

Power generation
business operator
Power generation forecasting support

Next-generation integrated power system platform
Adjustment instruction (supply-demand adjustment market and capacity market) Consumer DR Power generation forecasting support

Renewable energy power
generation business operator(IPP, etc.)
Electricity sales plan

Mitsuuroko Green Energy Co., Ltd.
Retail electricity business operatorsRARA

ESG Data

Improve delivery efficiency with SmartOWL®

In the LPG business, we are contributing to the realizationof a low-carbon society by eliminating waste and byreviewing the existing workflow.
SmartOWL ® service is a solution that increases theefficiency of LPG operations through the collection andanalysis of LPG meter information and the application of
know-how gained in demonstration tests. The operational
know-how and series of business models that link
information collected by LPWA to delivery efficiency
improvement have been patented, and we are expanding
the service to enable more LPG business operators to use
it.

Reducing environmental impact by improving delivery efficiency

In order to use LPG, it is essential to deliver LPG containers
to the homes of consumers by truck, and by streamlining
this delivery process, the distance traveled by trucks canbe shortened, thereby reducing CO2 emissions.
Effectiveness has been proven through experiments

Mitsuuroko Creative Solutions Co., Ltd. conducted anexperiment from October 2018 to the end of September
2019 and demonstrated the effects of improving delivery
efficiency by utilizing data automatically acquired through
LPWA connection.
Through digital transformation (DX), we have developed aproprietary system that incorporates four patented
technologies and know-how that reduced the delivery
operation time by 30% in the demonstration experiment,
and the service has been available as “SmartOWL delivery
operation streamlining solution” to LPG business operatorssince October 2021.

Effects of improving delivery efficiency

We achieved an approximately 30% reduction in delivery time and an
approximately 20% reduction in travel distance in a demonstration
Shorter travel distance = lower CO2 emissions
test of delivery efficiency improvement using LPWA connection*.
ENPT

Daily collection of gas meter readings via LPWA

RA

RA*

Consumer
Effective use of renewable energy

LOW

Daily monitoring of
remaining LPG quantity28

Improved efficiency ofdelivery operations

Implementation of a
new delivery method* A comparison and analysis of the conventional delivery method, in which the next delivery date is determined based on a prediction of the amount ofgas remaining based on regular monthly meter readings, and a new delivery method based on actual results, in which the amount of gas remaining in
the LPG container is monitored daily using the LPWA and the next replacement date is determined.

Service overview
Customers with LPWA terminals installed

General electricity transmission
and distribution business operator
Provision of adjustment power

Governance

Delivery operation streamlining solution* LPWA connection is used to collectinformation such as LPG meterreadings on a daily basis.

Daily gas meterreadings data

LPG business operators

Delivery system for LPG
business operators
Container replacement
date data

Renewable energy BG service

Renewable energy and In-house power supply
Storage battery control
Consumer DRJapan Electric Power ExchangeThis service is equipped with four patented technologies to provide the most efficient container replacement date.
DemandBG

Demand and procurement planning* Resource aggregator: Business operator that enters into direct service contracts with consumers and controls resources.

No. 6364571
Patent No. 6744472
number No. 6757454
No. 6803488

This service, which shortens delivery time, contributes to CO2 reduction by
reducing truck operating time and driving distance, and serves as acomplement to labor shortages. In doing so, it will help solve social issues andpromote ESG, and is proposed as a strength of the Group, which continues toprovide “enriched lifestyles” through energy supply.

LPG business operators using the service
will be able to enjoy the benefits ofincreased efficiency without having to
make major changes to their delivery
operations environment.

SUSTAINABILITY REPORT 2021

To participate in renewable energy aggregation business,
Mitsuuroko Green Energy Co., Ltd., has entered into a businessalliance agreement with Nippon Koei Co., Ltd. to develop anddemonstrate “Integrated Power Control Central” (IPoCC), a next
generation system that utilizes distributed energy resources suchas storage batteries.
Based on the business alliance agreement, we aim to build“IPoCC,” which is a system creates a stable and efficient balanceof power supply and demand through the control of distributed
energy resources such as storage batteries and through providing
power generation forecasting and renewable energy supplydemand adjustment services for renewable energy powerSocial

Megapack, a large-scale industrial use storage battery manufactured by TESLA Inc.
Source: TESLA (https://www.tesla.com/megapack)

Initiative for participating in renewable energy aggregation business
27

Environment

Introduction

Climate change initiatives/Promotion of resource cycle/Supply chain

Moss cultivation business initiatives

We will begin a new moss cultivation business as an initiative toutilize our idle land. Moss is able to absorb CO2 at a rate of
approximately 2 tons per hectare per year, and other key
characteristics include that (i) it does not require irrigation (grows
with just dew and rain); (ii) does not require fertilizer (sunlight andrainwater are sufficient); (iii) does not require soil (it does not haveroots that absorb water and nutrients, absorbing them through its
leaves instead); and (iv), does not need to be trimmed (it grows at
a maximum length of 1 cm per year, and some types do notchange appearance for years). We anticipate that it will mainly be
used by railway business operators and factory operators toprevent weed growth.
Other climate change initiatives
1 Activities to protect and nurture the forests around water collection sites

2 Proactive initiatives toward food safety and the reduction of food loss

The “ZENB Sandwich” was developed in an industry-academia
collaboration between the Mizkan Groupʼs ZENB JAPAN Co., Ltd.,the Faculty of Agriculture of Tokyo University of Agriculture, andAzabuJuban Mont-Thabor, which is bakery operated by our Group
company Sweet Style Co., Ltd. The “ZENB Sandwich” is madefrom “ ZENB PASTE,” which is made from whole vegetables,
including the parts that are usually discarded. It also uses wholegrain wheat, which causes little waste.
3 Bread-making with surplus wheat caused by the impact of COVID-19

Sweet Style Co.ʼs bakery, “AzabuJuban Mont-Thabor,” also madeand sold bread that utilizes surplus wheat produced by students ofCentral-Agricultural Senior High School in Kanagawa Prefecture.
As a Christmas present, we gave the students who produced thewheat our flagship stollen made from their wheat, thoroughly
delighting them.
Due to the impact of COVID-19, the school was unable to sellroughly 2 tons of wheat produced by the students of their foodprocessing club. We were introduced to the school by Mill PowerJapan, and in October 2021, we began to sell bread made fromthe wheat at some of our stores to ensure that it was not wasted.

SocialGovernance

ESG Data

Promotion of resource cycle
Utilizing resources effectively through labelless mineral water
In March 2021, Mitsuuroko Beverage Co., Ltd. introduced
new equipment at its Gifu Yoro Plant, and in April 2021, it
began selling labelless products. These 550 ml bottles are
sold exclusively in boxes and eliminating the labels on thebottles themselves means no labels have to be removed
when sorting trash, which also contributes to reducing theenvironmental footprint and the promotion of the effective
utilization of resources.
With people spending more time at home due to COVID-19
and online sales of cases of drinks increasing, labelless
products are becoming increasingly popular as theyeliminate the hassle of removing labels and reduce theamount of plastic waste.

Supply chain
Green and eco-friendly projects initiatives
Japan Enagic Co., Ltd., in which our Group company Logitri
Holdings Co., Ltd. holds a 20% share, has participated in
the Tokyo Trucking Association ʼ s Green-Eco Project*.
Through the elimination of complicated deliveries, andpromotion of continuous eco-driving activities, Japan Enagic
Co., Ltd. has reduced the travel distance by 8.8%, reduced
fuel consumption by 12.8%, improved fuel efficiency by
4.62%, and reduced CO 2 emissions by 479 tons (CO 2absorption equivalent to 34,200 cedar trees) in FY2020
compared to the previous year.
In addition, in the “Tokyo Freight Forwarding Evaluation
System” conducted by the Tokyo Metropolitan Government,
it was awarded “one star (☆)” for its efforts to reduce CO2
emissions in FY2020.
We a re a i m i n g t o a c h i e v e “ e n v i ro n m e n t a l C S R(management improvement from the environment)” with a30

focus on social contribution and social responsibility byraising the environmental awareness of each and every
employee, including management, supervisors, and drivers.

* A project launched by the Tokyo Trucking Association that incorporates unique CO2
reduction initiatives in order to contribute to the prevention of global warming.
The project aims to build a database from the fuel consumption data collected foreach vehicle and engage in initiatives such as the promotion and support ofcontinuous eco-driving activity, the reduction of CO2 emissions, the reduction of costs
through the improvement of fuel efficiency, and accident prevention.
Effects of Japan Enagic Co., Ltd.ʼs activities
http://www.tta-gep.jp/search/?p=5333

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

29

Working together with local communities, we are engaging in
activities to protect and nurture the forests around the water
sources used by Mitsuuroko Beverage Co., Ltd., a Group company
that produces natural water products (mineral water production
and sales business). We support activities advocated by Yamanashi
Prefecture for the protection and nurture of national forests that are
deteriorating. Partnering with Narusawa Village 1st District, wehave entered into an agreement for participating in volunteer
activities to maintain the Narusawa Village 1st Districtʼs own forest.
Mitsuuroko Beverage Co., Ltd. is actively engaging in these efforts
as part of activities to cultivate water sources that provide thewater essential for producing its products.

Environment

Introduction

S (Social)

Environment

SocialGovernance

ESG Data

Main target management indicators (KPIs)

Since the founding, the Mitsuuroko Group has operated business based on the conceptthat human resources were the source of our growth and our greatest asset.

Contribution to local communities andsociety (community cleanups, etc.)

Number of drills conducted in relation toconfirmation of safety

Yearly target

Yearly target

Yearly target

Increase from the number oflocations in 2021 ( 11 locations)

Once a year ( 2 locations)Twice a year (all employees)

Rate of receiving regular medical
examinations

Rate of receiving thorough examinations

Rate of maintaining proper weight

Yearly target

FY2023 Target

FY2023 Target

Continue to provide 100%

90%

80%

Rate of undergoing stress checks

Rate of smoking

Rate of regular exercise

FY2023 Target

FY2023 Target

FY2023 Target

Stable supply of energy/electricity

33

100%

18%

40%

Security and quality management
for customers

35

Rate of parental leave taken

Ratio of female employees

Ratio of female managers

31

Disaster prevention measures

37

Yearly target

FY2026 Target

FY2026 Target

32

Mitsuuroko Group Holdings Co.,Ltd.

To ensure stable and reliable services, we do everything we can and should, no matter how
small, to co-exist with local communities and realize a safe and secure society. We hope tocontribute to a bright future, beautiful Earth, and enriched society.

Increase the number of locations with the Christel
Vie Ensemble Foundation donation boxes

Respect of human rights

39

Continue to provide 100%

Target: 33%

Target: 11%

Health-focused management

40

Diversity and inclusion

43

Number of diversity training conducted

Number of career seminars conducted

Number of maternity leave andparental leave training conducted

Human resource development45

FY2022 Target

FY2022 Target

FY2022 Target

Local communities

46

Once a year for all employees

Once a year for female
employees in their late 20s

Once a year for managers

SUSTAINABILITY REPORT 2021

Introduction

Stable supply of energy/electricity

SloganBasic approach

The Group is striving to build an energy supply chain that is sustainable under any changes in conditions irrespectiveof normal times or emergencies and provide our safe and secure services that are closely related to regions.

Stable supply of LPG and petroleum products

Safety measures

80% of LPG is imported from overseas. The Group has entered a
procurement agreement with import companies for slightly under
400,000 tons a year. The Group stably procures LPG that meets
Japanese Industrial Standards and simultaneously storesapproximately 90 days worth of gas at the import company andapproximately 30 days worth of gas at the wholesaler warehouse inorder to respond to geopolitical risks.
Also, the Group has entered agreements with multiple importcompanies regarding petroleum products. The Group securespetroleum products of quality, proactively imports heating oil that
fulfills standards of certifying associations in Japan and overseas, andmaintains a structure that prevents obstacles in fuel supply. In
addition, the Group stores fuel at our own bases.

Within our logistics infrastructure, we transport LPG from the port
hub of the import company to our filling stations by company truckand deliver from our filling stations to our customers. We are
striving to provide stable supply of petroleum products to ourcustomers by entering into charter agreements with oiltransportation companies.

Important safety policies

Cooperation with related business operators

In accordance with major changes to the energy environment,
including electricity and gas systems renovations, the Group believes
that the stable and secure supply of electricity is even more important.
In order to ensure the stable procurement of electricity, we areconstructing an optimized electricity portfolio that combines in-house
power supply and the mutual purchasing, etc. from other companies.
We have constructed a scheme to continue providing electricity in astable fashion through both long-term electricity agreements andshort-term electricity agreements based on mutual cooperation withother companies. At the same time, we will utilize multiple systems,
such as swaps, futures, and the BL market, etc. to improve the stabilityof electricity supply. In addition to renewable energy, we have also
considered transactions in the LNG power, coal power, and Japan
electricity wholesale markets as we aim for the best mix of energy.

We strive to execute regular information exchange and strengtheningof relationships with power generation business operators andelectricity companies. We have also implemented a system to simplify
procedures of construction companies in order to ensure construction
proceeds smoothly in the case of the customer changes their electricity
facilities.
Upon procuring wood biomass that will become fuel in biomass
power generation, we have established a system of long-term stableprocurement with management by a skilled forestry-related business
operator that is also a supplier.
At the same time, we are strengthening relationships with partners
who sell electricity and are making proposals for sales menus such as
the green menu (carbon-free menu).

ESG Data

safety at
1 Maintainexisting facilities

1 Contribute to society by taking on the challenge of eliminating accidents and disasters
2 Safety is prioritized in all operations
3 No trust without safety

Targets / achievement status
Details of implemented measures

Targets for this year

Implement risk assessment

1) Secure certified personnel according to law
Transportation managers, construction managers, C-grade chemical managers,
Spread awarenesshealth and safety promoters, workplace accident prevention supervisors
2 of transportation2)
Educateon transportation safety management systemsafety management
3) Implement internal audits4) Hold open safety conferences（

workplace
3 Promotevoluntary activities

1) Implement safety measure meetings (training on
accident examples)2) Implement near miss activities (implement as risk
detection training)3) Implement operation of 5S (sort, set in order, shine,
standardize, sustain)safe
4 Secure
operations

1) Effectively utilize drive recorders
2) Implement accompanying guidance3) Educate drivers
4) Implement transportation skills content withnationwide worksite participation

Uniformization of) Implement accompanying guidance
5 container exchange 12) Educate drivers
work
health6 Implement
checkups

Implement health checkups Implement regulardiagnoses and follow-up checkups

aptitude
7 Implement
diagnoses

Implement general, initial, age, and specified diagnoses
All drivers (implement again in 2 years)

and share
8 Publish
information

1) Update home pages
2) Utilize internal postings

emergency 1) Develop manual
9 Implement
response training
2) Implement training
accidents /10 No
violations awards

1) Acquire driver record certification (3 years)
2) Award at safety meetings

Initiatives for
11 environmental
contribution businessParticipate in Tokyo Trucking Associationʼs “Green Eco
Project” and implement awards system

Achievement status

1

Reduce vehicle accidents
Zero severe accidents
Reduce other vehicle accidents by 50%
or less compared to previous year

Establish safe driving throughimplementation of drive recorders

2

Thorough implementation of transportation
safety management system
Educate employees to spread awarenessto all employees

Spread awareness throughinternal audits and training

3

Acquire and renew G Mark
(excellent safety workplace)

Acquired transportation businessaccreditation at all 38 worksites
Tohoku: 10, Chubu: 5, Kansai: 2

4Implement traffic safety measures meetings
1) Research actual accidents and prevent
reoccurrence2) R e p o r t d e t a i l s o f m e e t i n g s t oheadquarters

Conduct analysis and reportto headquarters at safetymeasures meetings

5

Implement near miss activities
1) Utilize driver reports and drive recorder
videos2) Utilize in accident prediction training

Promote near miss activities

6

Share information
Prepare internal postings (organizational
charts, annual targets, posters)

Spread awareness by posting
annual targets, etc.

7

Implement risk management
1) Improve internal and external facilities(Risk assessment)2) Develop and spread awareness ofcrisis management measures andprevention measures

E x t r a c t i s s u e a re a s a n d
implement countermeasures

8

Implement IT inspection system

Implement at some worksites

9

Participate in Green-Eco Project
Winning Top Runner award

All business sites in Kansai
participate

34

Organizational system to secure transportation safety
The Group views transportation safety management as an important mission, acknowledges it as an important area
where top management should be directly involved, and has established a management structure. The Company
issues directives promptly and surely.

Transportation security management
The Group has established logistics companies in Tohoku, Kanto,
Chubu, and Kansai regions. The holding company Logitri Holdings
Co., Ltd. owns each of them as the Logitri Group.
The Logitri Group realizes stable supply of energy through safe,
secure, and promote logistics services.
Each year, we hold a delivery skills contest to spread awareness of
security, ensure the implementation of reliable inspection services as
an accredited security organization, and to further improve the qualityof delivery services. The delivery skills contest is comprised of theacts actually involved in transportation. Everything from vehicle
driving, customer interaction, careful stock taking, speedy and carefuldelivery and installation of compressed gas cylinders is subject toGovernancejudging. Within these processes, the most important task isconfirmation. Confirmation and reconfirmation by pointing is done
covering all aspects from the vehicle surroundings to sources of heatand obstacles around where the cylinders are installed, truck
elevators, the transportation route, smells around the cylinders, anddetailed parts.
Under the slogan of “ Taking on the challenge to achieve zeroaccidents in all areas with the highest priority on safety and security,”
the entire Logitri Group is working hard to achieve accident-free andviolation-free operations, and to ensure safe driving and reliable
delivery operations every day.

