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Governance

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The METAWATER Group is strengthening the entire group’s risk management structure including information security. In addition, weare committed to promoting Business Continuation Management (BCM) as an entire group to continue business operations even in theevent of various unforeseen situations.

Corporate governanceCorporate governance organization

Basic concept of corporate governance

METAWATER Group opts for an arrangement of a Board of Auditors as an organization design based on the Companies Act. The Board of
Directors makes important decisions related to management and supervises business execution. At the same time, auditors and the Board
of Auditors independent from the Board of Directors audit the status of directors' execution of their duties and the like. For the purpose of

So that we can grow sustainably with society, we are committed to improving our internal control based on our corporate mission.
We are aiming to be a group trusted by society through our continuous contribution to it while meeting the expectations of our
stakeholders including customers, local communities, shareholders and investors. To realize this aim, we are engaged in improving
the following aspects of corporate governance.

strengthening independence, objectivity, and accountability for the function of the Board of Directors related to the nomination of candidates
for directors and auditors, determining renumeration for executive officers and directors, etc., a Nomination and Renumeration Advisory
Committee has been established under the Board of Directors. Furthermore, METAWATER Group has introduced the Executive Officers System
to accelerate management-related decision-making, reinforce functions to monitor business execution, and clarify responsibility. Additionally,a CSR Committee has been arranged as an organization to determine the important activities, systems, organizations, and the like of theGroup to ensure compliance with regulatory requirements and corporate ethics. The position and role of each function are mentioned below.

2. Promotion of compliance and reinforcement of internal control functions are realized to establish an organization that can sustainably enhance
corporate value.
3. We disclose information in a fair, objective and appropriate manner and at an appropriate timing. Further, we communicate proactively with our
stakeholders.

As a basic policy of the METAWATER Group based on the rules of the "Corporate Governance Code" (hereinafter "CG Code") stipulated by the Tokyo Stock Exchange on June 1, 2015, the Group established the "Basic
Policy on Corporate Governance" (hereinafter "CG Basic Policy") on November 27, 2016 (updated November 29, 2018), and disclosed the policy on the corporate website.
https://www.metawater.co.jp/csr/responsibility/pdf/governance.pdf●

Framework of directors*Only (Supplementary Rule 4-2-1) is the Explain Item in the “Report on
Corporate Governance” (hereafter “CG report”) submitted on June 23, 2020.
The reason for non-implementation (Supplementary Rule 4-2-1) (from CG Report)
The current remuneration for standing directors is comprised of fixed
remuneration based on their post and a bonus linked with the company's
performance in the applicable business year. We will continue reviewing
the percentage of remuneration linked with mid-term or long-term
performance and the appropriate setting of percentage for cash and thecompany's own stock as remuneration.

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METAWATER REPORT 2020

November 2015

June 2016

47th ordinary general meeting of shareholders●

Established “Basic Policy on Corporate Governance”●

Added one independent director (outside director)●

Disclosed evaluation on effectiveness of the Board of Directors*in compliance with CG Code (Rule 4-8)
*in compliance with CG Code (Rule 4-11-3)

June 2017

November 2018
November 2018

●
●

●

●

President and Representative Director
Report/Proposal

Appointment/
Dismissal

Board of Auditors Meeting

Audit
Supervision/Appointment/
Removal/Approval

Accounting Auditor
Cooperation

ReportAuditing Office

ApprovalInternal audit

Report/Proposal

Approval

Board of Directors Meeting
The Board of Directors meetings, held on a monthly basis and also as needed,
function to supervise management and decision-making. The Board of
Directors is comprised of nine members including five outside directors. The
status of business execution by directors, including the representative director,
is monitored by auditors, where, as a basic rule, three auditors attend theBoard of Directors meeting and express their opinions whenever necessary.

Response to Corporate Governance CodeMETAWATER was listed on the First Section of theTokyo Stock Exchange Market in December 2014. As
the CG Code was established in June 1, 2015, the group
implemented the measures stated on the right. We arecommitted to moving forward with corporate governancealso in future.

