Kanematsu’s Foundations

Sustainability
For more details, please visit our website.

Message from the Chair of the Sustainability Management Committee

Targets for 2050 and Improving our ESG
Scoresbenchmark for passive management since March 2022
by Japan’s Government Pension Investment Fund(GPIF). Japanese companies may be selected for inclusion in this index if they have excellent ESG rating fromFTSE Russell and meet certain criteria with regard togreenhouse gas emissions per unit of net sales. In addition, Kanematsu has been selected for inclusion in thefollowing three other ESG indices used by the GPIF.

One of the targets that the Kanematsu Group has set
under the metrics and targets disclosed in line with
the Task Force on Climate-related Financial Disclosures(TCFD) guidance is to be carbon negative, with net
negative emissions of 1 million t-CO2 (Scopes 1 and 2)
in 2050. Japan’s total emissions in 2022 were 1,066
million t-CO2,* meaning that we are aiming to contribute to society through a net negative amountequivalent to around 0.1% of current national emissions. This target is aligned with Principle 8 of the UN
Global Compact, “Undertake initiatives to promote
greater environmental responsibility.”
In recognition of such initiatives, our ESG scores
have been steadily increasing year after year (seetable below).
Furthermore, in 2023, we were selected for the
first time for inclusion in the FTSE Blossom Japan Sector
Relative Index, an environmental, social, and governance (ESG) index of domestic stocks used as a

Director,
Senior Executive Officer
Chair of the Sustainability
Management Committee• MSCI Japan Empowering Women Index (WIN)• S&P/JPX Carbon Efficient Index• Morningstar Japan ex-REIT Gender Diversity Tilt Index

The Origins of Value Creation

Tetsuro Tsutano

https://www.kanematsu.co.jp/en/sustainability/

The Kanematsu Group’s ESG scores still haveroom to rise higher, and we are confident that we can
improve them further. By continuing to advance ESG
activities in line with our management philosophy, we
will work toward corporate sustainability in this, thehuman rights century.

The Kanematsu Group’s Value Creation

Source: Global Note “Global CO2 Emissions Ranking by Country (Basedon BP Statistical Review of World Energy)”

Kanematsu Group ESG Scores

Working toward Corporate Sustainability in the
Human Rights Century
Establishment of Kanematsu Group’s
Human Rights Policy

2021

2022

1.4

1.4

2.8

S&P Global

14

27

32

MSCI

BB

CDP
(Climate change)–

FTSE Blossom Japan Sector Relative Index = 2.0 or higher

Upgraded・IR室）
in April 2023 to the middle of seven ranks.
BB
BBB
事務局（サステナビ
リティ推進室、広報–

B

Evaluation started with the 2022 reorganization of the Tokyo Stock Exchange
markets. Kanematsu is currently at the third highest of eight ranks.

Kanematsu’s Foundations

In 19th century Japan, there were numerous ambitious business people that fought their way out ofpoverty to success. Few of them, however, chose apath that deliberately steered away from building aplutocratic empire and amassing capital for themselves, electing instead to contribute to the advanceof society through business and to leave their markon social development, even in fields peripheral totheir businesses. Kanematsu’s founder, Fusajiro
Kanematsu, was one such man of business.
The Japanese Wikipedia page for “Japanese
ESOP” presents the employee stock option plan
(ESOP) devised by Fusajiro Kanematsu Shoten as an
early example of a Japanese ESOP. During his lifetime, Fusajiro liked to say that he belonged first to
Kanematsu Shoten, not the Kanematsu family, andafter his death, the shares of Kanematsu Shoten
were distributed among the employees, rather thanhis relatives, passing on the aspiration to contributeto society through business to the members of theCompany.
Our founding purpose, “Let us sow and nurturethe seeds of global prosperity,” expresses a way of
thinking aligned with contributing to the public
interest, society, the international community, andhumanity. Based on these principles, in February
2023, we established the Kanematsu Group’s Human
Rights Policy, clarifying our approach to initiatives
related to ensuring respect for human rights to all
stakeholders. Furthermore, in March, we endorsed
the United Nations Global Compact (UNGC), whichcalls on its members to uphold and practice its 10principles in the four fields of “human rights,”“labour,” “environment,” and “anti-corruption.”
By fulfilling our responsibility to respect humanrights, we will carry on the aspiration of our founderand ensure the sustainability and resilience of ourbusinesses.

2020
FTSE Russell

Sustainability Promotion Framework
Board of Directors

Sustainability Management Committee
Chair
Director,
senior executive
officer(chief officer ofcorporate planning)

Members

Expert members

Executive officers(COO business divisions or chief officers)

Managers of business division planning offices

Electronics & Devices
Division
Foods Division
Meat Products Division

Grain, Oilseeds & Feedstuff
Division
Steel, Materials & Plant
Division
Motor Vehicles & Aerospace
Division

Electronics
Planning Office
Foods & Grain
Planning Office

Steel, Materials & Plant
Planning Office
Motor Vehicles & Aerospace
Planning Office

General Manager, Finance Department(Public & Investor Relations)

Secretariat (Sustainability Management Section, Public & Investor Relations Section)(As of April 1, 2023)

34

KANEMATSU Integrated Report 2023

KANEMATSU Integrated Report 2023

35

Kanematsu’s Foundations

Sustainability

The Key Issues and Our Activities

Decarbonization
Initiatives

In 2021, Kanematsu revised its issues of high materiality, identifying five new key issues.
We made these revisions in light of the global increase in awareness of the importance ofsustainability and ESG management as well as such major trends as the shift toward
decarbonization following the original designation of issues in 2018.
When revising the key issues, we considered Kanematsu’s Corporate Principle, importance to management, and stakeholder expectations. Furthermore, the Sustainability
Management Committee, which we changed to mainly include the top management ofour business divisions, discussed our current projects and future direction.
The three key issues linked by the circle at right are issues to address through business activities, while the two below are key to the management base supporting saidbusiness activities.

Alliance with The Norinchukin Bank to reduce GHG emissions in the
agriculture and food industries
Business alliance with Asuene Inc., which provides cloud services
used to reduce CO2 emissions
Pilot testing of Datatec Co., Ltd.’s Misenavi
Delivery of EV chargers in Brazil

Start of sale of electricity from a small-scale
wind-power generation project

Sustainable coffee plantation

Major Initiatives

Building a
Sustainable Supply
Chain

Down comforter recycling businessMutual Developmentwith Local
Communities

p42

Creating an Environment
That Enables Diverse
Work Styles©UMITO Partners

Delivered hospital boat for the Marshall Islands
Raising awareness and offering guidance on safe internet use
Supporting the Vun Art employment support
association for disabled persons by ordering
canvas bags (Kanematsu Vietnam)

Implementation of new activity-based work (ABW)
work style
Implementation of “Hello Baby” leave system
Participation in the Human CapitalManagement Consortium

Enhancement ofGovernance andCompliance

p57

Kanematsu’s Foundations

Business selling Miracle Meat plant-based meat made fromsprouted soybeans
Aircraft rotable parts business and part-out businessBusiness supplying heat reflective paint to combat global
warming
Business selling biomass fuels (woodchips, Palm Kernel Shell)
Lumber preservation treatment technology helping reduce
global warming
Business promoting the transition to LP gas fuelSecuring traceability in marine products
Acquiring certification from the Round Table on Responsible
Wood that has undergone
Soy Association (RTRS)

Proof-of-concept trial of blood transportation by drone

The Kanematsu Group’s Value Creation

Establishment of Kanematsu Group’s Human Rights Policy
Acquisition of Carbon Credits via the Joint Crediting Mechanism (JCM)
Cloud-based farm management systems for chicken farming
Business supplying high-value-added health foods for healthier living
Security business to guard against cyber attacks
Project to improve Hokkaido Japanese sardine fisheriesp41

The Origins of Value Creation

Sustainable coffee plantation-related initiatives
p40
Forest conservation initiatives (REDD+)
Eco Wood Pile environmentally friendly ground improvement using
domestically produced timber

Enhancing the corporate governance system
Enhancing internal control and risk management systems

preservation treatment used
in a train station ceiling

The Process of Identifying Key Issues
STEP

01

Create a list of issues
Based on the SDGs, the UN Global Compact,
ISO 26000, and other international guidelines, we identified issues in all ofKanematsu’s businesses and compared themwith the goals of each division to create a listof issues that must be addressed for the sustainable growth of society and Kanematsu.

STEP

02

Evaluate the importance of each issue
to the company and to society
Considering Kanematsu’s Corporate Principle,
individual divisions’ strengths, and the needs
and expectations of society, we plotted theissues identified in step 1 on a materiality
matrix,* with importance to external stakeholders on the vertical axis and importance to theKanematsu Group on the horizontal axis.

* The materiality matrix is disclosed on Kanematsu’s website.

36

KANEMATSU Integrated Report 2023

STEP

03

Discussion among internal and external
stakeholders
In addition to discussions by the Sustainability
Management Committee, which comprises mainly officers from business divisions and the chief
officer of corporate planning, we held discussions
with the outside directors and other stakeholders
to confirm the appropriateness of the identification process and the issues under consideration.

STEP

04

Identify key issues
In May 2021, the key issues wereapproved by the Sustainability
Management Committee and finalized
by resolution of the Board of Directors.

Periodic review in light of changes in the external environment

KANEMATSU Integrated Report 2023

37

Kanematsu’s Foundations

Sustainability

Progress on Key Issues

Electronics & Devices

Materiality / Related SDGs

Steel, Materials & Plant

Motor Vehicles & Aerospace

Companywide

Risks

Opportunities

Notable Initiatives (Fiscal 2023)

Building a Sustainable Supply Chain• Business continuity risk in existing businessmodels due to inadequate response

We will respect the environment and human rights, communicate with diverse
actors in society, and realize stable and sustainable procurement, supply,
distribution, and services together with our partners and customers.

