Mitsuuroko Group Holdings Co., Ltd.
SUSTAINABILITY REPORT 2022

Philosophy/Vision

Introduction

Mitsuuroko Group has produced andwill continue to produce sustainable
and fulfilling lifestyles.

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we have worked to provide what our customers desire and help them achieve fulfilling lifestyles asa Lifestyle Producer that addresses various social issues through our businesses.
Mitsuuroko Group will remain committed to helping each and every customer lead fulfilling
lifestyles and realize a sustainable society as we firmly set our sights on resources and theenvironment for the sake of the Earth and advance ourselves as a Lifestyle Producer.

Safe and Stable Su
pply of E
nergy
Ensure stable supplyof energy
Respond to natural disasters andenergy s
and strengthening o
upply cf resilience
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2

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

1

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For 136 years since our business foundation and 96 years following our company establishment,Table of Contents/Editing Policy/Philosophy System

Introduction

Mitsuuroko Group’s Philosophy System

Table of Contents
01

Philosophy/Vision

03

Table of Contents/Editing Policy

05

Model of Value Creation

07

Message from the President

11

Promotion System

13

Materiality

17

Stakeholder Engagement

19

E (Environment)

41

S (Social)
51
43 Stable supply of energy/
electricity
Safetyassuranceand55
45
quality control for customers
47 Disaster prevention measures 58
49 Respect of human rights

65

27 Response to
climate change
38 Promotion of
resource cycle
40 Supply chain

Inclusion & diversity

Human resources
development
59 Local communities

Corporate governanceRisk management
Compliance
Cybersecurity
80 Personal information
protection

Founding principle ofcontinually taking up challenges
Our starting point

G (Governance)
67
71
73
78

21 Environmental management
22 Environmental risk
management
24 Climate change initiatives

Health-focusedmanagement

忍而和斉家上策
勤与倹創業良図Patience and harmony serve as the key to a well-ordered family.
Hard work and frugality constitute a positive basis for business startup.
Everyone with a connection to Mitsuuroko is family, and the path for thatfamily to prosper must be chosen even if it is difficult and challenging.

Appropriate
81 information
disclosure
82 Supply chain
management
83 GRI Standards
table

89

ESG Data

93

Independent Assurance Report94

Company Profile

Management
philosophy
Our mission

As a Lifestyle Producer, weconsistently conduct ourbusiness with integrity and fromthe customer’s perspective.

Editing Policy

Reporting scope

Reporting period

The scope covers 52 companies*, including Mitsuuroko Group Holdings Co., Ltd., major business companies,
subsidiaries, and affiliates. Reporting scope is clarified for items that vary from this overall reporting scope.
* 45 consolidated subsidiaries and 7 entities accounted for using equity method (as of December 31, 2022)

Reporting period is FY2021 (from April 2021 to March 2022). However, some information in and after April
2022 is also included.

Corporate message

Every Day, Special!
4

1 Comply with laws, regulations, and other social norms,

and conduct fair and sound corporate activities

Charter of Corporate Ethics
Code of Conduct we are mindful of
on a daily basis

2 Provide safe and high-quality products and services
3 Respect the personality and individuality of employees

and create a comfortable and fulfilling work environment
4 Respect the position of stakeholders
5 Contribute to the preservation of the global environment

and the creation of a prosperous and livable society

GRI Sustainability Reporting Standards

Guidelines
referenced

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

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

Report reliability

Non-financial
information

Contact

Financialinformation

Information
disclosure media
structure

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

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

Sustainability Report

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

Stakeholders(Shareholders,investors,
institutional
investors)

Disclosure of comprehensive ESG information

Mitsuuroko Group Holdings Co., Ltd., 3-1-1 Kyobashi, Chuo-ku, Tokyo 104-0031, Japan
Website (inquiries) https://www.mitsuuroko.com/contact/
Note: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

3This document was prepared while emphasizing the objective to express specific topics, thoughts, andinitiatives related to Mitsuuroko Groupʼs “Environment, Social, and Governance (ESG),” among other things.
During its editing, we referred to the assessment items of major ESG rating providers, as well as the“Environmental Reporting Guidelines (2018)” by the Ministry of the Environment and the “GRI (Global
Reporting Initiative) Standards,” which are international reporting guidelines.
Furthermore, the Company continues to enhance ESG-related information each year, focusing on what isdeemed important.

Model of Value Creation

Introduction

Continue creating new value with our diverse
stakeholders and contribute to the creation offulfilling lifestyles and a sustainable society
Business areas generating value

Generated value

Stakeholders

Non-financial value

Energy Solutions
Business

Power & Electricity
Business

Foods Business

Living & Wellness
Business

Overseas
Business

OthersMitsuuroko Group Holdings Co., Ltd.

5

Value

A Lifestyle
Producer
Every Day,
Special!

Customers

Shareholders/
Investors
6

Employees

Business partners
Financial value
Profit attributableto owners of parent

1,909

¥
（重要課題）
Materialityサステナビリティ経営の深化に向け取り組むマテリアリティ(material issues) to be addressed to deepen sustainability
management
1

2

Contribution
to theenvironment

Contribution
to localcommunities

3

4

5

6

Thoroughcompliance

Enhancementof safety
and disaster
response
measures

Healthfocusedmanagement

Promotion ofdiversity

millionTotal dividends

1,515

¥

Government authorities
and local governments

million

Payout ratio

ROE

79.9 %

2.1 %Society andlocal communities

SUSTAINABILITY REPORT 2022

Ensure stable supply ofenergyRoll out next-generationenergy systems
Enhance points of contact
with local communities
Create added value toenrich daily life
Provide support forrecovery from disasters
Build an efficient energy
supply chain
Expand services in
response to diversification
Provide job satisfaction/
growth opportunities

Message from the President

Introduction

CEO Message
Message from the President

As “a Lifestyle Producer,”we will start a substantial
movement while embracing
Representative Director,
President and Chief
Executive Officer

sustainability

Kohei Tajima

8

Sustainability requires persistence
I often ask myself what defines the essence of sustainability.
Last year alone we had a series of external environmental
changes: the Ukrainian crisis, rising costs, surging energy
prices, and exchange rate fluctuations. Mitsuuroko Group
strives to incrementally take preemptive action while adapting
to such changes in the external environment. In that regard,
it is of utmost importance that we carry on regardless of any
changes in the business environment, which I feel is whatsustainability is all about. I also believe that persistence is
crucial when it comes to coexisting with members of our
local communities.

Substantial improvement in IT/digital
literacy and environmental literacy
Internally we have adopted new work styles during
the COVID-19 pandemic̶streamlined meetings, started a
new way of customer interaction, and replaced IT tools. It is
unlikely that we will return to work arrangements of the pastwith new work styles becoming more firmly establishedas standard business practices. Throughout these past
few years of living in the pandemic, even people in older
generations have learned how to use personal computersand now bring tablet devices to sales locations. This has

resulted in significant improvements when it comes to IT
and digital literacy. People in the workplace are also clearly
improving their environmental literacy as is evident by
conversations increasingly regarding questions of whether
our practices are good for the environment and expressing
enthusiasm in terms of being more economical. In seeking
to maintain this momentum, we have decided to step up ourinvestment toward such ends.

Feedback regarding the Sustainability
ReportWhen it comes to external feedback on our Sustainability
Report, institutional investors have given us high marks forhaving put more effort into communicating our sustainability
management practices. However, what particularly
surprised me was the response from individual investors.
Housewives and seniors have expressed substantial interestin sustainability and seem to be reading the report carefully,
as was evident by several of their questions as to why wehave implemented such initiatives and asking whether wewill adhere to such efforts going forward. I believe that such
feedback indicates that many people are reading the reportand accordingly we hope to further promote sustainability
while actively disseminating such information.
Although the word “sustainability” itself had not previously

been in common use within the company, we have always
harbored a desire for such aims in terms of the importance
we assign to sustainability. By reading the Sustainability
Report and becoming aware of sustainability whileembracing such aims as a shared language, our employees
have come to realize that what they have long been vaguely
thinking about and unconsciously practicing actuallyaligns with the notion of sustainability. Looking back, wehave served as a company with substantial awareness ofsustainability ever since Japanʼs Showa era (1926–1989),
when the notion of eliminating the three Ms of Muda (waste),
Mura (inconsistency), and Muri (overburden) was written in
our corporate notebooks. In those days, we were referred
to as “kechi-uroko” (frugal Mitsuuroko) because Mitsuuroko
was frugal to the extent that employees were prompted
to use pencils until there was nothing left of them, and if
two erasers had become small, were even encouraged toglue them together to make a single eraser. Nowadays,
sustainability serves as a prerequisite on which our businessstrategies are based. Thus, I am extremely pleased that wehave published our Sustainability Report.
The Energy Solutions Business is the core business of theGroup. Whereas there is a perception that energy imposes
burdens on the environment, our employees voice a desire
to convey to our customers in simple terms the notion that
it is possible to minimize the environmental impact of energy
by employing creative solutions. Our junior employees inparticular address issues from a long-term point of view
rather than a short-term perspective. The Group has been
serving society through its operations and placing value on
long-term connections with its customers thus far. We arecommitted to accordingly promoting sustainability and willcontinue to do so with heightened awareness going forward.

Key concepts of sustainability for each of
our businesses
In publishing this yearʼs Sustainability Report, we identified
key concepts of sustainability by communicating directlywith people in each of our businesses to find out what theirthoughts are in that regard.
The key concept of the Energy Solutions Business is carbon
neutrality. This entails the aim of achieving a management
approach based on Creating Shared Value (CSV) that strikes abalance between social value and our own profits by enhancing
initiatives looking toward decarbonization and linking suchinitiatives to the growth strategy. In so doing, we will establish
new sources of revenue in our new energy, decarbonization,and city gas businesses while ensuring that the remaining
parties in our existing businesses continue to benefit.
In the Power & Electricity Business, the key concept is
new technologies and new services. Whereas the media
has been covering developments in areas such as offsite

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

7

Message from the President

Continuing to take up challenges while
employing a balanced approach to risk
Initiatives of the Group are occasionally too far ahead of theirtime. For instance, we have been researching hydrogen forabout two decades, yet that field of study has only recently
become a topic of discussion among the general public.
Whereas we tend to operate 20 steps ahead of the curve,
I feel that remaining half a step ahead would be the optimal
approach. We have traditionally started with low investment
and a small number of people, however, which helps toprevent major failures. Some of our initiatives do not cometo fruition, but even a failure serves as a valuable experience.
With this in mind, we will continue to take up challenges one
after the other with a positive attitude going forward.
The Energy Solutions Business, which is our main business,makes it possible for us to engage in such initiatives. I feel
we are fortunate to be able to take up challenges withconfidence in diverse fields as we are already in the midstof a period of stability rather than a reform phase, where
we have gained a high level of trust from our customers
and established solid foundations. In taking up challenges,
we invariably consider the balance of risk in a manner thatentails monitoring developments to determine whether or
not our initiatives are capable of contributing to society, eventhough such objectives may not be stated explicitly. I feelthat this approach has enabled us to adeptly strike a properbalance between our future-oriented initiatives and thepractical business at hand.
Mitsuuroko Group may be characterized as a company
with a visible presence given the consistency of our people
over the long term relative to the short-term nature of ourbusiness. This is akin to a long-established Japanese

confectionery shop whose product lineup gradually changes
over time amid a situation where the shop features standard
items available over many years while occasionally rollingout new items. Customers entering such shops are able tofeel at ease amid the presence of familiar shopkeepers andstaff. The success of such shops derives from the personal
appeal of their people in addition to their traditional Japanese
noren shop curtains and signage. Customers visit such
establishments not only because of the merchandise but
also for the people. Likewise, I stand committed to valuing
the connections we have developed with our customers andlocal communities going forward.

Achieving carbon neutrality enlisting the
involvement of our stakeholders
In seeking to achieve carbon neutrality, we plan to pursue
a collaborative approach. Given that the Energy Solutions
Business is interconnected from upstream to downstream,
there are many objectives that cannot be accomplishedby our company alone. With CO2 emissions directly linked
to climate change risks, cooperation from many of our
stakeholders is essential when it comes to the prospect of
reducing such emissions, given that approximately 99% of
our value chainʼs CO2 emissions are classified as Scope 3
emissions. Although we have not yet taken this option, it
may become necessary for us to heighten awareness among
franchisees by distributing stickers showcasing our carbon
neutrality initiatives. Another option could be displaying
signage promoting the appeal of our recently launchedcarbon neutral LPG in hopes of enticing environmentallyconscious customers to purchase that sort of gas productfrom us. Whereas it is common to encounter PR messages
in the energy industry promoting a companyʼs eco-friendly
products and detailing initiatives of specific companies, it
is not often that I hear calls appealing for collective action
toward a shared objective. Limitations on what is possible
for us to achieve in terms of reducing CO2 emissions
become greater at points progressively further downstream
in the value chain even with awareness of carbon neutrality.
With that in mind, I assume many people would like tobecome involved in such efforts. I accordingly hope to enlist
the involvement of as many people who have substantial
awareness in that regard as possible, and think it would
be intriguing to see Mitsuuroko Group distinguish itself
by assertively and actively engaging in activities that raiseawareness of each and every individual.
We have been implementing in-house measures that entail
leveraging the National Mitsuuroko Associationʼs dealer
network of approximately 1,800 companies in providing
concrete support toward achieving carbon neutrality
through initiatives that include promoting high-efficiency gas
equipment to National Mitsuuroko Association members,
actively promoting liquefied petroleum gas (LPG) conversion,
providing support for sales of new energy products, andsupporting initiatives under the new business model.
Meanwhile, under our external measures, we aim to curb fuelconsumption and reduce CO2 emissions by shortening travel
distances through the promotion of solutions for improving
delivery efficiency among our business partners. Goingforward, we will create a sustainability promotion programin hopes of sparking a substantial sustainability movement
in conjunction with the National Mitsuuroko Association andour numerous partners.

Establishing a hands-on learning programthat enables participants to gain firsthandexperience regarding sustainability
Whereas we have been implementing training thus far aspart of our human resources development efforts, including
profession-specific training, diversity training, compliancetraining, and human rights training, there is no substitutefor firsthand experience. Therefore, I would like for us toestablish a hands-on learning program that enables our
employees to gain firsthand experience by sending themto countries and regions where they can be exposed tosustainability practices.

Replacing the majority of existing
businesses with new businesses within
three decades
The Group will mark the 100th anniversary of foundationand 140 years since its establishment in 2026. The next
four years will be a period during which we reflect on thepath we have taken thus far and furthermore articulate oursentiments both as to what we must proudly pass on to
the next generation and as to what we would like to cherish
going forward. We uphold the concept of “SOLA” (Simple,
Organic, Live, Advanced) under our code of conduct that
we value as a company, and accordingly aspire to serve as
an enterprise that is relevant to the times while valuing these
ideals.
One decade from now, I envision a scenario where eachof our businesses, particularly those in the energy sector,
has been extended to the limit in terms of having reachedthe ultimate manifestation of our current trajectory. Our
goal is to serve as a leader in the industry, whereby each of
our businesses holds a major position within its respective
industry. At the same time, we are bound to encounter new
business opportunities to which we will assign fresh talent.
Three decades from now, I expect that a majority of
our existing businesses will have been replaced by new
businesses. With that in mind, I advocate for “changing thecompany by 3% yearly,” thereby giving rise to a completely
new company in 30 years. Such renewal of the company
will likewise coincide with the notion that the products andservices we deliver to our customers will also be new. We
will accordingly strive to serve as a company that takes avisionary approach as a challenger, while remaining relevant
and useful to our customers.
A century from now, nobody knows what is in store when it
comes to the global environment. Assuming that humanity
is then thriving amidst that eraʼs new normal, we at
Mitsuuroko Group hope to be playing an active role incontinuing to serve as “a Lifestyle Producer.” It would indeed
be fascinating if humanity were to have left the Earth by thattime with Mitsuuroko operating colonies under a name suchas “Mitsuuroko Planet.” Given that our currently youngest
employees may still be alive in 100 years, I hope they willcontinue to watch and support Mitsuuroko Group a century
from now.
As such, Mitsuuroko Group will remain committed to helping
each and every customer lead more fulfilling lifestyles as it
engages in sustainability initiatives with its stakeholders.

10

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

9

corporate power purchase agreements (PPA), storage
batteries, electricity supply and demand adjustment, demand
response, and electric vehicles (EVs), we will seek expansion
in the new renewable energy aggregation business in part byextending sales from our environmentally friendly electricity
options.
For the Foods Business, the key concept is ethicalconsumption and food loss reduction. We accordingly
promote manufacturing and selling products that takeenvironmental impact into account in part by using lessexcessive packaging, and initiatives looking toward reducing
food loss through so-called “Save Bread” sales of imperfectproducts. Additionally, given the labor-intensive nature ofmany workplaces in this sector, we are striving to create
stores that are economically efficient while also serving as
comfortable working environments.
The Living & Wellness Business focuses on the key conceptof health, sports and well-being. This involves developing
more opportunities and environments that enable people
to engage in sports, including our hosting of health bowlingclasses based on Learn-to-Bowl (LTB) programs. We will
accordingly find ways for people to achieve the physical,
mental and social states that are ultimately best for them byproviding tangible and intangible solutions oriented to wellbeing through both facilities and programs.
The key concept of the Others segment is an environmentally
adaptive enterprise and eliminating the three Ms of Muda
(waste), Mura (inconsistency), and Muri (overburden). This
involves providing optimal solutions while adapting to thesocial environment. We will accordingly seek to eliminate
the three Ms to the extent possible, including streamlining
delivery operations, shortening travel distances, and reducing
environmental impact.

Introduction

Promotion System

Introduction

Sustainability Promotion System
Sustainability management promotion system
Within our Group management philosophy, we state that as a Lifestyle Producer, we consistently
conduct our business with integrity and from the customerʼs perspective. Our aim is to enhanceservices related to everyday lifestyles centered on energy.
Beyond continually expanding new services from the consumersʼ perspective, we will continue tocontribute to conservation of the global environment by utilizing natural energy and promoting the
installation of energy-saving housing equipment.
We will also continually enhance our security initiatives so that we can provide safety and security
as our top priority, especially for energy products, and will fulfill our corporate social responsibility
based on compliance in our business activities.

Purpose ofexistence/
MissionManagement
philosophy

1 Comply with laws, regulations, and other social norms, and conduct fair

11

Charter ofCorporate
Ethics

Policyand sound corporate activities
2 Provide safe and high-quality products and services
3 Respect the personality and individuality of employees and create acomfortable and fulfilling work environment
4 Respect the position of stakeholders
5 Contribute to the preservation of the global environment and the creationof a prosperous and livable society

Materiality

Mitsuuroko Great Reset

3 Thorough compliance

We will focus primarily on the
points below while maintaining thecompetitiveness of our core energyrelated businesses

4 Enhancement of safety and

1 Introduction of new work styles

1 Contribution to the environment
2 Contribution to local communities

Material
issuesdisaster response measuresphilosophy

Living & Wellness
Business

1

Introduction of new work styles

We will introduce new work styles that improve employee
health, employee and workplace safety, communication,
productivity, and functionality while also fully reflecting theconcept of “newness.”2

Promotion of digitalization (digital transformation [DX])Through digitalization or digital transformation (DX) that is not
an extension of past customs or the old way of doing things,
we will manage and save time, streamline, and accelerate
office work, and upgrade our operations to realize new work
styles through DX and improved customer satisfaction.
3

Achievement of management philosophy
As a Lifestyle Producer, we consistently
conduct our business with integrity and fromthe customerʼs perspective.
A Lifestyle Producer
Every Day, Special!