Logitri Tohoku Co., Ltd.
Logitri Holdings, Co., Ltd.

Logitri Chubu Co., Ltd.
Logitri Kansai Co., Ltd.

Presidents at Logitri
companies

Transportation
management director
Management
director

Area manager

Worksitemanager

Transportation manager
Facility manager

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

33

Taking on the challenge to achieve
zero accidents in all areas with thehighest priority on safety and security

Stable procurement of LPG and petroleum products

Stable supply of energy

SocialTransportation safety management safety basic policy（

Stable supply of energy/electricity

Environment

Introduction

Security and quality management for customers

Security and quality management for customers
Basic approach● Energy ●The Mitsuuroko Group takes efforts to secure safety under a basic policy that there are no sales without security.
To prepare for emergency situations, such as gas leaks, the Company has built a 24 hours a day, 365 days a year
emergency dispatch system and has established a strong security system to prepare against all situations to ensure
customer safety.
As laws are revised over time, we will constantly transmit and support the newest security system strengthening
information, heighten awareness of disaster prevention mindsets, and advance voluntary security measures.

The Company has constructed a structure that can respond to various
situations 24 hours a day, 365 days a year in order to ensure the safety ofcustomers. During morning meetings, employees learn to use CPR and
AED to prepare for emergencies. In addition to training of hot springs
facilities, Company employees and tenant store employees gather twice ayear and confirm the evacuation path during emergencies.
At SPA EAS: Yokohama Onsen-Natural Hot-spring, the Company changes
the hot springs water each day, performs bi-annual water quality
examinations, and uses mild materials to create an environment where
customers feel comfortable to use the facilities. Also, the Company has
implemented “Onsen IoT” that can display the status of crowding on asmartphone or internal displays by counting in real-time the number ofusers in each location through a stereo camera installed in key areas in thefacility (changing areas, break areas, restaurants, etc.).
Because customers can check on the status of crowding in the facility
using the specialized app, it is possible to use facilities while avoiding
crowds. This is very helpful in both giving customers a relaxing experienceand preventing the spread of the COVID-19 virus.

Initiatives for safety / quality management
Based on the frequency of legal inspections (at least once every four years) established in the Act on the
Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas, the Mitsuuroko Group
performs advanced management two months before. We strive to ensure safety and not exceed legal deadlines
in case of emergency in accordance with customer circumstances.

Thorough expiry
management forprovided equipment

The Mitsuuroko Group performs manufacturer guarantee expiry management on all provided equipment, including
adjusters, high / low pressure hoses, alarm devices, etc., in addition to expiry management for gas meters asestablished in laws. Through this, the Company aims to eliminate equipment malfunction due to wear and tear.

In addition to development and leasing of residential homes, office buildings, and commercial facilities, the Mitsuuroko
Group offers proposals to expand the range of people s living and aim for harmony between regions through business.
We pay close attention to not only the quality of buildings, but also the quality of services provided to customers as
we take ongoing efforts to improve customer satisfaction.

Measures to eliminate
carbon monoxide
poisoning accidents

When using gas equipment that has degraded over time and does not have a safety device (incomplete
combustion prevention device), there is a risk of carbon monoxide poisoning due to incomplete combustion of
the LPG. The Group strives to eliminate carbon monoxide poisoning accidents by regularly spreading awarenessof safety and promoting exchange of related equipment for customers who use gas equipment that does nothave a safety device.
Also, the Group is taking efforts for safety management by promoting installation of operational ventilation alarm
devices for commercial kitchens, etc.

● Wellness ●In the bottled water business department, we have acquired JFS-B certification, an international-level food safety
Acquisition of JFS-B
management standard, in our Yamanakako Plant, Narusawa Plant, and Gifu Yoro Plant as we create products
certification, anwith uncompromised quality.
international-level food * JFS certification is a food safety management standard from Japan that is aligned to international standards and centers on thesafety management
three axes of food safety management system (FSM), hazard controls (HACCP), and good manufacturing practice. It wasdeveloped by the Japan Food Safety Management Association (JFSM), which was established under the guidance of the Ministry
standard

EnergyWe pursue Customer Delight and have established the 4S (Safety, Smile, Special, and Surprise) as important
indicators in the Wellness business.
● Safety: Safety is prioritized in all things.
● Smile: Facilities where customers and staff naturally smile.
● Special: Giving hospitality to special people.
● Surprise: Small joys one after another can move the hearts of customers and employees alike and create sharing oftouching moments.

of Agriculture, Forestry and Fisheries.

● Foods ●The Group positions security as its most important mission as an energy
solutions business operator, acknowledges it as an important area where
top management should be directly involved, and has established amanagement structure. In order to ensure safety, we have given direct
authority of the safety management department to the President of
Mitsuuroko Vessel Co., Ltd., who will issue prompt and clear directives.
We are efficiently managing 36 filling stations and 70 stores and havecentralized response to customer inquiries and messages at specialized
call centers.

The company formed hazard controls teams (HACCP) at each factory inthe bottled water business, completed products were removed by lot,
given voluntary inspection for micro-organisms, and shipped if theypassed the examination. We are striving for quality maintenance andmanagement, such as implementing regular inspections of water sources
and products by external public institutions.
In inspections, inspectors with proper training, knowledge, and skills use
specialized equipment for chemical analysis, micro-organism analysis, andforeign substance analysis.
The company rigorously selects “ingredients that have a clear distribution
path” and implements “safe and secure management of owned kitchensin the operation of restaurants,” and in-facility stores and cafeterias,
operation of DELICATERIA (delicatessens directly under Mitsuuroko
Grocery), a retail cooperative, a hamburger restaurant chain, freshbakeries, and cafés, and more, all run under the Foods Business. In
product development, use external “eyes” to perform “food productexamination that pursue safety” and make daily improvement to aim forthese HACCP management quality standards.

● Electricity ●Regarding supply and demand of electricity, we have constructed asystem that enables cooperation with power transmission companies toboost the security of electricity supply. In the power generation business,
we have staff working by shifts at plants 24/7 as well as remote monitoringfrom headquarters. By this, we have constructed a system capable ofconstant monitoring of power plants as we take efforts to secure thesafety of our power generation business.

Initiatives for customer
satisfaction

In order to provide properties with added value that will satisfy many customers, the Group is proactively adding
features to both new and existing properties, such as Wi-Fi connectivity, car sharing services in the property
grounds, a call center that can respond to tenant requests 24 hours a day, measures to prevent illegal entry ofsuspicious persons through elevators that only stop on certain floors and have a hands-free system, adoption ofenergy-saving products, such as air conditioning equipment that limits energy output, and water-saving toilets.
In commercial facilities, the Group collects the opinions of tenants and customers by proactively establishing
information sharing and communication opportunities with tenants, such as monthly store director meetings
where the representatives of in-facility stores gather. Through this, the Group is taking efforts to create facilities
that are easy to use.
We implement various measures to reflect the voices of customers into business activities and are striving to
improve customer satisfaction as we proceed with quality improvements from a customer perspective.

COVID-19 measures

At SPA EAS and HAMABOWL, we disinfected the facilities and applied anti-bacterial / anti-viral glass coating inJanuary 2021. This glass coating has cleared the SIAA standards (safety of antibacterial processed products) andis highly safe. We also increased the pace of facility sterilization to once every 30 minutes and maximized ventilation.
Also, in SPA EAS, we implemented IoT for customers to remain safe and avoid crowded areas by visualizing thecrowding in each area.

Foods

Structure for safety assurance and quality management● Energy ●Selection of business
partners and initiatives

In the selection of business partners, the Group makes decisions through proper and fair procedures, basedon the “JFS-B certification” related to food safety, in order to meet stakeholder expectations and contribute tosociety in terms of the procurement of raw materials, in addition to quality, cost, deadlines.
Carlʼs Jr. Japan Inc., which operates a burger restaurant chain, uses 100% Australian beef in its beef patties as it
focuses on high quality materials that are safe and secure. Australia is the top beef exporting nation in the world.
It has been proactive in initiatives toward safety of beef products, quality management, and traceability. Beef is
produced under the strictest management structure in the world, from ranches to the consumer.
By selecting only the best suppliers from Australia, it can provide safe and high-quality beef. The Company willcontinue to develop a relationship of trust so that we can gain the understanding and cooperation of business
partners.

RealestateWellness

36

SUSTAINABILITY REPORT 2021

Development of strict internal
standards (Mitsuuroko
Standards) that go beyondlaws and regulations● Real estate ●ESG Data

The Company has constructed a structure based on quality management
standards in the planning and operation of businesses to deliver “safety
and security” to customers.
In terms of planning, the Company prepares an annual plan of laws andregulation inspections and a yearly repair plan and conducts regularchecks to ensure these plans are properly implemented. At the same time,in terms of operations, the company not only performs regular equipment
inspection and corrective work, does patrol inspections, reports, installs
security cameras, and implements regular cleaning through a managementcompany, it also implements, updates, and eliminates specialized andshared equipment, such as LED lighting, as necessary.
We have formed a system to confirm the status of damage during natural
disasters such as earthquakes or flooding through a managementcompany. The Company is striving to prevent damage by implementing
water gates and water sealing plates on properties with a relatively highrisk of flooding.

The Mitsuuroko Group performs product design from customer perspectives and sufficiently confirms the safety of the
products and manufacturing process to deliver safe, secure, and delicious products to customers.
In each Group factory, we take efforts for ongoing improvement of issues extracted and regular internal audits basedon proprietary food security audit standards in addition to our daily quality management.

Mitsuuroko Group Holdings Co.,Ltd.

Governance● Wellness ●● Foods ●35

Social● Real estate ●● Electricity ●In each power plant, we are continuing efforts to achieve no accidents and disasters at all sites by implementing andconfirming site patrols by safety promotors, crisis detection actions, pointing / calling, compliance of laws andregulations, voluntary safety / security audits, and 5S activities.

Environment

Introduction

Disaster prevention measures

Basic approach

The Mitsuuroko Group has constructed an emergency dispatch system that operates 24 hours a day, 365 days a year
to prepare against unexpected trouble, such as gas leaks. We have established a strong security structure to prepare
against any situation in order to ensure the safety of customers.
To strengthen resilience and respond to electricity supply constraints and natural disasters that have grown wider inscope and more intense recently, the Group reinforced the supply infrastructure, including self-defense capabilities,
and strengthened the link with business operators for quick restoration. The Group is further strengthening structurebuilding and supply-demand adjustment function to secure stable supply of energy during disasters.

LPG can be carried by filling canisters. It is known as a
“ segmented source of energy ” that can be used
independently and inspected and repaired on an individual
basis during disasters.
The Mitsuuroko Group is strengthening disastercountermeasures and established a strong system tominimize the impact of disaster on customer lives.

SocialGovernance

ESG Data

Disaster prevention measures at power plants

Disaster prevention measures

Disaster-resistant LPG

Environment

Earthquake countermeasures
LPG is known as an energy that is strong against
earthquakes. However, the Group promotes the installation
and attachment of safety equipment, including micron
meters, to prepare against unexpected circumstances. We
have established an emergency dispatch system that
operates 24 hours a day, 365 days a year through a callcenter.

Mitsuuroko Green Energy owns wind power plants,
biomass power plants, and solar power plants. Therefore, it
has established emergency response standards andprepared a disaster response manual for the objective of
forming a response organization that can respond promptly
and properly when natural disasters, fires, and explosions
occur at power plants.
Under the basic policy, in case of a disaster, all Company
employees are to come together and take efforts tocontribute to local communities, preserve company assets,
prevent secondary disasters, quickly restore equipment,
and prevent reoccurrence of disasters as well as prioritizesaving human lives.
In the following cases, the Company shall adopt an
extremely strict system, such as establishing an emergency
response organization automatically during disasters,
regardless of the status of damage. In addition, the chief
officer can establish an emergency response organization
when deemed necessary to attend to the response.

An earthquake with an intensity of lower 6 or stronger(on the Japanese scale of 7) hits areas where power
plants are located.
Alarm declaration based on large-scale earthquake
countermeasure special mechanism and warning
related to Tokai earthquakes issued

Also, the security management office manages the
emergency countermeasure headquarters and local
countermeasures headquarters to prepare against
emergencies. This office regularly holds disaster prevention
drills for cases of severe disasters at power plants with
headquarters. Specifically, the office holds “alarm training”
and “ disaster prevention drills ” at least once per year,
heightens awareness of disaster prevention among
employees, and takes efforts for education.

Emergency response system

Development and application of business continuity plan (BCP)The Group is strengthening the below measures to prevent
leakage of LPG canisters through storm and flooding.

The Mitsuuroko Group has developed a BCP and disaster
response manual to prepare against large-scale disasters
and the recent spread of the COVID-19 pandemic. The
Group regularly confirms the communications system andimportant facilities, conducts accident response training
and dispatch training, and maintains a constant awarenessto respond smoothly to emergencies.

1

Install disaster prevention nets to prevent leakage fromplatforms and secure lashing belts at LPG canister filling areas.

2

Secure double canister chains and promote the attachment oftension-type high-pressure hoses as disaster canister leakage
prevention for LPG canisters installed in customer homes.

Confirmation of safety and grasping damage status
Installation of emergency response headquarters
during disasters
Disaster manual (action flow)
Implement business continuation strategy based on
the degree of impact on business

Implementation of safety
confirmation system (emergency call system)
The Mitsuuroko Group has implemented a safety
confirmation system (emergency call system) at all businesscompanies, not just in the Energy Solutions Business andPower & Electricity Business. The Group has constructed asystem that can confirm the safety of employees by PC orphone, speedily confirm the safety of employees or theirfamily members, and quickly take action for customer
response and business continuation.

Implement disaster prevention drills
All Group companies conduct disaster prevention drills(group training or safety confirmation drills) at least once a
year, remain highly aware of disaster prevention practices,and ensure that they can communicate and take action
without issue during disasters.

Emergency countermeasure
headquarters

38

Emergency countermeasure
headquarters director
Emergency countermeasure
headquarters deputy director

Local countermeasure
headquarters

Security management
office director

Local countermeasure
headquarters director

Emergency countermeasure
headquarters advisor

Local countermeasure
headquarters deputy director

Safety confirmation teamEvacuation guidance teamInformation teamSupport teamRescue team

Agent

Employees other than above

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

37

Storm and flood measures

Introduction

Respect of human rigahts/Health-focused management

Respect of human rights

needs.
We have established the “Mitsuuroko Group Human Rights
Policy” to respect the human rights of all people either
directly or indirectly related to all processes in our businessactivities. We will continue to take efforts to respect thehuman rights of various stakeholders.

Mitsuuroko Group Human Rights Policy

Mitsuuroko Group Holdings Co.,Ltd.

39

2Application scopeThis policy applies to all officers and employees of the Mitsuuroko
Group. The Mitsuuroko Group also requests that all stakeholders
respect and refrain from violating the human rights of others.

3

Respect of human rights in business activities
The Mitsuuroko Group strives to avoid or mitigate the negative
impact on the human rights of all stakeholders related to the
Mitsuuroko group in all processes of business activities. The
Group aims to construct a value chain that can fulfill the
responsibility to respect human rights established in this policy.

4

Human rights due diligence
The Mitsuuroko Group identifies the impact of its businessactivities on stakeholder human rights and strives to prevent andmitigate issues by continuing the construction / operation ofhuman rights due diligence systems.

5

Aid
The Mitsuuroko Group takes efforts to aid and correct negative
impact or the possibility of negative impact on human rights ofstakeholders in its business activities.

6

Information disclosure
The Mitsuuroko Group discloses information through its website,
including the progress status of its own human rights respect
initiatives and those results.

7

Dialogue and consultation
In the development of this policy, the Mitsuuroko Group utilizes
expert knowledge related to human rights from independent,
external institutions and earnestly holds dialogues andconsultations with related stakeholders.

8

Education / training
The Mitsuuroko Group performs appropriate education andtraining of officers and employees, incorporates this policy in all
business activities, and executes it effectively.

9

Important themes related to human rights in the Mitsuuroko Group
The Mitsuuroko Group has established important themes related
to human rights below and aims to realize a work environmentthat feels worthwhile and respects human rights.
(1) Prohibition of discrimination / harassment
The Mitsuuroko Group does not accept any sort of discrimination orharassment on the basis of race, ethnicity, tribe, nationality, religion, beliefs,
origin, gender, age, disabilities, or sexual orientation, etc.

(2) Prohibition of child labor / forced labor
The Mitsuuroko Group prohibits child labor, forced labor, human trafficking,and other improper labor practices.

