F O U N D AT I O N

Promotion ofESG Management

Basic Policy

The Toho Titanium Group will contribute to the development of a sustainable society by strengthening ESG initiatives
and realizing solutions to various social issues through corporate activities.

and enhance our corporate value over the long term.

Promotion Structure

Based on our Group's Management Philosophy, our basic policy on

Board of Directors

management is to work toward solving social issues involving theExecutive Committee

company and our stakeholders by engaging in business activities fromESG Promotion Committee

the perspectives of the environment (E), society (S) and governance (G),ESG Promotion Subcommittee

so that we can contribute to the sustainable development of society

EWorking GroupGWorking Group

5．重要課題（マテリアリティ）とその取組み

ESG dissemination activities

3．ESG推進の必要性

In FY2022, we provided an opportunity to directly explain to the general managers of eachdepartment and GM class based on the materials created by the ESG Promotion Department. The社外秘
社外秘

社外秘
ESG活動に優れた企業＝持続可能性が⾼く、⻑期的に成⻑が期待できる企業
ﾏﾃﾘｱ
取組ﾘﾃｨ

内容

目標 及び KPI

2023年度活動

ESGで評価される時代に・CO フリー電力契約及びCN都市ガス
目標：2030年CO2排出量2018年度比40％削減、2導入によるCO2排出量削減

企業のESG情報を収集・分析して運⽤機関に提供するESG評価機関が急増・廃熱の有効利用、高効率設備更新に2050年カーボンニュートラル達成
脱炭素
よるCO2排出量削減
国内外で600以上化社会・新製錬実用化に向けた改良プロセスのKPI ：CO 排出量2018年度比19％以上削減
2の実現

評価機関 例①FTSE (英)概要 量産技術開発促進に向けた取組みの推進（2018年度25.7万t）

・省エネ、省人化、作業環境改善
・新電源、エネルギー構想立案と検討

気候変動、ダイバーシティ、ジェンダーなど
ESG説明資料
幅広いESGテーマで評価
気候変動、⽔セキュリティ、森林減少リスクといった－ESGとは？－環境側⾯を重視

環境･安全性に配慮した製品の③MSCI (⽶) 提供
地球環境

目標：環境･安全性に配慮した新素材開発、技術改良、新規用途開発による複数製品化

contents of the materials include the concept of ESG and SDGs, the background and necessity

②CDP
保全
E (英)

of ESG proliferation, our company's materiality and initiatives, and our organizational structure. In

産業カテゴリごとに評価
・茅ヶ崎・若松の廃カーボン電極再利用
目標：2040年廃棄物最終処分量2020年度比ESG推進部
オシノカーボンへの有価引取り継続
業績に重⼤なリスクをもたらすESG課題にフォーカス④Sustainalytics
持続 (蘭) 50%削減、サプライチェーン全体での・廃プラスチックの再資源化を全社展開

FY2023, we will make a video of this content and disseminate it throughout the company.

Materialities

SWorking Groupへの貢献

可能な・WEBTi®パイロット設備の操業で抽出された課題を反映、量産設備仕様を確定、投資判断
・ノンフタレート触媒の高性能品（高活性且つ高立体特異性）をパイロット設備で試作、KPI ：量産設備の初期投資仕様確定
プラント設備へのスケールアップ検討
ノンフタレート触媒の高性能化計画
リスクの⼤きさと管理体制の視点から（パイロット規模）進捗率80％以上

廃棄物再利用
2023年5月作成

・若松工場汚泥最終処理を資源化できる

資源
投資家以外のステークホルダーにも利⽤され始めており、社会全体が処分先の探索（目標資源化率25%）
活用
KPI ：最終処分量4,500t
・処理業者と木製パレットの有価対応を検討
ESG情報を活⽤して企業を評価する時代に変わりつつある（2020年度比約6％削減）以下（目標資源化率50%）

今後の課題
ESG評価機関からの情報開⽰要請に応えていくこと

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FY2023 materials for ESG dissemination
activities for all employees

In line with our defined materialities, we will work to resolve important issues surrounding our company and our stakeholders,
contribute to the sustainable development of society, and aim to enhance our corporate value over the long term.
Materiality

