Hankyu Hanshin Holdings
Sustainability Databook 2022

Table of Contents
SUSTAINABILITY IN GENERALENVIRONMENT

General Principles and Priority Issues in the
Sustainability Declaration ……………………………………………………………… 3

1. Environmental Management …………………………………………………… 28

Sustainable Management Promotion Framework

3. Pollution and Resources …………………………………………………………… 37

2. Climate Change …………………………………………………………………………… 31………………… 4

4. Biodiversity …………………………………………………………………………………… 41

SOCIAL5. Water Resources ………………………………………………………………………… 43

1. Respect for Human Rights………………………………………………………

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

5

GOVERNANCE

9

3. Contribute to Local Communities and Society ………………… 12

1. Corporate Governance ……………………………………………………………… 45

4. Employment and Labor Initiatives ………………………………………… 17

2. Ensure Compliance and Prevent Corruption …………………… 51

5. Occupational Safety & Health

3. Risk Management ……………………………………………………………………… 54………………………………………………… 24

4. Taxation Transparency ……………………………………………………………… 55

Editorial Policy
This report outlines the approach, initiatives, major performance results in FY2022, future policies and plans of the Hankyu
Hanshin Holdings Group for the realization of a sustainable society.

Guidelines for Reference:GRI Sustainability Reporting Standards

GRI Standards Content Index WEB

Report Scope:
Hankyu Hanshin Holdings, Inc., its major companies the companies that belong to the Group’s respective core businesses (Urban
Transportation, Real Estate, Entertainment, Information and Communication Technology, Travel, and International Transportation), and otheroperating companies (The following different report scopes apply to some parts of this databook.)• Hankyu Hanshin Holdings, Inc.
• Hankyu Hanshin Holdings, Inc. and its six major companies: a total of seven companies (Hankyu Hanshin Holdings, Inc., Hankyu Corporation, Hanshin Electric Railway, Hankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express, and Hankyu Hanshin
Hotels)• Hankyu Hanshin Holdings, Inc. and its consolidated subsidiaries in Japan: a total of 78 companies• Hankyu Hanshin Holdings, Inc. and all its consolidated subsidiaries: a total of 99 companies* Hankyu Hanshin Holdings, Inc. and its six major companies account for about 70% of the Group’s consolidated operating income.

Period Covered:
FY2022 (April 1, 2021–March 31, 2022) This databook also covers some initiatives implemented around FY2022.
Major Updates (since November 2022):• Updated in April 2023 p. 5 Hankyu Hanshin Holdings Group Basic Philosophy and Policy on Respect for Human Rights (revised)
p. 40 Results for other emissions: Sulphur Oxides (SOx) (new)p. 44 The Group’s results concerning water usage in the property portfolio (new)Reporting System:
Information on sustainability is provided in the Sustainability Databook, the corporate website, and other media listed below.
• Sustainability Databook: Provides detailed non-financial ESG (environmental, social, and governance) information• Corporate website WEB : E xamples of the Group’s initiatives in line with the priority issues, the GRI Standards Content Index, etc. posted on
the Group’s sustainability website• Integrated Report WEB : P rovides information about the review of FY2022 and the Group’s management policies and ESG initiatives•S ecurities Report WEB : P rovides more detailed financial information•C orporate Governance Report WEB : P rovides information mainly on the Group’s corporate governance approach and systems in compliance with Japan’s Corporate Governance Code• Safety Reports: Provide information mainly on the railway operators’ safety initiatives(issued by Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway, and Nose Electric Railway WEB )2

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Hankyu Hanshin Holdings Group

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

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

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

Project themes
 liminate accidents and improve safety at railways and commercial facilities❶E romote actions to prevent/reduce accidents and respond promptly and properly❷P

to accidents if they occur

 stablish safe and comfortable facilities and services that satisfy the needs of a❸Ediversity of people

 evelop a good living environment (providing good residences, creating green❶Dspaces and public spaces, establishing cultural and educational facilities, etc.)

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

 evelop and expand commercial/business areas where people communicate with❷Deach other reate a line-side environment that makes it easier for women to work and raise❸Cchildren romote measures to extend the healthy lifespan of the elderly❹P ffer services that satisfy the needs of foreign visitors/residents❺O nhance collaboration and partnerships with universities, research institutions,❻E

ventures, local communities, etc.

