Hankyu Hanshin Holdings
Sustainability Databook 2023

Table of Contents
SUSTAINABILITY IN GENERALENVIRONMENT

General Principles and Priority Issues in the
Sustainability Declaration ……………………………………………………………… 4

1. Environmental Management …………………………………………………… 31

Steps to Determine Priority Issues (Materiality Matrix) ………… 5

3. Pollution and Resources …………………………………………………………… 41

Sustainable Management Promotion Framework ………………… 6

4. Biodiversity …………………………………………………………………………………… 45

2. Climate Change …………………………………………………………………………… 34

5. Water Resources ………………………………………………………………………… 47

SOCIAL
1. Respect for Human Rights ……………………………………………………… 7

GOVERNANCE

2. Ensure Business Safety and Reliability………………………………… 12

1. Corporate Governance ……………………………………………………………… 49

3. Contribute to Local Communities ………………………………………… 15

2. Ensure Compliance and Prevent Corruption ……………………… 55

4. Employment and Labor Initiatives ………………………………………… 20

3. Risk Management ……………………………………………………………………… 58

5. Occupational Health & Safety ………………………………………………… 27

4. Taxation Transparency ……………………………………………………………… 59
Independent Assurance Report ………………………………………………… 60

Editorial Policy
This report outlines the approach, initiatives, major performance results in FY2023, future policies and plans of the Hankyu
Hanshin Holdings Group for the realization of a sustainable society.

Guidelines for Reference:GRI Sustainability Reporting Standards GRI Standards Content Index WEB
Report Scope:
Hankyu Hanshin Holdings, Inc., its major companies, the companies that belong to the Group’s respective core businesses(Urban Transportation, Real Estate, Entertainment, Information and Communication Technology, Travel, and International Transportation), and other operating companies (The following different report scopes apply to some parts of this databook.)• Hankyu Hanshin Holdings, Inc.
•H
 ankyu Hanshin Holdings, Inc. and its six major companies:
a total of seven companies (Hankyu Hanshin Holdings, Inc., Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin
Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin Hotels)* Hankyu Hanshin Holdings, Inc. and its six major companies account for about 70% of the Group’s consolidated operating revenue.

• Hankyu Hanshin Holdings, Inc. and its consolidated subsidiaries in Japan: a total of 78 companies•H ankyu Hanshin Holdings, Inc. and all its consolidated subsidiaries:
a total of 100 companies (Number of employees: a total of 22,527 persons [as of March 31, 2023])
Period Covered:
FY2023 (April 1, 2022–March 31, 2023)
Note: This databook also covers some initiatives implemented around FY2023.

2

Reporting System:
Information on sustainability is provided in the Sustainability Databook, the corporate website, and other media listed below.
• Sustainability Databook (This Report): Provides detailed non-financial ESG (environmental, social, and governance) information•C orporate website WEB : Examples of the Group’s initiatives in line with the priority issues, the GRI Standards Content Index, etc.
posted on the Group’s sustainability website• Integrated ReportWEB: Provides information about the review of FY2023 and the Group’s management policies and ESG
initiatives• Securities Report WEB : Provides more detailed financial information• Corporate Governance Report WEB : Provides information mainly on the Group’s corporate governance approach and systems incompliance with Japan’s Corporate Governance Code• Safety Reports: Provide information mainly on the railway operators’ safety initiatives(issued by Hankyu Corporation, Hanshin Electric Railway, KITA-OSAKA KYUKO RAILWAY, and Nose Electric Railway WEB )Major updates (since October 2023):•U pdated in March 2024: p. 25 Training record (updated)		
p. 39 The Group’s GHG emissions (SCOPE 1 and 2) (updated)		
p. 40 Energy consumption on a crude oil-conversion basis (updated)		
p. 51	Attendance rates at meetings of the Board of Directors, Audit & Supervisory Committee,
Corporate Governance Committee and Compensation Committee (FY2023) (new)		p. 60 Independent Assurance Report (new)3

SUSTAINABILITY IN GENERALSOCIAL

General Principles and Priority Issues
in the Sustainability Declaration

ENVIRONMENTSteps to Determine Priority Issues(Materiality Matrix)

GOVERNANCE
Sustainable Management
Promotion Framework

General Principles and Priority Issues in the
Sustainability Declaration
In May 2020, the Hankyu Hanshin Holdings Group announced the Hankyu
Hanshin Holdings Group Sustainability Declaration and is promoting
sustainable management to continuously enhance corporate value andultimately realize a sustainable society.

Hankyu Hanshin Holdings Group

General Principles
Create a future grounded in “Safety and Comfort” and a future colored by “Dreams and Excitement.”
For over a hundred years, we have sought to cultivate communities and enrich lives. Leveraging this experience, we commit
ourselves to addressing social and environmental challenges and working toward a sustainable future, one that offers a fulfilling,
joyful life to all and inspires the next generation to dream with hope.

Priority Issues, Policies, and Project Themes
Priority issues and policies

Safe, reliableinfrastructure
Provide railways and other infrastructure that aresafe and disaster-resilient. Ensure that anyone
can safely access our facilities and services.

Project themes❶ Eliminate accidents and improve safety at railways and commercial facilities❷ Promote actions to prevent/reduce accidents and respond promptly and properly

to accidents if they occur❸ Establish safe and comfortable facilities and services that satisfy the needs of adiversity of people❶ Develop a good living environment (providing good residences, creating green

spaces and public spaces, establishing cultural and educational facilities, etc.)

Thriving communities
Help build sustainable communities with richnatural and cultural heritage, making greatplaces to live in, work in, and visit.

❷ Develop and expand commercial/business areas where people communicate witheach other❸ Create a line-side environment that makes it easier for women to work and for all

to raise children❹ Promote measures to extend the healthy lifespan of the elderly❺ Offer services that satisfy the needs of foreign visitors/residents❻ Enhance collaboration and partnerships with universities, research institutions,ventures, local communities, etc.

Life designs for
tomorrow
Promote refined and inspired lifestyle solutions
for a better tomorrow.

Empowering
individuals
Provide an inclusive workplace that values
diversity and taps into individual talent.
Cultivate tomorrow’s leaders for society.

Environmental
protection
Conduct eco activities that contribute to acarbon-neutral world and a circular economy.

Robust governance
Act honestly and in good faith, as stakeholders
expect us to do.

❶ Propose products/services that help realize a lifestyle in harmony with nature❷ Propose products/services that lead to revitalization and promotion of local com-munities and cultures❸ Propose products/services that respond to diverse values and create comfort andexcitement❹ Propose products/services for young people who will lead the next generation❺ Create and disseminate cultures through sports and entertainments❻ Improve existing services and create new businesses by utilizing ICT innovation❶ Improve employee satisfaction and create a more positive workplace❷ Promote health and productivity management❸ Promote diversity & inclusion❹ Respect human rights and prevent harassment❺ Cultivate tomorrow’s leaders❶ Cut greenhouse gas (CO2) emissions❷ Improve energy efficiency (promote energy saving)❸ Use more renewable energy (e.g. solar)❹ Aim for more eco-friendly buildings (green buildings)❺ Produce less waste and recycle more

❶ Promote effective and transparent corporate governance❷ Ensure compliance and prevent corruption❸ Enhance risk management, including climate change❹ Pay attention to opinions of stakeholders in doing businessNote: The SDG icon that is placed first is the most relevant to each priority issue.

4

Relevant SDGs

SUSTAINABILITY IN GENERALSOCIAL

General Principles and Priority Issues
in the Sustainability Declaration

ENVIRONMENTGOVERNANCE
Sustainable Management
Promotion Framework

Steps to Determine Priority Issues(Materiality Matrix)

Steps to Determine Priority Issues(Materiality Matrix)
By taking the following steps, we identified the issues that the Hankyu Hanshin Holdings Group should address as its priority issues.

STEP 1Creation of a long list of social issues
Based on guidelines such as the SDGs, GRI Standards, SASB Standards and ISO 26000 as well as the resultsof external environmental analysis and PEST analysis by external experts, compiled a list of universal social
issues and a list of social issues particularly relevant to the Hankyu Hanshin Holdings Group. Then, created along list of social issues (349 items) that are important to the Group.

STEP 2

Summarization into a short list
Narrowed down the long list into a short list of 54 items by eliminating items that have little relevance to
the Group and combining duplicate items. Then divided the 54 items into 15 categories.
Social issues particularly relevant to the
Hankyu Hanshin Holdings Group

Universal social issues• Addressing climate change• Adapting to circular society• Developing sustainable communities• Promoting gender equality and diversity• Balancing economic growth and employee
satisfaction• Enhancing corporate governance• Problem solving through partnerships

STEP 3• Depopulating society• Aging population• Tight labor market• Increasing public interest in safety and security• Aging infrastructure• Adapting to diverse values• Accepting multiple cultures along with an increasein the foreign population• Advancement of technology innovation

Identification of priority issues
Based on their level of importance to the Group and to society, ranked the 15 categories in order of priority. In
addition, conducted surveys for and interviews with the responsible personnel for each core business andinterviews with external experts WEB . Following additional examination of the findings of the surveys and interviews, determined six priority issues (materiality). The Board of Directors then approved the priority issues.
Materiality mapping

④

High

①

Importance to the Group③②

Medium⑥

Importance to society

Key areas on which the Groupneeds to focus by setting
specific targets and KPIs

⑤

High

Areas for which the Group needs
to continuously implement
measures and disclose
information in response torequests from society

Six priority issues (Materiality)① Safe, reliable infrastructure ② Thriving communities④ Empowering individuals③ Life designs for tomorrow⑤ Environmental protection ⑥ Robust governance5SUSTAINABILITY IN GENERALSOCIAL

General Principles and Priority Issues
in the Sustainability Declaration

ENVIRONMENTSteps to Determine Priority Issues(Materiality Matrix)

GOVERNANCE
Sustainable Management
Promotion Framework

Sustainable Management Promotion Framework
Establishment of the Corporate Sustainability Committee
Toward the cross-sectional promotion of sustainability throughout the Group, we have established the Corporate Sustainability
Committee, which is chaired by the Group CEO and comprises all representative directors, the executive officer in charge of the
Personnel and General Affairs Division (in charge of ESG, environment, social contribution, personnel affairs, risk management,
and compliance), the executive officer in charge of the Group Planning Division (in charge of corporate planning and finance), etc.
This committee meets twice (in September and February) every fiscal year.
The committee formulates policies on the priority issues toward sustainable management, supervises the progress of relevant measures, and deliberates and decides on issues that should be reflected in the Medium-Term Management Plan from bothfinancial and non-financial perspectives. The results of this committee’s deliberations will be proposed to the Group Management
Committee for further deliberations, which comprises all representative directors and the representatives of the Group’s corebusinesses, and also reported to the Board of Directors for supervision. We are thus promoting sustainable management by
positioning it as an integral part of the entire Group’s management system.
Sustainability Promotion Framework
Board of Directors
Group Management Committee

Audit

Refer/Report (important issues)

Refer/Report (important issues)

Corporate Sustainability Committee
Topics factored
into Medium-Term
Management Plan

• Chair:
Hankyu Hanshin Holdings Group CEO• Members:	Hankyu Hanshin Holdings representative directors, executive officer in charge of the
Personnel and General Affairs Div., executive officer in charge of the Group Planning Div.,and others nominated by the committee chair• Secretariat:	Corporate Sustainability Dept. of the Personnel and General Affairs Div. (supervisory role)and the Corporate Communication Dept. and Management Planning Dept. of the Group
Planning Div.
Propose policies

Implement/Report

Group Companies

Support for the TCFD and the United Nations Global Compact
In May 2021, the Hankyu Hanshin Holdings Group announced its agreement with the Task Force on Climate-related Financial Disclosures (TCFD)*1 and the United Nations
Global Compact (UNGC)*2 to show its active commitment tosustainable management.
*1: Task Force on Climate-related Financial Disclosures (TCFD): Created in 2015 by the Financial Stability Board at the request of theG20, the TCFD encourages businesses to provide high-quality information about how climate change will impact their strategy andfinances over the medium and long term, so that investors have sufficient information to make their investment decisions.
*2: United Nations Global Compact (UNGC): Announced at the World Economic Forum held in 1999, the UNGC is a pact that enshrines behavioral principles for businesses around the world. It consists of ten principles in the areas of human rights, labor,
environment, and anti-corruption.

6

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

1. Respect for Human Rights
Approach
The Hankyu Hanshin Holdings Group regards “Respect for People” as one of the values of the Group Management Philosophy.
To embody it, we have stipulated the Basic Philosophy and Policy on Respect for Human Rights, and we are engaged in awareness-raising activities to develop a better instinct for human rights in individual employees. In particular, considering harassmentin the workplace as a serious issue that prevents employees from demonstrating their abilities, we have promoted efforts toeradicate harassment on a group-wide basis, including delivering top messages, implementing education and awareness-raising
activities, and conducting a questionnaire survey of employees.
In May 2021, we announced our agreement with the United Nations Global Compact*1 and then made a commitment torespect and support the United Nations Guiding Principles on Business and Human Rights. Subsequently in April 2023, werevised our Basic Philosophy and Policy on Respect for Human Rights*2 based on the Guiding Principles.
We will continue to contribute to the realization of an affluent society free of human rights abuse or discrimination.

Hankyu Hanshin Holdings Group Basic Philosophy on Respect for Human Rights
By respecting the human rights of all people involved in our business activities, we contribute to the creation of
an affluent society free from discrimination and the infringement of human rights based on birth, race, nationality,
religion, creed, sex, sexual orientation and gender identity, age, disability, etc.

Hankyu Hanshin Holdings Group Basic Policy on Respect for Human Rights
1. Compliance with laws and regulations related to respect for human rights
We will endeavor to comply with human rights laws and regulations applicable in the countries and regions in which we
operate and will support and respect international human rights norms such as the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights) and the ILO Declaration on Fundamental
Principles and Rights at Work* issued by the International Labour Organization (ILO).
* The core labour standards include freedom of association and recognition of the right to collective bargaining, prohibition offorced labour, prohibition of child labour, prohibition of discrimination in respect of employment and occupation, and a safe andhealthy working environment.
2. Scope of application
This philosophy and policy apply to all officers and employees of the Hankyu Hanshin Holdings Group. We also will try togain the understanding and support of stakeholders in this philosophy and policy, and we hope to work together to proceedwith respect for human rights.
3. Human rights due diligence
In order to fulfill our responsibility to respect human rights, we will continue to implement human rights due diligence andwork to avoid and reduce negative impacts on human rights.
4. Remedy and correction
Upon our knowledge of any directly caused, and/or the contributing of, adverse impacts on human rights through our business activities, we will implement or cooperate in remedies and corrections through appropriate means.
5. Dialogues with stakeholders
We seek to gain insights through dialogue with outside experts, listen to the opinions of our stakeholders, and strive to respond
responsibly.
6. Education and AwarenessWe will continue to provide the necessary education and awareness to ensure that this philosophy and policy are carried out
in our business activities.
7. Creating a safe and satisfying work environment
In order to respect the human rights of each employee, we will endeavor to maintain fairness and equality in all treatment,
starting with the hiring process. We will also promote the creation of a work environment where officers and employees canrecognize each other’s differences and make full use of their individuality and talent.
8. Information disclosure
We will disclose information on our efforts to respect human rights in a timely and appropriate manner.

7

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability*1: The United Nations Global Compact (UNGC) WEB :Announced at the World Economic Forum held in
1999, the UNGC is a pact that enshrines behavioral
principles for businesses around the world. It
consists of ten principles in the areas of humanrights, labor, the environment, and anti-corruption.
The responsibilities placed on companies andorganizations participating in the United Nations
Global Compact have been determined based on
the Universal Declaration of Human Rights, the ILO
Declaration on Fundamental Principles and Rights
at Work, the Rio Declaration on Environment andDevelopment (Earth Summit), and the United
Nations Convention against Corruption.
In May 2021, the Group signed the United Nations
Global Compact, agreeing with its philosophy, andit has joined the Global Compact Network Japan(GCNJ), a local network in Japan.
*2: This philosophy and policy have been approved by
the Board of Directors of the Company.

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

Ten Principles of the United Nations Global Compact• Human Rights Principle 1: Businesses should support and respect the protec-

tion of internationally proclaimed human rights andPrinciple 2: m ake sure that they are not complicit in humanrights abuses.
Principle 3: B usinesses should uphold the freedom of associ• Labour
ation and the effective recognition of the right tocollective bargaining,
Principle 4: the elimination of all forms of forced and compulsory labour,
Principle 5: the effective abolition of child labour, andPrinciple 6: the elimination of discrimination in respect of
employment and occupation.
• Environment Principle 7: B usinesses should support a precautionary
approach to environmental challenges,
Principle 8: u
 ndertake initiatives to promote greater environmental responsibility, andPrinciple 9: e
 ncourage the development and diffusion ofenvironmentally friendly technologies.
• Anti-Corruption Principle 10: B usinesses should work against corruption in allits forms, including extortion and bribery.

Management / Organization
To promote cross-sectional sustainability throughout the Group, we have established the Corporate Sustainability Committee, which
is chaired by the Group CEO (responsible supervisor). The Committee, which convenes twice a year, deliberates on the direction of
the Group’s response to issues related to respect for human rights. Particularly important topics are reported to, or brought up at,
the Group Management Committee or Board of Directors, and incorporated into the Group’s overall management framework.
We have assigned a manager, a section chief, and several staff members in charge of human rights in our Personnel Department to promote the Group’s efforts to respect human rights, while the six major Group companies, together with its affiliated Group
companies, promote respect for human rights in daily operations according to the business characteristics of each company. For
instance, Hankyu Corporation holds meetings of the Human Rights Enlightenment Promotion Main Committee, chaired by the
director with a special title in charge of personnel affairs (responsible party), which deliberates on human rights initiatives and makes
decisions as a company. Hanshin Electric Railway has also established a Human Rights Enlightenment Promotion Committee,
chaired by the director in charge of personnel affairs (responsible party), to formulate a basic plan for human rights education and topromote company-wide human rights awareness through a subordinate committee organization. Hankyu Hanshin Properties has
also established a Human Rights Enlightenment Promotion Committee, which is chaired by the president (responsible party) andincludes the heads of each division and the presidents of each subordinate company. In this way, each company has established ahuman rights awareness promotion system and is promoting efforts to respect human rights.
In particular, Hankyu Hanshin Holdings, Inc. is working to eradicate harassment by supervising the plans and execution ofharassment prevention at each Group company.

TargetIndicator

Range

TargetFY2023 Results

Rate of participation in humanrights training

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

Always 100%

100%

Initiatives
Human rights due diligence
Prevention and mitigation of human rights-related risks
Hankyu Hanshin Holdings, Inc. conducted a survey on respecting human rights targeting all of its consolidated subsidiaries(including those outside Japan). Using a checklist made by the Company based on expert advice, the survey included items on
freedom of association and the right to collective bargaining, elimination of forced or compulsory labor, abolition of child labor,
elimination of discrimination in respect of employment and occupation, and a safe and healthy environment, which are items
included in the Core Labour Standards set by the International Labour Organization (ILO). As a result of the survey, it was confirmed that none of our subsidiaries have any issues related to any of the items.

8

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

Conducting a questionnaire survey on the workplace environment
Each Group company conducts a questionnaire survey of employees on the workplace environment every other year. The questionnaire contains a wide range of questions related to harassment, including whether the respondent is subject to harassment,
whether there are harassment cases around the respondent, and whether harassment prevention measures taken by the company work effectively for employees. The questionnaire results are used as important materials for each company to formulate
harassment prevention measures. When conducting a questionnaire survey, we inform Group employees of the Harassment
Consulting Office, where they can seek consultation, and encourage them to use the consultation services.
• Number of respondents to the questionnaire on the workplace environment: 24,047 persons (FY2023)

Remedy and correction
Establishing a consultation system for harassment and human rights violations
The Group has established the Harassment Consulting Office for Group employees within the Personnel Department of theCompany to accept consultation on harassment in the workplace. (Anonymous consultation is also available.) For the use of
consultation services, it is clearly stated that the privacy of an employee who seeks consultation is protected and that there is no
disadvantageous treatment of the relevant employee due to seeking consultation. If an employee subject to harassment, including an employee who seeks consultation, is in a troubled situation, we will work to improve the situation.
The Group also conducts training that incorporates role-playing for the staff in charge of Harassment Consulting Office ineach Group company to help them acquire knowledge and skills that can respond appropriately to consultation. We are thus
striving to create a consultation system in which employees can seek consultation without worry. Since FY2017, 420 employees
have participated in the training for the staff in charge of Harassment Consulting Office that is organized by the Company (cumulative total up to the end of March 2023).
In addition to the Harassment Consulting Office, we also accept cases of human rights violations at the Corporate Ethics
Consultation Desk*, which is a whistleblowing system that can be used by the Group’s officers and employees as well as thebusiness partners of the Group. (Anonymous consultation is also available.)* Please refer to “2. Operation of Corporate Ethics Consultation Desk (Internal Whistle-Blower Procedures)” of “2. Ensure Compliance and Prevent Corruption”
in the “GOVERNANCE” part (page 55).

Dialogues with stakeholders
Toward the revision of our Basic Philosophy and Basic Policy on Respect for Human Rights in 2023, we exchanged views about
the Group’s related policies and initiatives with human rights experts on several occasions. We have also been fostering initiatives
for “business and human rights” by adopting the advice given to us by both domestic and overseas human rights experts.

Education and AwarenessSpreading the Basic Philosophy and Basic Policy on Respect for Human
RightsThe Group publishes the Compliance Handbook, to be distributed to all officers andemployees of the Group, in which the Basic Philosophy and Basic Policy on Respect for
Human Rights are introduced in an easy-to-understand manner with examples of behaviors
that go against respect for human rights to raise employee awareness of human rights. We
revised the Basic Philosophy and Basic Policy on Respect for Human Rights in April 2023
and have been providing information about the revision, including an explanatory video, in
the Group’s newsletters to employees.

16Compliance as a Member of Society

Compliance as a Member of Society●Human rights are a general reference to various types of freedoms and rights that are
given when an individual is born.
●The Hankyu Hanshin Holdings Group respects the human rights of individuals. To ensureand deepen the understanding of employees and officers regarding human rights, theGroup has established written statements on the “Basic Philosophy on Respect for Human
Rights” and “Basic Policy on Respect for Human Rights.” It is important for you to fully
understand the contents of these statements and respect the human rights of other people.

Respect for
Human Rights

Hankyu Hanshin Holdings GroupDo you act appropriately?
Beliefs and creed of an individual have nothing
to do with the screening of job applicants.

Hankyu Hanshin
Holdings
Basic Philosophy
on Respect
forGroup
Human Rights

Erasing discriminating graffiti without reporting
it is the same as concealing the discrimination.

Who do you respect?

Basic Philosophy on Respect for Human Rights

By respecting the human rights of all people involved in our business activities, we
We will contributeto therealizationof an freeaffluent
free ofandhuman
contributeto the creationof anaffluent society
from society
discrimination
therights abusediscrimination
based
birthplace,creed,
infringement
of or
human
rights based on
birth,onrace,
nationality,nationality,
religion, creed,
sex, sexual
orientation
and age,genderidentity, orage,
disability,etc.
gender, race,
disability
anyother characteristic.