Report/Submission

Appointment/
Dismissal/Approval

Business divisions/Group companies

One-third of the Board of Directors are independent directors (outside directors)(3 out of 9 directors are independent directors)

The METAWATER Group stipulates criteria for the independence of outside directors in
the Basic Policy on Corporate Governance. The number of outside directors satisfying thecriteria is three, and these directors were designated as independent directors together
with two outside auditors in the report to the Tokyo Stock Exchange.

Consultation

Nomination and
Renumeration
Advisory Committee

CSR Committee

The majority of the Board of Directors members are outside directors now(5 out of 9 directors are outside directors)

2

Board of Directors Meeting
Advice/Proposals

Report/submission

ReportWe have five outside directors of nine directors to ensure management transparency andsoundness.
●

Appointment/
Dismissal/Approval

Report/Submission

Management Meeting

Approaches to improve corporate governance1

General meeting of shareholders Meeting

METAWATER Group’s ESG

1. The Board of Directors and the Board of Auditors are arranged and independent directors are designated to reinforce the organization forsupervising our business with the purpose of creating corporate management with excellent reliability and transparency.

One independent director (outside director) was added
Held a meeting by independent outside director
“Basic Policy on Corporate Governance” revised in accordancewith partial revision of CG code
Established Nomination and Renumeration Advisory Committee

Board of Auditors Meeting
The Board of Auditors meetings are held on a monthly basis and function
to monitor management. The Board of Auditors is comprised of threemembers including two outside auditors. Auditors are selected from thosewith expertise and experience regarding our business as well as in legal
and financial affairs. The Board of Auditors determines the audit policies
and scope of work for each auditor, as well as specific action plans andschedules, and monitors the status of business execution by directors.
Nomination and Renumeration Advisory Committee Meeting
The Nomination and Renumeration Advisory Committee was establishedunder the Board of Directors as a voluntary advisory body that functions
as both a nomination committee and renumeration committee. Thesemeetings are held as necessary, deliberating on matters related tothe appointment and dismissal of directors, auditors, and executive
officers, as well as renumeration for directors, executive officers, etc., in
consultation with the Board of Directors, and also providing advice andproposals to the Board of Directors. The committee is comprised of six
members total, including the Director and President, three independent

outside directors, and two independent outside auditors, with anindependent outside director selected as the chairperson.
Executive Officers System
The Executive Officers System has been introduced to acceleratemanagement-related decision-making, reinforce functions to monitor
business execution, and clarify responsibility. The executive officers arecomprised of fifteen members including four directors and executive officers.
Their term of office is one year and their appointment, reappointment, anddismissal are determined at Board of Directors meetings.
Management Meeting
The Management meetings consist of fifteen executive officers and, asa general rule, are held twice a month. In these meetings, reports are
given and discussions are held regarding important management-related
matters stipulated in our official competence rules. Standing auditors
attend the meeting and express opinions as necessary, monitoring thestatus of business execution by the President & Chief Executive Officer aswell as those executive officers below him.
CSR Committee Meeting
CSR Committee meetings are held twice a year, with a function ofpromoting compliance and reinforcing internal control. The CSR Committee
has seven subordinate working groups under it. The committee is comprisedof fifteen members, including the chairperson and fourteen committee
members. Details of the CSR Committee's activities are reported to theManagement Meeting and Board of Directors Meeting as needed.

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Corporate governanceInterview with Outside Director

Outside Director’s roles
1 ‌Provide advice to promote the Company’s sustainable growth and improve medium- and long-term corporate value based on own
knowledge and insights, and supervise the execution of business by the Company
2 ‌As a position that is independent from the management, receive opinions from stakeholders including minority shareholders, andappropriately reflect those opinions at Board of Directors Meetings
3 ‌Appropriately manage risks including conflicts of interest arising from the execution of business by leveraging internal and external

We strive to reflect external points of view inour efforts to improve corporate governanceand further develop our business.
Outside Director

Keiichiro Sueknowledge and insights, as well as experience—— What are your overall impressions regarding
the management of the Board of Directors, state ofdiscussions, etc.?

Reasons for selection by individual
Reasons for selection

SusumuSakabeOutside Director

Mr. Sakabe held important positions at NGK INSULATORS, LTD. and has a wealth of management experience as well as a depth ofexpertise in the areas of finance and accounting. Considering that he has the required skill set to supervise the execution of the businessof the Company by leveraging his management experience and expertise, we appointed him as an Outside Director of the Company.