Keyword: “SOLA”
SOLA is an acronym for Simple, Organic, Live, andAdvanced. While adding the new perspective to SOLA,
we will work to improve the self-purification capabilitiesof our businesses, organizations, and thinking in theaim of revitalization and sustainable growth to transform
Mitsuuroko Group into a stronger, more appealing
company starting with these four concepts.

Sustainability
promotion system

SimpleOrganic

Is it easy to understand?

Is it compassionate and notmechanical?

SOLA

Live
Is it new with no precedent?

Advanced

Is it futuristic and does it solve
future issues?

Representative Director andChief Executive Officer
Director and Group CIDO

* Chief Inclusion & Diversity Officer

Legal & Secretary

Inclusion & Diversity

Cooperation

Cooperation

Finance & Control

Human Capital & Engagement
Sustainability
Health-focused Management (Wellbeing & Productivity)

Business activities
Foods Business

Up to now, Mitsuuroko Group has continued to take up
challenges without fear of failure while sensing changes
in society and our customersʼ needs and changing
ourselves as we look ahead to the future.
Our mission is to build on our efforts to fulfill lifestyles,
bring joy to our customers, and bring smiles to peopleʼsfaces in order to pave the way for the future, and webelieve that this mission is achievable.
We operate amidst persisting and unprecedentedchanges with respect to the social landscape andbusiness environment. Under these circumstances, weare called on to become a truly environmentally adaptive
enterprise to ensure that we continue to achievesustainable business growth going forward.
We are determined to reassess and revamp every aspectof our operations to achieve our vision of Mitsuuroko
Group, which we established upon having madeMitsuuroko Great Reset the focus of our basic policy andaction plan, under which we seek to persistently furnish
people worldwide with value distinctive to Mitsuuroko
Group while adhering to our management philosophy.

3 Achievement of management

6 Promotion of diversity

Power &
Electricity
Business

Transition from Mitsuuroko Epoch Outlook to Mitsuuroko Great Reset

2 Promotion of digitalization (DX)

5 Health-focused management

Energy Solutions
Business

To continue creating new value with our diverse stakeholders as well as to contribute to fulfilling
lifestyles and prosperity of society, the Group has identified six material issues (materiality)
prioritized from among all social issues, taking into consideration the business of the Company inlong-term vision.

Overseas
Business

OthersMateriality KPI promotion departments at each business and Group company

Internal sustainability training

Resolving sustainability issues through business activities

Sustainability training (introduction to ESG) via e-learning is provided for full-time Group employees to acquire
knowledge on ESG and foster literacy.

12

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

As a Lifestyle Producer, we consistently conduct our business withintegrity and from the customerʼs perspective.

Materiality

Materiality

Introduction

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

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

1 Contribution to the environment
Mitsuuroko Group is aware that it receives various benefits from the
Earth, including the resources necessary for its business activities,
and that it is its responsibility to preserve the global environment in abetter state. The purpose of Mitsuuroko Groupʼs existence is to build abetter society through its daily corporate activities, and it places utmost
importance on making proactive efforts to solve social issues.
As measures to address climate change, which is a common challenge
facing the world, Mitsuuroko Group is working to reduce the CO2
emissions from its business activities and those from its customersʼ
use of products and services, as well as contribute to the improvementof energy efficiency, aiming to achieve carbon neutrality by FY2050.

STEP

3

Evaluation ofimportance tostakeholders

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

Evaluation ofimportance to
the Group

The importance is evaluated for social issues that should be considered in terms of
the risks and opportunities the issues present to the Group as a whole and to eachbusiness.

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

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

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

4

Identificationof the Groupʼspriority issues(materiality)

STEP

5

Setting of KPI on
materiality andits review

Importance tostakeholders

STEP

Materiality

Importance to the Group

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

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

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

6 Promotion of diversity
Mitsuuroko Group has grown from its principle of evolving andchanging with the times as an “environmentally adaptive enterprise”
whose subsistence derives from requirements of respective eras.
Going forward, rather than having to catch up and adapt to its
surroundings, it must propose solutions and create new andbeneficial conditions to achieve sustainable growth. It is therefore
essential that Mitsuuroko Group fosters a corporate culture thatembraces diversity as a strength, creating an environment that does
not discriminate based on employment status, nationality, gender,
age, or whether one is a new graduate or mid-career hire.
Mitsuuroko Group aspires to shaping a new era by being “anenterprise that creates favorable cycle” and “persistently seeking
change.”14

SUSTAINABILITY REPORT 2022

2

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

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

3 Thorough compliance
STEP

2 Contribution to local communities

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

13

Mitsuuroko Group Holdings Co., Ltd.

Materiality of Mitsuuroko GroupMateriality

Introduction

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

Materiality

KPI

1 Reduction of Scope 3

Contribution

1 to theenvironment

Carbon neutral*4

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

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

response measures

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

5 Health-focused management

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

Each yearー

6 Promotion of diversity*5ー1Decrease of locations(total of 9 locations)

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

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

1

1

1

1

ー

1

Each year22

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

90%

74.4%

(as of January 31, 2023)

80%

62.9%

(as of January 31, 2023)

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

18%

32.8%

(as of January 31, 2023)

40%

24.8%

(as of January 31, 2023)

Once a year
(for all employees)

Once a year
(for all employees)

Each year

Once a year
(for all employees)

Twice a year
(for all employees)

Continue to provide

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

100%(Ratio to all employees)

FY2023(Ratio to all employees)

Ratio of female managers
Number of diversity training conductedOnce a year for all employees

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

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

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

Ratio of female employees+31.7%*6

Cancelled

Continue to provide

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

Each year, FY2023

100% of female employees
11% of male employees

FY2026

26.6%
6.9%

82.2%

62.6%
100%

32.0%

27.2%
ー

* Aggregated in FY2023

ー

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

ー

1

ー

FY2022

88.3%

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

16

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

15

FY2022 Performance(up to the end of February)+3.6%*62

11

Increase fromlocations(the number of locations in 2021)

FY2021 Performance

FY2050

The Companyʼs CO2 emissions
reduction rate

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

3 Thorough complianceTarget fiscal year

Customersʼ CO2 emissions
reduction rate

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

2 Contribution to local communities

Quantitative targets

Stakeholder Engagement

Introduction

Stakeholder Engagement
Basic approach
Guided by Mitsuuroko Group Charter of Corporate Ethics, the Company conducts fair and soundcorporate activities and seeks to contribute to the preservation of the global environment and thecreation of a fulfilling and livable society while respecting the positions of various stakeholders andmaintaining positive relations with them.
The Company constantly promotes reforms of its corporate governance practices to enable swift
decision making, strengthen management supervision, and ensure transparency in our corporate
activities. It also works to improve value for all stakeholders connected to Mitsuuroko Groupthrough striving to reform the management structure and enhancing internal control systems.

Communication with employees
Building good labor relations
The Company and unions build sound and positive
relations based on mutual understanding and trust.
The Company openly exchanges opinions on various
management issues and labor conditions throughregular labor-management consultations. The Company
also provides an environment where staff who are nonunion members, such as contract employees, parttime employees, or temporary staff can work withconfidence, and it has entered into minimum wage
agreements. Further, the Company respects therights of workers at its overseas facilities, taking into
consideration the legal and regulatory systems of therespective areas.

Promotion system

Dialogue with shareholders and investors

Customers

Co-creation and innovation in creating
value for society

Shareholders/
Investors

Mitsuuroko Group” in the Business Report (Integrated
Report), which is published every year.
Mitsuuroko Group focuses efforts on publishing various
reports, which represent important IR communication
tools. In FY2022, it issued the Business Report(Integrated Report), which is published once per year,
the Mitsuuroko Report (Shareholder Correspondence)
which is published twice per year, and the Sustainability
Report, which is published once per year. Thesepublications, including past editions, can be accessed
via the IR Library page on the Companyʼs website.

Sharing of various information within theGroup

Employees

Labor-management partnerships
Provision of occupational health andsafety information, mental healthmeasuresBusiness
partners
Government
authorities
and local
governments

Establishment of relationships of trust
and maintenance of sound and positive
relations
Disaster prevention initiatives
Provision of information to solve social
issues and promote administrative policy
Understanding opinions and requests

Societyand local
communities

Protection activities of regional
environments
Contribution to society through sports
Local community exchange

Initiatives for overseas investors
Since we are promoting the expansion of our global
business, we expect the proportion of overseas
investors in our Company will increase. Therefore, in the113th Ordinary General Meeting of Shareholders held in

Disclosure of information on financial
condition, explanation of status ofbusiness activities and plans of the Group
Support for active participation of diverse
human resources

Timely and appropriate disclosure of information
To ensure sound and highly transparent management
and gain the understanding and trust of shareholders
and investors, the Company places importance on
proactively disclosing information in a manner that is“timely, fair, and consistent.”
Via the Companyʼs website and the Timely Disclosure
Network (TDnet) of the Tokyo Stock Exchange, etc., theCompany works proactively to make timely disclosuresthat include financial information and other information
related to the Group. The Company also publicly
discloses the “Management Policy and Strategy of
Mitsuuroko Group” and “The Financial Strategy ofCreation of opportunities for customers
to provide feedback on products andservices

June 2022, we introduced the electronic voting system
platform. In addition, the Company is working to ensure
our convocation notices and IR pages on the website
are also available in English.

Communication withindustry associations

Examples of communication methods, means, and activities
Quality maintenance and improvement activities run primarily by the quality
assurance department of each operating company
Protection of personal information through stringent information security
management
Provision of value to remain close to our customersʼ lives through the Groupbusiness websites
Daily business activities
Provision of opportunities for participating in exhibitions and seminars
Suggestions of environmentally friendly products and services
GPS-based monitoring service, “Mitsu-mail Imakoko”
General Meeting of Shareholders
Business Report (Integrated Report), Mitsuuroko Report (Shareholder
Correspondence), and Sustainability Report
Disclosure of IR information on the corporate site
Responding to surveys by ESG rating providers
Formulation of inclusion & diversity promotion policy
Introduction of work-from-home system, support of telecommuting
Enhancement of various types of training and career support
Communication of the message from the President
Communication and sharing of information via the intranet and groupware
Publication of web company newsletters
Various surveys of employees
Opinion exchange through labor-management consultations
Development of safety promotion system
Stress checks
Healthcare support, establishment of contact point for counselling
Compliance hotline
Declaration of Partnership Building
Participation in regional disaster prevention and fire fighting activities
Acceptance of practical training from various organizations and schools
Cooperation in surveys, including government statistical surveys
Establishment of inquiries and addressing concerns
Activities to protect and nurture the forests around the water collection sites
Support of basketball and swimming team activities, and professional
affiliated athletes
Participation in activities, exchange, and events with local communities
Cleanup activities
Fund-raising activities for the Christel Vie Ensemble Foundation (Christel
Foundation)

Association

Main position served by officersof the Company, etc.

KEIDANREN (Japan Business Federation)

Member of the Policy Board

Tokyo Employersʼ Association

Executive Director

Japan L.P. Gas Sales Association

Vice Chairman

Liquefied Petroleum Gas Center

Trustee

The Mineral Water Association of Japan

Auditor

18

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

17

Main response
Development and provision of safe andsecure products and services

information on our business strategies and non-financial
information. In addition, members of the IR teamengage in dialogue with shareholders, holding individual
meetings with them whenever possible if requested to
do so. Opinions and concerns raised by shareholders
in the dialogue are then reported through the Head ofFinance & Control to senior management and the Boardof Directors. The Company also thoroughly ensuresthat no insider information is leaked when engaging in
dialogue with shareholders.

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

Communication methods and means
Stakeholders

The Company has established Finance & Control and ateam within it that is in charge of IR. The Director who
serves as the Head of Finance & Control becomes the
Director in charge of IR and is responsible for IR. To
ensure that many stakeholders understand the unique
way in which the Group creates value, the Company
proactively discloses information to shareholders
through publications such as the Business Report(Integrated Report), Mitsuuroko Report (Shareholder
Correspondence), and Sustainability Report, whichcontain not only financial information but also

Communication between the President
and employees

E(Environment)

Environment

Environment

Main target management indicators (KPIs)

The Companyʼs CO2 emissions reduction rate
FY2050 target

At Mitsuuroko Group, we are developing a variety of businesses to realize a low-carbon society.
By expanding our mainstay Energy Solutions Business and the Power & Electricity Business, which

Carbon neutral*

could become our next pillar, we will contribute to the realization of a low-carbon society.
We believe that this is the role we can play as a corporate citizen.
Mitsuuroko Group will continue to help each and every customer lead more fulfilling lifestyles
while maintaining close stewardship of natural resources and the environment, for the sake of thechildren who will lead the next generation and the Earth.

Customersʼ CO2 emissions reduction rate
FY2050 target

Carbon neutral*
Environmental management

22

Environmental risk management

24

Climate change initiatives

19

27

Response to climate change

38

Promotion of resource cycle40

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

20

SUSTAINABILITY REPORT 2022

21

Mitsuuroko Group Holdings Co., Ltd.

INDEXEnvironmental management/Environmental risk management

E

Environment

Environmental management

Environment

Environmental risk management
Response to climate change and natural disasters

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

Charter of Corporate Ethics (extract)

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

Environmental management promotion system

Mitsuuroko Group Holdings Co., Ltd.

and targets (KPIs) for addressing climate change.
Additionally, during the Board of Directors' regularmonthly meetings, the Director and Group CIDO
provide updates on the progress of initiatives aimed ataddressing climate change policies and meeting Key
Performance Indicators (KPIs). These updates areincluded as a vital component of the corporate
governance report, and the Board of Directors oversees
them accordingly.

Roles

2

The Group CIDO reports to the Board of
Directors on risks and opportunities, theirstatus, and progress of KPIs.
If new risks or events that may impact
the achievement of KPIs are discovered,they are reported to the Risk Management
Committee.

3

The Group CIDO works together with thedepartment in charge of Legal & Secretary,
Inclusion & Diversity, and Finance & Control to
extract and evaluate risks and opportunities,
and monitor progress of KPIs.

4

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

5

The KPI promotion departments at eachbusiness and Group company report on thestatus of initiatives and progress of KPIs via
corporate governance reports to the Board of
Directors.

Board of Directors 1

Representative Director andChief Executive Officer

3

Legal & Secretary
Inclusion & Diversity

Risk Management
Committee 4

Director andGroup CIDO 2* Chief Inclusion &Diversity Officer

While LPG is a form of distributed energy that is easy
to install and restore even when natural disasters linked
to climate change occur, such as torrential downpoursand storm surges, it is possible for filling stations to
be damaged and for its transportation to be delayedor slowed. In preparation for emergencies, we have
implemented disaster prevention measures at facilities
such as filling stations and have also formulated abusiness continuity plan (BCP). The LPG supply
network is rationally designed to ensure a steady supplyof LPG to every corner of the country in times of peaceand even in times of disaster.
In addition, while we continue to upgrade ouroperations and make them efficient at Mitsuuroko
Administration Center (Saitama-shi, Saitama), a sharedservices division that consolidates the operations of theGroup companies, which the Nagano Office of
Mitsuuroko Administration Center opened in order toavoid the risk of interruption in our operations whenstruck by disaster, etc. due to centralization, and toestablish a system to ensure the continuation ofoperations in the event of an emergency. We haveestablished a system that allows us to shift to predetermined operations in an emergency by activating
the BCP program if it becomes impossible to carry out
operations in Saitama-shi.

Water risk initiatives
Basic approach

Initiatives to reduce water usage

We consider water risk to be an important management
issue and are taking actions such as water stress/riskstudies, and water hazards and water management.

1

Human Capital &Engagement
Sustainability
Health-focused
Management(Wellbeing & Productivity)

Finance & Control

KPI promotion departments at each business and Group company 5

Using the WRI Aqueduct, an international indicator, we
comprehensively analyzed and evaluated current andfuture risks (water demand, water source security, water
damage, etc.). As a result, we confirmed that there isno significant water stress or risk in the Groupʼs main
facilities as of now.

Water consumption, water discharge
volume, and water quality control
In order to use water resources sustainably, we monitor
water consumption and strive to save water, and also
implement appropriate wastewater management. In
FY2021, there were no violations of standards andregulations pertaining to water discharge.

Situation of water resources utilization
In FY2021, Group-wide use of domestic freshwater
resources (water supply and wells) totaled 6,454
thousand m3, and the amount discharged tounderground and rivers (excluding sewage) was 647
thousand m3.

Preserving water resources through the use ofbusiness cards made primarily from limestone
From the viewpoint of conserving forests and water
resources, the Group has adopted the use of businesscards made with “LIMEX,” a material derived primarily
from limestone. Limestone exists in abundance
throughout the world and is a mineral resource which
Japan is completely self-sufficient in and can obtainat a low cost. By adopting limestone as the mainmaterial for our business cards, we are contributing to
the preservation of forests and water resources, which
are essential for the production of paper. This initiative
saves 10 liters of water per card box of businesscards (100 cards). When converted to the number ofbusiness cards used by the Group, this equates to23,230 liters of water preserved in a year.

Implementation of water stress/riskstudies

Climate change-related governance and risk management system

The Board of Directors identifies material
issues concerning risks and opportunities
related to climate change, determines thepolicies and targets (KPIs) for addressing
climate change, and supervises them.

that are helpful for peopleʼs lifestyles today and for the
global environment of the next generation. Furthermore,through the creation of renewable energy, we areworking to contribute to the improvement of the global
environment through reducing CO2 emissions andimprove energy self-sufficiency.

2

Water-saving initiatives
In the wellness business, we are working to reducebathing water used at “Yokohama Tennen Onsen SPA
EAS” through the use of a recovery tank (water supply
and natural spring water) timer control and watersaving devices installed in all shower heads. We arealso reducing other water used at the facility throughmeasures such as the introduction of water-saving
toilets, and employees are also making efforts to savewater.
We are also promoting the introduction of water-saving
showers and toilets in rental apartments owned by ourreal estate business.

22

SUSTAINABILITY REPORT 2022

The Company recognizes climate change as importantmanagement issues for the preservation of the global
environment, and the Board of Directors determines
policies for addressing climate change and oversees
their status. Specifically, the Director and Group CIDO
reports periodically (at least once a year) to the Board of
Directors on the Groupʼs risks and opportunities related
to climate change as well as their status. Based onthese reports, the Board of Directors determines policies

1

The Group is developing a variety of businesses
to realize a low-carbon society. LPG is a form of
distributed energy that is environmentally friendly and isportable. We are also promoting the spread of energy
products, such as solar power generation systems,
lithium-ion batteries, and residential-use fuel cells,

Response to natural disasters

Contribute to the preservation of the global environment and the creation of aprosperous and livable society

21

Climate change initiatives

Environmental risk management/Climate change initiatives

E

Environment

Environment

Environmental risk management

Management of chemicals and contaminants
Since our operations have little relevance to emissionsof air pollutants such as VOCs, NOx, and SOx, we do
not perform measurements for these. Waste, including
hazardous waste, is properly disposed of throughspecialized waste disposal companies in accordancewith laws, regulations, and other rules. In FY2021, there

were no penalties or fines related to environmental
laws and regulations (Air Pollution Control Act,
Water Pollution Prevention Act, Soil Contamination
Countermeasures Act, Waste Management andPublic Cleansing Act, etc.) due to outflows or excess
emissions of environmental pollutants.

Response to soil contamination
In the event that pollution is detected at LPG filling
stations and gasoline service stations, while we reportsuch incidents to the relevant government agencies andactively disclosing information to the public, such as
through explanations to residents within the vicinity orpress releases, we work to control soil contamination.
In accordance with the state of the pollution, we employ
measures such as excavation, removal, and paving
to prevent contamination from spreading or entering
ground water.