Basic
PolicyRespect
for Human
Rights
It is important for
us to respect
the onhumanrights of customers,
employeesof business

partners,
shareholders,our colleagues,
peoplein the tocommunity,andall otherpeople１Compliancewith laws
and regulations
relatedrespect for
humanrightswith
we tointeract,
a social
the company.
Wewillwhomendeavor
comply aswithhumanresponsibility
rights laws and of
regulations
applicable in the countries and regions inwhichachieve
we operateandsupportrespect
international
human rights norms
as therights
International
this,
all willof usmust andlearn
deepenaboutsuchhuman
to andBillthe
ofTo
Human Rights(Universal
Declaration
ofand
Human
Rightsour
andunderstanding
International Covenantson HumanRights)ILO
Declaration
on Fundamental
Principles
and Rights at Work (*) issued by the International Labour
enhanceour sensitivity
to humanrights.
Organization (ILO).

What kind of books
do you read?

The words and deeds shown below candestroy public trust in your company.
Your delivery is delayed.
Prostrate yourself andapologize.

You should not refuse a customer
accompanied by an assistance dog.
No Pets
AllowedYou must do as I say
if you want to continue
to deal with us.
■Your careless speech or behavior may constitute an abuse of human rights. For example, askinga job applicant about his/her ancestry, family background, beliefs, or creed is a discriminatory act
of judging whether or not to employ him/her based on matters unrelated to his/her work ability,
thereby likely constituting an infringement of human rights.
■If you find discriminatory graffiti, notices, etc., contact the section in charge of human rights.
Erasing or disposing of it before reporting it may be deemed as hiding the discriminatory act, even
if you do so with good intentions. Therefore, seek instructions from the section in charge.
■Making excessive or unreasonable requests to business partners by taking advantage of yoursuperior position will severely destroy public trust in your company.

44

Human
rightsclosely
relatedto yourlife. Beandconscious
alertto tohumanbargaining,rights inprohibition(※)
The corelabourare
standards
includefreedomof association
recognitionof
ofand
the right
collective
ofyourforcedlabour,prohibitionandof child
prohibition of discrimination in respect of employment and occupation, and a safe
daily
activities,
actlabour,
thoughtfully.
and healthy working environment.

２ Scope of application
This philosophy and policy apply to all officers and employees of the Hankyu Hanshin Holdings Group. We also
will try to gain the understanding
and supportof stakeholders
in thisGroupphilosophy and policy, and we hope toHankyuHanshinHoldings
work together to proceed with respect for human rights.

Basic Policy on Respect for Human Rights

３ Human rights due diligence
In order to fulfill our responsibility
to respecthuman rights,ofwe
willkind.
continue
to implement
human
We do not engage
in discriminationany
We recruit
people ona fairrights
and due
Recruitment
diligence
and work toimpartial
avoid andbasis.
reduce negative impacts on human rights.

４ Remedy and correction
Toany
eliminatekindsand/orof discrimination,
we of,
educatepeopledevelop
their
Human
Upon
our1 rights
knowledge ofdirectly allcaused,the contributing
adverseour
impacts
on to
humanrightsthrough oursensitivity
to humanrights andavoid abuseof human rights
in theirdaily activities.
educationbusiness
activities, we will
implement
or cooperate
in remedies
and corrections
through
appropriate
means.
５ Dialogues with stakeholders
We will strive to create workplace environments where employees respect the
WorkplaceWeseek to gain insights
through of
dialoguewith andoutsideexperts, listen
the opinionstheirof ourstakeholders,differenceseach otherall employees
cantodemonstrate
fullestabilities.
environmentand strive to respond responsibly.
６ Harmonious
Education andAs
Awarenessa corporate member of society, we will conduct our business activities while
Wecoexistence
will continue to provide
necessaryeducation andawarenesswith
to ensurethat thispaying theattention
to harmonious
coexistence
all membersof philosophy
society. and policy
society
arewithcarriedout in our business activities.
７ Creating a safe and satisfying work environment
We also ask our business partners to respect people’s human rights. We
Relationships
Inwithorder
to respect thehuman rights
each employee,
will endeavor
to thatmaintainfairnessinandequality inresolutely
takeofactions
against awe
business
partner
is involved
humanbusiness
all treatment,with thehiringprocess. We will
promotetherights
creationof a work environment
partners startingrights
abuse
or transactions
thatalso
inducehuman
abuse.
where officers and employees can recognize each other's differences and make full use of their individuality
and talent.
We respect the human rights of customers and all other people with whom weinteract, and exert group-wide efforts to prevent human rights abuse.
８Prevention
Information disclosure

We will disclose information on our efforts to respect human rights in a timely and appropriate manner.

44

45

Compliance Handbook (English edition)

Human rights enlightenment training

The Group annually conducts human rights enlightenment training for the top management of each Group company and all
employees in management positions in the Company totaling about 800 to regularly raise their awareness of various humanrights issues that those responsible for management should know. In the spring of 2023, we held a training seminar on Businessand Human Rights where attendees heard from an invited expert speaker. Human right enlightenment training is also conducted
for those in charge of human rights-related issues at each Group company as well as for new appointees to positions at eachlevel, including new directors, new corporate auditors, new managers, and new employees of each Group company, to promote
the spread of the Basic Philosophy and Basic Policy on Respect for Human Rights and continuously educate them about theprevention of harassment. Through the training, we aim to develop a better instinct for human rights in individual employees by
providing the opportunity to learn about the Basic Philosophy and Basic Policy on Respect for Human Rights and to understandcorrectly and think deeply about discrimination and human rights violations due to birth, race, nationality, religion, creed, sex,
sexual orientation and gender identity, age, disability, and other factors.

945

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety• Examples of training topics• Addressing LGBT-related issues from the perspective of business and human rights• Thinking about human rights in the context of business management and operations• Companies and human rights (to understand the issues affecting marginalized communities, people with disabilities, foreign
nationals in Japan and sexual minorities and to stamp out all forms of harassment)• Human rights at the workplace (prevention of harassment, understanding of people with disabilities, assertive communicationand others)

Promoting human rights enlightenment through the urban transportation businessTo play a role as a public transport provider, we have established the Transit Information Center and information desks to listen toa wide range of views from customers, including problems with the use of our services and feedback on the convenience of theservices. We also display posters that promote human rights enlightenment and perform automatic broadcasting about respectfor human rights in station buildings based on requests from outside organizations and the government.

Creating a safe and satisfying work environment
Thoroughly complying with labor laws and regulations
The Group complies with international rules and local laws and regulations and does not tolerate working conditions that may infringeon human rights or ideas that violate equal pay for equal work. We also strive to improve the workplace environment and working
conditions, which form the basis of respect for human rights. In addition to initiatives by each company, Hankyu Hanshin Holdings, Inc.
annually conducts a personnel and labor-related survey of each Group company. Through this survey, the company checks the statusof its compliance with labor laws and regulations, and shares information on revisions to labor laws and regulations to the Group.

Enhancing harassment prevention measures
Prior to the enforcement of the revised Act on Comprehensive Promotion of Labor Policies (mandatory measures to prevent
power harassment) from June 2020, we have been making company-wide efforts to prevent power harassment under theleadership of top management.

• Delivering top messages
Believing that changing the mindset of senior employees is the most important factor in eradicating power harassment, werepeatedly deliver top messages from the president of the Company and the top management of each Group company. With theaim of preventing harassment, these messages are delivered through online distribution to Group employees, as part of the
instructions given at a training program for the managerial staff hosted by the Company, and by other means.

• Enacting regulations on harassment prevention
Prior to the enforcement of the revised Act on Comprehensive Promotion of Labor Policies from June 2020, the Group has
stipulated and made known in its regulations that employees of all of the companies, regardless of the business scale, should not
engage in power harassment and that employees who engage in behavior related to power harassment will be strictly punished.

• Formulating a harassment prevention measure plan
Every year from FY2021, each Group company formulates a harassment prevention measure plan and systematically implements
actions in line with the plan. The auditors of the Company and each Group company support the steady implementation of theactions by checking their progress in each company and providing advice.

• Conducting harassment prevention measure training
In the spring of 2022, we conducted training on the theme of deepening understanding about sexual minorities and preventing harassment against them for the top management of each Group company and all managers of the Company. The training provides theopportunity for them to learn about behavior that may correspond to harassment and key points for providing guidance to subordinates. They also learn the proper attitude and points to note when consulted by subordinates as a primary contact point for consultations on harassment, the observance of confidentiality, and non-disadvantageous treatment of employees who report harassment.

• Prohibition of child labor and forced labor
The Group complies with the Labor Standards Act. As such, we confirm the age of prospective workers based on the documents issued
by public institutions and others before concluding individual employment agreements with them to avoid engaging in child labor.
Also, to prevent forced labor, we comply with related laws including the Employment Measures Act and do not keep employees’ passports or other important documents in our custody. As for the loan program and payroll-deduction savings plan introduced to support employees’ daily lives and career development as optional programs for them, we take appropriate proceduresin line with the Labor Standards Act and others, including provisions on the conclusion of labor-management agreements andnotifications to be made to administrative agencies.

10SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Initiatives related to recruitment
The Group has strived to appoint a person who promotes human rights enlightenment and fair process in recruitment and selection*, regardless of the number of employees, to ensure fair and impartial selection in recruitment activities.
* Under the Fair Recruitment and Human Rights Awareness Promoter system of the Ministry of Health, Labour and Welfare, a person who promotes humanrights enlightenment and fair process in recruitment and selection assumes the role of establishing a fair recruitment and selection system within eachbusiness establishment from the perspective of ensuring equal employment opportunities and plays a role as a contact point for cooperation with Labor
Bureaus and other bodies.

Holding internship programs
The Company holds multiple internship programs to offer students with a wide range of work experience opportunities. In
FY2023, a total of 524 students participated in the internship programs.

Others
Initiatives to provide support for children’s rights
The Group respects the rights of children, such as their right to life, development and protection, as provided for in the Convention on the Rights of the Child, which is one of the international norms on human rights. Moreover, we have set “Cultivate tomorrow’s leaders” as one of the project themes that we will pursue to foster sustainable management. Specifically, through a Groupsocial contribution activity called the “Hankyu Hanshin Dreams and Communities of the Future Project,” we are creating opportunities for the healthy development of ambitious children, upon whose shoulders the task of building the communities of the futurerests. For example, we provide children with opportunities to learn about various jobs so they can understand what it means towork and identify their ideal occupation. We are also implementing programs to increase children’s interest in nature and the environment and support NPOs that work to improve the circumstances of children in need.

11

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

2. Ensure Business Safety and Reliability
2. 安全・安心への取組

1. 人権の尊重

Approach

The Hankyu Hanshin Holdings Group puts “Safe, reliable infrastructure” at the top of the priority issues for sustainable management.
All of the Group’s business activities based on railway operations are rooted in the belief that “Safe, reliable infrastructure” isthe core of its businesses, on which it should place the highest priority to gain the trust of society. With the mission and pride ofproviding safety and reliableness to our customers in railway operations, where we are entrusted with their lives, as well as otheroperations, we always pursue safety and reliableness with the concerted effort of the Group. We also aim to build a safe anddisaster-resistant infrastructure so that we can respond as much as possible to diverse requests from society with regard to risks
that may threaten our business continuity, such as infectious diseases and natural disasters.

TargetIndicator

Range

TargetFY2023 Results

Number of culpable
incidents in railway
operations business

Hankyu Corporation,
Hanshin Electric Railway,
KITA-OSAKA KYUKO
RAILWAY, Nose Electric
Railway

Maintain at zero0 incidents

Initiatives
Urban Transportation
In our Railway Business, we promote the following initiatives for safety and reliable infrastructure.
(1) Eliminate accidents and improve safety
By type

Purpose

Fall prevention
Emergency alarm• Emergency train stop button• Fall alarm system

Overspeed prevention• ATS: Automatic train stop system

Fall prevention• Large partition board

Misoperation prevention• System to prevent the misoperation of doors

Prevention of secondary
damage• Protection radio equipment

Abnormality detection• Obstacle detector

Emergency alarm• Grade crossing emergency alarm system

Developing employees
who value safety• Enhancement of safety awareness through patrol of work-site departments and exchange of views with employees by top management• Establishment of a training institute, a human resources development
center, and a safety exhibition room to learn about past accidents• Implementation of safety conferences and training to improve skills related to the repair and maintenance of railway facilities

Enlightening customers• Implementation of the Accident Prevention Campaign (asking those passing grade crossings for their cooperation in confirming safety)

Platform

Infrastructure

Train carGradecrossing

Personnel

Examples of specific initiatives / equipment• Platform door • Platform gap filler rubber• Braille block with an inward line • CP (Color Psychology) line*• Vertical handrail• Detector for unclosed grade crossing bars

* Designed to provide passengers with both a visual and psychological warning of the dangers of walking near the edge of the platform and to urge them tostay behind the line.

12

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIALENVIRONMENT
3. Contribute to Local
Communities

2. Ensure Business Safety
and Reliability

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety(2) Promote actions to prevent/reduce accidents and respond promptly and properly to accidents if they occur
PurposeExamples of specific initiatives / equipment

Initiatives fordisaster prevention
and mitigation• Removal of concrete block walls on station platforms and other locations and installation of fences in
preparation for collapse due to an earthquake• Landslide prevention work alongside of railroad tracks in preparation for heavy rain
• Seismic reinforcement of elevated track pillars, etc.

Initiatives for prompt
evacuation guidanceand early resumptionof operation• Installation of ladders and other tools to smoothly guide customers to evacuate from trains that havestopped in the event of an earthquake, etc.
• Introduction of a system to monitor the condition of bridges and bridge piers• Use of the weather information system to ensure safety in the operation of trains in abnormal weather• Joint training with the local fire departments

Initiatives forenhancing information provision• Provision of timely information on the possibility of implementation of planned suspension of train
services and its content• Promotion of information provision (through the use of apps) in emergencies and multilingual support
for information provision (Deployment of tablets with a multilingual voice translation system at stations
and their use for train announcements)

The following four companies engaged in railway operations have announced their safety policies and initiatives to ensure thesafety of transportation in their safety reports. Please refer to the safety reports for details of each company’s initiatives.
Hankyu Corporation, Hanshin Electric Railway, KITA-OSAKA KYUKO RAILWAY, Nose Electric Railway WEB
Capital investment in railway operation business (Hankyu Corporation and Hanshin Electric Railway)(¥ billion)

FY2021

Hankyu Corporation

FY2022

FY2023

19.0

19.1

15.6

Safety related

12.6

12.2

11.5

Others

6.4

6.9

4.1

Hanshin Electric Railway

4.1

6.5

4.7

Safety related

3.5

4.8

3.1

Others

0.6

1.7

1.6

As a railway operator, the Group provides a form of public
infrastructure. We therefore make giving priority to the safetyof our customers a fundamental policy of management, andconduct ongoing safety-related capital investments in ourrailway operation business accordingly. Safety-related capital
investments in FY2023 totaled 11.5 billion yen at Hankyu
Corporation and 3.1 billion yen at Hanshin Electric Railway.
These investments were primarily used for the constructionof new trains and renovation of existing ones, as well as for
installing platform screen doors, further improving stations,and seismically reinforcing elevated tracks.

Note: The total length of lines operated is 143.6 km for Hankyu Corporation and 48.9 km for Hanshin Electric Railway.

Real Estate
Hankyu Hanshin Properties and Hankyu Hanshin Building Management sequentially offer an emergency and rescue course toemployees engaged in the real estate leasing business so that customers and workers can use their commercial facilities andoffice buildings with peace of mind. In addition, in order for all building users, including people with disabilities and non-Japanese
speakers, to evacuate safely in the event of a disaster, they have installed multilingual broadcasting equipment for use in emergencies and have deployed communication tools that complement the equipment. They also work to enhance evacuation guidance education and training for the building management staff and tenant employees and have secured a certain amount ofdisaster relief supplies for building management personnel involved in disaster recovery activities.

Entertainment
At the Hanshin Koshien Stadium, which is the venue for professional baseball games and large-scale events, we have increased
the number of air conditioners and have reviewed the holding guidelines through discussions with organizers to prevent customers from having a heat stroke. Also, to make the Stadium even safer for spectators, we will increase the height of the infieldsafety fence by 1.5 m from the current 3.6 m to 5.1 m after the season for 2023 is over. Moreover, we are planning to expand thearea of the roof known an “Ginsan,” which now covers only part of the infield seats so that it will also cover the big stands.
At the Takarazuka Grand Theater, the Tokyo Takarazuka Theater, and the Umeda Arts Theater, we have carried out seismic
reinforcement work for the necessary locations so that customers can enjoy the performances with peace of mind. We have also
regularly offered employee education programs in preparation for disaster response and have secured a certain amount ofdisaster relief supplies.

Information and Communication Technology
Bay Communications, HANSHIN CABLE ENGINEERING and ITEC HANKYU HANSHIN contribute to disaster prevention andmitigation in local communities by signing a disaster prevention agreement with local governments to create an environment
where they can use disaster prevention terminal devices.

13

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

TravelTo realize safe and comfortable travel for customers, Hankyu Travel International works to strengthen safe travel management byregularly evaluating the suitability of safety measures and quality control, reviewing the serious accident response manual andother rules, and taking precautionary measures, including conducting accident response training.
Additionally, the company has concluded the Agreement on Travel Arrangements and Volunteer Cooperation in Times ofDisaster with local governments, and will contribute to disaster prevention measures and economic revitalization in local communities. This will be done by making arrangements for lodging, transportation, and more for employees of related organizations
who support the local government in the event of a disaster, making arrangements for dispersed evacuation to inns and hotels,
for which the need is increasing as a means of combating the spread of infectious disease, and supporting other volunteer
activities by its employees.

International Transportation
Aiming to build a supply chain that guarantees advanced transportation quality and safety in pharmaceutical logistics, Hankyu
Hanshin Express has obtained CEIV Pharma*1 certification under the quality certification program for the international transportation of pharmaceuticals, promoted by IATA (International Air Transport Association), at Kansai International Airport and Narita
International Airport in June 2019 and March 2021, respectively. In June 2022, three years after obtaining the certification at Kansai International Airport, the company reacquired this certification including for its cold storage facilities at the Hankyu Hanshin
Osaka Cargo Terminal (Suminoe-ku, Osaka city). Moreover, in January 2023, the Frankfurt branch of the company’s subsidiary inGermany became the first in the Group to obtain GDP certification*2.
*1: CEIV Pharma: Abbreviation for “The Center of Excellence for Independent Validation in Pharmaceutical Logistics.” A globally unified standard establishedby the IATA as a transportation quality certification that conforms to GDP (Good Distribution Practice, a distribution standard that guarantees the quality ofpharmaceutical distribution processes).
*2: Good Distribution Practice (GDP) describes the standards for appropriate distribution in the pharmaceutical supply chain and is intended to ensure that thequality of medicines is maintained during transportation and storage. Each country has its own standards, but the GDP Guidelines set by the World HealthOrganization (WHO) in 2010 are among the first international standards set for distribution and are legislated in the EU.

14

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

3. Contribute to Local Communities
1. 人権の尊重

Approach

3. 地域社会への貢献

Since its foundation, the Hankyu Hanshin Holdings Group has promoted high-quality community development based on its
Railway Business and Real Estate Business. The Group has also contributed to local communities, including in areas along theHankyu and Hanshin lines, through its social contribution initiatives, Hankyu Hanshin Dreams and Communities of the Future
Project. The focus has been on the priority fields of “Sustainable Community Development” and “Tomorrow’s Leader Development,” which are highly compatible with its management strategy. Moreover, the Group is working to solve social issues for local
communities while promoting dialogue and cooperation with our business partners (including tenants), civic groups, government
authorities, and other members of the local community.
Through our business and social contribution activities, the Group will continue to contribute to local communities and work
toward a sustainable future, one that offers a fulfilling, joyful life to all and inspires the next generation to dream with hope. We
believe that promoting high-quality community development through our local community initiatives will lead to higher customer
satisfaction, and eventually to the sustainable improvement of the Group’s corporate value and brand value.

Initiatives
Community Development Initiatives
We uphold our commitment to “Make our line-side communities the absolute best among the Kansai networks” as one of ourstrategies in the Long-Term Vision.
In our Real Estate Business, we contribute to the creation of thriving communities by promoting initiatives to increase the value of cities, create safe and comfortable facilities, and solve social issues for local communities.

Systematic renovation in the Umeda area of Osaka
The Group has been working to enhance the value of the Umeda area of Osaka, the Group’s most important site, by systematically rejuvenating its own assets, including by the replacement/refurbishment of its buildings and reviewing the functions to be
introduced to properties according to long-term plans. In March 2022, the Osaka Umeda Twin Towers South opened its officezones and introduced facilities that support diverse work styles, such as WELLCO, a dedicated floor for office workers featuringcafé, lounge, fitness center, and so on.

Urban regeneration project
The Group believes that it can contribute to the sustainable development of local communities through urban regeneration projects.
By making maximum use of the know-how that we have accumulated in community building, we are working for urban regeneration
development, making the most of the potential of the relevant area, while listening to the voices of local residents and helping
resolve various issues, including increasing the attractiveness of local communities and focusing on disaster and crime prevention.

ExampleIn front of Nishinomiya-kitaguchi Station on the Hankyu Line

Hankyu Corporation has promoted its community building initiative centered around Hankyu
Nishinomiya Gardens, a commercial complex opened in 2008 under the concept of “creating a community in which people living in the area can feel relaxed, like in their gardens,” asa regeneration project for the former site of Hankyu Nishinomiya Stadium, which was closed
in 2002. Various educational institutions invited by the company, including Konan University
and Kwansei Gakuin University Law School, are located in the adjacent area. The Hyogo
Performing Arts Center has been built on a nearby site provided by the company. These
lead to the enhancement of cultural and educational facilities in the area.
Hankyu Nishinomiya Gardens
ExampleOsaka Station North area (Umekita)

As a regeneration project for the former site of Umeda Freight Station, 12 developers, including Hankyu Corporation, opened
GRAND FRONT OSAKA in 2013 with the concept of “an urban area where encounters with a diversity of people and a variety ofstimulation will nurture new ideas and innovation.” At the Umekita Plaza, a relaxing space of 10,000 m2, festivals unique to Osakaand the Kansai region and daily events are held with the aim of making it a place where a wide range of people, from children to theelderly, can gather. The Knowledge Capital provides places and opportunities for business people, researchers, creators, andgeneral users to create new value by fusing their sensibilities and technologies, as a hub of intellectual creative activities.

15

SUSTAINABILITY IN GENERAL
1. Respect for Human
RightsExampleSOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Kobe Sannomiya Hankyu Building

Hankyu Corporation and Hankyu Hanshin Properties simultaneously proceeded with the reconstruction of the east wing of the Kobe
Hankyu Building, which was partially destroyed by the 1995 Great Hanshin-Awaji Earthquake, and the renovation of the stores
under the elevated railway station (west side). On completion of these works in 2021, the building opened as the new Kobe Sannomiya Hankyu Building. It houses unique restaurants and the remm plus Kobe Sannomiya, a lodging-style hotel operated by theGroup, enhancing the area’s attractiveness as a new landmark in Sannomiya.
ExampleOther

In the Tomihisa Cross project (Nishi Tomihisa district first-class urban regeneration), which is a ultra-high-rise complex regeneration
project boasting the highest height and largest scale (at the time of completion) in an area inside the JR Yamanote Line, residential
facilities, including a 55-story condominium, as well as commercial and public facilities, including a large-scale supermarket, acertified child center, and an emergency supplies warehouse, have been established in a historic area located almost in the centerof Shinjuku-ku based on the concept of “the most comfortable area in the world.”