E

Contribution
to global
environmental
conservation

Contribution
to society

Solidifying ourmanagementfoundation

Target (2030 - 2040)

Catch-up Strategy and Major Measures for FY2023-2025

To realize a decarbonizedsociety

Reduce CO2 emissions by 40% from the 2018 level by 2030
and achieve carbon neutrality by 2050

• D evelopment of new titanium smelting technology, CO 2-free electricity,
introduction of carbon-neutral LNG, etc.
*2025 CO2 emissions: 190,000 t/y (-25% compared to 2018)

Development ofenvironmentally safe
products

Develop new materials, technological improvements, and new
applications for multiple products with consideration for theenvironment and safety• C ommercialization of WEBTi• C onsider commercialization of new materials other than WEBTi

Shareholders
and Investors

p.33

STAKEHOLDERENGAGEMENT

Sustainable resource
utilization

Reduce final waste disposal volume by 50% by 2040
compared to FY2020. Reuse waste materials throughout thesupply chain• R euse waste throughout the supply chain• P romote recycling of raw materials and effective use of waste

Respect for human rights inthe supply chain

Respect the human rights ofall those involved in the supply chain• S urvey and audit suppliers' human rights initiatives• R aise awareness of human rights among all employees

Coexisting with localcommunities

Support social contribution
and community revitalization in each region• S upport social contributions and regional revitalization at each businesssite (supporting local sports and cultural activities, joint volunteer activities
with nearby schools, and accepting plant tours)

Eliminate serious industrial accidents
Create healthy work environments• M aintain JIS Q 45100• D evelop various activities related to industrial health andsafety based on JIS Q 45100

our company's survival andcommitted to understanding theEnsure a diverse and inclusive workplace• S et the ratio of women in management positions to 20% or more• M aintain a ratio of women at 20% or more among new graduatesand mid-career hires

Diversity and inclusion

Appealing
workplace

29

Item

Improving occupational healthand safety in the workplace

SG

Related SDGs

Creating comfortable workenvironments

Realize vibrant work environments• E stablishing a personnel system suitable for work style reforms• Improve treatment conditions• Identification and implementation of areas for improvement throughcontinuous implementation of employee satisfaction surveys

Next-generation humanresource development

Create a foundation to encourage personal growth of
all employees and establishing education• A ctively recruit highly-skilled human resources with specialized skills• D evelop executive and core human resources through reshuffling basedon succession plans

Strengthening corporate
governance

Resolutely apply the CG Code• F ormulate and disclose transition plans for decarbonization• R espond appropriately to disclosure requests

Ensuring thoroughcompliance

Achieve zero compliance complaints• R aise employee compliance awareness• Identify and recognize workplace-specific issues

Risk management promotion

Establish and appropriately implement the company-wide risk
management system• E stablish and implement company-wide risk management• P DCA through the Risk Management Committee• O ptimize asset efficiency

I N T E G R AT E D R E P O R T 2 0 2 3Customers

At the Toho Titanium Group, wep.37

believe that building relationships

Businesspartnersof trust with stakeholders throughdialogue is indispensable forsustainable development. We areexpectations and desires of ourp.39

stakeholders and reflecting them

Local community& societyin our corporate activities.

Employees
and families

p.42

I N T E G R AT E D R E P O R T 2 0 2 330

F O U N D AT I O N

Shareholders
and Investors

We aim to be a company that istrusted by all stakeholders, including
shareholders and investors, and strive
to disclose information promptly,
appropriately, and fairly, and toproactively disseminate information.

Customers

Businesspartners

Local community& society

Employees
and families

31

Our Group strives to provide
products and services that prioritize
quality in order to continue receiving
the trust of our customers. We
also strive to improve customer
satisfaction by accurately
understanding customer needs andcontinually improving our products
and processes.

In order to achieve the procurementof purchased goods that meet thestandards of "quality", "cost", and"delivery time", our Group conducts
material procurement activities withthe aim of building relationships
of mutual trust with our business
partners and building better
partnerships.

At the business sites of our Group in
various locations, we are working torevitalize local communities and support
the generations who will lead the future,so that we are able to develop together
with society as corporate citizens, while
striving for harmony with everyone asmembers of the local community.