(3) Respect for basic rights of labor
The Mitsuuroko Group respects the basic rights of labor of employees,
including the freedom of association, rights to unionize, and rights of collective
bargaining.

Health-focused management promotion system

We, the Mitsuuroko Group, aim to create a workplace where
each and every employee can work energetically and vigorously
by working on health promotion in order to lead a healthy
and cheerful life both mentally and physically.
Representative Director and Chief Executive Officer

Mitsuuroko Group Health Promotion Activities Policy
The Mitsuuroko Group wants to continue to be
helpful to customer lives as “a Lifestyle Producer”
by supplying stable energy and food and drink andreal estate services. The Group also aims to be acompany that makes customers feel “ Every Day,
Special! ” with a mindset that each day is special
and full of new opportunities. In order to realize
this, it is essential for each and every employee tohealthy in body and mind. The Mitsuuroko Groupwill continue to create a workplace environment
where each employee and work in good health andpromote initiatives that contribute to the health of
employees.

Director and Group CIDO

* Chief Inclusion, Diversity Officer

In charge of health-focused management

40
Health Management Business
Promotion Committee(Collaborative health)

Mitsuuroko Health
Insurance Association

Mitsuuroko Group
Holdings Co., Ltd.
Each Mitsuuroko
Group company

Collaboration
National
Mitsuuroko
Labor UnionManagers in charge of implementing health-focusedmanagement at each site
Persons in charge of implementing health-focusedmanagement at each site(4) Promotion of diversity and inclusion
The Mitsuuroko Group respects each employee as an individual and strives toestablish a work environment where employees can do their best to maximize
their capabilities and utilize their differences.

(5) Initiatives to ensure safe work environments and healthfocused management
The Mitsuuroko Group aims to ensure a pleasant, safe, and hygienic workplaceenvironment and to create a workplace where each and every employee canwork energetically and vigorously in order to lead a healthy and cheerful life
both mentally and physically.

(6) Support for work-life balance
The Mitsuuroko Group strives to support the realization of work-life balance foreach employee.

InsuredDependents

SUSTAINABILITY REPORT 2021

The Mitsuuroko Group promotes initiatives that comply with theUnited Nations “ Guiding Principles on Business and Human
Rights, ” and pursues a method to maximize the respect ofinternational human rights codes, including the OECD “Guidelines
for Multinational Enterprises,” the ILOʼs “Declaration of Principles
concerning Multinational Enterprises” and Social Policy, and theUnited Nationsʼ International Bill of Human Rights.
Along with complying with the laws and regulations of countries /regions where the Company performs business activities, we also
pursue a means to respect international human rights codes when
there are contrasts between them and the laws and regulations of
the country / region.

ESG Data

Understanding that human resources are our greatest asset, the Mitsuuroko Group considers the health managementof employees, who are the source of our future growth as an important management issue.
The Group respects that people face diverse life stages, aim to create workplaces for the autonomous and proactive
management of their own health, and support employee health promotion through various initiatives and informationtransmission.
In the future, the Group will continue to perform various initiatives to promote physical and mental health that can
prevent disease, establish workstyles that fit new normal, and promote enhanced health-focused management as aleading company

Mitsuuroko Group Healthcare Declaration

Mitsuuroko Group Human Rights Policy

Basic principles

Governance

Basic approach

In the Charter of Corporate Ethics, the Mitsuuroko Group has established the rule to respect the personality andindividuality of employees and create a comfortable and enriched work environment and has respected human rights
and acted without discrimination.
In recent years, through various activities, there has been a spreading awareness of human rights that view humans
as human. There is an increased understanding for the need to respect human rights as much as possible.
Under these circumstances, the Mitsuuroko Group believes that it is important to perform business activities inaccordance with international codes regarding human rights to prevent any sort of human rights issues in therelationship with all stakeholders, including not only employees, but also business partners and customers, as we aim
to further improve corporate value.

1

SocialHealth-focused management

Basic approach

Based on the management philosophy of “As a Lifestyle
Producer, we consistently conduct our business withintegrity and from the customer ʼs perspective ” and theCharter of Corporate Ethics, the Mitsuuroko Group is taking
efforts to realize lifestyles that are gentle on humans andthe Earth by providing new value for society and consumer

Environment

Introduction

Health-focused management

Continue to provide 100% of employees with health checkups

5

The Mitsuuroko Group is working to ensure that 100% of employees
receive health checkups and take post-checkup measures to preventthe onset and severity of lifestyle-related diseases and support healthpromotion. In addition, as part of a collaboration with the healthinsurance association, the Group and association are working to
distribute secondary examination diagnosis recommendation letters.
2

3

4

Measures to prevent passive smoking

Support for new normal
We have created an environment through new workstyles andpromoted telework that utilized ICT and prioritized safety and health of
all stakeholders. Focusing on the mental and physical care during
telework, we have created a human resource and environmental
structure for self-care management. While adapting to new value, wewill promote health from multiple angles by enhancing health literacy.

6

Recent initiatives (from April 2020)

From April 1 , 2020 , the Group banned smoking at all Group
companies during working hours. From October 1, 2021, we have
implemented a total ban on smoking on our premises and eliminatedsmoking areas on the grounds. The Group will continue to take efforts
to prevent passive smoking for employees, customers, and otherrelated persons. From October 1, 2021, we also designated the 22ndof every month as No Smoking Day to prevent smoking for a day, bothduring work hours and in private. By stopping smoking for one day,smokers will hopefully reflect on their own smoking habits. Also, theGroup aims to lower the smoking rate through seminars and support
for anti-smoking outpatient visit expenses.

(1) Walking campaign

Women s health measures(3) Adult physical fitness test

Seminars for female employees and managers of either gender are
held on the themes of female health, life events, and careers. We
support womenʼs health and achievement in the workplace throughcervical cancer screenings for female employees during their regular
health checkups.

(4) Adult voluntary research (food contest)

Mental health measures
In addition to internal consultation counters, the Group has establishedexternal consultation counters and established a system for mental
health consultation by specialists through phone, e-mail, andinterviews. Moreover, we have conducted mental health line caretraining for managers as we promote mental health care for employees.

SocialGovernance

ESG Data

Obtained certification as a Health & Productivity Management Outstanding Organization 2022 (White 500)

Initiatives for health-focused management
1

Environment

The Group holds a walking campaign this year as well and aims for
campaign entrants to walk at least one million steps during the set
time period. This campaign aims to promote health by increasing theopportunities to walk.
* This campaign is suspended in consideration of the spread of the COVID- 19
pandemic.

In March 2022, the Japan Health Council, in collaboration
with the Ministry of Economy, Trade and Industry,
recognized us as a “Health & Productivity Management
Outstanding Organization 2022 (White 500),” which honors
companies and corporations that practice particularly
excellent health-focused management.
Based on the” Mitsuuroko Group Charter of Corporate
E t h i c s ” a n d t h e “ M i t s u u ro k o G ro u p H e a l t h c a re
Declaration, ” the Group considers the support of theautonomous and proactive health management of
employees from a management perspective and is working
to promote health-focused management.

(2) Provision of health-conscious meals

At certain business sites of the Group, we provide “mini employee meals”
that are light and health-conscious to support the health of employees
through “food.” The Group plans to expand the business sites where “miniemployee meals” are implemented.
The Group held athletic seminars led by physical therapists. This was not
only an opportunity to learn about self-care, including occupational careand mindfulness, but also measure “strength,” “flexibility,” and “balance”
as participants looked back at their own health.

Employees made rice balls based on the Mitsuuroko “triangle” logo for
a company contest. Through this contest, employees could think about
food, the fun of cooking, and nutrition. It aimed to invigorate communicate
between employees and families.

(5) Radio calisthenics / hand clap

Since FY2021, this has been regularly held online, primarily for female
employees. In addressing lack of exercise experienced with increased
telework, this also promotes communication through events and exchange.

Obtained certification as Sports Yell Company 2022
The Group was certified as a “Sports Yell Company” fromthe Japan Sports Agency for being a company thatproactively took measures for athletics in order to enhance
the health of all employees.
The Group advocates the goals as a Sports Yell Company,
conducts radio calisthenics and aerobics in women ʼ sgroups, and conducts training, such as the “adult physical.”In the future, the Group will proactively take measures forathletics in order to enhance the health of employees as
one initiative to promote health-focused management.
42

Indicators related to health-focused management

Achieve Healthcare
Declaration
Mental and physical health
Improve productivity
Invigorate workplaces

Improvement ofhealth literacy

Construct workplace environment so thateach employee can work in good health

New normal

Mental health

Women s health

Measures to prevent
passive smoking

Changebehavior

Mitigate risk from health issues

Healthinvestments
In charge of health-focused management (HealthManagement Business Promotion Committee)

Response to COVID-19 pandemic

Indicator
Rate of receiving
regular medical
examinations

Changeconsciousness

ActualTarget

FY2019 FY2020

FY2021 FY2022 FY2023

100%

100%

100%

100%

100%

Rate of receiving
thoroughexaminations

56.50% 56.10%

70%

80%

90%

Rate ofmaintaining
proper weight62.60% 63.50%

67%

75%

80%

Rate ofundergoingstress checks

97.50% 98.60%

100%

100%

100%

Rate of smoking

37.50% 33.40%

30%

24%

18%

Rate of regularexercise23.20%

30%

35%

40%

25%

* FY2019 and FY2020 figures are actual results; FY2021 and later
are targets.

The Group prioritizes the health and safety of customers,
business partners, employees, and their families in eachregion across Japan, based on the headquarters. All
employees share an awareness of preventing infection andthe spread of the virus as the Group aimed to cut going
into the office by 70%, promote working in group shifts,
remote work and staggered working hours, and continue

services for customers and security measures, and strove
to maximize the retention of regional energy life lines.
The Group is also striving to prevent the spread of the virus
by implementing best practices, such as encouraging basicanti-virus measures like masks, hand-washing, gurgling,
and applying disinfectant on the hands as well as avoiding
going out in non-emergency situations.

SUSTAINABILITY REPORT 2021

Health-focused management strategic map

Continue to provide 100% of
employees with health checkups

Mitsuuroko Group Holdings Co.,Ltd.

41

Introduction

Diversity and inclusion

Environment

SocialGovernance

ESG Data

New workstyles

Diversity and inclusion
Basic approach

In order to provide good services to our customers as a Lifestyle Producer in a diverse society, we are promoting
diversity and inclusion at the Group because we believe that it is essential to be a company where diverse employees
can fully demonstrate their abilities and work with vigor.

The Group aims to establish an environment where
employees of differing backgrounds are able tomaximize their abilities by realizing “new workstyles”
that enables employees to have a flexible workstyledepending on the format of the business. The Groupalso hopes that employees will be able to live andwork in the way they feel fits them the best. The
Group implemented remote work for employees who

are taking care of children or elderly relatives in 2018
and formed a system where the entire Group canwork remotely. When COVID-19 began to spread, theGroup proactively implemented work from home. We
will continue to promote “new workstyles,” including
hybrid workstyles that combine remote work andoffice work.

Major Group initiatives

Promotion of women s activities(1) Numerical targets
The Group took efforts to promote womenʼs activities
as we aimed for the targets announced on November
12, 2014. We once against established targets asfollows on September 17, 2021.
Ratio of female employees *1 *2
Target as of March 2027:

The ratio of female employees across all Group companies
as of May 2021 was 29%. The ratio of female employees asof September 2014 was 25%, so this figure clearly increasedin the past seven years. The Group will further increase thisto 33% by March 2027.

Ratio of female managers *1 *3
Target as of March 2027:

11%

The ratio of female managers across all Group companies asof May 2021 was 7.3%. The ratio of female managers as of
September 2014 was 4.2%, so this figure clearly increasedin the past seven years. The Group will further increase thisto 11% by March 2027.

* 1 The calculation of this ratio is based on a figure that excludes
dispatched employees, part-time employees, and officers.
*2 Excludes Logitri Tohoku, Logitri Chubu, and Logitri Kansai, which have
limitations on female employment due to operations that require
carrying heavy loads as an LPG transmission company. Eligible
employees as of end-May 2021: 1,433* 3 Calculated as (female managers / total manager positions inconsolidated Group (excluding Logitri Tohoku, Logitri Chubu, andLogitri Kansai)) x 100(2) Hold health seminars for women
In FY2020, in cooperation with the Mitsuuroko Health
Insurance Association, the Group held “ women ʼ shealth seminars” titled “My well-being in an age of
COVID-19” as training for Group female employees.
Based on the theme of “hints to live pleasant days inany situation,” programs were held on body work andself-care that can be done at home, mitigation stressand isolation that comes from remote work due tothe COVID-19 pandemic, and womenʼs health. There
was also time to split into small groups and exchange
ideas. This became an opportunity for exchange forfemale employees.
(3) Obtained Kurumin as Group company
Mitsuuroko Creative Solutions Co., Ltd. achieved thetargets set in its action plan based on the Act on
Advancement of Measures to Support Raising NextGeneration Children and received “ Kurumin ”
certification in August 2019.
We are working to create a workplace environment
where employees can balance work and childcare bypromoting the use of childcare leave and paid leave
and increasing the usage rate by employees.

Provide PCs and mobile phones to complete tasks without going into the office

Recommend meetings through Teams
Recommend online meetings instead of in-person meetings in order to prevent the spread of COVID-19

Implement system that can receive outside calls on PCs (Uni Talk)
Implement system to receive outside calls without going to the office to enable flexible remote work

Implement of hourly paid leave
Enable paid leave in hourly units to improve work-life balance

Implement varying work schedules that can be selected
Implement varying work schedules that can be selected based on individual lifestyle and workstyle (ex: there are six
selectable shifts at Mitsuuroko Group Holdings Co., Ltd.)44SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

43

33%

Provide tools that enable remote work

Introduction

Human resource development/Local communities

Human resource development

Evaluation system
The Group examines multi-faceted criteria to support
employee skill development, promote utilization of skills,
accurately grasp the degree of achievement of duties,
perform on-the-job training, give fair and accurate
Target management
Each employee sets their own targets twice a year. The Group has
adopted a “target management” system to evaluate the achievement /contribution to those targets and provide proper benefits.
The Group performs multi-sided evaluations, including performance
evaluations that assess the achievement of performance targets andimportant topics as well as achievement of duties that target sharingof organizational targets, operational status evaluations that asses theappropriateness of internal controls, and evaluations of individual
contributions in each department and contribution and achievement ofoperations improvement targets.

evaluations, support challenges and fair promotions tohigher positions, and contribute to a fair treatment system
in promotion, transfer, positioning, education, etc. throughall skills.
2

Competency evaluation
In order to develop employees, the Group has adopted “competency
evaluations” to grasp and realize actions expected in operational
achievements once a year, and evaluate the degree of action / skill
usage.

Training system
Initiatives to improve employee capabilities

The Group has taken efforts to establish an employee skill
improvement program that aims to improve the skills andmotivation of employees. The Group aims to improve the
Details

corporate value of the entire Group by creating anorganization with strong individual growth.
Objective

Implementation
frequency

Training to teach and develop the skills, knowledge, and mindset needed in working through teaching the Mitsuuroko Group Once a year
management philosophy, business details, and basic business manners.
Training aimed at learning duties expected of management, leadership in times of extreme external environmental changes, Once a year
New management training
and communication skills with members, as well as the ability to use this knowledge in practiceTraining for management to improve motivation of entire organization by once again raising awareness of appropriate Twice a year
Evaluator training
evaluation methods and communication techniques with members
Training aimed at leaders, the central pillar of teams, to expand perspectives, optimize the overall organization, and learn Once a year
Leader training
team-building
for all officers and employees of the Group to reaffirm basic knowledge of harassment and how to respond to it, with Once a year
Harassment prevention training Training
the aim of preventing harassment
Education related to information security and personal information protection aimed at boosting awareness of security threats Once a year
IT compliance training
among each Group officer and employee
For managers Training to foster knowledge among managers so that they can take care of their subordinates early without
overlooking signs of mental health problems
Training related to mental healthOnce a year
and women-specific diseases
For female employees Training for female employees to propose care for themselves and, re-examine their own lifestyles bylearning about physical changes corresponding with female diseases and age
Mitsuuroko-style health-focused
Training that introduces “new normal in an age of COVID-19” and initiatives for health-focused management in the Mitsuuroko Once a year
management e-learning
Group, teaches knowledge to live healthy lives in an age of change, and encourage stronger and more flexible lives
Dispatch employees to overseas companies and schools to experience different cultures as well as languages, and develop Once/twice aOverseas training
global human resources
year
Fostera
corporate
culturewhere
employees
canfreelytakeonchallenges
andexpandopportunitiesfornewbusiness
Incubation system
As needed
creation
MBA acquisition support
Applications
Law school support
Support system for acquisition of specialized and advanced knowledge and improvement of skills of employees
received:
Once a year
Correspondence university support
Sales presentation
Improvement of proposal skills and discovery of new businesses
Once a year
Training for energy company
Training for store managers aimed at sharing current issues and improving leadership and communication skills to involve Twice a year
store managers
othersBuilding service engineer
Training
to acquire certification as an LNG technician
Twice a year
training in Isesaki
Technical training for new
Training to learn the basics about bread. At the fifth training session, a presentation is given on the theme of “inventing new 5 times in 2 years
employees (Conducted only at products” and the best entries are developed into products and sold in the store. (Currently not conducted due to the spread after joining theof COVID-19)
Company
AzabuJuban Mont-Thabor)
New employee training

2

Acceptance of practical training from various organizations and schools
Details of activities on

ESG Data

P.47

We at the Mitsuuroko Group believe that contributing to society through our core business is the role we should play, andwe have been supported by many stakeholders, including local communities and society, in the course of our business.
As a corporate citizen in the local communities, we will do our best to do what we can and what we should do, even insmall ways.