Establish safe and comfortable commercial and office buildings• Promoting a barrier-free environment in facilities
In our Real Estate Business, we aim to create facilities that everyone can use safely and comfortably. In particular, since FY2008, we
have been working to create facilities that are easy to access and use for all customers, including those with disabilities, in compliance with the barrier-free law and other relevant laws and regulations for newly developed commercial facilities and office buildings.
• Considering access to commercial facilities and office buildings during design and development stages
The Group has promoted its community building initiative centering on the Railway Business and has developed the Real EstateBusiness as a means of developing our line-side areas. We have designed and developed many commercial facilities and officebuildings in consideration of access via public transport, providing users with convenience and safety due to their location andcontributing to reducing the environmental impact associated with people’s movement. For example, the Kobe Sannomiya
Hankyu Building has considered user convenience and comfort by developing a commercial zone on the lower floors, ensuring
direct access to multiple train stations, and providing an observation area that office workers can utilize.
• Creating a more comfortable and satisfying work environment for tenant employees in commercial facilities and officebuildings
Tenant employees working in the Group’s commercial facilities and office buildings are important partners for the Group. Under
the belief that creating a more comfortable and satisfying work environment for tenant employees leads to their retention andeventually to an increase in the value of facilities, we promote the following initiatives as a facilities manager.
• Holding a customer service role-playing contest and presenting a commendation
A customer service role-playing contest is annually held at each large-scale commercial facility. This helps improve the skills
and motivation of tenant employees partly because winners are qualified for the SC Customer Service Role-Playing Contest(hosted by the Japan Council of Shopping Centers).
• Hankyu Hanshin Workers’ Service
In the Umeda area of Osaka, which is one of the major business areas in the Kansai region, we launched in October 2015 theHankyu Hanshin Workers’ Service, a service program available exclusively to people working in the Group’s office buildings.
Based on the concept of “Make work fun!” the program is aimed at helping office workers create their communities and providing welfare benefits to them through organizing various events in which they can interact with each other beyond the framework of companies, and offering them discount coupon for dining and shopping at the Group’s commercial facilities.

Increasing the attractiveness of local communities through collaboration with stakeholders
In cooperation with our customers, as well as local communities including companies and tenants, the Group is implementing
measures for “disaster prevention,” “creation of good urban environments,” and “creation of community liveliness” mainly in theReal Property Business, thereby helping solve local issues and contributing to revitalizing the communities and increasing their
attractiveness.
Moreover, as a corporate group that provides public transportation services, Hankyu Hanshin Holdings, Inc. is working forthe creation of safe, secure and attractive communities in collaboration with local governments as well as for the realization of asustainable society as envisioned by the SDGs. In 2022, the Company concluded comprehensive partnership agreements with
Toyonaka city, Minoh city, and Takarazuka city.

16

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety• Disaster Prevention
Together with West Japan Railway Company, GRAND FRONT OSAKA TMO, andOsaka Metro Co., Ltd., we have launched the Umeda Bo-sai (disaster prevention)
Scrum, a disaster prevention campaign targeting visitors to the Umeda area and tenant
employees, to increase emergency response capability* in the area.
The Nishi-Umeda underpass management council, for which Hanshin Electric
Railway serves as secretariat, is leading activities to increase safety and security in the Nishi-Umeda area. Specifically, landowners who are members of the council are enhancing their disaster control measures for their sites and buildings and making joint
preparations against disasters toward building a collaborative disaster prevention system for the entire area.
* Dissemination of information using digital services, disaster prevention seminars, and distribution of disaster prevention awareness tools in cooperation with tenants.

• Creation of Good Urban Environments
Since April 2022, the Group has been conducting area management activities targeting the Umeda 1-chome area as part of apublic-private partnership initiative. This initiative aims to create a space where people feel comfortable and want to walk, thus
enhancing the value of the area. Using the proceeds from the placement of advertising and others in the above- and below-ground road space in the area, we are working to maintain and manage the quality of road facilities across the area, conducting disaster control activities, and creating lively public spaces.
• Creation of Community LivelinessWe are cooperating with companies, tenants, local organizations, schools, and governments in the
Nishi-Umeda and Chayamachi areas to create a lively atmosphere and make visitors move aroundand enjoy more in the area. As part of these efforts, we have held candle art events to reflect on therealization of a sustainable society. At these events, we turn off the lights and instead illuminate thewhole area with candles. We have also held Yukata-themed events and other events to provide an
opportunity for people to think about Japanese culture, SDGs, and urban development.
Social Contribution Initiatives “Hankyu Hanshin Dreams and Communities of the Future Project”
As part of the Group’s commitment to creating communities that people will truly want to live in, we
have operated the Hankyu Hanshin Dreams and Communities of the Future Project WEB since 2009.
The Corporate Sustainability Department, which serves as the secretariat of the Corporate Sustainability Committee, cooperates with each Group company to promote the Group social contribution
initiatives related to the priority fields of this project while taking advantage of the business characteristics of each company.

Basic policy
We intend to promote the creation of communities along our line-side areas that people will truly
want to live in.

Priority fields
Our links to the future: “Sustainable Community Development” and “Tomorrow’s Leader Development”

Sustainable Community Development

Tomorrow’s Leader Development

As a Group with strong local roots, we are committed to sustainablecommunity building with environment-friendly developments that provide
local residents with security, peace of mind, and cultural enrichment.

We are creating opportunities for the healthy development of ambitious
children, upon whose shoulders the task of building the communities ofthe future rests.

Themes of specific initiatives

Themes of specific initiatives

1. Creating a safe, comfortable, and environmentally aware local
community
2. Contributing to the preservation of biodiversity and the naturalenvironment
3. Promoting sustainable lifestyles
4. Preserving, utilizing, and developing local historical and cultural
resources
5. Mitigating climate change
6. Contributing to a circular economy committed to reducing waste, etc.

1. Enabling children to experience and learn about nature and ecology
2. Fostering mental enrichment in children through cultural and artistic activities
3. Supporting the healthy development of children through sports
4. Enabling children to gain a deeper understanding of society and theircommunities
5. Cultivating in children a sense of compassion and acknowledgement ofdiversity
6. Instilling in children the wisdom of their parents and grandparents
7. Supporting children with disabilities, children orphaned by traffic
accidents or disasters, children in single-parent families, and children insocial welfare care

17

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

Activities• Promotion of CSR activities at each Group company (collaboration within the Group companies)
Each Group company uses its know-how to engage in a variety of social contribution initiatives that lead to “Sustainable Community Development” and “Tomorrow’s Leader Development,” which are the priority fields of the project. We promoted the social
contribution initiatives of each Group company through public relations, sponsorships, and additional contributions. In FY2023,
107 initiatives were certified.
Of these, the Hankyu Hanshin Dreams and Communities Challenge Troop, a hands-on learning program for elementary school
pupils held in summer, has been implemented since FY2011 as a social contribution initiative that leverages Group unity. In the
Hankyu Dreams and Communities Exciting Work Program, a school visiting class program for elementary school pupils conductedby Hankyu Corporation, employees with management experience from the company visit elementary schools to convey the spirit ofchallenge of the company’s founder, Ichizo Kobayashi, and the history of community development. The purpose of the program is tofoster children’s attachment to their community and their dreams for the future. Up to FY2023, the staff have visited a total of 368
schools and have provided approximately 32,000 children with the opportunity to think about their future jobs. These two programs
received the Minister’s Award (Grand Prix) at the 8th Career Education Awards held by the Ministry of Economy, Trade, and Industry
in FY2018, and the highest award (the Minister’s Award) at the “Youth Experience Activity Promotion Company Award” sponsoredby the Ministry of Education, Culture, Sports, Science and Technology in FY2021.
• Other examples: Emergency shelters for children offered at our Group’s taxis, sales offices, and stores for crime prevention in
local communities; Customer appreciation events at train depots and factory.

• Support for civic groups through financial assistance and cooperation in public relations (collaboration with local communities)
We operate the Hankyu Hanshin Dreams and Communities of the Future Fund, through which we subsidize civic groups in ourline-side areas through donations raised by Group employees and additional contributions of the same amount from the company. In FY2023, we donated a total of 10 million yen to 17 non-profit organizations (cumulative total of donations/grants: 109.06
million yen,183 groups).
We have collaborated with the subsidized civic groups to promote various actions, such as holding events for customers.
• Example: Hands-on workshops and events held in collaboration between civic groups and Group companies at the Group’scommercial facilities and railway stations• Promotion of social contribution initiatives by the Group employees
To support for current and past Group employees to participate in and to continue social contribution initiatives, we give theminformation on the initiatives through the Group PR magazines and e-mail newsletters and opportunities for volunteering insideand outside the company. Additionally, Hankyu Hanshin Holdings, Inc. and some Group companies have a volunteer leavesystem. In the Company, employees can take up to five days of volunteer leave per year.
• Example: Volunteer group support fund for supporting the volunteer activities of current and past employees; implementation ofa project to contribute to the solution of social issues in cooperation with Group employees
Examples of donations made by the Group through social contribution activities by Group employees
Details

Amount of donation (FY2023)

Donation to contribute to the solution of social issues in cooperation with Group employees (including donation to support children living in disaster-afflicted areas in Kumamoto and Fukushima Prefectures)
Donation to support volunteer activities in which Group employees participate on an
ongoing basis

1,215,000 yen• Operation of the Dreams and Communities of the Future SDGs Trains
To commemorate the 10th anniversary of the Hankyu Hanshin
Dreams and Communities of the Future Project, we launchedthe operation of the Dreams and Communities of the Future
SDGs Trains (Hankyu: three formations of trains; Hanshin: oneformation of trains) in May 2019 in cooperation with the national
and local governments as well as companies and civic groups
that are making advanced efforts to achieve the SDGs. Powered by substantive 100% renewable energy, the trains deliver
various messages toward the achievement of the SDGs. Since
the Tokyu Group joined this project in September 2020, theSDGs Trains have been operated in eastern and western Japan
under collaboration with a wider range of partners.

Hanshin Electric Railway

18

345,004 yen

Hankyu Railway

SUSTAINABILITY IN GENERALSOCIAL2. Ensure Business Safety
and Reliability

1. Respect for Human
RightsENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety• Dialogue with stakeholders
We emphasize dialogue with stakeholders to strengthen relationships of trust with them and to listen sincerely to social demands.
• Dialogue with customers: At workshops, seminars and other events in which customers are invited to participate, such as
Hankyu Hanshin Dreams and Communities Social Lab• Dialogue with civic groups: At the subsidy presentation ceremony of the Hankyu Hanshin Dreams and Communities of the
Future Fund, visits to subsidized groups, and regular online exchange meetings• Achievements through these initiatives
In this project, we regularly conduct a customer survey in cities and towns along our line-side areas. The FY2023 survey results
indicate that the more customers recognize the project and the SDGs Trains, the more they have a positive image of our Groupand a desire to live in our line-side areas.
(%)
100
80

69.1

60
40
20
0

87.6

80.6

43.7

46.3

49.3

19.3

47.7

31.3

23.2

65.3

64.8
47.1
36.6

35.7

30.4

27.0
25.4

53.6

84.9

39.9

29.6

37.8

28.2

Positive Desire
image to live

Positive Desire
image to live

Positive Desire
image to live

Positive Desire
image to live

Total

Those who
recognize
our Group

Those who
recognize theDreams andCommunities of
the Future Project

Those who
recognize
the SDGs Trains(n=1,000)(n=785)(n=409)(n=429)19• Positive image of
our Group• Desire to live in the line-side areasof the Hankyu and Hanshin lines■ I have■ I want to live

■ I slightly have

■ I slightly want to live

Survey target: Male and female residents aged 18 to 69 in 23
cities and towns along our line-side areas
Survey method: Random sampling survey through the internet
Number of respondents: 1,000
Survey period: March 3 to March 7, 2023

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

4. Employment and Labor Initiatives
Approach
4. 雇用・労働への取組

1. 人権の尊重

To provide better quality services to our customers, it is important to improve employee satisfaction and working conditions andcreate an environment where diverse human resources can demonstrate their individuality and abilities and play an active role
regardless of gender, age, life stage, or disability. The Hankyu Hanshin Holdings Group has set “Improve employee satisfaction
and create a more positive workplace” and “Promote diversity & inclusion” as some of the project themes for “Empowering
individuals,” a priority issue for sustainable management. In May 2021, we announced our agreement with the United Nations
Global Compact*1. Based on the ILO Declaration on Fundamental Principles and Rights at Work, we respect the Ten Principles of
the United Nations Global Compact and the basic rights of employees*2 and work to create a workplace where employees canwork with motivation according to the business characteristics of each company they work.
*1: United Nations Global Compact (UNGC): Announced at the World Economic Forum held in 1999, the UNGC is a pact that enshrines behavioral principles
for businesses around the world. It consists of ten principles in the areas of human rights, labor, the environment, and anti-corruption.
*2: Basic rights of workers stipulated by international rules and related laws and regulations, including the right to freedom of association, collective bargaining
and collective action, prohibition of inappropriate discrimination in employment and occupation, and wage levels above the minimum wage.

Management / Organization
Corporate Sustainability Committee
To promote cross-sectional sustainability throughout the Group, we have established the Corporate Sustainability Committee,
which convenes twice a year, is chaired by the Group CEO (responsible supervisor). The Committee deliberates on the directionof the Group’s response to issues related to the improvement of the working environment, etc. Particularly important topics arereported to, or brought up at, the Group Management Committee or Board of Directors, and incorporated into the Group’s
overall management framework.

Promotion of sustainability in the Company and Group companies
To promote the Group’s actions initiatives for sustainability based on the Sustainability Declaration, the Personnel and General
Affairs Division of the Company takes the lead in disseminating information that supports the initiatives of each Group company
and collecting information from each Group company. In addition, the personnel department of each Group company is working
to improve its own work environment.
Based on the idea that human resources are the sources necessary for the sustainable growth of the Group, the Company
and its six major companies have set the following target as a comprehensive indicator and have promoted the Group’s initiatives, checking the action plan and its achievements every fiscal year.

TargetIndicator

Range

TargetFY2023 Results

Employee satisfaction

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Always better than inprevious survey

3.57 out of 5*1

Percentage of women in
management positions

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Improve to around 10%(FY2031)

5.6%

Percentage of womenamong new hires

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Always 30% or more

34.6%

Paternity leave uptake
rate*2

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

100% (FY2026)

94.8%

Employment rate of people
with disabilities

19 companies to which thespecial subsidiary system
was applied*3

Always at or above
statutory employment rate

3.05%
(Above statutory
employment rate)*1: The survey is conducted biennially and the result indicated is for FY2022.
*2: Number of employees who took childcare leave or leave for childcare purposes in FY2023 / Number of male employees whose spouses gave birth in FY2023*3: Includes Hankyu Hanshin Holdings, Inc. and its six major companies.

20

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE
5. Occupational Health& Safety

4. Employment and Labor
Initiatives

Initiatives
Create a More Positive Workplace
Delivering messages to Group employees
In the Group, the Group CEO and the president of the Company regularly deliver top
messages to Group employees through Group magazines and other means. Coveringvarious topics, the messages are aimed at spreading the Group Management Philosophy,
conveying the medium-term management outlook as well as the importance of employee
satisfaction, which leads to customer satisfaction, and introducing the way of thinking that
the Group wants employees to value in their work.
In the Compliance Handbook distributed to all officers and employees of the Group, weconvey the message to Group employees that we should work not only to create a workplace where employees can work with peace of mind but also to ensure that individual
employees can lead a fulfilling life, harmonizing work and private life, under the theme of“Satisfying Working Environment.” The Compliance Handbook has been translated into
English so that its content can be communicated globally to employees who work overseas.

17

Compliance in Workplace

Compliance in Workplace

Satisfying Working
Environment

Balance your work and private life
1

I’ve finishedthe document.

3

2
You areso efficient.

Dad, today myclass had.....

I’m leaving now.
Goodbye.

●Working long hours for many consecutive days due to the need to work excessive overtime or on holidays
can harm the physical and mental health of workers. A company must create a workplace environment
where every employee can work comfortably. It is important for individual employees to keep a goodwork-life balance so that they can live a satisfying life.
●In addition to sexual harassment and power harassment, harassment on the basis of pregnancy, childbirth,childcare leave, or nursing-care leave has become a focus of public concern. Needless to say, neverharass others in such a manner. If you witness anyone suffering harassment, you must not ignore it. Takeaction to eliminate harassment in all forms in order to create a working environment where everyone canwork comfortably.
●The Sustainability Declaration includes “Empowering individuals” among its priority issues. Aim for an
inclusive workplace that values diversity and taps into individual talent.

Which office do you want to work in?
Ms. A’s office1

See you
tomorrow.

4

Next day

Good morning.
Let’s give it ourbest today!

■Make a distinction between your work hours and private hours. Do your best at work to fulfill
your duties. And then, after work hours and on holidays, enjoy your leisure time, and spend
satisfying private hours. Satisfaction in your private life will give you energy to improve yourjob performance.
■Excessively long working hours can harm your health. Various factors may cause long
working hours, but it is important for coworkers at each workplace to discuss how to share
work burdens among them and streamline their operations and make necessary
improvements. In addition, managers must properly control the working hours of theirsubordinates to prevent them from working long hours.
■If you plan to contact a coworker outside prescribed working hours, consider whether the
purpose is really urgent and what situation the coworker may be placed in before you
actually contact him/her.

Don’t talk to her.
She is such a.....
Buzz
-

buzz

2

Excuse me....

Ms. B’s office1

Thank you.
I can help you.
What can I dofor you?

2

Thank you.
I finished thething yourequested.

■Workplace harassment, including slandering, libeling, or ignoring a coworker, will not only
hurt the harassed person but also hinder operations at the workplace.
■A good working environment is necessary to bring out the greatest abilities of employees. It
is necessary for each one of us to understand and respect the individuality and dignity of
our colleagues.
Reference

Workplace harassment: The following acts constitute workplace harassment.

①Physical violence②Use of malicious language③Ignoring

Hitting, kicking, shoving, pushing, or pinchingsomeone, or any other form of physicaltransgression can be subject to a charge of
causing bodily injury.

Speaking ill or making fun of someone,
spreading an unfavorable rumor or using anyother forms of malicious language can be
subject to a charge of defamation.

The act of ignoring the existence ofsomeone, for example, by pretending
not to hear the voice of that person, falls
under this category.

46

47

Compliance Handbook (English edition)

Conducting a satisfaction survey to improve employee engagement
Hankyu Hanshin Holdings, Inc. and its six major companies aim to further improve employee satisfaction by conducting an
employee satisfaction survey designed by the Group every other year to monitor satisfaction and by reflecting the survey resultsin the Group’s initiatives (through the execution of a PDCA cycle). In this survey, employee satisfaction is defined as the averagevalue of the four items: willingness to contribute to your job, willingness to contribute to your workplace, willingness to contributeto the company, and maintenance and improvement of quality. These concern behaviors and results, and are designed to enable
the analysis of employee satisfaction from all angles by establishing items that explore employees’ current situations regarding
their jobs, workplaces, bosses, and the company. In view of the importance of grasping the level of employee engagement
across the entire Group, we decided to include 94 Group companies, including the consolidated subsidiaries and certain
non-consolidated subsidiaries and affiliates, in the survey target in and after FY2024.

Developing the personnel systems
The Group has developed the following personnel systems according to the status of each company.

• A system that contributes to providing incentives to employees• The Group has introduced an employee stock ownership plan for more than 40 Group companies, including the Company andits six major companies, to support the asset accumulation of employees and provide long-term incentives to them. The
number of employees participating in the employee stock ownership plan is 1,514 persons (as of March 2023).
• The Company has introduced a performance-based annual salary system (applied to about 20 to 30% of the total remuneration
depending on the job ranking) for all employees to clarify responsibility for business performance and provide incentives.

• A system that contributes to improving the standard of living of employees• A dependent allowance and other allowances are available in the salary system.
• A cafeteria plan (a selection-type employee benefit menu) and a mutual benefit association have been introduced in the employee benefit system.

Preventing overwork (reducing excessive working hours) and improving productivity
The Group strives to prevent overwork by complying with local laws and regulations and reducing excessive working hours. In Group
companies that consider to have high risk of overwork due to business characteristics or other reasons, measures to prevent andimprove overwork are promoted after deliberation by the Board of Directors of each company. For each workplace, we have adopted a working hours management method (in which the superior recognizes the working hours of employees by checking log records
on a PC, calling the roll, etc.) according to the workplace environment in order to ascertain the total working hours and reduce
excessive working hours. We also grasp the status of taking annual paid leave and encourage employees to take leave as needed.
The Group is also working to improve productivity. We have introduced common groupware with functions, such as schedule management and the sending and receiving of messages, which is used by approximately 13,000 employees. This enables
employees to communicate with each other quickly and accurately by sharing information across the Group, leading to improving
productivity and strengthening Group collaboration.

21

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Risk assessment regarding labor issues in new and existing operations
Under the Group’s risk management system, each Group company identifies risks by conducting risk assessments regarding
labor issues for employees in new and existing operations and then establishes and steadily implements appropriate measures
such as the management of working hours and ongoing anti-harassment education to reduce the risks identified. Moreover, theCompany annually conducts a survey of Group companies regarding their compliance with labor laws and regulations and theirlabor practices (working conditions, occupational safety and health, workplace environments and others) for continuous monitoring, thereby maintaining appropriate working environments and further improving them.

Collaboration with Group employees(labor management ∙ opportunities for employees to engage with company management)
The Group has concluded a collective agreement* and a labor-management agreement, after discussing important agreements
between labor and management, with the labor union or employee representatives of each company.
Hankyu Corporation and Hanshin Electric Railway, which are the major companies of the Group, have the Hankyu Corporation Labor Union and the Hanshin Electric Railway Labor Union, respectively, which are voluntarily formed by employees in eachcompany. A collective agreement has been signed between the companies and their labor unions to set wage levels, working
hours, and other treatment standards for employees. Every year, the companies engage in collective bargaining negotiation witheach labor union. Specifically, they carry out revision negotiations on wages in the spring and revision negotiations on working
conditions other than wages in the fall, and after sincere discussions between labor and management, we determine working
conditions, including wage levels. At each workplace, we ensure opportunities for employees to participate in improving theworkplace environment, including setting up opportunities for discussions and negotiations between labor and management on aregular basis, with the aim of creating a more comfortable work environment for employees.
Hankyu Hanshin Holdings, Inc. conclude a labor-management agreement with employee representatives elected by our
employees and exchange opinions as needed.
In each case, we regularly hold exchanges of views and negotiations based on the common understanding that we aim todevelop the entire Group, improve employee satisfaction and working conditions, and enhance work environments.
* Collective agreement: Documented agreement between labor and management regarding collective bargaining, personnel affairs (recruitment / promotion,transfer and leave / retirement), wages (standard wages / non-standard wages), working hours, Health & Safety, welfare, union activities, etc.

Human resource development
Developing employees in the workplace
Each Group company has a target management system to promote the growth of employees through work experience and a
regular interview system to draw out appropriate support from superiors as needed. Hankyu Hanshin Holdings, Inc. has a system toconduct monthly interviews (goal-setting interviews and as-needed interviews) with all employees below the rank of general manager by their immediate supervisors. This helps all employees achieve their individual goals and supports their career and skills development. Each Group company also provides employees with various career experiences while doing job rotation as needed.

Developing employees through training (each company)
Each Group company plans and implements training programs aimed at developing the capabilities required of employees tofulfill their expected roles, depending on the business characteristics of each company.
Hankyu Hanshin Holdings, Inc. implements the following human resource development programs for its employees.

• Leadership training and education on business administration
We provide a handpicked selection of current in-house managers with training named Hankyu Hanshin Business School. This
training is designed to help participants, who are the next generation of candidates for top management positions, to systematically acquire and develop the knowledge, values and leadership skills that they need to become top-level managers in the future.
We also hold a training seminar in which managerial staff and employees in the subsection chief class assess themselves tohone their leadership skills. Moreover, we provide employees in the unit chief and lower classes with opportunities to acquirebasic management knowledge, including that about marketing, management strategies and accounting.

