November 30, 2022
For immediate release
Kyudenko Corporation

Establishment of Basic Sustainability Policy and Important Issues (Materialities)
Based on its corporate philosophy and long-term vision, the Kyudenko Group has established a Basic
Sustainability Policy and important issues (materialities) in order to focus more on improving corporate
value from a long-term perspective while taking into consideration factors such as the global environment,society, and the economy.
In the future, the Group will contribute to the creation of a sustainable society by promoting a planned andproactive approach to important issues (materialities) under the Basic Sustainability Policy.
□ Basic Sustainability Policy
Based on the corporate philosophy, the Kyudenko Group will create a sustainable society and improvethe corporate value of the Group by solving social issues through its business activities.
□ Important issues (11 items)
Contribute to the spread and expansion of clean energy
Contribute to energy conservation
Kyudenko to achieve carbon neutrality by 2050
Create an environment that embraces diverse values and maximizes individualcapabilities
Create rewarding workplaces with safety as the highest priority
Strengthen the overall human capacity (business performance, human capacity,creativity (thinking skills))
Society (S)Maintain and develop regional infrastructure through stable power supplies andequipment construction, etc.
Use our technical capabilities to contribute to infrastructure development that isresistant to natural disasters
Create new value through technical development and active collaboration
Contribute to the formation of a circular society
Governance (G) Implement fair and transparent business practices* The Basic Sustainability Policy and important issues mentioned above (including information disclosure
based on the TCFD recommendations) will be described in more detail in the Integrated Report“KYUDENKO REPORT 2022” scheduled for publication in December.
Environment (E)[Inquiries]
Kadowaki, Numaguchi
Environmental Management Promotion Unit
Kyudenko Corporation
Tel.: +81(0)-92-523-0312
Note: This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

 Basic Sustainability Policy

We operate our business under the Corporate Philosophy: 1. We contribute to society through providing agreeable environmental solution.
2. We keep challenging for sustainable development through our engineering strength and create a new value. 3. We aim to create mutual
respecting environment in Kyudenko which utilize and develop employees’ personality. In addition, we have formulated a long-term vision
for our 100th anniversary (2044), under which we aim to deliver both social and economic value by working to solve social problems,
realize a carbon-free society, and maintain and develop local public infrastructure.
Based on this corporate philosophy and long-term vision, we have established a Basic Sustainability Policy and important issues(materialities) in order to focus more on improving corporate value from a long-term perspective while taking into consideration factors
such as the global environment, society, and the economy.
In the future, the Group will contribute to the creation of a sustainable society by promoting a planned and proactive approach to important
issues (materialities) under the Basic Sustainability Policy.

[Basic Policy]
Based on the corporate philosophy, the Kyudenko Group will create a sustainable society and improve thecorporate value of the Group by solving social issues through its business activities.

1 Important issues (materialities)

Governance (G)Society (S)Environment (E)Social issues

Important issues (materialities)

Systemdiagram

SDGs

Orientation of measures

Contribute to the spread and expansion of clean
energy (*)

B

Contribute to energy conservation (*)

B

Kyudenko to achieve carbon neutrality by 2050 (*)

B

Respond to TCFD and reduce our own CO2 emissions

Diversity
Labor practices
Employment
Human rights

Create an environment that embraces diverse values
and maximizes individual capabilities

D

Promote diversity and inclusion, build diverse and flexible ways
of working, and respect human rights

Occupational safety andhealthCreate rewarding workplaces with safety as thehighest priority

E

Eliminate critical disasters, promote health and productivity
management, improve employee engagement

Education and training

Strengthen the overall human capacity (businessperformance, human capacity, creativity (thinkingskills))

D

Strengthen human resource development and build diverse
career maps

Communities

Maintain and develop local infrastructure throughstable supply of electricity and facility work, etc.

C

Maintain and develop social infrastructure through existing
businesses

Disaster prevention

Use our technical capabilities to contribute to
infrastructure development that is resistant tonatural disasters

C

Disaster-resistant urban development, disaster recovery, support
for areas affected by disasters, community contribution activities

Innovation

Create new value through technical development andactive collaborationA

Create new business areas, improve productivity, promoteinvestment in DX and technology development, promote open
innovation, promote M&A

Waste

Contribute to the formation of a circular society

A

Promote 3R (reduce, reuse, recycle),promote green purchasingE

Enhance corporate governance, ensure compliance, implement
information security management, strengthen risk management,
ensure fair transactions in the supply chain

Climate change
Decarbonized society
EnergyOrganizational
governance
Implement fair and transparent business practices
Anti-corruption
ComplianceFair business practices
Anti-competitive behavior(Note)

Promote energy creation related construction and projects (solar,wind, biomass, PPA, EMS, etc.)
Promote energy saving related construction (proposals forenergy efficiency improvement (ES) construction, EV charging
equipment, ZEB, energy saving equipment, etc.)

1. (*) Items related to the environment: Disclose information based on the recommendations of the TCFD (Task Force on Climate-Related Financial Disclosures).
2. System diagram ... A: Solve social problems B: Realize a carbon-free society C: Maintain and develop local public infrastructure D: Strengthening human capital
E: Strengthening a sound management base
3. Important issues (materialities) will be reviewed as necessary depending on future changes in the social situation.

2

D: Strengthening human capital• Create an environment that embraces diverse values and maximizes
individual capabilities• Strengthen the overall human capacity (business performance, humancapacity, creativity (thinking skills))
E: Strengthening a sound management base
• Create rewarding workplaces with safety as the highest priority• Implement fair and transparent business practices(Corresponds to Corporate
Philosophy 1 and 2)(Corresponds to Corporate
Philosophy 3)

B: Realize a carbon-free society• Contribute to the spread and expansionof clean energy• Contribute to energy conservation• Kyudenko to achieve carbon neutrality by2050

C: Maintain and develop local
public infrastructure• Maintain and develop local infrastructure
through stable supply of electricity andfacility work, etc.
• Use our technical capabilities tocontribute to infrastructure developmentthat is resistant to natural disasters

Foundation to Support
Value Creation

A: Solve social problems• Create new value through technicaldevelopment and active collaboration• Contribute to the formation of a circularsociety

Value Creation by Business

Important Issues (Materialities) System Diagram
Corporate Philosophy andCorporate Colors

1. We contribute to society
through providing agreeable
environmental solution.

Social/Green

2. We keep challenging forsustainable development
through our engineeringstrength and create a new value.
Technical/Blue

3. We aim to create mutual
respecting environment in
Kyudenko which utilize anddevelop employees’ personality.
Human/Red

3