G(Governance)

Governance

Governance

Main target management indicators (KPIs)

Number of IT compliance training sessions
Yearly target

Mitsuuroko Group aims to improve corporate value to all stakeholders and achieve sustainablegrowth. We maintain a basic corporate governance approach to construct an optimized

Once a year (for all employees)

management structure and perform appropriate and healthy company operations.
We will continue to promote governance reforms to accelerate decision-making, strengthen the
supervisory function of management, and secure the transparency of company actions. We willtake initiatives to strengthen risk management and improve compliance.

Number of harassment training sessions
Yearly target

Once a year (for all employees)

INDEX
Corporate governance71

Risk management

73

Compliance78

Cybersecurity

80

Personal information protection

81

Appropriate information disclosure

82

Supply chain management

83

GRI Standards table

Yearly target

Once a year (for all employees)

66

SUSTAINABILITY REPORT 2022

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65

67

Number of training sessions related to human rights

Corporate governanceG

GovernanceCorporate governance

Governance

Areas where Directors are expected to excel in

Basic approach
Mitsuuroko Groupʼs basic approach on corporate governance is to develop a system to ensure theappropriateness of the Groupʼs operations in accordance with the Companies Act, the Regulations for
Enforcement of the Companies Act, the Financial Instruments and Exchange Act, other laws andregulations, and the code of corporate conduct of financial instruments exchanges. The purpose of thissystem is to ensure compliance with laws and regulations and social ethical norms, to ensure that
Mitsuuroko Groupʼs business is conducted in good faith and with transparency to customers, business
partners, shareholders, etc., and to fulfill the Groupʼs social mission in business activities.

Corporate governance structure
meetings at least once a month, we are always striving
to share management issues and have established asystem that enables us to take action to resolve issues
as soon as possible. We are also working to build amore advanced governance system by appointing
diverse human resources as Directors, including
foreign nationals and physicians, to incorporate
multifaceted perspectives and utilize AI, IoT, and othertechnologies.
Moreover, in addition to appointing Directors to be
responsible for the business in each segment of
Mitsuuroko Group, and giving them the authority andresponsibility to establish a legal compliance system
and a risk management system for each Group
company, the head of Finance & Control also promotes
and manages these systems across the Group.

Corporate governance structure

General Meeting of Shareholders
Election and dismissal
Accounting
audit

Financial Auditor

Cooperation

Election and dismissal

Audit andSupervisory
Committee

Cooperation

Internal Auditing

Audit

Kazuhiro
KojimaManabuSakanishi
Jun
Kawakami
Motoyasu
Omori
Goh WeeMeng
Katsuhisa
Yanagisawa
Kaori
Matsui

Corporate
Human
Financialmanagement accounting
resources
Legal Risk
Management
Personnel
management
Capitalstrategydevelopment
policyReporting

Reporting

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

Group companies

Auditing

Internal
SocialOverseas environment
controls
Governance

Representative Director and President
Chief Executive Officer Generalmanagement
Director
Power & Electricity BusinessDirector
Group Chief Financial Officer, Finance& Control, Legal & Secretary, Others(operational and system support)
Director
Energy Solutions BusinessDirector
Mobility Business, Others (leasing)Director
Foods BusinessDirector
Group Chief Technology Officer, Group
Chief Information Officer, Group Global
Chief Inclusion & Diversity Officer,
Global Planning, ICT Planning(Planning, maintenance, and promotionof information infrastructure)68

Director (External)
Director (External) (Independent)

Director (External) (Independent)
Audit and Supervisory Committee
Member, tax accountant
Director(External) (Independent)
Yoshiyuki
Audit and Supervisory Committee
KawanoMember, physician
Director (External)
Kei Tajima
Audit and Supervisory Committee
Member* The above table does not display all of their expertise.
Hideo
Sugahara

Policy on determining the remuneration for
Officers
Board of Directors

ReportingAtsushiFutami

Position and responsibilities

Remuneration, etc. for Directors

Election and dismissal

Audit, etc.

Cooperation

Area or skill expected to excel in
Name

Kohei
TajimaIn June 2015, we shifted to a company with audit
and supervisory committee and established a Boardof Directors, Audit and Supervisory Committee, andFinancial Auditor.
The Company has improved the effectiveness ofauditing and supervision through auditing by Directors
who are Audit and Supervisory Committee Memberswith voting rights on the Board of Directors, andfurther strengthened the supervisory function of theBoard of Directors. Furthermore, the management
participation of five External Directors, including three
Directors who are Audit and Supervisory Committee
Members, enhances the supervisory function of theBoard of Directors with respect to business execution
and ensures the appropriateness and transparency ofthe decision-making process.
With regard to the Board of Directors, by holding

their knowledge, experience, and capabilities as we aim
to accelerate decision-making, strengthen the supervisory
function of management, and secure the transparency ofcompany actions.
The Company expects that each Director will excel
particularly in the following fields and skills.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

67

The Company aims to improve corporate 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 Boardof Directors by electing diverse human resources based on

Representative
Director
Instructions

Disclosure of
information

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. as well as
the amounts determined for each individual Director in thecurrent fiscal year are consistent with the aforementioned
policy, and are therefore judged to be in line with the policy.
The contents of the policy on determining the remuneration,etc. for each individual Director are as follows.

Basic policy
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
are primarily 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 consistsof fixed 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.

Corporate governanceG

Governance

GovernanceCorporate governance

Policy on determining performance-linked remuneration, etc. and non-monetary remuneration, etc.
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 performance-linked stock
remuneration for Directors (excluding External Directors andDirectors who are Audit and Supervisory Committee Members;hereinafter, referred to as the “Eligible Directors” in this and thefollowing paragraph) (furthermore, the trust established based on
this plan is hereinafter referred 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 achievement of businessperformance targets (the degree of achievement of the target
for profit before income taxes on the consolidated statement ofincome), 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., thepoints granted to Eligible Directors are converted at a rate of one
share of the Companyʼs common stock per point (however, in theevent of a share split, gratis allotment of shares, consolidation ofshares, etc., in relation to the Companyʼs shares, the conversion
ratio shall be reasonably adjusted according to the ratio thereof,etc.). The number of points for the Eligible Directors to be usedas the basis for the granting of the Companyʼs shares, etc.,
is calculated by aggregating the points granted to the Eligible

Directors through the time of their retirement and then multiplying
the result by a predetermined coefficient set for each reason for
retirement (hereinafter, the points thus calculated are referred 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 the Companyʼs sharescorresponding 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 incases when the requirements provided for in the Officer Share
Benefit Regulations are satisfied, the Eligible Director in question
shall be paid cash equivalent to the market value of a certain
percentage of the Companyʼs shares, in place of the granting of
those shares of the Company. The amount of remuneration, etc.,
to be received by Eligible Directors shall be based on the amountobtained by multiplying the total number of points granted to each
Eligible Director by the book value per share of the Company heldin the Trust, at the time the points are granted (however, in theevent of a share split, gratis allotment of shares, consolidation ofshares, etc., in relation to the Companyʼs shares, the conversion
ratio shall be reasonably 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., and non-monetary
remuneration, etc. However, the ratio of basic remuneration,
performance-linked remuneration, and non-monetary remuneration
is not set in advance given the nature of performance-linked
stock remuneration (BBT), such as the fact that, as described in“Policy on determining performance-linked remuneration, etc.
and non-monetary remuneration, etc.” above, a number of points(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 theirpositions, the degree of achievement of business performancetargets, and other factors, and a number of the Companyʼs shares,
etc., that is equivalent to the confirmed number of points at thetime of retirement is granted, as well as the fact that this plan
was introduced in place 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 the previous
page.

1

Policy on cross-shareholdings

The Companyʼs policy is to hold shares that contribute to improving
corporate value over the medium- to long-term, after comprehensively
considering their importance in relation to its business strategy,
relationships with business partners, and other factors. Each year, theBoard of Directors carefully examines the significance of acquiring andholding 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 policyof selling any stocks that it is unable to recognize the rationality ofholding as a result of verifying the significance and purpose of holding
them and will take steps to reduce the number of such shares that it
holds.