• Digital education
We have introduced a digital education program for more support in the DX and IT fields to promote value creation in our business and develop human resources who can improve the productivity of each Group company and lead the organization.

22

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety• Dispatch to MBA graduate school / Support for degree acquisition
We dispatch employees selected from among the applicants to a graduate school to undergo an adult MBA program. Theydevelop a network of external contacts and acquire advanced and specialized knowledge and skills in all fields related to management by addressing research topics that they have set themselves. Upon completion of the program, participants can obtaina degree such as a Master of Business Administration.

• Learning support system (self-development support)*
A system that supports the independent learning of employees. We pay up to 220,000 yen per person per year for fees for attendanceat capacity building programs other than those organized by the company. We also support them to acquire certifications by providing
information on recommended certifications and establishing a remuneration system that rewards the acquisition of certifications.
*Available to all employees

Human resource development system of Hankyu Hanshin Holdings, Inc.
Training [Off-JT]
Stratified training

Evaluator training
Marketing & management strategy basic course
Labor law basic course
Finance practice basic course
Promotion training
How to think and communicate to get others’ consent

Congratulatory money system for qualification winners

Promotion training

New value creation
project research

Digital education

Change leadership program training-I

Correspondence education support system

Night
talk

Manager promotion training

External dispatch training■ Group new manager training

Learning support system

Change leadership program training-II
Training for employees in management positions

Seminar for employees returning from childcare leave

Work-life
design course

Hankyu Hanshin Business College

Goal-setting interview (as-needed interview)

From
New
2nd Unit chief classemployees year

Subsection
chief classManagerial staff■ Training for the Group’s new directors and auditors

Non-managerial employees

Self-development
supportObjective-based training

Dispatch to MBA graduate school

Training in theworkplace

Literacy education (by theme)*

Targets

Follow-up training for new employees
MentorsystemNew employee on-board training■ Group joint training for new employees■ Group joint training

Selective-type training (including those who are interested or apply)* Gradually introduced various literacy training programs, such as sustainability, compliance, and healthcare, for each employee levels in accordance with company policy.

Developing employees through training (common to the Group)
The Group has set up a Group joint training program for employees who have reached a milestone in their career (when they join
the company, when they are promoted to managerial position and director or auditor position). In addition, Hankyu Hanshin
Business Associate, which is broadly entrusted with the personnel and accounting operations of the Group, plans and holds
training programs (Hankyu Hanshin Learning Program / Hankyu Hanshin Business School) throughout the year for Group employees on themes such as leadership, human resource management and financial analysis, thereby supporting human resource
development across the Group. Through these actions, we create opportunities to foster employee awareness as a member of
the Group, strengthen cooperation between groups, and create opportunities for Group employees in a similar job class or
involved in a similar capacity building theme to work hard together.
• Number of employees who participated in the Hankyu Hanshin Learning Program (total): 2,160 persons (FY2023)• Number of employees who participated in the Hankyu Hanshin Business School (total): 114 persons (FY2023)

Employee award system
The Group has established the Hankyu Hanshin Group Awards, an employee award system that honors the active efforts of
employees based on the values of the Group Management Philosophy on a group-wide basis. The Best Service Award, the Nice
Partner Award, the Best Innovation Award, and the Synergy Award are annually granted to initiatives based on values, such as
customer first, foresight, and creativity, and to group joint initiatives that have brought a remarkable synergistic effect. Certificatesof commendation and prizes are granted to award winners, who are introduced in a company newsletter and a Group magazine.

23

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Promote Diversity & Inclusion
Enhancement of measures to support work-life balanceTo create a comfortable workplace environment for employees who need to balance work with childcare, nursing care, andmedical treatment, each Group company has established the following systems that support the balance of work and personal
life as needed and has taken supportive measures.
•C onducting reinstatement support seminars for those who take childcare leave•E stablishing systems that realize flexible work styles (including allowing employees to select short working hours and set theperiod of short-time work beyond the legal limit, to acquire annual paid leave on a half day and hourly basis, to use staggered
working hours, to work on a flextime schedule, and to work from home)•D istributing leaflets that introduce systems that support the balance of work and childcare / nursing care and handbooks forsupporting the balance of work and childcare (to the relevant employees and their superiors)•P roviding information and encouraging employees to take childcare leave, etc.

Career opportunities for female employees (gender diversity and equal opportunities)
Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace, the Group has set targets relating
to female employees, including increasing the percentage of women among new hires and the percentage of women in management positions, and is striving to create an environment where female employees can play an active role.

Active recruitment of female employees and support for career development
The Group is actively working toward the recruitment of women by sharing stories describing how female employees are thriving
at the Group and outlining our support system for balancing work and childcare on the recruitment page on our website and atrecruitment briefing sessions.
In addition, we help individual female employees develop their career through diverse work experience by assigning them tovarious workplaces. We also help them build their capacity by selecting target persons, regardless of their gender or otherattributes, for training programs conducted by each Group Company according to its business characteristics.

Support for seniors (age diversity and equal opportunities)
The Company and some Group companies have created an environment that supports diverse work styles and lifestyles for
employees aged 60 and over.
•H ankyu Hanshin Holdings, Inc.: Employees who wish to prepare for their second career are allowed to choose short working
hours or days and to work a second job or a separate job. In addition, employees aged 50 are provided the opportunity toattend the work-life design course, in which participants think about their future work styles and lifestyles through the review of
their whole career, on the milestone of turning 50 years old, when they start thinking about their work styles and lifestyles after
the age of 60.
•H ankyu Corporation: The Life Plan Seminar is held to improve employees’ understanding of retirement benefits and pensions
and a reemployment system after retirement as an opportunity to think about work styles and life plans after retirement.

Employment promotion for people with disabilities
Initiatives of special subsidiaries
To create an environment where people with disabilities can work comfortably and to actively create employment opportunities
for people with disabilities in the future, the Group works to hire people with disabilities, with the special subsidiary company“Assist Hankyu Hanshin” playing a central role.
Assist Hankyu Hanshin is entrusted with work from each Group company, and employees with disabilities perform tasks
according to their individual aptitudes. The company provides personalized education and supports so that employees withdisabilities can experience the joy of growing through their work.
In recognition of these initiatives so far, the company received the Heartful Corporate Challenge Support Award from Osaka
prefectural government in 2019. In December 2020, it also received the first certification in Osaka Prefecture under the Certification System for Excellent Small and Medium-sized Business Owners Regarding Employment of People with Disabilities* (Monisu
Certification System).
* Certification System for Excellent Small and Medium-sized Business Owners Regarding Employment of People with Disabilities: The Minister of Health,Labour and Welfare certifies SMEs excelling in implementing initiatives to promote the employment of people with disabilities and stabilize their employment.

24

SUSTAINABILITY IN GENERALSOCIAL2. Ensure Business Safety
and Reliability

1. Respect for Human
RightsENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Employment support for people with disabilities
The Group has introduced a system to support the employment of people with disabilities who attend employment transition
support institutions and the like by providing them with work experience through workplace training within the Group. Thissystem provides people with disabilities with the opportunity to experience a real workplace, and better understanding of theGroup, leading to their employment in Group companies. The system has earned a positive reputation among employmenttransition support institutions and the like.

Spread of diversity & inclusion awareness
The Group is conducting human rights training for those newly appointed at each level including new directors, new auditors,
new managers, and new employees, as well as human rights representatives from each Group company in order to help themdevelop a better instinct for human rights and is making efforts to spread diversity & inclusion awareness.
In particular, in the international transportation core business, which is operated globally, many local employees work at our
148 bases in 28 countries and regions overseas (as of September 2023). Thus, we aim to create a corporate culture in which
diverse human resources can each play an active role.

DATA
Work environment
Indicator

Targets

Number of employees*1

Unit

FY2023

Hankyu Hanshin Holdings, Inc.
and all its consolidated subsidiaries(as of March 31, 2023)

person(s)Hankyu Hanshin Holdings, Inc. andits consolidated subsidiaries in Japan%

Hours in excess of statutory working hours per month(excluding holidays)

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

hour(s)20.6

Annual paid leave acquisition rate Hankyu Hanshin Holdings, Inc. and its 6 major companies

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

%

75.1

Number of temporary employees*2
Turnover rate of employees
Voluntary turnover rate*3

22,527
8,207
6.6
5.6

*1: Number of people employed. Excluding those on secondment elsewhere and including those seconded to us*2: Average number of employees per year; Including contract employees and fixed-term contract employees and excluding dispatched employees*3: The voluntary turnover rate means the turnover rate of employees who voluntarily resigned, excluding those who retired at the retirement age or who
resigned from their positions in order to take up promotions to become officers.

Human resource development
Training record *1
Indicator

Targets

Number of employees that participated indevelopment training (total)

Unitperson(s)Total hours of development training
Average hours of development training per
employee*2
Stratified training for managerial employeesType oftraining

FY202318,652
110,624

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

11.13(1.39 day)hour(s)0.73

Stratified training for non-managerial employees

4.43

Company-designated training

4.02

Public and voluntary training

1.95*1: Off-JT organized by the Personnel Department*2: Total hours of development training/Total number of employees

25

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIALENVIRONMENT

2. Ensure Business Safety
and Reliability

3. Contribute to Local
Communities

GOVERNANCE
5. Occupational Health& Safety

4. Employment and Labor
Initiatives

Diversity & inclusion
Workforce composition at Hankyu Hanshin Holdings, Inc. and its 6 major companies (As of March 31, 2023)
Indicator

Unit

Men
Number of
Employees*1

Number ofmanagement
employees*1·2

Women
Percentageof women

HankyuCorporation

HanshinElectric
Railway

1,099

3,058

1,143

337

196

329

108

15.1

9.7

8.6

person(s)%HankyuHanshin
Express

HankyuHanshinHotels

667

542

977

7,823

131

443

293

620

2,120

28.0

39.9

35.1

38.8

21.3

Total

person(s)

684

89

265

231

258

1,527

Women

person(s)

44

5

11

7

24

91

%

6.0

5.3

4.0

2.9

8.5

5.6

Percentageof women

Women
Percentageof women

person(s)%MenAverage years
employed by
the company

HankyuHankyuHanshin Travel InProperties ternational

Men

Men
Number of
new recruits*3

HankyuHanshinHoldings

Womenyear(s)Genderdifference

26

74

21

22

9

23

1

176

11

16

3

15

8

39

1

93

29.7

17.8

12.5

40.5

47.1

62.9

50.0

34.6

21.5

23.1

21.8

13.6

22.0

23.2

18.3

21.6

10.5

14.4

16.3

9.9

14.4

11.0

10.1

12.1

11.0

8.7

5.5

3.7

7.6

12.2

8.2

9.5

*1: Including those on secondment elsewhere; excluding those seconded to us*2: Since all managerial staff members at Hankyu Corporation and Hanshin Electric Railway are seconded from the Company, the total number at the threecompanies is shown.
*3: Includes new graduate recruits and mid-career recruits who joined the company in FY2023.

Results in promoting diversity & inclusion
Indicator

Men
Number of employees

Women
Percentage of women

Employment rate of people with disabilities

Childcare leave uptake rate*2
Number of employees whotake nursing care leave

Men
Women
Men
Women

Range

Unit

Hankyu Hanshin Holdings, Inc.
and its consolidated subsidiaries inJapan (as of March 31, 2023)

person(s)FY2023

15,783
4,493

%

28.5

19 companies to which the special
subsidiary system was applied *1(as of June 1, 2022)

%

3.05

Hankyu Hanshin Holdings, Inc.
and its 6 major companies%

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

person(s)

94.8
94.6
1
2

*1: Includes Hankyu Hanshin Holdings, Inc. and its 6 major companies.
*2:	Number of employees who took childcare leave or leave for childcare purposes in FY2023 / Number of employees who gave birth or whose spouse gavebirth in FY2023

26

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

5. Occupational Health & Safety
Approach

1. 人権の尊重

5. 労働安全衛生（健康と安全）

The Group, which operates many labor-intensive businesses, recognizes that the safety and health of its employees are important for sustainable growth and has set “Promote health and productivity management” as one of the project themes for “Empowering individuals,” a priority issue for sustainable management. To protect the safety of all people involved in the Group’s businessactivities and to support the maintenance of physical and mental health of Group employees, which is the basis for their activities, we comply with the Industrial Health & Safety Act and other relevant laws and regulations. We have also established the
Occupational Health & Safety Management Rules and the Declaration on Employee Health Management to ensure safety management, prevent occupational accidents, improve the health awareness of individual employees, and create a comfortableworkplace environment.

The Hankyu Hanshin Holdings Group’s Declaration on Employee Health Management
The Hankyu Hanshin Holdings Group believes that the mental and physical well-being of employees and their families remains the source of happiness and the cornerstone of the Group’s prosperous future. In addition, in order to provide ourcustomers with safety and comfort as well as dreams and excitement, it is paramount that we enable everyone to fully
demonstrate their diverse personalities and abilities in good health.
To achieve this goal, we will maintain high awareness of our own well-being and work with our colleagues in the workplace and their families to promote good health.
The Hankyu Hanshin Holdings Group declares that it will actively support the well-being of each individual and strive tocreate a workplace environment in which all can live and work in good health and with motivation. The Group will pursue
these initiatives under the slogan “Hankyu Hanshin Wellness Challenge*.”Yasuo Shimada
President and Representative Director
Officer in Charge of Health Management
Hankyu Hanshin Holdings, Inc.

* Priority measures policy for “Hankyu Hanshin Wellness Challenge”:“1. Physical health,” “2. Mental health,”: and “3. Workplace health”

Management / Organization
Corporate Sustainability Committee
To promote cross-sectional sustainability throughout the Group, we have established the Corporate Sustainability Committee,
which is chaired by the Group CEO (supervisor). The Committee, which convenes twice a year, deliberates on the direction of theGroup’s response to issues related to occupational health and safety. Particularly important topics are reported to, or brought up
at, the Group Management Committee or Board of Directors, and incorporated into the Group’s overall management framework.

Health Management Promotion Committee
We have our Health Management Promotion Committee in place to strategically foster health management as part of our occupational health and safety promotion measures. The Committee, which is chaired by the Group CEO, meets twice a year. At themeeting, the president and representative director of Hankyu Hanshin Holdings as well as the representative directors of the six
major companies and their directors in charge of human resources discuss and decide on health management-related issues,
including the implementation of plans and systems, to promote health management across the Group. Moreover, an outside
director of the Company who has expertise in public health and health management and is also a member of the Company’s
Audit & Supervisory Committee attends the meeting to increase its effectiveness. At each of the Company and its six major
companies, the president and representative director is held responsible for health management. At other Group companies,
health management organizations are formed as required for the promotion of health management.

27

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Occupational Health & Safety Committee
Based on the Industrial Safety and Health Act, the Group has set up an Occupational Health & Safety Committee and othercommittees at each company and business site, which its employees participate, according to the type of business and thenumber of employees, to oversee and promote the Health & Safety activities of each company. The Occupational Health & Safety
Committee of Hankyu Hanshin Holdings, Inc. holds monthly meetings chaired by the director in charge of the Personnel andGeneral Affairs Division and consists of the same number of members from labor and management excluding the chairperson,and supervises and promotes health and safety activities. In the meeting, the head of each organization and employee representatives discuss topics related to occupational safety and health to build effective initiatives to address any issues.

TargetIndicator

Range

TargetFY2023 Results

Specific health guidance
implementation rate

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

60% or more (FY2026)

55.8%

Smoking prevalence

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

15% or less (FY2026)

18.7%

Initiatives
Ensuring of safety in the workplace
Actions undertaken during Safety Week
The Group works to ensure safety in the workplace with the aim of achieving zero occupational accidents (year-round). For
instance, in line with National Safety Week conducted by the Ministry of Health, Labour and Welfare, we require employees towear a Safety Week badge and display posters to raise employee awareness of safety.

Provision of health and safety education
The Group approaches each of its businesses with a sense of pride and a mission to provide safety and security to its customers.
To support the businesses, we believe that the physical and mental health and safety of our employees are most important andare the foundation for the sustainable growth of the Group. To this end, we provide training for each and every Group employee
to raise their awareness of their own health and workplace safety.

Actions with contractors
We recognize that to ensure safety in the workplace, it is important that we collaborate with contractors to further raise ourawareness of safety and take effective action. In particular, collaboration with a large number of contractors is essential, and thisis extremely important in promoting railway operations, which carry a potential risk. For instance, the Engineering Department of
Hanshin Electric Railway has formed the Safety Cooperation Association with more than 60 companies involved in businesspromotion. By working together to set common targets, conduct safety patrols, and award safety commendations, the company
strives to further strengthen safety in business promotion.

Risk assessment in new and existing operations to create a safe workplace
Under the Group’s risk management system, each Group company identifies risks by conducting risk assessments regarding theoccupational safety and health of employees in new and existing operations, and establishes and steadily implements appropriate measures to mitigate risks (e.g., continuous safety training and compliance with work procedures).

28

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

4. Employment and Labor
Initiatives

GOVERNANCE
5. Occupational Health& Safety

Physical health management and promotion
Infectious disease prevention and management measures
Prevention and management of infectious diseases, such as influenza viruses helps not only to protect the health of employees
but also to enable stable business continuity by preventing employees from being absent from work due to an infectious disease.
The Group recognizes the importance of prevention and management of infectious diseases.
We provide subsidies for influenza vaccinations at medical institutions inside and outside the Group mainly to employees atHankyu Corporation and Hanshin Electric Railway, which are involved in railway operations.
•N umber of employees who used the influenza vaccination cost subsidy program (Hankyu Hanshin Holdings, Inc. and its 6
major companies): 5,011 persons (FY2023)

Infectious disease prevention and management for employees stationed overseas
The Group operates the Real Estate Business and the International Transportation Business overseas. Based on the recognition
that it is important to respond to health issues, including infectious diseases to watch out for, for employees stationed overseas,
we have established a system that allows them to live with peace of mind and focus on business activities.
Specifically, we provide health checkups and vaccinations recommended by the Ministry of Health, Labour and Welfare andthe Ministry of Foreign Affairs to employees scheduled to be stationed overseas and their accompanying family members, andwe help them receive mental health checkups and seek health consultation during overseas assignment. We thus support
employees stationed overseas and their accompanying family members both physically and mentally.

Providing opportunities for specific health guidance and cancer screening
The Group takes measures to promote the health management of employees who are subject to specific health guidance as aresult of specific health checkups (health checkups focusing on metabolic syndrome). Specifically, we encourage the relevant
employees to receive specific health guidance through office organizations and distribute the results of specific health checkups
with an additional remark about the risk of developing lifestyle-related diseases based on the results of the health checkups.
It is now said that one in two Japanese will get cancer; thus, regular checkups for the early detection and treatment ofcancer are effective in the cancer control measures. We have a system that allows Group employees who are members of the
Hankyu Hanshin Health Insurance Society to receive cancer risk screening through an at-home test and undergo gynecologicalcancer screening free of charge.

Initiatives to promote smoking cessation
It is said that smoking is the greatest preventable risk factor for illness and death. In response, the Group established the Hankyu
Hanshin Holdings Group Smoking Cessation Promotion Declaration in May 2021 and is working to provide support, education
and awareness activities and to improve the environment to encourage smoking cessation. Hankyu Hanshin Holdings, Inc. andits six major companies (including the Hankyu Hanshin Health Insurance Society) provide subsidies for outpatient treatment forsmoking cessation, offer free online smoking cessation services, and hold a non-smoking awareness seminar.
•T he total number of applicants for online outpatient treatment for smoking cessation by the Hankyu Hanshin Health InsuranceSociety (Hankyu Hanshin Holdings, Inc. and its 6 major companies): 51 persons** Aggregate data from April 2022 to March 2023

Mental health and measures
Using a stress check program
The Group conducts a stress check as required by law and responds to highly stressed employees through interviews with anindustrial physician. We also use group analysis of stress check results to improve the workplace environment.
• Stress check acceptance rate (Hankyu Hanshin Holdings, Inc. and its consolidated subsidiaries in Japan): 87.6% (FY2023)

Providing education on mental health
The Company organizes a mental health management seminar for all managers as part of its effort to prevent employees from
suffering from mental ailments. Also, in addition to providing training on mental health measures to all new Group employees, theGroup is working to improve mental health literacy at certain Group companies at career milestones, such as promotions.

29

SUSTAINABILITY IN GENERAL
1. Respect for Human
Rights

SOCIAL2. Ensure Business Safety
and Reliability

ENVIRONMENT
3. Contribute to Local
Communities

GOVERNANCE

4. Employment and Labor
Initiatives

5. Occupational Health& Safety

Certification as a Health and Productivity Management Organization*
The Group agrees with the purpose of the Certified Health & Productivity Management Outstanding
Organizations Recognition Program implemented by the Ministry of Economy, Trade and Industry,and 25 Group companies have been certified under the Program for 2023. Moreover, two Group
companies, namely, Hankyu Corporation and ITEC HANKYU HANSHIN, have each been certified
under the Program as “White 500” (top 500) organizations in the large enterprise category while
Hankyu Hanshin REIT Asset Management has been certified as one of “Bright 500” (top 500) organizations in the SME category.
• Large enterprise category (White 500): Hankyu Corporation and ITEC HANKYU HANSHIN•L arge enterprise category: H anshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin
Express, Hankyu Sekkei Consultant, Hankyu Hanshin Hotels, Bay Communications, HANKYU
HANSHIN BUSINESS TRAVEL, and Hankyu Hanshin Business Associate• SME category (Bright 500): H
 ankyu Hanshin REIT Asset Management•S ME category: KITA-OSAKA KYUKO RAILWAY, Tango Kairiku Kotsu, Nose Electric Railway, HANKYU KANKO BUS, Hankyu
Bus, HANSHIN CABLE ENGINEERING, OS, CHUO DENSETSU, Hankyu Construction Management, Hankyu
Hanshin Insurance Service, HANKYU MEDIAX, Hanshin ENGEI, and HANSHIN CONSTRUCTION* Under the Certified Health & Productivity Management Outstanding Organizations Recognition Program commendations are given to corporations that are
deemed particularly outstanding in their health and productivity management.

DATA
Indicator

Range

Unit

Number of work-related employee
fatalities

Hankyu Hanshin Holdings, Inc. and its
consolidated subsidiaries in Japancase(s)Hankyu Hanshin Holdings, Inc. and its 6
major companies
Lost-time incident rate*(Reference) National average for allindustries—(Reference) National average for thetransportation / postal industries(to benchmark against industry standards)

FY2021

FY2022

FY2023

0

0

0

0.49
(0.39)

0.75(0.37)

0.72(0.55)

1.95

2.09

2.06

3.31

3.31

4.06

* The number of casualties due to occupational accidents per million working hours (at least one day off work, excluding commuting accidents. In addition,
figures in parentheses exclude third-party accidents.)

Indicator

Range

Unit

Number of employees trained onhealth and safety

Hankyu Hanshin Holdings, Inc. and its 6
major companies

person(s)FY2023

6,254•P
 ercentage of business sites with OHSAS 18001 certification
Currently, there are no business sites certified under OHSAS 18001 (ISO 45001 Occupational Health and Safety Management
System).