Fund-raising activities for the Christel Vie Ensemble
Foundation (Christel Foundation)

Participation in the National Movement to Support Children s
Future to protect the future of children through charity events

We sympathize with the activities of the “ Christel
Foundation,” which is working to improve animal welfare,eliminate the killing of cats and dogs, and conserve
biodiversity, and we support their fund-raising activities.
Donation boxes are placed in stores, cafeterias, andrestaurants in hospitals and park facilities, as well as involuntary chain stores operated by Mitsuuroko Provisions
Co., Ltd. The Mitsuuroko Group will continue to support theactivities of the Christel Foundation in order to save as
many lives as possible.

In support of the “National Movement to Support Childrenʼs
Future” (Secretariat of the National Movement to Support
Childrenʼs Future: Cabinet Office, Ministry of Education,
Culture, Sports, Science and Technology, Ministry of Health,Labour and Welfare, and the Welfare And Medical Service
Agency), which aims to connect the desire of each andevery one of us citizens to “do something” for children
suffering from poverty and turn it into action, we held acharity event through our sponsorship of the YOKOHAMADeNA BAYSTARSʼ title game. A portion of the proceedsfrom this charity event was donated to the “ Children ʼ s
Future Support Fund.”Together with local communities and society:
Service solutions for parents raising children
Mitsuuroko Vessel Co., Ltd. provides service solutions forwatching over children and family communication.
“ Mitsu-mail Imakoko, ” a GPS-based watchdog service
launched in July 2020 , enables parents to check thelocation of their children simply by holding a dedicated GPS
device, and notifies them of the arrival and departure of
their children at schools, parks, and other places theyfrequently visit.
It also provides information on local disaster prevention
facilities and notifies parents of the entry of their children
into pre-defined dangerous areas, and the service has been
well received by many parents and school staff.
We will continue to take on the challenge of creating
enriched lifestyles for the children who will lead the next
generation and for each and every one of our customers,
and through “mitsu-mail Imakoko, ” we will continue toprovide a new watchdog service that connects parents andchildren.

46

Activities to protect and nurture the forests around water collection sites
As part of activities to beautify the environment andcultivate water sources in the forests around Narusawa
Village in Yamanashi Prefecture ( “ Mitsuuroko ʼ s Forest
Narusawa ” ), where the Narusawa Plant of Mitsuuroko
Beverage Co., Ltd. draws water, and in the promenade( “ Mitsuuroko ʼ s Path ” ) in Nannou-cho, Kaizu City, Gifu
Prefecture, where the Gifu Yoro Plant of Mitsuuroko
Beverage Co., Ltd. draws water, Group employees, theirfamilies, and other concerned parties are engaged involunteer forest maintenance activities.

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

45

Governance

Basic approach

As a Lifestyle Producer, the Group promotes skill development and training for each employee in order to provide
better services to customers. The Group has established an environment to maximize those abilities.

1

SocialLocal communities

Basic approach

1

Environment

Introduction

Local communities

Revitalization of local communities National Mitsuuroko Association

Installation of co-working spaces

M e m b e r s t o re s o f t h e “ N a t i o n a l M i t s u u ro k oAssociation” are responsible for sales of our products
and have contact with approximately 800 , 000
households.
“National Mitsuuroko Association,” as an organizationthat provides excitement and peace of mind, flexibly
responds to the diverse needs of customers, ischosen by customers on a permanent basis, andestablishes strong ties. In addition, the organization
strives to build an environment where the strengths ofeach member store can be fully demonstrated andthey can always take up challenges.
The association is currently comprised of about 1,800
companies, and they are indispensable partners in
the provision of our services.
Our mission is to provide opportunities for thecompanies participating in the “National Mitsuuroko
Association” to continuously increase their value. The
services we are developing as new businesses will

The COVID- 19 pandemic has greatly impacted
workstyles in society. At SPA EAS: Yokohama OnsenNatural Hot-spring, we have installed a “co-working
space” unique to wide open spa facilities so thatusers in the local community can relax and refresh in
showers, saunas, and hammocks during breaks fromwork. In a co-working space that frames the coexistence of concentration and relaxation as “goingback and forth between hot and cold baths.”

eventually be rolled out nationwide through the“ National Mitsuuroko Association. ” It is also achallenge for us to remain a “strong organization”

even in a changing external environment.

ESG Data

From a desire to maintain the health of all residents
by erasing their daily tiredness and refreshing theirminds and bodies, SPA EAS made “ Yokohama
Resident Discount Day” for all Yokohama residents toenter the facility at a discount rate. The Company
would like to continue to develop various plans for
local residents.
people around them helps to foster a sense of unity
among the employees, and the workplace is full ofvitality.
We have also entered affiliate contracts withprofessional golfers Shiho Kawasaki, Shi Yuting, andMomoka Miura, and we will support these athletes as
they pursue their dreams and contribute to thedevelopment of sports culture.
We will continue to proactively engage in social
contribution activities through sports in order toenhance the corporate value of the entire Mitsuuroko
Group.

Acceptance of practical training from various organizations and schools
Sweet Style Co., Ltd. considers it an important social
responsibility for a company to support thedevelopment of the next generation of professional
human resources, and in past years has acceptedinternships from vocational schools.
We have provided them with practical training todeepen their understanding of the difficulties ofworking, the fun of bakery, and AzabuJuban MontThaborʼs commitment. Currently, due to the spread of
COVID- 19 , we are not accepting students forpractical training, but we plan to resume accepting
students after the infection is under control.

Governance48

Rain-Bowling Project activities
Employees of HAMABOWL utilize bowling pins readyfor disposal and visit local elementary schools andcare facilities as part of efforts to “reuse resources”
and “contribute to the local community” by doing
games and activities with the used pins. Called “RainBowling Project ” because of the rainbow colors
painted on the pins, this is one of ESG activities.

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

47

SocialYokohama resident discount day

Contribution to society through sports
W ith the launch of the Mitsuuroko Women ʼ sBasketball Team in 2012 and the establishment of the
Swimming Team in May 2021 , the Company
continues to make great strides based on thephilosophy of contributing to the revitalization of thelocal community and interaction through sports morethan ever before.
Each member participates in competitions whileworking as an employee, fostering responsibility andattitude as a member of society, and working
together with a high level of awareness. Having active
players around stimulates the employees who workwith them, and for the players, having supportive

Environment

Introduction

G (Governance)

Environment

SocialGovernance

ESG Data

Main target management indicators (KPIs)

Number of IT compliance training sessions
Yearly target

The Mitsuuroko Group aims to improve company value to all stakeholders and achieve sustainablegrowth. We maintain a basic corporate governance approach to construct an optimized management
structure and perform appropriate and healthy company operations.
We will continue to promote governance reforms to accelerate decision-making, strengthen theauditing function of management, and secure the transparency of company actions. We will takeinitiatives to strengthen risk management and improve compliance.

Once a year (for all employees)

Number of harassment training sessions
Yearly target

Once a year (for all employees)
51Compliance

55

Number of training sessions related to human rights

Cyber security

60

Yearly target

Personal information protection

62

Appropriate information disclosure

63

Supply chain management

64

GRI Standards table

65

50

Once a year (for all employees)

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

49

Corporate governanceIntroduction

Corporate governance

Basic approach

Position and responsibilities

Kohei Tajima

Representative Director and President
Chief Executive Officer
General management

AtsushiFutami

Director
Power & Electricity Business

Kazuhiro
KojimaDirector
Group Chief Financial Officer, Finance &Control, Legal & Secretary
Others (operational system support)

Corporate governance structure

ManabuSakanishi

Director
Energy Solutions Business

Jun
Kawakami

Director
Mobility Business, Others (leasing)

Motoyasu
Omori

Director
Foods Business

Goh WeeMeng

Director
Group Chief Technology Officer, Group
Chief Information Officer, Group GCIDO*Global Chief Inclusion and Diversity
Officer,Global planning, ICT planning(Planning, maintenance and promotionof information infrastructure)

Katsuhisa
Yanagisawa

Director (External)

Kaori Matsui

Director (External) (Independent)

Hideo
Sugahara

Director (External) (Independent)
Audit and Supervisory Committee
Member, tax accountant

Yoshiyuki
KawanoDirector (External) (Independent)
Audit and Supervisory Committee Member, doctor

Kei Tajima

Director (External)
Audit and Supervisory Committee Member

In June 2015, we shifted to a company with audit andsupervisory committee and established a Board of
Directors, Audit and Supervisory Committee, andAccounting Auditor.
The Company has improved the effectiveness of auditing
and supervision through auditing by Directors who are Audit
and Supervisory Committee Members with voting rights on
the Board of Directors, and further strengthened thesupervisory function of the Board of Directors. The
Company has strengthened the supervisory function of theBoard of Directors for business execution and ensured theappropriateness and transparency of the decision-making

process through the participation of five External Directors,
including three Directors who are Audit and Supervisory
Committee Members, in management.
With regard to the Board of Directors, by holding meetings
at least once a month, we are always striving to share
management issues and have established a system thatenables us to take action to resolve issues as soon as
possible.
In addition, since June 2017, we have had our first foreign
Director in the Company, and we are working to build amore advanced gover nance system that utilizes
management from a global perspective and AI and IoT.

Corporate governance structure
General meeting of shareholders

Cooperation

Election and dismissal

Audit andSupervisory
Committee

Cooperation

Internal Auditing

Election and dismissal

Board of Directors

Reporting

Reporting

Reporting

ESG Data

Risk Management Committee
Finance and accounting, compliance, safety(security, disaster), food

Audit

Representative
Director
Instructions

Disclosureof information

Supervision

Group companies

Areas where Directors are expected to excel in
The Company aims to improve company value to all
stakeholders and achieve sustainable growth. We maintaina basic corporate governance approach to construct an
optimized management structure and perform appropriatecompany operations. We have composed a balanced
Board of Directors by electing diverse personnel based on
their knowledge, experience, and capabilities as we aim to

Corporate
Financial
Human
Legal
management accounting resources
Risk
Management
CapitalPersonnel
management
strategy
policydevelopment

Auditing

Internal
controls
GovernanceOverseas

Socialenvironment

52*The above table does not display all of their expertise.

Audit,
etc.

Cooperation

Governanceaccelerate decision-making, strengthen the auditing
function of management, and secure the transparency ofcompany actions.
The Company expects that each Director will excel
particularly in the following fields and skills.

Remuneration, etc. for Directors
Policy on determining the remuneration, etc. for Officers

Basic policy

At the Board of Directors meeting held on January 20,
2021, the Company passed a resolution for a policy on
determining the remuneration, etc. for each individual
Director (excluding Directors who are Audit and Supervisory
Committee Members; the same shall apply hereinafter).
In addition, the Board of Directors has confirmed that themethod of determining the remuneration, etc. and the
remuneration, etc. that were determined for each individual
Director in the current fiscal year are consistent with theaforementioned policy, and are therefore judged to be inline with the policy.
The contents of the policy on determining the remuneration,etc. for each individual Director are as follows.

The basic policy of the Company is to determine theremuneration of Directors such that it is suitable andappropriate in light of Directorsʼ roles and responsibilities,
taking into consideration the business performance of theCompany. Specifically, remuneration for Executive Directors
consists of basic remuneration and a “Board Benefit Trust(BBT), ” which is a form of performance-linked stock
remuneration. Remuneration for External Directors, who areprimarily responsible for supervisory functions, consists
solely of basic remuneration in light of their duties.

Policy on determining basic remuneration (monetary remuneration)

Basic remuneration for the Companyʼs Directors consists offixed monthly remuneration and is determined after
comprehensively taking into consideration such factors as
remuneration levels at other companies, the businessperformance of the Company, and the levels of employee
salaries, in addition to the positions, responsibilities, etc., of
Directors.

SUSTAINABILITY REPORT 2021

Accounting
audit

Financial Auditor

Mitsuuroko Group Holdings Co.,Ltd.

Name

The Mitsuuroko Group s basic approach on corporate governance is to ensure that the Group s business is conductedin good faith and with transparency to customers, business partners, and shareholders, etc. in accordance with theCompanies Act, the Regulations for Enforcement of the Companies Act, the Financial Instruments and Exchange Act,
other laws and regulations, and the code of corporate conduct of financial instruments exchanges, and to fulfill theGroup s social mission in business activities.

Election and dismissal

SocialArea or skill expected to excel in

Corporate governance51

Environment

Introduction

Corporate governanceTotal amount of remuneration, etc. for FY2020

At the 107th Ordinary General Meeting of Shareholders
held on June 28, 2016, a resolution was adopted in relation
to a “Board Benefit Trust (BBT)” as a form of performancelinked stock remuneration for Directors (excluding External
Directors and Directors who are Audit and Supervisory
Committee Members; hereinafter, referred to as the “Eligible
Directors” in this and the following paragraph) (furthermore,
the trust established based on this plan is hereinafterreferred to as the “Trust”).
As set forth in the resolution, Eligible Directors are granted
several points for each fiscal year, determined after taking
into consideration their position, the degree of achievementof business performance targets (the degree ofachievement of the target for profit before income taxes on
the consolidated statement of income), and other factors,in accordance with the Officer Share Benefit Regulations(the maximum total number of points granted to Eligible
Directors per fiscal year shall be 100 , 000 points).
Furthermore, when granting the Companyʼs shares, etc.,
the points granted to Eligible Directors are converted at a
rate of one share of the Companyʼs common stock per
point (however, in the event of a share split, gratis allotmentof shares, consolidation of shares, etc., in relation to theCompanyʼs shares, the conversion ratio shall be reasonably
adjusted according to the ratio thereof, etc.). The numberof points for the Eligible Directors to be used as the basis
for the granting of the Companyʼs shares, etc., is calculatedby aggregating the points granted to the Eligible Directors

Total amount by type of
Total amount of remuneration, etc.(Millions of yen)
Officer category remuneration, etc.
Basic
Performance-linked(Millions of yen)remuneration stock remuneration

through the time of their retirement and then multiplying theresult by a predetermined coefficient set for each reason for
retirement (hereinafter, the points thus calculated arereferred to as the “confirmed number of points”).
If an Eligible Director retires and satisfies the beneficiary
requirements set forth in the Officer Share Benefit
Regulations, he or she will be granted a number of theCompany ʼ s shares corresponding to the “ confirmed
number of points” from the Trust after their retirement,
when he or she completes the prescribed beneficiary
confirmation procedures; provided, however, that in cases
when the requirements provided for in the Officer Share
Benefit Regulations are satisfied, the Eligible Director inquestion shall be paid cash equivalent to the market valueof a certain percentage of the Companyʼs shares, in placeof the granting of those shares of the Company. The
amount of remuneration, etc., to be received by Eligible
Directors shall be based on the amount obtained bymultiplying the total number of points granted to each
Eligible Director by the book value per share of theCompany held in the Trust, at the time the points are
granted (however, in the event of a share split, gratis
allotment of shares, consolidation of shares, etc., in relation
to the Company ʼs shares, the conversion ratio shall bereasonably adjusted according to the ratio thereof, etc.). In
addition, if deemed appropriate, this amount shall be added
to any money paid in accordance with the provisions of the
Officer Share Benefit Regulations.

Policy on determining the ratio of the amount of basic remuneration (monetary remuneration), performance-linked
remuneration, etc., or non-monetary remuneration, etc., for the amount of individual remuneration, etc., for each Director

In addition to basic remuneration, Executive Directors
receive performance-linked stock remuneration (BBT),
classified as performance-linked remuneration, etc., andnon-monetary remuneration, etc. However, the ratio of
basic remuneration, performance-linked remuneration, andnon-monetary remuneration is not set in advance given thenature of performance-linked stock remuneration (BBT),
such as the fact that, as described in “ Policy on
determining performance-linked remuneration, etc. andnon-monetary remuneration, etc.” above, a number ofpoints (a maximum of 100,000 points per fiscal year) are
granted to Eligible Directors in accordance with the Officer

Share Benefit Regulations for each fiscal year, taking into
consideration their positions, the degree of achievement ofbusiness performance targets, and other factors, and anumber of the Companyʼs shares, etc., that is equivalent tothe confirmed number of points at the time of retirement isgranted, as well as the fact that this plan was introduced inplace of the payment of retirement benefits. However, basic
remuneration shall be the principal remuneration for
Executive Directors.
Remuneration for External Directors consists solely of basic
remuneration, as described in the “Basic policy” in theprevious page.