Total amount of remuneration, etc. for FY2021*1 The amount of the above remuneration, etc. includes the provisions for shareawards of ¥87 million that was recorded in fiscal year ended March 31, 2022.
*2 The indicator of performance-linked remuneration is “profit before income taxes”
in the consolidated statement of income. This is to allow all Directors to promote
a way of management that gives consideration to the continual improvement of
the corporate value of the Group, by sharing returns with shareholders with thecost of capital in mind. The target value for the indicator of performance-linked
remuneration in fiscal year ended March 31, 2022 was ¥6,200 million, while theactual value was ¥3,437 million. The target value for profit before income taxes infiscal year ended March 31, 2023 is ¥4,700 million.
*3 At the 106th Ordinary General Meeting of Shareholders held on June 26, 2015,
the amount of remuneration for Directors (excluding Directors who are Audit
and Supervisory 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 the conclusion of this General Meeting of Shareholders
was seven. The conditions for allocating performance-linked stock remuneration
are as described in Policy on determining the remuneration for Officers.
*4 At the 106th Ordinary General Meeting of Shareholders held on June 26,
2015, the amount 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 theconclusion of this 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,
as stated in “Matters concerning the determination of remuneration, etc. foreach individual Director” above, for the reason that Representative Director andPresident is eligible for evaluating the divisional performance that each Director
undertakes, after considering the performance, etc. of the entire Group. Also,
the total amount of performance-linked stock remuneration is reported to theBoard of Directors every year through the companyʼs performance as soon as it
is confirmed according to the prescribed rules.

Officer category
Total number of
Directors (excluding
Audit and Supervisory
Committee Members)(External Directors)
Directors who are
Audit and Supervisory
Committee Members(External 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.
TargetAll 12 Directors

MethodQuestionnaire format

Evaluation 5-point evaluation + free comments
1. Composition and operation of the Board of Directors
Evaluation 2. Management and business strategies
3. Corporate ethics and risk management
items
4. Dialogue with shareholders

Total(External Directors)

PerformanceTotal
Basiclinked stock ofNumber
remuneration remuneration remuneration
officers(millions of yen) (millions of yen) (millions of yen) (Persons)

368

281

87

9

(14)

(14)

(−)

(2)

21

21

−

4

(19)
390
(34)

(19)
302
(34)

(−)
87
(−)

(3)
13
(5)

Standard for exercising voting rights for cross-shareholdings

The Company appropriately exercises voting rights basedon a comprehensive assessment of whether to vote for oragainst each proposal, taking into consideration factors suchas the establishment of appropriate corporate governancestructure, the improvement of the corporate value of theinvestee over the medium to long term, and the impact on
the Company. If necessary, we will discuss the content ofproposals, etc., with issuers.

Evaluation of the effectiveness of the Board of Directors

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 theRepresentative Director and President, based on a resolutionof the Board of Directors. This authority covers the setting of
payment standards according to positions, responsibilities, etc.,
and the amount of basic remuneration for each individual basedon such standards. To ensure that the Representative Director andPresident appropriately exercise this authority, the Representative
Director shall make decisions concerning the establishment of
payment standards in accordance 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 determinedin accordance with the Officer Share Benefit Regulations.

2

Summary of evaluation results for FY2021
According to the results of the questionnaire, the Board of
Directors of the Company in FY2021 was evaluated to be effective.
The details are as follows.
The Company will work to improve these points in the future.
An environment in which External Directors feel comfortable
expressing constructive opinions, and do so when necessary.
It has an appropriate composition of members that ensures
the knowledge, ability, experience, and diversity necessary to
fulfill the roles and responsibilities of the Board of Directors.
Its agenda items contain sufficient content for deliberation in
Particularly light of the level of importance of the matters to be discussed.
appreciated Its cross-shareholdings are appropriately examined.
pointsImportant risks are reported to the Board of Directors in atimely and accurate manner and the Board of Directors isaware that these issues are being addressed appropriately by
the management team.
The results of the audit of the effectiveness of the internal
control system are reported in a timely and appropriatemanner.
The content and volume of materials used at the meetings ofthe Board of Directors and the timing of prior distribution andexplanation should be considered more carefully
Important management and business strategies should be
reviewed from a more multifaceted and sustainability-oriented
Recognized perspective and monitored more effectively.
issuesBusiness portfolio reviews and capital and human resource
investments should be more strategically implemented andsuch implementations checked.
A more appropriate system should be established to promote
constructive dialogue with shareholders.

Status of the risk management system
Mitsuuroko Group has established the “Risk Management
Committee” as a subordinate body of the Board of Directors toensure the early detection and resolution of various problems
related to legal compliance and to develop the systems required to
implement and supervise internal control over legal management
and compliance with laws, regulations, and social norms(compliance) in the midst of a risk environment that is becoming
increasingly diverse and complex as our business portfolio evolves.
In addition, the Group has established a reporting system toensure that compliance-related information is accurately andpromptly reported to the department in charge of compliance, andit will constantly develop, improve, and appropriately operate theCompliance 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, recognizes
issues, and implements operational improvements based on therecognition of issues with regard to events that may affect theachievement of the objectives set for each business process by thegeneral managers of each division regarding all operations of theGroup, and it formulates an internal control implementation planwith the approval of the Board of Directors. In addition, it supervises
the progress of the plan, and in cooperation with the Audit andSupervisory Committee and the Internal Auditing Department, it
determines policies for the design and improvement of the overall
internal control system.
Regarding issues related to the development and operation ofinternal control over financial reporting, the Head of the Finance &Control performs cross-group review and coordination, and reports
to the Board of Directors on the annual plan for internal control
over financial reporting and its results in light of changes in theenvironment.
In addition, the Company has established the “Food Quality Control
Committee” to manage risks related to food quality, laws, andregulations, and to manage risks related to safety in cooperation
with each department.

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Cross-shareholdings

Risk management

GovernanceG

Risk management

Governance

Main business risks

Basic approach
Mitsuuroko Group has established risk management rules and is developing and operating a risk management
system for all of its businesses.
The Group will ensure the continuity and stable development of its business through risk management practices.
We also place the highest priority on ensuring the quality and safety of our products and services, and strive in goodfaith to eliminate or reduce obstacles to the interests of our customers, business partners, shareholders, investors,
local communities, and other stakeholders, as well as those of all officers and employees of the Group.
We are aware of our responsibility as a supplier of products and services that are widely used throughout society,and we consider it our social mission to stably supply such products and services. In the spirit of compliance, we will
adhere to various laws and regulations, the Charter of Corporate Ethics, and other codes of conduct and rules, andeach of us will autonomously consider what is ethically correct conduct and act according to our value judgment.

Monitoring

For the purpose of promoting compliance and risk
management, the Group has set up a “Risk Management
Committee” to supervise the risk management of the entire
Group, and Finance & Control promotes and manages theseacross the Group.
The Group has appointed an “Internal Control Manager,”“Internal Control Promoter,” and “Internal Control Promotion
Committee Member” for each department to disseminate
information related to compliance in each department, and toserve as a consultation contact point for employees on-site.
Regarding the risk management process, Finance & Control
promotes and manages risk across the entire Group, andreports monthly to the Board of Directors risks reported by
the Group to prevent problems before they occur.
With regard to detected risks, if a Company-wide response
is deemed necessary, taking into consideration the monetaryimpact and importance of the risk, the Risk Management
Committee discusses the response, and the Board of
Directors makes a final decision on the matter and considers
and implements specific measures to address it.

Through the Monitoring Sheet on Corporate
Governance, Finance & Control visualizes the risks thatshould be focused on and their priorities by accurately
identifying risks for the entire Group and selecting risks
that need to be addressed in a focused manner.
It manages the risks related to matters such ascompliance, rule adherence and information sharing,human resources, finance and accounting, andbusiness, and report monthly to our Board of Directors
to prevent problems before they occur.
Throughout the year, the Company monitors risks,
mainly those of particular importance, and whennecessary, related departments and Internal Auditing
conduct investigations to take corrective measures andprevent recurrence.

Risk management promotion system
Board of Directors
Reporting

Risk reporting

Risk reporting

Instructions

Audit and Supervisory
Committee
Supervision

Risk Management Committee

Management and supervision, risk selection, and policy consultation
Risk reporting
Instructions

Risk reporting(Company-wide risk /Response and advice
Cooperation

Finance & Control

Promotion, management, and monitoring across the GroupMonthly report

Cooperation

Compliance Hotline Secretariat

Corrective and recurrence prevention measures

Cooperation

Risk reporting
Compliance-related)
Response and advice

Internal Auditing

Reporting and consultation

Internal Control Manager

Internal Control Promoter

Internal Control Promotion Committee Member

2. Productprocurement

The cost of sales of petroleum products, LPG, and electricity, the Groupʼs core products, may fluctuate due toEnergy Solutions
changes in crude oil prices and CP of LPG, trends in foreign exchange rates, and wholesale electricity market
Business / Powerthrough electricity supply crunch caused by inclement weather and international conditions, etc., which
Large prices
may affect the Groupʼs business performance.
& Electricity
To mitigate these risks, attempts are made to hedge transactions using futures and other instruments and to
Businessdiversify procurement sources as necessary, but these risks cannot be completely avoided.