30

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

2. Climate Change

ENVIRONMENT
3. Pollution and Resources

4. Biodiversity

GOVERNANCE
5. Water Resources

1. Environmental Management
Approach
In 2010, the Hankyu Hanshin Holdings Group formulated its Basic Environmental Philosophy, which declares that, with a recognition thatthe conservation of the global environment is a key theme common to humankind, the Group will strive to ensure that all its businessactivities will be environmentally sustainable. In the same year, the Group also established its Basic Environmental Policy, committing
itself to complying with environmental laws and regulations, monitoring and reducing the environmental impact of the Group’s businessactivities and raising employees’ environmental awareness. The Group has since made sustained efforts to implement this policy.
Moreover, the Hankyu Hanshin Holdings Group Sustainability Declaration, issued in May 2020, positions environmental
protection as one of the six priority issues and sets the relevant policy of conducting eco activities that contribute to a carbon-neutral world and a circular economy. All these embody the Group’s belief that it is pivotal to leverage its strengths in the six
core businesses, including Railway Business, while implementing basic measures to comply with environmental laws and regulations in order to tackle climate change and other global environmental issues.

Sustainability Declaration priority issue (5): Environmental protection• Policy
Conduct eco activities that contribute to a carbon-neutral world and a circular economy• Project theme
1) Cut greenhouse gas (CO2) emissions2) Improve energy efficiency (promote energy saving)3) Use more renewable energy (e.g. solar)
4) Aim for more eco-friendly buildings (green buildings)
5) Produce less waste and recycle more

Basic Environmental Philosophy and Policy• Basic Environmental Philosophy
With a recognition that the conservation of the global environment is a key theme common to humankind, the Hankyu Hanshin
Holdings Group will promote environmentally sustainable business activities and contribute to building a society that canachieve sustainable development in order to ensure that a greener global environment and better living environments will behanded down to the next generation.
• Basic Environmental Policy
The Group implements and continuously enhances environmental measures based on the following policies:
1. W
 e will monitor the environmental impact of our business activities and take action to reduce it.
2. W
 e will accurately understand environmental laws and regulations and other social requirements and comply with them.
3. We will strive to raise employees’ awareness so that every employee will be able to act in an environmentally sustainable manner.

We will also work to promote environmental conservation through collaboration with our stakeholders as follows.

• Property portfolio management and operation policy from the perspective of the environment in the Real Estate BusinessIn the management and operation of our real estate facilities, with the cooperation of tenants, we will promote environmental
conservation activities that contribute to a carbon-neutral world and a circular economy by working to improve the efficiency ofenergy use, comprehensively sorting, reducing waste and recycling, throughout the facilities, including in tenants’ private areas.
In addition, the Hankyu Hanshin Holdings Group and facility managers engage in collaboration and cooperation to improve theenvironmental initiatives and performance at the properties. For example, we tabulate and analyze the amounts of energy used,
waste generated and water withdrawal at the properties and use the results when examining of the property management plans.

• Approach to cooperation with civic groups
The Hankyu Hanshin Dreams and Communities of the Future Fund program, one of the Group’s social contribution initiatives, isaimed at providing NPOs and other civic groups engaged in environmental conservation with financial support to achieve environmental protection in collaboration with them. The Group has continued to dialogue regularly with the civic groups that it has
supported about activities aimed at achieving environmental conservation.
31

SUSTAINABILITY IN GENERALSOCIAL2. Climate Change

1. Environmental Management

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Management / Organization
Corporate Sustainability Committee
To promote cross-sectional sustainability throughout the Group, we have established the Corporate Sustainability Committee, which
is chaired by the Group CEO (supervisor). The Committee, which convenes twice a year, deliberates on the direction of the Group’s
response to the promotion of environmental preservation issues, and reports the important issues to the Group Management
Committee and the Board of Directors. The Committee then incorporates these issues into the Group-wide management system.

Environment Committee
The Group has established the Environment Committee, chaired by the president of Hankyu Hanshin Holdings, Inc., which
discusses and decides on the environmental conservation initiatives, including the initiative to mitigate climate change, that theGroup should actively implement while promoting its management and business activities. The Environment Committee meets
twice a year to deliberate on the status of compliance with environmental laws and regulations and the progress of energy saving
measures in the Group’s six core businesses. The committee thus serves as the starting point of the Group’s promotion ofenvironmental management.
The Environment Committee secretariat annually examines whether the Group’s domestic consolidated and non-consolidated subsidiaries (excluding some) comply with environmental laws and regulations. The secretariat not only checks whether there
are any violations of environmental laws and regulations but also shares information about revisions of those laws and regulations
with the Group companies to minimize the risks of law and regulation violations in advance.
Organization chart
Hankyu Hanshin Holdings Environment Committee

Secretariat

Urban
Transportation

Real EstateEntertainment

Information andCommunication
Technology

TravelInternational
Transportation

Group
companiesGroup
companiesGroup
companiesGroup
companiesGroup
companiesGroup
companies

Other
businesses

Main roles of the Environment Committee secretariat
Report to the Environment Committee•R eporting on the progress of environmental conservation activities twice a year,
and reviewing activity policies and plans in response to deliberations by the committee

Compliance withenvironmental laws
and regulations• Examining the status of compliance with environmental laws and regulations• Inspecting individual cases concerning priority laws and regulations in more detail

Environmental impact
reduction• Compiling and monitoring data on environmental impacts, including energy-related
impacts

Employeeawareness-raising• Organizing Environmental Conservation Months (June and December)• Providing employees with environmental training• Communication through the Group’s newsletters and other media

Environmental
conservation
activities

Initiatives
Acquisition of certification
As mentioned above, the Hankyu Hanshin Holdings Group has built its original environmental management system and operates
it throughout the Group. In addition, some Group business sites have been certified as complying with external standards forenvironmental management systems, including the ISO 14001 standard.

• Number and percentage of companies (among Hankyu Hanshin Holdings, Inc. and all its consolidated subsidiaries) thathave business sites certified as covered by recognized environmental management systems
11 companies accounting for 11.0% (FY2023)

32

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Status of Environmental Management System Certification
Certification

Overview

Certified companies and business sites

ISO 14001 standard
for environmental
management systems

An international standard for environmental management systems• Hankyu Corporation (Shojaku factory)• ITEC HANKYU HANSHIN• Hankyu Hanshin Express(Hankyu Hanshin Narita Cargo Center andHankyu Hanshin Osaka Cargo Terminal)• HHE (USA)• HHE (DEUTSCHLAND)• HHE (NETHERLANDS)• HHE (HK)• HHE (MALAYSIA)(HHE: HANKYU HANSHIN EXPRESS)

Green Management
Certification

A certification program for environmental conservation • Hankyu Bus (Itami and Ishibashi branches)delivered by the Foundation for Promoting Personal•H ANKYU KANKO BUS
Mobility and Ecological Transportation, an extra-gov(Osaka, Nakatsu, Airport, and Airernmental organization under the Japanese Ministry ofport-South branches)
Land, Infrastructure, Transport and Tourism. (For transportation-related companies, including truck freight,
bus, taxi, shipping, port transportation, and warehousecompanies)

KES Environmental
Management System
Standard

An environmental management system promoted by
the KES Environmental Organization, a Japanese nonprofit created to encourage enterprises to participate
in environmental improvement activities

HANSHIN HOTEL SYSTEMS(The Ritz-Carlton, Osaka): Obtained Step 1
certification

Providing employees with environmental training
Hankyu Hanshin Holdings, Inc. provides employees in charge of environmental issues at Group companies with environmental
training on a regular basis, in which the company briefs them on the latest information on environmental laws and regulations andon environmental conservation measures.
Also, in order to raise employees’ environmental awareness, the company dispatches information about the environmental
conservation initiatives implemented in our business activities as well as general knowledge about the environment throughin-house publications and others.

33

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIALENVIRONMENT
3. Pollution and Resources

2. Climate Change

4. Biodiversity

GOVERNANCE
5. Water Resources

2. Climate Change
1. 環境マネジメント

Approach

2. 気候変動The Hankyu Hanshin Holdings Group has defined contributing to a carbon-neutral world as a policy for the priority issue of“environmental protection” toward Sustainable Management.
We recognize that climate change can create not only risks but also opportunities for significant business growth. We willcontinue to work on steadily improving our energy efficiency and the use of renewable energy in each of our businesses. In ourReal Estate Business, we are aiming to create more eco-friendly buildings (green buildings) and are working to promote energy
saving at our facilities with the cooperation of our tenants and other stakeholders. In this way, we will reduce the environmental
impact of our business activities, including greenhouse gas (GHG) emissions, and play a part in realizing a carbon-neutral world.

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (page 32).

TargetIndicator

Range

Targets

FY2023 Results

Rate of CO2
emissions cuts*

Hankyu Hanshin
Holdings, Inc. and its
subsidiaries’ Japanese
worksites

FY2031: 46% reduction
compared to FY2014
FY2051: Net zero
(Announced in May 2022)

41.3% reduction
compared to FY2014* Equivalent to SCOPE 1 and 2

Initiatives
Supporting public policies and regulations and belonging to business associations forthe mitigation of climate change
The Hankyu Hanshin Holdings Group supports various agreements and public policies concerning actions to mitigate climatechange, including the Paris Agreement, as well as the laws and regulations intended to mitigate climate change, such as the Act
on Rationalizing Energy Use and Shifting to Non-fossil Energy and the Act on Promotion of Global Warming Countermeasures.
The Group’s railway operation and other divisions regularly exchange views with the Ministry of Land, Infrastructure, Transport
and Tourism, the Ministry of the Environment and the Japan Private Railway Association and propose their ideas about climatechange.
Moreover, the Hankyu Hanshin Holdings Group participates in the following initiatives to mitigate climate change.
Initiatives

Group’s involvement

Overview• Task Force on
Climate-related
Financial Disclosures (TCFD)• TCFD Consortium•A greed with the TCFD
recommendationsin May 2021, listed
TCFD Supporter• Holds TCFD Consortium membership

The TCFD was created by the Financial Stability Board at the request of theG20 member states. The TCFD recommends that companies and other kindsof organizations disclose the financial and other impacts of climate-related risks
and opportunities on their medium- to long-term strategies and planning to help
investors make appropriate investment decisions.

• United Nations
Global Compact (UNGC)• Global Compact Network
Japan (GCNJ)• Agreed with the UNGC
in May 2021, listed
United Nations Global
Compact Supporter• Holds GCNJ membership

The UNGC was announced at the World Economic Forum held in 1999, and isa pact that enshrines behavioral principles for businesses around the world. It
consists of ten principles in the areas of human rights, labor, the environment, andanti-corruption.
The GCNJ is a UNGC’s local network (platform for sustainable development)
in Japan.

34

SUSTAINABILITY IN GENERAL
1. Environmental Management

Initiatives

Japan Business
Federation (general incorporated
association)

Kansai Economic Federation(public interest
incorporated
association)

Japan Private
Railway Association (generalincorporated
association)

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

4. Biodiversity

GOVERNANCE
5. Water ResourcesGroup’s involvement

Overview

Hankyu Corporationand Hanshin Electric
Railway participate ascorporate members

The Japan Business Federation is a general economic association that seekssolutions to international problems and closer economic relations with other countries through dialogue with governments, economic organizations, and international organizations.
Hankyu Corporation and Hanshin Electric Railway participate in the Federation as corporate members and, through a business association, are actively
involved in the “Keidanren Carbon Neutrality Action Plan,” the Federation’s climatechange mitigation initiative to promote the steady reduction of CO2 emission. The
Group’s policy on climate change is consistent with the policy of the Federation.

Participates as a vicechair

The Kansai Economic Federation (Kankeiren) is an economic organization of companies whose head offices or other bases are located in the Kansai region. The Kansai
Economic Federation conducts surveys and research on the invigoration of the Kansai
economy and submits proposals to the Japanese government and relevant local
governments. It also promotes ESG initiatives and initiatives to achieve the SDGs,
including those to mitigate climate change and to achieve carbon neutrality, and proposes related policies. The Kansai Economic Federation’s policies on climate change
correspond with those of the Hankyu Hanshin Holdings Group, and the Group CEO isfully committed to the Kansai Economic Federation as one of its vice chairs. The Hankyu Hanshin Holdings Group also plays a role in promoting ESG and SDG initiatives
in the Kansai business community by taking initiative, and working to ensure that theGroup’s opinions are reflected in the organization within the Federation.

Hankyu Corporationand Hanshin Electric
Railway participate asboard members

The Japan Private Railway Association is a general incorporated association
established to create safer and more convenient railroads, which are closely
connected with the lives of many people. The association is engaged in activities
to improve railroad safety and convenience, strengthen railroad maintenance, andpromote environmental protection.
The presidents of Hankyu Corporation and Hanshin Electric Railway, both
members of our Group, are serving as directors of the Association and proactively
engaging in its activities, including making policy recommendations to the government. In addition, the two companies are actively promoting the advantages
for environmental preservation of railroads by participating in the Railway Eco
Campaign, one of the association’s activities to promote the use of railroads as ameans of addressing climate change.

Initiatives to contribute to the creation of green communities
Expanding and promoting the use of public transportation networks
CO2 emissions per unit transportation capacity from railway transportation are just 1/8th of those from transportation by private cars.
Railways are thus a transportation means with low environmental impacts. Enhanced convenience of public transportation will contribute to less use of private cars, which results in reduction of CO2 emissions from the transportation sector in Japan. While continuing toenhance railway networks, as represented by the Hanshin Namba Line, we will also focus efforts on improving the means of transportation for “to the station” and “from the station” by enhancing not only buses and taxis but also services to enhance usability of bicycles, such as rental bicycles and bicycle parking lots, thereby working to establish transportation networks with low environmental
impacts centered around public transportation. In addition, the Hankyu Hanshin Holdings Group operates its Real Estate, Entertainment, and other Businesses as part of the development along its railroad lines. Many sites for those businesses (including commercial
facilities, Hanshin Koshien Stadium, and Takarazuka Grand Theater) are located within a walking distance from railway stations andcontribute to both establishing transportation networks and reducing the environmental impacts of travel by many customers.

Zero-Carbon Baseball Park
Hanshin Electric Railway, under its Zero-Carbon Baseball Park project, aims to decarbonize the entire area surrounding Odaminami Park, the future home of the Hanshin Tigers farm team. To this end, the company will foster energy conservation and the useof renewable energy in a comprehensive manner at the team’s new base as well as at its feeder train stations in Amagasaki city.
In April 2022, the project, as a joint proposal made by Amagasaki city and Hanshin Electric Railway, was selected to be oneof the first “Decarbonization Leading Areas”* projects by the Ministry of the Environment.
* Decarbonization Leading Areas: Designated by the Ministry of the Environment as areas in which proactive measures will be implemented to achieve carbon
net-zero electricity consumption in the private sector (including households, stores and buildings) by 2050 ahead of other areas.

Actions to cut greenhouse gas (such as CO2) emissions and improve energy efficiency
We will strive to reduce GHG* emissions toward FY2031 by implementing various measures to lower energy consumption according to the characteristics of our respective businesses, especially in our Urban Transportation and Real Estate Businesses,
which account for a major part of our energy consumption. Those measures include introducing energy-efficient equipment andpromoting energy conservation activities.
* As almost all of GHG emissions produced by the Group are CO2 emissions, we regard the amount of our CO2 emissions as the total amount of our GHG
emissions.

35

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

4. Biodiversity

GOVERNANCE
5. Water Resources

Urban Transportation• Actions to lower energy consumption entailed by railway operations
Since railway operations account for about 40% of the Hankyu Hanshin Holdings Group’s energy consumption, the Group places
a high priority on lowering the energy consumption of its railway operations. Hankyu Corporation and Hanshin Electric Railway
devote efforts to shifting to rolling stock with high energy-saving performance while discussing new developments with train
equipment manufacturers. For example, for their newest railway vehicles with highest energy performance, Hankyu Corporationand Hanshin Electric Railway have adopted highly efficient variable-voltage/variable-frequency (VVVF) inverter control devices
along with the use of permanent-magnet synchronous motors as well as LED lights for all lighting equipment, including headlights, thereby reducing the vehicles’ electricity consumption by 50 to 60% relative to conventional vehicles.

• Actions to lower energy consumption at railway stations
We are gradually upgrading the lighting at our railway stations and other facilities to LED lights, which are less power-consuming
and have a longer life, contributing to waste reduction. (Ratio of LED lighting to station lighting, excluding backyard : 60% for
Hankyu Corporation and 75% for Hanshin Electric Railway, both figures as of March 2023)
In addition, Settsu-shi Station, opened on the Hankyu Kyoto Line in 2010, is Japan’s first net-zero CO2 emissions station (orcarbon neutral station). Various environmental measures adopted at this station, including the use of solar panels and LED lights,
have reduced CO2 emissions from the station to about half of those from an ordinary station. The remaining CO2 emissions fromthe station are completely offset by CO2 emissions reductions through forest conservation activities (carbon offset).

• Introduction of electric buses with reduced environmental impact
The Group is fostering the use of electric buses, which do not emit CO2 during operation and are thus more friendly to theenvironment.
Since October 2021, Hankyu Bus has been using two electric buses for its transportation services provided on the Osaka
University campus. The company is now also using two electric buses for its fixed-route bus transportation service provided in
the service area of the Senri sales office and four electric buses in the service area of the Ibaraki sales office.
In May 2023, moreover, HANSHIN BUS began operating the first two electric buses used for fixed-route bus services in Hyogo Prefecture.

Real Estate• Use of building management systems to measure energy efficiency
The Group is committed to utilizing a systematic building management system that measures energy
use and efficiency, contributes to overall building energy saving and energy efficiency improvements,
and thereby supports tenants’ energy saving awareness and daily activities.
Osaka Umeda Twin Towers South uses the Building Energy Management System (BEMS) to“visualize” energy usage and efficiency for the energy-saving operations and management of building
facilities. The building also promotes energy saving while maintaining comfort through other systems,
including a highly efficient cogeneration system, sequential air conditioning that automatically changes
temperature setting in stages from areas near the outside of the building to the offices, and desiccant
air conditioning that regulates the air quality by controlling the humidity in the air with desiccants.
Furthermore, the building also graphically displays trends and year-on-year comparisons, and tenants
can check the daily and hourly energy consumption in their rental rooms on the website. These initiatives help to raise tenants’ awareness of energy use and enable tenants to carry out daily energy
saving activities.

Osaka Umeda Twin Towers
South• Environment-friendly initiatives adopted in the Geo condominium series*1
All of the Geo condominiums sold by the Hankyu Hanshin Holding Group from around the end of July 2011 onward are equippedwith various environment-friendly features, such as Low-E multi-layered glass and LED lighting (in both common and private
areas), as well as electric vehicle charging equipment. Also, sunlight and solar heat are used to create energy for use in someGeo condominiums. In some condominiums, we collect and reuse household tempura oil. We have taken the initiative to embark
on these diverse environmental improvement efforts. Furthermore, the properties currently under construction have acquired Heat
Insulation Performance Grade 4 or higher and Primary Energy Consumption Grade 4 or higher under the Housing Performance
Labeling System, and all properties to be sold or leased from FY2025 onward will be Net Zero Energy House Mansion (ZEH-M)
Oriented*2 or higher to continue our efforts to reduce the environmental impact of our activities.
*1: May not be applicable to condominiums jointly developed with other companies.
*2: Net Zero Energy House Mansion (ZEH-M) Oriented: A condominium in which the primary energy consumption of the entire condominium includingcommon areas is reduced by 20% or more (compared with the standard primary energy consumption for heating, cooling, ventilation, lighting and hot
water supply specified in the 2016 Energy Conservation Standard).

36

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources• Promotion of ZEH in Geo Garden detached houses
In the Geo Garden series of detached houses sold by our Group, we will actively promote the spread of ZEH to contribute to therealization of an energy-saving and a carbon-neutral world. There are three types of ZEH for detached houses:『 ZEH 』, the designof which reduces primary energy consumption (heating, cooling, ventilation, lighting and hot water supply ) by 100% or more ascompared with standard primary energy consumption; “Nearly ZEH,” with a reduction rate of 75% or more; and “ZEH Oriented,”
with a reduction rate of 20% or more. The Group’s goal is to have at least 50% of detached houses for sale at『 ZEH 』or Nearly
ZEH levels by FY2026 and to have all detached houses for sale at the ZEH standard in principle by FY2031.

• Environment-friendly measures*1 to be implemented at LOGiSTA facilities
The Group will acquire ZEB Ready*2 and higher-level certifications for the logistics facilities to be developed by the Group as partof its environmental conservation and energy-saving efforts. To this end, for LOGiSTA Osaka Matsubara and LOGiSTA Toyonaka,
which are multi-tenant logistics facilities to be completed in the winter of 2024, we will adopt LED lighting, motion sensors andwater-saving sanitary equipment to acquire ZEB Ready certification for the buildings.
*1: Some of such measures might not be implemented at jointly operated facilities.
*2: At a net-zero energy building (ZEB), energy conservation measures, such as introducing highly energy-efficient equipment, are implemented to substantially reduce the annual primary energy consumption relative to a conventional standard building of the same size without compromising comfort. According
to the emissions reduction achieved, one of the following four types of certifications is given:『 ZEB 』, Nearly ZEB, ZEB Ready and ZEB Oriented. ZEB
Ready certification is given to a building where the primary energy consumption is reduced by 50% or more.

Aim for more eco-friendly buildings (green buildings)
To provide many more environment-friendly buildings, the Hankyu Hanshin Holdings Group has striven to obtain environment andsociety-friendliness certification.
TargetIndicator

Range

TargetFY2023 Results

Acquisition rate of green
building and other environmental
certifications*1 that apply to officebuildings and large buildings forcommercial and other uses*2

Hankyu Corporation,
Hanshin Electric
Railway, Hankyu
Hanshin Properties

100% in FY2023(The target is 100% eachfiscal year.)

100%(Kobe Sannomiya Hankyu
Building and Osaka Umeda
Twin Towers South)*1: Environmental certification systems such as DBJ, CASBEE, BELS, and LEED
*2: Buildings with a total floor area of 30,000 m2 or more (excluding properties jointly owned with another company) completed in FY2021 or later

Acquisition of Green Building certification (certification to a recognized building management standard for property portfolio)
Certification name and evaluation details

Facility

DBJ Green Building certification (5-star scale)★★★★★ (Certified as 5-star)
DBJ Green Buildings that meet Japan’s highest
standards for environmental and social consideration

Osaka Umeda Twin Towers SouthHankyu Nishinomiya Gardens★★★★ (Certified as 4-star)
DBJ Green Building with exceptionally highenvironmental and social awareness

HEP FIVE★★★ (Certified as 3-star)
DBJ Green Building with very high environmental andsocial awareness

Kobe Sannomiya Hankyu Building

37

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Certification name and evaluation details

Facility

Certification for CASBEE for Real Estate
Rank S (Highest rank)
Buildings that have obtained the highest-rank certification under the environmental evaluation system for real estate property developed and operated under a project led by theJapan Sustainable Building Consortium (JSBC) and the Institute for Built Environment andCarbon Neutral for SDGs (IBECs).

LOGiSTA Logicross Ibaraki Saito
Buildings A and B

CASBEE Osaka (Osaka’s Comprehensive Assessment System for Built Environment Efficiency) (5-grade evaluation)
S rank (top in the ranking)
Buildings that have obtained the highest rank in overall environmental performance of thebuilding, including comfort of the indoor environment, longevity of the building, and consideration for the landscape.

Osaka Umeda Twin Towers North

LOTUS
LOTUS CERTIFIED
Buildings that are certified to meet the predefined environmental performance standards
in seven areas (energy, water, materials and resources, health and comfort and others)
throughout their life cycles under the environmental performance evaluation system implemented by the Vietnam Green Building Council (VGBC).