Climate change initiatives
Basic approach
In terms of climate change initiatives, as an entity responsible for stable supply in regions, Mitsuuroko
Group aims to harness its comprehensive power embedded in these regions to maintain and improve supply
infrastructure to ensure supply is also available during emergencies, while implementing various initiatives
that align with the diversification of customer needs and desire for choices.
All of Mitsuuroko Group is engaging in climate change initiatives to achieve a sustainable society throughreducing CO2 emissions, promoting renewable energy, and reducing fuel consumption. For customers who
are focused on reducing CO2, we offer environmentally friendly electricity plans that stipulate the use ofrenewable energy. In addition, we utilize monitoring information of remote automatic meter readings, andprovide a delivery operation streamlining solution that proposes the optimal delivery plans.

TCFD
Mitsuuroko Groupʼs climate change initiatives

24* The TCFD consortium:
A consortium established in May 2019 and led by the private
sector to discuss effective disclosure of information by companies
in response to climate change and measures to link the disclosed
information to appropriate investment decisions by financial
institutions and other parties. The Ministry of Economy, Trade andIndustry, the Financial Services Agency, and the Ministry of theEnvironment participate as observers.

Governance and risk management
The Company recognizes climate change as animportant management issue, and the Board of
Directors determines policies for addressing climatechange and oversees their status.
Specifically, the Director and Group CIDO works
together with Inclusion & Diversity, Finance & Control,and Legal & Secretary to analyze materiality, extract andevaluate climate change-related risks and opportunities,
and identify material issues concerning such risks.
In addition, the Director and Group CIDO reports
periodically (at least once a year) to the Board of
Directors on the Groupʼs risks and opportunities
related to climate change as well as their status. Basedon these reports, the Board of Directors determines
policies and targets (KPIs) for addressing climatechange.
For KPIs determined, each department in charge of
KPI promotion reports on the progress in a corporate
governance report that is submitted monthly to Finance& Control, and Inclusion & Diversity and Finance &Control monitor the progress.
At regular monthly meetings of the Board of Directors,
the Director and Group CIDO reports on the status
of initiatives based on the policies and targets (KPIs)
progress as one of the items in a corporate governancereport, and the Board of Directors supervises
accordingly.
If new risks or events that may impact the achievementof KPIs are discovered, each department reports onthem to the Director and Group CIDO. The Director
and Group CIDO then reports to the Risk Management
Committee, which is chaired by the Representative
Director.
The Risk Management Committee evaluates andanalyzes such risks and events, reporting them tothe Board of Directors. Based on these reports, theBoard of Directors identifies new material issues, thendetermines policies and targets (KPIs), and supervises
them accordingly.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

23

Mitsuuroko Group considers the TCFD
recommendations an effective framework for disclosing
information and engaging in dialogue with stakeholders
in regard to climate change issues. We announce ourendorsement of the TCFD recommendations, and inaccordance with the recommendations, we disclose
information on the impact of climate change on theGroupʼs business activities and the measures we aretaking in response. The Company also participates in
the TCFD Consortium*, which discusses initiatives for
information disclosure on climate change response inaccordance with the TCFD recommendations.

Climate change initiatives

E

Environment

Climate change initiatives

Environment

FY2021 initiatives to reduce CO2 emissions

Climate change-related governance and risk management system
Roles
1

The Board of Directors identifies material
issues concerning risks and opportunities
related to climate change, determines thepolicies and targets (KPIs) for addressing
climate change, and supervises them.

2

The Group CIDO reports to the Board of
Directors on risks and opportunities, theirstatus, and progress of KPIs.
If new risks or events that may impact
the achievement of KPIs are discovered,they are reported to the Risk Management
Committee.

3

The Group CIDO works together with Legal &Secretary, Inclusion & Diversity, and Finance& Control to extract and evaluate risks andopportunities, and monitor progress of KPIs.

4

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

5

The KPI promotion departments at eachbusiness and Group company report on thestatus of initiatives and progress of KPIs via
corporate governance reports to the Board of
Directors.

Representative Director andChief Executive Officer

Board of Directors 1

3

Legal & Secretary
Inclusion & Diversity

Risk Management
Committee 4

Director andGroup CIDO 2* Chief Inclusion &Diversity Officer

Human Capital &Engagement
Sustainability
Health-focused
Management(Wellbeing & Productivity)

Finance & Control

KPI promotion departments at each business and Group company 5

In the Energy Solutions Business, we have promoted
the expansion of our meter readings service and delivery
operation streamlining service powered by SmartOWL®,
and transitioning to high-efficiency equipment forour existing customers. We are also improving fuelefficiency during deliveries by eliminating complicateddeliveries, and shortening travel distances and reducing
fuel consumption through eco-driving activities.
In the Power & Electricity Business, we are expanding
the provision of the Mitsuuroko Green Plan
In the Foods Business, we are promoting the sale oflabel-less PET bottles and the elimination of plastic (useof paper straws and wooden muddlers).
In the Living & Wellness Business, we worked to expand
renewable energy electricity contracts in common areasof owned properties and switched to energy-saving

Opportunity/
Scenario Category Classificationsof factors
Risk

Administrative
policies andlaws

Opportunities

Risk

Below Transition
2℃
risk
Market andtechnology

Indicators and targets
The Groupʼs GHG emissions in FY2021 wereapproximately 5.99 million t-CO2eq. 99.4% of theemissions were Scope 3, of which 48.8% was attributed
to customer gas, electricity, and product usage and 40.3%

was attributed to related procurement operations. The
Groupʼs Scope 1 and Scope 2 emissions were attributed
to vehicle operation (gas delivery vehicles and companycars) and gas and electricity usage within the Company.

Opportunities

Risk

Greenhouse gas (GHG)
emissions

Percentage

Scope 1

Gas delivery vehicles and company cars

★ 17,049 t-CO2

0.3%

Scope 2The Companyʼs electricity usage★ 16,972 t-CO2

0.3%

Scope 3

Energy procurement and customer usage★ 5,958,716 t-CO2eq

99.4%

CO2 emissions reduction
targetCarbon neutrality by 2050

★ marked indicators are independently assured by KPMG AZSA Sustainability Co., Ltd. For Scope 3 emissions, the Companyʼs category 1 (★596,251
t-CO2eq), category 3 (★2,415,898 t-CO2eq), category 4 (★19,676 t-CO2eq), and category 11 (★2,926,890 t-CO2) emissions have each been assured aswell as the total of these four categories. (See pages 27–28 for information on the calculation standard)

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

Carbon tax (for developed countries
including Japan) is projected to rise to
US$120/t-CO2 by 2030 and US$200/t-CO2
by 2050*2

4℃

Physical
risk

Acute

Risk

Direction of response and measures• Carbon neutrality by 2050
• Participate in TSEʼs carbon credit market demonstration
project• Automate remotely obtained data meter readings for LPG• Reduce truck operating time and travel distance bystreamlining delivery operations• Promote eco-driving activities• Change to EVs for all company cars by around 2030
• Increase amount of renewable energy and environmentallyfriendly energy sources handled

Increase sales in the Power & Electricity Businessdue to increased demand for renewable energy
Renewable energy is expected to comprise
58% of Japanʼs energy mix by 2050*2

Decrease in sales for LPG and petroleum
products• Spread natural energy and promote the installation ofenergy-saving housing equipment• Sell natural energy not dependent on traditional fossil
fuels and other new energy equipment such as storage
batteries, and provide services such as the “Mitsuuroko
Green Plan”

Petroleum demand in Japan is expected tofall by 78% by 2050 compared to 2021*2

Reduction of future in-house power
generation costs if the Company
establishes plants that take advantage
of developments in renewable energy
production technologies
Solar power generation costs are expected
to drop by 50% by 2050 compared to2021*2

Breakdown by Scope

To reduce the Companyʼs direct CO2 emissions (Scope 1
and Scope 2), the Group is automating remotely obtained
data meter readings for LPG and working to streamline
delivery operations (reduction of truck operating time
and travel distance), eliminate complicated deliveries,
and promote eco-driving activities. We are alsochanging to electric vehicles (EVs) for company carsand increasing the amount of renewable energy and

Risk

Risks and opportunities
Tightening of fossil fuel regulations andoperating cost increases due to carbon
taxes (Estimated cost increase: approx.
¥900 million/year*1)• Establish own plants that utilize the newest developments
in renewable energy production technologies and increaseamount of renewable energy sources handled• Utilize PPA model*3 and increase solar power generation• Focus on popularizing EVs and promote the developmentof 100% renewable energy EV charging infrastructure• Expand the installation of storage batteries and strengthen
ability to adjust electricity supply and demand• Focus on transitioning from FIT system to FIP system*4and launch renewable energy aggregation business

Increase in costs to meet the rising
expectations of investors and the market
in respect to corporate climate change
initiatives(Financing costs and communication costs)• Actively work to meet the changing expectations ofinvestors and the market• Proactively engage in ESG-related initiatives and enhance
relevant information disclosures• Focus on sales of new energy equipment, including highefficiency water heaters, distributed demand appliance
ENE-FARM, solar power and storage batteries, tocontribute to reducing customersʼ CO2 emissions

Decrease in sales and increase inrecovery costs due to damage to plants
and facilities, the supply chain, and powercompanies as a result of heavy rain andfloods• Produce disaster manuals and conduct security training,safety confirmation drills, and evacuation drills• Implement disaster response measures at LPG filling
stations (disaster prevention nets, lashing belts, etc.) andconsumersʼ homes (double chains, tension-type highpressure hoses, etc.)• Develop a complementary system for LPG delivery
that can be used by Japan Enagic Co., Ltd. and among
facilities• Develop a robust business continuity plan (BCP) systemthrough the enhancement of disaster manuals• Open the Nagano Office of Mitsuuroko Administration
Center*1 The cost increase for business operations due to the impact of carbon tax is calculated as below:
2050 Carbon tax of US$200/t-CO2 is based on the International Energy Agencyʼs publication, “World Energy Outlook 2022”: Groupʼs CO2
emissions (t) in 2021 × US$200/t-CO2 × exchange rate (¥/$)*2 Each estimation is based on the calculations in “World Energy Outlook 2022.”*3 PPA model: A business model in which business operators install, manage, and maintain solar power systems on the roofs of consumersʼ offices free ofcharge. Consumers then purchase the electricity that is generated. PPA stands for Power Purchase Agreement*4 FIT: A system where power companies purchase electricity from renewable energy sources at a fixed price for a fixed period of time. FIT stands for Feedin Tariff
FIP: A system where power generation business operators that produce electricity from renewable energy sources and sell it in wholesale markets or
through over-the-counter trading are granted a premium equivalent to the difference in the standard price (FIP price) and the market price. FIP
stands for Feed in Premium

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25

not change significantly compared to its current state
due to the tightening of environmental restrictions. The
4 C scenario assumes that decarbonization and carbon
reduction efforts fail to advance, leading to an increasein physical risks such as those due to natural disasters.
Going forward, we will evaluate the impacts undereach scenario and also carry out scenario analysis forother businesses, taking the results into account in theformulation of our management plans.

* This thinking focuses on the impact on the global environment of CO2
emitted from the transportation of food. The Company is involved in an
initiative to offer products purchased from local stores in Yokohama-shi
or vegetables hydroponically grown in the stores.

Climate-related risks and opportunities, and their response measures

Strategy
The Group assumes climate change to have asignificant impact on its Energy Solutions Business andPower & Electricity Business. For these businesses, wehave begun analyzing the below 2 C scenario, whichis associated with high transition risks, and the 4 C
scenario, which is associated with high physical risks.
With 2050 as the target year, we are examining the risks
and opportunities that may arise under these scenarios
as well as response measures.
The below 2 C scenario assumes that the climate will

equipment and water-saving facilities. We also soldedible container products at the EAS café. (Sales
currently suspended)
In FY2022, in addition to continuing and expanding
the above initiatives, Living & Wellness Businessacquired real estate assessor qualifications of
CASBEE (Comprehensive Assessment System for
Built Environment Efficiency), which is a method forevaluating and rating the environmental performanceof buildings. We also changed straws, cups, andcutlery to paper, reduced food mileage*, and promoted
production for recycling preform (PET bottle material).

Response to climate changeE

Environment

Response to climate change

Environment

CO2 emissions reduction target
FY2021 Greenhouse gas (GHG) emissions

Action plan

Scope 1

Improve delivery efficiency
with SmartOWL®

(direct emissions)★

17,049 t-CO2

Reduce Scope 1 emissions

Scope 2Aim

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

(indirect emissions from the use of energy)★

16,972 t-CO2

Promote EV for company cars
Reduce Scope 1 emissions

Scope 3

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

(indirect emissions in the value chain)★

5,958,716 t-CO2eq

Scope 1

17,049 t-CO2(0.3%)(0.3%)

CO2
emissions5.99 million
t-CO2eq
Scope 3

5,958,716 t-CO2eq(99.4%)

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

Specificactions

Eliminate mineral waterbottle labels
Reduce Scope 3 emissions (category 1)

We began selling label-less products in April 2021. Our 550 mL bottles are soldexclusively in boxes and without labels on the bottles themselves, thereby reducing
the amount of plastic waste. This also eliminates the hassle of removing labels whensorting trash and contributes to reducing the environmental impact.

Carbonneutrality
by 2050

Greenhouse gas (GHG) emissions
Scope 1 ★

17,049 t-CO2

Scope 2 ★

16,972 t-CO2

Scope 3 ★ 5,958,716 t-CO2eq
Category 1 ★

goods
596,251 t-CO2eq Purchased
and services

Fuel and energyactivities
Category 3 ★ 2,415,898 t-CO2eq related
not included in
Scopes 1 and 2

Category 4 ★

and19,676 t-CO2eq Transportationdelivery (upstream)

Category 11 ★

2,926,890 t-CO2 Use of sold goods

Promote sales for highefficiency water heaters
Reduce Scope 3 emissions (category 11)

Reduce CO2 from LPG delivery
Reduce Scope 3 emissions (category 4)★ marked indicators are independently assured by KPMG AZSA Sustainability Co., Ltd. The basis for the calculations is as follows:

The scope of calculation covers Mitsuuroko Group Holdings Co., Ltd. and its consolidated subsidiaries. We have added Shizuoka Mitsuuroko Foods Co., Ltd. sinceNovember 2021. General Storage Company Pte. Ltd., an overseas subsidiary acquired in December 2021, is excluded from the boundary of this report as it is difficult tocompile sustainability information. Scope 1 and 2 emissions include only CO2 emissions, while Scope 3 emissions include emissions from GHG other than CO2.
Scope 1: CO2 emission factor of fuel and the unit calorific value are based on the coefficients specified in the Act on Promotion of Global Warming Countermeasures.
Scope 2: CO2 emission factor of electricity based on the adjusted emission factors by electric utility business operator.
Scope 3: Each emissions intensity is referenced from the Act on Promotion of Global Warming Countermeasures; the Ministry of the Environment ʼs “Database on
Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain ”; and the Inventory Database forEnvironmental Analysis version 2 (IDEAv2) for calculating supply chain greenhouse gas emissions, published by the Sustainable Management Promotion
Organization.
Category 1: Calculated by multiplying the amount (physical quantity) of petroleum-derived fuel and city gas procured for sales by the emission intensity for each fuel typespecified in IDEAv2.

We aim to contribute to the reduction of CO2 emissions and the prevention of global
warming through the promotion of high-efficiency gas equipment. We are promoting
sales of energy efficient products with high added value. These include latent heatrecovery-type high efficiency water heaters for domestic use called “ECO-JOZU,” which
reduces CO2 emissions by approximately 16% compared to conventional heaters, as wellas “ECO ONE,” a hybrid hot water and heating system that combines a heat pump water
heater with “ECO-JOZU,” achieving an approximately 40% reduction in CO2 emissions.
Japan Enagic Co., Ltd., which is one of our LPG delivery subcontractors, hasparticipated in the Tokyo Trucking Associationʼs Green-Eco Project. In the “Tokyo
Freight Forwarding Evaluation System” conducted by the Tokyo Metropolitan
Government, it was awarded “one star (☆)” for its efforts to reduce CO2 emissions
in FY2021. The Group is supporting initiatives to reduce CO2 emissions from LPG
delivery by promoting SmartOWL® delivery operation streamlining solution to LPG
delivery businesses throughout all of Japan.
Category 3: GHG emissions derived from the extraction, production, and transportation of fossil fuels used in the production of electricity for sales purposes and the
production of energy purchased for private use. Emissions from “electricity for sales purposes” are calculated by multiplying the amount of electricity soldby the basic emission factor of Mitsuuroko Group conducting retail electricity business and the emission intensity database figure. Emissions from “private
electricity consumption” are calculated by multiplying the amount of electricity used for private consumption by the emission intensity database figure.
Emissions from “private fuel consumption” are calculated by multiplying the amount of fuel used for private consumption by the fuel emission intensities
specified in IDEAv2 for each fuel type.
Category 4: Upstream transportation emissions are calculated by multiplying the transportation volume (t-km), which is the product of the cargo weight and the distancetransported, by the IDEAv2 emission intensity for each transportation type. For shipping and transportation, fuel consumption is multiplied by the emission
intensity from the Ministry of the Environment database.
Category 11: Calculated by multiplying the sold volume (physical quantity) of petroleum-derived fuel and city gas by their respective fuel-specific calorific values and CO 2
emission factors.

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Promote reducing CO2 from theuse of electricity

Scope 2
16,972 t-CO2

We will use the power sources we procure and non-fossil fuel certificates to promote
the reduction of our own power consumption and our customersʼ CO2 emissions.
[Mitsuuroko Green Plan]
Renewable Energy Ratio Plan | Energy sources from renewable energy + Non-fossil
fuel certificate (designated renewable energy)
CO2 Emission Reduction Plan | All energy sources (no designation) + Non-fossil
fuel certificate

Response to climate changeE

Environment

Environment

Response to climate change

Controlling customer CO2 emissions

Expanding the energy solutions business

Promotion of high-efficiency gas equipment
We seek to contribute to the reduction of CO2
emissions and the prevention of global warming throughthe promotion of high-efficiency gas equipment,
proposing and selling efficient products with high added
value. Aiming to meet our customersʼ diverse needs
and preferences, these products include latent heatrecovery-type high efficiency water heaters for domestic
use called “ECO-JOZU,” which reduce CO2 emissions
by approximately 16% compared to conventional
heaters, as well as “ECO ONE,” a hybrid hot water andheating system that combines a heat pump water
heater with “ECO-JOZU,” achieving an approximately
40% reduction in CO2 emissions.

We save energy at a wide range of facilities including
plants, commercial facilities, and hospitals through theselection and maintenance of cogeneration systems
and the proposal of energy-saving equipment. We also
work to realize comprehensive energy management
centered on electricity, thermal, measurement, control,
power storage, and power generation. In addition
to reducing running costs with our energy solutions,
we are expanding business that helps the global
environment. Committed to the achievement of asustainable society, we provide solutions for the future.
Hybrid hot water andheating system“ECO ONE”

Renewable energy is an important form of domesticenergy that does not emit greenhouse gases and canbe produced within Japan. It harnesses the naturalenvironment and is also a vital power source for thedevelopment and maintenance of society. In addition
to the power plants we already possess, we are also
developing renewable energy sources such as solar,
wind, and biomass.

Promotion of residential-use fuel cell “ENE-FARM”

30

Provision of the Mitsuuroko Green Plan
Residential-use fuel cell
“ENE-FARM”

Since the “Paris Agreement” was adopted in December
2015, the awareness of consumers and investors
toward climate change has increased rapidly, andcorporate efforts toward reducing greenhouse gas
emissions are being viewed as important. By providing

What is the Mitsuuroko Green Plan

Expanding sales of solar power generation systems
Solar power is a carbon-free source of energy that does
not emit greenhouse gases. Consumers do not need to
pay consumption charges and can reduce the amountof electricity they purchase from power companies byusing the power generated for their own household.
Unused energy can then be sold to power companies.
It is also highly economic, as once installed, power cancontinue to be generated as long as there is sunlight.
Since Japan often faces natural disasters such as
earthquakes, typhoons, and severe rainstorms, solar
represents an effective source of emergency powerin the event of power outages. We will also promote
the spread of energy creation/storage system throughthe installation of storage batteries together with solar
power generation systems.

the “Mitsuuroko Green Plan” to customers who
are working to reduce their CO2 emissions, we willcontribute to a low-carbon society and meet the needsof our customers.