Motofumi
MatsumuraOutside Director

Mr. Matsumura held important positions at Fuji Electric Co., Ltd. and has a wealth of management experience as well as a depth ofknowledge in a broad range of business areas. Considering that he has the required skill set to supervise the execution of the businessof the Company by leveraging his management experience and expertise, we appointed him as an Outside Director of the Company.

Outside Director

Keiichiro Sue

Kaoru
AizawaFumikoKosao

Kimihiko
UemuraKazuo
Takimoto

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Independent
Director

Outside Director
Independent
Director

Outside Director
Independent
Director

Outside Auditor
Independent
Director

Outside Auditor
Independent
Director

METAWATER REPORT 2020

Mr. Sue is a lawyer and is well versed in international legal affairs including international commercial relations. He
also held the position as an outside director of another company and has balanced and broad perspectives of industries
related to the Company. Although he has no direct management experience in a company except as an outside director,
we consider him to have the required skill set to supervise the execution of the business of the Company by leveraging
his experience and expertise, and accordingly appointed him as an Outside Director of the Company.
Because he meets the standards set by the Company for Criteria for Independency of Outside Directors and also fulfills
the requirements of an Independent Director stipulated by the Tokyo Stock Exchange, we consider him to have nopotential conflicts of interest with general shareholders, and have designated him as an Independent Director.
Mr. Aizawa held important positions, including Representative Director of Nitto Denko Corporation. He also hasa wealth of management experience gained through his position as an outside director of another company andpossesses balanced and broad perspectives of industries related to the Company. We consider that he has the required
skill set to supervise the execution of the business of the Company by leveraging his experience and extensive
knowledge. Accordingly, we appointed him as an Outside Director of the Company.
Because he meets the standards set by the Company for Criteria for Independency of Outside Directors and also fulfills
the requirements of an Independent Director stipulated by the Tokyo Stock Exchange, we consider him to have nopotential conflicts of interest with general shareholders, and have designated him as an Independent Director.
Ms. Kosao is well versed in corporate accounting with expertise in the area of taxation and has broad perspectives gained
through her position as an outside director of another company. Although she has no direct management experience in a company,
except as an outside director, we consider that she has the required skill set to supervise the execution of the business of theCompany by leveraging her experience and expertise. Accordingly, we appointed her as an Outside Director of the Company.
Because she meets the standards set by the Company for Criteria for Independency of Outside Directors and fulfills therequirements of an Independent Director stipulated by the Tokyo Stock Exchange, we consider that she does not have potential
conflicts of interest with general shareholders, and have designated her as an Independent Director.
Mr. Uemura is a lawyer and is well versed in corporate legal affairs including the Companies Act. With a wealth of experience
gained through his position as an outside director of another corporation, he has balanced and broad perspectives of industries
related to the Company. We consider him to have the required skill set to supervise the execution of the business of the Company
by leveraging his experience and high level of independence, and accordingly appointed him as an Outside Auditor of the Company.
Because he meets the standards set by the Company for Criteria for Independency of Outside Directors and also fulfills therequirements of an Independent Director stipulated by the Tokyo Stock Exchange, we consider him to have no potential conflicts ofinterest with general shareholders, and have designated him as an Independent Director.
Mr. Takimoto is well versed in corporate taxation as a certified public accountant and tax accountant. With a wealthof experience gained through his position as an outside director of another company, he has balanced and broad
perspectives of industries related to the Company. We consider him to have the required skill set to supervise theexecution of the business of the Company by leveraging his extensive experience of finance and accounting, as well as
high level of independence, and accordingly appointed him as an Outside Auditor of the Company.
Because he meets the standards set by the Company for Criteria for Independency of Outside Directors and also fulfills
the requirements of an Independent Director stipulated by the Tokyo Stock Exchange, we consider him to have nopotential conflicts of interest with general shareholders, and have designated him as an Independent Director.