Sembcorp Logistics Park
(Hai Duong)

Building-Housing Energy-efficiency Labeling System (BELS)★★★★★ (Highest rank)
Buildings that have received five-star (highest rank) third-party certification based on theguidelines on the labeling of energy conservation performance of buildings set by the Ministry of Land, Infrastructure, Transport and Tourism.

LOGiSTA Logicross Ibaraki Saito
Buildings A and BZEB
ZEB ReadyAt a net-zero energy building (ZEB), energy conservation measures, such as introducing
highly energy-efficient equipment, are implemented to substantially reduce the annual
primary energy consumption relative to a conventional standard building of the same size
without compromising comfort. According to the emissions reduction achieved, one of thefollowing four types of certifications is given:『 ZEB 』, Nearly ZEB, ZEB Ready and ZEB
Oriented. ZEB Ready certification is given to a building where the primary energy
consumption is reduced by 50% or more.

LOGiSTA Logicross Ibaraki Saito
Building B

Utilize renewable energy (e.g. solar)• Installation of solar power generation facilities
As an action to utilize renewable energy, we have been installing solar power generation facilities on our Group premises. Our
major premises equipped with these facilities are as follows. (The figures in parentheses are annual power generation output in
FY2023.)• Urban Transportation: Hanshin Oishi Station (122,311 kWh); Hankyu Settsu-shi Station (53,695 kWh), and Hankyu Nishinomiya-kitaguchi Station (where the facilities started operation in Mar. 2023)• Real Estate: HEP FIVE (18,398 kWh)• Entertainment: Hanshin Koshien Stadium (114,158 kWh)

• Use of renewable energy-derived electricity at office buildings, commercial facilities and others
In April 2022, we started to use renewable energy-derived electricity endorsed with a non-fossil certificate with tracking information*1 in the Osaka Umeda Twin Towers North and South*2. We have since been working to expand the use of such electricity tomore facilities, aiming to replace most of the electricity used*3 at the office buildings, commercial facilities and other sites*4 that
we are managing in the Osaka Umeda area and the areas along our rail lines with renewable energy-derived electricity by
FY2026. In this way, we are striving for the realization of a carbon-neutral world by cooperating as building owners with tenants.
*1: A non-fossil certificate with tracking information certifies the environmental value of electricity derived from non-fossil sources, such as renewable energy,
and provides tracking (attribute) information, such as the location of the power plant where the electricity was generated. Electricity endorsed with suchcertificates is deemed to be renewable energy-derived electricity.
*2: At both shared spaces in the buildings and office spaces for exclusive use by tenants.
*3: Excluding electricity generated privately via gas co-generation systems.
*4: Excluding some facilities, such as facilities to be refurbished or redeveloped, those that use only a very small amount of electricity, and those for which theGroup has no authority over energy management.

38

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

ENVIRONMENT

2. Climate Change

3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Identifying risks and opportunities created by climate change
Risks caused by climate change are broadly divided into physical risks and transition risks.

• Addressing physical risks
In recent years, natural disasters have been causing more localized and at the same time more intense damage in areas acrossJapan. These disasters include the flooding of rivers caused by heavy rainfall events and super-large typhoons as well as theflooding of roads due to rainfall in amounts that exceed the drainage capacity of the local sewerage system. In response, under
its risk management system, the Group annually conducts a risk survey targeting each Group company. For the FY2023 survey,
we included “natural disasters (damage by flooding)” in the risks faced in common by Group companies. Then, based on thesurvey results, we identified the risks posed to each of our businesses, and examined and fostered countermeasures against theidentified risks. For example, in the Urban Transportation Business, we are enhancing our measures against flood-related damage, including measures to prevent water from entering communications equipment rooms and measures to foster the relocation
and updating of substations.

• Addressing transition risks
We follow the TCFD framework to monitor transition risks created by changes due to the transition to a low-carbon society,including changes in policies, laws and regulations, as well as technological innovation and changes in the markets. We also
conform to the same scheme in devising measures to address transition risks. For details, please refer to the disclosure based on
TCFD’s recommendations WEB .

Introduction of an internal carbon pricing system*
To foster investments in CO2 emissions reduction, we introduced an internal carbon pricing system (5,000 yen/t-CO2) in FY2024.
* Internal carbon pricing (ICP) refers to the practice of companies setting their own carbon prices to enable them to model the economic impact of reducing
future CO2 emissions and the introduction of carbon taxes in order to make relevant investment decisions and incentivize further energy conservation.

DATA
The Group’s GHG emissions (SCOPE 1 and 2)

Indicator

Unit

Group total (business sites inJapan and overseas)

Business sites in Japan

Business sites overseas

FY2022

FY2023

FY2021

FY2022

FY2023371,136

394,858 362,660

370,131393,821361,817 -254,548-41.3%

616,365

1,005

1,037

844

Urban Transportation

247,119

260,062

239,580

247,119

260,062

239,580 -161,038-40.2%

400,619———

Real Estate

104,406

113,159

102,793

104,327

113,088

102,727-82,964-44.7%

185,691

Entertainment

9,341

10,98910,773

9,341

10,98910,773-4,662-30.2%

15,434———

Information and Communication Technology t-CO2

1,938

2,135

1,950

1,938

2,135

1,950

-1,219-38.5%

3,169

—

—

—

Travel

1,566

1,472

1,387

1,556

1,462

1,379

-720

-34.3%

2,099

10

9

8

International Transportation

2,774

2,778

2,518

1,858

1,821

1,749

-586

-25.1%

2,335

916

957

769

Other

3,993

4,264

3,659

3,993

4,264

3,659

-3,359-47.9%

7,018

—

—

—

SCOPE 1 and 2
Total*

t-CO2

Versus FY2014(Reference)
FY2021 FY2022 FY2023
FY2014FY2021

By segment*

80

71

67

By SCOPE*
SCOPE 1SCOPE 2t-CO2

104,772

104,556 103,476

104,668

104,479

103,401-40,765-28.3%

144,166

104

77

75

266,365

290,302 259,184

265,463289,342

258,416 -213,783-45.3%

472,199

902

961

768

* We aggregated CO2 emissions from energy processes.
• We calculated the entire Group’s GHG emissions (SCOPE 1 and 2) for FY2023 based on the GHG Protocol as detailed below:∙ SCOPE 1 and 2 total [Market-based] 367,788t-CO2[Location-based] 473,508t-CO2∙ SCOPE 1
108,234t-CO2∙ SCOPE 2[Market-based] 259,554t-CO2[Location-based] 365,274t-CO2•F or the boundary of data and calculation methods, please refer to supplementary information (page 61).
•D ata marked with have been assured (limited assurance) by the independent assurance provider, KPMG AZSA Sustainability Co., Ltd. to ensure thereliability of the data. For details, please refer to the Independent Assurance Report (page 60).

39

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

ENVIRONMENT
3. Pollution and Resources

2. Climate Change

GOVERNANCE

4. Biodiversity

5. Water Resources

The Hankyu Hanshin Holdings Group’s GHG emissions (SCOPE 3*)(Unit: t-CO2)
Indicator

FY2022SCOPE 3 Total

3,403,736

1. Purchased goods and services

1,949,678

By category (FY2022)

7,200

9.	Transportation and distribution (downstream)

2. Capital goods

688,927

10. Processing of sold products

0

3.	Fuel and energy related activities not included in
SCOPE 1 or 2

82,318

11. Use of sold products

153,304

4. Transportation and distribution (upstream)

343,526

12. End-of-life treatment of sold products

10,0595. Waste generated in operations

39,04013. Leased assets (downstream)

89,832

6. Business travel

3,200

14. Franchises

28,117

7. Employee commuting

8,534

15. Investments

00

8. Leased assets (upstream)• Calculated in line with the GHG Protocol• For SCOPE 3, indirect emissions that are not included in SCOPE 1 or 2 and that are from those other than the reporting organization but are related to theorganization’s activities are calculated.

The Group’s energy consumption on a crude oil-conversion basis
Indicator

Unit

Group total (business sites inJapan and overseas)

Business sites in Japan

Business sites overseas(Reference)
FY2021 FY2022 FY2023
FY2014FY2021

FY2022

FY2023

FY2021

FY2022

FY2023

253,601

252,986 256,797

253,116

252,495

256,378-60,113-19.0%

316,491

485

491

419

Urban Transportation

167,138

164,480

164,115167,138

164,480

164,115-36,614-18.2%

200,728———

Real Estate

73,452

74,847

78,84073,40074,80078,796-20,878-20.9%

99,674Entertainment

6,577

7,210

7,726

6,577

7,210

7,726

-573

-6.9%

8,299

—

—

—

1,438

1,465

1,465

1,438

1,465

1,465

-321

-18.0%

1,786

—

—

—

941

859

832

935

852

825

-312

-27.4%

1,137

7

7

7

International Transportation

1,450

1,473

1,365

1,024

1,035

998

-243

-19.6%

1,241

427

437

368

Other

2,604

2,653

2,453

2,604

2,653

2,453

-1,173-32.3%

3,626

—

—

—

Total energy consumption on crude
oil-conversion basiskL

Versus FY2014

By segment

Information and Communication Technology

kL

Travel52

47

44• For the boundary of data and calculation methods, please refer to supplementary information (page 61).
• Data marked with have been assured (limited assurance) by the independent assurance provider, KPMG AZSA Sustainability Co., Ltd. to ensure thereliability of the data. For details, please refer to the Independent Assurance Report (page 60).

The Group’s GHG emissions and energy consumption on a crude oil-conversion basis in the property portfolio
Indicator

Greenhouse gas (GHG) emissions*
Energy consumption on crude oil-conversion basis

Unit

FY2021

FY2022

FY2023t-CO2

153,028

166,291

150,647kl

115,078

115,407

124,972• The boundary of the aggregation of GHG emissions and energy consumption is properties classified as rental office business owned by companies in theGroup’s Real Estate Business Segment, which must be reported under Rationalizing Energy use and Shifting to Non-fossil Energy.
* All the figures were calculated using adjusted GHG emission factors.

40

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIALENVIRONMENT

2. Climate Change

3. Pollution and Resources

4. Biodiversity

GOVERNANCE
5. Water Resources

3. Pollution and Resources
1. 環境マネジメント

3. 汚染と資源
Approach

The Hankyu Hanshin Holdings Group has defined producing less waste and recycling more as a policy for the priority issue of“environmental protection” toward Sustainable Management.
In accordance with its Basic Environmental Policy, the Group not only complies with various laws and regulations but also
strives to reduce environmental pollution, waste, and the resource use, associated with our business activities. The Group is also
committed to utilizing resources effectively mainly by promoting recycling.
In the management and operation of properties in the Real Estate Business, the Group promotes environmental conservation activities that contribute to a circular society by cooperation with tenants and other stakeholders to comprehensively sort thewaste generated by tenant operations, reduce the amount of waste generated, and promote recycling.

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (page 32).

Initiatives
Reducing environmental pollution
The Hankyu Hanshin Holdings Group has set a process target of reducing the pollutants emitted by its business activities byimplementing countermeasures against environmental pollution in compliance with various laws and regulations.

Countermeasures against soil pollution in the Real Estate BusinessIn compliance with applicable laws and regulations, we appropriately conduct land history surveys and soil pollution surveys andadopt soil purification measures when we acquire and develop land.

Installing kitchen wastewater abatement equipment in real estate facilities
At Osaka Umeda Twin Towers South, Hankyu Nishinomiya Gardens, and HERBIS OSAKA and HERBIS ENT, we have installed
kitchen wastewater abatement facilities in some food and beverage tenants. And then, kitchen wastewater from those tenants istreated by a complex of microorganisms before discharged into public sewage to reduce pollutants and maintain water quality atlevels well below discharge standards.

Using no more plastic straws in the Hotel Business
Hankyu Hanshin Hotels has ceased using plastic straws in its directly operated restaurants and banquet halls of its directly
operated hotels and has replaced them with environmentally friendly straws. Its directly operated restaurants offer straws only tocustomers who need them to reduce CO2 emissions when burning them.

Reducing waste and utilizing resources
The Group has set a process target of devoting further efforts to reducing waste and utilizing resources effectively by fulfilling its
responsibilities as an enterprise provided for by various laws and regulations and by collaborating and cooperating with othercompanies and tenants at its real estate facilities.

41

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Promoting waste reduction by introducing a pay-per-amount system
We have introduced a pay-per-amount system, instead of a common flat-fee system, to charge tenant stores in real estate
facilities managed and run by the Hankyu Hanshin Holdings Group (HANKYU SANBAN GAI, Hankyu Nishinomiya Gardens andHankyu Terminal Building) for waste disposal according to the amount of waste they produce. This system is aimed at giving an
incentive for the stores to minimize waste and consequently reducing the total amount of waste in a more effective manner.

Reducing food waste in the Hotel Business
Hankyu Hanshin Hotels is committed to reducing food waste and making effective use of resources by developing mechanisms
to control food waste generation and weighing, and by making effective use of reusable food scraps.
TargetIndicator

Range

TargetFY2023 Result

Volume of food waste

Hankyu Hanshin Hotels

In FY2031, 50% reduction
compared to FY2014

66.2% reduction
compared to FY2014** The substantial reduction was largely
due to the impact of COVID-19

Reducing resource use
The Group has set a process target of reducing resource use by curbing the use of resources and promoting the use of recycledmaterials through collaboration with stakeholders, including other companies.

Reducing the number of plastic bags used at the Hanshin Koshien Stadium
We are working with stakeholders to reduce resource use such as reducing the number of plastic bags used at food and beverage concessions and merchandise stores at the stadium.
TargetIndicator

Reduction rate in the numberof plastic bags used at foodand beverage concessions
and merchandise stores atthe Hanshin Koshien Stadium

Range

TargetFY2023 Results

Hanshin Electric Railway(Koshien department),
2030 season 45% reduction
Hanshin Tigers Baseball Club, compared to the 2019 season
and WELLNESS HANSHIN

2022 season
52% reduction compared to
the 2019 season

Promoting recycling at the Hanshin Koshien Stadium in collaboration with other companies and thegovernment
At the Hanshin Koshien Stadium, we promote recycling in collaboration with other companies and the government to reduce theuse of resources and increase the resource recycling rate.

• Making more effective use of recycled materials
Uniforms worn by employees and part-time staff at the Hanshin Koshien Stadium are made of recycled polyester fiber manufactured by TEIJIN FRONTIER CO., LTD. as an alternative to polyester fiber. We are also developing environment-friendly products,
such as garbage bags made of recycled materials as part of our efforts to promote recycling.
TargetIndicator

Percentage of recycledmaterials in the total amountof materials used at the
Hanshin Koshien Stadium

Range

Hanshin Electric Railway(Koshien department)

TargetFY2023 Results

Expanded use of recycledmaterials

Making effective use of recycledmaterials for:• Shopping bags distributed at
the Stadium store• Garbage bags designated by
Nishinomiya city
• Rubber fences installed at theStadium

42

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

2. Climate Change

ENVIRONMENTGOVERNANCE

4. Biodiversity

3. Pollution and Resources

5. Water Resources• Plastic cup recycling
In cooperation with TEIJIN FRONTIER CO., LTD. and SHIMOJIMA Co., Ltd., we have introduced a circular
resource initiative in which plastic cups used for beer and other beverages sold at the Hanshin Koshien
Stadium and collected from customers are recycled as part of the raw materials for novelty items such as
beer cup holders and garbage bags as well as for rubber (buffer) fencing installed at the Stadium.
We are also promoting the reduction of resource use in cooperation with the government, forexample, by expanding the use of those garbage bags outside the Hanshin Koshien Stadium, as they
have been approved as government-designated garbage bags since FY2023.
TargetIndicator

Range

TargetFY2023 Results

Plastic cup collection
rate at the Hanshin
Koshien Stadium

Hanshin Electric Railway(Koshien department),
Hanshin Tigers BaseballClub, WELLNESS HANSHIN

2030 season 70%

2022 season 35%

A beer cup recycle bin• Horizontal recycling of PET bottles
In collaboration with Asahi Soft Drinks Co., Ltd., we conducted a bottle-to-bottle (horizontal) recycling project at the Hanshin
Koshien Stadium during the period of the 2023 summer national high school baseball championship held at the Stadium. In thisproject, we collected plastic PET bottles from customers at the Stadium and then recycled the collected bottles into PET resinmaterials to be used to produce new PET bottles.

Reducing paper use by digitizing air cargo documents in the International Transportation Business
Taking part in the International Air Transport Association (IATA)’s e-Freight* initiative to build a paperless transportation process forconsolidated air cargo, Hankyu Hanshin Express has digitized (made paperless) all shipping documents for its consolidated air
cargo from Japan to Hong Kong since FY2017. The company has established a necessary system through repeated verifications
with airlines, local subsidiaries, and overseas agencies, and it has built a safer, more reliable, and faster transportation process, witha reduction in consumption of paper (equivalent to 500 A4-size sheets of paper per cargo). As of August 2023, this initiative had
been expanded to 121 destinations in 42 countries and regions, with an expected monthly reduction of 80 tons of paper use.
* e-Freight: A joint initiative in the international transportation industry to build paperless transportation processes through collaboration throughout the supply
chain, including carriers, freight forwarders, ground handlers, shippers, customs brokers and customs authorities

DATA
Waste
Indicator

Unit

Generation
Recycled(Recycling rate)

Waste

t

Non-recycled
Hazardous waste*1 included

FY2021

FY2022

FY202355,06642,72944,112

19,978(36.3%)

22,740(53.2%)

21,389(48.5%)

23,734

7,441

8,771

172

327

417

Generation

Results of waste reduction measures
Indicator

Construction waste*2

Unit

FY2021

FY2022

FY2023Generation

69,60235,463

7,671

Recycled(Recycling rate)

67,215(96.6%)

28,894(81.5%)

3,010(39.2%)

301

5,066

123

Non-recycledtEquipment regulated by recycling laws

Disposed of

3.6

3.2

0.4

Disused items sold

Disposed of

696

797

692

• The data above covers Hankyu Hanshin Holdings, Inc. and its subsidiaries in Japan. However, some business sites on which data are difficult to obtain are
excluded. The figures for FY2023 pertain to 88 companies in Japan.
*1: Industrial waste of toxic or infectious kinds, defined as “waste requiring special management” by the Waste Management and Public Cleansing Act of Japan*2: Construction waste to which the Construction Material Recycling Act applies

43

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENTGOVERNANCE

4. Biodiversity

3. Pollution and Resources

5. Water Resources

Results concerning chemicals
Indicator

Unit

Generation
Volatile organic compounds(VOCs) *1

Emissionskg

Transferred out
PCB-containing waste*2

StoredFY2021

FY2022

FY2023

9,340

7,970

9,050

3,080

2,870

2,610

6,260

5,100

6,440

82

24

8

t

Results for other emissions
Indicator

Nitrogen Oxide (NOx)*3

Unit

EmissionsSulfur Oxides (SOx)*4

FY2021t

FY2022

FY2023

74

60

68

—

0.625

0.004

Results of raw materials
Indicator

Office paper

Unit

Used

t

FY2021

FY2022597

FY2023588

619• The data above covers Hankyu Hanshin Holdings, Inc. and its subsidiaries in Japan. However, some business sites on which data are difficult to obtain are
excluded. The figures for FY2023 pertain to 88 companies in Japan.
*1: Specific chemical substances whose amounts emitted and transported from business sites are reported to the government in compliance with the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof*2: Stored and treated in compliance with the Waste Management and Public Cleansing Act and the Act on Special Measures concerning Promotion of
Proper Treatment of PCB Wastes*3: The level of nitrogen oxide contained in automobile exhaust gas in specified areas in Osaka and Hyogo Prefectures, calculated in accordance with the Law
Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides and Particulate Matter from Automobiles in Specified Areas.
*4: Sulfur oxides emitted from soot- and smoke-generating facilities, of which we have notified the government in accordance with the Air Pollution Control
Law.

44

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

2. Climate Change

ENVIRONMENT
3. Pollution and Resources

4. Biodiversity

GOVERNANCE
5. Water Resources

4. Biodiversity
1. 環境マネジメント

Approach

4. 生物多様性

The Hankyu Hanshin Holdings Group values biodiversity as a factor for developing a good living environment under the priority issueof “thriving communities” toward Sustainable Management. Additionally, in the Hankyu Hanshin Dreams and Communities of the
Future Project, which is a social contribution initiative of the Group, we have defined “Sustainable Community Development” as apriority field and promoted activities aimed at contributing to the preservation of biodiversity and the natural environment.
In the Group’s business activities and social contribution initiatives, we will continue our efforts to protect biodiversity in cooperation with local communities in conformity to the principle of paying due consideration to the surrounding environments and ecosystems.

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (page 32).

Initiatives
Consideration for biodiversity
We pay due consideration to biodiversity and implement the following measures to reduce the environmental impact of theGroup’s business activities.

Consideration for biodiversity and environmental impact assessments in development projects
Every time a new development project is launched in its Urban Transportation and Real Estate Businesses, the Hankyu Hanshin
Holdings Group confirms whether any natural features, including trees and forests, that need protection and conservation exist
on the development site, and it adopts measures to protect and conserve such natural features as needed. On the development
site, we arrange green areas with plants selected with great care to ensure good harmony between these green areas andnatural features in the nearby area. In development projects in areas with abundant natural features, we assess those projects’environmental impacts on local flora and fauna and ecosystems in compliance with laws, regulations, and ordinances concerning
environmental impact assessments and the conservation of nature.

Reducing environmental pollution
We mitigate environmental pollution caused by our business activities to reduce their impact on the natural environment, which ishome to diverse organisms. For details, refer to “Initiatives” in “Environment: 3. Pollution and Resources” (page 41).

Restoration and protection of biodiversity
We contribute to the restoration and protection of biodiversity through the following efforts, including the creation and maintenance of environments that support a variety of living organisms in the areas where the Group operates and local communities connected with the Group.

Urban greening in the Umeda area, Osaka Prefecture
At Osaka Umeda Twin Towers South, planters (477 units, approx. 700 m2) have been installed over a wide area on the exterior balconies (3rd
to 9th floors) of the lower floors as wall greening. In consideration of biodiversity, we have selected tree species native to the Rokko mountain
range and the Yodo River water system, as well as a variety of flowers, maple trees, and other plants that change with the seasons. In therooftop garden on the 12th floor, tree species were selected based on the same concept as that applied for the wall greening, and zelkova
trees, symbolic trees for the area, have been placed in harmony with the surrounding landscape and combined with seasonal plants toprovide office workers and visitors with a relaxing and restful oasis space (approximately 800 m2 for the entire rooftop garden).
GRAND FRONT OSAKA, in which the Group participated as a member of the developers, has a garden of approximately 4,000 m2 to
the north of the North Building and rooftop gardens, which total over 10,000 m2, on the roofs of the 9th floors of both the South and North
Buildings. These gardens are designed for harmony with the environment. The entire facility is surrounded with a network of gingko trees,zelkova trees, and waterscapes, offering a space for store customers, office workers, residents, and hotel guests to enjoy natural featuresand seasonal changes.
The GRAND GREEN OSAKA Umekita Phase 2 Development Project, in which the Group participates as a member of the joint venture(JV) for the project, will create a total of approximately 80,000 m2 of green areas (including an urban park of about 45,000 m2) on the45

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

development site based on the community development principle of realizing a fusion of “green” and “innovation.” The project is intended tocontribute to establishing an ecosystem network around the center of Osaka by creating habitable environments for species identified inecosystem surveys conducted targeting the Yodo River and Osaka Castle Park. Specifically, taking natural light patterns into consideration,
we plan to create a highly biodiverse environment that extends from the waterside back to the forest.