The Mitsuuroko Green Plan uses renewableenergy supplied by Mitsuuroko Green EnergyCo., Ltd., as well as non-fossil fuel certificates.
It offers CO2 emission factors tailored forcustomersʼ needs in two main options.

1

Renewable Energy Ratio Plan
Energy sources from renewable energy +Non-fossil fuel certificate
Energy sources fromrenewable energy
procured by Mitsuuroko
Green Energy Co., Ltd.

* It not only reduces electricity charges, but also enables customers to
reduce their CO2 emission factors.
* The plan is available Japan-wide excluding Okinawa and some remoteislands.

Customers can report lower emissions in the System forGreenhouse Gas Emissions Calculation, Reporting, andDisclosure based on the Act on Promotion of Global WarmingCountermeasures (Global Warming Countermeasures Act).
Customers can report lower emissions in a CDP report, which
is noticed by corporate investors.
Customers using our extra-high-voltage power service or
high-voltage power service can view the balance between
costs, emission factors, and renewable energy introduction
ratio, and select a plan.
Customers using our low voltage power service can choose
between the 100% renewable energy plan and the 0.00
emission factor plan.

Customers

Non-fossil fuelcertificates (designatedrenewable energy)

Benefits of the Mitsuuroko Green Plan
Lead improvement of corporate image.

Mitsuuroko Green
Energy Co., Ltd.

2

CO2 Emission Reduction Plan
All energy sources + Non-fossil fuel certificate
All energy sources
procured by
Mitsuuroko Green
Energy Co., Ltd.

Mitsuuroko Green
Energy Co., Ltd.

Customers

Non-fossil fuelcertificates

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29

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

Development of renewable energy sourcesResponse to climate changeE

Environment

Environment

Response to climate change
Improving delivery efficiency with SmartOWL®

Key examples

Provision of electricity through off-site corporate PPAIn April 2021, Mitsuuroko Green Energy Co., Ltd.
provided the “Mitsuuroko Green Plan,” which adheresto the “RE100*1,” global initiative on renewableenergy, to the facilities of “RE100” member MARUIGROUP CO., LTD.
As a new initiative, in December 2022, it was decided
that Mitsuuroko Green Energy Co., Ltd., MARUI CO.,LTD., and JA MITSUI ENERGY SOLUTIONS, LTD. will
jointly work to establish an off-site corporate PPA*2.
In this business, Mitsuuroko Green Energy Co., Ltd.

supplies electricity derived from renewable energy
sources generated at five solar power plants newly
developed by JA MITSUI ENERGY SOLUTIONS, LTD.
in the service area of Tokyo Electric Power Company,
together with RE100-compliant electricity, to two
facilities of MARUI CO., LTD. in Tokyo. The businesshas been selected for the “Subsidy for Promotion ofCustomer-led Introduction of Solar Power Generation(FY2022 budget),” a publicly offered program by the
Ministry of Economy, Trade and Industry.

*1 “RE100” is a global initiative aimed at preventing global warming. It is led by The Climate Group (international NGO working to reduce greenhouse gas
emissions) in partnership with the CDP (international NGO promoting disclosures on environmental problems). Member companies pledge and publicly
announce that they will use 100% renewable energy for the electricity used in their business activities by 2050 at the latest.
*2 Corporate PPA is a method in which consumers procure renewable energy power from a power generation business operator for a long period of time and at a
fixed price.

Power generation
business operator

JA MITSUI ENERGYSOLUTIONS, LTD.

Electricity
generated withsolar power

Retail electricity providers

Mitsuuroko Green
Energy Co., Ltd.

Purchase ofrenewable electricity
Electricity bill
payment

Aggregation
The required amount of planned
value of power generation
forecast at the required time

PPA contract
Electricity
generated withsolar power

Consumer

MARUI CO., LTD.

Sale of renewableelectricity
Electricity bill
payment

100% renewableenergyProvision of the Mitsuuroko Green Plan to construction companies
Mitsuuroko Green Energy Co., Ltd. has partneredwith a construction company and started to provide
new construction sites with the Mitsuuroko Green
Plan, a CO2 emission reduction plan that contributes
to the measures against global warming.

Many construction companies are also working onsustainability initiatives, and in response to requests
for electricity to be used at new construction sites,
we decided to introduce the Mitsuuroko Green Plan
supplied by Mitsuuroko Green Energy Co., Ltd.

efficiency by utilizing data automatically acquired through
LPWA connection.
Through digital transformation (DX), we have developed
a proprietary system that incorporates four patented
technologies and know-how that reduced the delivery
operation time by 30% in the demonstration tests, and theservice has been available as “SmartOWL® delivery operation
streamlining solution” to LPG companies since October
2021.

Reduction in the number of meter readings throughautomated meter reading and reduction effects of
CO2 emissions
CO2 emissions reduction effects of Mitsuuroko Group (Scope 1)
Number of automatic meter readings from April 2019,
when the service began, to December 2022: 1,171,539

Reducing environmental impact by improving
delivery efficiency
In order to use LPG, it is essential to deliver LPG
containers to the consumersʼ homes by truck, and bystreamlining this delivery operation, the distance traveledby trucks can be shortened, thereby reducing CO2
emissions.

Amount of CO2 emissions reduced

1,171,539
timesApproximately 104,501 kg

Customersʼ CO2 emissions reduction effects
Number of automatic meter readings from April 2019,
when the service began, to December 2022: 1,351,706

Amount of CO2 emissions reduced

1,351,706
times

Approximately 120,572 kg

Distance traveled per meter reading(actual results from randomly selected MV retailers): -------------------------- 500 m
CO2 emissions per liter of gasoline: ------------------------------------2.32 kg-CO2/L
Fuel efficiency of meter reading vehicles: ------------------------------------- 13 km/L
From the above, CO2 emissions per meter reading is 0.0892 kg
Amount of CO2 emissions reduced = 0.0892 kg × Number of meter readings

Effectiveness has been proven through experiments
Mitsuuroko Creative Solutions Co., Ltd. conducted anexperiment from October 2018 to the end of September
2019 and demonstrated the effects of improving delivery

Effects of improving delivery efficiency
We achieved an approximately 30% reduction indelivery operation time and an approximately 20%
reduction in travel distance in a demonstration test ofdelivery efficiency improvement using LPWA connection*.
ENPT

Shorter travel distance= lower CO2 emissions

LOW

Initiatives of operating companies
Participation in TSEʼs carbon credit market demonstration project
Since December 2022, Mitsuuroko Vessel Co., Ltd. hasparticipated in the carbon credit market demonstration
project, which the Tokyo Stock Exchange has been
conducting on a trial basis as a project commissionedby the Ministry of Economy, Trade and Industry.
* TSEʼs carbon credit market demonstration project
In order to achieve the goal of carbon neutrality by 2050, the government haspresented the “GX (Green Transformation) League Basic Concept,” a voluntary
framework for setting ambitious CO2 emissions reduction targets based onnational guidelines, trading credits to achieve the targets, and having thegovernment confirm the results. As part of this framework, the government has
proposed the establishment of a carbon credit market as a platform for voluntaryemissions trading, as well as a mechanism for setting voluntary emissions
reduction targets and emissions trading to achieve these targets.
This project is to demonstrate the establishment of a market where carbon
credits are widely traded in a form where the price is publicly announced.

Daily collection of gas meterreadings via LPWA

Daily monitoring of
remaining LPG quantity

Implementation of a
new delivery method

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

Service overview
Customers with LPWA
terminals installed

Delivery operation
streamlining solution* LPWA connection is used to collect informationsuch as LPG meter readings on a daily basis.

Daily gas meterreadings data

LPG companies

Delivery system for LPG
companies
Container
replacement
date data

This service is equipped with four patented technologies to provide the mostefficient container replacement date.
No. 6364571
Patent No. 6744472
number No. 6757454
No. 6803488

This service, which shortens delivery operation time, contributes to CO2emissions reduction by reducing truck operating time and travel distance, andserves as a complement to labor shortages. In doing so, it will help solve social
issues and promote ESG, and is proposed as a strength of the Group, which
continues to provide “more fulfilling lifestyles” through energy supply.

LPG companies using the service
will be able to enjoy the benefits ofincreased efficiency without having
to make major changes to theirdelivery operations environment.

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PPA contract

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

Response to climate changeE

Environment

Environment

Response to climate changeWind power generation business

Biomass power generation businessIn wind power generation, a turbine is turned by
the force of wind, and this rotational motion is thentransferred to a generator to create electricity. It is acomparatively efficient method of power generation
where 40% of windʼs energy can be converted toelectricity. With its long coast lines, Japan has many
locations suitable for harnessing stable wind power(average wind speed of 6 m/second or more), making
it a promising country for wind turbines. We are also
considering the installation of offshore wind turbines.

Biomass is an organic resource (excluding fossil fuel)produced by organisms from the inorganic compoundsof water and CO2 using solar energy. It is a sustainable
and renewable energy source that only requires lifeand solar energy. Within biomass, it is the category of“woody biomass,” which comes from wood such as
thinned wood and construction wood waste. Since
CO2 generated by burning woody biomass is absorbed
from the atmosphere by trees in the process ofphotosynthesis that drives their growth, there is virtuallyno increase in atmospheric CO2. This is called “carbon
neutral.”Total
outputMarch 2007

Azuchi-Oshima
Oshima-mura,
32,000 kW
Wind Power Station Hirado-shi, Nagasaki

January 2008

KamisuYanagawa,
Wind Power Station Kamisu-shi, Ibaraki

Total output

10,000 kW

Japanʼs first wood chip
Mitsuuroko Iwakuni Iwakuni-shi,January 2006
combustion 10,000
Power Plant
Yamaguchi
kW power plant
We provide electricity produced at the Mitsuuroko Iwakuni Power Plant to thecustomers of our power and electricity sales business.

Mega solar business

Total
outputFebruary 2014

Suigo-Itako
Maekawa, Itako-shi,
Solar Power Plant Ibaraki

14,500 kW

July 2014

FuttsuShimokenzaku, Kato,
Solar Power Plant Futtsu-shi, Chiba

40,000 kW

Solar power plants with output under two megawatts
The Group is working to expand the use of solar power
generation systems and fuel cells to promote thespread of renewable energy.
We also have solar power plants that are of a smallerscale than the mega solar plants described above (lessthan 2 megawatts). We currently operate these plants in
19 locations, and the total output in FY2021 was 7,152
thousand kWh.

Commencement of construction preparation for grid energy storage stations thatwill contribute to spreading renewable energy as the main form of power and thestability of power grid
Mitsuuroko Green Energy Co., Ltd. has begun
preparations for the construction of the Kitahiroshima
No.1 and No.2 Storage Stations in Kitahiroshima-shi,
Hokkaido.
The use of renewable energy power generation
facilities for the realization of carbon neutrality by 2050
is expanding. However, there are difficulties in power
generation prediction and control due to the fact thatfacilities such as those for solar and wind power are
affected by the seasons and the climate. To solve thesechallenges, it is essential to secure “adjustment power”
to suppress unstable power generation.
At these power storage stations, the storage batteries
can be used as “adjustment power,” and the charge

or discharge control of the storage batteries can thenbe used to compensate for the shortfall in the power
generation plan of the renewable energy power source,
thereby contributing to the stabilization of the power
grid*1. In addition, these storage stations can also be
used in the control of distributed energy resources andother such applications.
Mitsuuroko Green Energy Co., Ltd. seeks to createa stable and efficient balance of supply and demandfor electricity. As an aggregator*2, it will contributeto the further adoption of renewable energy and thestabilization of power systems by entering new markets,
such as the supply-demand adjustment market and thecapacity market.
OutputCompletion date
to be confirmed*3

Megapack, a large-scale industrial use storage battery manufactured by TESLA Inc.
Source: TESLA (https://www.tesla.com/megapack)Kitahiroshima No.1
and No.2 Storage
Stations

Kitahiroshimashi, Hokkaido

3,085.6 kW*1 Power grid
A system that integrates power generation, substation, power transmission, anddistribution to supply power to consumersʼ power receiving equipment.
*2 Aggregator
A business operator that effectively manages energy by bundling the electricity
demand of consumers and the electricity of distributed power sources (storage
batteries and private power generation equipment).
*3 The delivery date has been delayed due to the situation in Ukraine, and thecompletion date has not yet been confirmed.

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

Response to climate changeE

Environment

Response to climate change

Environment

Initiative for participating in renewable energy aggregation businessTo participate in renewable energy aggregation
business, Mitsuuroko Green Energy Co., Ltd., hasentered into and started operation of a business tie-up
with Nippon Koei Co., Ltd. to develop and demonstrate
Integrated Power Control Central (IPoCC), a nextgeneration integrated power system that utilizes
distributed energy resources such as storage batteries.
Based on the business tie-ups, we aim to build “IPoCC”
and provide power generation forecasting andrenewable energy supply-demand adjustment services
for renewable energy power generation facilities, suchas those for solar and wind power, which fluctuate
substantially. Its development will enable a smoother
General electricity
transmission anddistribution business
operator
Provision ofadjustment power

Capacity market
systemSupply-demand
adjustment market system

Retail electricity
providers
Avoid imbalance,etc.

Simplified control
systemPower generation
business operator
Power generation
forecasting support

Consumer
Effective use ofrenewable energy

Next-generation integrated power system platform

35

Charge anddischarge control ofstorage batteries

Renewableenergy BG

Adjustment instruction(supply-demand adjustment
market and capacity market)

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

ConsumerDR

Mitsuuroko Green EnergyCo., Ltd.
Retail electricity providers

Electricity sales plan
RA

RA

RA

RA*

Power generation
forecastingsupportRenewableenergy BG
service

Renewable energy and In-house power supply
Storage battery control
Consumer DR

DemandBG

In addition, we have expanded the provision of DR
services to customers using our low-voltage power
service since November 2022. By utilizing this service
together with our customers, we will contributeto alleviating the supply crunch of electricity andeconomical energy use through power-saving, peakshifting, and energy efficiency and conservation
initiatives, and help to expand the introduction ofrenewable energy for a decarbonized society.
* Demand response is a system that allows consumers to change theirelectricity consumption patterns in response to electricity pricing or incentive
payments in order to curb the use of electricity during times of high wholesalemarket prices or low grid reliability, in order to balance the supply and demandof electricity by decreasing or increasing the consumption of electricity.
As renewable energy sources become more prevalent, there is a need foran adjustment mechanism that handles power generation being affected byweather conditions, and DR is an effective means to address this issue.

Moss cultivation business initiatives
We have begun a new moss cultivation business as an
initiative to utilize our idle land. In November 2022, thefield was expanded to 2,500 m2 and 18 long sheets (1m × 50 m) were installed in addition to the conventional
cultivation of seed moss. It is expected to be used forweed control and greening in highway service areas,
inside plant facilities, and railroad operator track areas.

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

Received a five-star rating from the Energy Conservation Communication Ranking System
Mitsuuroko Green Energy Co., Ltd. received the highest
rating of five stars as a retail electricity provider in the2022 evaluation results of the “Energy Conservation
Communication Ranking System” conducted by
the Ministry of Economy, Trade and Industry and the
Agency for Natural Resources and Energy.
The purpose of this system is to evaluate and publicize
the level of information and services provided byeach provider for general consumers regarding
energy efficiency and conservation and the statusof their efforts, so that general consumers can use
the evaluation results as reference information whenselecting an electricity or gas company, and toencourage further energy efficiency and conservation

Since July 2021, Mitsuuroko Green Energy Co., Ltd.
has been providing Demand Response (DR) services
to its customers using our extra-high-voltage power
service or high-voltage power service. However, thesupply-demand situation for electricity has remained
difficult due to recent sharp rises in fuel prices, theshutdown of thermal power plants, and the heatwaves in the summer. In light of this, in August 2022,
we enhanced the DR service functions of our nextgeneration integrated power system, IPoCC, and began
new operations in response to requests for powersaving from the government and general electricity
transmission and distribution business operators.
<Added functions>
Early delivery of DR implementation result reports
Long-term DR activation

efforts based on the information provided for it.
Mitsuuroko Green Energy is actively working to provide
useful information on energy efficiency and conservation
to customers, share information on environmental
issues and initiatives related to decarbonization throughwebinars and social media, and expand the use of
demand response services to encourage power-saving.

Other climate change initiatives
1

Activities to protect and nurture the forests around water collection sites

Working together with local communities, we areengaging in activities to protect and nurture theforests around the water sources used by Mitsuuroko
Beverage Co., Ltd., a Group company that produces
natural water products (mineral water production andsales business). We support activities advocated by
Yamanashi Prefecture for the protection and nurture ofnational forests that are deteriorating. Partnering with
Narusawa Village 1st District, we have entered into anagreement for participating in volunteer activities tomaintain the Narusawa Village 1st Districtʼs own forest.
Mitsuuroko Beverage Co., Ltd. is actively engaging
in these efforts as part of activities to recharge water
sources that provide the water essential for producing
its products.
* From FY2020 to FY2022, this activity was not conducted due to the spread of
COVID-19.

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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

response to the supply-demand adjustment market
which is phased in from FY2021, and the capacity
market, which will start in FY2024.
Mitsuuroko Green Energy Co., Ltd. and Nippon Koei
Co., Ltd. have labelled IPoCC as “epoch-making.” The
two companies aim to establish it as next-generation
standard in power control systems, and in addition
to developing and testing it, they are focusing on
external sales and the expansion of aggregation energy
business. Through these efforts, they will contributeto the popularization of renewable energy and therealization of a decarbonized society.

Improvement and expansion of demand response service functions for the nextgeneration integrated power system IPoCC

Response to climate change/Promotion of resource cycleE

Environment

Environment

Response to climate change

Promotion of resource cycle
Basic approach2

Mitsuuroko Group promotes the 3Rs (Reduce, Reuse, Recycle) throughout the Group. We are strengthening
our commitment to resource recycling in our various business activities.

Baking bread using domestic wheat

Sweet Style Co., Ltd.ʼs bakery, “Azabujuban MontThabor,” focuses on selling frozen bread that uses
domestically produced wheat. Using domestically
produced wheat as the raw material shortens thetransportation distance and does not use chemicals
such as fungicide for importing. It also uses raw
materials milled with a stone mill and offer customers
products baked at the stores. These products are madewith meticulous attention to the environment, health,and superb taste (aroma), and are winning the supportof many customers as a new value.

31Installation of solar panels on the roofs of the companyʼs facilities

General Storage Company Pte. Ltd. (GSC), theCompanyʼs overseas subsidiary, has set forth “a green
and caring tomorrow with self-storage” as its ESG
vision. GSCʼs self-storage brand, Lock+Store, hassigned an 18-year purchase agreement with Union
Solar Pte Ltd, a solar power generation business
operator, to realize this mission. The solar panels
installed on the roof of the Chai Chee facility (completed
in January 2023), which is a trunk room operated by theCompany, will have a maximum output of approximately
487.3 kWp, which is expected to reduce the use offossil fuel-based energy by approximately 30% whenused on-site at the facility.