• Decreased competitiveness and trust due todelay in addressing human rights issues inthe supply chain• Growing demand for sustainable andenvironmentally friendly products, creation of
new markets and services

Launched sales of environmentally friendly labels made with LIMEX Sheet
p40
Kanematsu Sustech Corporation’s Eco Wood Pile won the Minister of the Environment Prize in the
30th Global Environment Awards
		 Buildings constructed: 5,131 (up 1.5% year on year; cumulative total: 43,348)
		 Material used: 26,970 m3 (up 10.0% year on year; cumulative total: 218,840 m3)
Increased sustainable coffee sales volume (up 2% year on year)
Received certification from the Round Table on Responsible Soy Association (RTRS)
Kaneyo Co., Ltd. launched a down comforter recycling business (material recycled: 8,934 kg)
Established human rights policies and began to conduct human rights due diligence• Unbalanced food supply and demand due toglobal population increase

Aiming to achieve net zero greenhouse gas emissions, we will promote ourclean fuel and renewable energy business to contribute to the mitigation of
global warming.

• Decrease in sales of related products
alongside decrease in demand for fossil fuels• Increased burden of carbon pricing andcarbon border taxes• Factory damage and supply chain disruption
due to increasingly severe extreme weather
events• Changes in food-producing regions due toaverage temperature increases

Through our global operations, we will support the lives of people around theglobe, work on improving social infrastructure, and contribute to thesustainable growth and development of local communities.

We will create a work environment that encourages each individual to leverage
his or her unique talents and qualities, supporting diverse work styles.
Furthermore, we will improve training programs to develop managers capableof creating and expanding businesses.

Enhancement of Governance and Compliance
We will maintain a robust supervisory system to prevent accidents and fraud
and aim for sustainable growth through the transparent disclosure of
information to stakeholders.

KANEMATSU Integrated Report 2023

• Introduction of new products and services
alongside development and popularization of
new and low-carbon technologies• Increase in new climate change-conscious
applications and products• Creation of new commercial channels
alongside the development of foodproducing regions• Regulatory changes and business continuity
risk due to legal or political changes• New business creation based on initiatives tosolve social issues• Decline in relationships of trust due to defects
in infrastructure or services provided•Building relationships of trust and stabilizing
businesses through operations aligned with
the needs of local communities• Business continuity risk due to human rights
issues in business regions• Declines in efficiency and productivity due todelays in creating suitable work environments• Loss of talent and business opportunities due
to inadequate initiatives to create suitable
work environments• Business continuity risk due to internal
control dysfunction• Decrease in enterprise value due to legal
violations• Reinforcing competitiveness and establishinga foundation for stable growth throughdiversity-oriented management• Creation of new value and innovation• Clarification of decision-making processes
through the creation of a robust governancesystem• Increase in enterprise value through highly
transparent disclosure

Distributed DAIZ Inc.’s plant-based meat made from sprouted soybeans
Kanematsu Petroleum Corp. selected as a supporting organization of the Ministry of the Environment’s
SHIFT Program
p41
Joint Crediting Mechanism (JCM) projects:
		 1 new project; 8 projects in operation; 1 project in application process
Started the sale of electricity from a small-scale wind-power generation project (total capacity: 96 kW)
Kanematsu Yuso Co., Ltd.’s Kokura Oil Depot transitioned to the use of LP gas boilers with support from
Kanematsu Petroleum Corp., for an estimated 200 t/year CO2 emissions reduction
Entered an alliance with The Norinchukin Bank to reduce GHG emissions in the agriculture and foodindustries
Entered a business alliance with Asuene Inc., which provides cloud services used to reduce CO2 emissions
Implemented GX accelerator activities (Groupwide decarbonization project team)Core members: 8; registered members: 48 (20 in fiscal 2022)
Entered an agreement to provide inspection and analysis supplies to a quality inspection, verification, and consulting center for agricultural, forestry, and fishery products in Vietnam
Implemented a proof-of-concept trial of blood transportation by drone in Kaga City, Ishikawa
Prefecture
p41
Cooperated in anti-terrorism grant program as part of the Japanese government’s ODA in theMaldives and Sri Lanka
Kanematsu Vietnam supported the Vun Art employment support association for disabled persons
by ordering 400 canvas bags

Launched D&I promotion project team directly under the President & CEO
Held D&I web training on adapting to cultural differences (682 participants)
Kanematsu University (July 2022–June 2023)
p50
		 Basic course (161 participants)
		 Advanced course (101 participants)
		 Professional course (53 participants)
Business plan training (September 2022–March 2023; 52 participants)
Executive management training (August 2022–March 2023; 58 participants)
Implemented new activity-based work (ABW) work style
Full flextime system usage: 81.8%

Kanematsu’s Foundations

Creating an Environment That Enables Diverse Work Styles• Food demand expansion and diversification
due to population rise

The Kanematsu Group’s Value Creation

Mutual Development with Local Communities• Gaining customer trust and create new
businesses based on approach that addresses
sustainability and human rights issues

The Origins of Value Creation

Decarbonization Initiatives

38

Foods, Meat & Grain

p51

Nominating Committee and Compensation Committee: Each comprise four members, of which
three, including the committee chairs, are independent outside directors
p68
Percentage of independent outside directors: 43% (three of seven total directors)
Held compliance-related e-learning classes
Implemented management DX, fully digitized and improved transparency of meeting operations• Strengthening relationships with stakeholders

KANEMATSU Integrated Report 2023

39

Kanematsu’s Foundations

Sustainability

Addressing the Five Key Issues
Building a Sustainable Supply Chain

The Kanematsu Group’s Supply Chain Management
The Kanematsu Group has codified the founding purpose of Kanematsu’s founder, Fusajiro Kanematsu,
in its Corporate Principle. We engage in business in Japan and around the globe based on our mission ofcontributing to international society and economic development. As we provide all kinds of goods,
functions, and services in our wide-ranging businesses and build diverse supply chains, we recognizethat protecting the global environment and human rights is an urgent issue. With an eye toward

cooperation and mutual development with our customers and business partners, we will continue to leverage theinsight and know-how accumulated over Kanematsu’s long history to provide goods and services with added value.
Through these corporate activities, we aim to achieve the sustained development of the global environment,
society, economy, and of the Kanematsu Group.

Business Highlights

Electronics & Devices

Foods

Meat Products

Grain, Oilseeds & Feedstuff

Aiming for a Sustainable
Aquaculture Supply Chain

Kanematsu is developing and selling environmentally friendly labels made with
LIMEX Sheet, a material developed andmanufactured by TBM Co., Ltd. that is
made mainly from limestone. LIMEX Sheetcontains no wood pulp, and the amountof water used in its production is much
lower than that used in making paperlabels, helping to conserve forestry andwater resources.
Not only does LIMEX Sheet offer superior durability and water resistance in comparison to paper, but compared with othersynthetic papers commonly used for labels,
such as polypropylene (PP) or polyethylene
terephthalate (PET) sheets, the use of
LIMEX Sheet for labels produces lower
emissions of CO2 and other greenhousegases and reduces petroleum-derived plastic usage.

Kanematsu recently celebrated 20 years ofbusiness with Daterra Coffee, a producerof what are considered to be the highest
quality coffee beans in Brazil. As a sustainable coffee pioneer that emphasizes both
quality and environmental factors, Daterra
Coffee was the first coffee plantation in
Brazil to be certified by the Rainforest
Alliance, which aims to protect tropicalrainforests and improve labor
environments.
When we initiated our business with
Daterra Coffee in 2003, considerations ofsustainability in the food supply chain
were still unusual. However, Kanematsu
saw the value in Daterra Coffee’s ethos ofsustainability and has worked with Daterra
Coffee as a partner ever since. Together,
we will continue working as pioneers ofsustainable coffee, further contributing tolocal communities and the natural environment while providing safe and delicious
coffee to consumers.

As a long-time pioneer in the meat product industry boasting a leading market
share, Kanematsu has amassed a wealth of
insight and a robust product lineup.
Upstream, we are working to reinforce
relationships and diversify supply sources
through equity investment in and businesstie-ups with suppliers, while downstream
we are building frameworks for the stablesupply of safe, reliable products that offer
high added value and meet customer
needs.
As part of these efforts, we are currently advancing an initiative to have beef
tongue imported by Kanematsu processed
at a facility operated by the social welfare
corporation Harakara in Miyagi Prefecture.
Harakara’s aim of making communities
more livable by creating work opportunities for people with disabilities aligns with
Kanematsu’s key issue of “Mutual development with local communities,” which is
aimed at contributing to sustainable community growth and development. The
beef tongue processed at this facility has
been well received by customers.

Kanematsu, UMITO Partners Inc., Ikeshita
Sangyo, and Hamahei Gyogyo have jointly
established the Hokkaido JapaneseSardine Fishery Improvement Project (FIP)
with the aim of obtaining MSC
certification.*As the world’s population increases,
the global consumption of marine products is expanding, and fish farm production volume is steadily increasing, as are
the importance of and needs for aquaculture products as a source of protein.
However, aquaculture also presents issues
related to reducing the burden on ecosystems and the global environment. For
example, the production of the fish mealused as feed in aquaculture can lead to theoverexploitation of fishery resources, anduneaten feed left in the water at farms cannegatively affect local water quality.
Through the FIP, Kanematsu is working
to build a business while solving environmental and social issues, such as thoserelated to water pollution and biodiversity.
By doing so, we aim to help increase thesustainability of domestically produced
animal feedstuff ingredients and enhance
the competitiveness of Japan’s overallaquaculture supply chain.
*M arine Stewardship Council certification is given
to marine products, such as fish, shellfish, shrimp,
and crab, that meet certain conditions related tothe sustainable use of natural marine products
and protection of the marine environment.