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

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

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

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

 ropose products/services that help realize a lifestyle in harmony with nature❶P ropose products/services that lead to revitalization and promotion of local com❷P

munities and cultures

 ropose products/services that respond to diverse values and create comfort and❸P

excitement

 ropose products/services for young people who will lead the next generation❹P reate and disseminate cultures through sports and entertainments❺C❻ Improve existing services and create new businesses by utilizing ICT innovation❶ Improve employee satisfaction and create a more positive workplace romote health and productivity management❷P romote diversity❸P espect human rights and prevent harassment❹R ultivate tomorrow’s leaders❺C ut greenhouse gas (CO2) emissions❶C❷ Improve energy efficiency (promote energy saving) se more renewable energy (e.g. solar)❸U im for more eco-friendly buildings (green buildings)❹A roduce less waste and recycle more❺P
 romote effective and transparent corporate governance❶P nsure compliance and prevent corruption❷E nhance risk management, including climate change❸E ay attention to opinions of stakeholders in doing business❹P* The SDG icon that is placed first is the most relevant to each priority issue.
* In the process for identifying priority issues WEB , we referred to guidelines such as SDGs, GRI Standard, SASB Standard, ISO 26000, etc.

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Relevant SDGs

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Audit

Refer/Report (important issues)

Refer/Report (important issues)

Corporate Sustainability Committee
Topics factored
into Medium-Term
Management Plan

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

Implement/Report

Group Companies

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

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

“Basic Policy on Respect for Human Rights”
1. Compliance with laws and regulations related to respect for human rights
We will endeavor to comply with human rights laws and regulations applicable in the countries and regions in which we
operate and will support and respect international human rights norms such as the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights) and the ILO Declaration on Fundamental
Principles and Rights at Work* issued by the International Labour Organization (ILO).
*T he core labour standards include freedom of association and recognition of the right to collective bargaining, prohibition of forced labour,prohibition of child labour, prohibition of discrimination in respect of employment and occupation, and a safe and healthy working environment.

2. Scope of application
This philosophy and policy apply to all officers and employees of the Hankyu Hanshin Holdings Group. We also will try to gain
the understanding and support of stakeholders in this philosophy and policy, and we hope to work together to proceed withrespect for human rights.
3. Human rights due diligence
In order to fulfill our responsibility to respect human rights, we will continue to implement human rights due diligence and workto avoid and reduce negative impacts on human rights.
4. Remedy and correction
Upon our knowledge of any directly caused, and/or the contributing of, adverse impacts on human rights through our business activities, we will implement or cooperate in remedies and corrections through appropriate means.
5. Dialogues with stakeholders
We seek to gain insights through dialogue with outside experts, listen to the opinions of our stakeholders, and strive to
respond responsibly.
6. Education and AwarenessWe will continue to provide the necessary education and awareness to ensure that this philosophy and policy are carried out
in our business activities.
7. Creating a safe and satisfying work environment
In order to respect the human rights of each employee, we will endeavor to maintain fairness and equality in all treatment,
starting with the hiring process. We will also promote the creation of a work environment where officers and employees canrecognize each other's differences and make full use of their individuality and talent.
8. Information disclosure
We will disclose information on our efforts to respect human rights in a timely and appropriate manner.

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

SOCIALENVIRONMENTGOVERNANCE

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

ally proclaimed human rights andPrinciple 2:	make sure that they are not complicit in human rights abuses.
Principle 3:	Businesses should uphold the freedom of association and the• Laboureffective recognition of the right to collective bargaining,
Principle 4:	the elimination of all forms of forced and compulsory labour,
Principle 5:	the effective abolition of child labour, andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
• Environment Principle 7:	Businesses should support a precautionary approach to environmental challenges,
Principle 8:	undertake initiatives to promote greater environmental responsibility, andPrinciple 9:	encourage the development and diffusion of environmentally friendly
technologies.
• Anti-Corruption Principle 10:	Businesses should work against corruption in all its forms, including
extortion and bribery.