Matters concerning the determination of the contents of remuneration, etc. for individual Directors

Of remuneration, etc., for individual Directors, decisions
concerning the specific amount of basic remuneration are
delegated to the President and Representative Director,
based on a resolution of the Board of Directors. Thisauthority covers the setting of payment standards
according to positions, responsibilities, etc., and theamount of basic remuneration for each individual based onsuch standards. To ensure that the President andRepresentative Director appropriately exercise this authority,

the Representative Director shall make decisions
concerning the establishment of payment standards inaccordance with positions, responsibilities, etc., after
consulting with and receiving reports from independent
External Directors.
Furthermore, the specific content of performance-linked
stock remuneration (BBT) for individual Executive Directors
is determined in accordance with the Officer Stock Benefit
Regulations.

SocialGovernance

ESG Data*1. The amount of the above remuneration, etc. includes the provisions for shareawards of ¥39 million that was recorded in fiscal year ended March 31, 2021.
*2. The indicator of performance-linked remuneration is “profit before income taxes” inthe consolidated statement of income. This is to allow all Directors to promote a wayof management that gives consideration to the continual improvement of thecorporate value of the Group, by sharing returns with shareholders with the cost ofcapital in mind. The target value for the indicator of performance-linked remunerationin fiscal year ended March 31, 2021 was ¥6,250 million, while the actual value was¥5,291 million. The target value for profit before income taxes in fiscal year ended
March 31, 2022 is ¥6,200 million.
*3. At the 106th Ordinary General Meeting of Shareholders held on June 26, 2015, theamount of remuneration for Directors (excluding Directors who are Audit andSupervisory Committee Members) was resolved to be no more than ¥300 million
per year (note that salary for employees is not included). The number of Directors at
the conclusion of this General Meeting of Shareholders was nine (including two
external Directors). In addition, separately from this, at the 107th Ordinary General
Meeting of Shareholders held on June 28, 2016, a resolution was passed to adopt“Board Benefit Trust (BBT)” as performance-linked stock remuneration for Directors
other than external Directors. The number of Directors (excluding external Directors
and Directors who are Audit and Supervisory Committee Members) at theconclusion of this General Meeting of Shareholders was seven. The conditions forallocating performance-linked stock remuneration are as described in Policy on
determining the remuneration, etc. for Officers.
*4. At the 106th Ordinary General Meeting of Shareholders held on June 26, 2015, theamount of remuneration for Directors who are Audit and Supervisory Committee
Members was resolved to be no more than ¥100 million per year. The number of
Directors who are Audit and Supervisory Committee Members at the conclusion ofthis General Meeting of Shareholders was three.
*5. The Board of Directors has passed a resolution that the remuneration for each
Director be determined by Representative Director and President Kohei Tajima. Also,
the total amount of performance-linked stock remuneration is reported to the Boardof Directors every year through the company ʼ s performance as soon as it isconfirmed according to the prescribed rules.

Cross-shareholdings

Status of the risk management system

1 Policy on cross-shareholdings
The Companyʼs policy is to hold shares that contribute to enhancing corporate
value over the medium- to long-term, after comprehensively considering theirimportance in relation to its business strategy, relationships with business partners,
and other factors. Each year, the Board of Directors examines the significance ofacquiring and holding each individual stock and their profitability based on the costof capital, etc., thus regularly verifying the appropriateness of holding these stocks.
Furthermore, the Company has established a policy of selling any stocks that it isunable to recognize the rationality of holding as a result of verifying the significanceand purpose of holding them and will take steps to reduce the number of suchshares that it holds.

The Mitsuuroko Group has established the “ Risk
Management Committee” as a subordinate body of theBoard of Directors to ensure the early detection andresolution of various problems related to legal complianceand to develop the systems required to implement andsupervise internal control over legal management andcompliance with laws, regulations, and social norms(compliance) in the midst of a risk environment that is
becoming increasingly diverse and complex as ourbusiness portfolio evolves.
In addition, the Group has established a reporting system
to ensure that compliance-related information is accurately
and promptly reported to the department in charge ofcompliance, and it will constantly develop, improve, andappropriately operate the Compliance Hotline so that all
Group employees can use it properly to communicate
information without employees or outsiders receiving
disadvantageous treatment because of such a report.
The Risk Management Committee evaluates risks,re c o g n i z e s i s s u e s , a n d i m p l e m e n t s o p e r a t i o n a l
improvements based on the recognition of issues withregard to events that may affect the achievement of theobjectives set for each business process by the generalmanagers of each division regarding all operations of theGroup, and it formulates an internal control implementation
plan with the approval of the Board of Directors. In addition,
it supervises the progress of the plan, and in cooperation with
the Audit and Supervisory Committee and the Internal
Auditing Department, it determines policies for the design andimprovement of the overall internal control system.
Regarding issues related to the development and operationof internal control over financial reporting, the Head of the
Finance & Control performs cross-group review andcoordination, and reports to the Board of Directors on theannual plan for internal control over financial reporting and
its results in light of changes in the environment.
In addition, the Company has established the “Food Quality
Control Committee” to manage risks related to food quality,
laws, and regulations, and to manage risks related to safety
in cooperation with each department.

Directors (excluding Directors
who are Audit and Supervisory
Committee Members)(External Directors)
Directors who are Audit andSupervisory Committee Members(External Directors)
Total(External Directors)

Number oftargetOfficers(Persons)

317

278

39

9

（14）

（14）

（―）

（2）

21

21

―

4

（14）

（14）

（―）

（3）

339

300

39

13

（28）

（28）

（―）

（5）

2 Standard of exercising voting rights of cross-shareholdings
The Company appropriately exercises voting rights based on a comprehensive
assessment of whether to vote for or against each proposal, taking into
consideration factors such as the establishment of appropriate corporate
governance systems, the enhancement of the corporate value of the investee overthe medium- to long-term, and the impact on the Company. If necessary, we will
discuss the content of proposals, etc., with issuers.

Evaluation of the effectiveness of the Board of Directors
The Company has conducted self-evaluations of theeffectiveness of the Board of Directors in the form ofquestionnaires to Directors. The Company endeavors toensure objectivity by seeking advice from attorneys andother experts as appropriate in relation to the preparation of
the questionnaire and the analysis of evaluation results.
Target
MethodEvaluation
Evaluation
items

All 12 Directors
Questionnaire format
5-point evaluation + free comments
1. Composition and operation of the Board of Directors
2. Management and business strategy
3. Corporate ethics and risk management
4. Dialogue with shareholders

Summary of evaluation results for FY2020
According to the results of the questionnaire, the Board of Directors of the Company in
FY2020 was evaluated to be effective.
Specifically, the Board of Directors was evaluated as having an appropriate membership
structure for effective management of the Board of Directors, sharing of management
information and exercise of the role of External Directors, appropriate reporting ofaudit results on the effectiveness of the internal control system as appropriate, andappropriate verification of cross-shareholding. On the other hand, the report recognized
the need for more proactive consideration of ESG promotion, and the need for morestrategic implementation and confirmation of business portfolio reviews and capitaland human resource investments. In response to this evaluation, the Company willcontinue to promote the appropriate management of the Board of Directors and make
improvements to the points raised in order to make the Board of Directors even more
conducive to enhancing corporate value.

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53

Policy on determining performance-linked remuneration, etc. and non-monetary remuneration, etc.

Environment

Introduction

Compliance

Basic approach

The Mitsuuroko Group has declared to society that it would give consideration to the global environment, comply with
relevant laws and regulations, and enhance security management.
We have also advocated the need for ethics by stating in our corporate philosophy that we would always operate ourcompany s business on the right track.
In the future, we will continue to contribute to the sustainable development of society as a Lifestyle Producer by striving
for sincere management and business activities based on high ethical standards, always from the perspective of corporatesocial responsibility, as well as activities that take into consideration environmental conservation and resource saving.

and are making utmost efforts to ensure that they are firmly
established within the Group.
In addition, in the event of a conflict with this Charter of
Ethics, officers and employees take responsibility for
resolving the problem, investigating the cause, andimproving operations to prevent recurrence.

TargetFrequency/year

IT compliance training

All officers andemployees

1 timeManagement training for
newly appointed managers

Newly appointed
managers

1 timeGroup management
compliance training

Management

1 timeTraining for managers incharge of safety

Managers incharge of safety

1 timeTraining for supervising
officers

Supervising
officers

2 times

Group new employee
training

New employees

1 timeComply with laws, regulations, and other social norms, and conduct fair and sound corporate activities

Group company accounting
training

Accounting
managers

2 times

The Mitsuuroko Group will conduct its corporate activities in accordance with laws and regulations, social norms, andsocial good sense.
In addition, the Mitsuuroko Group will not associate with any individuals or groups that may adversely affect social order
or the sound activities of the Company.

Issuance of information security cards

Provide safe and high-quality products and services
Respect the personality and individuality of employees and create a comfortable and enriched work environment

Respect the position of stakeholders
The Mitsuuroko Group will strive to maintain sound and positive relationships with a wide range of society, including
customers, business partners, employees, and shareholders.

5Compliance training

Content of training

The Mitsuuroko Group will value the initiative and creativity of each and every employee and foster a corporate culture
in which they are fully utilized in its corporate activities.
The Mitsuuroko Group will protect workplace safety and the health of its employees, respect human rights, and ensurea healthy work environment free from discrimination.
4

protect the informants, investigate the facts responsibly,
and take corrective and recurrence prevention measures,as necessary.
The information on where to report to the Compliance
Hotline is posted on the information security card that is
carried by all employees at all times and is known andshared by all employees

Frequency/year

We will develop safe and high-quality products and services based on our rich experience and knowledge and provide
them to consumers and business partners.
3

For the purpose of preventing and early detection oforganizational or individual violations of laws andregulations, as well as fraudulent activities, we haveestablished a “Compliance Hotline,” which includes Legal &Secretary, Internal Auditing of the Company, and an outside
law firm.
In response to reports and consultations on violations fromthe Company employees, business partners, etc., weContribute to the preservation of the global environment and the creation of an enriched and livable society
The Mitsuuroko Group will be aware that it receives various benefits from the earth, including the resources necessary
for its business activities, and that it is the Groupʼs responsibility to preserve the global environment in a better state.

Compliance Handbook
The Mitsuuroko Group publishes the “ ComplianceHandbook, ” which is a combination of the “ Code of
Conduct Casebook,” which explains the code of conduct
in an easy-to-understand manner, and the “ Charter ofCorporate Ethics.” In order to enhance the understandingof the Charter of Corporate Ethics, we have sought tomake it even “easier to understand and read” the actions
to be taken by officers and employees by giving specificexamples from daily life, and 50 of the 100 cases in thehandbook have been converted into manga cartoons.

Content of training

For the purpose of responding quickly and minimizing
damage in the event of loss of personal or internal
information, we have issued an “information security card”
that describes how to respond in the event of loss of
documents or business equipment containing personal
information, etc., as well as compliance-related matters,
and we have all employees of the Group, including
subcontractors, carry this with them at all times.

Implementation of education on compliance and harassment
We have produced an educational DVD on compliancebased on case studies, and together with the DVD on
harassment, we are conducting education on complianceby having all officers and employees of the Group watch it
during the compliance small group activities that we havebeen conducting on a regular basis.
In addition, in order to continuously educate all employeesof the Mitsuuroko Group about compliance and tostrengthen their awareness of compliance, we regularly
distribute a “ Compliance Newsletter ” on the company
intranet every week, featuring news of public interest andfamiliar examples.

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2

ESG Data

TargetCharter of Corporate Ethics

55

Governance

The Mitsuuroko Group regularly conducts compliance training by rank and theme.

Mitsuuroko Group Standard of Conduct

1

SocialCompliance reporting system

Compliance

The Mitsuuroko Group has established the “Charter ofCorporate Ethics” as a code of conduct to be observed by
the Company and its officers and employees in the courseof the various corporate activities of the Group companies.
The officers and employees of each Group company takethe initiative in practicing the normative behaviors set forthin the Charter of Corporate Ethics as their important role

Environment

Introduction

Compliance

Environment

SocialGovernance

ESG Data

Prevention of bribery
Based on our management philosophy and Charter of Corporate Ethics, the Group promotes sincere company
activities based on high ethical standards, always from the perspective of corporate social responsibility. The Groupaims to conduct measures to prevent bribery in its company activities by establishing and spreading awareness of theCharter of Corporate Ethics, employment rules, Compliance Rules, and risk management rules, etc.
We have enacted and announced the Mitsuuroko Group Basic Policy on Prevention of Bribery, promoted efforts toprevent bribery across the Group with a mindset of fair play, and realize further improvement of corporate value by
fulfilling our social responsibility in order to gain the trust of stakeholders and the general public.

4

In order to prove that we do not engage in bribery, we review all payments to third parties within a logical degree of
detail, record transactions accurately and surely in accounting books, and preserve these records internally for a set
period.
In all circumstances, off-balance-sheet transactions are strictly prohibited.
5

6

7

We understand that corruption and bribery are unacceptable and comply with Japanese Penal Code, the Unfair
Competition Prevention Act, the National Public Service Ethics Act, and the National Public Service Ethics Code.
We also comply with the laws, regulations, and restrictions applied in each country and region where we conductcompany activities and do not bribe foreign public officials, etc.
We shall not perform any actions that may lead to suspicion of bribery.
1. Japan: Unfair Competition Prevention Act (Article 18), Penal Code (Articles 197 and 197-4)
2. US: Foreign Corrupt Practices Act (FCPA)
3: UK: UK Bribery Act 2010
4. Other similar laws based on or related to treaties for the prevention of bribery of foreign officials in international
trade
3

Prohibited actions(1) Prohibition of bribery
In company activities, the Company shall not offer, promise, or grant a bribe to anyone, whether they be a private
citizen or a public official, either in or outside Japan, directly or through a third party, such as a proxy, consultant, or
associate under contract. The Company shall not perform any action that may be suspected of bribery from society.
Bribery refers to the granting and receipt of items of monetary value, or other improper interests, or the promise,demand, request, or approval thereof.
(Notes) In the cases of charitable business, political contributions, and donations for sponsored activities, actions arealso prohibited if they are in fact equivalent with bribery or improper granting of interests.
Also, officers and employees are prohibited from instructing, suggesting, or supporting bribery of a third party
such as an agent, advisor, consultant, or subcontractor (hereinafter referred to as “Service Provider”) hired inorder to collect and analyze information, secure orders for the Mitsuuroko Group, or otherwise request
cooperation for the purpose of promoting business, or to request services for which the Mitsuuroko Grouphas received orders.
(2) Prohibition of accepting bribes
The Company shall constantly maintain a stance of loyalty and fairness and shall not request, promise, nor receive
bribes from business partners either in or outside of Japan by using our business position. Also, the Company shallnot perform any action that may be suspected of accepting bribes from society.

Audit
The Internal Auditing performs appropriate audits related to compliance and operation of this basic policy, extracts
risks and issues related to prevention of bribery, executes controls, and prevents risks beforehand.

Operation structure for prevention of bribery

Education and spreading understanding

Head of Legal & Secretary shall be responsible for managing
prevention of bribery. The Presidents of each Group company
are also responsible for making their officers and employees
comply with this basic policy.
Regarding approval of entertaining, gift-giving, and donations inoverseas business, and approval of agreements andconfirmation of due diligence results related to hiring third
parties, each department, the President of each company, andthe finance and accounting department and the legal affairs
department of the Mitsuuroko Group confirm.
When we become aware of a violation of this basic policy orsuspicion thereof, we will report it immediately to the manager
in charge of legal affairs, the manager of the Internal Auditing, or
the compliance hotline in or outside the Company. We havespread awareness of this reporting structure.
The Company performs regular self-inspections of the status ofcompliance with this basic policy and the Internal Auditing
executes controls and prevents risks beforehand by regularly
conducting audits related to the compliance and operation ofthis basic policy.
If by chance a violation of this basic policy is discovered, theCompany will proceed in accordance with company regulations
and cooperate with investigations by supervising departments.

The Company has been aiming for education and spreading
understanding of the prohibition on bribery in compliancetraining and internal materials. Because there are different
restrictions on overseas transactions from those in Japan, theCompany shall thoroughly spread an awareness of theprohibition of bribery in and outside Japan and further expand
the scope of training. Also, the Internal Auditing shall takeefforts to execute controls and extract risks beforehand throughregular audits.

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57

Compliance of applied laws and regulations

Cooperation with monitoring and investigations by supervising departments
We perform regular self-inspections of the status of compliance with this basic policy and cooperate withinvestigations of supervising departments in each country and region.
We will perform reviews as needed of this basic policy and compliance procedures.

82Compliance system, reporting, and internal reporting system
The responsibility of preventing bribery, including the execution and review of this basic policy, lies with the Head of
Legal & Secretary. The Presidents of each Group company are also responsible for making their officers andemployees comply with this basic policy.
Also, when we become aware of a violation of this basic policy or suspicion thereof, we will report it immediately tothe manager in charge of legal affairs, the manager of the Internal Auditing, or the hotline in or outside the Company.
The Mitsuuroko Group has established and spread awareness of a reporting and consultant hotline with an external
attorney in order to quickly identify and correct compliance issues, including bribery.
Violations to this basic policy will be subject to punishment in accordance with various regulations.