Managing the Rokko Alpine Botanical Garden in the Mt. Rokko area of Hyogo Prefecture
The Rokko Alpine Botanical Garden in the Mt. Rokko area, which the Group owns and where
the Group operates its leisure business, has around 1,500 varieties of wild plants, including
alpine and cold-region plants from around the world, plants native to Rokko, and endangered
species. In an around 50,000 m2 area of the garden, these plants are cultivated in their near-natural conditions. With daily guided flower tours, seasonal exhibitions, and nature experience
programs, the garden helps raise public awareness of the importance of preserving nature. The
garden has been a member of the Japan Association of Botanical Gardens since its inception in1947 and has also served as a local outpost for the protection of biodiversity, promoting a
Hemerocallis dumortieri
program aimed at preserving Japan’s endangered plant species outside their habitats. The Itami
City Museum of Insects has been working for the conservation of Agapanthia japonica, an insect designated as an endangered species
and on the Ministry of the Environment’s Red List. Since 2021, the garden has provided the museum with Hemerocallis dumortieri, afood source for the larvae. (In 2022, the museum became the first facility in Japan to successfully breed this insect in captivity.)

The maintenance and management of green spaces and plantings, including the tree planting project inthe southern waterfront area of Hyogo Prefecture
Hanshin Engei is actively involved in the maintenance and management of green spaces, plantings, and other facilities that lead tothe restoration and conservation of biodiversity. For example, it collects the seeds of plants native to the forests and grasslands ofthe surrounding area, grows them into seedlings, and plants them to create diverse ecosystems at the Amagasaki-no-mori Central
Green Park. This park is a former plant site, and situated on reclaimed land in the southern Hyogo Prefecture, covered approximately 291,000 m2, and is developed as an urban green park. By managing green spaces with consideration for the habitats of diverse
organisms, we are contributing to the restoration and protection of biodiversity, as evidenced by the steadily increasing number ofbird, insect, and other species identified in the monitoring surveys regularly conducted by the government.
TargetIndicator

Range

TargetFY2023 Results

Number of biodiversity-related
projects undertaken

Hanshin Engei

The number of maintenance andmanagement initiatives equal or
exceed the previous year’s results

5

Engagement and collaboration with NPOs and other groups and the local community
We have selected some civic groups that promote forest conservation activities throughtree planting and tree growing, satoyama conservation, and protection of endangered
species as subsidized groups for the Hankyu Hanshin Dreams and Communities of the
Future Fund, a social contribution activity of the Hankyu Hanshin Group. By supporting theactivities of these groups with donations and engaging in regular dialogue with them, we
are working together to conserve biodiversity to create “communities that people will truly
want to live in” which is the goal of our social contribution activities.

Obtaining biodiversity-related certification schemes

Mushugawa River Area Nature Protection
Association

Hanshin Engei has constructed and owns the green areas of the Osaka Umeda Twin
Towers South including wall and rooftop greening, and is working on planting and maintaining them. Thanks to these efforts, those green areas of that building have been recognized as a high-quality green space in the city, and is certified as an “Urban Oasis” under
the Social and Environmental Green Evaluation System (SEGES) implemented by theOrganization for Landscape and Urban Green Infrastructure.
We use plants that are indigenous to the Yodo River and Mt. Rokko areas for the walland rooftop greening as well as for nearby sidewalks to create an integrated design. The
Osaka Umeda Twin Towers South rooftop
Gardengreening is contributing to mitigating the heat island phenomenon, conserving biodiversity
and creating high-quality landscapes in Umeda. In recognition of this contribution, the building received a biodiversity prize from the governor of Osaka at the 16th excellent greening awards held by the prefecture and a
Osaka City Mayor’s Award at Osaka Environmentally Friendly Architecture Award held for the fiscal year ended on March 31, 2023.

46

SUSTAINABILITY IN GENERALSOCIAL

1. Environmental Management

ENVIRONMENT

2. Climate Change

3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

5. Water Resources
Approach

1. 環境マネジメント

5. 水資源The Hankyu Hanshin Holdings Group’s major area of operation is Japan, which has relatively low water risks.* However, theGroup places importance on utilizing water resources effectively to contribute toward a circular economy, as declared in its policy
for the priority issue of “environmental protection” toward Sustainable Management. In addition, the Group’s Basic Environmental
Policy, formulated in 2010, states that the Group will monitor the environmental impact of its business activities and take action
to reduce it.
With the cooperation of our tenants and other stakeholders, the Group is committed to reducing water withdrawal as muchas possible by saving water and using gray water facilities mainly in the Real Estate Business.
* Almost all areas of Japan are positioned as low to low-medium in water risks (the first and second lowest on a five-point scale) on the Aqueduct Water Risk
Atlas.

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (page 32).

Initiatives
Effective use of gray water facilities
The Group is working to reduce the amount of water withdrawal by introducing wastewater treatment facilities and gray water
facilities as part of its water management plan. Osaka Umeda Twin Towers South, HERBIS OSAKA, and HERBIS ENT haveadopted gray water facilities that purify and treat kitchen wastewater from restaurants and stores, well water and rainwater forvarious uses as miscellaneous water (i.e. for watering plants and toilet flushing), thereby promoting the recycling of water andhelping to reduce the amount of water withdrawal. For the treatment of organic wastewater from kitchens, we use microorganisms that are highly effective at degrading lipids, starches and proteins.
Wastewater treatment and recycling system (Example: Osaka Umeda Twin Towers South)
Equipment to treat wastewater from kitchens

Decontaminationequipment

Wastewater from kitchens

Secondary treatment
equipment

Discharge to the sewerage system

Well water

Well water treatment
equipment

Rainwater

Rainwater treatment
equipment

Used for watering
plants andtoilet flushing

Gray water(Tank of water for
miscellaneous use)

System to treat wastewater from kitchens

Wastewater
influent

Bacillus
preparation
feeding device

B

Sewagemeasuring
deviceScreeningdeviceMeasuring
deviceFloating
carriers
B

P

Flow amountadjustment tank

Gray
water

Addition of microbial
preparation for thetreatment of wastewaterby floating carriers
In this method, bacillus
bacteria that exist in nature
and are highly effective at
breaking down lipids,
starches and proteins areadded for high-resolution
biota.

P

Biologicalfluid bed

47

Aerationtank

B : Blower (Oxygen supply

device to the tank)
P : Pump

SUSTAINABILITY IN GENERAL
1. Environmental Management

SOCIAL2. Climate Change

ENVIRONMENT
3. Pollution and Resources

GOVERNANCE

4. Biodiversity

5. Water Resources

Making use of rainwater
Hankyu Settsu-shi Station and Nishiyama-tennozan Station are equipped with tanks beneath platforms to store rainwater collected on the platform sheds. The stored rainwater is used to water plants at the stations and wash toilets.
The Hanshin Koshien Stadium also has underground tanks to store rainwater that pours on the “Ginsan” roof and use it forwatering the field and for washing toilets.

Promoting water conservation (Reducing water withdrawal)• Encouraging the reuse of bed and bath linens
Hankyu Hanshin Hotels encourages guests staying consecutive nights at its 17 directly operated hotels (as of March 31, 2023) to use its “No Cleaning” option where towels and sheets usedon the first night are reused and not replaced. We are also striving to reduce water withdrawal
and reduce the amount of water discharged by laundry by setting the following goals.
TargetIndicator

Range

TargetFY2023 Results

Usage rate of “No Cleaning” option forstays of consecutive nights (to reduce
the amount of water withdrawal)

HankyuHanshinHotels

7.0% in FY2031(double the
FY2020 level)

7.1%

No Cleaning card

• Facility renovation initiatives
Water-efficient toilets are increasingly being installed at stations. For the toilets renewed in 2015, Hankyu Corporation introduced
the latest model urinals with the necessary washing water reduced to 0.8 liters per flush. At commercial facilities, office buildings,
and theater facilities, we have installed water-efficient equipment and upgraded to water-saving toilets and thus have realized asubstantial reduction in water use.

• Operational improvement initiatives
We are striving to save water at the facilities we manage by reducing the use of water for janitorial cleaning and by checking forleaks in bathrooms and toilets during security patrols.

DATA
Water withdrawal
Indicator

Unit

Total water withdrawal

FY2022

FY2023

3,132,412

3,327,878

3,340,134

2,893,686

3,061,812

3,092,712

Groundwater

144,232

164,383

181,712

Rainwater and other sources

94,494

101,683

65,710Service water supply and industrial
water supply (Municipal potable water)
By water source*1

FY2021m3

Water discharge
Indicator

Total water discharge*2

Unit

m3

FY20213,132,412

FY2022

3,327,878

FY2023

3,340,134• The data above covers Hankyu Hanshin Holdings, Inc. and its subsidiaries in Japan. However, some business sites on which data are difficult to obtain are
excluded. The figures for FY2023 pertain to 88 companies in Japan.
*1: No surface water, water collected in the quarry, external wastewater, or seawater was withdrawn.
*2: All wastewater was discharged through sewage to external water treatment facilities. No water was discharged into the ocean, surface water, the subsurface, wells, etc. Since most of the water withdrawal is discharged into public sewage system, the amount of water withdrawal was equated with theamount of water discharge in the calculations.

The Group’s results concerning water usage in the property portfolio (water withdrawal and discharge)
Indicator

Water resources

Water withdrawal
Water discharge*

Unit

m3

FY2021

FY2022

FY20232,799,923

2,911,640

3,167,541

2,799,923

2,911,640

3,167,541• The boundary of the aggregation of water withdrawal and discharge is properties classified as rental office business owned by companies in the Group’s Real
Estate Business Segment and for which data can be obtained, which must be reported under Rationalizing Energy use and Shifting to Non-fossil Energy.
* Since most of the water withdrawal is discharged into the public sewage system, the amount of water withdrawal was equated with the amount of water
discharge in the calculations.

48

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency

1. Corporate GovernanceApproach
The Company aims to remain a company that customers and other stakeholders trust. To this end, the Company is strengthening and increasing corporate governance by heightening the transparency and soundness of business management, complying
with relevant laws and regulations, and ensuring appropriate, timely disclosure.
Reflecting this approach, the Company has established the policies below with a view to adhering to the principles of our
Corporate Governance Code, sustaining growth, and enhancing corporate value over the medium to long term.
(1) We shall respect shareholders’ rights and ensure equality.
(2) We shall take into consideration the interests of shareholders and other stakeholders and cooperate with them appropriately.
(3) We shall disclose corporate information appropriately and ensure transparency.
(4) W e shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversight anddecision making.
(5) W e shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate value
over the medium to long term.

Governance Structure
Overview of Hankyu Hanshin Holdings, Inc.’s and the Group’s Corporate Governance
Structure
Hankyu Hanshin Holdings, Inc. is a pure holding company, and the conduct of operations is basically the responsibility of Group
member companies. Hankyu Hanshin Holdings, Inc.’s principal role is supervision and oversight of the entire Group—meaningthat these functions are separate from the conduct of Group businesses.
Through this system, the Company realizes supervision and oversight and enhances the overall governance of the Group byretaining the authority to approve the Company’s and the Group’s management policies and strategies, and the medium-term or
annual management plans of all core businesses; requiring timely submission of progress reports by operating companies; andhaving Group companies obtain approval from, or report to, Hankyu Hanshin Holdings, Inc. before taking actions that affect theGroup’s management significantly (for example, investments above a certain threshold).
With regard to the above matters, the Board of Directors, which includes outside directors, makes approval decisions andreceives reports. Moreover, to undertake preliminary reviews the Company has established a Group Management Committee,
which includes representatives of the Group’s core businesses.
Further, to ensure transparency in the appointment and dismissal of the Company’s directors and to facilitate coordination
with outside directors, the Group has established the Corporate Governance Committee, which comprises the chairman of theboard (or the president, in the chairman’s absence or unavailability) and outside directors who are independent of the Company,
and is chaired by one of the outside directors. Moreover, to ensure that concrete decisions regarding the amount of director
compensation (excluding that of members of the Audit & Supervisory Committee) under the responsibility of the Board of Directors, are made based on objective and transparent procedures, the Company has established a Compensation Committee which
comprises the chairman of the board (or the president, in the chairman’s absence or unavailability) and outside directors who are
independent of the Company, and is chaired by one of the outside directors.
In addition, as part of efforts to strengthen its overall capabilities, the Company is strengthening the governance of funding.
Measures include centralizing funding under the Company, as a rule, and distributing funds to operating companies within thelimits set out in business plans that the Company has approved.

49

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

GOVERNANCE

3. Risk Management

4. Taxation Transparency

Corporate governance system
General Meeting of Shareholders
Appointment/Dismissal

Corporate
GovernanceCommittee
Compensation
Committee

Consultation

Appointment/Dismissal
Board of 
Directors

Directors(excluding Audit &Supervisory Committee
members)

Findings

Call/Report on
execution situation

Audit & Supervisory
Committee
Directors

Audits, etc.

Appointment/
Dismissal

Accounting
audit

Accounting
Auditors (CPAs)

ReportStaff of Audit &Supervisory Committee(Audit & Supervisory
Committee members)

ReportSelection/Dismissal/Supervision

ReportReportRepresentative Directors
CallGroup Auditing Division

Participate(as observer)Group Management Committee

Audit

Participate

Group Companies
Note: The Hankyu Hanshin Holdings Group takes practical steps to enact all of the principles stipulated in the Corporate Governance Code (including those set for
the Prime Market). For examples of specific action and other items relating to corporate governance, please refer to the Corporate Governance Report WEB .
■ Independent outside directors ● Male ● Female

Board of Directors (11 members)

Corporate Governance Committee (6 members)

Chairman of the
Board

Kazuo Sumi

Chair

Yasuo
ShimadaYusuke Kusu

Yoshishige
Shimatani

Naoya Araki

Noriko Endo
(Academic)

Yuki Tsuru(Attorney at law)

Mitsuyoshi
Kobayashi

Sumi

Endo

Tsuru

Kobayashi Komiyama Takahashi(Manager)

Audit & Supervisory Committee (3 members)Compensation Committee (6 members)

Chair
Chair

Masayoshi
Ishibashi

Michiari Komiyama (Attorney at law)

Yuko Takahashi (Doctor & Academic)

Sumi

Endo

Tsuru

Kobayashi Komiyama Takahashi

Initiatives / DATA
More transparent management and effective governanceManagement organization for decision making, execution, and oversight of matters related to company
management• Board of Directors and directors
The Board of Directors of the Company retains the authority to approve the issues related to the Company’s and the Group’s
management policies and strategies, and the management plans of all core businesses. Also, the Board requires the timely
submission of progress reports by operating companies within the Group about their important investment projects and others,
thereby monitoring and supervising Group companies to enhance corporate governance as the entire Group.
The Board of Directors deliberates upon and supervises the Group’s ESG initiatives by receiving regular reports on the policies andstatus of ESG issues. Also, to address potential conflict-of-interest transactions and related-party transactions, the Board of Directors
monitors transactions involving the company's directors, major shareholders, etc., through the appropriate approval or reporting ofsuch transactions at its meetings, in accordance with statutory and regulatory provisions and the materiality of such transactions.
In order to reinforce governance and oversight capabilities and boost decision-making quality, the Board of Directors is composed of 11 directors, five of whom are independent outside directors, including those who are women and experts in legal affairs,risk management, social and environmental issues, and others. This ensures the diversity on the Board of Directors. Moreover, the
11 directors include all three members of the Audit & Supervisory Committee. The Board of Directors met 11 times in FY2023.
• Audit & Supervisory Committee and its members
Of the Audit & Supervisory Committee’s three members, two are independent outside directors. By selecting committee members who are independent from the Company and have a high level of specialist expertise, the Company endeavors to further
ensure sound decision making. We provide full backup to enable the Audit & Supervisory Committee members to perform theirgovernance and oversight functions, for example by involving the full-time member in the Group Management Committee andother meetings within the Group. The Audit & Supervisory Committee met 13 times in FY2023.
50

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

GOVERNANCE

3. Risk Management

4. Taxation Transparency• Corporate Governance Committee (voluntarily established committee that functions as a nominating committee)
To ensure transparency in the appointment and dismissal of directors and coordination with outside directors, the Corporate
Governance Committee comprises the chairman of the board (or the president, in the chairman’s absence or unavailability) andoutside directors who are independent of the Company, and is chaired by one of the outside directors. The committee gives
advice about the selection of director candidates and the dismissal of directors (excluding Audit & Supervisory Committee members) to the Board of Directors on request, serves as a forum to provide information in such areas as the Group’s finances tooutside directors. The Corporate Governance Committee met three times in FY2023.

• Compensation Committee (voluntarily established)
To ensure that the decision-making process for the amount of compensation paid to directors (excluding Audit & Supervisory
Committee members) is objective and transparent, the Compensation Committee comprises the chairman of the board (or thepresident, in the chairman’s absences or unavailability) and outside directors who are independent of the Company, and ischaired by one of the outside directors. The committee gives advice to the Board of Directors on the Company’s compensation
system and contents on request. The Compensation Committee met twice in FY2023.
• Group Management Committee
The members of the Group Management Committee include full-time directors (excluding Audit & Supervisory Committee members) and executive officers of the Company, and representatives of each of the Group’s core businesses. The committee meets
to deliberate and decide on the approval of resolutions of the Board of Directors; the Group’s management strategies and business plans; Group companies’ significant investments; and significant Group management matters. The Group Management
Committee met 17 times in FY2023.

Ensuring effectiveness of the Board of Directors and Audit & Supervisory Committee• Attendance rates at meetings of the Board of Directors, Audit & Supervisory Committee,
Corporate Governance Committee and Compensation Committee (FY2023)

Attendance Rates
Name

Position

Board of Directors

Audit & Supervisory
Committee

Corporate GovernanceCommittee

Compensation
Committee

Kazuo Sumi

Chairman and Representative
Director, Group Chief
Executive Officer

100%

—

100%

100%

Yasuo Shimada

President and Representative
Director

100%

—

—

—

Masao Shin

Executive Vice President andRepresentative Director

100%

—

—

—

Noriko Endo

Director

100%

—

100%

100%

Yuki Tsuru

Director

100%

—

100%

100%

Mitsuyoshi Kobayashi

Director

100%

—

100%

100%

Yoshishige Shimatani

Director

100%

—

—

—

Naoya Araki

Director

100%

—

—

—

Takehiro Sugiyama

Director

100%

—

—

—

Masayoshi Ishibashi

Director, Audit & Supervisory
Committee member

100%

100%

—

—

Michiari Komiyama

Director, Audit &Supervisory
Committee member

100%

100%

100%

100%

Yuko Tahakashi

Director, Audit & Supervisory
Committee member

100%

100%

100%

100%

* Composition of officers as of the end of FY2023* Yasuo Shimada, Mitsuyoshi Kobayashi and Yuko Takahashi were newly appointed to the positions at the 184th Ordinary General Meeting of Shareholders
held on June 15, 2022, and their attendance rates are shown for the meetings held after their inauguration.
* Noriyuki Inoue and Junzo Ishii retired due to the expiration of their terms at the 184th Ordinary General Meeting of Shareholders. The following shows theirattendance rates in FY2023.
Noriyuki Inoue (Director)
Board of Directors: 100%

Corporate Governance Committee: 100%Compensation Committee: 100%

Junzo Ishii (Director, Audit & Supervisory Committee Member)
Board of Directors: 100%
Corporate Governance Committee: 100%Compensation Committee: 100%

51

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency• Evaluation of the Board of Directors’ effectiveness
The Company conducts evaluations of the board’s effectiveness at the board meeting held in April every year.
• Major measures conducted in FY2023 based on past analysis and evaluation results
In response to the recommendations made about the need to provide more information on the challenges and situations facedby each of our core businesses, we improved the content of information distributed to each director via the interim and termend reports on our business performance. Moreover, we included detailed background information in the agenda documents
for each Board meeting.
Further, members of the Board visited business sites of the Group to deepen their understanding of the respective businesses.
• Analysis and evaluation process for FY2023
A summary of the process and results of an evaluation of the effectiveness of the Board of Directors conducted for FY2023 is
as shown below.
1. Evaluation process	For FY2023, the board’s effectiveness was evaluated by all directors regarding the adequacy of the board’s composition andoperations.
[Schedule]
Feb. 2023: Questionnaire survey given to each director
Apr. 2023: Reporting of the survey results at a Board meeting and interview with the directors[Evaluation items]• Composition of the Board: Composition and number of directors•M anagement of Board meetings: Scheduling, selection of agenda and reporting items, prior information sharing, detailsof explanations and materials distributed at each meeting, time spent for deliberation, details of discussions (in particularon the medium-term management plan), and proceedings of each meeting• Corporate Governance Committee and Compensation Committee: Composition and management of the Committees
2. Evaluation results	As a result of the questionnaire and interviews, the board’s composition and operations in FY2023 were deemed to beadequate, and the evaluation concluded that the board was effective and generally administered appropriately.
Conversely, it was suggested that there was room for improvement with respect to regular follow-up of the progressand results of the Group’s investment projects and information sharing regarding status indicators for the core businesses.
Taking this into account, a study will be carried out into how to further improve the board’s oversight and decision-making.

52

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency

Compensation system
Compensation of directors• Basic policies
The Company’s compensation system for directors (excluding Audit & Supervisory Committee members) further motivates themto enhance the Company’s corporate value and business performance, as well as to enhance shareholder value. Compensation
comprises two elements: fixed monetary compensation paid according to position and job responsibilities, and performance-linked stock compensation* paid in trust to representative directors.
* The Group’s stock-based, performance-linked stock compensation system covers all representative directors (currently three), including the Group CEO. The
system includes malus provisions, under which the rights to receive stock-based compensation may be withheld from any person who commits an egregious breach of duty prior to the finalization of such rights, or if any other grounds for withholding such rights arise.

• Procedure
Based on the foregoing policies, to ensure that concrete decisions regarding the amount of director compensation, which are theresponsibility of the Board of Directors, are made based on objective and transparent procedures, the Company has establisheda Compensation Committee comprising the chairman of the board (or the president, in the chairman’s absence or unavailability)
and independent outside directors, chaired by one of the outside directors. The Board of Directors makes compensation decisions after consultation with the Compensation Committee concerning the compensation system and content of compensation.
The Compensation Committee carries out multifaceted reviews of the individual compensation paid to directors (excluding Audit& Supervisory Committee members), including into the decision-making policy and whether it complies with this. It has been
determined that the Board of Directors acts in accordance with this policy and fundamentally respects the committee’s findings.
More information on this policy can be found in the Corporate Governance Report WEB .
Other efforts to strengthen governanceRegular rotation of accounting audit partners
In accordance with the rules of the Audit Corporation under the Certified Public Accountants Act, etc., the Company operates asfollows.
•T he engagement partner can be involved in the auditing services of the Company for periods not exceeding seven accounting
periods, and the lead engagement partner can be involved in the auditing services of the Company for periods not exceeding
five accounting periods.

Internal control system
Hankyu Hanshin Holdings Group recognizes that it is important to conduct our corporate activities properly for ensuring that all
Group officers and employees act with integrity and in accordance with relevant laws, articles of incorporation, regulations, andcorporate ethics and promote a managerial approach based on the concept of compliance to meet the expectations of our
stakeholders. Therefore, the Group has established the following internal control system for the entire Group and revises thesystem as necessary.

Corruption prevention and compliance
Please refer to “Governance 2. Ensure compliance and prevent corruption” (page 55).

Risk management structure
Please refer to “Risk management system” of “Governance 3. Risk management” (page 58).

