Press Release

Notice Regarding Identification of Materiality Issues and Establishment of Non-Financial KPIs
May 31, 2022
Listed exchanges: Prime Market

Listed company name: Earth Corporation

Code: 4985

URL

: https://corp.earth.jp/en/index.html

Representative Director: Katsunori Kawabata, President & Representative Director

Contact: Tsuyoshi Mitsuzuka ,Senior Executive Officer
Director General
Group Management Headquarters

Tel: +81-3-5207-7458

Earth Corporation Group (the “Company”) has identified materiality and established non-financial KPIs inaccordance with the Basic Sustainability Policy for the sustainable enhancement of corporate value and therealization of a sustainable society.
Going forward, the Company will continue to monitor our non-financial KPIs and further disclose information
to further promote our efforts to realize a sustainable business.
1.

Sustainability Basic Policy
Based on the management philosophy that Earth Corporation will ‘Act to live in harmony with the Earth,’
we will collaborate with stakeholders to take on issues related to sustainability, and contribute tocontinuously increasing corporate value in building a sustainable society.

2.

Materiality identified and non-financial KPIs set
The Company have established five materialities and non-financial KPIs for each materiality as key
sustainability issues that have a significant impact on our business and stakeholders.
Details are shown on the next page.

Materiality

Explanation
Mitigation of and adaptation to climate change, the most serious

Responding to Climate Change

2030 Target●Reduces CO2 emissions.

KPI●CO2 emissions reduction：

environmental problem worldwide, may affect our business expansion inCompared to 2020（Scope 1, 2）

the medium to long term. In addition, the increase in average temperatures

・14% reduction（2023）

due to climate change and the intensification of extreme weather events,

・28% reduction（2026）

including changes in precipitation patterns, may affect the overall value

・46% reduction（2030）

chain of our business. We recognize that responding to such climatechange is a management issue related to medium- and long-term corporate●Promote the use of renewable energy sources for electricity.

●Turning to renewable energy：
・Re-energizing the plant[Re-energization rate60%]（2023）

value.

・Re-energizing the Institute [Re-energization rate90%]（2026）
・Re-energizing the Office* [Re-energization rate95%]（2030）*Excluding tenant offices

Consideration for Global
Environmental Issues

Environmental pollution and resource scarcity have become issues on a

●Improve the efficiency of water use in manufacturing, from

●Improving water use efficiency：

global scale from the perspective of creating a sustainable, recycling-R&D to production.

Compared to 2020

oriented society. For us, consideration of environmental issues throughout

・3% improvement（2023）

the value chain is an issue directly related to the sustainability of our・6% improvement（2026）

business. We recognize that our efforts to make effective use of resources

・10% improvement（2030）

and reduce waste will not only reduce our business risk by reducing
environmental impact at every stage of our operations, from raw material
procurement to product design and manufacturing, use, and disposal, but●Aiming for a recycling-oriented society, we make effective use ●Zero emissions of industrial and other waste from factories andof resources.

laboratories：
・Investigation and review of the status of outsourced processing（2023）

will also contribute to the preservation and enhancement of our brand and・Zero emissions in factories and laboratories（2026）

corporate value.

Promoting Sustainable
Procurement

・Maintain zero emissions in factories and laboratories（2030）●Establishing Earth Corporation's ECO standards and●Earth Corporation's Eco Standards Overview：promoting the expansion of environmentally friendly products.

⇒See Appendix

We promote sustainable procurement based on our management●Promoting procurement of environmentally friendly packaging ●Percentage of forest certified paper used：philosophy "We act to live in harmony with the Earth. We recognize thatmaterials.

・Use ratio of 10% or more（2023）

building partnerships with all suppliers and promoting procurement that・Use ratio of 30% or more（2026）

takes human rights, health and safety, and the environment into

・Use ratio of 70% or more（2030）

consideration while maintaining fair, equitable, and ethical relationships willlead to the creation of our corporate value and contribute to the sustainable
development of society as a whole.

Providing products and services
that contribute to safe andFor Earth Corporation's manufacturing, the most important social●Improving the implementation rate of periodic quality audits at ●Periodic quality audit implementation rate：

responsibility is to continue to provide high-quality, safe and reliable

our own factories and those of our contractors in order toproducts and services from the customer's perspective. We recognize thateliminate serious quality-related accidents that could undermine

reliably fulfilling this social responsibility is an absolute prerequisite forcustomer satisfaction and trust.

Maintain 100%（2023、2026、2030）

preserving and enhancing our corporate value and is the cornerstone of ourcorporate value.

comfortable living●Improving the implementation rate of the annual education●Education and training implementation rate：

and training plan to ensure compliance with relevant laws andMaintain 100%（2023、2026、2030）

regulations and to reduce the number of serious accidents
leading to violations to zero.

Based on the Earth Value "Diversity", we aim to realize a workplace that

●Encouraging employees to take annual paid leave.

supports the success of diverse human resources. We recognize that

●Percentage of employees taking paid leave：
Maintain at least 70%（2023、2026、2030）

creating a rewarding workplace where each and every employee can grow●Promoting women's activities, we will increase the percentage ●Ratio of female managers：

Realization of a workplace thatand develop through fair and appropriate treatment that respects humanof women in equivalent managerial positions.

supports the success of diverserights and ensures diversity, while maintaining a workplace environment

human resourcesthat takes into consideration the health and safety of employees, will leadto the creation of long-term value for the Company-2-・10% or more（2023）
・18% or more（2026）
・30% or more（2030）

SDGs

Materiality of Earth Corporation■Material Issues in Sustainability at Earth Corporation
Materiality

Earth Corporation has established five materialities
for 2021 as key sustainability issues that will have asignificant impact on Earth Corporation ' businessand its stakeholders.