4“Save Bread” to reduce food waste

Azabujuban Mont-Thabor believes that, “as lovers of bread andthe Earth, we cannot waste the bread we have made with ourown hands so easily.” This is why any bread that was previously
discarded daily due to being out of standard (minor aesthetic
imperfections or browning) despite having no quality issue, or any
bread that did not sell, are now called “Save Bread” and sold at areasonable price.
This initiative will help reduce food waste and environmental impact,
as well as provide an opportunity to try Azabujuban Mont-Thaborʼs
bread at a discount.

2

Launched vending machine for frozen out-of-standard breads

In April 2022, Mont-Thabor Kugenuma Kaigan Store (Fujisawa-shi,
Kanagawa) introduced its first frozen bread vending machine, withthe aim of providing the delightful experience of enjoying homemade
bread, readily available as a convenient and eco-friendly snack.
Frozen bread and frozen dough made of 100% domestically
produced wheat are readily available for purchase 24 hours a day.
We will also contribute to the reduction of food waste andenvironmental impact by offering out-of-standard bread.

Use of vacant space for vegetable gardens

Lock+Store has partnered with SG Gardens, a local horticultural company, to utilize vacant space at the Chai Cheefacility for vegetable gardens. The harvest from the vegetable garden will be donated to charities that support lowincome families or sold to restaurants.

3“Sustainable Real Estate Management” initiatives to reduce furniture waste

MITSUUROKO Co., Ltd. is working with Social InteriorInc., a furniture subscription service and off-pricemarket provider, on sustainable real estate managementthat reduces furniture waste.

Initiatives
1

Procurement of furniture for designing space in real estatebusiness through subscription
By not owning the furniture needed for income-producing properties,
and by utilizing the subscriptions service offered by Social Interior Inc.
to promote the collection and secondary use of furniture when it is nolonger wanted in the future, we aim to make effective use of resources.

2

Edible hibiscus

Edible marigold

Reducing the hassle of owning furniture needed by property
users, collecting unwanted furniture, and reusing it
We will progressively make the Subsclife furniture subscription
service of Social Interior Inc. available to tenants and users of rental
apartments, office buildings, and commercial facilities operated by
MITSUUROKO Co., Ltd. at discounted prices. This reduces the usersʼ
initial setup fees, the hassle of ownership, and the hassle of arranging
for disposal when no longer wanted. At the end of the period, Social
Interior Inc. will collect the furniture and promote its secondary use in
its off-price market, Subsclife Off Price.

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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

37

3R promotion initiatives

Promotion of resource cycle/Supply chain

E

Environment

4

Environment

Promotion of resource cycle

Bowling pin reuse contest and reuse education in elementary schools

Rain-Bowling Project image characters
Pinffany & Pinbow

7

Bowling Pin Reuse Contest
39

Mitsuuroko Group Holdings Co., Ltd.

Grand prize (1 winner)

Excellent prize (5 winners)

Promotion of recycling of used paper and clothes

Lock+Store supports the activities of SG Recycle Pte
Ltd*, a company involved in the recycling business, andis the first self-storage provider in Asia to install two of
SG Recycleʼs robotic waste collection machines (onefor used paper and one for used clothes) at its Chai
Chee facility.

40

SUSTAINABILITY REPORT 2022

The Bowling Pin Reuse Contest, a
cooperative project with Kanagawa
Shimbun, was held in May 2022. After
careful screening of 161 applications, 19
winners were awarded prizes.

Flower installation: Smile Flower Bath installation

SPA EAS: Yokohama Tennen Onsen supports the Smile
Flower Project, an initiative to save flowers that would
otherwise be discarded as out-of-standard products
or wasted due to the shrinking market caused by the
pandemic. At the entrance, flower baths (hanachozu )are created and displayed according to the season,
welcoming guests in a festive manner.
In addition, events aimed at raising awareness of the
project included a popularity contest for flower art anda stamp collecting game, creating a cycle that links thesmiles of employees, flower farmers, and customers
through the flower decoration initiative.
We will continue to strive to recycle resources andenhance the value of facilities with ideas that capture
current trends.

In May 2022, as part of the Rain-Bowling Project ,a sustainable activity using discarded bowling pins,
Mitsuuroko Sports Co., Ltd. held the Bowling Pin Reuse
Contest*2 in cooperation with the Kanagawa Shimbun.
After careful screening of 161 applications, 19 winners
were awarded prizes.
The grand prize winner, Yamoto Elementary School in
Yokohama-shi, held a Rain-Bowling class (an original
bowling game that allows students to learn how toreuse discarded pins while having fun playing) as partof their 4th grade class on SDGs. (Held in November
2022)
We will continue to promote the project with theaim of contributing to the local communities and theenvironment.
*1*1 A project to provide children in Yokohama-shi with opportunities toexperience the SDGs through play using discarded bowling pins
*2 A project to invite application for reuse ideas on new ways to reuse bowlingpins, of which approximately 500 are discarded by Hamabowl each year. A
contest aiming for the realization of a sustainable society

6* SG Recycle Pte Ltd has installed more than 100 robotic waste collection
machines throughout Singapore. Users can obtain point return services inexchange for used paper and used clothes.

“Bowling Alley in the Forest”
by Ms. Ikeda, Yamoto Elementary
School, Yokohama-shi“Unique pots of bowling pins”

by Ms. Kosai

Supply chain* Four other applicants received the award.

Green and eco-friendly projects initiatives
5

EAS café promoting elimination of plastic and local production for local
consumption toward becoming a sustainable cafe

In FY2022, we eliminated all conventional plastic cups
and replaced them with paper cups and paper straws*.
In addition, in purchasing ingredients, vegetables areprocured from local stores in Yokohama-shi, and only
the necessary amount is harvested through hydroponic
cultivation using the plant cellar within the EAS café,
thereby reducing food mileage and food waste.
We will continue to operate our facilities with anawareness of our contribution to the environment andthe local community.
* In order to maintain service quality and ease of drinking, we have introduced
stainless steel tumblers instead of paper cups for some alcoholic beverages in
response to customer feedback.

Japan Enagic Co., Ltd., in which our Group company
Logitri Holdings Co., Ltd. holds a 20% share, hasparticipated in the Tokyo Trucking Associationʼs GreenEco Project*. Through the elimination of complicateddeliveries, and promotion of continuous eco-driving
activities, Japan Enagic Co., Ltd. has reduced thetravel distance by 4.6%, reduced fuel consumption by
8.9%, improved fuel efficiency by 4.71%, and reduced
CO2 emissions by 288 tons (CO2 absorption equivalent
to 20,600 cedar trees) in FY2021 compared to theprevious year.
In addition, in the “Tokyo Freight Forwarding Evaluation
System” conducted by the Tokyo Metropolitan
Government, it was awarded “one star (☆)” for its
efforts to reduce CO2 emissions in FY2021.
We are aiming to achieve “environmental CSR(management improvement from the environment)” witha focus on social contribution and social responsibility
by raising the environmental awareness of each andevery employee, including management, supervisors,and drivers.

* A project launched by the Tokyo Trucking Association that incorporates unique
CO2 reduction initiatives in order to contribute to the prevention of global
warming.
The project aims to build a database from the fuel consumption data collected
for each vehicle and engage in initiatives such as the promotion and support ofcontinuous eco-driving activity, the reduction of CO2 emissions, the reductionof costs through the improvement of fuel efficiency, and accident prevention.

Effects of Japan Enagic Co., Ltd.ʼs activities

http://www.tta-gep.jp/search/?p=5333

S(Social)SocialSocialSince the founding, Mitsuuroko Group has operated business based on the concept that humanresources were the source of our growth and our greatest asset.

Main target management indicators (KPIs)

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

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

Number of drills conducted in relation
to confirmation of safety

Yearly target

Yearly target

Yearly target

Increase from 11 locations(the number of locations in 2021)―

Twice a year
(for all employees)* The “̶” symbol indicates a qualitative target.

Rate of receiving regular medical examinations Rate of receiving thorough examinations

Rate of maintaining proper weight

Yearly target

FY2023 Target

FY2023 Target

to co-exist with local communities and realize a safe and secure society. We hope to contribute toContinue to provide
100%

90%

80%

Rate of undergoing stress checks

Rate of smoking

Rate of regular exercise

FY2023 Target

FY2023 Target

FY2023 Target

100%

18%

40%

Rate of parental leave taken

Ratio of female employees

Ratio of female managers

Yearly target

FY2026 Target

FY2026 Target

Female employees: Continue toprovide the yearly target of 100%
Male employees: FY2023 target 20%

33%

11%

Number of diversity training conducted

Number of career seminars conducted

Number of maternity leave andparental leave training conducted

FY2022 Target

FY2022 Target

FY2022 Target

Once a year for all
employees

Once a year for female
employees in their late 20s

Once a year for
managersa bright future, beautiful planet, and an affluent society.

43

Stable supply of energy/electricity

45

Safety assurance and quality control for customers

41

47

Disaster prevention measures

Mitsuuroko Group Holdings Co., Ltd.

INDEX

49

Respect of human rights

51

Health-focused management

55

Inclusion & diversity

58

Human resources development

59

Local communities

42

SUSTAINABILITY REPORT 2022

To ensure stable and reliable services, we do everything we can and should, no matter how small,Stable supply of energy/electricity

S

SocialStable supply of energy/electricity
Basic approach

Transportation safety management safety basic policy

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

Stable supply of LPG and petroleum products

75% of LPG is imported from overseas. The Group hasentered a yearly procurement agreement with importcompanies. The Group stably procures LPG that meets
Japanese Industrial Standards and simultaneously
stores approximately 90 days worth of gas at the importcompany and government, and approximately 60 days
worth of gas at the warehouse in order to respond togeopolitical risks.
Also, the Group has entered agreements with multiple
import companies regarding petroleum products. The
Group secures petroleum products of quality, proactively
imports heating oil that fulfills standards of certifying
associations in Japan and overseas, and maintains
a structure that prevents obstacles in fuel supply. In
addition, the Group stores fuel at our own bases.

Within our logistics infrastructure, we transport LPG
from the port hub of the import company to ourfilling stations under an exclusive contract with atransportation company and deliver from our filling
stations to our customers. We are striving to provide
stable supply of petroleum products to our customers
by entering into charter agreements with petroleumtransportation companies.

Stable supply of electricity

Cooperation with related business operators

In accordance with major changes to the energy environment,
including electricity and gas systems renovations, the Group
believes that the stable and secure supply of electricity iseven more important.
In order to ensure the stable procurement of electricity,
we are constructing an optimized electricity portfolio thatcombines in-house power supply and the mutual purchasing,
etc. from independent power plants. We have developed ascheme to continue providing electricity in a stable fashion
through both long-term electricity agreements and shortterm electricity agreements based on mutual cooperation
with independent power plants. At the same time, we will
utilize multiple systems, such as swaps, futures, and the BL
market to improve the stability of electricity supply. In addition
to renewable energy, we have also considered transactions in
the LNG power, coal power, and Japan electricity wholesalemarkets as we aim for the best mix of energy.

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

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

Contribute to society by taking up the challengeof eliminating accidents and disasters

2

Safety is prioritized in all operations

3

No trust without safety

Safety measures
Important safety measuresthe most important task is confirmation. Confirmation andreconfirmation by pointing is done covering all aspects
from the vehicle surroundings to sources of heat andobstacles around where the cylinders are installed, truck
elevators, the transportation route, smells around thecylinders, and detailed parts.
Under the slogan of “Taking up the challenge to achieve
zero accidents in all areas with the highest priority on
safety and security,” the entire Logitri Group is working
hard to achieve no accidents and traffic violations, and toensure safe driving and reliable delivery operations everyday.

Targets / achievement status

Details of implemented measures

Targets for this year

Achievement status

1

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

Establish safe driving
through introduction ofdrive recorders

2) Educate on transportation safety management
system3) Implement internal audits4) Hold open safety conferences2

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

Spread awareness throughinternal audits and training

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

3

Acquire and renew G Mark
(excellent safety workplace)

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

4

Implement traffic safety measures meetings
1) Research actual accidents and prevent
reoccurrence
2) Report details of meetings to headquarters

Conduct analysis andreport to headquarters at
safety measures meetings

5

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

Promote near missactivities

6

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

Spread awareness by
posting annual targets,etc.

7

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

Extract issue areasand implement
countermeasures

8

Implement IT inspection system

Implement at someworksites

Maintain safety at
1 existing facilities Implement risk assessment
Spreadawareness of
2 transportation
safetymanagement

Transportation security management
The Group has established logistics companies in
Tohoku, Kanto, Chubu, and Kansai regions. The holding
company Logitri Holdings Co., Ltd. owns each of them as
the Logitri Group, which realizes stable supply of energy
through safe, secure, and prompt logistics services.
We also hold a delivery skills contest to spreadawareness of security, ensure the implementation ofreliable inspection services as an accredited security
organization, and to further improve the quality of delivery
operations. The contest comprises acts actually involvedin transportation. Everything from vehicle driving,customer interaction, careful stock taking, speedy andcareful delivery and installation of compressed gas
cylinders is subject to judging. Within these processes,

1

Secure safe
4 operations

1) Secure certified personnel according to law（ health and safety promoters, workplace accident prevention supervisors

Transportation supervisors, construction supervisors, C-grade chemical managers,

1) Effectively utilize drive recorders
2) Implement accompanying guidance3) Educate drivers
4) Implement delivery skills contest with nationwide worksite participation

Uniformization of1) Implement accompanying guidance
5 container exchange work 2) Educate drivers
Implement
Implement regular diagnoses and follow-up
6 health checkups checkups
Implement
Implement general, initial, age, and specified
7 aptitude diagnoses diagnoses for all drivers (implement again in 2 years)
Publish and1) Update home pages
8 share information 2) Utilize internal postings
Implement emergency 1) Develop manual
9 response training
2) Implement training
No accidents and traffic 1) Acquire driver record certification (3 years)
10 violations awards2) Award at safety meetings
Initiatives for environmental Participate in Tokyo Trucking Associationʼs “Green and
11 contribution businesseco-friendly projects” and introduce awards system

Organizational system to secure transportation safety
Logitri Holdings Co., Ltd. views transportation safety
management as an important mission, acknowledges it
as an important area where top management should bedirectly involved, and has established a management
structure in order to issue prompt and clear directives.

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

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

Presidents at Logitri
companies

Transportation
management director
Management
director

Area manager

Worksitemanager

Transportation supervisor,
facility supervisor

44

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

43

Stable procurement of LPG and petroleum products

Slogan（SocialSafety assurance and quality control for customers

S

SocialSafety assurance and quality control forcustomers

SocialBasic approach
EnergyMitsuuroko Group takes efforts to secure safety under a basic policy that there are “no sales without security.”
To prepare for emergency situations, such as gas leaks, the Company has built a 24 hours a day, 365 days a year
emergency dispatch system and has established a strong security system to prepare against all situations to ensure
customer safety.
As laws and regulations are revised over time, we will constantly transmit and support the newest information on how
to strengthen safety systems, heighten awareness of disaster prevention, and advance voluntary safety measures.

Electricity

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

Foods

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

Real estate

Real estate

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

Initiatives for safety assurance / quality control

In addition to development and leasing of residential homes, office buildings, and commercial facilities, Mitsuuroko
Group offers proposals to expand the range of peopleʼs lifestyles and aim for harmony between regions throughbusiness.
We pay close attention to not only the quality of buildings, but also the quality of services provided to customers as wetake ongoing efforts to improve customer satisfaction.
EnergyWellness

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

Development of strict
internal standards(Mitsuuroko Standards)
that go beyond laws
and regulations

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

Thorough expiry
management forprovided equipment

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

Measures to eliminate
carbon monoxide
poisoning accidents

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

Acquisition of a foodsafety management
standard

In the bottled water business division, we have acquired JFS-B certification, a food safety management standard, in our
Yamanakako Plant, Narusawa Plant, and Gifu Yoro Plant. The Ihara Factory and Okitsu Factory of Shizuoka Mitsuuroko
Foods Co., Ltd. which are new additions to the Group, have acquired FSSC (international standard on food safety
management system), and both plants manufacture and sell products with the focus on providing safe products to ourcustomers.
* JFS certification is a food safety management standard from Japan that is aligned to international standards
and centers on the three axes of food safety management system (FSM), hazard controls (HACCP), and good
manufacturing practice. It was developed by the Japan Food Safety Management Association (JFSM), which wasestablished under the guidance of the Ministry of Agriculture, Forestry and Fisheries.
* The FSSC standard stands for Food Safety System Certification and is a system standard for food safety developedby the Foundation FSSC22000. The standard is approved as one of the food safety certification schemes by the
Global Food Safety Initiative (GFSI), a non-profit organization led by the food retail industry.

Selection of business
partners and initiatives

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

Measures for customer
satisfaction

In order to provide properties with added value that will satisfy many customers, the Group is proactively introducing
features to both new and existing properties, such as Wi-Fi connectivity, car sharing services in the rental apartment
grounds, a call center that can respond to tenant requests 24 hours a day, measures to prevent illegal entry ofsuspicious persons through elevators that only stop on certain floors and have a hands-free system, introduction ofenergy-saving products, such as air conditioning equipment that limits energy output, and water-saving toilets. The
common area has also been renovated and turned into a lounge with a library and theater room for residentsʼ use.
In our commercial facilities, we aim to be more closely connected to the community through sponsorship andparticipation in local events and publication in local magazines. The Group collects the opinions of tenants andcustomers by proactively establishing information sharing and communication opportunities with tenants, such asmonthly store manager meetings where the representatives of in-facility stores gather. Through this, the Group is taking
efforts to create facilities that are easy to use.
We introduce various measures to reflect the voices of customers into business activities and are striving to improvecustomer satisfaction as we proceed with quality improvements from a customer point of view.

Structure for safety assurance and quality control
Foods

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

Electricity

Regarding supply and demand of electricity, we haveconstructed a system that enables cooperation with powertransmission companies to boost the security of electricity
supply. In the power generation business, we have staff
working by shifts at plants 24/7 as well as remote monitoringfrom headquarters. By this, we have constructed a systemcapable of constant monitoring of power plants as wetake efforts to secure the safety of our power generation
business.

Foods

The company formed hazard controls (HACCP) teams ateach plant in the bottled water business division, completed
products were removed by lot, given voluntary inspection
for micro-organisms, and shipped if they passed theexamination. We are striving for quality maintenance andmanagement, such as implementing regular inspections ofwater sources and products by external public institutions.
In inspections, inspectors with proper training, knowledge,
and skills use specialized equipment for chemical analysis,
micro-organism analysis, and foreign substance analysis.
The company rigorously selects “ingredients that have aclear distribution path” and implements “safe and securemanagement of owned kitchens” in the operation ofrestaurants, in-facility stores, cafeterias, DELICATERIA,
voluntary chain stores, a hamburger restaurant chain, freshbakeries and cafés, and more, all run under the Foods
Business. In product development, use external “eyes”
to perform “food product examination that pursue safety”
and make daily improvement to aim for these HACCP
management quality standards.

RealestateWellness COVID-19 measures

At SPA EAS and Hamabowl, we disinfected the facilities and applied anti-bacterial / anti-viral glass coating in January
2021. This glass coating has cleared the SIAA standards (safety of antibacterial processed products) and is highly safe.
We also increased the pace of facility sterilization to once every 60 minutes and maximized ventilation.
Also, in SPA EAS, we introduced IoT for customers to remain safe and avoid crowded areas by visualizing the crowdingin each area.