Our Group respects the individuality ofeach employee and strives to develop
their abilities. At the same time, in orderto create an attractive work environment,
we are implementing various humanresources systems, including support forwork-life balance and promotion of women
empowerment, as well as measures toactively develop human resources who will
pave the way for the future of our company.

I N T E G R AT E D R E P O R T 2 0 2 3

Stakeholder Expectations/Interests (Examples)

Opportunities forCommunication

Important Value Co-created with Stakeholders(examples of value provided)• Improvement of corporate value• Suitable stock price• Stability of financial foundation• Increase in ROE and ROIC• Profit improvements• Safe operations• Promotion of ESG, SDGs
• Providing timely information• Holding a regular general meeting of shareholders• Holding a briefing session for investors• Conducting individual IR meetings• Publication of business reports, Integrated Reports /CSR reports• Publication of company introduction pamphlets• Distribution of information via website, etc.
• Distribution of news releases through mass media
Disclosure Policy• Stock price improvement• Stable dividend• Providing high quality products and services• Stable supply, thorough supply chain management,
legal compliance• Promotion of environmental load reduction• Safe operations• BCP compliance• Fair price• Capital investment• Daily communication through Sales Department• Display at exhibitions• Explanation through company introduction videos
and pamphlets• Distribution of information via website, etc.
• Distribution of news releases through mass media• Contributing to reducing environmental impact andCO2 emissions• Improving
trust through regular engagements with customers throughsales activities• Increasingawareness through exhibitions of our products and technicalinformation• Improving
customer satisfaction by transferring the maximum possible
load during product delivery• Ensuringquality by conducting quality audits of raw material suppliers• Stable
operations through thorough process and logistics management• Expansion of the fourth catalyst plant• Start of construction of the Nickel Powder Plant No. 5

Quality Standard - ISO9001/JIS Q 9100

• Fair, just, and transparent transactions• Thorough supply chain management and legal compliance• Safe operations• Business continuity• Promotion of environmental load reduction• Procurement of product materials, supplies, etc.
• Implementation of quality audits, process audits, etc.
• Initiatives to reduce environmental impact and CO2emissions• Co-existence and co-prosperity with the local community• Contribution to regional development• Safe operations• Promotion of environmental load reduction• Disaster prevention response• Dialogue with local residents• Interacting with local citizens through plant tours andsoccer clinics• Distribution of information through news releases• Notifications and reports to government agencies• Contributing to reducing environmental impact andCO2 emissions• Building a response manual for accidents anddisasters• Improving trust from local communities• Promoting understanding of safety and security through plant tours
for local residents• CO2 reduction during product delivery• Ensuring safety and security and business continuity in the eventof an accident or disaster• Safety first• A work environment where one can work energetically(health, respect for human rights, equal opportunities,
ensuring rights to working conditions based on laws andregulations)• Utilizing a wide range of human resources (diversity &inclusion)• Promotion of environmental load reduction• Improvement of education, welfare, and other varioussystems• Delivering the President's message during New Year's
ceremonies, and other events• Distribution of information through company
newsletters and intranet• Holding Group management meetings• Consultations with labor unions• Operation of compliance hotlines• Maintaining the work environment• Ensuring welfare benefits• Health management• Improving

the work environment under the policy of putting safety first• Employeehealth management through medical checkups and mental
health care at least once a year
• SharingGroup intentions by disseminating business status andpolicies to all employees• Negotiations
and discussions held every month on various
management topics and employee working conditions• Improving
the ratio of women in management positions and the rateof men taking childcare leave• Improving
communication through dormitories, company housing,various events, recreation, etc.

Green procurement guidelines, responsible mineral sourcing• Fair business transactions through the execution of sales contracts,specifications, etc.
• Avoiding procurement risks by purchasing multiple raw materials• Stabilizing business through sustainable transactions• Continuing to conduct regular supplier quality audits• CO2 reduction during product delivery• Optimization of prices commensurate with manufacturing costs

I N T E G R AT E D R E P O R T 2 0 2 3Ident ify ing Materiality

STAKEHOLDER ENGAGEMENT32