Explanation
Climate change, the most serious environmental problem

2030 Target●Reduces CO2 emissions.

worldwide, may affect our business expansion in the medium toCompared to 2020（Scope 1, 2）

long term. For instance, the increase in average temperatures

・14% reduction（2023）

due to climate change and the intensification of extreme

・28% reduction（2026）

weather events, including changes in precipitation patterns, may
affect the overall value chain of our business. We recognize that
Responding to Climate Change

KPI●CO2 emissions reduction：

responding to such ｍitigation of and adaptation to climatechange is a management issue related to medium- and long-・46% reduction（2030）●Promote the use of renewable energy ●Turning to renewable energy：
sources for electricity.

・Energy transition at the plant[Renewable energy utilization rate 60%]（2023）

term corporate value.

・Energy transition at the Institute[Renewable energy utilization rate 90%]（2026）
・Energy transition at the Office*■Materiality Identification Process
Extraction
Challenges
Identify issues
with reference tointernationalframeworks andguidelines in thefield ofsustainability

Materiality
Identification

Importance Rating
CSR/Sustainability
Promotion Committee anddepartment heads
evaluate the importanceof issues in the businessbased on the Company's
direction and prepare adraft materiality.

Category

Environmental pollution and resource scarcity have become●Improve the efficiency of water use in ●Improving water use efficiency：

issues on a global scale from the perspective of creating a

manufacturing, from R&D toCompared to 2020

sustainable, recycling-oriented society. For us, consideration ofproduction.

・3% improvement（2023）

environmental issues throughout the value chain is an issue

・6% improvement（2026）

directly related to the sustainability of our business. We

After interviews withmanagement andoutside directors,
the Board of
Directors deliberates
and approves fivematerialities.

■Earth Corporation's ECO Standards
Targets[Renewable energy utilization rate 95%]（2030）*Excluding tenant offices

Outline of standards

recognize that our efforts to make effective use of resources andConsideration for Global

reduce waste will not only reduce our business risk by reducing

Environmental Issues

environmental impact at every stage of our operations, from raw
material procurement to product design and manufacturing, use,

・10% improvement（2030）●Aiming for a recycling-oriented●Zero emissions of industrial and other waste from factories andsociety, we make effective use oflaboratories：resources.

・Investigation and review of the status of outsourced processing（2023）and disposal, but will also contribute to the preservation and・Zero emissions in factories and laboratories（2026）

enhancement of our brand and corporate value.

・Maintain zero emissions in factories and laboratories（2030）●Establishing Earth Corporation's ECO ●Earth Corporation's Eco Standards Overview：
standards and promoting the expansion ⇒See Appendix

environmentallyfriendlyof
products.
We promote sustainable procurement based on our management of●Promotingprocurement●Percentage of forest certified paper used：philosophy "We act to live in harmony with the Earth. We

environmentally friendly packaging

・Use ratio of 10% or more（2023）

recognize that building partnerships with all suppliers andmaterials.

・Use ratio of 30% or more（2026）

promoting procurements that take human rights, health andPromoting Sustainable
Procurement

・Use ratio of 70% or more（2030）

safety, and the environment into consideration while maintaining
fair, equitable, and ethical relationships will lead to the creationof our corporate value and contribute to the sustainable

Raw materials

Increase product concentration to reduce CO2 emission

development of society as a whole.

from packaging and transportation
For Earth Corporation's manufacturing, the most important social ●Improving the implementation rate of ●Periodic quality audit implementation rate：

Development of refill/replacement containers andCO2 emissions
reduction

responsibility is to continue to provide high-quality, safe andmultiple-pack productsContainers & Use of materials derived from plant-derived andPackaging
non-fossil raw materials

Providing products and services
that contribute to safe andReduction of resin usage by simplified packaging

recognize that reliably fulfilling that is an absolute prerequisite

in order to eliminate serious quality-for preserving and enhancing our corporate value and is therelated accidents that could undermine

cornerstone of our corporate value.

customer satisfaction and trust.
the annual education and training plan Maintain 100%（2023、2026、2030）
to ensure compliance with relevantlaws and regulations and to reduce theResources

number of serious accidents leading toContainers & Use of recycled materials
Packaging

Action for waste

Use
Disposalviolations to zero.
Based on the Earth Value "Diversity", we aim to realize a●Encouraging employees to take

●Percentage of employees taking paid leave：

workplace that supports the success of diverse humanannual paid leave.

Maintain at least 70%（2023、2026、2030）

resources. We recognize that creating a rewarding workplace●Promoting women's activities, we will ●Ratio of female managers：

Realization of a workplace that

where each and every employee can grow and develop throughincrease the percentage of women in

・10% or more（2023）

supports the success of diverse

fair and appropriate treatment that respects human rights andequivalent managerial positions.

・18% or more（2026）

human resources

ensures diversity, while maintaining a workplace environment

Use of Forest Stewardship Council certified paper
Longer life of products and equipment
Improving drainage water management and quality

manegement and water
quality

Maintain 100%（2023、2026、2030）●Improving the implementation rate of ●Education and training implementation rate：

comfortable living

Raw materials Use of sustainable (recyclable) raw materials

conservation

periodic quality audits at our own

reliable products or services from the customer's perspective. We factories and those of our contractors

Improve product component and design to reduce theeffort of waste-sortingthat takes into consideration the health and safety of employees,
will lead to the creation of long-term value for the Company.

・30% or more（2030）

SDGs