Basic policy
The Mitsuuroko Group promotes business activities based on its Charter of Corporate Ethics and management
philosophy of “As a Lifestyle Producer, we consistently conduct our business with integrity and from the customerʼs
perspective.”
In accordance with laws and regulations and their intentions, we prohibit the entertaining or gift-giving to public
officials, etc. We aim to conduct measures for the prevention of bribery by establishing and spreading awareness of
the Charter of Corporate Ethics, employment rules, Compliance Rules, and risk management rules, etc.
The Group enacted a basic policy related to prevention of bribery overseas and in Japan as it conducts global
business. We understand that it is the duty of each Mitsuuroko Group company, officer, and employee to comply withthis basic policy. As such, we make the following declaration.
In accordance with our Basic Policy on Prevention of Bribery, we shall comply with the laws applied in each country
and region and not engage in bribery of foreign officials.
By clarifying the policies that are the foundation of this basic policy, we promote efforts to prevent bribery across theentire Mitsuuroko Group with a mindset of fair play, and realize further improvement of corporate value by fulfilling oursocial responsibility in order to gain the trust of stakeholders and the general public.

Education
The Company performs training related to compliance that includes education of this basic policy and regular casestudies for officers and employees in order to comply with the prohibition of bribery.

Mitsuuroko Group Basic Policy on Prevention of Bribery

1

Review and management of payment records

Introduction

Compliance/Cyber security

Tax Policy
The Mitsuuroko Group has always complied with the tax
laws applied in each country and region it operates in andpays appropriate taxes. However, to increase awareness oftax compliance and tax transparency throughout the entire
Group and further improve tax governance, we haveformulated the “ Mitsuuroko Group Tax Policy. ” As we

expand our business globally, going forward, we will fulfill
our corporate social responsibility and further improve ourcorporate value through adhering to this Tax Policy,
complying with the tax laws applied in each country andregion, and paying appropriate taxes.

Mitsuuroko Group Tax Policy
1

Basic policy
The Mitsuuroko Group promotes business activities based on its Charter of Corporate Ethics and management
philosophy of “As a Lifestyle Producer, we consistently conduct our business with integrity and from the customerʼs
perspective.”
We recognize that transactions that lack legitimate business purposes or economic rationality hinder tax transparency
and may harm the Group ʼ s business and brand value as well as the interests of stakeholders, including local
communities and business partners.
As we expand our business globally, we will fulfill our corporate social responsibility and further improve our corporate
value through adhering to this Tax Policy, complying with the tax laws applied in each country and region, and paying
appropriate taxes.

2

Tax compliance
We will always report income and pay taxes in compliance with the laws and regulations applied in each country andinternational standards such as the Action Plan on Base Erosion and Profit Shifting (BEPS). In addition, we will not
engage in tax evasions or opaque tax administration that hinders the sound development of the world economy.

3

4

Response to transfer pricing taxation
For international transactions within the Group, we comply with the tax laws of each country and the Organization for
Economic Co-operation and Development (OECD) Transfer Pricing Guidelines, ensuring transfer pricing transactions arecarried out appropriately and in accordance with the armʼs length principle. In addition, to avoid double taxation, we
enter into an advance pricing agreement with tax authorities, working to reduce tax risk.

5

7

As an infrastructure business operator that supplies energy and services for everyday life, the Group considers
cybersecurity an important issue in the fulfillment of our social responsibility and has positioned it as one of its key
management issues.
Under the leadership of management, we ensure security in our customer service information systems, protect the
information assets that have been entrusted to us, and promote stable supply of energy and security.
While transactions via the Internet and smartphones have increased with the rapid development of digital technology
in recent years, cyber risk is also growing due to the advancement and sophistication of cyber attacks.
In light of changes in the environment such as the recent use of digital technology and increased threat of cyberattacks, we are working to strengthen cybersecurity measures within our various operations and businesses, such as
the Energy Solutions, Power & Electricity, Foods, and Living & Wellness businesses.

Information security targets
To reduce cyber risk, we maintain defense in depth anddetection measures, analyzing and responding to new
cyber attack methods through working with external
security affiliates that handle cybersecurity. We will

constantly endeavor to reinforce our approach to
cybersecurity to provide safer and more secure services toour customers.

Cyber security response system
We have established the Risk Management Committee asa subordinate body of the Board of Directors as well as theInformation Systems Department under the CTO / CIO.
Through this framework, we manage the information
security governance of the entire Group. The Risk
Management Committee and the Board of Directors receive

Risk Management
Committee

reports on the status of the Groupʼs security measures on aregular basis. Aiming to prevent cybersecurity incidents andminimize the damage or impact caused if they occur, eachdepartment and the subsidiaries that support the Groupʼsbusiness work together to build an information security
promotion system and ensure cybersecurity.

Board of Directors

Representative Director
and President

Minimizing tax risk

CTO / CIO

Internal Auditing

Information Systems
Department

Tax cost optimization (tax planning)Through strengthening governance as outlined above and utilizing means such as preferential tax systems and tax
exemptions that are recognized under the laws and regulations of each country within the scope of normal businessactivities, we will minimize tax costs and improve our corporate value.

8

Relations with tax authorities
We will form and maintain transparent, sound, and positive relations with tax authorities by responding to their requests
in an appropriate, honest, and timely manner, and obtaining advance rulings as necessary.

ESG Data

Basic approach

Response to anti-tax haven rules

If deemed necessary due to uncertainties or other concerns regarding the interpretation of laws and regulations, we will
receive advice from external experts such as tax consultants and legal advisors wherever necessary, and we will work tominimize tax risk through making appropriate judgments after adequate research, evaluation, and consideration of thevarious choices.
Furthermore, we will confirm important tax-related issues with tax authorities in advance to clarify the handling of taxation.

Governance

Cyber security

We will not use tax havens for the purpose of tax avoidance without economic rationality. If, in light of the taxation
systems of each country, anti-tax haven rules apply to schemes necessary for our business operations, we will report onsuch matters and pay taxes.
6

Social

ICT Leader Energy
Solutions Business

ICT Leader Power &Electricity Business

ICT Leader Foods
Business

ICT Leader Living &Wellness BusinessGroup Systems
Promotion Department
and Others

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SUSTAINABILITY REPORT 2021

The Group CFO is responsible for the development and maintenance of the tax governance of the entire Group as wellas the development of human resources responsible for the enhancement of tax governance.
We have formed a system for managing tax risks globally, assigning employees with expertise in matters concerning
taxation to Finance & Control (“F&C”). We have also put a framework in place for addressing the Groupʼs tax-related
concerns in which the F&C and each Group company work together and the issues are reported to the Group CFO andresolved. Whenever tax-related matters of significant importance arise, the CFO reports them to the Board of Directors.
In addition, the F&C gathers the most up-to-date information concerning taxation through means such as participationin training sponsored by external experts. They then conduct workshops for the accounting (tax) departments of eachGroup company based on the advice they have received from the external experts, educating employees on tax
compliance as necessary. In this way, we foster and strengthen the human resources who handle the Groupʼs tax
matters, ensuring the appropriateness of tax governance.

59

Mitsuuroko Group Holdings Co.,Ltd.

Tax governance and human resources development

Environment

Introduction

Cyber security/Personal information protection

Practices to ensure cybersecurity
As initiatives to ensure cybersecurity, we secure the budget
and human resources for technical countermeasures suchas those for preventing the unauthorized access of
systems. In addition, we conduct basic security education,e-learning, and targeted email attack training to increase

the awareness of security threats of each officer andemployee in the Group, including contract employees andthe employees of business partners. We also foster highly
specialized human resources, working to strengthen theinformation security of the entire organization.

Strengthening the sharing of information with Group companies
To make sure that our security policy is applied to all Group
companies, we monitor the status of security measures ofeach company while ensuring security tools and operations
meet a certain standard, working to strengthen
governance. Regular meetings are also held for the ICT

leaders of each Group company. Through the sharing
information on the recent security situation at thesemeetings, we raise awareness and improve the security ofthe entire Group.

We have also created a new COVID-19 Response page in our intranet and thoroughly provide information onrules for IT use and other general security rules and practices.
As the increase in the number of employees working from home caused the network environment to become
unstable, we have strengthened the network to provide a more comfortable and safe working-from-homeenvironment.
We have also introduced a conferencing tool via a contract with a partner company to enable employees tosafely conduct web conferences online, and we communicate precautions for when the conferences are
conducted, such as points concerning data exchange.

ESG Data

The Group deeply acknowledges the importance of privacy in respect to our customers personal information. When
handling personal information for our operations, all officers and employees comply with relevant laws and regulations
as well as the internal rules that the Group has established. We thereby ensure that we respect our customers, meettheir expectations, and build trust.
In addition, we pay special consideration when handling the personal information of children and seek to obtain theirparents consent in the process.

Privacy policy
Mitsuuroko Group Holdings Co., Ltd. and each Mitsuuroko Group company handle the personal information of customers as
outlined below.

Each Mitsuuroko Group company acquires and uses the personal
information of customers for purposes such as publishing it on
official websites or other reasons notified to customers via separate
correspondence. Each Mitsuuroko Group company will not acquireor use personal information for purposes other than the above
without the consent of the customer.
2 Provision of personal information to third parties

Each Mitsuuroko Group company will not entrust or provide thepersonal information of customers to third parties, except upon thecustomersʼ consent or when we are legally obligated to so do aftera receipt of request from judicial or governmental authorities. Even
after customers give their consent, we ensure confidentiality
agreements are in place to protect personal information in theevent that we disclose, entrust, or provide personal information tothird parties, and we do our upmost to protect the personal
information of our customers.
3 Shared use of personal information

Each Mitsuuroko Group Company may share the information
below for the purposes described in “ 1 Purpose of use” or for the
purposes of use outlined at the end of this section.
1) Basic customer information including name, age, gender,
address, phone number, and contract number
2) The details and usage status of services and products provided
by each Mitsuuroko Group Company to customers, and thestatus of transactions
23) Results of various surveys conducted by each Mitsuuroko Group
Company4) Details of inquiries from customers

The responsibility of managing information for shared use lies withthe respective Mitsuuroko Group companies that have acquired
the personal information.
For proposals and information regarding products, services,
campaigns, events, etc. provided by each Mitsuuroko
Group company
For surveys, research and development to improve thequality of products and services provided by each
Mitsuuroko Group company
For the conducting of surveys about the products andservices provided by each Mitsuuroko Group company
For proper execution of business management operations as
a group, such as understanding and managing various risks

4 Implementation of security measures for personal information

Each Mitsuuroko Group company has established internal rules
and will take reasonable safety measures to protect the personal
information entrusted to us by our customers from loss,
destruction, unauthorized leakage to the outside, falsification, andunauthorized access.
In addition, we may delete the personal information of customers
when we judge that the purpose of use has been achieved and it is
no longer necessary to keep the personal information.
5 Inquiries from customers regarding personal information

When we receive a request from a customer to disclose, correct,
add or delete, suspend the use, etc. of the customer ʼ s own
personal information managed by us, we will confirm the identity of
the customer before honoring these requests and taking
appropriate actions promptly.

Initiatives for protecting personal information
Each Mitsuuroko Group company is conducting the following activities to ensure that the privacy policy is complied with.
1 We conduct educational activities and training for all officers andemployees to ensure compliance with laws, regulations, and otherstandards concerning personal information.
2 We appoint a personal information manager who understands andcomplies with the matters specified in the internal rules of theCompany. Their responsibilities include conducting training,
implementing safety measures, and thoroughly communicating
information to ensure that all of those who are engaged in thehandling of personal information, including its acquisition and use,
understand and comply with the internal rules.

3 We request the cooperation of our business partners and contractors

whenever necessary for the protection of personal information.

4 We improve the privacy policy, internal rules, and the managementof personal information protection as necessary in accordance withchanges in laws, regulations, and the social environment.

5 We ensure this privacy policy can be accessed at all times bycustomers via means such as our company website and company
brochures.

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who do not have Wi-Fi in their homes, enabling many of theGroupʼs employees to work from home.
Employees have continued working from home since thestate of emergency was lifted, and in accordance with thesituation of the pandemic and government requirements,
we implement flexible work styles such as remote work andworking from home based on rules that address security.

Governance

Basic approach

Purposes of use

61

The Group has implemented various measures to respondto the COVID-19 pandemic that began to spread in the
beginning of 2020. Since the declaration of the state of
emergency in March 2020 , we have granted special
permission for items that were previously not permitted to
be brought outside the Company, such as laptops, to be
used for working from home throughout the entire Group.
We have also lent laptops and pocket routers to employees

SocialPersonal information protection

1 Purpose of use

Security measures in response to the increase in working from home and remote work

Environment

Introduction

Appropriate information disclosure/Supply chain management

Appropriate information disclosure
Basic approachSocialGovernance

ESG Data

Supply chain management
Basic approach

As a company conducting business with a mission to benefit society, we consider the timely and appropriate provisionof information to all our stakeholders as a matter of importance.
To enable customers to use the Group s products and services safely, securely, and comfortably, we proactively andappropriately disseminate company information as well as information on the safety and use of our products andservices.

Appropriate information disclosure
Mitsuuroko Group website

To gain the understanding of our customers, we promptly
and appropriately share information on our website, suchas company information, various information that concerns
the lifestyles of customers, and information related to
products and services.

63

As a group that is close to our customers lives, supporting their daily lives through products and services, we believethat it is important to fulfill our social responsibility through working not alone but together with all of our business
partners.
Striving to form relationships of trust with all of our business partners, we have set forth our approach to the provisionof products and services and the way in which we build relations in our Charter of Corporate Ethics.

Charter of Corporate Ethics (extract)
Appropriate disclosure of information in compliance withlaws and regulations, and our voluntary standards.

We correctly provide necessary information to ourcustomers whenever they consider the products or servicesof the Group. In addition to complying with the Act against
Unjustifiable Premiums and Misleading Representations, wehave established a checklist to ensure appropriate
advertising and representations of our products or services.
We cooperate with the Representations Officer when
producing flyers, catalogues, or pamphlets, working tothoroughly provide correct information.
In addition, we work to enable customers to use products
and service safely, acting in accordance with the prescribedguidelines on methods for appropriate provision of
information established by the Ministry of Economy, Tradeand Industry in conjunction with the full liberalization of theelectricity and gas retail market.

Timely disclosure system overview
1 Timely disclosure policy

Provide safe and high-quality products and services

Respect the position of stakeholders

We will develop safe and high-quality products and services based on
our rich experience and knowledge and provide them to consumers
and business partners.

The Mitsuuroko Group will strive to maintain sound and positive
relationships with a wide range of society, including customers,
business partners, employees, and shareholders.

Publication of Declaration of Partnership Building
Guided by our “ Charter of Corporate Ethics, ” we will
promote sincere corporate activities based on high ethicalstandards, always from the perspective of corporate social
responsibility, and thoroughly ensure transactions respecthuman rights by complying with “Mitsuuroko Group Human
Rights Policy.”
We will continue to carry out business activities that are fairand respect human rights, building more positive andmutually prosperous relationships with our business

partners with an aim to increase the added value of theentire supply chain and realize sustainable growth.

64

Declaration of Partnership Building
We declare that we will focus efforts on the following matters in order to build new partnerships by promoting collaboration andmutual prosperity with supply chain and value-creating business operators.

The Companyʼs basic policy is to disclose necessary information to stakeholders in a timely and appropriate manner. The Company will disclose“decisions,” “financial information,” and “occurrences” in a timely and appropriate manner, as determined by the Board of Directors, inaccordance with the provisions set forth by the Tokyo Stock Exchange.
1 Mutual prosperity throughout the supply chain, and new
2 Timely disclosure system

1) Decisions

The departments in charge of disclosure in Finance & Control (Finance & Control, Financial Planning & Analysis and Finance & IRTeam) confirm in advance whether decisions made by management meetings (the Board of Directors and the Management
Committee) of the Company and its subsidiaries are subject to timely disclosure. If the decision is subject to timely disclosure,then, after a management meeting makes a decision, the departments in charge of the disclosure will promptly disclose theinformation in accordance with the instructions of the Head of Finance & Control, who is the manager responsible for disclosure.

2) Occurrences

If any events that should be disclosed in a timely manner occur at the Company and its subsidiaries, the departments in chargeof disclosure in Finance & Control confirm whether the occurrence is subject to timely disclosure, after persons in charge
promptly notify the Head of Finance & Control. If the occurrence is subject to timely disclosure, then, after a decision has been
made concerning disclosure by a management meeting of the Company or its subsidiaries, it will be promptly disclosed by thedepartments in charge of disclosure in accordance with the instructions of the Head of Finance & Control.

3) Financial
information

After a decision has been made by a management meeting (the Board of Directors and the Management Committee) of theCompany or its subsidiaries, financial information is promptly disclosed by the departments in charge of disclosure in accordancewith the instructions of the Head of Finance & Control, who is the manager responsible for disclosure.

