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Value Creation of NITORI Group

Sustainability

Data Center

Sustainability

Materiality Issues and Sustainability Management Promotion Strategy
Materiality Issues

ESG

Shared ValueContributing to prosperous
home living by providing
products and services thatoffers the unexpected

Product safety and security
through comprehensive quality
control

Value creation forproviding enriched
lifestyles to customers

Simultaneous expansionof economic value andenvironmental and social
value

Fair and honest trade andrespect for human rights in thesupply chain

Creation of a rewarding work
environment and promotion ofdiversityEffective corporate governance

Sustainability Management Issues(1) Pursue affordability, appropriate quality (functionality),and coordination(2) Resolve customers’ frustrations and inconveniences(3) Offer new value that further enriche lifestyles (productsand services that can lead to solutions toenvironmental and social issues)

Promoting environmentally friendly
manufacturing/initiatives
P45 - 46(1) Quality control and product safety measures as amanufacturer(2) Share with suppliers ideas and initiatives to build aculture of product safety

Promotion of environmentallyfriendly businessContribution to local communities

NITORI Group’s Approach(1) Carry out all tasks more efficiently throughout theentire supply chain(2) Make effective use of all raw materials(3) Make effective use of recycled materials throughinnovation(4) Disclose and reduce greenhouse gas emissions frombusiness activities(1) Supplier contracts based on strict standards andon-site investigations(2) Establish true partnerships with suppliers
Fair and honest trade, respect for human rights, work
environment creation, etc.

Creation of social value
through store openings
and support in terms ofhuman resources, theenvironment, and culture s a company that offers lifestyle infrastructure, expand the(1) Astore network and create stores supported by customers(2) Expand into global business (open stores and create
employment)(3) Disaster assistance and social action programs infields other than the main lines of business

Simultaneously achieve
employees’ jobsatisfaction andenhancement ofcorporate value(1) Education system that allows employees to realize
self-growth(2) Transfer to a variety of job category in a wide range ofbusiness fields(3) Create a comfortable environment where everyone
can work in good health with peace of mind

Ensuring transparency andsoundness ofmanagement
Speedy decision-making
and business execution(1) Build a foundation that supports medium- to long-term
corporate growth
Create decision-making systems and a basis for active
discussions(2) Ensure compliance(3) Build a robust risk management system

Expand waste reduction
and recycling
P47 - 48

Objective

By 2030,(1) Reduce waste emissions (general and industrial waste) by 30% (Per 100 million yen ofdomestic sales, compared to FY2018) *(2) Achieve at least 95% recycling rate of industrial waste *(3) Promote “resource recycling” as an initiative to eliminate waste in the first place
Expand product development with an eye toward recycling at the planning and designingstages (circular economy)
Promote recycling (collection and recycling) of products and packaging materials*(1) and (2) are for domestic operations.

Response Climate Change Issues
P49 - 50

Greenhouse Gas Emissions Reduction Targets (Global, Scope 1.2)
FY2030: 50% reduction compared with FY2013 (emissions per 100 million yen of net sales)
FY2050: Become carbon neutral. (net zero emissions)Sustainable Procurement
P48

First, establish a traceability system together with suppliers to achieve “sustainable timberprocurement.”

Promoting Diversity
P53

Increase the percentage of women in management positions to around 40% in the 2030s.
Increase the percentage of non-Japanese employees in management positions by promoting
assignment of non-Japanese employees to management positions
Increase the percentage of mid-career hires in management positions by continuing
recruitment of specialists

Promote human resource development and organizationaldevelopment

P51 - 52

Creating a healthy and safe work environment

P54 - 55

Promotion of initiatives to address environmental andsocial issues at overseas sites and own factories

P56

Build true partnerships with suppliers

P57 - 58

Promotion of CSR activities

P59 - 60

Strengthen corporate governance structure

P61 - 66

Ensuring the Effectiveness of the Board of Directors

P67 - 68

NITORI Group’s Sustainability | Sustainability | NITORI Holdings Co., Ltd. (nitorihd.co.jp)4344