Initiatives for the SDGs

Ensure sustainable production and consumption patterns
12.4 Reduce release of chemicals and waste into the atmosphere, water and soil through proper management
In accordance with the agreed international framework, we will strive for environmentally-friendly management of chemicals and all
waste throughout the product life cycle, and significantly reduce the release of chemicals and wastes into the air, water and soil, in orderto minimize adverse effects on human health and the environment.
The United Nations has established the Sustainable Development Goals (SDGs) in order to achieve a sustainable society. The SDGs set out 17 goals and 169
targets to achieve a sustainable, diverse and inclusive society where "no one is left behind".

Achieving the SDGs
As the term "ESG (Environmental, Social and Governance) investment" becomes more frequently used, corporate activities are increasingly seen ascontributions to society. In order to be a company of "value," we must constantly work to enhance our corporate value by contributing to the resolution ofvarious issues facing society and customers. Just as the corporate slogan suggests, our company mission is to make major contributions to more automatedand efficient production-to-retail supply chains. Of the 17 goals set by the United Nations, HOKUSHO will contribute to solving four issues through corporate
activities.

We will ensure sustainable production and consumption by acquiring environmental management system certification,
switching from organic to powder coating, and adopting products that comply with the RoHS Directive (restriction of the useof chemical substances originating in Europe).
● Obtained ISO14001 certification for environmental management systems at main production facility Hakusan Factory● Installed powder coating equipment at main production facility Hakusan Factory● Switch to RoHS-compliant products for general-purchase parts

Take urgent measures to mitigate climate change and its impact

Introduction of Initiatives

13.1 Strengthen resilience and adaptability to climate-related disasters and natural disasters
Resilience and adaptability to climate-related disasters and natural disasters will be strengthened in all countries.

Promote inclusive and sustainable economic growth, as well as full, productive and rewarding employment(Decent Work) for everyone.
8.5 Provide employment and job satisfaction, as well as equal pay for equal work.
Provide full, productive and rewarding employment, as well as equal pay for equal work for all men and women, including young people
and people with disabilities.
HOKUSHO will promote Decent Work by acquiring certification for occupational health and safety management systems,
improving employment conditions and work environments, and promoting the introduction and widespread use of PAS (PieceAssorting System), which can contribute to the employment of women and people with disabilities.
● Obtained ISO45001 certification, the international standard for occupational health and safety management systems● Creating a work environment where women and employees with disabilities can play an active role (maternity leave, employment system for peoplewith disabilities)● Creating a comfortable work environment for employees with childcare or nursing care needs (childcare leave, reduced working hours system)● Employment system that allows employees to work until age 65 (retirement age extended from 60 to 65)● Promotion of work style reform promotion program (three motivators: to live, to do and to work)● Compliance with work style reform-related laws (compliance with statutory overtime, five days of paid leave per year)● Developed Piece Assorting System "PAS" that improves delivery accuracy and work efficiency of shipping/returns sorting, and contributes toemployment of women and people with disabilities● Certified as an "Ishikawa Gender Equality Promotion Declaration Company" through the "Class for Accelerating Women's Active Participation"
certification system as a measure to create a gender-equal society.

We will promote the introduction and widespread use of “VEAS,” an energy-saving control system for Autolator Heavy-Dutymodels that contributes to reducing environmental impact, and “E-VEAS,” which adds BCP (Business Continuity Plan) support,to strengthen the resilience and adaptability of internal facility logistics to disasters.
● Developed Energy-Saving Control Device “VEAS” for Autolator Heavy-Duty models (Reduces energy consumption by up to 38% and equipment power
capacity by up to 40%)
● Developed BCP-Compatible Energy-Saving Control Device “E-VEAS” for Autolator Heavy-Duty models (Reduces power consumption by up to 50%and equipment power capacity by up to 40%) (Stored energy enables independent start-up of Autolator and transfer operations to continue evenduring power failures)● Switched 30% of electricity used at headquarters and Hakusan Factory to renewable energy

Build resilient infrastructure, promote inclusive and sustainable industrialization, and promote innovation
9.4 Improve sustainability by increasing resource use efficiency and expanding use of clean technologies,
environmentally-friendly technologies and industrial processes
We will improve sustainability through improved infrastructure and industry by increasing resource use efficiency and expanding use of clean technologies,environmentally-friendly technologies and industrial processes. All countries will undertake initiatives in line with their national capabilities.

Piece Assorting System [PAS]/Universal design compatible

We will improve our sustainability by obtaining certifications for quality and environmental management systems, switchingcompany vehicles to HVs and EVs, switching from organic to powder coating, and promoting the introduction and widespreaduse of VEAS and E-VEAS Energy-Saving Control Devices for Autolator Heavy-Duty models.
● International Standards Certifications ISO9001 Quality Management Systems Certification awarded to Vertical Transfer Systems.
● Obtained ISO14001 certification for environmental management systems at main production facility Hakusan Factory● Installed powder coating equipment at main production facility Hakusan Factory● Developed Energy-Saving Control Device “VEAS” for Autolator Heavy-Duty models (Reduces energy consumption by up to 38% and equipment
power capacity by up to 40%) (Received Judging Committee's Special Award 2012 Energy Conservation Grand Prize [Product and Business ModelDivision])● BCP-Compatible Start-Up Power Assist System “E-VEAS” for Autolator Heavy-Duty models developed with Energy-Saving Control Device. (Cutsenergy usage by up to 50% and reduces equipment power capacity by up to 40% )● Switch all company vehicles to HVs and EVs at headquarters, Hakusan Factory and other branch offices

Fitted with electrical storage device
Start-Up Power Assist System

Awarded 2012

Energy Conservation
Grand Prize(Product and Business Model Division)
Sponsor: The Energy Conservation Center, Japan

Evolu

tionVertical Electric Assist System
Patent Acquired

Vertical Electric Assist System
Patent AcquiredAwarded 2012 "Energy Conservation Grand Prize" [ VEAS]

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Powder coating equipment (Hakusan Factory)[E-VEAS] Control Box<BCP-Compatible> Pallet Transfer Vertical Reciprocating Transfer Machine Autolator

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