3. Salesstrategy

The Groupʼs core businesses are the Energy Solutions Business, which sells household energy such as
petroleum products, LPG and related equipment, and the Power & Electricity Business, which generates
Energy Solutions
renewableenergy such as wind power generation and biomass power generation and conducts electricity
Business / Power
Medium retail for general households.
& Electricity
Competition among competitors for customers is intensifying due to greater freedom of choice in energy andBusinessmaximum price curtailment, among other factors, and a decrease in the number of customers and drop insales prices due to these factors may affect the Groupʼs profitability.

4. Disasters
etc.

Each of the Groupʼs business sites includes petroleum product and LPG storage facilities, power plants, andEnergy Solutions
Business / Power Very other facilities.
Although the Company conducts periodic inspections in accordance with laws and regulations, inspects& Electricity
large facilities through a voluntary safety system, and makes periodic repairs, a major earthquake or other disaster
Business
could cause a leakage accident or damage to assets.

5. Investments
All businessesetc.

In order to strengthen its management base, the Group establishes subsidiaries or affiliated companies inJapan and overseas, and enters into capital tie-ups with external parties.
With regard to investments, etc., we make decisions after giving due consideration to investment risks, etc.,
periodically check the possibility of recovering the investment value. However, if the financial conditions
Medium andand business performance of the investee deteriorate due to changes in the business environment or
unforeseeable circumstances, and the possibility of recovering the investment decreases, or the stock pricefalls below a certain level, we may incur a partial or total loss on our investment, which may affect our financial
condition and business performance of the Group.

6. Non-current
All businesses
assetsThe Group owns a number of business fixed assets, all of which are essential to the conduct of its businessand are recognized as generating sufficient cash flow in the past and present.
Medium Although we regularly check the possibility of recovering the value of our investments, future trends inland prices and changes in the Groupʼs earnings situation may affect our financial position and businessperformance of the Group.

7. Laws andregulations

All businesses

There are a wide variety of laws and regulations that the Group must comply with in the course of its business
operations.
The Energy Solutions Business and Power & Electricity Business are subject to the High Pressure Gas Safety
Act, the Fire Service Act, and the Electricity Business Act, etc., while the Foods Business is subject to various
regulations under food-related laws and quality inspections by external public organizations.
in the future, we may be subject to various legal restrictions, such as the introduction ofMedium Furthermore,
greenhouse gas emission regulations and carbon taxes, amid the global demand for stronger CO2 emissions
reduction efforts and decarbonization.
Violations of laws and regulations applicable to the Group may hinder the continuation of our businessactivities due to penalties, compensation for damages, or damage to the Groupʼs reputation, etc.
In addition, significant capital investment may be required in the future in the event of major revisions ortightening of regulations, or the establishment of regulations that are currently unforeseeable.

8. Overseas
Business

Overseas
Business

The Group conducts overseas business in Asia, and in addition to foreign exchange risks, we are subject
risks inherent in overseas business in general, such as unforeseen circumstances arising from political,
Large toeconomic, and social conditions in each country, and changes in various laws and regulations, which mayhinder the continuation of our business and affect our financial position and business performance.

9. Spread of
COVID-19

Foods Business /decrease in customers due to a temporary shutdown of operations at the stores of the Foods Business andLiving & Wellness Large A
the hot bath facilities and bowling alleys of the Living & Wellness Business may affect the Groupʼs profitability.
Business

Risk factor by business segment
EnergySolutions
Business

Power &
Electricity
Business

Compliance information sharing/consultation contact point
Monitoring Sheet on Corporate Governance
1 Compliance 2 Rule adherence and information sharing 3 Human resources 4 Finance and accounting 5 Business 6 Overall

Risk description

Demand for petroleum products (heating oil) and LPG, the Groupʼs core products, generally increases when
Energy Solutions
Large temperatures are cooler. As such weather conditions can cause net sales to fluctuate and affect the Groupʼs
Businessbusiness performance.

Reporting and consultation

Identification, evaluation, and reporting of risks, and implementation of risk response measures

Degree ofimpact1. Demand
trend

Auditing

Each division / each company of the Group

Relevantbusinesses

Risks

Recognizing the possibility of these risks, the Group
strives to avoid their occurrence and to respond tothem when they do occur.

Foods
Business

Risk description

Risk description• Fluctuation in cost of sales due to crude oil prices, CP*1/MB*2 of
LPG, and exchange rates• Impact of COVID-19 on logistics infrastructure*1 Contract Price: Contracted import price;*2 Mont Belvieu: US-produced LPG price index• Policy risks associated with changes in administrative policy andimpact on system development• Necessity of procuring low cost power and developing powersources to achieve competitiveness in electric power sales• Impact of power outages caused by natural disasters on IPP
business• Drop in electricity unit selling price caused by intensifiedcompetition• Impact of increased costs from obligation to offer non-fossil energy• Capacity contributions at the start of the capacity market• Damage to brand image and impact on business performancein event of quality-related accident at franchised stores of store
brands• Risk of decreased sales due to closing of stores in conjunction withthe spread of COVID-19

Living &Wellness
Business• Fluctuations in real estate market• Obsolescence of property in commercial facilities (Decline incompetitiveness)• Delayed response to deterioration of owned real estate (Decline incompetitiveness and increase in repair costs)• Risk of decrease in SPA EAS and Hamabowl customers due tothe spread of COVID-19

Overseas
Business• Risks in exchange rates• Unforeseen circumstances arising from political, economic, socialand other conditions in each country• Changes in various laws and regulations• Risks inherent in Overseas Business in general

Others• Risk receivables for lease customers arising from economic
conditions, monetary policies, or the spread of COVID-19•Impact of leakage of personal information (including specificpersonal information) on business performance, etc.
• Risk of system outage due to system failure• Natural disaster risk and insurance underwriting risk of each
insurance company arising from climate change

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Promotion system and process of risk management

Risks that may affect the Groupʼs stock price, financial
position, and business performance include thefollowing.

Compliance

GovernanceG

Compliance

GovernanceCompliance reporting system

Basic approach
Mitsuuroko Group has declared to society that it would give consideration to the global environment,comply with relevant laws and regulations, and enhance environmental preservation.
We have also advocated the need for ethics by stating in our corporate philosophy that we consistently
conduct our business with integrity.
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 corporate social responsibility, as well as activities that take into
consideration environmental preservation and resource saving.

1

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

2

Respect the personality and individuality of employees and create a comfortable and fulfilling
work environment
Mitsuuroko Group will value the independence and creativity of each and every employee and foster a corporate culture in which
they are fully utilized in its corporate activities.
Mitsuuroko Group will protect workplace safety and the health of its employees, respect human rights, and ensure a healthy work
environment free from discrimination.

4

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

5TargetFrequency of
implementation

IT compliance training

All officers andemployees

Once a year

Group management
compliance training

Management

Once a year

Training for supervising
officers

Supervising
officers

Frequency of
implementation

Group company accounting
training

Accounting
managers

Frequency of
implementation

Content of training

Content of training

TargetFrequency of
implementation

New management training

Newly
appointed
managers

Once a year

Training for managers incharge of safety

Managers
in charge ofsafetyOnce a year

Group new employee
training

New
employees

Once a year

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

3

Mitsuuroko Group regularly conducts compliance training by rank and theme.

Contribute to the preservation of the global environment and the creation of a prosperous and livable society

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

Mitsuuroko Group will be aware that it receives various benefits from the Earth, including the resources necessary for its businessactivities, and that it is the Groupʼs responsibility to preserve the global environment in a better state.

Implementation of education on compliance and harassment
Compliance Handbook
Mitsuuroko Group publishes the “Compliance Handbook,”
a combination of the “Charter of Corporate Ethics” andthe “Code of Conduct Casebook,” which explains thecode of conduct stipulated according to the Charter ofCorporate Ethics in an easy-to-understand manner.
In order to enhance the understanding of the Charter ofCorporate Ethics, we have sought to make it easier tocomprehend the necessary actions needed to be taken
by officers and employees by giving specific examples
from daily life in understandable ways. For this reason,
50 of the 100 cases in the handbook have been
converted into easy-to-read manga cartoons.