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45

Wellness

The Company has constructed a structure that can respond tovarious situations in order to ensure the safety of customers.
During morning meetings, employees learn to use AED and
CPR to prepare for emergencies. In addition to training of
hot springs facilities, Company employees and tenant store
employees gather twice a year and confirm the evacuation
path during emergencies.
At Yokohama Tennen Onsen SPA EAS, the Company changes
the hot springs water each day, performs bi-annual water
quality examinations, and uses mild materials to create anenvironment where customers feel comfortable to use thefacilities with confidence. Also, the Company has implemented“Onsen IoT” that can display the status of crowding on mobile
devices or internal displays by counting in real-time the numberof users in each location through a stereo camera installedin key areas in the facility (a hot-stone spa, break areas, coworking spaces, etc.).
Because customers can check on the status of crowding in thefacility using the specialized app, it is possible to use facilities
while avoiding crowds. This is very helpful in preventing the
spread of COVID-19.

Disaster prevention measures

S

SocialDisaster prevention measures

SocialDisaster prevention measures at power plants

Basic approach
Mitsuuroko Group has constructed an emergency dispatch system that operates 24 hours a day, 365 daysa year to prepare against unexpected trouble, such as gas leaks. We have established a strong security
structure to prepare against any situation in order to ensure the safety of customers.
To strengthen resilience and respond to electricity supply constraints and natural disasters that have grownwider in scope and more intense recently, the Group reinforced the supply infrastructure, including selfdefense capabilities, and strengthened the link with business operators for quick restoration. The Group isfurther strengthening structure-building and supply-demand adjustment function to secure stable supply ofenergy in times of disaster.

Disaster-resistant LPG

Earthquake countermeasures

LPG can be carried by filling canisters. It is known as
a “distributed energy that can be used independently”
and inspected and repaired on an individual basis intimes of disaster.
Mitsuuroko Group is strengthening disaster response
measures and established a strong system to minimize
the impact of disaster on customer lives.

LPG is known as an energy that is resistant toearthquakes. However, the Group promotes theinstallation and attachment of safety equipment,
including microcomputer meters, to prepare against
unexpected circumstances. We have established an
emergency dispatch system that operates 24 hours aday, 365 days a year through a call center.

Storm and flood measures
The Group is strengthening the below measures toprevent leakage of LPG containers through storm andfloods.
1 Install disaster prevention nets to prevent leakage
from platforms and secure lashing belts at LPG
container filling stations.
2 For LPG containers installed in customers ʼ homes,
we check for flood risks using hazard maps andregister this as customer information. We securedouble canister chains and promote the attachmentof tension-type high-pressure hoses as disastercanister leakage prevention.

Introduction of safety confirmation
system (emergency call system)
Mitsuuroko Group has introduced a safety confirmation
system (emergency call system) at all businesscompanies, not just in the Energy Solutions Businessand Power & Electricity Business. The Group hasconstructed a system that can confirm the safety of
employees by PC or mobile phone, speedily confirm
the safety of employees or their family members, andquickly take action for customer response and business
continuity.

Development and application ofbusiness continuity plan (BCP)
Mitsuuroko Group has developed a BCP and disaster
response manual to prepare against large-scaledisasters and the recent spread of COVID-19. The
Group regularly confirms the communications system
and important facilities, conducts accident response
training and dispatch training, and maintains a constantawareness to respond smoothly to emergencies.
Confirmation of safety and grasping damage status
Installation of emergency response headquarters intimes of disaster
Disaster manual (action flow)
Implement business continuation strategy based on
the degree of impact on business

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

Under the basic policy, in case of a disaster, allCompany employees come together and take efforts
to contribute to local communities, preserve company
assets, prevent secondary disasters, quickly restore
equipment, and prevent reoccurrence of disasters aswell as prioritize saving human lives.
In the following cases, the Company shall adopt
an extremely strict system, such as establishing an
emergency response organization automatically during
disasters, regardless of the status of damage. In
addition, the chief officer can establish an emergency
response organization when deemed necessary toattend to the response.
An earthquake with an intensity of lower 6 orstronger (on the Japanese scale of 7) hits areas
where power plants are located.
Alarm declaration based on large-scale
earthquake countermeasure special
mechanism and warning related to Tokai
earthquakes issued

Also, the security management office manages the
emergency countermeasure headquarters and local
countermeasures headquarters to prepare against
emergencies. This office regularly holds disasterprevention drills for cases of severe disasters at power
plants with headquarters. Specifically, the office holds“alarm training” and “disaster prevention drills” atleast once per year, heightens awareness of disasterprevention among employees, and takes efforts foreducation.
48

Emergency response system
Emergency countermeasure
headquarters
Emergency countermeasure
headquarters director
Emergency countermeasure
headquarters deputy director

Local countermeasure
headquarters

Security management officedirector

Local countermeasure
headquarters director

Emergency countermeasure
headquarters advisor

Local countermeasure
headquarters deputy director

Safety confirmation teamEvacuation guidance teamInformation teamSupport teamRescue team

Agent
Employees other thanabove

Opening of Nagano Office (BCP measures)
Mitsuuroko Creative Solutions Co., Ltd. opened theNagano Office of Mitsuuroko Administration Centerin Nagano-shi, Nagano, in July 2022, as an addition
to the Mitsuuroko Administration Center in Saitamashi, Saitama, which is the shared services division of
Mitsuuroko Group. While we continue to upgrade ouroperations and make them efficient by centralizing
the operations that have been dispersed throughout
the Group companies, through the opening of the

Nagano Office, we have established a system thatavoids the risk of interruption in our operations due
to centralization when struck by disaster, etc., so that
operations can continue in the event of an emergency.
We have established a system that allows us to shift
to pre-determined operations in an emergency byactivating the BCP program if it becomes impossible tocarry out operations in Saitama-shi, Saitama.

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

47

Mitsuuroko Green Energy owns wind power plants,
biomass power plants, and solar power plants.
Therefore, it has established emergency response
standards and prepared a disaster response manual
for the objective of forming a response organizationthat can respond promptly and properly when natural
disasters, fires, and explosions occur at power plants.

Respect of human rights

S

SocialRespect of human rights

SocialInitiatives on human rights due diligence

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

Mitsuuroko Group Human Rights Policy
Based on the management philosophy of “As a Lifestyle
Producer, we consistently conduct our business withintegrity and from the customerʼs perspective” and theCharter of Corporate Ethics, Mitsuuroko Group is taking
efforts to realize lifestyles that are gentle on humans
and the Earth by providing new value for society andconsumer needs.
We have established the “Mitsuuroko Group Human
Rights Policy” to respect the human rights of all people
either directly or indirectly related to all processes in ourbusiness activities. We will continue to take efforts torespect the human rights of various stakeholders.

Mitsuuroko Group Human Rights Policy
1

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

2

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

3

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

4

Human rights due diligence
Mitsuuroko Group identifies the impact of its business activities
on stakeholder human rights and strives to prevent and mitigate
issues by continuing the construction/operation of human rights due
diligence systems.

5

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

5

Disclosure of information
Mitsuuroko Group discloses information through its website, including
the progress status of its own human rights respect initiatives andthose results.

7

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

8

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

9Important themes related to human rights in
Mitsuuroko Group
Mitsuuroko Group has established important themes related tohuman rights below and aims to realize a work environment that feels
worthwhile and respects human rights.

(1) Prohibition of discrimination / harassment

Mitsuuroko Group does not accept any sort of discrimination orharassment on the basis of race, ethnicity, tribe, nationality, religion,
beliefs, origin, gender, age, disabilities, or sexual orientation, etc.

(2) Prohibition of child labor / forced labor

Mitsuuroko Group prohibits child labor, forced labor, human trafficking,and other improper labor practices.

(3) Respect for basic rights of labor

Mitsuuroko Group respects the basic rights of labor of employees,
including the freedom of association, rights to unionize, and rights ofcollective bargaining.

(4) Promotion of diversity and inclusion

Mitsuuroko Group respects each employee as an individual and strives
to establish a work environment where employees can do their best to
maximize their capabilities and utilize their differences.

(5) Initiatives to ensure safe work environments andhealth-focused management

Mitsuuroko Group aims to ensure a pleasant, safe, and hygienic
workplace environment and to create a workplace where each and every
employee can work energetically and vigorously in order to lead a healthy
and cheerful life both mentally and physically.

(6) Support for work-life balance

Mitsuuroko Group strives to support the realization of work-life balance foreach employee.

1

Formulation of Human Rights Policy(4) Monitoring (risk prevention/mitigation/correction)

There are multiple options for corrective measures, depending on
the intensity of the negative impact on human rights and the typeof our involvement. We will consider what corrective measures areappropriate for rights holders, and will review the appropriateness of
those measures after the fact.

In 2021, Mitsuuroko Group formulated and published its Human Rights
Policy, which consists of nine provisions. It also stipulates 6 priority
themes.
2

Direction of initiatives regarding human rights DD(5) Communication (reporting)Based on its human rights policy, Mitsuuroko Group is currently
considering ways to establish a human rights DD system. Specifically,
we are considering the following methods.

The status of human rights DD implementation will be reported
regularly to the Board of Directors and disclosed on the official
website and in the Sustainability Report.

(1) Scoping (risk identification)

In the business activities of Mitsuuroko Group, there are a wide
variety of human rights risks that our business activities involve or
could involve due to the many stakeholders.
To this end, we will work with personnel with expertise both insideand outside the Company to determine the scope of human rights
issues to be investigated, including the type of issue, country/
region, and product, taking into consideration a variety of factors.

(2) Data collection

We will gather information necessary for risk analysis, from bothquantitative and qualitative perspectives, through engagement withstakeholders in an appropriate manner.
We will strive to gather information, especially through dialogue withrights holders.

(3) Risk analysis

Based on the data collected in (2) above, we will analyze how weare or can be influencing rights holders. In doing so, we will also
consider the types (implementation, facilitation, and involvement)that identify how we are involved with negative human rights
impacts, and explore ways to address them according to theirimpact, leading to (4) in the next section.

3

Implementation in FY2022

No cases of human rights DD were implemented in FY2022.

Although we have not yet established a specific system, we areconscious of human rights risks in our business activities and checkfor events that may have a negative impact on human rights throughinitiatives to deepen understanding of human rights, based on ourhuman rights policy, such as human rights training and complianceactivities at each company of the Group. We are also working to
identify risks in individual businesses through interviews with experts
and internal audits.
In the future, we will establish and operate a specific human rights DD
system based on the identified risks.

50

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

49

Based on its human rights policy, Mitsuuroko Group has established a system for human rights due diligence(hereinafter “human rights DD”).

Health-focused management

S

SocialHealth-focused management
Initiatives for health-focused management

Basic approach
Understanding that human resources are our greatest asset, Mitsuuroko Group considers the healthmanagement of employees, who are the source of our future growth as an important management issue.
The Group respects that people face diverse life stages, aims to create workplaces for the autonomousand proactive management of their own health, and supports employee health promotion through various
initiatives and information transmission.
In the future, the Group will continue to perform various initiatives to promote physical and mental healththat can prevent disease, establish workstyles that fit new normal, and promote enhanced health-focusedmanagement as a leading company.

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

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

Health-focused management promotion system
Representative Director
and Chief Executive Officer
3

Director and Group CIDO

4

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

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

6

Recent measures (from April 2020)(1) Provision of health-conscious meals

At certain business sites of the Group, we provide “mini employee
meals” that are light and health-conscious to support the healthof employees through “food.” The Group plans to expand thebusiness sites where “mini employee meals” are introduced.

(2) Adult physical fitness test

The Group held athletic seminars led by physical therapists. This was
not only an opportunity to learn about self-care, including occupationalcare and mindfulness, but also measure “strength,” “flexibility,” and“balance” as participants looked back at their own health.
In FY2022, we also participated in a walking event using a health care
app and engaged in a month-long walking initiative. Participants whowalked more than 200,000 steps in a month (approximately 6,500
steps per day) received a commemorative participation gift.

(3) Adult voluntary research (food contest)

Employees cooked food based on the Mitsuuroko “triangle” logo for
a company contest. Through this contest, employees could think
about food, the fun of cooking, and nutrition. It aimed to invigorate
communication between employees and families. The theme in FY2021
was onigiri (rice balls), and the theme in FY2022 was sandwiches.

(4) Radio calisthenics / hand clap

Since FY2021, these have each been held online once a week,
primarily for female employees. In addressing lack of exercise
experienced with increased telecommuting, this also promotes
communication through events and exchange.

(5) Opening of the Health-focused Management Room
Health Management Business
Promotion Committee(Smiling Good Project)
Mitsuuroko
Health Insurance
Association

Mitsuuroko
Group Holdings
Collaboration National
Co., Ltd.
Mitsuuroko
Labor
Each
Union
Mitsuuroko
Group company

Health-focused management strategic map
Achieve HealthCare Declaration
Mental and physical health
Improve productivity
Invigorate workplaces

Improvement ofhealth literacy

Managers in charge of implementing healthfocused management at each facility

Persons in charge of implementing health-focusedmanagement at each facility

InsuredDependents

Changebehavior

New normal

Construct a workplace environment where
each employee can work in good healthContinue to provide 100% of
employees with health checkups

Mitsuuroko Group Holdings Co., Ltd.

Mitsuuroko Group wants to continue to be helpful topeopleʼs lives as “a Lifestyle Producer” by supplying
stable energy, food and drink and real estate services.
The Group also aims to be a company that makes
customers feel “Every Day, Special!” where all
employees have a mindset that each day is special andfull of new opportunities. In order to realize this, it isessential for each and every employee to be healthy inbody and mind. Mitsuuroko Group will continue tocreate a workplace environment where each employee
can work in good health and promote initiatives that
contribute to the health of employees.

Mental health measures

5

Mitigate risk from health issues

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

Changeconsciousness

Health-focused Management Room has been opened since
FY2021 on the portal site, containing information on health anddetails of the results of various events.
Radio calisthenics videos are also posted on the website, allowing
individuals to engage in radio calisthenics at their own leisure.

Indicators related to health-focused management

Indicators

ActualTarget

FY2019 FY2020 FY2021 FY2022

FY2023Rate of receiving
regular medical
examinations

100%

100%

100%

88.3%

100%

Rate of receiving
thoroughexaminations

56.5%

56.1%

74.4%

82.2%

90%

Rate ofmaintaining proper
weight

62.6%

63.5%

62.9%

62.6%

80%

Rate ofundergoing stresschecks

97.5%

98.6%

100%

100%

100%

Rate of smoking

37.5%

33.4%

32.8%

32.0%

18%

Rate of regularexercise

23.2%

25.0%

24.8%

27.2%

40%

* FY2022 figures of actual results are as of January 31, 2023.

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SUSTAINABILITY REPORT 2022

Mitsuuroko Group Health Promotion
Activities Policy

In charge of health-focused management

Womenʼs health measures
Seminars for female employees and managers of either gender are heldon the themes of female health, life events, and careers. We support
womenʼs health and womanʼs participation and advancement throughcervical cancer screenings for female employees during their regular
health checkups.

* Chief Inclusion & Diversity Officer

51

Measures to prevent passive smoking

Mental health“We, Mitsuuroko Group, aim to create a workplace
where each and every employee can work energeticallyand vigorously by working on health promotion inorder to lead a healthy and cheerful life both mentallyand physically.”

Continue to provide 100% of employees withhealth checkups

Womenʼs health

Mitsuuroko Group Health Care Declaration

1

Measures to prevent
passive smoking

SocialHealth-focused management

S

SocialSocialHealth-focused management
Message from External Directors

Obtained certification as a Health & Productivity Management Outstanding
Organization 2023 (White 500)
In March 2023, the Japan Health Council, in
collaboration with the Ministry of Economy, Trade andIndustry, recognized us as a “Health & Productivity
Management Outstanding Organization 2023 (White
500),” which honors companies and corporations
that practice excellent health-focused management.
Based on the “Mitsuuroko Group Charter of Corporate
Ethics” and the “Mitsuuroko Group Health Care
Declaration,” the Group considers the support of theautonomous and proactive health management of
employees from a management point of view and is
working to promote health-focused management.

Director, Member of the Audit andSupervisory Committee (External) (Independent)

Yoshiyuki Kawano (physician)Obtained certification as Sports Yell Company 2023

1 Prevention of a drop in employee

The Group was certified as a “Sports Yell Company”
from the Japan Sports Agency for being a company
that proactively took measures for athletics in order toenhance the health of all employees.
The Group advocates the goals as a Sports Yell
Company, conducts radio calisthenics and aerobics
in womenʼs groups, and conducts training, such as
the “adult physical test.” In the future, the Group willproactively take measures for athletics in order toenhance the health of employees as one initiative topromote health-focused management.

performance
When it comes to modern day work styles, weare in the midst of a reform phase particularly interms of promoting digital transformation (DX) andadopting remote work arrangements. This has
opened up possibilities with respect to a wide
range of work styles, but has also given rise toworking conditions that put employees under a lotof stress. Against this backdrop, it is possible toprevent a deterioration in employee performance
while reducing the risk of mishaps and work-related
accidents as well as productivity loss by having
employees undergo health checkups where they
are encouraged to embrace better daily habits, andby having them also undergo stress checks that
help ensure early intervention when it comes tomental health issues.

Response to COVID-19 pandemic
The Group prioritizes the health and safety ofcustomers, business partners, employees, and theirfamilies in each region across Japan, based on theheadquarters. All employees share an awareness of
preventing infection and the spread of the virus as
the Group aimed to maintain an approximately 30%
attendance rate, promote working in group shifts,
remote work and staggered working hours, andA company gains the following four advantages
from health-focused management initiatives.

continue services for customers and security measures,and strove to maximize the retention of regional energy
life lines.
The Group is also striving to prevent the spread of
the virus by implementing best practices, such asencouraging basic anti-virus measures like masks,
hand-washing, gurgling, and applying disinfectant on
the hands.

2 Improvement of employee engagement
When a company declares its full support for
employee health maintenance and improvement
efforts and promotes specific measures, this willlead to greater employee job satisfaction, gratitudeof their family members, lower turnover rates, andimproved employee engagement.
3 Enhancement of corporate branding
A company is able to differentiate itself fromits competitors by engaging in health-focusedmanagement under its ESG initiatives. Such
practices are expected to contribute to improving
corporate image, securing outstanding talent,
improving customer satisfaction, and enhancing
product branding.
4 Improvement of corporate businessperformance and share priceJapanʼs Ministry of Economy, Trade and Industry
has reported findings suggesting that implementing
health-focused management may result in better
performance in terms of return on assets (ROA)

and return on sales (ROS). Moreover, share pricesof companies certified under the Health andProductivity Stock Selection have been shown tooutperform the Tokyo Stock Price Index (TOPIX).
The Group has had a firmly established cultureof valuing employees, whom it regards as humanresources, ever since I first assumed my position.
It takes a lot of time and perseverance for acompany to develop such a culture, and theGroupʼs culture is the culmination of over 90 yearsof development. I believe we now have a businessenvironment that will make it possible to implement
more specific measures given that we have gained
a common understanding regarding the notion that,when each and every employee works with vigor,
it is possible to revitalize the company while alsoachieving perpetual corporate development.
By establishing a health-focused management
promotion system headed by the Representative
Director and Chief Executive Officer in the midst of
this business environment, we have set up a systemfor visibly advancing health-focused management
thereby demonstrating our determination topromote healthcare initiatives throughout thecompany to both internal and external stakeholders.
Above and beyond the initiatives of the company,
I think it will be possible to achieve more intensive
health-focused management if we involve a change
in employeesʼ attitudes whereby they proactively
manage their own health.
As a result of this, we will continue serving as acompany that contributes to our local communities
as a Lifestyle Producer, by providing environments
where employees are able to work with vigor while
employing systems to safeguard such humanresources. As a doctor and an industrial physician,
I am committed to supporting employees withrespect to their mental and physical health andwill emphasize the importance of preventative
medicine.