3 Handling of timely disclosure information

Timely disclosure information is strictly controlled in accordance with the Companyʼs Information Management Regulations. In addition, theCompany makes thorough efforts to prevent insider trading in accordance with the Regulations for Prevention of Insider Trading.

collaboration transcending business scales, affiliations, etc.
We will increase added value throughout the supply chain by reachingout, through our direct suppliers, to their suppliers (from “Tier N” to“Tier N+1”), and we aim to create mutual prosperity with our business
partners through collaboration that goes beyond existing traderelationships and business scales, etc. From the perspective of work
style reform or ensuring business continuity in disasters, we will
support our business partners by helping them to introduce teleworksystems, advising them on business continuity planning (BCP), or
providing other forms of assistance.
While deepening collaboration among companies, we will also work to
reduce CO 2, increase energy efficiency, and contribute to local
communities.

2 Compliance with Promotion Standards

We will comply with the desirable trade practices set forth for main
contractors and subcontractors (“Promotion Standards” prescribed in
the Act on the Promotion of Subcontracting Small and Medium-sizedEnterprises”), actively working to correct trade practices and businesscustoms that obstruct the partnership building.
1. Method for determining prices
We will not demand unreasonable cost reductions. When determining
transaction prices, we will consult with subcontractors if requested to
do so, and fully discuss prices to ensure that appropriate profit forsubcontractors is included, taking into consideration factors such as
rises in labor costs. When concluding agreements that include
determined transaction prices, we, as the main contractor, will stateand issue the terms of the contract in writing.
2. Terms of payment by bill, etc.
In principle, payments will be made in cash.
3. Intellectual property and know-how
We will not request our subcontractors enter unilateral nondisclosureagreements, or take advantage of our trading position to demand
disclosure of know-how or transfer of intellectual property rights
without compensation.
4. Work style reform and relations
To enable our subcontracting business partners to carry out work
style reforms, we will not place orders that have tight delivery
deadlines with or make sudden changes to the specifications ofjobs without compensating them appropriately. When disasters orother such events occur, we will not impose unilateral trading
burdens on subcontractors, and upon the resumption of operations,
we will continue business relationships to the best of our ability.
3 Other matters

We will uphold our “Charter of Corporate Ethics” and the “Mitsuuroko
Group Human Rights Policy,” conducting business that is fair andrespectful of human rights.

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

Environment

Introduction

GRI Standards table

General disclosure items
Disclosed in

responsibility for economic,
102-20 Executive-level
environmental, and social topics

SUSTAINABILITY REPORT 2021 Environmental management promotion systemwith stakeholders on economic,
102-21 Consulting
environmental, and social topics

SUSTAINABILITY REPORT 2021 Stakeholder Engagementof the highest governance body and102-22 Composition
its committees

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance Report102-23 Chair of the highest governance body

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance Reportand selecting the highest
102-24 Nominating
governance body

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance Report

SUSTAINABILITY REPORT 2021 Mitsuuroko Group Business Areas
BUSINESS REPORT 2021 Company Information
Website Company Information

102-2 Activities, brands, products, services

SUSTAINABILITY REPORT 2021 Mitsuuroko Group Business Areas
BUSINESS REPORT 2021 Business Review
Website Business Areas

102-3 Location of headquarters

SUSTAINABILITY REPORT 2021 Company information of Mitsuuroko Group Holdings Co., Ltd.
BUSINESS REPORT 2021 Company Information
Website Company Information

102-4 Location of operations

Website Group Companies

102-25 Conflicts of interest

102-5 Ownership and legal form

SUSTAINABILITY REPORT 2021 Company information of Mitsuuroko Group Holdings Co., Ltd.
BUSINESS REPORT 2021 Company Information
Website Company Information

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance Reportof highest governance body in
102-26 Role
setting purpose, values, and strategy

SUSTAINABILITY REPORT 2021 Environmental management promotion system

102-6 Markets served

SUSTAINABILITY REPORT 2021 Mitsuuroko Group Business Areas
BUSINESS REPORT 2021 Business Review
Website Mitsuuroko Group Businesses
Website Group Companies

102-27 Collective knowledge of highest governance body

SUSTAINABILITY REPORT 2021 Company information of Mitsuuroko Group Holdings Co., Ltd.
BUSINESS REPORT 2021 Financial Data
Website Finance & Achievement Highlights
SUSTAINABILITY REPORT 2021 Data

102-9 Supply chain

SUSTAINABILITY REPORT 2021 Supply Chain Management102-10 Significant changes to the organization and its supply chain―

102-11 Precautionary principle or approach

SUSTAINABILITY REPORT 2021 Status of the risk management system
BUSINESS REPORT 2021 Compliance
Website Compliance
SUSTAINABILITY REPORT 2021 Compliance
SUSTAINABILITY REPORT 2021 Announcement of endorsement of the “Task Force on
Climate-related Financial Disclosure (TCFD)” recommendationsSUSTAINABILITY REPORT 2021 Environmental management promotion system

102-28 Evaluating the highest governance bodyʼs performance4.
Governanceand managing economic, environmental,
102-29 Identifying
and social impacts

102-30 Effectiveness of risk management processes

SUSTAINABILITY REPORT 2021 Environmental management promotion system

102-32 Highest governance bodyʼs role in sustainability reporting

SUSTAINABILITY REPORT 2021 Environmental management promotion system
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance102-33 Communicating critical concerns

SUSTAINABILITY REPORT 2021 Compliance
BUSINESS REPORT 2021 Compliance
Website Compliance102-34 Nature and total number of critical concerns

SUSTAINABILITY REPORT 2021 Compliance
BUSINESS REPORT 2021 Compliance
Website Compliance102-35 Remuneration policies

SUSTAINABILITY REPORT 2021 Remuneration for Directors
Website Corporate Governance Report

SUSTAINABILITY REPORT 2021 Respect for Human Rights
BUSINESS REPORT 2021 Compliance
Website Compliance102-36 Process for determining remuneration

SUSTAINABILITY REPORT 2021 Remuneration, etc. for Directors
Website Corporate Governance Report102-37 Stakeholdersʼ involvement in remuneration―

SUSTAINABILITY REPORT 2021 Compliance102-38 Annual total remuneration ratio―

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance102-39 Percentage increase in annual total remuneration ratio ―102-40 List of stakeholder groups

SUSTAINABILITY REPORT 2021 Stakeholder Engagement

SUSTAINABILITY REPORT 2021 Corporate governance structure
BUSINESS REPORT 2021 Corporate governance structure
Website Corporate Governance102-41 Collective bargaining agreements

SUSTAINABILITY REPORT 2021 Stakeholder Engagement

SUSTAINABILITY REPORT 2021 Message from the President
BUSINESS REPORT 2021 Message from the President
SUSTAINABILITY REPORT 2021 Message from the President
BUSINESS REPORT 2021 Message from the President
SUSTAINABILITY REPORT 2021 Materiality
BUSINESS REPORT 2021 Business Review
SUSTAINABILITY REPORT 2021 TCFDSUSTAINABILITY REPORT 2021 Founding Principles

102-17 Mechanisms for advice and concerns about ethics

102-18 Governance structure
4.
Governance102-19 Delegating authority

SUSTAINABILITY REPORT 2021 Status of the risk management system
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance

SUSTAINABILITY REPORT 2021 Environmental management promotion system
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance102-14 Statement from senior decision-maker3.
Ethics andintegrity

SUSTAINABILITY REPORT 2021 Status of the risk management system
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance102-31 Review of economic, environmental, and social topics

SUSTAINABILITY REPORT 2021 Stakeholder Engagement

principles, standards, and norms of102-16 Values,
behavior

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance

SUSTAINABILITY REPORT 2021 Environmental management promotion system

SUSTAINABILITY REPORT 2021 Stakeholder Engagement102-13 Membership of associations

102-15 Key impacts, risks, and opportunities

SUSTAINABILITY REPORT 2021 Corporate governance
BUSINESS REPORT 2021 Corporate governanceWebsite Corporate Governance

SUSTAINABILITY REPORT 2021 Management Philosophy
SUSTAINABILITY REPORT 2021 Mitsuuroko Group Standard of Conduct
BUSINESS REPORT 2021 Charter of Corporate Ethics
Website Compliance

SUSTAINABILITY REPORT 2021 Environmental management promotion system
SUSTAINABILITY REPORT 2021 Climate Change governance system

5.
Stakeholder 102-42 Identifying and selecting stakeholders
engagement102-43 Approach to stakeholder engagement102-44 Key topics and concerns raised

SUSTAINABILITY REPORT 2021 Stakeholder Engagement
SUSTAINABILITY REPORT 2021 Stakeholder Engagement
SUSTAINABILITY REPORT 2021 Stakeholder Engagement

66

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

102-8 Information on employees and other workers

102-12 External initiatives

ESG Data

SUSTAINABILITY REPORT 2021 Environmental management promotion system

SUSTAINABILITY REPORT 2021 Data

2.
Strategy

Governance102-1 Name of organization

102-7 Scale of the organization

65

SocialDisclosed in

GRI Standards table

1.
Organizational
profileEnvironment

Introduction

GRI Standards table

Disclosed inincluded in the consolidated financial
102-45 Entities
statements

SUSTAINABILITY REPORT 2021 Editing Policy

102-46 Defining report content and topic boundaries

SUSTAINABILITY REPORT 2021 Editing Policy

102-47 List of material topics

SUSTAINABILITY REPORT 2021 Materiality

102-48 Restatements of information―

102-49 Changes in reporting―

102-50 Reporting period
6.
Reporting 102-51 Date of most recent reportpractice
102-52 Reporting cycle

SUSTAINABILITY REPORT 2021 Editing Policy―

SUSTAINABILITY REPORT 2021 Editing Policy

GRI 301:
Materials
2016

GRI 302:
Energy2016―

301-2 Recycled input materials used

SUSTAINABILITY REPORT 2021 Promotion of resource cycle

302-1 Energy consumption within the organization

SUSTAINABILITY REPORT 2021 Data

302-2 Energy consumption outside of the organization

SUSTAINABILITY REPORT 2021 Data

302-3 Energy intensity

SUSTAINABILITY REPORT 2021 Data

302-4 Reduction of energy consumption

303-1 Interactions with water as a shared resource

102-55 GRI content index

SUSTAINABILITY REPORT 2021 GRI Standards Tableof water discharge-related ―303-2 Management
impacts

102-56 External assurance

SUSTAINABILITY REPORT 2021 Third party assurance

GRI 303:
Water andEffluents 303-3 Water withdrawal
2018
303-4 Water discharge

303-5 Water consumption

SUSTAINABILITY REPORT 2021 Environmental management promotion system
SUSTAINABILITY REPORT 2021 Environmental management promotion system

Operational sites owned, leased, managed in,high biodiversity value outside protected areas

Economic

203-2 Significant indirect economic impacts
GRI 204:
Procurement
204-1 Proportion of spending on local suppliers
Practices
2016

205-1
GRI 205:
Anti205-2
corruption
2016
205-3

304-3 Habitats protected or restored305-2 Indirect (Scope 2) GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
GRI 305:
Emissions305-4 GHG emissions intensity
2016
305-5 Reduction of GHG emissions

SUSTAINABILITY REPORT 2021 Compliance (Prevention of bribery)Confirmed incidents of corruption and actions
taken

SUSTAINABILITY REPORT 2021 No instances of corruption
SUSTAINABILITY REPORT 2021 No instances of legal actions

207-1 Approach to tax

SUSTAINABILITY REPORT 2021 Compliance (Tax Policy)
Website Tax Policy

207-2 Tax governance, control, and risk management

SUSTAINABILITY REPORT 2021 Compliance (Tax Policy)
Website Tax Policy

engagement and management of
207-3 Stakeholder
concerns related to tax

SUSTAINABILITY REPORT 2021 Compliance (Tax Policy)
Website Tax Policy

207-4 Country-by-country reporting―

around water collection sites)
BUSINESS REPORT 2021 Coexistence with the community
Website Environment initiatives

SUSTAINABILITY REPORT 2021 Climate change initiatives
SUSTAINABILITY REPORT 2021 Data
SUSTAINABILITY REPORT 2021 Climate change initiatives
SUSTAINABILITY REPORT 2021 Data
SUSTAINABILITY REPORT 2021 Climate change initiatives
SUSTAINABILITY REPORT 2021 Data―

SUSTAINABILITY REPORT 2021 Climate change initiatives
SUSTAINABILITY REPORT 2021 Dataof ozone-depleting substances ―305-6 Emissions
(ODS)

―

Communication and training about anticorruption policies and procedures

around water collection sites)
BUSINESS REPORT 2021 Coexistence with the community
Website Environment initiatives

SUSTAINABILITY REPORT 2021 Local communities (Activities to protect and nurture the forests

305-1 Direct (Scope 1) GHG emissions―

SUSTAINABILITY REPORT 2021 Compliance (Prevention of bribery)

SUSTAINABILITY REPORT 2021 Local communities (Activities to protect and nurture the forests

affected by operationsSUSTAINABILITY REPORT 2021 Local communities

Operations assessed for risks related tocorruption

GRI 206:
Legal actions for anti-competitive behavior,Anti-competitive 206-1
anti-trust, and monopoly practices
Behavior 2016

GRI 207:
Tax 2019

SUSTAINABILITY REPORT 2021 Disaster prevention measures―

IUCN Red List species and nationalof senior management hired from ―202-2 Proportion
the local community

SUSTAINABILITY REPORT 2021 Security and quality management for customers
BUSINESS REPORT 2021 Corporate governance structure―304-4 conservation list species with habitats in areas ―of standard entry level wage by gender ―202-1 Ratios
compared to local minimum wage

GRI 203:
investments and services
Indirect203-1 Infrastructure
supported
Economic
Impacts2016―

impacts of activities, products, and ―304-2 Significant
services on biodiversity

201-4 Financial assistance received from government ―SUSTAINABILITY REPORT 2021 Stable supply of energy/electricity
BUSINESS REPORT 2021 Realization of a safe and secure society

SUSTAINABILITY REPORT 2021 Environmental risk management (Water risk initiatives)oxides (NOx), sulfur oxides (SOx), ―305-7 Nitrogenand other significant air emissions
generation and significant waste-related ―306-1 Waste
impacts

GRI 306:
Waste
2020

of significant waste-related ―306-2 Management
impacts

306-3 Waste generated―

306-4 Waste diverted from disposal―

306-5 Waste directed to disposal―

GRI 307:
Environmental
with environmental laws and307-1 Non-complianceregulations
Compliance
2016
GRI 308: 308 1
Supplier
Environmental
Assessment 308-2
2016

SUSTAINABILITY REPORT 2021 No instances of non-compliance with laws and regulations

New suppliers that were screened using ―environmental criteria
Negative environmental impacts in the supply
chain and actions taken

Website Supply Chain Management

68

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

GRI 304:
Biodiversity
2016

GRI 201: 201-2 Financial implications and other risks and SUSTAINABILITY REPORT 2021 Climate change initiatives (TCFD)
opportunities due to climate change
Economic
Performance
benefit plan obligations and other ―201-3 Defined2016
retirement plans
GRI 202:
MarketPresence
2016

SUSTAINABILITY REPORT 2021 Data

SUSTAINABILITY REPORT 2021 GRI Standards Table

304-1 or adjacent to, protected areas and areas of

67

SUSTAINABILITY REPORT 2021 CO2 reduction targetof reporting in accordance with the GRI
102-54 Claims
Standards

201-1 Direct economic value generated and distributed ―ESG Data

301-3 Reclaimed products and their packaging materials ―in energy requirements of products ―302-5 Reductions
and services

Disclosed inGovernance

Disclosed in

301-1 Materials used by weight or volume

SUSTAINABILITY REPORT 2021 Editing Policy
Website inquiries

SUSTAINABILITY REPORT 2021 Materiality

SocialEnvironmental

point for questions regarding the102-53 Contact
reportGRI 103: 103-1 Explanation of the material topic and its boundaries
Management103-2 The management approach and its components
Approach2016
103-3 Evaluation of the management approach

Environment

Introduction

GRI Standards table

Environment

SocialGovernance

ESG Data

SocialDisclosed in

401-1 New employee hires and employee turnover

SUSTAINABILITY REPORT 2021 Data

GRI 401:
Benefits provided to full-time employees that
Employment 401-2 are not provided to temporary or part-time ―employees
2016401-3 Parental leave

SUSTAINABILITY REPORT 2021 Data

GRI 402:
Labor /
notice periods regarding operational ―402-1 MinimumchangesManagement
Relations 2016
health and safety management403-1 Occupational
systemSUSTAINABILITY REPORT 2021 Health-focused management
BUSINESS REPORT 2021 Health-focused management
Website Employee Health & Welfare initiatives

identification, risk assessment, and403-2 Hazard
incident investigation

SUSTAINABILITY REPORT 2021 Status of the risk management system403-3 Occupational health and safety services

SUSTAINABILITY REPORT 2021 Health-focused management
BUSINESS REPORT 2021 Health-focused management
Website Employee Health & Welfare initiatives

Worker participation, consultation, and403-4 communication on occupational health andsafetyGRI 403:
Occupational
training on occupational health and403-5 Worker
safetyHealth and
Safety 2018403-6 Promotion of worker health