We have produced an educational DVD on compliancebased on case studies, and together with the DVD
on harassment, we are conducting education oncompliance by having all officers and employees of
the Group watch it during the compliance small group
activities that we have been conducting on a regularbasis.
In addition, in order to continuously educate all
employees of Mitsuuroko Group about complianceand to strengthen their awareness of compliance, we
regularly distribute a “Compliance Newsletter” on thecompany intranet every week, featuring news of public
interest and familiar examples.

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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

set forth in the Charter of Corporate Ethics as theirimportant role and are making utmost efforts to ensurethat they are firmly established within the Group.
In addition, in the event of a conflict with this Charterof Ethics, officers and employees take responsibility
for resolving the problem, investigating the cause, andimproving operations to prevent recurrence.

Charter of Corporate Ethics

73

etc., we 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.

Compliance training

Mitsuuroko Group Standard of Conduct
Mitsuuroko Group has established the “Charter ofCorporate Ethics” as a code of conduct to be observedby the Company and its officers and employees in thecourse of the various corporate activities of the Group
companies.
The officers and employees of each Group company
take the initiative in practicing the normative behaviors

For the purpose of preventing and early detectionof organizational 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
from the Company employees, business partners,

ComplianceG

Governance

GovernanceCompliancePrevention of bribery
Based on our management philosophy and “Charterof Corporate Ethics,” the Group promotes sincere
corporate activities based on high ethical standards,
always from the perspective of corporate social
responsibility.
The Group aims to conduct measures to prevent
bribery in its corporate activities by establishing andspreading awareness of the Charter of Corporate
Ethics, employment rules, Compliance Rules, and risk
management rules, etc.
We have enacted and announced Mitsuuroko Group
Basic Policy on Prevention of Bribery, promoted efforts
to prevent bribery across the Group with a mindset offair 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.

Mitsuuroko Group Basic Policy on Prevention of Bribery

1

Education and spreading understanding
The Company has been aiming for education and spreading
understanding of the prohibition on bribery in compliance training
and internal materials.
Because there are different restrictions on overseas transactions
from those in Japan, the Company shall thoroughly spread anawareness of the prohibition of bribery in and outside Japan andfurther expand the scope of training.
Also, the Internal Auditing shall take efforts to execute controls andextract risks beforehand through regular audits.

25(1) Prohibition of bribery
In corporate activities, the Company shall notoffer, 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 forsponsored activities, actions are also
prohibited if they are in fact equivalent
with bribery or improper granting ofinterests.
Also, officers and employees areprohibited from instructing, suggesting,or supporting bribery of a third party
such as an agent, advisor, consultant,or subcontractor hired in order to collectand analyze information, secure orders
for Mitsuuroko Group, or otherwise
request cooperation for the purposeof promoting business, or to request
services for which Mitsuuroko Group hasreceived orders.
The Company shall constantly maintain a stanceof 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 shall not perform any actionthat may be suspected of accepting bribes fromsociety.
4

Review and management of payment
records
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 aset period.
In all circumstances, off-balance-sheettransactions are strictly prohibited.

Education
The Company performs training related tocompliance that includes education of this basic
policy and regular case studies for officers andemployees in order to comply with the prohibitionof bribery.

6

Compliance system, reporting, andinternal 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 arealso responsible for making their officers andemployees comply with this basic policy.
Also, when we become aware of a violation ofthis basic policy or suspicion thereof, we willreport it immediately to the manager in charge oflegal affairs, the manager of the Internal Auditing,or the hotline in or outside the Company.
Mitsuuroko Group has established and spreadawareness 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.

7(2) Prohibition of accepting bribes

Compliance of applied laws andregulations
We understand that corruption and bribery areunacceptable 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, andrestrictions applied in each country and region
where we conduct corporate activities and do
not bribe foreign public officials, etc.
We shall not perform any actions that may leadto suspicion of bribery.
1. Japan: Unfair Competition Prevention Act (Article18), 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 totreaties for the prevention of bribery of foreign
officials in international trade

Prohibited actions

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

8

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

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Mitsuuroko Group Holdings Co., Ltd.

75

3

Mitsuuroko Group promotes business activities
based on its Charter of Corporate Ethics andmanagement philosophy of “As a Lifestyle
Producer, we consistently conduct ourbusiness with integrity and from the customerʼs
perspective.”
In accordance with laws and regulations and theirintentions, we prohibit the entertaining or giftgiving to public officials, etc.
We aim to conduct measures for the preventionof bribery by establishing and spreadingawareness of the Charter of Corporate Ethics,
employment rules, Compliance Rules, and risk
management rules, etc.
The Group enacted a basic policy related toprevention of bribery overseas and in Japan as it
conducts global business.
We understand that it is the duty of each
Mitsuuroko Group company, officer, andemployee to comply with this basic policy. As
such, we make the following declaration.
In accordance with our Basic Policy on
Prevention of Bribery, we shall comply with thelaws applied in each country and region and not
engage in bribery of foreign officials.
By clarifying the policies that are the foundationof this basic policy, we promote efforts to prevent
bribery across all of Mitsuuroko Group with amindset 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.

Operation structure for prevention of bribery
Head of Legal & Secretary shall be responsible for managing
prevention of bribery.
The Presidents of each Group company are also responsible formaking their officers and employees comply with this basic policy.
Regarding approval of entertaining, gift-giving, and donations in
Overseas Business, and approval of agreements and confirmationof due diligence results related to hiring third parties, eachdepartment, the President of each company, and the finance andaccounting department and the legal affairs department of
Mitsuuroko Group confirm.
When we become aware of a violation of this basic policy orsuspicion thereof, we will report it immediately to the manager incharge of legal affairs, the manager of the Internal Auditing, or thecompliance hotline in or outside the Company.
We have spread awareness of this reporting structure.
The Company performs regular self-inspections of the statusof compliance with this basic policy and the Internal Auditing
executes controls and prevents risks beforehand by regularly
conducting audits related to the compliance and operation of thisbasic 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.

Basic policy

Compliance/Cybersecurity

G

GovernanceCompliance

Governance

Cybersecurity

Tax policy

Basic approach

Mitsuuroko Group has always complied with the tax
laws applied in each country and region it operates
in and pays appropriate taxes. However, to increaseawareness of tax compliance and tax transparency
throughout the entire Group and further enhance tax
governance, we have formulated the “Mitsuuroko
Group Tax Policy.”

As we expand our business globally, going forward, we
will fulfill our corporate social responsibility and further
improve our corporate value through adhering to thisTax Policy, complying with the tax laws applied in eachcountry and region, and paying appropriate taxes.

Mitsuuroko Group Tax Policy
1

Basic policy

Mitsuuroko Group promotes business activities based on its Charter of Corporate Ethics and management philosophy of “Asa 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 andmay damage the Groupʼs business and brand value as well as the interests of stakeholders, including local communities andbusiness 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

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 intax evasions or opaque tax administration that hinders the sound development of the world economy.

77
3

Tax governance and human resources development
The Group CFO is responsible for the development and maintenance of the tax governance of the entire Group as well as thedevelopment 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 and resolved. Whenever tax-related matters ofsignificant 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 participation intraining sponsored by external specialists. It then conducts workshops for the accounting (tax) departments of each Group
company based on the advice they have received from the external experts, educating employees on tax compliance asnecessary.
In this way, we foster and strengthen the human resources who handle the Groupʼs tax matters, ensuring the appropriatenessof tax governance.

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

Response to anti-tax haven rules

Information security targets
To reduce cyber risk, we maintain defense in depth
and detection measures, actively developing humanresources in security measures and sharing information
with other companies to improve our knowledge andexpertise through working with external organizations

Cybersecurity response system
We have established the Risk Management Committee
as a subordinate body of the Board of Directors aswell as the Information Systems Department under the
CTO / CIO. Through this framework, we manage theinformation security governance of the entire Group.
The Risk Management Committee and the Board of
Directors receive reports on the status of the Groupʼs

Risk Management
Committee

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

Relations with tax authorities

Board of Directors

CTO/CIO

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 business activities, we will
optimize tax costs and improve our corporate value.