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53

Improving corporate
value through healthfocused management

Inclusion & diversity

S

SocialInclusion & diversity

SocialPromote male employees to take parental leave

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

Promotion of womenʼs participation and advancement in the workplace
1

Numerical targets

3

The Group took efforts to promote womenʼs activities
as we aimed for the numerical targets announced on
November 12, 2014. We once again established targets
as follows in September 2021.
Ratio of female employees*1*2
Target as of March 2027:

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

11%

The ratio of female managers across all Group companies as ofDecember 2022 was 6.9%. The ratio of female managers as of
September 2014 was 4.2%, so this figure clearly increased in thepast eight years. The Group will further increase this to 11% by
March 2027.
*1 The calculation of this ratio is based on a figure that excludes contract
employees, part-time employees, and officers.
*2 Excludes Logitri Tohoku Co., Ltd., Logitri Chubu Co., Ltd., and Logitri Kansai
Co., Ltd., which have limitations on female employment due to operations that
require carrying heavy loads as an LPG delivery company. Eligible employees asof June 30, 2022: 1,589*3 Calculated as (female managers / total manager positions in consolidated Group(excluding Logitri Tohoku Co., Ltd., Logitri Chubu Co., Ltd., and Logitri Kansai
Co., Ltd.)) × 100

2

Hold career training for female employees

In FY2022, we held career training for female employeesof the Group aged 29-33. This is one of the measures
to support female employees who are vulnerable to life
events such as childbirth, childcare, and nursing care,by providing them with opportunities to learn how tobuild their future careers while facing events that havealready occurred or will occur in the future, and tobuild their own career at Mitsuuroko Group. Mitsuuroko
Group will continue to provide this training.

In April 2022, we launched the “Project Team for the
Promotion of Womenʼs Participation and Advancement”(Blooming Project Team) led by female employees
selected from each company of the Group.
The purpose of the project is to promote womenʼsparticipation and advancement as part of the diversity
promotion, and to realize systems and initiatives
that allow women, who often play a central role intaking care of children and elderly relatives, to work
more comfortably and continue their careers, thereby
contributing to the success of not only women but also
a diverse workforce. We expect that by involving theemployees themselves in the promotion of womenʼsparticipation and advancement, they will be able torelate to these activities on a personal level and create
new initiatives based on diverse ideas.

4

One of our Group companies
received the highest rank of Platinum
certification as a Company Practicing
Diverse Workstyles

In June 2022, Mitsuuroko Creative Solutions Co., Ltd.
received the Platinum certification under the certification
system promoted by Saitama.
We will continue to strive to create an environment inwhich each and every employee can work with vigor
and satisfaction.

Numerical targets

At the February 2023 meeting of the Companyʼs
Board of Directors, the Group set a numerical target topromote the use of parental leave by male employees.
The Group believes that by actively encouraging
employees to take parental leave, regardless of gender,
they can enrich their own work-in-life and promote a
workplace culture that accepts and utilizes the abilities
and individuality of diverse human resources, leading
to inclusion & diversity management that allows diverse
human resources to play an active role regardless ofgender or work style.

Rate of parental leave taken
FY2023 Target:

20%

FY2025 Target:

35%

FY2027 Target:

50%*1 The calculation of this ratio is based on a figure of full-time employees, contract employees, and part-time employees.
*2 Parental leave includes holidays for the purpose of childcare.
*3 Calculated as (male employees who took parental leave in the fiscal year / male employees whose partners gave birth in the fiscal year) × 100*4 If parental leave is taken in multiple blocks for the same child, it is counted as one child. If the parental leave is taken across two fiscal years, it is included in the fiscal year
when the parental leave started; if the parental leave is divided into multiple fiscal years, only the first parental leave taken is included in the calculation.

2

New management training

In FY2022, the Group conducted maternity leave andparental leave training for managers to ensure they havean accurate understanding of parental leave so as tomake it easier for all employees, regardless of gender,
to take parental leave. The Group plans to expand thetraining to all employees in the future.

New work styles
The Group aims to establish an environment where
employees of differing backgrounds are able tomaximize their abilities by realizing new work styles
that enables employees to have a flexible workstyledepending on the format of the business. The Groupalso hopes that employees will be able to live and workin the way they feel fits them the best.
The Group has worked on forming a system where
the entire Group can work remotely, and actively
implemented work from home. We will continue topromote new work styles, including hybrid workstyles
that combine remote work and office work.

Major Group initiatives
Provide tools that enable remote work
Provide PCs and mobile phones to complete tasks without going into the office
Recommend online meetings
Recommend online meetings instead of in-person meetings in order to prevent the spread of COVID-19
Introduce system that can receive outside calls on PCs (Uni Talk)
Implement system to receive outside calls without going to the office to enable flexible remote work
Introduce hourly paid leave
Enable paid leave in hourly units to improve work-life balance
Introduce varying work schedules that can be selected
Implement varying work schedules that can be selected based on individual lifestyle and workstyle (ex: there are six
selectable shifts at Mitsuuroko Group Holdings Co., Ltd.)
Introduce work from home allowance
Introduce a work from home allowance to subsidize utility and communication costs when working from home

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SUSTAINABILITY REPORT 2022

The ratio of female employees across all Group companies as ofDecember 2022 was 27.4%. The ratio of female employees as of
September 2014 was 25%, so this figure clearly increased in thepast eight years. The Group will further increase this to 33% by
March 2027.

55

Mitsuuroko Group Holdings Co., Ltd.

33%

Establishment of the Project Team for
the Promotion of Women s Participation
and Advancement

1Inclusion & diversity/Human resources development

S

SocialInclusion & diversity

SocialHuman resources development

Initiatives to achieve work-life integration
At Mitsuuroko Group, we believe in the importance ofintegrating work and life (work-life integration) in orderto create a synergistic relationship between work andBasic approachfamily life and to enhance both public and private life. To
achieve this goal, we have established various systems
to allow employees to choose diverse ways of working.

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

Evaluation system
Main systems, benefits, and initiatives related to work-life integration
System name

Overview of systems

Either working hour shift system orworking hour varying work schedule
system will be adopted as required by
the nature and conditions of operations
Working hour shiftsystem/varying work at each office and workplace.
schedule system• Working hour shift system→Two-shift or three-shift system• Working hour varying work schedule system→Adjustable in 30-minute increments
Available until the child reaches the age of 1
(Under special circumstances, this could be
extended to a maximum of the age of 2. It
can be obtained in blocks up to twice.)

Paternity leavesystemCan be taken separately from parental
leave for up to four weeks within eightweeks of the birth of a child (can betaken in blocks up to twice)

Caregiver leavesystemAs a general rule, it is available for a totalof 93 days for each person requiring
nursing care.

Sick/injured
childcare leavesystemAvailable until the child reaches the startof elementary school

Family care leavesystemAvailable for up to five days per year for
one eligible family member and up to 10
days per year for two or more eligible
family members

Mitsuuroko Group Holdings Co., Ltd.

57

Available until the child finishes the sixth
Shorter working
grade of elementary school
hours for childcare Can be shortened in 30-minuteincrements for maximum of six hours

Shorter working
hours for nursing
care

Available for a period of three years fromthe start of use (up to twice)
Can be shortened in 30-minuteincrements for maximum of 6 hours

Refresh leavesystemOverview of systems

A leave period of one consecutive monthis granted.
Available to those who have been employedfor 20 years in the fiscal year with the basedate set as April 1 of each year.

Can accumulate up to 30 days of expired
paid leave
Expired paid annual
Can be used for leave for personal injury
leave reserveor illness of employees, nursing caresystemleave, volunteer activities, and leave toprepare for retirement, etc.
System for leaveof absence forspouse or partner
relocating outside
Japan, etc.

Can take up to five years of leave ofabsence to accompany spouses andpartners who are staying abroad for six
months or more for work or study, suchas overseas transfers and overseas study

System for leaveof absence forspouse or partner
relocating within
Japan

Can take up to five years of leave ofabsence if deemed appropriate by thecompany

Hourly paid leavesystemPaid vacation days available in hourly
units (to be exercised five days per year,
up to 40 hours)

Determined on a company-wide orworkplace-specific basis.
Teleworking system Can work from home, satellite offices,mobile work, or other locations outsideof the office

Leisure time
support system(Yoka Cinema)

Subsidy for movie tickets once a year(including family/pair)

Handbook for Supporting Balancing Work with Childcare/Nursing CareIn response to the low birth rate, aging society, and increasing number of dual-income families,
the Group has created a Handbook for Supporting Balancing Work with Childcare/Nursing Careas part of our efforts to support employees who balance work and childcare/nursing care.
This handbook is developed to help employees who are engaged in childcare/nursing care tounderstand the internal and external systems related to childcare/nursing care and the processfrom leave to return to work, and to visualize how they can utilize the Companyʼs systems intheir daily childcare/nursing care and work, so that they can balance childcare/nursing care andwork according to their individual circumstances.

The Group examines multi-faceted criteria to support
employee skill development, promote utilization of skills,
accurately grasp the degree of achievement of duties,
perform on-the-job training, give fair and accurate
evaluations, support challenges and fair promotions
to higher positions, and contribute to a fair treatment
system in promotion, transfer, positioning, education,etc. through all skills.

Training system
1

Target management
Each employee sets their own targets twice a year. The Group has
adopted a “target management” system to evaluate the achievement/
contribution to those targets and provide proper benefits.
The Group performs multi-sided evaluations, including performance
evaluations that assess the achievement of performance targets andimportant topics as well as achievement of duties that target sharingof organizational targets, operational status evaluations that asses
the appropriateness of internal controls, and evaluations of individual
contributions in each department and contribution and achievementof operations improvement targets.

2

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

Initiatives to improve employee capabilities

The Group has taken efforts to establish an employee capabilities improvement program that aims to improve the skills and motivation of employees.
Contents

Frequency of
implementation

Objective

Training to develop the skills, knowledge, and mindset needed in working through learning Mitsuuroko
Group management philosophy, business details, and basic business manners.
Training aimed at learning duties expected of management, leadership in times of extreme external environmental
New management trainingchanges, and communication skills with members, as well as the ability to use this knowledge in practiceTraining for management to improve motivation of entire organization by once again raising awareness of
Evaluator training
appropriate evaluation methods and communication techniques with members
Career training for junior employees
Training for junior employees aimed at building independent and autonomous career design
Harassment prevention training
Training for all officers and employees of the Group to reaffirm basic knowledge of harassment and how to respond to it, with the aim of preventing harassment
Education related to information security and personal information protection aimed at boosting
IT compliance training
awareness of security threats among each Group officer and employee
Career training for female employees Training aimed at maximizing each individualʼs abilities and promoting the practice of career autonomy in order to achieve diversity
Maternity leave and parental leave training Training for managers with the aim of encouraging all employees to take parental leave through accurate understanding of parental leave by managers
Diversity training
Training for all Group officers and employees aimed at promoting diversity throughout the Group
Training aimed at recognizing that people are individuals before they are members of an organization, that people have rights
Human rights training
as human beings (human rights), and that it is necessary to respect human rights in the development of business activities
Sustainability training
Training to acquire knowledge and foster literacy on ESG
Foster a corporate culture where employees can freely take up challenges and expand opportunities for
Incubation system
discovery of new businesses
MBA acquisition support
New employee training

Law school support

Support system for acquisition of specialized and advanced knowledge and improvement of skills of employees

Once a year
Once a year
Twice a year
Once a year
Once a year
Once a year
Once a year
Once a year
Once a year
Once a year
Once a year
As needed
Applications received:
Once a year

Correspondence university support
Mandatory training at the time of hiring (for the construction and electrical industries, training on how tohandle machinery and safety equipment and on work procedures is also provided)
Sales presentation
Improvement of proposal skills and discovery of new businesses
Training for energy company store managers Training for store managers aimed at sharing current issues and improving leadership and communication skills to involve others
Harassment and mental healthTraining for managers aimed at improving communication skills and acquiring basic knowledge on mental
training for energy companies
health to prevent harassment
Training for chiefs aimed at acquiring the role expectations and support and leadership skills required of a chief, as well as toTraining for energy company chiefs
broaden the vision, perspective, and point of view, and to acquire team-building skills in light of company-wide optimization
Training aimed at helping employees realize growth through reflection on the work they have experienced
Energy company first year training
and their own actions in the first six months of employment, and to motivate them to take the next step
Training aimed at creating opportunities to think about both life and career aspects in the future after
Energy company pre-retirement training
retirement, in the age where people live up to 100 years old
Training for certification as an LNG
Training to acquire certification as an LNG technician
technician
Class C chief gas engineer training
Training to acquire certification as a Class C chief gas engineer
Foreman education
Training for new on-site supervisors in the construction and electrical industries
Traffic and driving safety training (new drivers/ drivers who have been in accidents, etc.)
Training to ensure safe driving
Escorted instruction on safe drivingusing a drive recorder
Education at the time of employment

2 Acceptance of practical training from various organizations and schools

Details of activities on

P. 61

As needed
Once a year
Twice a year
Once a year
Twice a year
Once a year
Once a year
Twice a year
Once a year
As needed
Once a year

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SUSTAINABILITY REPORT 2022

Parental leavesystemSystem name1

Local communities

S

SocialLocal communities

SocialRevitalization of local communities (National Mitsuuroko Association)
Basic approach
We at Mitsuuroko Group believe that contributing to society through our core business is the role we shouldplay, and we have been supported by many stakeholders, including local communities and society, in thecourse of our business.
As a corporate citizen in the local communities, we will do our best to contribute, even in small ways.

Member stores of the “National Mitsuuroko Association”
are responsible for sales of our products and havecontact with approximately 800,000 households.
“National Mitsuuroko Association,” as an organizationthat provides excitement and peace of mind, flexibly
responds to the diverse needs of customers, is chosen
by customers on a permanent basis, and establishes

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

We are striving to build an environmental foundation that will enable our member stores to flexibly respond to thediversifying needs and allow the next generation of managers to continue to take up the challenges.

We sympathize with the activities of the “Christel
Foundation,” which is working to improve animal
welfare, eliminate the killing of cats and dogs, andconserve biodiversity, and we support their fund-raising
activities. Donation boxes are placed in cafeterias,
convenience stores, etc. operated by Mitsuuroko
Provisions Co., Ltd. Mitsuuroko Group will continue tosupport the activities of the Christel Foundation in orderto save as many lives as possible.

Sales support

We support sales of priority products of
Mitsuuroko Vessel Co., Ltd. (electricity,internet, Cosmos Berryʼs)

Web exhibitions

As face-to-face sales are restricted, it ispossible to participate in web exhibition sites
using the Internet.

Service solutions for parents raisingchildren

Activities to protect and nurture theforests around water collection sites

Mitsuuroko Vessel Co., Ltd. offers service solutions forchild monitoring and family communication.
Their GPS-based monitoring service, “Mitsu-mailImakoko,” launched in July 2020, allows parents
to easily track their children's whereabouts using a
dedicated GPS device. The service automaticallysends notifications to parentsʼ smartphones when theirchildren arrive at or depart from schools, parks, andother places they frequently visit.
It also provides information on local disaster prevention
facilities and notifies parents of the entry of their children
into pre-defined dangerous areas, and the service has
been well received by many parents and school staff.
We will continue to take up the challenge of creating
fulfilling lifestyles for the children who will lead thenext generation and for each and every one of ourcustomers, and through “Mitsu-mail Imakoko,” wewill continue to provide a new monitoring service thatconnects parents and children.

As part of activities to beautify the environmentand recharge water sources in the forests around
Narusawa-mura in Yamanashi (“Mitsuurokoʼs Forest
Narusawa”), where the Narusawa Plant of Mitsuuroko
Beverage Co., Ltd. draws water, and in the promenade(“Mitsuurokoʼs Path”) in Nannou-cho, Kaizu-shi, Gifu,
where the Gifu Yoro Plant of Mitsuuroko Beverage Co.,
Ltd. draws water, Group employees, their families, andother concerned parties are engaged in volunteer forest
maintenance activities.

EMC

As a response measure for disasters, which
frequently occur, we provide “emergency
calls,” a service to confirm the safety of
employees in the event of an earthquake.
We also act as a middleman to provide theaccompanying emergency backpacks.

Action plan for FY2022
1

Enhancement of emergency response
measures• Preparing a disaster manual and sharing it with member stores by
posting it on the website of the “National Mitsuuroko Association”• Contributing to the community by increasing the availability ofdisaster response equipment (emergency bulk storage tanks,
LPG emergency generators, HGP emergency soup kitchen sets,
etc.)• Making proposals for BCP measure products in times of disaster(storage batteries, solar power generators for private use,
emergency power generators, etc.)2

Support towards realization of carbon
neutrality• Making plans and proposals to link carbon neutral initiatives tomember storesʼ growth strategies• Increasing the availability of high-efficiency gas equipment,
actively promoting fuel conversion to LPG, and supporting salesof new energy products• Supporting initiatives in new business models (decarbonization
businesses, EV-related businesses, and energy solution
businesses)
3* From FY2020 to FY2022, this activity was not conducted due to the spread of
COVID-19.

Strengthening the network of the “National
Mitsuuroko Association”• Enhancing the features of the website, introducing communication
tools such as web exhibitions, and actively promoting digitalization• Invigorating the activities of the association through productspecific enhancement programs and various training sessions• Further strengthening the cohesiveness of the association bycreating a symbolic logo of the “National Mitsuuroko Association”

Block meetings and study sessions

Members can participate in new productstudy sessions with handled manufacturer
representatives and information exchange
meetings that make use of the nationwide
network, supporting sales activities based on
constantly latest and useful information.
We organize the MITSUUROKOMANAGEMENT SCHOOL, a business schoolthat supports the development of young andnext-generation managers nationwide.

Mediation of supplies

We will create Information magazines related
to lifestyle that can be distributed to customers
of member stores, and act as a middleman toprovide member stores original gifts, etc.
They can also participate in paper exhibitions
through flyers.

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59

strong ties. In addition, the organization strives to build
an environmental foundation where the strengths ofeach member store can be fully demonstrated andthey can always take up challenges. The association
is currently composed of about 1,800 companies, andthey are indispensable partners in the provision of ourservices.

Local communities

S

SocialSocialLocal communities

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

Supporting the activities of the girls golf program “USLPGA-USGA Girls Golf Japan,”overseen by USLPGA and USGA
Mitsuuroko Group endorses the goals of the Girls
Golf academy overseen by the United States Ladies
Professional Golf Association (USLPGA) and the UnitedStates Golf Association (USGA) for the developmentof kids golfers and female golfers, and supports theactivities of “USLPGA-USGA Girls Golf Japan.”
The program not only teaches the skills as a golfer, butalso life skills as a woman and a global citizen.
Through this sponsorship, we hope that the participating
children will be able to enhance each otherʼs skills anddevelop an international mindset, and that the program
will serve as a catalyst for their future global activities ina variety of fields.

Contribution to society through sports
Promotion of sports club activities andsupport for top athletesWith the launch of the Mitsuuroko Womenʼs Basketball
Team in 2012 and the establishment of the Swim Teamin May 2021, the Company continues to make great
strides in leagues and competitions based on thephilosophy of contributing to the revitalization of thelocal community and interaction through sports.
Each member participates in competitions whileworking as an employee, fostering responsibility andattitude as a member of society, and working together
with a high level of awareness. Having active players
around stimulates the employees who work with them,and for the players, having supportive people aroundthem helps to foster a sense of unity among theemployees, and the workplace is full of vitality.
We have also entered affiliate contracts with swimmer
Katsuhiro Matsumoto and professional golfers Shiho
Kawasaki, Yuting Seki, Momoka Miura, Eimi Koga, andAiri Saito, and we will support these athletes as they
pursue their dreams and contribute to the developmentof sports culture.
We will continue to proactively engage in social
contribution activities through sports and also enhance
the corporate value of all of Mitsuuroko Group.

