Materiality

Introduction

Identification andReview of Materiality
The Group considers “contributing to the creation of a sustainable society” to be one of its key
management strategies.
Taking a long-term vision of the Groupʼs businesses from an ESG perspective, we have identified
six important issues (materiality) based on our consideration of issues that management ought togive priority to among all social issues in existence.
By setting quantitative targets and target fiscal years for each materiality and aiming to achievethem, we will continue to create new value with our diverse stakeholders and contribute to thecreation of a sustainable society.

Materiality identification and review process
Identification
STEP of social issues
1 that should beconsidered

1 Contribution to the environment
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 abetter state. The purpose of Mitsuuroko Groupʼs existence is to build abetter society through its daily corporate 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, Mitsuuroko Group is working to reduce the CO2emissions from its business activities and those from its customersʼ
use of products and services, as well as contribute to the improvementof energy efficiency, aiming to achieve carbon neutrality by FY2050.

STEP

3

Evaluation ofimportance tostakeholders

The importance to stakeholders is evaluated for social issues that should beconsidered based on the ratings of ESG rating providers and the social issues focusedby client companies.

Evaluation ofimportance tothe 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 eachbusiness.

In the management philosophy, Mitsuuroko Group has set forth thatit consistently conducts our business with integrity and from thecustomerʼs perspective, advocating the need for legal compliance inmanagement and business operation. While thoroughly maintaining
internal controls that have been effective and appropriate so far,
we maintain our legal compliance system through means such asconducting various types of compliance training, producing originaltraining videos on non-compliance cases, 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.

4 Enhancement of safety and disaster response measures
Safety is an indispensable element because of the nature of all
businesses Mitsuuroko Group promotes. With its mainstay energyrelated products directly linked to our lives as lifelines, Mitsuuroko
Groupʼs mission is to contribute to society through the stable supplyof energy as well as safe, secure, 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 andis working to enhance disaster response measures, including disasterprevention measures and support systems, BCP, etc.

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

4Identificationof the Groupʼspriority issues(materiality)

STEP

5

Setting of KPI on
materiality andits review

Importance tostakeholders

STEP

Materiality

Importance to the GroupIssues that did not receive top
priority but are recognized
Promotion of innovations
Promotion of business activities withsustainability in mind
Prevention of pollution by hazardous chemicals
Efficient use of sustainable natural resources
Improvement of energy efficiency
Development of diverse human resources

KPIs, their target values, and target fiscal years are set for the identified materiality, andprogress is managed and activities are evaluated. The results are regularly reported to
the Board of Directors and disclosed in the Sustainability Report.

5 Health-focused management
Understanding that human resources are our greatest asset,
Mitsuuroko Group considers the health management of employees,
who are the source of its future growth as an important management
issue. Based on the “Mitsuuroko Group Health Care Declaration,”
it respects the fact that each individual faces a variety of life stages,
and it supports its employees in enabling them to autonomously andproactively manage their health through a variety of initiatives andinformation dissemination.
As a leading company in health-focused management, it will continue
to provide support and engage in even more comprehensive initiatives
through further promoting physical and mental health to prevent
illnesses, and promoting work styles in line with the new normal,
including those that address the COVID-19 pandemic.

6 Promotion of diversity
Mitsuuroko Group has grown from its principle of evolving andchanging with the times as an “environmentally adaptive enterprise”
whose subsistence 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 andbeneficial conditions to achieve sustainable growth. It is therefore
essential that Mitsuuroko Group fosters a corporate culture thatembraces diversity as a strength, creating an environment that does
not discriminate based on employment status, nationality, gender,age, or whether one is a new graduate or mid-career hire.
Mitsuuroko Group aspires to shaping a new era by being “anenterprise that creates favorable cycle” and “persistently seekingchange.”

14SUSTAINABILITY REPORT 2022

2The business operation of Mitsuuroko Group has been supported bymany stakeholders until now. Within these stakeholders, it must notforget the indispensable role of local communities.
Mitsuuroko Group has traditionally built relationships of trust withlocal communities through not only its business relationships but also
through connecting with them in other ways, such as by participatingin community cleanup activities and events as well as charity activitiesand sports. Mitsuuroko Group aims to coexist and prosper together
with these local communities through working as hard as possible
on initiatives that it can and should do in serving them as a corporate
citizen, no matter how small.