40

KANEMATSU Integrated Report 2023

Support for High-efficiency
Installations for Facilities withTargets (SHIFT) Program

Proof-of-Concept Trial of Blood
Transportation by Drone

Based on its track record to date, in 2023
Kanematsu Petroleum Corp. was registered as a supporting organization for formulating decarbonization plans under the
Ministry of the Environment’s SHIFT
Program. The SHIFT Program aims to create leading examples of decarbonization
practices at factories and workplaces,
widely publicize and horizontally apply
such knowledge, and thereby contributeto achieving Japan’s 2030 target for greenhouse gas (GHG) emissions reduction and2050 target of carbon neutrality. Subsidies
are granted for projects in the following
two categories.
1. Formulating decarbonization promotion plans
2. Reducing CO2 emissions through theintroduction of high-efficiency equipment, fuel conversion work, or operational improvements based on suchdecarbonization promotion plans; calculating emissions volumes; and retiring emission allowances
Kanematsu Petroleum Corp. will use
the subsidies from the national government to provide a wide range of proposals
to customers through activities that
include the identification of energy-saving
opportunities and the subsequent introduction of high-efficiency equipment andfuel conversion work. Aiming to contributeto the accelerating tide of decarbonization
across society, the Kanematsu Group will
begin by steadily implementing energysaving measures close at hand to help customers reduce their carbon emissions.

In cooperation with Kaga City in Ishikawa
Prefecture, Kanematsu implemented a
proof-of-concept trial of blood transportation by drone. Kanematsu and Kaga City
have entered a comprehensive partnershipagreement for the promotion of regional
revitalization using flying vehicles anddrones, and Kaga City is implementing
activities aimed achieving an “industrial
revolution in the sky” to attract and retain
businesses in the Advanced Air Mobility
industry. The trial was implemented aspart of these efforts with the aim of establishing a practical medical drone delivery
network in the future.
Skyports Limited, with which
Kanematsu has an equity and business alliance, took part in the trial as its operator,
verifying factors related to temperature
control, temperature management, andthe number of deliveries possible using
drone transportation. The trial featured
the first flight in Japan of the Kookaburra
drone made by Swoop Aero, flying along
two delivery routes of 6 km and 10 km
between medical facilities in Kaga City.
By combining the functions and experience of Skyports and the KanematsuGroup’s network, we will continue working toward the practical implementationof drone businesses in Japan and contribute to the creation of a sustainable society.

KANEMATSU Integrated Report 2023

Kanematsu’s Foundations

Beef Tongue Processing at
Harakara

The Kanematsu Group’s Value Creation

20 Years of Supplying Sustainable
CoffeeMotor Vehicles & Aerospace
The Origins of Value Creation

Contributing to Sustainability withEnvironmentally Friendly Labels

Steel, Materials & Plant

41

Kanematsu’s Foundations

Sustainability

Building a Sustainable Supply Chain

Initiatives to Ensure Respect for Human Rights
Overview of Efforts to Respect Human Rights in Business
At Kanematsu: Completed

Establishment and publication
1. of human rights policy

Frequency of Human Rights Issues by Sector according to an External ESG Databaseand Similarity to the Company’s Businesses

Management-level commitment

Technology Hardware
Electronic andand Equipment
Electrical Equipment

SectorKanematsu’s
Businesses

2. Human rights due diligence

Human rights issues

Identification and assessment ofadverse human rights impacts

Identify business to survey for human rights risks
and assess their degree of impact to prioritize them

2.

Prevention and mitigation ofadverse human rights impacts

Implement measures to prevent human rights abuses
and mitigate risks

3. Tracking of activity effectivenessMonitor activities and evaluate their effectivenessCommunication and information
disclosure

Publish information on the Company’s initiatives

4.

Software andComputer Services

Telecommunications

Food and Beverage

Industrial Metals

Semiconductor
Components,
Semiconductor
Equipment

Industrial Electronics,
Electronic Materials

ICT Solutions

Mobile

Foods

Steel

Oil and Gas

Chemicals

Construction andMaterials

Industrial
Engineering

Aerospace andDefenseAutomobiles andParts

EnergyFunctional Chemicals

Plant andInfrastructure

Machine Tools &Industrial Machinery

Aerospace

Motor Vehicles andParts

Poor employment conditions(Appropriate working hours)
Poor employment condition(Appropriate wage)

Dialogue withstakeholders

Social discrimination /Discrimination in employment
Occupational health and safetyissuesFreedom of association andcollective bargaining

Child labor
Local participation issues /Impacts on communities
Privacy rights

Establishment of Kanematsu Group’s Human Rights Policy

For more details, please visit our website.

contribution to society, to the international community,
and to humanity. The starting point for all of Kanematsu’s
corporate activities, we carry this purpose forward with us
in our Corporate Principle. The Kanematsu Group’s Human
Rights Policy is based on the Corporate Principle and clarifies our measures to ensure respect for human rights inorder to fulfill our responsibilities to all stakeholders.

https://www.kanematsu.co.jp/en/sustainability/respect_to_human_rights/

identifying businesses to survey for human rights risks
from among our wide-ranging businesses. Next, we
assessed the impact of the potential human rights issues
anticipated in the identified businesses in terms of likelihood of occurrence and severity of impact.

Human rights issues

Kanematsu’s
Businesses

Poor employment conditions(Appropriate working hours)
Poor employment condition(Appropriate wage)

Occupational health and safetyissuesFreedom of association andcollective bargaining
Forced labor

Identifying Businesses to Survey for Human Rights Risks
To begin the human rights risk survey, we first utilized an
external database on ESG issues to compare our businesses against sectors that have a high frequency of humanrights issues in order to estimate the frequency of eachtype of human rights issue in each of our businesses. As aresult of this process, based on the number of issues ineach sector in the broader economy and the degree ofSectorSocial discrimination /Discrimination in employment

Human Rights Due Diligence
The Kanematsu Group has established and continuously
operates a system of human rights due diligence to identify and assess adverse human rights impacts on stakeholders involved with its business activities in order toprevent or mitigate such adverse impacts. We began theprocess of identifying and assessing adverse impacts by

OverallKanematsu’s Foundations

In February 2023, the Kanematsu Group’s Human Rights
Policy was established, with the approval of the Board of
Directors, based on United Nations Guiding Principles on
Business and Human Rights and international norms related to human rights. Our founding purpose, “Let us sow andnurture the seeds of global prosperity” aligns with our contemporary conceptions of the public good and

The Kanematsu Group’s Value Creation

If a human rights abuse has occurred and thus cannot be
prevented by taking appropriate measures, apologize,
provide restitution and financial or non-financial compensation, and implement measures to prevent recurrences

Note: Diagram prepared by Kanematsu based on a diagram created by the Ministry of Economy, Trade and Industry

KANEMATSU Integrated Report 2023

Large

Forced labor

3. Remedy

42

MediumThe Origins of Value Creation

At Kanematsu: Still to do

Periodically repeat

1.

Small

similarity of our businesses with these sectors, we determined that the energy and food businesses should be thesurvey targets. Note that we determined that the Group’s
plant and infrastructure business is dissimilar to the database’s construction industry sector as it handles facilities
and equipment specific to ODA-related projects.

Child labor
Local participation issues /Impacts on communities
Privacy rights
Overall

Selected as businesses to survey for human rights risk
KANEMATSU Integrated Report 2023

43

Kanematsu’s Foundations

Sustainability

Building a Sustainable Supply Chain

Decarbonization Initiatives

Initiatives to Ensure Respect for Human Rights

Disclosure based on the TCFD Recommendations
Kanematsu endorsed the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) in June 2021. We strive to disclose information in accordance with the TCFD’s framework to make iteasier for stakeholders to learn about and understand the climate change-related risks and opportunities
associated with our business. A summary of this disclosure is provided below, with more details available
on a dedicated page on our website.

Human Rights Issue Impact Assessment
Next, we assessed the impact by stakeholder* of the potential human rights issues anticipated in the energy businessand foods business in terms of likelihood of occurrence andseverity of impact. Based on these assessments, we plotted ahuman rights issue impact map for each of these businesses.

Likelihood of
occurrence
How likely or
unlikely humanrights issues areto occur

Impact severity
How severe the impact of issues is when they occur
1. Degree of adverse impact (scale)
2. Number of people affected (scope)
3. Possibility of restitution (possibility of remedy)* Stakeholders included in assessments: Employees, Group companies, contractors, suppliers, local residents, and consumers

Please visit our website for details.

https://www.kanematsu.co.jp/en/sustainability/tcfd/

Governance and Risk Management

Energy Business
Human Rights Issue Impact Map

Occupational health andsafetyImpact on local residents

Discrimination
Payment of appropriate wages/
living wages
Right to form and join labor unions

Excessive labor/
working hours


Describe the board’s oversight of climate-related risks and opportunities.

Monitoring organization

Board of Directors

Describe management’s role in assessing and managing climate-relatedrisks and opportunities.

Role of management

Discussion and reporting in the Sustainability Management Committee
meetings, which are attended mainly by the Chief Officer of Corporate
Planning and COO (executive officers)

Forced labor

Governance System

Child labor

Monitoring/
Supervision

low

Severity of impact
Group companies

Suppliers (oil-producing countries)

Suppliers

Local residents (oil-producing countries, etc.)

Execution

Suppliers

Likelihood of occurrenceP ayment of appropriate
wages/living wages
Impact on local residents

Describe the organization’s processes for identifying and assessing
climate-related risks

Forced labor

Severity of impact
Local residents (residents near factories, etc.)