—— Please tell us about your role as an Outside
Director.
I was asked to serve as an Outside Director because I was highly
evaluated for my overseas experience, including dealing with WTO
disputes involving legal disputes over trade issues in each country’s
systems and enacting domestic laws when I worked for the Ministryof Economy, Trade and Industry. Since returning to my position as alawyer, I have dealt with a number of domestic and overseas issues,
mainly in the area of personnel and labor relations for both domestic
and foreign companies. Since our company has been aggressively
entering the water supply and sewage business in Europe and theUnited States, I thought that I might be able to use my knowledge on
how to deal with legal issues in Japan and overseas, and decided toaccept the offer of Outside Director.
I believe that the most important aspect of corporate governance isthe attitude of management. Things like “pursuing self-interests”
and a “lack of compliance” are obviously out of the question, but it
is also possible that the internal logic of the company may work todamage the business without anyone even realizing. I believe my role
is to participate in discussions from an external perspective so thatthe company does not fall into such a situation. In studying the water
and wastewater business and industry as a whole, I try to reflect that“outside point of view” in the discussions of the Board of Directors.

Our company was formed as a result of the merger of NGK and Fuji
Electric’s water supply and environment subsidiaries. In terms ofcorporate governance, I feel that the unique tension among the threeparties has been working positively.
However, I believe that this relationship will change as the company
develops, and as we expand our overseas business in anticipationof further globalization, governance will inevitably become moredifficult from the perspective of balance as a group company.
In order for corporate governance to function in this process, it isimportant to gain the understanding of our business activities fromstakeholders and to ensure the transparency of the business. I would
like to gain a complete understanding of our company’s businessactivities and help ensure their transparency.

METAWATER Group’s ESG

Corporate title

Our company’s Board of Directors engage in frank and heateddiscussions on important management decisions. However, nodirector is married to their own views and opinions. Rather, everyone
listens to other opinions and discusses them from a professional
perspective. I feel that these discussions are very productive.
Participating in such discussions can be trying, but it’s an effort
everyone is willing to put in.
Over the past 5 years, we have not only been actively engaged in
PPP projects in Japan, but have also been focusing on expanding ouroverseas business. However, we are still in the midst of this process,and as we move beyond our 10-year anniversary, we will have to
make difficult decisions, including deciding on the direction forfurther development of our business. I would like to improve myself
so that I can more actively participate in such discussions.

—— What are your thoughts on the governance ofthe METAWATER Group?

—— What is necessary for the sustainable improvementof corporate value?
I understand that the core of our company’s business is to play avital role in society, equivalent to the kidneys in a human body. In
order for the business to survive and develop, it is essential for all
employees to have an understanding that “our company underpins
the survival of society” and to be aware of “what is most importantin doing business”. Things such as safety, security, and efficiency
are essential for this purpose, and I believe that we should place
importance on the perspective of contributing to society through ourbusiness.
It is also extremely important to create a comfortable working
environment so that employees can work with a sense of duty or
purpose. I think the company deserves high marks for its active
promotion of human resource strategies and work style reforms.

—— What are your future aspirations as an Outside
Director?
I would like to do what I can to improve corporate governance anddevelop our company’s businesses, which have social significance.

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Management organization (As of end of June 2020)
Directors

Auditors
Yasushi Nakamura Operation execution control

Akira Kato

Shigeru Hatsumata

Kimihiko Uemura Outside Independent

President and Representative Director

Assistance to the Chief Executive Officer
Executive General Manager, Corporate Strategy Planning Division

Audit and Supervisory Board Member

Partner of Midosuji Legal Profession Corporation

April 1981 Joined Fuji Electric Co., Ltd.
April 2008 Director at METAWATER
April 2012 Executive General Manager, Service Solution Division at METAWATER
April 2014	Executive General Manager, Corporate Strategy Planning
Division at METAWATER
June 2015 Senior Executive Officer at METAWATER
June 2016 President and Representative Director at METAWATER (current)
President & Chief Executive Officer at METAWATER (current)
June 2020 Outside Director, NTT Data Intramart Corporation (current)