8

security measures on a regular basis.
Aiming to prevent cybersecurity incidents and minimize
the damage or impact caused if they occur, eachdepartment and the subsidiaries that support theGroupʼs business work together to build an information
security promotion system and ensure cybersecurity.

Representative Director
and President

Minimizing tax risk
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 to minimize tax
risk through making appropriate judgments after adequate research, evaluation, and consideration of the various choices.
Furthermore, we will confirm important tax-related issues with tax authorities in advance to clarify the handling of taxation.

7

that handle cybersecurity, as well as analyzing andresponding to new cyber attack methods.
We will constantly endeavor to reinforce our approachto cybersecurity to provide safer and more secureservices to our customers.

Internal Auditing

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.

ICT Leader Energy
Solutions Business

ICT Leader Power &Electricity BusinessInformation Systems
Department

ICT Leader Foods
Business

ICT Leader Living &Wellness BusinessGroup Systems
Promotion Department
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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

Tax compliance

As an infrastructure business operator that supplies energy and services related to everyday lifestyles,
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 andsecurity.
While transactions via the Internet and smartphones have increased with the rapid development of digitaltechnology in recent years, cyber risk is also growing due to the advancement and sophistication of cyberattacks.
In light of changes in the environment such as the recent use of digital technology and increased threatof cyber attacks, we are working to strengthen cybersecurity measures within our various operations andbusinesses, such as the Energy Solutions, Power & Electricity, Foods, and Living & Wellness businesses.

Cybersecurity/Personal information protection

G

Governance

Governance

Cybersecurity

Personal information protection

Practices to ensure cybersecurity

Strengthening the sharing of information with Group companies

As initiatives to ensure cybersecurity, we secure
the budget and human resources for technicalcountermeasures such as those for preventing theunauthorized access of systems. In addition, since IT
measures alone are not sufficient to counter increasingly
sophisticated cyber attacks, we conduct periodic
e-learning training (once a year) and unannounced drills
on countermeasures against suspicious e-mails for theGroupʼs officers and employees, including contract
employees and the employees of business partners,
working to strengthen the information security of theentire organization.

To make sure that our security policy is applied to all
Group companies, we monitor the status of security
measures of each company of the Group while ensuring
security tools and operations meet a certain standard,
working to strengthen governance and improve security
across the entire Group.

Basic approach
The Group deeply acknowledges the importance of privacy in respect to our customersʼ 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, meet their expectations, and build trust.
In addition, we pay special consideration when handling the personal information of children and seek toobtain their parentsʼ consent in the process.

Privacy policy
Mitsuuroko Group Holdings Co., Ltd. and each Mitsuuroko Group company handle the personal information ofcustomers as outlined below.
1

Purpose of use

2

3

80
4

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 the status of transactions
3) Results of various surveys conducted by each Mitsuuroko
Group company
4) Details of inquiries from customers

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 theoutside, falsification, and unauthorized access.
In addition, we may delete the personal information ofcustomers when we judge that the purpose of use has
been achieved and it is no longer necessary to keep the
personal information.

Shared use of personal information

Regarding the following 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 below.

For proposals and information regarding products,
services, campaigns, events, etc. provided by each
Mitsuuroko Group company
For surveys, research and development to improve
the quality of products and services provided byeach Mitsuuroko Group company
For the conducting of surveys about the products
and services provided by each Mitsuuroko Group
company
For proper execution of business management
operations as a group, such as understanding andmanaging various risks

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 thecustomerʼs own personal information managed by us, wewill confirm the identity of the customer before honoringthese requests and taking appropriate actions promptly.

The responsibility of managing information for shared use
lies with the respective Mitsuuroko Group companies thathave acquired the personal information.

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 and employees to ensure compliance with laws,
regulations, and other standards concerning personal
information.
2 We appoint a personal information supervisor who
understands and complies with the matters specified in
the internal rules of the Company. Their responsibilities
include conducting training, implementing safetymeasures, and thoroughly communicating information toensure that all of those who are engaged in the handlingof personal information, including its acquisition and use,
understand and comply with the internal rules.

3 We request the cooperation of our business partners andcontractors whenever necessary for the protection of
personal information.
4 We improve the privacy policy, internal rules, andthe management of personal information protection
as necessary in accordance with changes in laws,
regulations, and the social environment.
5 We ensure this privacy policy can be accessed at all times
by customers via means such as our company website
and company brochures.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

Provision of personal information to third
parties

Each Mitsuuroko Group company will not entrust or
provide the personal information of customers to third
parties, except upon the customersʼ consent or when weare legally obligated to so do after a receipt of requestfrom judicial or governmental authorities. Even after
customers give their consent, we ensure confidentiality
agreements are in place to protect personal informationin the event that we disclose, entrust, or provide personal
information to third parties, and we do our upmost to
protect the personal information of our customers.

79

Purposes of use

Each Mitsuuroko Group company acquires and uses
the personal information of customers only for purposessuch as publishing it on official websites or reasons which
we notify our customers about. Each Mitsuuroko Group
company will not acquire or use personal information for
purposes other than the above without the consent of thecustomer.

Appropriate information disclosure/Supply chain management

G

GovernanceAppropriate information disclosure

Governance

Basic approach

Supply chain management
Basic approach

As a company conducting business with a mission to benefit society, we consider the timely andappropriate provision of information to all our stakeholders as a matter of importance.
To enable customers to use the Groupʼs products and services safely, securely, and comfortably, we
proactively and appropriately disseminate company information as well as information on the safety anduse of our products and services.

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

Appropriate information disclosure
Mitsuuroko Group website
To gain the understanding of our customers, we
promptly and appropriately share information on
our website, such as company information, various
information that concerns the lifestyles of customers,
and information related to products and services.

We regularly offer necessary information to ourcustomers whenever they contemplate the products orservices offered by the Group.
In addition to complying with the Act against
Unjustifiable Premiums and Misleading Representations,
we have established a checklist to ensure appropriate
advertising and representations of our products orservices. We cooperate with the Representations Officer
when producing flyers, catalogues, or pamphlets,
working to thoroughly provide correct information.
In addition, we work to enable customers to use
products and service safely, acting in accordance withthe prescribed guidelines on methods for appropriate
provision of information established by the Ministry of
Economy, Trade and Industry in conjunction with the full
liberalization of the electricity and gas retail market.

Timely disclosure system overview
1

Provide safe and high-quality products and services

Appropriate disclosure of information in compliance withlaws and regulations, and our voluntary standards.

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

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

Publication of “Declaration of Partnership Building”

Timely disclosure policy

Timely disclosure system

1) Decisions The departments in charge of disclosure in Finance & Control (Finance & Control, Financial
Planning & Analysis and Finance & IR Team) confirm in advance whether decisions madeby management meetings (the Board of Directors and the Management Committee) of theCompany and its subsidiaries are subject to timely disclosure. If the decision is subject totimely disclosure, then, after a management meeting makes a decision, the departmentsin charge of the disclosure will promptly disclose the information 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 charge of 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 madeconcerning disclosure by a management meeting of the Company or its subsidiaries, it will
be promptly disclosed by the departments in charge of disclosure in accordance with the
instructions of the Head of Finance & Control.
3) Financial After a decision has been made by a management meeting (the Board of Directors and theinformation Management Committee) of the Company or its subsidiaries, financial information is promptly
disclosed by the departments in charge of disclosure in accordance with 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, the Company makes thorough efforts to prevent insider trading inaccordance with the Regulations for Prevention of Insider Trading.

We will continue to carry out
corporate 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.

promote sincere corporate activities based on highethical standards, always from the perspective ofcorporate social responsibility, and thoroughly ensuretransactions respect human rights by complying with
“Mitsuuroko Group Human Rights Policy.”Declaration of Partnership Building

The Companyʼs basic policy is to disclose necessary information to stakeholders in a timely andappropriate manner. The Company will disclose “decisions,” “occurrences,” and “financial information” ina timely manner, as determined by the Board of Directors, in accordance with the provisions set forth by
the Tokyo Stock Exchange.
2

82

Guided by our “Charter of Corporate Ethics,” we will

We declare that we will focus efforts on the following matters in order to build new partnerships by promoting
collaboration and mutual prosperity with supply chain and value-creating business operators.
1

Mutual prosperity throughout the supply chain, and newcollaboration transcending business scales, affiliations, etc.