High
Consumers

Through the human rights issue impact assessment, we identified and prioritized the salient human rights issues and impacted
stakeholders in each of our businesses (human rights issues in red are those of particular priority in that particular business).
Procurement

EnergyContractors

Foods

R&D, production
Suppliers
Suppliers(overseas)(domestic)• Forced labor
Occupational• Discrimination health and safety

Sales
Suppliers(Kanematsu Group)

Shipping

Distribution
Employees

Use bycustomers
Consumers

Disposal/
recycling• Forced labor•Child labor•Discrimination

Initiatives Going Forward
The next step will be to compile information on current initiatives in each business and develop a human rights due diligence plan. We will also investigate the potential and actual impact of each human rights issue and begin to consider
prevention and mitigation measures.
44

KANEMATSU Integrated Report 2023

Executive Officer
Steel,
Materials &Plant

TCFD recommended disclosures

Identifying Salient Human Rights Issues

Local
residents
Impact on
local residents

Foods

Meat
Products

Executive Officer
Grain,
Oilseeds &Feedstuff

Executive Officer
Motor
Vehicles &Aerospace

Secretariat•Sustainability Management Section•Public & Investor Relations Section

Risk Management

Child labor

Note: Human rights issues affecting multiple stakeholder types are plotted with reference to the stakeholder assessed to present the most severe impact.

SectorExecutive Officer

Our initiatives (summary)
Identification andassessment

Business divisions

Describe the organization’s processes for managing climate-related risks

Management

Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization’s overall risk management

Integration (reporting,monitoring and supervision)

Sustainability Management Committee
Business divisions → Sustainability Management Committee →Board of Directors

Kanematsu’s Foundations

Contractors

Electronics &Devices

Executive Officer

The Kanematsu Group’s Value Creation

Priority issues for Kanematsu

User health and safety
low

Chief Officer of Corporate Planning
Executive Officer

High

Occupational health and safety
Excessive labor/working hours
 Right to form and join labor
unionsReportSustainability Management Committee
Management

Human Rights Issue Impact Map

Discrimination

Board of Directors

High

Foods Business (sesame, coffee, food products processed in China)

Group companies

Our initiatives (summary)Strategy
The promotion of investment in environment-related
business areas is one of the priority initiatives under our
medium-term vision, future 135, and we consider addressing climate change to be a business opportunity.
We have conducted a scenario analysis on the Groupbusinesses selected as subject to significant impact fromclimate change. As a result of the analysis, we believe thateven though both risks and opportunities exist in all the
scenarios, the impact from opportunities surpasses thatfrom risks.

Selection of Businesses for Scenario Analysis
To evaluate the qualitative impact of climate change on
the Group’s businesses, we first classified them into highrisk sectors and non-high-risk sectors as per the TCFD recommendations. Next, we categorized the impact on theGroup from the quantitative perspective of sales. Of thefour businesses that showed a large qualitative impact
and quantitative impact, we selected the businesses that
account for a relatively large portion of our sales on aconsolidated basis (IFRS revenue) for scenario analysis.
•Continued from fiscal 2022: North American beefbusiness, steel tubing business•Selected in fiscal 2023: Corn business, kerosene business

Quantitative aspect (sales)

Likelihood of occurrence

High

TCFD recommended disclosures

The Origins of Value Creation

Priority issues for Kanematsu

Non-high-risk sectors

High-risk sectors• Mobile• ICT Solutions• Industrial Electronics, Electronic
Materials• Semiconductor Components,
Semiconductor Equipment• Meat Products (North American
beef business)• Steel (Steel Tubing Business)• Grain, Oilseeds & Feedstuff(Corn Business)• Energy (Kerosene Business)• Machine Tools & Industrial
Machinery• Plant and Infrastructure*• Foods• Aerospace• Motor Vehicles and Parts• Functional Chemicals

Qualitative aspect (climate change)* The Kanematsu Group’s plant and infrastructure business mainly comprises
Official Development Assistance and Joint Crediting Mechanism projects
KANEMATSU Integrated Report 2023

45

Kanematsu’s Foundations

Sustainability

Decarbonization Initiatives

Disclosure based on the TCFD Recommendations
TCFD recommended disclosures

Our initiatives (summary)

Climate change drivers• Performed scenario analysis of four businesses with a large impact on the Group on the basis of climate-related impacts(qualitative aspect) and sales/profit (quantitative aspect)• Analyses of the corn business and kerosene business, which were newly included in fiscal 2023, are shown below
For the analyses of the North American beef business and steel tubing business, please visit our website

https://www.kanematsu.co.jp/en/sustainability/tcfd/

Categorize into large/medium/small

Describe the resilience of theorganization’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario• Potential risks and opportunities exist for the North American beef business, steel tubing business, corn business, and kerosene
business in all scenarios• On the basis of the analysis, we are formulating business strategy that focuses on climate change-related opportunities• We will promote investment in environment-related business areas as a priority initiative under our medium-term vision, future 135→Achievement in fiscal 2023: Investment in Australian environmental technology startup Samsara Eco

Impacts

Analysis results

Special Feature: Innovation Investment

p32

Risk
Opportunity

Small

MediumLarge

Adoption of plant-based
meat alternatives

Reputation

MarketChanges in consumerawareness and preferences

4°C scenario
2030

Increased carbon pricing burden on
processing facilities•Increase in procurement costs as aresult of higher local operational costs
caused by rising fuel prices•Increase/decrease in transportation
costs resulting from rising fuel prices
Decline in demand for feed as result of
decreased demand for beef and othermeats caused by the adoption of plantbased meat alternatives

̶Establish feed mills for chickens and pigs,
which will see relatively small declines indemandDecline in demand for feed as a resultof decreased demand for beef andother meats
̶Growth in demand for raw materials for
low-GHG emission products̶Fluctuations in electricity
costs

Increase in electricity costs at
processing and storage sites

̶

Reputation amongcustomers, consumers,
and investors

Changes in reputation amongcustomers, consumers, and investors
based on process of climate-change
measures

KANEMATSU Integrated Report 2023

•Sell raw materials for DAIZ Inc.’s Miracle
Meat (plant-based meat)•Begin supply of grain for use in plantbased meat alternatives

̶̶

Revise sales prices

̶

Cultivate demand for bioplastics

Financial impact

4°C scenario
2030

2050

2°C or lower
scenario
2030
2050

Measures•Revise sales prices•Sell low-carbon products

Tightening CO2 regulations•Stricter energy-saving standard
regulations•Decline in sales resulting from reduced
demand for kerosene caused by a shift
toward low-carbon energy•Increase demand for renewable energy

Expand renewable energy businesses, suchas the biomass fuel business

Development andadoption of low-carbon
technologies

Increase in investment in thedevelopment of new technologies,
such as EOR and CCS

̶

̶

̶

̶

Develop and sell products related to EOR
and CCS in the steel tubing business

Replacement with lowGHG emission products

Decrease in sales due to the adoptionof electrical power

̶

̶

̶

̶

Expand renewable energy business

Rising raw material costs

Increase in kerosene procurement costs
due to rising crude oil prices

̶̶

Revise sales prices

Reputation amongcustomers, consumers,
and investors

Changes in reputation amongcustomers, consumers, and investors
based on progress of climate changerelated measures̶̶•Conduct proactive stakeholder engagement•Continue transparent information disclosure

Intensification ofabnormal weather (e.g.
cyclones, floods)

Loss of sales opportunities due tosupply chain disruption

Rise in sea level•Processing site relocation costs•Increase in capital expenditure to
take measures against rising sea
levels (relocation of facilities, etc.)̶Select and develop production areas inneighboring regions with shorter transportdistances̶

Risk ( )Opportunity( )Increase in operational costs (use ofenergy, use of fuel for Group vessels
and cars, etc.) due to increase incarbon taxes

Measures

Revise sales prices

Increase in procurement costs as aresult of rising raw material costs
caused by increased demand for nonfeed uses, such as ethanol production

Technology development
and market expansion forrenewable energy fuels

2050

2°C or lower
scenario
2030
2050

Physical risks

Policy and legal
Technology
Transition risks

Tightening CO2 regulations

Demand is expected for low-GHG emission products, such as bioplastics.

※

̶

※

̶

Kanematsu’s Foundations

46

Increased adoption ofcarbon pricing

Financial impact

A significant decline in demand for corn feed is expected as a result of slowing demand for beef and othermeats in the 2°C or lower scenario.

MarketLarge•Revise sales prices•Develop new production areas̶Increased adoption ofcarbon pricing

Physical (chronic) Physical (acute) Reputation

Medium̶

Policy and legal

Risks

Transition risks

Opportunities

Risk ( )Opportunity( )•Increase in procurement costs
resulting from rising corn prices•Decline in corn harvest due toworsening droughts•Implement initiatives to strengthen supply
chain resilience•Diversify suppliers and domestic storage
locationsTechnology

Financial impact

Corn BusinessClimate change drivers•Rise in averagetemperature•Changes in rainfall andother weather patterns

Measures

The Kanematsu Group’s Value Creation

The financial impacts of climate-related risks and opportunities presented here are the impacts on the profits or expenses of the businesses selected for the scenario analysis, not on those of the Company as a whole. The impacts are classified into three categories: Large, medium, and small.

