November 25, 2021
Name of Company
KAG A EL ECTRON ICS CO., LT D.
Representative
Ryoichi Kado, President & COO(Stock Code: 8154 Tokyo Stock Exchange, First Section)
Eiji Kawamura, Managing Director
Contact
Head of Administration Headquarters
Tel: 03-5657-0111

Notice Regarding the Formulation of Medium- to Long-Term
Sustainability Management Plan
Based on "Promotion of SDGs Management," one of the four basic policies of Medium-Term
Management Plan 2024 announced today, Kaga Electronics Co., Ltd. has formulated a Mediumto Long-Term Sustainability Management Plan, with details as follows.

1. Sustainability Policy
Under our corporate philosophy of "Everything we do is for our customers," the KagaElectronics Group seeks to achieve both a sustainable society and sustainable growth of theGroup.
Toward this purpose, we will respect dialogue with customers, business partners,
shareholders, investors, employees, local communities, and all other stakeholders, based on
our Basic CSR Policy, Environmental Policy, and Action Guidelines. We will work to increase ourcorporate value as we play an active role in achieving a sustainable society.
(1) We will tackle environmental issues through our business activities
Through our business activities, we will take action to cut CO2 emissions, reduce waste, andpromote reuse. At the same time, by providing environmentally considerate products andservices, we will contribute to bringing about a society that values the global environment.
(2) We will respect human rights and develop human resources
We will respect the human rights of all stakeholders, regardless of gender, age, nationality,
social status, disabilities, or other personal attributes. We will develop work environments inwhich diverse employees can work in safety and health, both physically and mentally, and willdevelop personnel systems and education and training systems that allow these employees tomaximize their individual abilities. We will further work to develop human resources who willtake on the challenge of innovation.
(3) We will work to build mutual trust with society
We will work to be a company that earns the trust of society by observing laws andregulations, by strengthening our governance structure, and by sincerely engaging in faircompetition, the provision of high-quality products and services, timely and appropriate
information disclosure, and other corporate activities.

12. Sustainability promotion structure
The Kaga Electronics Group views the promotion of sustainability as a key management issue.
We have established an SDGs Committee chaired by the President and COO of Kaga Electronics
Co., Ltd., and, under this committee, have created working groups for "Environment,""Society," and "Governance." In this way, we have established a management structure that
promotes sustainability across the Group.
Under commitment by top management and collaboration among business divisions, we act
through these working groups to formulate policies, measures, and goals that address ESG
issues, to manage progress, and to otherwise promote sustainability within the Group as awhole.
３． Identifying Materiality
The Kaga Electronics Group is committed to seriously addressing a variety of issues relevant
not only to itself but also communities around the world and thereby living up to theexpectations of society. In line with this commitment, the Group has employed four
perspectives— Environmental (E), Social (S), Governance (G) and Business (B)—to identify
priority issues that are deemed to exert significant impact on its business operations, as listed
below. Through its efforts to tackle the materiality of these issues, the Group will practicecorporate activities aimed at contributing to the realization of a sustainable society, with theaim of further improving its corporate value.
Materiality

ES

G

B

Create a clean global
environment

Create an inclusivecompany as well as
an affluent society

Create a sustainable
management baseRealize sustainablebusiness growth

Changes in the socio-economicenvironment• Growing seriousness of global
warming and otherenvironmental problems• Urgent call for carbon neutrality• Changes in social structure as
we move toward thepopularization of the newnormal• Human resource shortages
attributable to a low birthrate
and an aging population

Our initiatives• Provide products and services
designed to help resolve
environmental and energy
issues• Continue initiatives to reduce
the environmental burden• Promote workforce diversity
and innovative work styles tobetter adapt to the new normal• Develop human resources bypassing down and updating
KAGAism• Public calls for more robust
corporate governance• Further strengthen corporategovernance and compliance• Growing need for businessresilience against changes in
the operating environment• Thoroughly practice a profitfocused management approach• Progress in digitaltransformation• Provide products and services
that contribute to the transition
to a digital-driven society• Coming of a “super-smart”
society due to thepopularization of ICT, such as
IoT and AI• Intensification of global
competition2• Create new businesses aimed
at helping

4. Medium- to long-term sustainability targets and major KPIs
Key themes

Achievement of shift
to 100% renewableenergyEIssues toaddress/examine• Adoption of renewableenergy at domestic
sales offices• Adoption of renewableenergy at domestic
manufacturing sites• Adoption of renewableenergy at overseas
manufacturing sites

Shift to electricity forcompany-owned
vehiclesDiversity and humanresource
management

S
Work–life
management andenhancement of
productivity

Restructuring thegovernance structure
in response to therevision of theCorporate
Governance Code andthe reorganization ofTokyo Stock
Exchange
G
Furtherstrengthening thesupervisory andoversight functionsof top management
over businessexecution• Switch to electricvehicles for domestic
sales vehicles (EV, HV,PHV, FCV)
• Ensuring diversity incore human resources(Women, foreign
nationals, mid-careerhires)• Initiatives to employ
elderly workers andpersons with disabilities

Medium-term targets
2024: 40% (1%)
By 2024: Information
gathering/analysis anddetermination of policy
In-house power
generation/external
procurement
Solar panel/biomass
power
generation/renewableenergy businesses

Long-term targets
2030: 100%
2030: 50%
2050: 100%

2030: 30%
2050: 100%

2024: 85% (78.5%)

2030: 100%

Percentage of female
new graduates ingeneral positions
2023: 30% (5.8%)
Percentage of women in
management positions
2024: 15% (13.3%)

Percentage of female
new graduates ingeneral positions
2028: 40%
Percentage of womenin management
positions
2029: 17%

• Enhancement ofprograms such as
childcare/family-careand telework

2022: Implementationof review• Acquisition of certification 2023: Certification
as a Health andProductivity Management
Organization

2025: Certification byoutside party
2024 onward:
Continuation ofcertification• Independent Outside
Directors: at least 1/3• Establishment ofNomination andCompensation
Committee

June 2021: Performed• Diversification of theBoard of Directors

By June 2022:
Determination of policy• Full compliance with
Corporate Governance
Code for Prime Market

November 2021:
Performed

Setting of targets inline with next
Corporate Governance
Code revision• Adoption of delegationbased executive officer April 2022: Enactmentstructure• Transition to structure
By March 2023:of company with
Determination of policy
committees*Numbers in parentheses represent current values
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