March 1980 Joined NGK Insulators, Ltd.
June 2013 Director at METAWATER (current)
June 2015 Senior Executive Officer at METAWATER
June 2016 Executive General Manager,
Corporate Strategy Planning Division at METAWATER (current)
Chief of Export Management Office at METAWATER
April 2017 Senior Executive Officer at METAWATER
April 2019 Vice President & Executive Officer at METAWATER (current)

April 1982
April 2008

April 1987

Noboru Okuda

Kenji Yamaguchi

Kazuo Takimoto

Executive General Manager, Plant Engineering Division

Executive General Manager, Business Strategy Division

CPA and Tax Accountant ofTokyo Kudan Accounting Office

April 1982
April 2013

Joined Fuji Electric Co., Ltd.
Deputy Executive General Manager,
Plant Engineering Division at METAWATER
April 2014 Executive General Manager,
Service Solution Division at METAWATER
June 2015 Executive Officer at METAWATER
April 2016 Senior Executive Officer at METAWATER (current)
Executive General Manager, Plant Engineering Division (current)
June 2019 Director at METAWATER (current)

April 1987
April 2013

November 1978 Joined Asahi Accounting Co., Ltd.
October 1988 Opened Takimoto Accounting Office(currently Tokyo Kudan Accounting Office) (current)
June 2007 Outside Director for Vitec Co, Ltd.
June 2014 Outside Auditor at METAWATER (current)

Susumu Sakabe

Motofumi Matsumura

Director of NGK INSULATORS, LTD. Senior Executive Officer

Advisor of Fuji Electric Co., Ltd.

March 1981 Joined NGK Insulators, Ltd.
June 2007 Executive Officer at the company
June 2010 Director & Executive Officer at the company
June 2011 Director & Senior Vice President at the company
June 2014 Outside Director for METAWATER (current)
June 2015 Director & Senior Vice President at NGK Insulators, Ltd. (current)

April 1978
June 2004
April 2008
April 2011
April 2016
June 2016
June 2016

Keiichiro Sue

OutsideIndependent

OutsideJoined Fuji Electric Co., Ltd.
Director at Fuji Electric Systems Co., Ltd.
Executive Managing Director at the company
Executive Officer at Fuji Electric Co., Ltd.
Advisor at the company (current)
Outside Director for METAWATER (current)
Director at Fuji Furukawa Engineering & Construction Co., Ltd.

Kaoru Aizawa

OutsideIndependent Director of Nicca Chemical Co, Ltd.

April 1984

April 1977
April 2003
June 2007
June 2010
June 2011

Fumiko Kosao

OutsideIndependent

Licensed tax accountant, Kosao Fumiko Accountant OfficeOutside Director of CTI Engineering Co., Ltd.
April 1973 Jointed the National Tax Agency
July 2011 Director, Gyoda Tax Office, Kanto-Shinetsu Regional Taxation Bureau
July 2014 Director, Nihonbashi Tax Office, Tokyo Regional Taxation Bureau
August 2015 Registered as a tax accountant
Tax accountant, Fumiko Kosao Certified Tax Accountant Office (current)
June 2016 Outside Auditor for TOBISHIMA CORPORATIONMarch 2017 Outside Director for CTI Engineering Co., Ltd. (current)
June 2017 Outside Director for METAWATER (current)

METAWATER REPORT 2020

Joined Nitto Denko Corporation
Executive Officer at the company
Board Member & Executive Vice President at the company
Board Member & Senior Executive Vice President at the company
Representative Director & Senior Executive Vice President
at the company
September 2014 Advisor at NICCA CHEMICAL CO., LTD.
March 2016 Outside Director at the company (current)
June 2016 Outside Director for METAWATER (current)

Independent

Executive Officers
President & Chief
Executive Officer

Yasushi Nakamura

Operation execution control

Vice President andExecutive Officer

Akira Kato

Assistance to the Chief Executive Officer / Executive General Manager, Corporate Strategy Planning Division /Responsible for Corporate Administration Department, Affiliates Coordination Department, and Legal Department, Corporate Strategy Planning
Division / Executive General Manager, Export Control Office and Affiliates Coordination Department, Corporate Strategy Planning Division

Senior Executive Officer

Noboru Okuda

Executive General Manager, Plant Engineering Division / Responsible for Product Center / Responsible for Quality Assurance OfficeSenior Executive Officer

Makoto Shimizu

Executive General Manager, Service Solution Division / President and Representative Director, METAWATER TECH Co., Ltd.