Small

Loss of sales opportunities due tosupply chain disruption

2050

2°C or lower
scenario
2030
2050

Kerosene Business

Impacts of Climate-Related Risks and Opportunities

Large: ¥1 billion or more
Medium: ¥500 million or more
Small: Less than ¥500 million—: Qualitative evaluation only

4°C scenario
2030

Intensification ofabnormal weather (e.g.
cyclones, floods)

Climate change drivers

Quantitative criteria

Financial impact

The Origins of Value Creation

Describe the impact of climate-relatedrisks and opportunities on theorganization’s businesses, strategy, andfinancial planning

Physical risks

Describe the climate-related risks andopportunities the organization has
identified over the short, medium, andlong term

Physical (chronic) Physical (acute)

Risks and opportunities

Risk ( )Opportunity( )•Ensure BCP measures in the supply chain•Build a framework for mutual support intimes of disaster with other companies in
the industry
̶

̶

̶

̶

•Relocate distribution centers•Revise sales prices* Based on the WEO 2022, the 4℃ scenario assumes an increase in crude oil prices as a result of increased demand, and the 2°C or lower scenario assumes adecline in crude oil prices due to decreased demand.

̶

̶

̶

̶

Revise sales prices̶•Begin supply of grain for use in plantbased meat alternatives•Sell raw materials for DAIZ Inc.’s Miracle
Meat (plant-based meat)̶

Risk
Opportunity

The 2°C or lower scenario forecasts a decline in demand for kerosene as a result of tighter regulations, andthe 4°C scenario forecasts an increase in procurement costs due to increased demand.
Expansion of the renewable energy business and sales of low-GHG emission products.
KANEMATSU Integrated Report 2023

47

Kanematsu’s Foundations

Sustainability

Decarbonization Initiatives

Creating an Environment That Enables Diverse Work Styles

Disclosure based on the TCFD Recommendations

Human Capital Management

Metrics and Targets
First, we will aim to quickly achieve carbon neutrality by
2025. We will reduce CO₂ emissions by shifting to renewable energy. Any remaining emissions that cannot be
reduced in this way will be offset with the credits generated from our businesses—converting our contribution to
GHG emissions reduction via REDD+ projects into credits—to achieve carbon neutrality. From there, we will continue

expanding our clean fuel and renewable energy businesses, REDD+ projects, and Joint Crediting Mechanism projects to increase avoided emissions, aiming to becomecarbon negative with negative net emissions of 150,000
t-CO₂ and 1,000,000 t-CO₂ by 2030 and 2050, respectively,
and thereby contribute to the reduction of GHG emissions
both within Japan and internationally.

Our initiatives (summary)
MetricGHG emissions

CO2 emissions

Fiscal 2023: 28,321 t-CO2 (97 Group companies, including the Company)(Assured breakdown: Scope 1: 9,507 t-CO2 / Scope 2: 18,814 t-CO2)
Please visit our website for the independent verification report on these figures (Japanese)

Disclose Scope 1, Scope 2, and, if appropriate, Scope
3 GHG emissions and the related risks

https://www.kanematsu.co.jp/sustainability/files/Independent_Assurance_Report_jp_20230810.pdf
Fiscal 2022: 29,497 t-CO2 (95 Group companies, including the Company)(Assured breakdown: Scope 1: 9,772 t-CO2 / Scope 2: 19,725 t-CO2)
Fiscal 2021: 27,800 t-CO2 (94 Group companies, including the Company)(Estimated breakdown: Scope 1: 9,200 t-CO2 / Scope 2: 18,600 t-CO2)

Describe the targets used by the organization to
manage climate-related risks and opportunities andperformance against targets

2025 Carbon neutral1
2030 Carbon negative2: -150,000 t-CO2
2050 Carbon negative: -1,000,000 t-CO2

1. Carbon neutral is a state in which the Group’s CO2 emissions (Scopes 1 and 2) are balanced with the credits generated
by the Group through forest conservation projects and Joint Crediting Mechanism projects and avoided emissions.
2. Carbon negative is a state in which the credits generated by the Group through forest conservation projects and Joint
Crediting Mechanism projects and avoided emissions exceed the Group’s CO2 emissions (Scopes 1 and 2).

CO2emissions

Yuko Tahara
Outside Director
The Kanematsu Group’s Value Creation

Targets

Kanematsu’s human capital management initiatives are steadily evolving. In
November 2022, with the head office move, Kanematsu adopted an activitybased work system, realizing a flat approach to working that transcends thebarriers between divisions. The cheerful expressions on the faces of theemployees are the greatest testament to the success of the change to newwork styles. Employees can be seen spending their lunch time as they please at
Café The Perch, the café located in the center of the office, and quietly pondering new projects in the library area.
At the same time, Kanematsu recently announced a robust Human
Capital Policy, reflecting the evolution of its D&I—diversity and inclusion—initiatives to include equity, becoming DE&I. Indeed, Kanematsu has been conducting educational activities, such as Pride Week, a series of events topromote understanding of DE&I, including LGBTQ+ issues, held to coincidewith the promulgation of Japan’s LGBT Understanding Promotion Act.
Furthermore, the Company is engaged in active discussions aimed at creatinga new personnel system.
I see particular promise in Kanematsu’s implementation of human capitalmanagement leveraging its strengths as a trading company. Now in my fifth
year as an outside director, I feel that there is something remarkable about
Kanematsu’s intellectual capital, the core of the Group’s intangible assets.
Through the repeated creation of businesses from scratch, in and outside
Japan, Kanematsu has built up a wide-ranging wealth of expertise in businesscreation. At the same time, the Company’s invaluable bonds with its business
partners, based on relationships of trust, are an important intangible asset in
the form of social and relationship equity. Needless to say, intangible assets
are what investors focus on most, as they are essential to the creation of thetangible assets of businesses and their successes.
And, of course, the source of this intellectual capital is nothing other thanhuman capital.
In my role as an outside director, I will do my utmost to help Kanematsu
leverage its strengths as a trading company to the fullest in implementing
human capital management that leads to business creation.

The Origins of Value Creation

TCFD recommended disclosures
Disclose the metrics used by the organization toassess climate-related risks and opportunities inline with its strategy and risk management process

The Promise of Human Capital Management
Leveraging the Strengths of a Trading Company

Carbon negative
150,000 t-CO2

2020

2025

2030

Carbon negative
1,000,000 t-CO2

2050

Human Capital Management Initiatives

New personnel system
Third engagement survey

2024

Advanced Career (AC) support system implemented(Year)

Eruboshi (two-star) certified* Note: The above targets are for Scopes 1 and 2. Targets for Scope 3 will be established separately.

2023

Moved to new Tokyo Head OfficeSome human capital data disclosed online

2022

Mutual Development with Local Communities
2021

Social Contribution through Our Operations
Health Promotion Section launched

Every employee of the Kanematsu Group, as a good citizen, acts with an awareness of the importance of
their social responsibilities, proactively working to solve social issues through business and social contribution activities with the aim of realizing a sustainable society. At the same time, through volunteering,
employees broaden their horizons, learn new values, and gain new insights, helping to create richer andmore vibrant communities.
Please visit our website for details.

https://www.kanematsu.co.jp/en/sustainability/contribute/social_contribution.html

Kanematsu’s Foundations

Carbon neutral

AvoidedCO2emissions

Kanematsu University launched
D&I team launched

2019

2018
First engagement survey

New dress code (KG Biz)
implemented
Adoption of remote work andsatellite offices
Human capital policy established

Full flextime system implemented

2020

Second engagement survey
Health & Productivity Management
Outstanding Organization certified
Family care support enhanced
Platinum Kurumin certified
Remote work rules established
Diversity hiring implemented

Satellite office trial launched

48

KANEMATSU Integrated Report 2023

KANEMATSU Integrated Report 2023

49

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Human Resource Development
Overall Approach to Human Resource Development

Human Capital Development Policy
In accordance with on the Human Capital Development Policy presented on page 27, we are implementing the following initiatives based on the key human resource development themes shown below.

Graduate School Program Goal for Human Resources
Concept

Learn advanced management expertise

Undergraduate Program Goal for Human Resources
Concept

Goal

Acquisition of Added Value and Expansion of Scale
Kanematsu University
training, depending on the content. The rich array of content ranges from the fundamental, such as business manners and foreign languages, to specialized knowledge andskills, such as business investment, legal matters, andanger management. Through Kanematsu University, weare developing the next generation of management-level
human resources.

Human Resource Development Programs and Participants (July 2022–June 2023)
Category

Concept

Key programs and results

Years 11–15

Executive Management Training
As part of Kanematsu University, a new executive management training system was created ahead of the startof classes in fiscal 2017 to foster the skills needed to operate businesses and organizations from an executive management perspective. Specifically, the targets of thistraining are to foster strategy formulation and human

Implemented: August 2022–March 2023
Participants: 58 (including 15 from Group
companies)

e-learning, group training, etc.

ProfessionalcourseYears 8–10

M&A and business investment training

e-learning, group training, etc.

Business plan training

Undergraduate

AdvancedcourseYears 4–7

Learn knowledge needed
as an organizational/
project leader

・Critical thinking
・Management strategy and business planning・Accounting and financee-learning, group training, etc.

Basic course
Years 1–3

Learn knowledge needed to
be a fully competentprofessional

KANEMATSU Integrated Report 2023

Implemented: September 2022–
March 2023
Participants: 52 (including 20 from Group
companies)

Yuki ShindoManager, Section No.2, Specialty Steel Foreign Trade Department

Monetary and Time Investment in Human Resource Development (Non-Consolidated)

Monetary investment

e-learning, group training, etc.

Training hours
Learn knowledge needed tolive as a fully-fledged adult50

Implemented: March 2023
Participants: 13

Training for new graduate hires

The six-month executive management training program
consisted of lectures by outside instructors and casestudies, providing comprehensive education in the practical knowledge and perspectives required in management-level human resources. In addition to classroom
studies, the program included self-analysis based on
360-degree evaluations, interviews with current management-level professionals, and group work with the othertrainees from a wide range of divisions. Through this widearray of stimulating inputs, the course prompted us toreexamine our own values and articulate our own visions
for our futures.
The executive management training enabled me to
not only increase my basic knowledge of management
but gain a more concrete understanding of what it willtake to reach the vision I have for my future, which I feel
was extremely valuable. Going forward, I will apply what I
have learned to my current work, continuing to engage infriendly competition with the other participants as I
leverage these insights in new business creation andorganizational operations.