Conducting internal audits
The Group Auditing Division has dedicated staff and operates under the direct control of the president. The Division establishes
regulations and conducts internal audits of the overall operations of Hankyu Hanshin Holdings, Inc. and its Group companies toensure compliance with laws, regulations, and rules. Specifically, based on the Group’s annual audit policy, each Group company
makes an audit plan, which includes measures to deal with the Group’s priority themes and to address the risks specific to thebusiness conducted by the company, and carries out audits appropriately. For example, we regularly (at least once every three
years) set audit themes for accounting and fund management and audit whether basic internal controls such as checks andapprovals related to accounting and funds are functioning effectively. In addition, we audit the compliance status with laws,
regulations, and internal rules related to our business, information security efforts, and working hour management systems, toverify that internal controls are functioning effectively throughout the Group’s management activities.

53

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency

Ensuring the reliability of financial reports
With regard to the Evaluation and Auditing of Internal Controls over Financial Reports system based on the Financial Instruments
and Exchange Act, the Group has established rules and responds appropriately by carrying out management evaluations on aconsolidated basis.

Reflecting stakeholder sentiment in operations
At the Hankyu Hanshin Holdings Group, we believe that the views of our stakeholders—including customers, local communities,
shareholders, trading partners, and employees—have an important place in our business operations.
For example, we proactively invite and receive feedback from our customers through our Listening Center and Transit Information Center as well as through dialogue meetings that we have with civic groups from our line-side areas. We share the comments thus collected from customers across the company for the improvement of our business management. We also conduct
surveys and provide answers in response to the customer opinions and questions as necessary.
Moreover, we collaborate with our business partners large and small, regardless of affiliation, for shared prosperity acrossour supply chain and are implementing appropriate business practices for subcontractors under “Declaration of Partnership Building”*.
* Declaration of Partnership Building: Initiative launched in May 2020 by the Council on Promoting Partnership
Building for Cultivating the Future, which comprises the related ministers and representatives of businessassociations. The aim of the initiative is to develop mutually beneficial and sustainable relationships between
large companies and SMEs to support future growth.

54

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT
3. Risk Management

2. Ensure Compliance and Prevent Corruption

GOVERNANCE
4. Taxation Transparency

2. Ensure Compliance and Prevent Corruption
We at the Hankyu Hanshin Holdings Group are constantly striving to live up to the stakeholders’ expectations and become agood, trustworthy organization. Our strong focus on compliance is one of the pillars underpinning our efforts in this area.

Organizational initiatives for better compliance
We have established a dedicated compliance office in the Personnel and General Affairs Division to help bolster compliancegroupwide by pursuing three main initiatives as set forth below. Moreover, the Board of Directors conducts biennial reviews tomonitor compliance with the Code of Conduct, mainly involving questionnaire surveys of employees.
We periodically review and evaluate the effectiveness of the Code of Conduct and update its contents not only to comply
with the stated rules but also to always keep in mind the perspectives of our customers and other stakeholders.

(1) Raising awareness via the Compliance Handbook
The Compliance Handbook (distributed to all the Group’s officers and employees) makes clear to officers and employees that
violations of law or social norms, or actions that betray customer trust, are prohibited, and provides handy examples of likely
scenarios. In this way, the manual is part of our effort to raise awareness of the importance of compliance.

Compliance Handbook Contents• Hankyu Hanshin Holdings Group Management Philosophy
Mission, Values, and Principles• Compliance for the Interest of Customers• Customer Safety First• Sincere Response to Customers• Proper Treatment of Personal Information• Observance of Rules• Proper Disclosure• Act as a Sensible Member of Society• Proper Use of SNS• Compliance for the Interest of Business Partners• Sincere Trading• Proper Use of Intellectual Property• No Involvement with Anti-social Forces• No Bribery or Excessive Entertainment• Compliance for the Interest of Shareholders• No Inappropriate Accounting• No Insider Trading• Compliance as a Member of Society• Environmental Activities• Compliance in Workplace• Social Activities• Satisfying Working Environment• Respect for Human Rights• Clear Distinction Between Work Spending and Private Spending• Observance of Decision-Making Procedures(2) Operation of Corporate Ethics Consultation Desk (Internal Whistle-Blower Procedures)• Corporate Ethics Consultation Desk
The Corporate Ethics Consultation Desk comprises an in-house section and an external section, which is staffed by outside
lawyers. It enables all Hankyu Hanshin Holdings Group officers and employees, as well as the Group’s business partners, toreport behavior that violates (or may violate) laws or regulations, or is otherwise unethical (including any corruptions or humanrights violations stated in the Compliance Handbook) with guaranteed anonymity. Reports to the Desk can be made online via adesignated email address (available 24 hours a day, 365 days a year) as well as by post, telephone and other means. The desk
operates in accordance with the Whistleblower Protection Act and ensures the protection of the whistleblowers by appropriately
managing any information that could identify them and preventing from prejudicial treatment or retaliation to the whistleblowers.
We provide information about the Desk in the Compliance Handbook, which is distributed to all officers and employees of
the Group. We also raise employees’ awareness of the Desk through compliance training and Group newsletters and regularly
check the awareness level at each workplace to enhance the Desk’s effectiveness.
Furthermore, the desk reports each year to the Board of Directors and the Audit & Supervisory Committee on its operations;in FY2023 it received 69 reports from throughout the whole Group.

55

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency• Procedures to follow up on non-compliance identified
Procedures to follow up on the
Corporate Ethics Consultation Desk

The Corporate Ethics Consultation Desk requests an investigation to each department and Group company related to thecontent of a consultation, and receives a report on the re-

Audit &
Supervisory
Committee
members

sponse as per the results of the investigation, and confirms
the status of the corrective actions taken.
In addition, the company takes the risks of the content of
a consultation to the Corporate Ethics Consultation Desk into
consideration, and if it is considered significant, the Group
convenes a Risk Management Committee to discuss anddecide how to deal with the matters.

Reports
Consults
Consulter
Responds

Consultation
Desk

Reports
President
Instructs

Investigates, calls forcorrection, checks
problem rectified(3) Other initiatives

Departments/
Groupcompanies

In addition, we are setting up compliance promotion offices atcore Group companies and appointing “compliance leaders”
at other companies to ensure our response is on a Groupwide
basis.

Training and raising awareness among all officers and employees
We seek to raise awareness among all Group officers and employees* regarding compliance issues through a variety of training
activities and communication as described below. Specifically, in our compliance training, we organize the compliance issues tobe considered for each stakeholder (customers, business partners, shareholders, etc.) and situation (workplace, private life, etc.)
and work to raise awareness in a more practical manner.
* Officers and employees include officers, employees, and temporary employees.

(1) Training• New recruit training, training upon promotion• Training upon first appointment to director or auditor position at a Group affiliate• Collective training for Group companies’ compliance officers• On-site training at Group companies(2) Communication• Compliance-related serials in Group magazines• Compliance-related e-mail newsletter featuring case studies and updates regarding laws and regulations• Compliance-related information posted on the Group intranet

56

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENTGOVERNANCE

3. Risk Management

2. Ensure Compliance and Prevent Corruption

4. Taxation Transparency

Anti-corruption initiatives
The Group prohibits officers and employees from engaging in corrupt practices (abusing the power entrusted to them to gain an illicit
advantage or to commit an act that is contrary to law or ethical standards) based on its rules. Specifically, we have established theAnti-Corruption Policy and have set rules to prevent corrupt practices, such as anti-insider trading rules and anti-bribery rules andguidelines. In May 2021, we announced our agreement with the United Nations Global Compact and have been promoting anti-corruption activities based on Principle 10 (“Businesses should work against corruption in all its forms, including extortion and bribery”).
The Company has published and disseminated the establishment of “Anti-Corruption Policy” and comprehensive descriptions of corruption and its prevention methods, including “No Bribery or Excessive Entertainment,” “No Inappropriate Accounting,” “No Insider Trading,” and “Sincere Trading (prohibition of abuse of dominant bargaining position),” in the Compliance Handbook distributed to all the Group’s officers and employees. We are exhaustively striving to raise anti-corruption awareness by
explaining the Anti-Corruption Policy and specific anti-corruption practices in training sessions for officers and employees. Moreover, the Board of Directors has oversight of the Anti-Corruption Policy to ensure anti-corruption compliance.

Anti-Corruption Policy
1. Preventing Bribery and Other Corrupt Practices
All officers and employees of Hankyu Hanshin Holdings Group shall comply with all applicable laws in force in the countries
where they operate and shall work to prevent corrupt practices. As used here, “corrupt practices” means practices inwhich officers or employees abuse the power entrusted to them to gain an illicit advantage or to commit an act that iscontrary to law or ethical standards. Examples of corrupt practices include bribery, unfair trade practices (including abusing
a superior bargaining position to exploit a weaker party), and insider trading. Officers and employees of Hankyu Hanshin
Holdings Group shall observe the following anti-bribery rules:(1) A ll officers and employees of Hankyu Hanshin Holdings Group shall on no account give, offer, or promise any money,
privilege, hospitality, objects of value, or any other benefit or advantage to public officials, whether directly or indirectly.
As used here, “public officials” includes persons who serve a role analogous to that of a public official. Additionally,
officers and employees shall on no account accept any privilege, hospitality, objects of value, or any other benefit oradvantage beyond that which can be justified as business practice or within social norms.
(2) W henever officers or employees of Hankyu Hanshin Holdings Group pay money to public officials, they shall accurately
record the payment and properly manage the record.
2. Organizational Support for Combatting Corrupt Practices
Hankyu Hanshin Holdings Group shall provide training to ensure that its officers and employees fully understand this policy.
Member organizations of the Hankyu Hanshin Holdings Group shall provide anti-corruption guidelines that are relevant totheir business profile.
3. Organizational Response to Corrupt Practices
Hankyu Hanshin Holdings Group shall provide information about, and facilitate the use of, the Corporate Ethics Consultation Desk, a means by which any of the Group’s officers or employees, or any trading partners or other interested parties,
can swiftly report any violations or suspected violations. The Group shall address any reports swiftly and effectively.
Effective March 1, 2022

Hankyu Hanshin Holdings, Inc.

08

11

Compliance for the Interest of Business Partners

Compliance for the Interest of Business Partners

Sincere Trading

Do not exploit your strong position.

No lockstep is allowed.

1

1

We have such a huge stock left.

2
You should
accept returns.

What!

?

What will yourcompany do with yourpricing in response to therecent revision of the law?

We plan tochange theprice to XX
yen.

No Bribery or
Excessive Entertainment

Is that farewell gift appropriate?
2

1

We will do the same asother companies do!

■The Subcontract Act also sets obligations that a subcontracting party must fulfill in making
transactions with a subcontractor. You must observe these obligations.

1

Our company will hold a XX event.
Could you buy some tickets for it?
Well.....I’m very
sorry, but I think
it is a little bit
difficult.....

2

2■In business activities, acts that hinder fair and free competition are prohibited under the
Anti-Monopoly Act. Conspiring with other companies to set the same price for a product orservice may be deemed as a violation of the Anti-Monopoly Act.

1
Of course,
he wouldn’t!

■A gift to a public official is prohibited by law. Even if you do not mean to give it for an
inappropriate purpose, it may be recognized as a “bribe.”3

Split bills when you dine with public officials
1

No, no, I don’tmean it! Well, we
will take some.

Have another drink.

2

That’s not good!

The bill for thisdrinking party
is on us today!

Thank you.

■Your business partner may not be able to refuse your request, considering its relationshipwith your company and the influence of the refusal over their transactions with you in the
future. Forcing a business partner to purchase your products by exploiting your strong
position may be deemed as a violation of the Anti-Monopoly Act.

Buzz

4

Police!!

■A public official who is entertained or receives a gift is also subject to criminal punishment.
Accordingly, you must not conduct any act that would cause trouble for public officials.

Oh, well. Our business is notvery important to you, right?

2

We would like toexpand into overseas
markets.

Everything is goingsmoothly thanks toyour work!

We are aprofessional
consulting firm.
We will takecare ofeverything.
We paid expensive
consulting fees, but they
were used as bribery!?

POLICE

What!?

Bam!！

■In some countries, bribery of public officials may be done as a usual practice, but it is still
illegal.
■Bribery of foreign officials tends to be seriously punished. In addition to a high penalty, it will
seriously damage the reputation of the Hankyu Hanshin Holdings Group.

Buzz

30

●It is prohibited by law to bribe public officials by giving money or valuable goods with theintent to obtain more favorable treatment than other companies.
●As many Japanese businesses are expanding into international markets, bribery of
foreign officials has also become a problem. People in the Hankyu Hanshin HoldingsGroup must also pay keen attention.
●Accepting or offering excessive entertainment to/from business partners may lead to
unfair transactions. Refrain from such excessive entertainment.
●To clearly demonstrate its stance of rejecting bribery and other forms of corruption
outright, the Group has declared and disclosed Anti-Corruption Policy.

Monitor what your contractor does

He did not accept
the gift...

I heard Mr. XXX of theYYY Department of ZZZCity Office will betransferred to anotherdepartment. I will givehim a farewell gift...

Buzz- zbuz

■Forcing a small-sized contractor to accept returns may be deemed as a violation of the
Subcontract Act.

Compliance for the Interest of Business Partners

Compliance for the Interest of Business Partners●All parties throughout the supply chain are required to work with each other in the interestsof co-prosperity and each other’s sustainable growth, regardless of whether they areorderers or suppliers.
●We are absolutely forbidden to force business partners to accept transaction terms
unfavorable to them or instruct them to commit an illegal act for the benefit of our company,by exploiting our strong position.
●Competition is severe for the company, but fair competition among businesses results inproviding benefits for customers and the entire society. Therefore, no act that unreasonablyinterferes with competition to obtain benefits only for the company is allowed.

What!?

■If a fee charged by a consulting firm is too high, a part of the fee may be used as bribery.
You must carefully check how the consulting fee is used by your consulting firm.

■Paying for meals of public officials may be deemed as bribery. Make sure to split the bill andpay only for what you ate or drank.

31

36

37

Example pages from the Compliance Handbook (explanations of the desirable approach toward fair and sincere dealings and measures to counter various
forms of bribery)57

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

3. Risk Management

GOVERNANCE
4. Taxation Transparency

3. Risk Management
Risk management system
We have established a risk management structure to help maintain the health of the Group’s management by preventing risks
from becoming reality, and minimizing the damage if they do. Also, we refer to ISO 31000 when establishing the risk management structure.

• Risk assessment for new and existing operations
Each Hankyu Hanshin Holdings Group company conducts an annual risk survey to identify the risks related to organizational
management, including those posed by natural disasters (including infectious diseases), accidents, information management,
and legal compliance as well as other ESG-related risks*, for both new and existing operations. Then, we assess each risk basedon the likelihood of its occurrence and impact and assume some occurrence scenarios in determining appropriate measures. We
are working on management approaches specifically for climate change-related risks and have identified the “natural disaster(such as flood) risk,” which is increasingly likely to occur due to climate change and other factors, as a Group-wide priority risk for
FY2023.
* Items identified as ESG-related risks
Environment: Climate change risks, waste and pollution risks and impact on biodiversity, etc.
Society: Risks regarding the working environment (labor issues) and occupational health and safety, human rights violation, and harassment, etc.
Governance: Comprehensive corruption risks such as unfair trade practices, insider trading, and bribery, etc.

• Risk Management Committee and Group management structure
The Hankyu Hanshin Holdings Group has an executive officer responsible for risk management. Also, to enhance the effectiveness of its risk management, the Group convenes the Risk Management Committee twice a year. The Committee is chaired by
the president of Hankyu Hanshin Holdings, Inc. and holds a meeting with the participation of the Company’s full-time directors(excluding those who are also serving as Audit & Supervisory Committee members), the executive officers, and representatives of
all core businesses. Among the participants is the executive officer responsible for risk management. Through this Committee,
the Group checks the progress made across entire Group with the measures and initiatives implemented for the following risks, :Group-wide priority risks to be addressed across the core businesses, company-specific priority risks to be addressed by eachGroup company, both of which were selected by the Group based on the risk assessment as mentioned above; and new important risks that have come to the fore due to socioeconomic and other changes in the external environment. The Group also
fosters the discussion and recognition of risks that are particularly important for the Group’s management.
The Group discusses the status of risk analysis and risk measures, including ESG-related risks through the Risk Management Committee, which annually reports the results to the Board of Directors. The Board thus has oversight of the managementof risks important to the Group, including ESG-related risk management, and reviews the effectiveness of the risk management
process as appropriate.
The Corporate Sustainability Committee also deliberates on environmental and social risks, including climate change issues,and their impact on our business. We reflect the contents of these discussions in the Group’s overall risk management strategy,
such as in the selection of priority risks when conducting risk surveys.
• Establishment of a crisis response structure
If a serious risk situation materializes despite our best efforts to prevent this through risk assessments and appropriate countermeasures against identified risks, we will form Crisis Response Team, headed by the president, tasked with making prompt andappropriate responses to prevent and minimize the spread of damage.

58

SUSTAINABILITY IN GENERAL
1. Corporate Governance

SOCIALENVIRONMENT

2. Ensure Compliance and Prevent Corruption

GOVERNANCE

3. Risk Management

4. Taxation Transparency

4. Taxation Transparency
The Hankyu Hanshin Holdings Group has established the following Tax Policy to improve the transparency and soundness of its
business management. We also fulfill our corporate social responsibilities by understanding the spirit of applicable tax-relatedlaws, complying with the tax-related laws and regulations in operating countries, and by conducting our tax operations properly.
We align tax payments with revenue-generating activity and do not engage in arbitrary tax avoidance.

Tax Policy(1) Fundamental policy
The Group wishes to remain a corporate group that has the trust of its customers and the rest of society. To this end, we arestrengthening and enhancing our corporate governance by further raising the level of transparency and soundness of our business management, complying with laws and regulations, and disclosing information in an appropriate manner and at a suitable
time. This fundamental approach will guide us as we aim to both contribute to society by paying a reasonable amount of tax andachieve sustainable growth and greater corporate value in the medium to long term.

(2) Compliance with tax laws and regulations
As well as complying with laws and regulations pertaining to taxation, we will report and pay taxes appropriately and thereby fulfill
our corporate social responsibility.

(3) Tax planning
The scope of our tax planning is based on our business objectives and actual performance and we are working to improve
corporate value through the effective use of tax incentives and other measures. Our tax planning is not conducted with the aim oftax avoidance.

(4) Tax governanceCorporate governance of taxation is covered by our groupwide governance system. We have an oversight system in place, underwhich tax-related risks are reported to the Board of Directors and Audit & Supervisory Committee as appropriate.

(5) Tax-related risk management
Should any dealings for which tax interpretations are unclear take place as part of our business activities, we take advice fromoutside experts and where needed consult with tax authorities in advance so as to minimize tax-related risk.

(6) Relationship with tax authorities
We work to maintain a positive relationship with tax authorities and respond in a timely manner to their queries accurately andhonestly.
Amount of tax paid(¥ billion)

Japan

Overseas

Total

FY2021

19.4

0.3

19.8

FY2022

-11.1

0.9

-10.1

FY2023

9.6

2.3

11.9

Note: T ax paid is a combined figure for both national and regional taxes. The figures given above are based on country-specific reports and are not directly
connected to our consolidated financial statements.

59Independent Assurance Report
The data pertaining to the Group’s GHG emissions (SCOPE 1 and 2) (page 39) and the Group’s energy consumption on a crude
oil-conversion basis (page 40) both recorded for FY2023 have been assured by the independent third-party assurance provider,
KPMG AZSA Sustainability Co., Ltd. to ensure the reliability of these data. (Indicators included in the assurance target are marked
with a symbol.)

Independent Assurance Report
To the President and Representative Director of Hankyu Hanshin Holdings, Inc.
We were engaged by Hankyu Hanshin Holdings, Inc. (the “Company”) to undertake a limited assurance engagement of theenvironmental performance indicators marked with(the “Indicators”) for the period from April 1, 2022 to March 31, 2023
included in its Sustainability Databook 2023 (the “Databook”) for the fiscal year ended March 31, 2023.
The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s
reporting criteria”), as described in the Databook.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We
conducted our engagement in accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance
Engagements other than Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on
Greenhouse Gas Statements’ issued by the International Auditing and Assurance Standards Board. The limited assurance
engagement consisted of making inquiries, primarily of persons responsible for the preparation of information presented in the
Databook, and applying analytical and other procedures, and the procedures performed vary in nature from, and are less in extent
than for, a reasonable assurance engagement. The level of assurance provided is thus not as high as that provided by a reasonableassurance engagement. Our assurance procedures included:
 Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Databook andreviewing the Company’s reporting criteria.
 Inquiring about the design of the systems and methods used to collect and process the Indicators.
 Performing analytical procedures on the Indicators.
 Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with
the Company’s reporting criteria, and recalculating the Indicators.
 Visiting the Company’s two business sites in Japan selected on the basis of a risk analysis.
 Evaluating the overall presentation of the Indicators.
Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the
Indicators in the Databook are not prepared, in all material respects, in accordance with the Company’s reporting criteria as
described in the Databook.
Our Independence and Quality Management
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for
Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior. In accordance with International Standard on
Quality Management 1, we design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

/s/ Shinnosuke Kayumi, Director
KPMG AZSA Sustainability Co., Ltd.
Osaka, Japan
March 22, 2024
Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

60

Supplementary information
Boundary of data and calculation methods for the Group’s GHG emissions(SCOPE 1 and 2) (page 39) and the Group’s energy consumption on a crude
oil-conversion basis (page 40) both in the table
Boundary of data
The Company, its 86 consolidated subsidiaries and its 13 non-consolidated subsidiaries (FY2023)

Calculation methods• GHG emissions
We aggregate CO2 emissions from energy processes.
We calculate the emissions based on the Greenhouse Gas Emissions Accounting and Reporting Manual provided by the Ministryof the Environment and the Ministry of Economy, Trade and Industry.
For CO2 emission factors set for the consumption of fuel and heat in and outside Japan and for the consumption of electricity in Japan, we use the values specified in the manual.
For CO2 emission factors for the consumption of electricity outside Japan, we use IEA emission factors.

• Energy consumption on a crude oil-conversion basis
We calculate it based on the method specified in the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy.
For the conversion factors for heat and crude oil, set for the consumption of fuel, heat and electricity, we use the values
specified in the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy (before amendment in 2023).
Boundary of data and calculation methods for GHG emissions for FY2023 based on the
GHG Protocol outside the table, of the Group’s GHG emissions (SCOPE 1 and 2) (page 39)
Boundary of data
The Company and its 79 consolidated subsidiaries (FY2023)

Calculation methods
We calculate the emissions based on “The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard REVISEDEDITION” and “GHG Protocol Scope 2 Guidance.”
For CO2 emission factors and HFC global warming potential set for the consumption of fuel and heat in and outside Japan,
we use the values specified in the GHG emissions accounting and reporting manual provided by the Ministry of the Environment
and the Ministry of Economy, Trade and Industry.
For CO2 emission factors for electricity consumption in Japan (market-based), we use the adjusted emission factors announced for each electric power supplier by the Ministries.
For CO2 emission factors for electricity consumption in Japan (location-based), we use the national average emission factors
announced by the Ministries for each electric power supplier.
For CO2 factors used for electricity consumption outside Japan (market-based and location based), we use IEA emission
factors.

61

Hankyu Hanshin Holdings, Inc.
From April 1, 2024
Corporate Sustainability Department, Group Planning Division
1-16-1 Shibata, Kita-ku, Osaka 530-0012, Japan
Phone: +81-6-6373-5174
https://www.hankyu-hanshin.co.jp/en/

Hankyu Hanshin Toho Group

Date of Issue: December 2023
Last Updated:

March 2024

Next Scheduled Issue:

October 2024