We will increase added value throughout the supply chain byreaching out, 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 trade relationships and business scales,
etc. From the perspective of work style reform or ensuringbusiness continuity in times of disaster, we will support ourbusiness partners by helping them to introduce telecommuting
systems, advising them on business continuity planning (BCP),
or providing other forms of assistance.
While deepening collaboration among companies, we will also
work to reduce CO2 emissions, increase energy efficiency, andcontribute to local communities.
2

Compliance with “Promotion Standards”

We will comply with the desirable trade practices set forth formain contractors and subcontractors (“Promotion Standards”
prescribed in the Act on the Promotion of Subcontracting
Small and Medium-sized Enterprises), actively working tocorrect trade practices and business customs that obstruct thepartnership building.

Method for determining prices

1

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 laborcosts.
When concluding agreements that include determined transaction prices, we, as
the main contractor, will state and issue the terms of the contract in writing.

Terms of payment by bill, etc.

2

In principle, payments will be made in cash.

3Intellectual property and know-how

We will not request our subcontractors enter unilateral nondisclosure agreements,
or take advantage of our trading position to demand disclosure of know-how ortransfer 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 suddenchanges to the specifications of jobs without compensating them appropriately.
When disasters or other such events occur, we will not impose unilateral trading
burdens on subcontractors, and upon the resumption of operations, we willcontinue 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 businessthat is fair and respectful of human rights.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

81

Charter of Corporate Ethics (extract)

GRI Standards table

G

Governance

GRI Standards table

GovernanceCommon standards
Items

Disclosures

Disclosure location

Items

GRI 2: General Disclosure Matters (2021)

1.
Organization
andreportingpractice2.
Business
activities
and labor

2-1

Details of the organization

SUSTAINABILITY REPORT 2022 P. 94: Company Profile
BUSINESS REPORT 2022 P. 54: Company Information
Website Company Information

2-2

Entities covered by the organizationʼssustainability report

SUSTAINABILITY REPORT 2022 P. 3: Editing Policy, P. 94: Company Profile
Website Editing Policy/Company Profile

2-3

Reporting duration, reporting frequency, contact

SUSTAINABILITY REPORT 2022 P. 3: Editing Policy
Website Editing Policy/Company Profile

2-4

Revisions and corrections of informationー

2-5

External assurance

SUSTAINABILITY REPORT 2022 P. 93: Independent Assurance Report
Website Independent Assurance Report

2-6

Activities, value chain, other trading relationships

Securities Report/Quarterly securities report (113th Securities Report, P. 6-7)
SUSTAINABILITY REPORT 2022 P. 5: Model of Value Creation
BUSINESS REPORT 2022 P. 11: Business Model and Outcomes
Website Philosophy/Vision/Model of Value Creation

2-7

Employees

Securities Report/Quarterly securities report (113th Securities Report, P. 12)
BUSINESS REPORT 2022 Financial Data (Main data for 11 years, P. 49)
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
Website ESG Data (Social data)

2-8

Labor other than employees

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
Website ESG Data (Social data)

2-9

Governance structure and composition

Nominating and selecting the highest
governance body

Securities Report/Quarterly securities report (113th Securities Report, P. 35)
SUSTAINABILITY REPORT 2022 P. 67: Corporate governance (Corporate governance structure)
BUSINESS REPORT 2022 P. 31: Corporate governance (Management team)Website Corporate governance

2-11

Chair of the highest governance body

Securities Report/Quarterly securities report (113th Securities Report, P. 35)
SUSTAINABILITY REPORT 2022 P. 67: Corporate governance (Corporate governance structure)
BUSINESS REPORT 2022 P. 31: Corporate governance (Management team)Website Corporate governance

2-12

Role of highest governance body in supervisionof impact management

Securities Report/Quarterly securities report (113th Securities Report, P. 35)
SUSTAINABILITY REPORT 2022 P. 67: Corporate governance (Corporate governance structure)
BUSINESS REPORT 2022 P. 31: Corporate governance (Management team)Website Corporate governance (Corporate governance report)

2-10

5.
Stakeholder
engagement

Disclosure location

2-22

Announcement on strategies for sustainable
development

SUSTAINABILITY REPORT 2022 P. 7: Message from the President
Website Message from the President

2-23

Policy announcement

SUSTAINABILITY REPORT 2022 P. 24: Climate change initiatives
BUSINESS REPORT 2022 P. 13: Management Policy and Strategy of Mitsuuroko Group
BUSINESS REPORT 2022 P. 15: The Financial Strategy of Mitsuuroko Group
Website Climate change initiatives

2-24

Practices of policy announcement

SUSTAINABILITY REPORT 2022 P. 24: Climate change initiatives
BUSINESS REPORT 2022 P. 13: Management Policy and Strategy of Mitsuuroko Group
Website Climate change initiatives

2-25

Corrective process of negative impacts

ー

2-26

Mechanisms for seeking advice and raisingconcerns

SUSTAINABILITY REPORT 2022 P. 71: Risk management, P. 73: Compliance
Website Risk management
Website Compliance

2-27Compliance with laws and regulationsSUSTAINABILITY REPORT 2022 P. 73: Compliance
BUSINESS REPORT 2022 P. 29: Compliance
Website Compliance

2-28

Associations with memberships

SUSTAINABILITY REPORT 2022 P. 17: Stakeholder Engagement
Website Stakeholder Engagement

2-29

Approach to stakeholder engagement

SUSTAINABILITY REPORT 2022 P. 17: Stakeholder Engagement
Website Stakeholder Engagement

2-30

Labor agreement

Securities Report/Quarterly securities report (113th Securities Report, P. 12)

GRI 3: Material Topics (2021)
3-1

Process for determining material topics

SUSTAINABILITY REPORT 2022 P. 13: Materiality identification and review
Website Materiality

3-2

List of material topics

SUSTAINABILITY REPORT 2022 P. 13: Materiality identification and review, P. 15: Materiality and KPI
BUSINESS REPORT 2022 P. 17: Materiality
Website Materiality

Management of material topics

SUSTAINABILITY REPORT 2022 P. 11: Sustainability management promotion system
Website Sustainability promotion system

3-3

Sector standards
Items

Disclosures

GRI 11: Petroleum/Gas (2021)
Greenhouse gas (GHG) emissions

SUSTAINABILITY REPORT 2022 P. 25: Climate change initiatives
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Climate change initiatives (TCFD)
Website ESG Data (Environmental data)

11-2

Climate-related adaptation, resilience, andtransition

SUSTAINABILITY REPORT 2022 P. 29: Response to climate change
SUSTAINABILITY REPORT 2022 P. 43: Stable supply of energy/electricity
SUSTAINABILITY REPORT 2022 P. 47: Disaster prevention measures
BUSINESS REPORT 2022 P. 25: Enhancement of safety and disaster response measures
Website Response to climate change
Website Stable supply of energy/electricity
Website Disaster prevention measures

11-3

Emissions

SUSTAINABILITY REPORT 2022 P. 23: Environmental risk management (Management of chemicals and contaminants)
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Environmental risk management (Management of chemicals and contaminants)
Website ESG Data (Environmental data)

11-4

Biodiversity

SUSTAINABILITY REPORT 2022 P. 36: Response to climate change (Activities to protect
and nurture the forests around water collection sites), P. 59: Local communities (Activities
to protect and nurture the forests around water collection sites)
Website Response to climate change

11-5

Waste

SUSTAINABILITY REPORT 2022 P. 23: Environmental risk management (Management of chemicals and contaminants)
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Environmental risk management (Management of chemicals and contaminants)
Website ESG Data (Environmental data)

11-6

Water and wastewater

SUSTAINABILITY REPORT 2022 P. 22: Environmental risk management (Water risk initiatives)
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Environmental risk management (Water risk initiatives)
Website ESG Data

11-7

Closure and rehabilitation

ー

11-8

Preservation of assets and management ofcritical incidents

SUSTAINABILITY REPORT 2022 P. 71: Risk management
Website Risk management

Occupational health and safety

SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management
Website ESG Data (Social data)

11-1

SUSTAINABILITY REPORT 2022 P. 11: Sustainability management promotion system,

3.
Governance

2-13

Delegating responsibility of impact management

2-14

Highest governance bodyʼs role in sustainability
reporting

2-15

Conflicts of interest

2-16

2-17

Communicating critical concerns

Collective knowledge of highest governance bodyWebsiteWebsiteP. 21: Environmental management (Environmental management promotion system)
Sustainability promotion system
Environmental management (Environmental management promotion system)SUSTAINABILITY REPORT 2022 P. 11: Sustainability management promotion system,