Kanematsu’s Foundations

Learn basic knowledge
needed as a next-generation
management professional(global leader)resource management abilities and impart the basic
knowledge an executive manager must have. As we aim
for the acquisition of added value and expansion of scale,
we are working to develop human resources with theability to lead organizations and manage businesses.

The Kanematsu Group’s Value Creation

Graduate School・Strategy formulation skills
・Human resource management skills
・Management knowledge

Has the discernment of a business creator and manager as a next-generation
management professional (global leader); can be entrusted with actual business
management in a management role
Knowledge: Overall management knowledge, including management
strategy, finance, and accounting
Experience: Experience in a project management office and in organizational
management

Comment from an Executive Management Trainee’s Perspective

Executive Management Training

Learn advanced
management expertise

Goal

Has specialized management knowledge
Has progressed from theoretical understanding of management to practical ability
Specific knowledge of management strategy and M&A in multiple businesses
Knowledge of corporate governance and risk management
Practical skills in setting goals, operational management, team building, andhuman resource development
Practical skills in mission formulation, developing medium- and long-term
division strategy, and organizational design

The Origins of Value Creation

Kanematsu University, a reinforced, more systematic version of previous training systems, was launched in July
2019 to develop management professionals who will create new businesses. The university curriculum comprises
three categories: 1. General education, 2. Interpersonal
knowledge and skills, and 3. Professional knowledge andskills. Courses are administered via e-learning or group

Gain comprehensive basic knowledge needed for management¥91.39 million; ¥110,000 per full-time employee1(Cost of Kanematsu University: ¥67 million; ¥150,000 per participant)
1. N umber of employees calculated based on full-time equivalent (FTE); does not include employees on leave, re-hired
retirees, or temporary employees
Total training hours2: 20,403; 25 hours per full-time employee(Kanematsu University training hours: 47 hours per participant)
2. T otal for Kanematsu University courses

Notes 1. Data for July 1, 2021 to June 30, 2022
2. Total training hours for the 43 Undergraduate program courses and Graduate School program (per-student basis).
. •Basic course (175 participants): 63 hours
		 •Advanced course (112 participants): 28 hours
		 •Professional course (47 participants): 19 hours
		 •Graduate School (102 participants): 50 hours
KANEMATSU Integrated Report 2023

51

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Human Resource Development

Sowing Seeds to Create a New Portfolio
Diversity Hiring and Mid-Career Hiring
students with diverse backgrounds from around theworld, we are hiring international students graduatingfrom Japanese universities and Japanese students graduating from overseas universities. In addition, we are
expanding mid-career hiring to bring in knowledge andexperience that differs from what we have internally.

Taking advantage of the wide variety of businesses of the Kanematsu Group, we are deepening the diversity of ourhuman resources’ knowledge and experience through internal transfers and personnel exchanges with Group companies and portfolio companies. In addition, we have established a career consulting team of qualified career consultants
to provide an environment that supports employees’ autonomous career development.

Comment from a Member of the Career Consulting Team

Comment from a Non-Japanese Citizen Employee

Yoonwoo Kim
Section 1, Motor Vehicles & Parts Department No. 1

Wakaba Yokoo
Human Resources Planning Section, Human Resources Department

Promote Groupwide DX

The Kanematsu Group’s Value Creation

I came to Japan to from South Korea in 2015, and after
graduating from a four-year university here, I was hired asa new graduate by Kanematsu. Kanematsu caught myinterest and I chose it because, as a trading company withdiverse functions that operates in a wide range of business areas around the world, I got the sense that it would
offer me the chance to take the lead in blazing my own
path forward.
Currently, in parallel to my work in Kanematsu’s
existing motor vehicle and parts exporting business, I am
also engaged in new business creation efforts. Leveraging
my background, knowledge, and experience, I am
working with companies in South Korea to formulate a
new EV-related business.
Going forward, I hope to get this new business off theground, and eventually expand it globally.

Today, as life spans grow longer, it is more important thanever for individuals to autonomously develop theircareers. At the same time, companies are being called
upon to provide systems and environments that support
such efforts. In addition to support through a transfer
system that respects individuals’ career aspirations, we
also provide more intangible support by leveraging theknowledge we offer as a result of our professional qualifications. By providing career-related training, disseminating information, offering consultations, andconducting interviews, we will continue to provide
support for autonomous career development tailored toeach employee.

The Origins of Value Creation

To create a new business portfolio that goes beyond
merely iterating on our existing businesses, we believethat we will need to enter new markets with new products and customers that we cannot adequately approachwith our existing internal knowledge and experience. We
are therefore working to secure diverse human resources.
In our new graduate hiring, with an eye to recruiting

Fostering Experience through Transfers

Developing DX Business Personnel
In our supply chains, we are promoting DX in cooperation
with our business partners to aid them in overcoming thedifficulties they face in transforming their operations, withthe goal of utilizing digital and automation technologies
to transition to next-generation businesses.
We believe that our DX business personnel mustpossess both insight into digital technologies and theability to combine this with business acumen. We are
therefore not only implementing training to enhance IT
literacy, but implementing personnel exchanges withGroup companies that handle digital technologies todevelop professionals who can promote DX in step withour business partners’ levels of digitization.

Yoko Kaneko

I came to Kanematsu as a mid-career hire in 2020. My
work now is mainly in importing canola and other edible
oil raw ingredients and selling them to food productmanufacturers in Japan. I have many years of experiencein handling food ingredients at a trading company frommy previous job, and I apply that experience to businessevery day.
Looking at Kanematsu from the outside, before I was
hired, my impression was that it was a kind of collectiveof experts, one in which each individual was highly
knowledgeable about the products they work with. Inline with that idea, in my current work, I strive to exert apresence as a true professional for my customers.
Rather than merely concentrating on sales, I am awareof the importance of making proposals that connect withthe broader visions of customers, and I hope to take on
new challenges and widen my horizons in order to realize
such proposals.

Kanematsu’s Foundations

Comment from a Mid-Career Hire
Furatto, Degitaru?
From January 2023, the Company has operated the
DX data website called “Furatto, Degitaru?” for use
in-house and by Group companies. Centered on casesof internal DX initiatives, we distribute content every
other week in the form of articles, webinars, andcolumns on the topics of the vividness and realism of
the DX project based on the business format and situation of general trading companies.
In the six months since the announcement, over
80% of employees have viewed online videos, and theeffort has helped create specific uses for digital technologies. We nurture a DX mindset among every
Group employee and provide support for taking thefirst step toward utilizing digital technology. Goingforward, we will expand content, mainly themes
based on viewer data analyses and interview surveys,
as a part of our efforts to nurture grounded DX
personnel. (The illustration below is the internal declaration banner for content distributed in the past.)

A webinar for a dialogue about the Company’s case ofcentralizing

A participation report for an exhibition tour for employeesinterested in owned media

Oilseed & Processed Soy Products Section,
Food & Grain Materials Department

52

KANEMATSU Integrated Report 2023

KANEMATSU Integrated Report 2023

53

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Work Environments for Employees
Support for Balancing Work and Childcare

Work Environment PolicyCore Values for Organizational and Corporate
Development Leveraging Human Resources

Since 2020, Kanematsu has received “Platinum Kurumin”
certification from the Ministry of Health, Labour andWelfare. This certification is granted to companies that are
implementing particularly high-level initiatives to support
their employees in balancing work and childcare. Aiming toenable employees to autonomously engage in their workand continue to fully participate professionally regardlessof the ups and downs of life events, we are expanding our

Women’s Participation and Advancement

Leveraging Individuality through Diversity, Equity and Inclusion (DE&I)

In August 2022, Kanematsu received “Eruboshi” certification from the Ministry of Health, Labour and Welfare. Thiscertification is granted to companies that have implemented excellent efforts to promote women’s participation and advancement in the workplace. Kanematsu wascertified as having attained the second of three levels(two stars), having met the certification standards in thefour categories of “recruitment,” “length of continuous
employment,” “working hours and work styles,” andComment from an Employee Working Overseas

Companywide Initiatives
information about the careers of diverse employees, andhold lectures. In fiscal 2022, we established a Companywide
project team for efforts in this area, and in fiscal 2023, under
the direct control of the President & CEO, this team implemented initiatives to accelerate inclusion.

Comments from DE&I Team Members

Tsuzumi Hirano

Kouta Ito

Tsuzumi Hirano

Section 2, Industrial Electronics
Department

Salary & Benefits Administration Section and
Human Resources Planning Section, Human
Resources Department

Motivated by a desire to enable all women
to be themselves and thrive, and toprovide opportunities to learn and think
about challenges related to health, career,and mental health, I organized an
International Women’s Day event with afocus on learning about these topics as
they directly impact employees.

Kumi Kawata
Board Member and Treasurer, General Manager, Accounting &General Affairs Department, Kanematsu Taiwan Corporation

General Employer Action Plan (Women’s Participation and Advancement)
Duration

KANEMATSU Integrated Report 2023

April 1, 2019 to March 31, 2024

Issues theCompany
Faces

Although Kanematsu hires a certain number of women every year,
the percentages of women among all new graduate hires,
employees in core operations, and employees in management
positions are low.

Targets

1. Increase the number of women working in core operations inassistant section manager-level or higher positions to 35 (from27 at the end of fiscal 2019)
2. Increase the percentage of women among new graduate hires
to 42% (from 34% in fiscal 2019).