Senior Executive Officer

Masashi Sakai

Executive General Manager, Public Private Partnership Division

Executive Officer

Eiji Nakamura

President and Representative Director, METAWATER SERVICE Co., Ltd.

Executive Officer

Kenji Yamaguchi

Executive General Manager, Business Strategy Division / Responsible for WBC Center

Executive Officer

Michio Fujii

Deputy Executive General Manager, Corporate Strategy Planning Division /Executive General Manager, HR & General Affairs Planning Office, Corporate Strategy Planning Division /Responsible for CSR Promotion Office, Corporate Strategy Planning Division / Chief of Export Management Office /Responsible for Risk Management / President and Representative Director, METAWATER Research Institute Co., Ltd.

Executive Officer

Masahiro Takagi

Executive General Manager, Sales and Marketing Division

Executive Officer

Masayuki Nakagawa

Executive General Manager, Financial Planning Office, Corporate Strategy Planning Division /Responsible for Information Technology Planning Department, Corporate Strategy Planning Division

Executive Officer

Yoshito Ezure

Deputy Executive General Manager, International Business Division / Director and Deputy President, METAWATER USA, INC. /Chairman of the Board, Aqua-Aerobic Systems, Inc.

Executive Officer

Tsugio Kusano

Executive General Manager, Plant Construction Center / Responsible for Safety and Health Management Office

Executive Officer

Susumu Kadowaki

Deputy Executive General Manager, Sales & Marketing Division

Executive Officer

Koichi Yamaguchi

Executive General Manager, Cost Engineering Center

Executive Officer

Ken Akikawa

Executive General Manager, International Business Division /Director and President, METAWATER USA, INC. / Director and Chairman, Wigen Companies, Inc.

Executive Officer

Tatsuo Kato

Deputy Executive General Manager, Plant Engineering Division

Independent

Partner of Blakemore & Mitsuki Law Firm
Registered as an attorney (Daiichi Tokyo Bar Association)
Joined Nobuo Takai Law Office
October 1995 Registered as an attorney in New York state
June 2003 Outside Auditor for Nippon Signal Co., Ltd.
June 2009 Partner at Blakemore & Mitsuki (current)
June 2014 Outside Director for METAWATER (current)
June 2014 External Audit & Supervisory Board Member for NHK Spring Co., Ltd.
June 2015 External Director at the company (current)

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Joined NGK Insulators, Ltd.
Deputy Executive General Manager,
Business Strategy Division at METAWATER
April 2015 Executive General Manager, Business Strategy Division (current)
June 2015 Executive Officer at METAWATER (current)
June 2019 Director at METAWATER (current)

OutsideRegistered as an attorney (Osaka Bar Association)
Joined Midosuji Law Firm
(currently Midosuji Legal Profession Corporation) (current)
June 2007 Outside Auditor for Fudo Tetra Corporation
June 2013 Outside Auditor at METAWATER (current)

METAWATER Group’s ESG

OutsideJoined Fuji Electric Co., Ltd.
Deputy Executive General Manager,
Business Development Division at METAWATER
April 2014 Deputy Executive General Manager, CSR Division at METAWATER
April 2015 Executive General Manager, CSR Promotion Office at METAWATER
June 2015 Executive Officer at METAWATER
June 2019 Audit and Supervisory Board Member at METAWATER (current)

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Risk management and compliance

Initiatives for strengthening information security

With the “METAWATER Group Risk Management Rules” in place, the METAWATER Group has a systematic awareness of various
risks that can affect the Group’s operations, evaluates and manages those risks appropriately, and thereby seeks to prevent theiroccurrence or to reduce losses associated with them, while striving to improve and expand the corporate value of the Group.
Furthermore, the Risk Management Working Group has been established within the CSR Committee in an effort to improve and reinforce
the corporate framework so that the Group can appropriately address individual risks in order to meet stakeholders’ expectations.