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

3 Thorough compliance
STEP

2 Contribution to local communities

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.

13

Mitsuuroko Group Holdings Co., Ltd.

Materiality of Mitsuuroko GroupMateriality

Introduction

Materiality & KPI
Group-wide KPIs, targets, and progress against materiality
Mitsuuroko Group indicators

Materiality

KPI1 Reduction of Scope 3

Contribution

1 to theenvironment

Carbon neutral*4

2 Reduction of Scopes 1 and2 (the Company)* CO2emissionsContribution to improved
energy efficiency
1, 2Increase the number of locations with theChristel Vie Ensemble Foundation donation
boxes

Number of IT compliance training sessions
Number of harassment training sessions
Number of training sessions related tohuman rights
4 Enhancement of safety and disaster

response measures

Number of drills conducted in relation toconfirmation of safety
Rate of receiving regular medicalexaminations
Rate of receiving thorough examinations
Rate of maintaining proper weight

5 Health-focused management

Rate of undergoing stress checks
Rate of smoking
Rate of regular exercise

Each yearー

6 Promotion of diversity*5ー

1Decrease of locations(total of 9 locations)

Decrease of location(total of 8 locations)* Due to closing of stores* Due to closing of a store

Cancelled* Due to prioritizing prevention of the spread of COVID-19

1

1

11ー

1

Each year

22

Each year100%(as of January 31, 2023)(Ratio to all employees)

90%

74.4%

(as of January 31, 2023)

80%

62.9%

(as of January 31, 2023)

100%(as of January 31, 2023)(Ratio to all employees)

18%

32.8%

(as of January 31, 2023)

40%

24.8%

(as of January 31, 2023)

Once a year
(for all employees)

Once a year
(for all employees)

Each year

Once a year
(for all employees)

Twice a year
(for all employees)

Continue to provide

100%(Ratio to all employees)(Ratio to all employees)

100%(Ratio to all employees)

FY2023(Ratio to all employees)

Ratio of female managers
Number of diversity training conductedOnce a year for all employeesNumber of career seminars conductedOnce a year for female
employees in their late 20s

Number of maternity leave and parental
leave training conductedOnce a year for managers* The “̶” symbol indicates a qualitative target.
*1 Scope 1: Direct emissions caused by the business operator itself*2 Scope 2: Indirect emissions caused by the use of electricity, and heat andsteam supplied by other companies*3 Scope 3: Indirect emissions other than Scopes 1 and 2 (upstream anddownstream of supply chain)* Aggregated in FY2023* Due to prioritizing prevention of the spread of COVID-19

100% of female employees
20% of male employees
33%
11%

Ratio of female employees+31.7%*6

CancelledContinue to provide

Rate of parental leave taken

ー* Aggregated in FY2023*4 Carbon neutral: Virtually zero emissions, calculated by subtracting the amountabsorbed by plants, etc. from CO2 emissions*5 For training related to “Promotion of diversity,” we plan to change the theme oftraining on a yearly basis.
*6 Changes from FY2020 in CO2 emissions (See pages 27–28 for information on thecalculation standard of CO2 emissions)

Each year, FY2023

100% of female employees
11% of male employees

FY2026

26.6%
6.9%

82.2%

62.6%
100%

32.0%

27.2%ー* Aggregated in FY2023

ー

27.4%
6.9%
1
2
* Seminars are held in November for young male andー

1ー

FY2022

88.3%

female employees (26-28 years old) and for young
female employees (29-33 years old) in December.

16

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

15

FY2022 Performance(up to the end of February)+3.6%*6211

Increase fromlocations(the number of locations in 2021)

FY2021 Performance

FY2050

The Companyʼs CO2 emissions
reduction rate

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

3 Thorough complianceTarget fiscal year

Customersʼ CO2 emissions
reduction rate

(customer)*3 CO2 emissions
Contribution to improved
energy efficiency

2 Contribution to local communities

Quantitative targets