Initiatives

54

Since December 2021, I have been stationed in Taiwan as
Treasurer of Kanematsu Taiwan Corporation. I am responsible
for overall administrative operations of Kanematsu Taiwan andother Group companies in Taiwan.
My work includes not only finance and accounting, in which
I have previous experience, but extends across personnel,
general affairs, legal, and IT, which take on every day throughtrial and error. It is often difficult, but getting to broaden thescope of my work and knowledge is also fun and satisfying.
I joined Kanematsu as a region specific employee that could
only be assigned to work within a specified area, and I had
never even been on an overseas business trip, so I feel very
fortunate to have had the chance to bring my family (myspouse and two children) with me on an overseas assignment,
and to have had the understanding of those around me necessary to do so. Making the decision to change to a career-track
position, which entails being stationed overseas, and pushingmyself in this way has broadened my horizons. I hope to use
this broader perspective to contribute to the Kanematsu Groupthrough my work.

Kanematsu’s Foundations

Kouta Ito
Motivated by a desire to make Kanematsu
a better company by utilizing thestrengths of diverse divisions and people,
through the DE&I team, I promoted theuse of more informal language between
employees of different levels and organized lunches for people interested incommon topics, aiming to foster a flatter
culture in which everyone can freely talkto one another regardless of rank orposition.

“diverse career development paths.”
Indeed, we have implemented systems
that allow employees to choose fromdiverse career paths, including a system
for rehiring employees who left theCompany to accompany a spouse who
was transferred to another location and a system thatallows region specific employees to take manager orassistant manager positions.

The Kanematsu Group’s Value Creation

The Diversity and Inclusion (D&I) Team (now the DE&I Team) was launched in 2019 to proactively incorporate manykinds of difference. We aim to grow in size and strength as a global company that will continue to contribute tosociety over the next century and, to this end, to be a flexible organization in which everyone is compensated fairly
and equitably and able to fully utilize their diverse abilities.

Kanematsu has formed a DE&I Team that is promoting
respect for and acceptance of diverse values and ways ofthinking in order to create environments that will make iteasier for all employees to work and utilize their abilities.
To encourage employees to take ownership of DE&I
issues, we provide Companywide e-learning, sharesystems of shortened work hours forchildcare, flextime, and discounts onbabysitting services. Furthermore, in
October 2022 we introduced a childcare leave system, “Hello Baby” leave,
aimed promoting childcare in a moregenderless way, and we are working to further improveconditions internally to support employees.
The Origins of Value Creation

We are implementing the following initiatives based on
the Work Environment Policy (see p. 27).
To enhance employee engagement, we have designated four core values for organizational and corporate
development, as shown in the diagram at right: Leverage
Individuality, Equality & Respect, Support Ambitious
Efforts, and Work Style Options. Going forward, we willrevise the core values as needed to maximize the abilitiesof all of our people.
The key themes of our Work Environment Policy are
as follows.

Increasing the percentage of women among new graduate hires
and creating systems to promote female employee retention

Years ended March 31

2019

2020

2021

2022

2023

Female career-track employees*
at fiscal year-end

52

54

64

66

68

3

4

5

7

9

27

28

31

31

38

34.0%

39.0%

51.0%

63.6%

43.9%

Female employees at manager
level or above at fiscal year-end
Female responsibility band
employees at fiscal year-end
Women among new graduate
hires

Note: Figures for Kanematsu Corporation (non-consolidated)* Employees for whom work location is determined according to theCompany’s needs and not restricted to any specific area. These employees eventually move into core operations.
KANEMATSU Integrated Report 2023

55

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Work Environments for Employees

Enhancing Engagement to Maximize Performance
Kanematsu has made improving employee satisfaction a priority initiative under future 135. As part of efforts inthis area, we carry out employee engagement surveys of all Kanematsu employees to understand where we standand the issues we face, verifying the effects of measures implemented as we work to enhance employee
satisfaction. We carried out the first employee engagement survey in fiscal 2019, followed by a second survey infiscal 2022, the halfway point of future 135. The second survey showed improvement in employee satisfaction
compared with the first (Figures 1 and 2).
Figure 1. Survey Results on Employee Engagement1

Figure 2. Survey Results on Effective Employee Utilization2

(%)
80

（%）
80

56%

61%

66%
56%

63%

60

51%

40

40

20

20

0

0

67%
55%

of creating a corporate culture within Kanematsu of ongoing business creation by embracing challenges and change,
the secretariat will formulate bottom-up proposals for new
projects and systems aimed at further developing our corporate culture.

Activity-Based Working
Reflecting Kanematsu’s founding purpose, “Let us sow
and nurture the seeds of global prosperity,” we believethat in order to sow the seeds of new businesses and flexibly change and adapt while continuing to create value,
we must go beyond conventional approaches ofoperating within organizational silos to generate innovation that spans business areas. To this end, coinciding
with the relocation of the Tokyo Head Office, we haveadopted activity-based working (ABW).

The Origins of Value Creation60

one has received final approval resulting in capital
expenditure.
To expand this project in fiscal 2024, five employees
volunteered to act as the club’s secretariat and have been
operating it since April of this year. With the stated mission

We believe the improvement in employee satisfaction reflects the effects of the measures we have implemented,
including the launch of Kanematsu University, workflow reform through systems and other infrastructure
improvement, and the promotion of DE&I and health and productivity management. However, the survey also
showed that our level of employee engagement is still below the global average, and multiple hurdles to increasing
employee satisfaction remain, such as organizational silos and the need to develop a culture that encourages
ambitious efforts. To address these issues, we are implementing the following initiatives.

Comment from the Head Office Relocation Project Managers

Hitotsubu ClubAs of June 2023, events have been held nine times,
providing a venue for ambitious efforts aimed at cultivatinga new culture. These included “Alumni Seminars” with former employees who have started their own businesses, aswell as lectures and discussions with executives of othercompanies, enabling participants to share diverse insights
and actively explore ideas. The club’s group chat has been
similarly active, with more than 80 participants.
Multiple proposals that have sprung from this initiative are now moving forward through further study, andKensuke Tanaka

Hisashi Kajiuchi

Human Resources Planning Section,
Human Resources Department

Manager, General Affairs Section,
General Affairs Department

ABW is a work style in which employees
can choose for themselves where towork with a sense of purpose in line withthe specific work they are doing that day
and their schedule, much like a freeaddress system. We decided to include alldivisions, without exception, in ABW,
with the aim of enlivening interaction
between employees of different divisions
and ages all throughout the Company.
By providing spaces that better enable
employees to communicate and collaborate or to concentrate on their work, I
think that we have been successful inproviding value that only such an officecan so that employees will want to comeinto the office, which is all the moremeaningful today.

Kanematsu’s Foundations

In light of the engagement survey finding that there is aneed for greater encouragement for those taking on new
challenges, in July 2022, we launched the Hitotsubu (“OneSeed”) Club as a cross-divisional community.
Employees take part in the Hitotsubu Club on a
voluntary basis, regardless of division, seniority or position,
to formulate and develop ideas and proposals for new
businesses through interactive events and chat. When proposals are deemed promising, the Company provides support to bring them to fruition.

The Kanematsu Group’s Value Creation

Global
2nd survey
Japan
Global
2nd surveyJapan
1st survey
1st survey
average4(FY2022)
average3
average4(FY2022)
average3(FY2019)(FY2019)
1. Employee engagement: An indicator of employees’ commitment to the Company and motivation to proactively engage with their work
2. Effective employee utilization: An indicator of how appropriately human resources are allocated and whether work environments are employee-friendly
in a way that helps them utilize their abilities to the fullest
3. Japan average calculated across approximately 90 companies with approximately 800,000 employees
4. Global average calculated across approximately 700 companies with approximately 7,000,000 employees (average score of the top 10% of global companies by financial performance in their respective industries)

The new head office received the Minister of Economy, Trade and Industry Award in the 36th Nikkei New OfficeAwards, which recognize offices that provide outstanding comfort and functionality.
Press release

https://www.kanematsu.co.jp/en/press/20230915_003129.html

New Personnel System

Lecture event with Shigeharu Asagiri, President and CEO of Kyodoshoji Corporation, which sells COEDO Beer

56

KANEMATSU Integrated Report 2023

We are discussing revisions to the personnel system that will facilitate a climate in which each employee can set challenging
goals for themselves and thereby raise the level of the entire organization, as well as the establishment of systems that reward
such efforts and achievements.
KANEMATSU Integrated Report 2023

57

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Work Environments for Employees

Diverse Work Styles

Childcare Support Systems

Flextime System
In fiscal 2022, we implemented a full flextime system to promote flexible work styles. In principle, employees can freely
adjust the times they begin and end their work in accordance with the varying demands of their own schedules, enabling
more individually optimized and efficient work styles.

Telework System

Comment from a Male Childcare Leave User

Encouraging the Use of Paid Vacation/Leave
Kanematsu has established the Bronze Week Plus System for encouraging the planned use of annual paid vacation days.
This is intended to make it easier for employees to take off the time they are entitled to and create workplaces that are
more comfortable and rewarding. We will continue working to create even more employee-friendly workplaces and aim
to help employees maintain a healthy balance between their work and private lives.
Bronze Week Plus System Outline

(%)
80

73.7%

73.8%
70.4%

70

62.4%
60

64.8%

50

2019

2020

2021

2022

2023
(Years ended March 31)

Definition: The Bronze Week Plus system makes it easier to take off abridge day between two ordinary days off, the day before
or after a three-day weekend, or two days before or after anormal weekend, effectively extending the number ofconsecutive days off for the individual to four or more.
Purpose: This system is aimed at helping employees have special
experiences that are difficult to realize with shorter breaks
so that they will feel refreshed and have new ideas thatthey can then put to use in their work.