Board of Directors Meeting

Supervision

Management Meeting

ReportInstruction
Supervision

ReportCSR Committee

Risk Management Sub-Committee
Instruction

Auditing Office

Audit

ReportDivisions/Group companies

information security risks are increasing as well, such as leakage of confidential or personal information, cyber-attacks, etc. As such,
the METAWATER Group is making various efforts to combat information security risks.

Upgrading security countermeasures at construction andplant operation sites
In addition to strengthening information security in offices, the METAWATER Group is also
taking measures to strengthen information security at construction sites and operation andmaintenance sites for water and sewage treatment plants. At the same time, we conduct ITinternal audits to identify issues and implement countermeasures.
Opportunities for minor improvements were identified in FY2019 audits, and all of those issues
were corrected, with continuous improvements being made.

Information security is imperative at construction sites

Information security training for all employees
Collective education and e-learning training is being carried out for all employees to improvetheir information security knowledge. For new employees in particular, all group companies areholding individual workshops. Easy-to-understand examples are used to raise awareness andstrengthen information security.

Furthermore, in order to respond to individual risks, in addition to establishing the “METAWATER Business Continuity Plan (BCP)”,“Compliance Rules”, and “Information Security Policies”, we have also established regulations, standards, and manuals forresponding to accidents, the environment, and safety and health, so that we can respond quickly and accurately to various events
that may occur.

METAWATER Group’s ESG

ReportThe utilization of Information and Communications Technology (ICT) is indispensable for promoting work style reforms, improving
operational efficiency and convenience, etc. However, the development of an information society is increasing, and with it

Information security seminar for new graduates

Compliance
We believe that ensuring proper compliance and being widely trusted by society leads to sustainable growth of the METAWATER
Group, as well as fosters a healthy corporate culture. Based on this understanding, we have established Compliance Rules that serve
as guidelines for the Corporate Charter of Conduct, the Employees' Code of Conduct, and the compliance issues that the Group could

BCM activities
With a commitment to strengthening Business Continuation Management (BCM), the
METAWATER Group has developed the Business Continuation Plan (BCP), which is suitablefor its business characteristics.
Furthermore, the Group regularly holds BCM Promotion Working Group meetings in order toimplement and realize. In order to link these to specific action, various internal regulations have been established, ensuring thoroughcompliance with laws and internal rules.

improve the effectiveness of the formulated BCP.
In FY2019, we made major revisions to our BCP, including establishing “emergency priority
operations”, reviewing BCP (recovery action) procedures, and streamlining documentsby consolidating related rules. In FY2020, we plan to further improve effectiveness bypromoting greater permeation and familiarization of the BCP through various training andeducation programs.

BCM Promotion Working Group

Additionally, at the Head Office and Hino Branch, we continue to conduct skill training for our
in-house firefighting teams, which are made up of employees, to familiarize them with various
skills such as emergency calls, cardiopulmonary resuscitation, and fire extinguisher training.
In response to the spread of novel coronavirus infections, we have established an emergency
response division headed by the President and are implementing various measures in a
flexible manner.
In light of our social mission to provide water and environmental infrastructure, all of
METAWATER is working to prevent the spread of infection in order to ensure business

Compliance Working Group

Compliance Education

As a specialized working group under the CSR Committee, we haveestablished the Compliance Working Group, which is comprised of fivechief department managers and the Legal Division as the secretariat.
They are engaged in activities that include checking on and improving
implementation of compliance programs, studying and developing
company-wide compliance education and measures, and offering
consultation on issues received from the compliance helpline. In responseto these matters, we hold emergency and temporary meetings in addition
to regular quarterly meetings.

The METAWATER Group provides lecture-based courses, including
company-wide education provided at main bases throughout the country,
company-wide e-learning, executive education, and education by rank.
From FY2018 to FY2019, we conducted company-wide education on thethemes of personal information protection, information security, andharassment prevention. In FY2019, 18 seminars were held at five sites,
and a total of 2,570 employees participated over a two year period.

■ FY2019 e-learning and company-wide

education results
Company-wide
education
Training for each department walking through therevisions of the BCP

e-learning
education

Head Office (5 times), Hino (4 times),
Nagoya (3 times), Osaka (3 times), Fukuoka (3 times)
Total of 22,183 people across 8 sessions

continuity and the safety of employees.
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