Start of Hamabowl Health Bowling Class
Hamabowl has started health bowling classes basedon the LTB program, which has a proven track recordin the United States, the home of bowling. We received
135 applications for the five classes, and 50 new
Hamabowl members who continued bowling after theclasses ended.

Held Bowling Alley Field Trip for Families
Hamabowl held a Bowling Alley Field Trip for Families.
After a tour of the backside of the bowling lanes, which
is not usually seen, a bowling lesson was given bya Hamabowl employee (who has obtained a JPBA
bowling instructor certification). Parents and children
pitched one game together while learning how to best
enjoy bowling.

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Local communities

S

SocialSocialLocal communities

Supporting the promotion of sports and recreational activities for disabled people
Hamabowl started supporting the sports and recreation
promotion activities of the sports and culture center for
people with disabilities, Yokohama Rapport.
We organized Hama Pick bowling tournament inside
Yokohama Rapport, and offered Hamabowl as apractice site for the Japan Para Sports Games.
We will continue to support sports activities for people
with disabilities through bowling in cooperation with
Yokohama Rapport.

Organized the Exhibition of Craft Art Made from Bowling Pins, a joint project with
Yokohama University of Art & Design
Hamabowl and SPA EAS: Yokohama Tennen Onsen
held an exhibition of craft art made from discarded
bowling pins with the aim of giving new roles to thetons of pins that are discarded each year. Students andfaculty of the craft course at Yokohama University of Art& Design, who regularly work with wood and metal intheir assignments, gave new form to the use of bowling
pins in this production.

Implemented Rain-Bowling Class

Sponsored Ramichan Cup 2022 Tournament organized by VAMOS TOGETHER, andjointly organized Ramichan Charity Bowling Tournament
We sponsored the Ramichan Cup 2022 Tournament
because we sympathized with the purpose of VAMOSTOGETHER*1, a general incorporated association
headed by Alex Ramirez*2, whose organizational goal is
to “maximize the talent and individuality of people withspecial needs and create a society where they can leadindependent lives.”
In December 2022, VAMOS TOGETHER and
Hamabowl (Yokohama-shi, Kanagawa) jointly planneda charity bowling tournament at Hamabowl, with theeventʼs objective of “an event where everyone can sharethe joy of physical exercise and have fun together.” This
tournament was aimed at providing an opportunity forbowlers with special needs to interact with each otherand raise funds for charity. The tournament was open to
the general public through a lottery system, and it wasan event that everyone could enjoy.
A portion of the proceeds from this tournament, as
well as the amount of money donated in the donation
box through the tournament, were used to support
childrenʼs development and independence support
activities through VAMOS TOGETHER.
*1 An organization that aims to create a society where people with and without special needs can coexist by playing and learning together.
It encourages people to make the most of their individual talents with the message, “Everyone is great in their own way.”*2 A former professional baseball player from Caracas, Venezuela. He served as manager of the YOKOHAMA DeNA BAYSTARS from 2016 until the 2020 season. Currently, he isactively involved in welfare activities as well as TV personality activities.

Support for storage location of donated goods, etc. to NPOs
GSC provides storage units and support to Ray of
Hope*1 and Nature Society*2, which are NPOs in
Singapore.
The storage units provided are used by Ray of Hopeto store donated relief items and by Nature Society
to store publications related to natural heritage
preservation activities, etc.
*1 Crowdfunding charity distributing necessities to low-income families in Singapore(https://rayofhope.sg/)*2 Non-profit organization dedicated to the appreciation, protection, research andenjoyment of the natural heritage of Singapore, Malaysia and surrounding areas(https://www.nss.org.sg/)

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Following the bowling pin reuse contest, which was partof the Rain-Bowling Project, Hamabowl held the RainBowling Class with students of Yamoto Elementary
School in Yokohama-shi for them to learn about reusein a fun manner by utilizing discarded bowling pins.
The event was a lively social gathering that included
students having fun exercising through the originallydevised game BOWLKKY (bowling + Mölkky), andhaving study sessions on ESG among themselves.

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)

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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.

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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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Mitsuuroko Group Holdings Co., Ltd.

69

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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Mitsuuroko Group Holdings Co., Ltd.

71

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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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.

76

SUSTAINABILITY REPORT 2022

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
Others78

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ESG Data

ESG Data

ESG Data
Waste volume
Industrial waste

Environmental data

Recycling of industrial waste

Sales volume for renewable energy and environment related products / greenhouse gas emissions
Sales volume
Electricity sales volume by energy
sourceProduct sales volume

Solar power
Wind power
Biomass power
Solar panels
Storage batteries
ENE-FARM

Greenhouse gas (CO2) emissions
Scope 1 + Scope 2

Greenhouse gas (GHG) emissions
Scope 3Category 1
Category 3
Category 4
Category 11

Total
Scope 1
Scope 2

Total
Purchased goods and services
Fuel and energy-related activities notincluded in Scopes 1 and 2
Transportation and delivery (upstream)
Use of sold products

Unit

FY2020

FY2021

thousand kW
thousand kW
thousand kW
kW
kWh
Units

7,045
55,80760,741
1,894
13,07176

7,152
48,88959,605
1,758
10,205
92

Unit
t-CO2
t-CO2
t-CO2

FY2020

FY2021

25,828
11,57914,249★ 17,049

34,021★ 16,972

Unit

FY2020

FY2021t-CO 2eq
t-CO 2eq

5,753,128*1
638,501★ 5,958,716

t-CO 2eq

1,960,081★ 2,415,898

t-CO 2eq
t-CO 221,095
3,133,452★ 2,926,890★ 596,251★ 19,676*1

Recycling rate
Toxic waste

Unit

FY2020*2

FY2021t−

35,088

t

−

2,398

%
t

−

6.8
2.3

Total amount
Coffee grounds, tea grounds, mandarin orange grounds, used paper andcardboard, metals, etc.
Recycled industrial waste/industrial waste (total volume)
Mercury waste, PCBs

★ marked indicators are independently assured by KPMG AZSA Sustainability Co., Ltd.
The Company has received independent assurance report since FY2020. For more
information, please refer to the Sustainabiity Report of previous year. The basis for the
calculations is as follows:
The boundary covers Mitsuuroko Group Holdings Co., Ltd. and its consolidated
subsidiaries. We have added Shizuoka Mitsuuroko Foods Co., Ltd. since November
2021. General Storage Company Pte. Ltd., an overseas subsidiary acquired in December
2021, is excluded from the boundary of this report as it is difficult to compile sustainability
information. Scope 1 and 2 emissions include only CO2 emissions, while scope 3
emissions include emissions from GHG other than CO2.
Scope 1: CO2 emission factor of fuel and the unit calorific value are based on
the coefficients specified in the Act on Promotion of Global WarmingCountermeasures.
Scope 2: CO2 emission factor of electricity based on the adjusted emission factors byelectric utility business operator.
Scope 3: Each emissions intensity is referenced from the Act on Promotion of Global
Warming Countermeasures; the Ministry of the Environmentʼs “Database on
Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc.,
by Organizations Throughout the Supply Chain”; and the Inventory Databasefor Environmental Analysis version 2 (IDEAv2) for calculating supply chain
greenhouse gas emissions, published by the Sustainable Management
Promotion Organization.
Category 1: Calculated by multiplying the amount (physical quantity) of petroleumderived fuel and city gas procured for sales by the emission intensity foreach fuel type specified in IDEAv2.
Category 3: GHG emissions derived from the extraction, production, and transportationof fossil fuels used in the production of electricity for sales purposes and the
production of energy purchased for private use. Emissions from “electricity−

for sales purposes” are calculated by multiplying the amount of electricity
sold by the basic emission factor of Mitsuuroko Group conducting retailelectricity business and the emission intensity database figure. Emissions
from “private electricity consumption” are calculated by multiplying theamount of electricity used for private consumption by the emission intensity
database figure. Emissions from “private fuel consumption” are calculated
by multiplying the amount of fuel used for private consumption by the fuelemission intensities specified in IDEAv2 for each fuel type.
Category 4: Upstream transportation emissions are calculated by multiplying thetransportation volume (t-km), which is the product of the cargo weight
and the distance transported, by the IDEAv2 emission intensity for eachtransportation type. For shipping and transportation, fuel consumption ismultiplied by the emission intensity from the Ministry of the Environment
database.
Category 11: Calculated by multiplying the sold volume (physical quantity) of petroleumderived fuel and city gas by their respective fuel-specific calorific values
and CO2 emission factors.
*1 Due to discrepancies in fuel consumption for LPG shipping logistics in FY 2020, it has beenrevised to the following figures.
Scope 3

Before revision

After revision

5,760,604 t-CO2eq

5,753,128 t-CO2eq

Changes−7,476 t-CO2eq

28,571 t-CO2eq

21,095 t-CO2eq−7,476 t-CO2eq

Category 4*2 Other environmental data results for FY2020 are not disclosed.
*3 Discharges to sewage are not disclosed (measured) by many water agencies, making it
difficult to aggregate.
*4 Discharged after neutralization, reduction, dilution, etc. as required by law.

Social data
Employee overview

Conversion factors, etc.
CO2 emission factors
City gas

Purchased electricity

ThermalOther fuelUnit

FY20202.23

tCO2/thousand Nm3
Emission factors by electric utility
business operator published inaccordance with the ministerial
ordinance of the Act on Promotion of
Global Warming Countermeasures.
Steam (excluding steam for industrialuse), hot water, cold water
Steam for industrial use
Heavy oil A
Diesel fuelHeating oil
Gasoline
LPG

FY2021

Male
Non-consolidated
Consolidated

12

Number of employees by gender

1,314

9

Total
Non-consolidated
Consolidated

427

21

1,741
* As of March 31, 2022

Less than 30 years old

30 to 39 years old 40 to 49 years old 50 to 59 years old 60 years old or over
Total
Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Consolidated

Non-consolidated Consolidated Non-consolidated

Number of employees by age
tCO 2/GJ

0 . 057

tCO 2/GJtCO 2/kLtCO 2/kLtCO 2/kLtCO 2/kLtCO 2/t0 . 060
2 . 71
2 . 582 . 492 . 32
3 . 00

0

264

9

385

6

552

6

522

0

18

21

1,741

* As of March 31, 2022
Male

FemaleNon-consolidated

Average age by gender
Average years of service by gender
Total number of employees in management
General manager or higher

Energy usage volume
Unit

FY2020

FY2021

t
kL
kL
kL
kL
thousand Nm3
thousand kWh
GJ
GJ
GJ

2,248
956
0
790
152
93
26,6382,419,962
5,315
907

2,161
1,000
1,289
839
156
983
36,0172,665,334
5,541
956

Consolidated

Non-consolidated

Total / average

Consolidated

Non-consolidated

Consolidated

45
4
8
7

41
13
444
90

40
7
6
2

35
9
28
3

43
5
14
9

39
12
472
93

1

354

4

25

5

379

Section manager or higher(excluding general managers)

EnergyLPG
Gasoline
Heavy oil
Diesel fuelHeating oil
City gas
Electricity
Warm water
Cold water
Steam for industrial use

FemaleNon-consolidated
Consolidated* As of March 31, 2022
Master s / Bachelor s graduate
Male

FemaleMale

Non-consolidated

Recruitment status (new graduates)

00

Vocational school graduate

FemaleMale

FemaleConsolidated

Consolidated

17

0

12

High-school graduate
Male

FemaleNon-consolidated

1

0

Male

Total
FemaleConsolidated

05

NonConsolidated
consolidated

2

0

37

* As of FY2021
Male

FemaleTotal

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

Consolidated

4

71

1

22

5

93

Recruitment status (mid-career)* As of FY2021
Number registered

Number of employees withdisabilities

Other environmental data
Water consumption and water discharge volume
Usage volume
Water discharge volume

Water supply
Well water
Sewage*3
Underground/river*4

Unit
thousand m3
thousand m3

thousand m3

2

FY2020*

FY2021

−

4,941
1,514

−
−

―

−

647

19
* As of June 2021
Childcare leave
Male

Childcare / nursing care leavesystem usage

Nursing care leave

FemaleTotal

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

0

3

1

17

1

NonConsolidated
Consolidated consolidated

20

0

0
* As of FY2021

90

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

89

ESG Data

ESG Data

Childcare work Nursing care Nursing care work Accompaniment
Refresh leave
Volunteer leavetime reduction
leavetime reduction
leave systemsystemChildcare leave
Number ofleave takers

Return rate

Number ofleave takers

Number ofleave takers

Number ofleave takers

Total numberof users

Total numberof users

20

100%

23

0

0

2

0

Main system and usage data

Number ofleave takers

26* As of FY2021

Number of retirees reemployed

Total number of retired
employees

HD

Subsidiaries, etc.

Total

37

0

34

34

Reemployed retiree status* As of FY2021
Male (turnover rate)

Female (turnover rate)

Average (turnover rate)

Non-consolidated

Consolidated

Non-consolidated

Consolidated

Non-consolidated

11.11%

5.60%

0.00%

10.32%

5.88%

Turnover rate

Consolidated

6.48%* As of FY2021

Contract employees

Number of temporary employees
and contract employees

Total

Male

Female

1,876

540

1,336

Temporary employees

Total

68

1,944

Governance data
Composition of the Board of Directors (As of March 31, 2023)
Directors (excluding Directors who are Audit and Supervisory
Committee Members)

Total number of Directors

Overall

Total number of Directors(including Audit andSupervisory Committee
Members)

912

Female1Foreign nationals

1

Female1 (8%)

2

Foreign nationals

1 (8%)

External

Total number of Directors who
are Audit and Supervisory
Committee Members

3

External

3

5 (42%)

External

Directors who are Audit and Supervisory Committee Members

Independent External
Directors

3 (25%)* As of March 31, 2022

Meetings of the Board of Directors / Audit and Supervisory Committee

Average number of paid annual leave days taken

Average number of paid annual
leave days taken* As of FY2021
Number of employees

FY2019FY2020

FY2021

Number of Board of Directors meetings held

14

12

12

13

Number of Audit and Supervisory Committee Meetings held

12

12

12

13

Number of employees coveredby collective bargaining rights(excluding management)

92

633* Limited to the 14 companies that are members of the National Mitsuuroko Labor Union* As of March 31, 2022

Director remuneration (FY2021)

Average annual training time

Total remuneration,etc. (millions of yen)

17.1 hours

Average annual training timeAll employees

Directors (excluding Directors who are Audit and Supervisory
Committee Members)

5,115,997 yen* As of FY2021

New graduate starting salary

Master s / Bachelor s graduate

High-school graduate

250,000 yen (including 1,000 yen book allowance)* Mitsuuroko Vessel Co., Ltd. major career track―

Directors who are Audit and Supervisory Committee Members(External Directors)* As of FY2022

Total investment in human resource
development

Invested amount in human resource development
and skills development per employee

Invested hours in human resource development
and skills development per employee

52,288,144 yen

30,033 yen

17.1 hours

Investment in human resource
development* As of FY2021

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

1,872 hours

Monthly average of overtime
hours worked per employee

17.6 hours

Rate of receiving regular medical
examinations
Rate of smoking
Rate of regular exercise* As of FY2021(External Directors)

100%
32.8%
24.8%
* As of FY2021

Total(External Directors)

Basic
remuneration

368

281

87

9

(14)

(14)

( ―)

(2)

21

21

―

4

(19)

(19)

( ―)

( 3)

390

302

87

13

(34)

(34)

( ―)

(5)

Compliance-related consultations
Compliance consultations

FY2019FY2020

FY2021

Number of consultations

17

12

17

Meetings of the Risk Management Committee
Risk Management Committee

Summary of accidents and disasters

Number of meetings held

Number of deaths due towork-related accidents

Number of severe
accidents

Number of work-related
accidents

Number of traffic
accidents

Frequency rate oflost-worktime injuries

Severity rate

0

0

29

1

2.76%

0.013%* As of FY2021

Number ofapplicable
Directors

Performancelinked stock
remuneration* As of FY2021

Average annual salary

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

FY2018FY2019FY2020

FY2021

5

1

4

3

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

91

FY201811.3 days

Independent Assurance Report/Company Profile

Independent Assurance ReportCompany Profile
As a corporate group that contributes to the creation of more fulfilling lifestyles by focusing on providing
environmentally friendly energy and lifestyle services, Mitsuuroko Group operates in the Energy Solutions
Business, Power & Electricity Business, Foods Business, Living & Wellness Business, Overseas Business,
and Others, which include office equipment leasing, administrative support, and insurance.

Mitsuuroko Groupʼs business areas
EnergySolutions
Business

Support people s lives. Cultivate the future.
Responding to contemporary needs, we continue to remain close to
our customersʼ lifestyles and bring happiness through energy. We areutilizing the Group network to provide energy and fulfilling lifestyles.

Sales of and logistics services for LPG,
city gas, petroleum, housing equipment,
remodeling, new energy equipment, andmore

Next-generation energy that brings comfort and ease to daily life.
We live in an age of shifting from “energy efficiency andPower & conservation” to “energy generation.” As a power generation
Electricity business operator that uses diverse renewable energy sources and a
Business retail electricity provider, we aim to “improve the global environment(reduce CO2 emissions),” “improvement of energy self-sufficiency,”
and “harmonious coexistence with local communities.”

Contributeto fulfilling
lifestyles

Living &Wellness
Business

Exciting the future with the delicious.
We are providing fulfilling lifestyles to everyone by operating abeverage business, shop & restaurant business, bakeries, and cafés.

Connecting to a future that connects daily life.
In addition to development and leasing of residential homes, officebuildings, and commercial facilities, we build fulfilling lifestyles withour customers by creating new business opportunities, and aim forharmony between regions through business.

Delivering sustainable values to local communities.
Overseas The company is involved in the development of energy and social
Business infrastructure in local communities mainly in Asia, and will continue
to develop new businesses in the global market.

OthersResults meeting needs to accelerate business.
We provide total solutions for the present and future of businesses
and powerfully support the streamlining of all businesses.

Manufacture and sale of beverages,
operation of restaurants, stores in facilities
and cafeterias, operation of DELICATERIA(delicatessens directly under Mitsuuroko
Grocery) and voluntary chain stores,
operation of hamburger restaurants, andfresh bakeries and cafés, and more.
Leasing of office buildings, rental
apartments, and other buildings andoperations/management of commercial
complexes

Investments into business and provisionof support outside of Japan, self-storage
businesses, etc.
Leasing of general office equipment,
payment collection, system development,
handling of various insurance, and more

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

Company
nameMitsuuroko Group Holdings Co., Ltd.

Main
business

Holding company (Groupʼs management
strategy and management)

Headquarters

3-1-1 Kyobashi, Chuo-ku, Tokyo 104-0031,
Japan

Date
establishedMay 10, 1926

Capital¥7,077 million

Number of
employees

21 / Consolidated: 1,771 (as of March 31,
2022)

Group
companies

Consolidated subsidiaries: 45 companies (37domestic companies, 8 overseas companies)
Entities accounted for using equity method: 7
companies (7 domestic companies)(as of December 31, 2022)

Energy Solutions BusinessTotal net sales
250,033
Millions of yen

Power & Electricity BusinessFoods Business
Living & Wellness Business
Overseas Business
Others137,840
94,057
13,476
2,206
508
1,943

Assets by segment

Total assets
154,735
Millions of yen

Energy Solutions Business

50,324

Power & Electricity Business

22,292

Foods Business

8,237

Living & Wellness Business

12,591

Overseas Business

26,235

Others3,845

Adjustment

31,207

94

SUSTAINABILITY REPORT 2022

Mitsuuroko Group Holdings Co., Ltd.

93

Foods
Business

Wind power generation, biomass power
generation, mega solar power generation,
electricity wholesale to power companies,
and electricity retail to general consumers

Chibi Maruko-chan©SAKURA PRODUCTION / NIPPON ANIMATION

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

https://www.mitsuuroko.com/en/