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

TargetIndicator

Range

TargetFY2022 Results

Attendance rate at human rights training organized by the Company at thetime of promotion of employees

Hankyu Hanshin
Holdings, Inc. and its
6 major companies

Always 100%

100%

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

Holding internship programs
The Company holds multiple internship programs to offer students with a wide range of work experience opportunities. In
FY2022, a total of 498 students participated in the internship programs.

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Human rights education
Spreading the Basic Philosophy and Basic Policy on Respect for Human Rights

16

The Group publishes the Compliance Handbook, to be distributed to all officers andemployees of the Group, in which the Basic Philosophy and Basic Policy on Respect forCompliance as a Member of Society

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

Respect for
Human Rights

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

Hankyu Hanshin Holdings Group

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

Who do you respect?

Human Rights are introduced in an easy-to-understand manner with examples of behaviors
that go against respect for human rights to raise employee awareness of human rights. In
the Handbook, information of the Harassment Consulting Office is provided to accept awide range of consultation on harassment. Thus, we work to protect our employees.

It is important for us to respect the human rights of customers, employees of business
partners, shareholders, our colleagues, people in the community, and all other people
with whom we interact, as a social responsibility of the company.
To achieve this, all of us must learn and deepen our understanding about human rights toenhance our sensitivity to human rights.
Human rights are closely related to your life. Be conscious of and alert to human rights inyour daily activities, and act thoughtfully.

What kind of books
do you read?

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

Basic Philosophy on Respect for Human Rights
We will contribute to the realization of an affluent society free of humanrights abuse or discrimination based on birthplace, nationality, creed,gender, race, age, disability or any other characteristic.

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

Hankyu Hanshin Holdings Group

Basic Policy on Respect for Human Rights
Recruitment

We do not engage in discrimination of any kind. We recruit people on a fair andimpartial basis.

Human rights
education

To eliminate all kinds of discrimination, we educate our people to develop their
sensitivity to human rights and avoid abuse of human rights in their daily activities.

Workplaceenvironment

We will strive to create workplace environments where employees respect thedifferences of each other and all employees can demonstrate their fullest abilities.

Harmonious
coexistencewith society

As a corporate member of society, we will conduct our business activities while
paying attention to harmonious coexistence with all members of society.

Relationships
with business
partners

We also ask our business partners to respect people’s human rights. We
resolutely take actions against a business partner that is involved in humanrights abuse or transactions that induce human rights abuse.

Prevention

We respect the human rights of customers and all other people with whom weinteract, and exert group-wide efforts to prevent human rights abuse.

44

45

Compliance Handbook (English edition)

Human rights enlightenment training

The Group annually conducts human rights enlightenment training for the top management of each Group company and all employees in management positions in the Company, who total up to about 800, to regularly raise their awareness of various human rights
issues that those responsible for management should know. Human right enlightenment training is also conducted for employees at
each level, including new directors, new managers, and new employees of each Group company, to promote the spread of the
Basic Philosophy and Basic Policy on Respect for Human Rights and continuously educate them about the prevention of harassment. Through the training, we aim to develop a better instinct for human rights in individual employees by providing the opportunity
to learn about the Basic Philosophy and Basic Policy on Respect for Human Rights and to understand correctly and think deeply
about discrimination and human rights violations due to birth, race, disability, sexual orientation, gender identity, and other factors.

• Examples of training topics• Race: Examine our own way of thinking about race with the issue of colored pencil called “hadairo” (skin color) as a start• Sexual orientation / Gender identity: Understand sexual minorities (LGBT / SOGI, etc.)•F oreign residents in Japan: Understand the historical background of the residence of foreigners in Japan and multicultural
coexistence through activities such as fieldwork in a Korean Town in Osaka Prefecture•P ersons with disabilities: Consider reasonable consideration for people with disabilities using a specific case where a customer
on a wheelchair visits a store

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

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

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

• Conducting harassment prevention measure training
We have conducted training on the theme of “Creating a harassment-free workplace” for the top management of each Group
company and all managers of the Company. The training provides the opportunity for them to learn about behavior that may
correspond to harassment and key points for providing guidance to subordinates. They also learn the proper attitude and points
to note when consulted by subordinates as a primary contact point for consultations on harassment, the observance of confidentiality, and non-disadvantageous treatment of employees who report harassment.