GRI 411:
Rights ofof violations involving rights of ―411-1 Incidents
indigenous peoples
Indigenous
Peoples 2016that have been subject to human412-1 Operations
rights reviews or impact assessments

GRI 412:
Human
Rightstraining on human rights policies or412-2 Employee
procedures
Assessment
2016

SUSTAINABILITY REPORT 2021 Respect for Human Rights
SUSTAINABILITY REPORT 2021 Supply Chain Management

SUSTAINABILITY REPORT 2021 Respect for Human Rights

Significant investment agreements and412-3 contracts that include human rights clauses or ―that underwent human rights screening

SUSTAINABILITY REPORT 2021 Data
SUSTAINABILITY REPORT 2021 Health-focused management
BUSINESS REPORT 2021 Health-focused management
Website Employee Health & Welfare initiatives

SUSTAINABILITY REPORT 2021 Data

covered by an occupational health403-8 Workers
and safety management system

SUSTAINABILITY REPORT 2021 Data403-9 Work-related injuries

SUSTAINABILITY REPORT 2021 Data403-10 Work-related ill health

SUSTAINABILITY REPORT 2021 Data
SUSTAINABILITY REPORT 2021 Human resource development

GRI 404:
SUSTAINABILITY REPORT 2021 Data
Training
andPrograms for upgrading employee skills and SUSTAINABILITY REPORT 2021
Human resource development
Education 404-2 transition assistance programs
2016
of employees receiving regular ―404-3 Percentage
performance and career development reviews
SUSTAINABILITY REPORT 2021 Diversity and inclusion
GRI 405:
Diversity of governance bodies and employees
Diversity 405-1
SUSTAINABILITY REPORT 2021 Dataand Equal
Opportunityof basic salary and remuneration of ―2016405-2 Ratio
women to men

GRI 406:
Nonof discrimination and corrective
406-1 Incidents
actions taken
discrimination2016

personnel trained in human rights ―410-1 Security
policies or procedures

SUSTAINABILITY REPORT 2021 Data

Prevention and mitigation of occupational
403-7 health and safety impacts directly linked bybusiness relationships

hours of training per year per
404-1 Average
employee

GRI 410:
Security
Practices
2016

SUSTAINABILITY REPORT 2021 Respect for Human Rights

GRI 407:
Freedom of
Operations and suppliers in which the right toAssociation and 407-1 f re e d o m o f a s s o c i a t i o n a n d c o l l e c t i v e ―bargaining may be at risk
Collective
Bargaining 2016
GRI 408:
Operations and suppliers at significant risk for ―Child Labor 408-1
incidents of child labor
2016

GRI 413: 413-1
Local
Communities
2016
413-2

Operations with local community engagement,
impact assessments, and development
programs

SUSTAINABILITY REPORT 2021 Stakeholder Engagement

Operations with significant actual and potential ―negative impacts on local communities

GRI 414: 414-1 New suppliers that were screened using social ―criteria
Supplier
SocialAssessment
social impacts in the supply chain SUSTAINABILITY REPORT 2021
Supply Chain Management414-2 Negative2016
and actions taken
GRI 415:
PublicPolicy2016

GRI 416:
Customer
Health and
Safety2016415-1 Political contributionsof the health and safety impacts
416-1 Assessments
of product and service categories

SUSTAINABILITY REPORT 2021 Security for customers
BUSINESS REPORT 2021 Realization of a safe and secure society
SUSTAINABILITY REPORT 2021 Disaster prevention measures

Incidents of non-compliance concerning the416-2 health and safety impacts of products and

SUSTAINABILITY REPORT 2021 No incidents of non-compliancefor product and service
417-1 Requirements
information and labeling

SUSTAINABILITY REPORT 2021 Appropriate Information Disclosure
Website IR Policy

services

GRI 417:
Marketingof non-compliance concerningand417-2 Incidents
product and service information and labelingLabeling
2016
of non-compliance concerning
417-3 Incidents
marketing communications
GRI 418:
CustomerPrivacy2016

SUSTAINABILITY REPORT 2021 No instances of political contributions

Substantiated complaints concerning

418-1 breaches of customer privacy and losses ofcustomer data

GRI 419:
Socioeconomic
with laws and regulations in
419-1 Non-compliancethe social and economic area
Compliance
2016

SUSTAINABILITY REPORT 2021 No incidents of non-compliance

SUSTAINABILITY REPORT 2021 No incidents of non-compliance

SUSTAINABILITY REPORT 2021 Cybersecurity
SUSTAINABILITY REPORT 2021 Personal Information Protection
Website Privacy Policy

SUSTAINABILITY REPORT 2021 No instances of non-compliance with laws and regulations

70

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

69

Disclosed in
GRI 409:
Forced or
and suppliers at significant risk for ―409-1 Operations
incidents of forced or compulsory labor
Compulsory
Labor 2016

Introduction

ESG Data

Environmental data (FY2020)

Social data

Sales volume for renewable energy and environment related products / greenhouse gas emissions

Employee overview
Male

Sales volume
Solar power
Electricity sales volume by energy source

Wind power
Biomass power
Solar panels (kW basis)

Product sales volume

Storage cells (kW basis)
Energy farm

7,045 thousand kWh
55,807 thousand kWh

Scope 1

★ 11 , 579t-CO 2

Scope 2★ 14 , 249t-CO 2

Total

Category 1

Purchased goods and services

Category 3

Fuel- and Energy-Related Activities
Not Included in Scope 1 or Scope 2

Category 4

Upstream transportation and distribution★ 28 , 571t-CO 2eq

Category 11

Use of sold products★ 3 , 133, 452t-CO 2

Consolidated

Non-consolidated

Consolidated

9

1,180

8

395

17

1,575

Less than 30 years old 30 to 39 years old 40 to 49 years old 50 to 59 years old 60 years old or overNumber of employees by age

2

262

Mitsuuroko Group Holdings Co.,Ltd.

Other fuel

352

6

534

1

418

0

9

17

1,575

Male

★ 5 , 760, 604t-CO 2eq★ 638, 501t-CO 2eq

FemaleTotal / average

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

Consolidated

39
4
3
3

44
12
417
83

39
7
5
2

37
9
26
3

39
5
8
5

42
11
443
86

0

334

3

23

3

357

Average age by gender
Average years of service by gender
Total number of employees in management
General manager or higher
Section manager or higher(excluding general managers)* As of March 31, 2021

★ 1 , 960, 081t-CO 2eq

Master s / Bachelor s graduate

Vocational school
graduate

Male

Male

FemaleNon-consolidated

0

Male

FemaleFemaleConsolidated

Consolidated

12

0

0

6

High-school graduate
Male

FemaleNon-consolidated

1

0

Male

Total

FemaleConsolidated

01

NonConsolidated
consolidated

1

0

21

Male

2.23 t CO2/thousand Nm3
Emission factors by electric utility business operator published in accordance with theministerial ordinance of the Act on Promotion of Global Warming Countermeasures.
Steam (excluding steam for industrialuse), hot water, cold water0 . 057 tCO 2/GJ

Steam for industrial use

0 . 060 tCO 2/GJ

Heavy oil A

2 . 71 tCO 2/kl

Light oil2 . 58 tCO 2/kl

Heating oil

2 . 49 tCO 2/kl

Gasoline

2 . 32 tCO 2/kl

LPG

3 . 00 tCO 2/t

FemaleNon-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

1

63

0

18

1

Recruitment status (mid-career)

Consolidated

81* As of FY2020

Number registered

16

Number of employees with disabilities* As of June 1, 2021

Childcare leave

Nursing care leave

Number of leave takers

Number of leave takers

Non-consolidated

Consolidated

Non-consolidated

Consolidated

2

23

0

0

Childcare / nursing careleave system usage* As of FY2020★ marked indicators are independently assured by KPMG AZSA Sustainability CO., Ltd. The basis for the calculations is as follows:

The scope of calculation covers Mitsuuroko Group Holdings Co., Ltd. and consolidated subsidiaries. Scope 1 and 2 emissions include only CO2emissions, while scope 3 emissions include emissions from GHG other than CO2.
Scope 1: CO2 emission factor of fuel and the unit calorific value are based on the coefficients specified in the Act on Promotion of Global WarmingCountermeasures.
Scope 2: CO2 emission factor of electricity based on the adjusted emission factors by electric utility business operator.
Scope 3: Each emissions intensity is referenced from the Act on Promotion of Global Warming Countermeasures; the Ministry of the Environmentʼs“Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain ”;
and the Inventory Database for Environmental Analysis version 2 (IDEAv2) for calculating supply chain greenhouse gas emissions, publishedby the Sustainable Management Promotion Organization.
Category 1: Calculated by multiplying the amount (physical quantity) of petroleum-derived fuel and city gas procured for sales by the emission
intensity for each fuel type specified in IDEAv2.
Category 3: GHG emissions derived from the extraction, production, and transportation of fossil fuels used in the production of electricity for sales
purposes and the production of energy purchased for private use. Emissions from “ electricity for sales purposes ” are calculated bymultiplying the amount of electricity sold by the basic emission factor of the Mitsuuroko Group conducting retail electricity businessand the emission intensity database figure. Emissions from “private electricity consumption ” are calculated by multiplying the amountof electricity used for private consumption by the emission intensity database figure. Emissions from “ private fuel consumption ” arecalculated by multiplying the amount of fuel used for private consumption by the fuel emission intensities specified in IDEAv 2 for eachfuel type.
Category 4: Upstream transportation emissions are calculated by multiplying the transportation volume (t-km), which is the product of the cargoweight and the distance transported, by the emission intensity for each transportation type.
Category 11: Calculated by multiplying the sold volume (physical quantity) of petroleum-derived fuel and city gas by their respective fuel-specificcalorific values and CO2 emission factors.

Total

Childcare work Nursing Nursing care work Accompaniment Volunteer
time reduction care leave time reduction
leave system
leave

Childcare leave

Refresh leavesystemNumber of Number of Number of Total number Total number Number of
Number of
Return rate
leave takers leave takers leave takers
of usersof users
leave takers
leave takers

Main system and usage data

23

100%

17

0

0

2

0

15
* As of FY2020

Number of retirees reemployed

Total number of retired
employees (total)HD

Subsidiaries, etc.

Total

36

0

33

33

Reemployed retiree status* As of FY2020

Male (turnover rate)

Turnover rate

Female (turnover rate)

Average (turnover rate)

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

0.0%

5.1%

0.0%

5.0%

0.0%

Consolidated

5.0%* As of FY2020

72

SUSTAINABILITY REPORT 2021

Thermal8* As of FY2020

City gas
Purchased electricity

Total

NonNonNonNonNonNonConsolidated
Consolidated
Consolidated
Consolidated
Consolidated
Consolidated
consolidated
consolidated
consolidated
consolidated
consolidated
consolidated

Recruitment status (new graduates)

CO2 emissions factors

Total

Non-consolidated* As of March 31, 2021

25,828t-CO2

Greenhouse gas (GHG) emissions
Scope 3

Conversion factors, etc.

FemaleESG Data* As of March 31, 2021

Total

71

GovernanceConsolidated

Number of employees by gender60.741 thousand kWh
4,907 kW13,209 kW
229 units

SocialNon-consolidated

Greenhouse gas (CO2) emissions
Scope 1+Scope 2

Environment

Introduction

ESG Data

Contract employees

Number of temporary employees
and contract employees

Total

Male

Female

2,203

566

1,637

Total

24

2,227

Average number of paid annual leave days taken

10.2 days* As of FY2020

Average annual training time

Average annual trainingtime

SocialGovernance

ESG Data

Governance data

Temporary employees* As of March 31, 2021

Average number of paid
annual leave days taken

Environment

14 hours* As of FY2020

Composition of the Board of Directors (As of March 31, 2022)
Directors (excluding Directors who are Audit andSupervisory Committee Members)
9
Total number of Directors
1
Female1Foreign nationals
2
External

Overall
Total number of Directors(including Audit and Supervisory
Committee Members)

Directors who are Audit and Supervisory Committee Members
Total number of Directors who
3
are Audit and Supervisory
Committee Members
3
External

12

Female1（8%）

Foreign nationals

1（8%）
5（42%）

External
Independent External
Directors

3（25%）All employees

5,210,242 yen

Average annual salary* As of FY2020

Master s / Bachelor s graduate

New graduate starting salary

High-school graduate

233,000 yen-* Mitsuuroko Vessel Co., Ltd. major career track

Meetings of the Board of Directors / Audit and Supervisory Committee
FY2018FY2019FY2020

Number of Board of Directors meetings held

14

12

12

Number of Audit and Supervisory Committee Meetings held

12

12

12

* As of FY2021

Director remuneration (FY2020)

Occupational health and safety management
Annual average of total hours
worked per employee

1,848 hours

Monthly average of overtime
hours worked per employee

17.7 hours

Rate of receiving regular
medical examinations

100%

Rate of smoking

33.4%

Total remuneration,etc. (millions of yen)

Directors (excluding Directors who are Audit andSupervisory Committee Members)

25%

Rate of regular exercise* As of FY2020* As of FY2020

Directors who are Audit and Supervisory Committee
Members

Status of implementation of education on occupational health and safety(External Directors)

Level based health and safety /safety awareness training

Traffic and driving Escorted
Newly appointed
HealthForemansafety training instruction on Seminar on
safety manager
mangerhealthnew drivers / drivers safe driving
Newly appointed education
training
Seminar education
workshop who have been in using a drive promotion
manager health and (statutory)(statutory)
for new employees
accidents, etc.
recordersafety training

Status of implementation of
education on health and safety

〇

〇

〇

〇

〇

〇

〇

〇
* As of FY2020

Summary of accidents and disasters
Number of work-related accidents Number of traffic accidents Frequency rate of lost-worktime injuries

Number of work-related accidents/ Number of traffic accidents /Frequency rate of lost-worktime
injuries / Severity rate

(External Directors)

Total(External Directors)

Total remuneration, etc. by type(millions of yen)

Number of
Performance-linked applicable Directors
stock remuneration

Basic
remuneration

317

278

39

9

（14）

（14）

（―）

（2）

21

21

―

4

（14）

（14）

（―）

（3）

339

300

39

13

（28）

（28）

（―）

（5）

Compliance-related consultations
Compliance consultations

FY2019FY2020

Number of consultations

17

12

Severity rate

Meetings of the Risk Management Committee
15

0

0.34

0.008
* As of FY2020

Risk Management Committee

FY2018FY2019FY2020

Number of meetings held

5

1

4

74

SUSTAINABILITY REPORT 2021

Mitsuuroko Group Holdings Co.,Ltd.

73

Introduction

ESG Data

Independent Assurance Report
Independent Assurance Report
To the Representative Director, President and CEO of Mitsuuroko Group Holdings Co., Ltd.
We were engaged by Mitsuuroko Group Holdings Co., Ltd. (the “Company”) to undertake a limited
assurance engagement of the environmental performance indicators marked with a star ★ the“Indicators”) for the period from April 1, 2020 to March 31, 2021 included in its Sustainability Report 2021
(the “Report”) for the fiscal year ended March 31, 2021.

The Company s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting
criteria (the “Companyʼs reporting criteria”), as described in the Report.

Mitsuuroko Group Holdings Co.,Ltd.

75

Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures
we have performed. We conducted our engagement in accordance with the ʻInternational Standard on
Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical
Financial Informationʼ and the ʻISAE 3410, Assurance Engagements on Greenhouse Gas Statementsʼ
issued by the International Auditing and Assurance Standards Board. The limited assurance engagement
consisted of making inquiries, primarily of persons responsible for the preparation of information presented
in the Report, and applying analytical and other procedures, and the procedures performed vary in nature
from, and are less in extent than for, a reasonable assurance engagement. The level of assurance provided
is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures
included:● Interviewing the Companyʼs responsible personnel to obtain an understanding of its policy for preparing
the Report and reviewing the Companyʼs reporting criteria.
● Inquiring about the design of the systems and methods used to collect and process the Indicators.
● Performing analytical procedures on the Indicators.
● Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the
Indicators in conformity with the Companyʼs reporting criteria, and recalculating the Indicators.
● Making inquiries and reviewing materials including documented evidence of the Gifu Yoro Plant of
Mitsuuroko Beverage Co., Ltd. and HAMABOWL EAS of Mitsuuroko Co., Ltd. selected on the basis of arisk analysis, as alternative procedures to site visits.
● Evaluating the overall presentation of the Indicators.
Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes
us to believe that the Indicators in the Report are not prepared, in all material respects, in accordance with
the Companyʼs reporting criteria as described in the Report.
Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics
Standards Board for Accountants, which includes independence and other requirements founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality andprofessional behavior. In accordance with International Standard on Quality Control 1, we maintain acomprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
/s/ Kazuhiko Saito
Kazuhiko Saito, Partner,
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
November 29, 2022
Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability
Co., Ltd.

Environment

SocialGovernance

ESG Data

Chibi Maruko-chan©SAKURA PRODUCTION / NIPPON ANIMATION

Mitsuuroko Group Holdings Co., Ltd.
Tokyo Square Garden, 3-1-1 Kyobashi, Chuo-ku, Tokyo 104-0031, Japan
Phone: +81-3-3275-6300 / Fax: +81-3-3275-6350