P. 21: Environmental management (Environmental management promotion system)
Website Sustainability promotion system
Website Environmental management (Environmental management promotion system)SUSTAINABILITY REPORT 2022 P. 67: Corporate governanceWebsite Corporate governance

Securities Report/Quarterly securities report (113th Securities Report, P. 37)
SUSTAINABILITY REPORT 2022 P. 70: Corporate governance (Status of the risk management system),P. 71: Risk management
Website Corporate governanceWebsite Risk management
SUSTAINABILITY REPORT 2022 P. 68: Corporate governance (Areas where Directors are expected to excel in)
BUSINESS REPORT 2022 P. 32: Corporate governance (Areas where Directors are expected to excel in)
Website Corporate governance (Areas where Directors are expected to excel in)
SUSTAINABILITY REPORT 2022 P. 70: Corporate governance (Evaluation of the

2-18

2-19

effectiveness of the Board of Directors)

Evaluating the highest governance bodyʼsperformance

BUSINESS REPORT 2022 P. 33: Corporate governance (Evaluation of the effectiveness of the Board of Directors),

Remuneration policies

Securities Report/Quarterly securities report (113th Securities Report, P. 53)
SUSTAINABILITY REPORT 2022 P. 68: Corporate governance (Remuneration, etc. for Directors)
BUSINESS REPORT 2022 P. 32: Corporate governance (Remuneration, etc. for Directors)
Website Corporate governance (Remuneration, etc. for Directors)

P. 34: Message from External Directors
Website Corporate governance (Corporate governance report)

2-20

Process for determining remuneration

Securities Report/Quarterly securities report (113th Securities Report, P. 53)
SUSTAINABILITY REPORT 2022 P. 68: Corporate governance (Remuneration, etc. for Directors)
BUSINESS REPORT 2022 P. 32: Corporate governance (Remuneration, etc. for Directors)
Website Corporate governance (Remuneration, etc. for Directors)

2-21

Annual total remuneration ratioーDisclosure location

11-9

84

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

83

Securities Report/Quarterly securities report (113th Securities Report, P. 35)
SUSTAINABILITY REPORT 2022 P. 11: Sustainability management promotion system,
P. 67: Corporate governance (Corporate governance structure)
SUSTAINABILITY REPORT 2022 ESG Data (Governance data, P. 92)
BUSINESS REPORT 2022 P. 30: Corporate governanceWebsite Corporate governance4.
Strategies,
policies,
practices

Disclosures

GRI Standards table

G

Governance

GRI Standards table

Governance

Sector standards
Items
11-10

11-11

11-12

11-13

Disclosures

Disclosure location

Employment practices

SUSTAINABILITY REPORT 2022 P. 55: Inclusion & diversity
SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
Website Inclusion & diversity
Website Health-focused management

Non-discrimination and equal opportunity

Forced and compulsory labor and modern
slavery

Freedom of association and collective
bargaining

SUSTAINABILITY REPORT 2022 P. 49: Respect of human rights
Website Respect of human rights

Securities Report/Quarterly securities report (113th Securities Report, P. 12)
SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management
Website ESG Data (Social data)
SUSTAINABILITY REPORT 2022 P. 5: Model of Value Creation
BUSINESS REPORT 2022 P. 13: Management Policy and Strategy of Mitsuuroko Group
BUSINESS REPORT 2022 P. 11: Business Model and Outcomes
SUSTAINABILITY REPORT 2022 P. 17: Stakeholder Engagement
SUSTAINABILITY REPORT 2022 P. 59: Local communities
Website Stakeholder Engagement
Website Local communities

11-14

Economic impacts

11-15

Local communities

11-16

Land and resource rights

ー

11-17

Rights of indigenous peoples

SUSTAINABILITY REPORT 2022 P. 49: Respect of human rights
Website Respect of human rights

Disputes and public safety

SUSTAINABILITY REPORT 2022 P. 71: Risk management
Website Risk management

11-19

Anti-competitive behavior

SUSTAINABILITY REPORT 2022 P. 73: Compliance
BUSINESS REPORT 2022 P. 29: Compliance
Website Compliance

Anti-corruption

SUSTAINABILITY REPORT 2022 P. 73: Compliance
SUSTAINABILITY REPORT 2022 P. 75: Compliance (Prevention of bribery)Website Compliance
Website Compliance (Prevention of bribery)

11-20
11-21
11-22

Payment to government
Public policy

205-1
Anticorruption(2016)

205-3
Anti-competitive
Behavior(2016)

Taxes(2019)

Economic
Performance(2016)

201-2
201-3
201-4

MarketPresence(2016)
Indirect
Economic
Impacts(2016)
Procurement
Practices(2016)

202-1
202-2

Direct economic value generated and distributed
Financial implications and other risks andopportunities due to climate change
Defined benefit plan obligations and otherretirement plans
Financial assistance received from public
government
Ratios of standard entry level wage by gendercompared to local minimum wage
Proportion of senior management hired fromthe local community

203-1

Infrastructure investments and services
supported

203-2

Significant indirect economic impacts

204-1

Proportion of spending on local suppliers

SUSTAINABILITY REPORT 2022 P. 75: Compliance (Prevention of bribery)Website Compliance (Prevention of bribery)

Raw
Materials(2016)

207-1

Approach to tax

SUSTAINABILITY REPORT 2022 P. 77: Compliance (Tax policy)
Website Compliance (Tax policy)

207-2

Tax governance, control, and risk management

SUSTAINABILITY REPORT 2022 P. 77: Compliance (Tax policy)
Website Compliance (Tax policy)

ー

301-1

Materials used by weight or volume

ー

301-2

Recycled input materials used

SUSTAINABILITY REPORT 2022 P. 38: Promotion of resource cycle
Website Promotion of resource cycle

301-3

Reclaimed products and their packaging materials

ー

302-1

Energy consumption within the organization

302-2

Energy consumption outside of the organization

SUSTAINABILITY REPORT 2022 P. 29: Response to climate change (Controlling customer
CO2 emissions)Website Response to climate change (Controlling customer CO2 emissions)

Energy(2016)

302-3

Energy intensity

ー

302-4

Reduction of energy consumption

SUSTAINABILITY REPORT 2022 P. 29: Response to climate change
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Response to climate change
Website ESG Data

302-5

Reductions in energy requirements of products
and services

ー

303-1

Interactions with water as a shared resource

SUSTAINABILITY REPORT 2022 P. 22: Environmental risk management (Water risk initiatives)
Website Environmental risk management (Water risk initiatives)

303-2

Management of water discharge-related impacts

SUSTAINABILITY REPORT 2022 P. 22: Environmental risk management (Water risk initiatives)
Website Environmental risk management (Water risk initiatives)

303-3

Water withdrawal

ー

303-4

Water discharge

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 89)
Website ESG Data

303-5

Water consumption

SUSTAINABILITY REPORT 2022
Website ESG Data

304-1

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highbiodiversity value outside protected areas

SUSTAINABILITY REPORT 2022 P. 36: Response to climate change (Activities to protect
and nurture the forests around water collection sites), P. 59: Local communities (Activities
to protect and nurture the forests around water collection sites)
Website Response to climate change

304-2

Significant impacts of activities, products, andservices on biodiversity

ー

304-3

Habitats protected or restored

SUSTAINABILITY REPORT 2022 P. 36: Response to climate change (Activities to protect
and nurture the forests around water collection sites), P. 59: Local communities (Activities
to protect and nurture the forests around water collection sites)
Website Response to climate change

304-4

IUCN Red List species and national conservation
list species with habitats in areas affected byoperations

ー

305-1

Direct (Scope 1) GHG emissions

SUSTAINABILITY REPORT 2022 P. 25: Climate change initiatives
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Climate change initiatives (TCFD)
Website ESG Data

305-2

Indirect (Scope 2) GHG emissions

SUSTAINABILITY REPORT 2022 P. 25: Climate change initiatives
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Climate change initiatives (TCFD)
Website ESG Data

305-3

Other indirect (Scope 3) GHG emissions

SUSTAINABILITY REPORT 2022 P. 25: Climate change initiatives
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Climate change initiatives (TCFD)
Website ESG Data

Disclosure location

Biodiversity(2016)

Securities Report/Quarterly securities report (113th Securities Report, P. 93)
ーーー