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

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Harmonious coexistence with society
The Group is engaged in business activities, always bearing it in mind that our services are used by a diverse range of customers. Not only in the urban transportation business, including train and bus services, but also in the entertainment business andthe hotel business, we work to make our services more comfortable for customers, regardless of the presence or absence ofdisabilities and the language used.

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

Relationships with business partners
We not only respect human rights ourselves but also expect our business partners to do so. In cases where it is obvious that abusiness partner is complicit in or encouraging human rights violations, for example, when our employees are harassed bybusiness partner’s employees, we take appropriate actions to help our employees promptly. If we become aware of a humanrights violation in our business activities, we properly address it without neglecting it.

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

Establishing a consultation system for harassment and human rights violations
The Group has established the Harassment Consulting Office for Group employees within the Personnel Department of theCompany to accept consultation on harassment in the workplace. (Anonymous consultation is also available.) For the use of
consultation services, it is clearly stated that the privacy of an employee who seeks consultation is protected and that there is no
disadvantageous treatment of the relevant employee due to seeking consultation. If an employee subject to harassment, including an employee who seeks consultation, is in a troubled situation, we will work to improve the situation.
The Group also conducts training that incorporates role-playing (including training on the Basic Philosophy and Policy on
Respect for Human Rights) for the staff in charge of harassment consulting office in each Group company to help them acquire
knowledge and skills that can respond appropriately to consultation. We are thus striving to create a consultation system inwhich employees can seek consultation without worry. Since FY2017, 356 employees have participated in the training for thestaff in charge of harassment consulting office that is organized by the Company (cumulative total up to the end of March 2022).
In addition to the Harassment Consulting Office, we also accept cases of human rights violations at the Corporate Ethics
Consultation Desk*, which is a whistleblowing system that can be used by the Group’s officers and employees as well as thebusiness partners of the Group. (Anonymous consultation is also available.)* Please refer to “Operation of Corporate Ethics Consultation Desk (Internal Whistle-Blower Procedures)” of “2. Ensure compliance and prevent corruption”
in the “GOVERNANCE” part (page 51).

Conducting a questionnaire survey on the workplace environment
Each Group company conducts a questionnaire survey of employees on the workplace environment every other year. The questionnaire contains a wide range of questions related to harassment, including whether the respondent is subject to harassment,
whether there are harassment cases around the respondent, and whether harassment prevention measures taken by the company work effectively for employees. The questionnaire results are used as important materials for each company to formulate
harassment prevention measures. When conducting a questionnaire survey, we inform Group employees of the Harassment
Consulting Office, where they can seek consultation, and encourage them to use the consultation services.
• Number of respondents to the questionnaire on the workplace environment: 24,121 persons (FY2023)

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

TargetIndicator

Range

TargetFY2022 Results

Zero culpable incidents in
our railway business

Hankyu Corporation,
Hanshin Electric Railway,
Kita-Osaka Kyuko Railway,
Nose Electric Railway

Always zero

Zero

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

Platform

Infrastructure

Train carGradecrossing

Personnel

PurposeExamples of specific initiatives / equipment

Fall prevention• Platform screen door • Platform gap filler rubber• Braille block with an inward line • CP (Color Psychology) line

Emergency alarm• Emergency train stop button

Overspeed prevention• ATS: Automatic train stop system

Fall prevention• Large partition board • Vertical handrail

Abnormality detection• Obstacle detector • Detector for unclosed grade crossing bars

Emergency alarm• Grade crossing emergency alarm system• Level crossing obstacle alarm system

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

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

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(2) Promote actions to prevent/reduce accidents and respond promptly and properly to accidents if they occur
PurposeExamples of specific initiatives / equipment

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

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

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

The following four companies engaged in railway operations have announced their safety policies and initiatives to ensure thesafety of transportation in their safety reports. Please refer to the safety reports for details of each company’s initiatives.
Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway, Nose Electric Railway WEB
Capital investment in railway operation business(Hankyu Corporation and Hanshin Electric Railway)
FY2020Hankyu Corporation(¥ billion)