Hiroshi AndoManager, Finance Section, Finance Department

Kanematsu’s Foundations

I took a month of childcare leave after the births of both myfirst and second children. As a parent, I wanted to take part inchildcare and felt that I should do so more. Neither the factthat I was the father, not the mother, nor my position within
the Company changed that.

When my first child was born, no managerial employees
within the Company had ever taken childcare leave.
However, thanks to the understanding and support of thosearound me, we were able to make it work, and I got tospend invaluable time with my child during the rapid growthof infancy. Even so, part of me felt like taking just one monthwould not make much a difference at the Company, especiallycompared with other parents who took longer childcare
leave, but when I returned to work, the positive response wasgreater than I imagined. It seemed that my proactive stanceon participating in childcare as a male manager had gotten
across without my having to say anything.
I feel that Kanematsu has cultivated an atmosphere thatmakes it easy to take childcare leave and has establishedconditions that enable all employees to autonomously
engage in their work and continue to actively participate ineach of their respective life stages. Leveraging my own experience and position, I hope to further advance efforts toimprove conditions for employees worried about theircareers or work styles after returning from childcare leave,
aiming to build an organization in which employees feelthey can work for a lifetime.

The Kanematsu Group’s Value Creation

Annual Vacation Usage Rate (All Kanematsu
Corporation Employees)

in the divisions in which they worked before. These measures
are taken to create a pleasant working environment.
Furthermore, on October 1, 2022, we launched a new
childcare leave system called “Hello Baby” leave. This system
grants employees up to eight weeks of special paid leave
within the eight-week period starting the day after their childis born. The maximum legal requirement for providing paternity leave after childbirth in Japan is four weeks, unpaid. By
offering leave that is up to double that length and paid, weare promoting employees’ active involvement in childcare andfostering a culture in which employees can actively participate
professionally regardless of gender.

The Origins of Value Creation

To promote employee well-being and to enhance work efficiency by, for example, reducing time spent in transit when
visiting sites out of the office, we established a telework system encompassing working from home and from satellite
offices in April 2023. Aiming to respect employees’ autonomous work styles while improving corporate performance, we
position telework as one work style option.

In addition to maternity and childcare leave systems, we havea number of systems in place to allow parents to continue
working while pregnant or raising children. These include
reduced duties and time off for doctor’s visits during pregnancy, time off to care for sick children, a system of shortened
work hours and flextime after returning from leave, and a system of providing discounts on babysitting services. After
returning from leave, employees are eligible for reduced work
hours up to the end of the child’s third year of elementary
school and may work reduced hours with no reduction in pay
until the child’s third birthday. Many employees take childcare
leave, and when they return to work, as a rule, they are placed

Kanematsu Group Work Style Grand Prize
We held the Kanematsu Group Work Style Grand
Prize over the week of August 1–5, 2022, to sharepositive examples and model cases of flexible
work styles achieved using our internal systems
as well as the dreams and goals behind them,while also prompting employees to reexamine
their own work styles. An entry that included thetriple-threat of work, graduate school, and timewith family won the most votes from employees
and took the grand prize.
Kanematsu Group Work Style Grand Prize winner
Yuya Tani, Legal Section No. 1, Legal and ComplianceDepartment (right)
Yoshiya Miyabe, President & CEO (left)

58

KANEMATSU Integrated Report 2023

Family Care Support Systems
In addition to the conventional family care leave system,
Kanematsu provides special paid holidays for family care(“special family care holidays”).
We have also created a handbook for using support
systems for balancing work and family care as part ofefforts to provide information to employees who have concerns about family care. In addition, we have not only contracted with an external family care consultation service
that employees can use at any time, but appointed a childraising and family care consultation officer, enabling oneto-one consultation on these matters. Information about
Kanematsu’s family care-related systems
is publicly available on the Ministry of
Health, Labour and Welfare’s Ryoritsu
Shien no Hiroba website. In recognition ofsuch systems, in 2021 Kanematsu was
granted “Tomonin” certification as acompany that provides work environments that enable
employees to balance work with family care.
Years ended March 31
Users of childcare leave“Hello Baby” leave(Launched Oct. 2022)

2019

2020

2021

2022

Women

18

20

24

31

29

Men

2

0

4

6

10

Women

–

–

–

–

0

Men

–

–

–

–

6

12

14

7

10

2

26

29

26

31

36

23

20

18

21

13

1

1

0

0

0

Women

11

13

11

12

13

Men

10

10

7

8

2

Users of special childbirthleave for spouse
Users of leave to care for Women
sick children
Men
Users of family careleave
Users of special familycare holidays

2023

KANEMATSU Integrated Report 2023

59

Kanematsu’s Foundations

Sustainability

Creating an Environment That Enables Diverse Work Styles

Work Environments for Employees
New Dress Code

Anti-Harassment Measures

We have updated our office dress code to enable employees to dress more appropriately for the season and climate.
This change is aimed at combating global warming and protecting the environment while also promoting greater independence, productivity, and creativity by allowing each employee to choose attire that is easier for them to work in.

To combat harassment, we have set up an internal consultation hotline, distribute a handbook to raise awareness, andconduct harassment prevention training.

Health & Productivity Management Focused on Employee Well-Being
and Employee-Friendly Labor Practices
Kanematsu was recognized as a 2023 Certified Health & Productivity Management Outstanding
Organization in the large enterprise category of the Certified Health & Productivity Management
Organizations Recognition Program organized by the Ministry of Economy, Trade and Industry
and Nippon Kenko Kaigi. This marks our third consecutive year of recognition under the program.

Human Capital Development Policy

Kanematsu believes that maintaining and improving employee health is a crucial management issue for achieving sustainable growth.
Accordingly, to advance health & productivity management, we strive to do the following.

Establishment of the Health & Productivity Promotion System

Key theme

Acquisition of Added Value andExpansion of Scale

Executive management training participation rate

Sowing Seeds to Create a New
Portfolio

Diverse human resource hiring rate(women and non-Japanese nationals)

Promote Groupwide DX• IT Passport test pass rate
• DX-related training participation rate2• Personnel exchange with Group ICT/data businesscompanies

Health & Productivity Promotion System
Board of Directors
Management Committee

KPI

FY2023 Result

FY2027 target

72.2% of career-track employees 100% of career-track employeeswith Kanematsu for 11 years
with Kanematsu for 11 years
or moreor more35%(Four-year average)

27.1%1

100%
70%
60 employees(Four-year total)———

1. Average for the five years following the future 135 medium-term vision
2. The rate of employees who take part in either business process management training or DX project promotion training

Kanematsu Health
Insurance Society

Medical Center

Human Resources Department(Health Promotion Section)

Occupational HealthCommittee

Work Environment Policy
Key theme

KPI

FY2023 Result

FY2027 target

Leveraging Diverse Individuality
through DE&I

• Percent of management positions held by women• Childcare leave usage rate among eligible men

4.9%
88%

7%
100%

In fiscal 2024, Kanematsu plans to implement initiatives to improve the visibility of data on employee health using ahealth management system. Working with the Kanematsu Health Insurance Society, we will efficiently analyze data to
implement effective measures tailored to employee health status.

Enhancing Engagement to Maximize
Performance

Engagement score

61%1

The global average ofcompanies in the top 10%2

Lifestyle-Related Illness Prevention

Diverse Work Styles• Annual vacation usage rate
• Full flex system usage rate

70.4%
81.8%

75%
95%

Health & Productivity Management
Focused on Employee Well-Being and
Employee-Friendly Labor Practices• Rate of employees undergoing regular medical checkups• Rate of employees undergoing stress checks• Harassment prevention training participation rate

97.2%
98.1%
100%

100%
100%
Keep at 100%

We are working toward the prevention and early detection of lifestyle-related illnesses through such measures asincreasing the proportion of employees who undergo regular medical checkups and receive specific health guidance.

Mental Health Measures
To promote the early detection and prevention of mental health problems, we implement annual stress checks for all
employees. For employees with high levels of stress, we provide counseling with industrial physicians and conduct group
analyses at the organizational level. We also provide training for managerial employees on supporting the mental healthof their subordinates as part of efforts to raise awareness of the importance of mental health.

Kanematsu’s Foundations

Industrial Physician

Health & Productivity
Management Promotion Officer(Chief Officer of Human Resources)

Monitoring Employee Health

KANEMATSU Integrated Report 2023

The Kanematsu Group’s Value Creation

1. Health management:
We support employees’ individual efforts to proactively maintain and improve their health.
2. Environment improvement: We create workplaces that ensure employees can work without endangering their health and participate fully.
3. Ongoing improvement:
We study, implement, confirm effectiveness, and take steps to improve measures related to health management andenvironmental improvement on an ongoing basis.

60

health managers, employees recommended by theCompany, and employees recommended by the labor
union. The committee meets once a month, with laborand management jointly discussing and promoting related measures while receiving advice from industrial
physicians.

Human Capital Targets and Results

Kanematsu Health & Productivity Management Declaration

Kanematsu is promoting health & productivity management based on a system comprising the Human
Resources Department, industrial physicians, the Medical
Center, the Occupational Health Committee, and thehealth insurance society, with the Chief Officer of Human
Resources designated as the Health & Productivity
Management Promotion Officer.
Furthermore, we have established a framework forreporting on health & productivity management initiatives to the Management Committee.

We have established the Occupational Health Committee
to protect employee health and foster a cheerful work
environment. Operating under the supervision of theGeneral Manager of Health and Safety (the General
Manager of the Human Resources Department), the committee comprises industrial physicians, occupational

The Origins of Value Creation

Initiatives for Health & Productivity Management

Occupational Health Committee

1. Result for the year ended March 31, 2022
2. Global average calculated across approximately 700 companies with approximately 7,000,000 employees (average score of global companies in the top
10% based on financial performance in their respective industries); this score was 66% in 2021

KANEMATSU Integrated Report 2023

61