SUSTAINABILITY REPORT 2022 P. 43: Stable supply of energy/electricity,

P. 59: Local communities
Stable supply of energy/electricity
Local communities

Emissions(2016)ーー

SUSTAINABILITY REPORT 2022 P. 77: Compliance (Tax policy)
Website Compliance (Tax policy)

Stakeholder engagement and management ofconcerns related to tax
Country-by-country reporting

SUSTAINABILITY REPORT 2022 P. 31: Response to climate change (Initiatives of operatingーWebsiteWebsiteーーー

Securities Report/Quarterly securities report (113th Securities Report, P. 2-3, 34)
BUSINESS REPORT 2022 P. 49: Financial Data
SUSTAINABILITY REPORT 2022 P. 24: Climate change initiatives (TCFD)
Website Climate change initiatives (TCFD)SUSTAINABILITY REPORT 2022 P. 75: Compliance (Prevention of bribery)Website Compliance (Prevention of bribery)

Environmental

Economic
201-1

Operations assessed for risks related tocorruption
Communication and training about anticorruption policies and procedures
Confirmed incidents of corruption and actions
taken
Legal actions for anti-competitive behavior, antitrust, and monopoly practices

207-4Standards for each item
Disclosures

Disclosure location

206-1

207-3

Water
(2018)

Items

205-2

Disclosurescompanies)

SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Response to climate change (Initiatives of operating companies)

ESG Data (Social data, P. 89)

86

SUSTAINABILITY REPORT 2022

11-18

85

Mitsuuroko Group Holdings Co., Ltd.

SUSTAINABILITY REPORT 2022 P. 49: Respect of human rights
SUSTAINABILITY REPORT 2022 P. 55: Inclusion & diversity
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
Website Respect of human rights
Website Inclusion & diversity

Items

GRI Standards table

G

Governance

GRI Standards table

GovernanceStandards for each item
Items

Disclosures

Disclosure location

Items

Disclosures

Disclosure location

403-8

Workers covered by an occupational health andsafety management system

SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management
Website ESG Data (Social data)

403-9

Work-related injuries

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
Website ESG Data (Social data)403-10404-1Work-related ill health
Average hours of training per year per employee
Programs for upgrading employee skills andtransition assistance programs
Proportion of employees receiving regularperformance and career development reviews

Environmental
GHG emissions intensity

ー

305-5

Reduction of GHG emissions

SUSTAINABILITY REPORT 2022 P. 25: Climate change initiatives
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Climate change initiatives (TCFD)
Website ESG Data (Environmental data)

305-6

Emissions of ozone-depleting substances (ODS)

ー

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions

306-1

Waste generation and significant waste-related
impacts

305-4

Waste
(2020)

306-2

306-3

Waste generated

306-4

Waste diverted from disposalー

Waste directed to disposal

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 89)
Website ESG Data (Environmental data)

306-5
Supplier
308-1
Environmental
Assessment
308-2(2016)New suppliers that were screened using
environmental criteria
Negative environmental impacts in the supply
chain and actions takenーSUSTAINABILITY REPORT 2022 P. 82: Supply chain management
Website Supply chain management

SocialEmployment(2016)

401-1

New employee hires and employee turnover

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
Website ESG Data (Social data)

401-2

Benefits provided to full-time employees that are
not provided to temporary or part-time employees

ー

401-3

Parental leave

SUSTAINABILITY REPORT 2022 P. 55: Inclusion & diversity
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
Website Inclusion & diversity
Website ESG Data (Social data)

Labor Relations
402-1(2016)

403-1

403-2

Occupational
Healthand Safety(2018)

403-3

Minimum notice periods regarding operationalchangesーOccupational health and safety management
systemSUSTAINABILITY REPORT 2022 P. 51: Health-focused management
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management

Hazard identification, risk assessment, andincident investigation

SUSTAINABILITY REPORT 2022 P. 47: Disaster prevention measures
SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 P. 71: Risk management
BUSINESS REPORT 2022 P. 27: Health-focused management
BUSINESS REPORT 2022 P. 25: Enhancement of safety and disaster response measures
Website Disaster prevention measures
Website Health-focused management
Website Risk management

Occupational health services

SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management

Education
404-2
and Training(2016)

404-3

Diversityand Equal
Opportunity(2016)

405-2
No Discrimination
406-1(2016)

Ratio of basic salary and remuneration of
women to men
Incidents of discrimination and corrective actions
taken

ー

SUSTAINABILITY REPORT 2022 P. 55: Inclusion & diversity
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 90)
BUSINESS REPORT 2022 P. 28: Promotion of diversity
Website Inclusion & diversity
Website ESG Data (Social data)ーーOperations and suppliers in which the right tofreedom of association and collective bargaining
may be at riskーChild Labor(2016)

408-1

Operations and suppliers at significant risk forincidents of child laborーForced or Compulsory
Labor
409-1
(2016)

Operations and suppliers at significant risk forincidents of forced or compulsory laborー

Security Practices
410-1(2016)

Security personnel trained in human rights
policies or proceduresー

Rights ofIndigenous Peoples 411-1(2016)

Incidents of violations involving rights ofindigenous peoples

ーOperations that have been subject to humanrights reviews or impact assessmentsーEmployee training on human rights policies orprocedures

SUSTAINABILITY REPORT 2022 P. 49: Respect of human rights
SUSTAINABILITY REPORT 2022 P. 58: Human resources development
Website Respect of human rights
Website Human resources development

Significant investment agreements and contracts
that include human rights clauses or that
underwent human rights screeningーOperations with local community engagement,
impact assessments, and development
programs

SUSTAINABILITY REPORT 2022 P. 17: Stakeholder Engagement
SUSTAINABILITY REPORT 2022 P. 59: Local communities
BUSINESS REPORT 2022 P. 23: Contribution to local communities
Website Stakeholder Engagement
Website Local communities

412-1
Human
Rights412-2
Assessment(2016)

412-3

413-1
Local
Communities(2016)
413-2
Supplier Social 414-1
Assessment(2016)
414-2
Public Policy
415-1(2016)

Worker participation, consultation, andcommunication on occupational health andsafetySUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
Website ESG Data (Social data)

Worker training on occupational health andsafetySUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management
Website ESG Data (Social data)

Marketingand Labeling(2016)

403-6

Promotion of worker health

SUSTAINABILITY REPORT 2022 P. 51: Health-focused management
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)
BUSINESS REPORT 2022 P. 27: Health-focused management
Website Health-focused management
Website ESG Data (Social data)

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

ー

403-5

Diversity of governance bodies and employees

SUSTAINABILITY REPORT 2022 P. 58: Human resources development
Website Human resources development

Freedom of
Association and
407-1
Collective Bargaining(2016)

Customer
Healthand Safety(2016)

403-4

405-1

SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 91)

416-1
416-2
417-1
417-2
417-3

Customer Privacy
418-1(2016)

Socioeconomic
Compliance 419-1(2016)

Operations with significant actual and potential
negative impacts on local communities
New suppliers that were screened using social
criteria
Negative social impacts in the supply chain andactions takenーーー

Political contributionsーAssessments of the health and safety impacts ofproduct and service categories
Incidents of non-compliance concerning thehealth and safety impacts of products andservices
Requirements for product and service
information and labeling
Incidents of non-compliance concerning productand service information and labeling
Incidents of non-compliance concerningmarketing communications
Substantiated complaints concerning breachesof customer privacy and losses of customer data

SUSTAINABILITY REPORT 2022 P. 45: Safety assurance and quality control for customers
Website Safety assurance and quality control for customers

Non-compliance with laws and regulations in thesocial and economic area

ー
ー
ー
ー
ー
ー

88

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

87

Management of significant waste-related
impacts

SUSTAINABILITY REPORT 2022 P. 23: Environmental risk management (Management ofchemicals and contaminants)
Website Environmental risk management (Management of chemicals and contaminants)
SUSTAINABILITY REPORT 2022 P. 23: Environmental risk management (Management ofchemicals and contaminants)
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Environmental risk management (Management of chemicals and contaminants)
Website ESG Data (Environmental data)
SUSTAINABILITY REPORT 2022 P. 23: Environmental risk management (Management ofchemicals and contaminants)
SUSTAINABILITY REPORT 2022 ESG Data (Environmental data, P. 89)
Website Environmental risk management (Management of chemicals and contaminants)
Website ESG Data (Environmental data)
SUSTAINABILITY REPORT 2022 ESG Data (Social data, P. 89)
Website ESG Data (Environmental data)ー