KYUDEN GROUP INTEGRATED REPORT 2023

Table ofContents

1 Overview of the Kyuden Group

2 Value Creation Story

3 Strategy and Performance

4 Creating Value through Business

5 A Foundation for Creating Value

6 Data Section

09

Materiality

Materiality
In April 2022, the Kyuden Group identified key management issues for realizing sustainability managementthat simultaneously creates “social value” and “economic value” through its businesses as materiality.
We are continually revising materiality in light of changes in social conditions and the businessenvironment. In April 2023, we partially revised our ideal state and key issues pertaining to materiality.

For details on the process of identifying materiality, please visit the following page:

Revisions to ideal state and key issues (April 2023)· Reorganized ideal state and related key issues of the Group’s human capital strategy after multiple deliberations by senior
management· Set key issues pertaining to DX as part of materiality for “Creating Value through Business” and “A Foundation for CreatingValue” in light of the increasing importance of DX from both perspectives of transformation in society and manufacturing,and transformation of business composition and work processes(Specific revisions are listed in blue in the below table)

https://www.kyuden.co.jp/english_index.html Home > For investors > Information on our Sustainability initiatives > Materiality

Materiality

Ideal StateKey Issues■L owering the Carbon Intensity of and Decarbonizing

Materiality and key issues

Leading the Way towarda Decarbonized Society

Achieving Carbon Negativity
by 2050

Implementing Continuous
Improvements in Energy
Services

Contributing to a Sustainable
and Comfortable Future forOur Customers

Co-creating a Smart andVibrant Society

Promoting Transformation inSociety and ManufacturingTogether with the Kyushu
RegionPromoting Growth, Success,and Diversity of Human
CapitalFostering an organizational
culture that enables growthfor each person and theorganization, thereby creating
future value

For the Environment
Creating Value through BusinessLeading the Way towarda Decarbonized Society
Achieving Carbon Negativity
by 2050For Our
Customers

Implementing
Continuous Improvements
in Energy Services

Co-creating a Smart
and Vibrant Society

A Sustainable and Comfortable
Future for Our Customers

Promoting Transformation inSociety and Manufacturing Together
with the Kyushu Region

For Communities

Energy Sources (development of renewable energy asa primary power source, safe and stable nuclear power
operation, overseas business, etc.)■ Promotion of Electrification■ Promotion of Energy Conservation■ Reduction of Environmental Impact■ Energy Policy Recommendations and Involvement■ Stable Supply of Energy■ Affordable Energy■ Solutions Based Around Energy Services■ Realizing a Smart Society■ Regional Vitalization■ Creating Safe, Secure and Comfortable Spaces to Live■ Respect for Human Rights■ Promotion of Value Co-Creation and Innovation■ Promotion of Diversity and Inclusion■ Prioritization of Health and Safety■ Securing and Developing Human Capital■P romotion of (DX) Digital Transformation(business framework and process transformation, etc.)
Foundation for
Creating Value

Promoting Growth, Success, and Diversity of Human Capital
Fostering an organizational culture that enables growth for each person
and the organization, thereby creating future value

Strengthening Governance
Establishing Good Governance Practices to Support Our Growth■ Improving Effectiveness of Corporate Governance

For Our
Employees andPartners■ Strengthening Risk Management System

Strengthening Governance

Establishing Good Governance
Practices to Support OurGrowth■ Ensuring Compliance■ Strengthening Supply Chain Management■ Ensuring Information Security■E nhancing Stakeholder Engagement(building trust with stakeholders, etc.)■ Improving and Strengthening our Financial Structure