FY2021

FY2022

19.1

19.0

19.1

Safety related

14.4

12.6

12.2

Others

4.7

6.4

6.9

Hanshin Electric Railway

5.5

4.1

6.5

Safety related

4.8

3.5

4.8

Others

0.7

0.6

1.7

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

As a railway operator, the Group provides a formof public infrastructure. We therefore make giving
priority to the safety of our customers a fundamental policy of management, and conduct ongoingsafety-related capital investments in our railway
operation business accordingly. Safety-related
capital investments in FY2022 totaled 12.2 billion
yen at Hankyu Corporation and 4.8 billion yen at
Hanshin Electric Railway. These investments wereprimarily used for the construction of new trains
and renovation of existing ones, as well as for
installing platform screen doors, further improving
stations, and seismically reinforcing elevatedtracks.

Real Estate
Hankyu Hanshin Properties sequentially offers an emergency and rescue course to employees engaged in the real estate leasing
business so that customers and workers can use its commercial facilities and office buildings with peace of mind. In addition, inorder for all building users, including people with disabilities and non-Japanese speakers, to evacuate safely in the event of adisaster, it has installed multilingual broadcasting equipment for use in emergencies and has deployed communication tools thatcomplement the equipment. It also works to enhance evacuation guidance education and training for the building management
staff and tenant employees, and it has secured a certain amount of disaster relief supplies for building management personnel
involved in disaster recovery activities.

Entertainment
At the Hanshin Koshien Stadium, which is the venue for professional baseball games and large-scale events, we have increased
the number of air conditioners and have reviewed the holding guidelines through discussions with organizers to prevent customers from having a heat stroke. We have also carried out drainage improvement work on the ground to improve the safety of theground in the event of heavy rain.
At the Takarazuka Grand Theater, the Tokyo Takarazuka Theater, and the Umeda Arts Theater, we have carried out seismic
reinforcement work for the necessary locations so that customers can enjoy the performances with peace of mind. We have also
regularly offered employee education programs in preparation for disaster response and have secured a certain amount ofdisaster relief supplies.

Information and Communication Technology
Bay Communications and Hanshin Cable Engineering contribute to disaster prevention and mitigation in local communities bysigning a disaster prevention agreement with local governments to create an environment where they can use disaster prevention
terminal devices.

10

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

TravelTo realize safe and comfortable travel for customers, Hankyu Travel International works to strengthen safe travel management byregularly evaluating the suitability of safety measures and quality control, reviewing the serious accident response manual andother rules, and taking precautionary measures, including conducting accident response training.
Additionally, the company has concluded the Agreement on Travel Arrangements and Volunteer Cooperation in Times ofDisaster with local governments, and will contribute to disaster prevention measures and economic revitalization in local communities. This will be done by making arrangements for lodging, transportation, and more for employees of related organizations
who support the local government in the event of a disaster, making arrangements for dispersed evacuation to inns and hotels,
for which the need is increasing due to COVID-19, and supporting other volunteer activities by its employees.

International Transportation
Aiming to build a supply chain that guarantees advanced transportation quality and safety in pharmaceutical logistics, Hankyu
Hanshin Express has obtained CEIV Pharma* certification under the quality certification program for the international transportation of pharmaceuticals, promoted by IATA (International Air Transport Association), at Kansai International Airport and Narita
International Airport in June 2019 and March 2021, respectively. In June 2022, three years after obtaining the certification at
Kansai International Airport, the company reacquired this certification including for its cold storage facilities at the Hankyu Hanshin Osaka Cargo Terminal (Suminoe-ku, Osaka city).
* CEIV Pharma: Abbreviation for “The Center of Excellence for Independent Validation in Pharmaceutical Logistics.” A globally unified standard established by
the IATA as a transportation quality certification that conforms to GDP (Good Distribution Practice, a distribution standard that guarantees the quality ofpharmaceutical distribution processes).

11

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

3. Contribute to Local Communities and Society
ApproachSince its foundation, the Hankyu Hanshin Holdings Group has promoted high-quality community development based on its
railway business. The Group has also contributed to local communities, including in areas along the Hankyu and Hanshin lines,
through its social contribution initiatives, Hankyu Hanshin Dreams and Communities of the Future Project. The focus has been on
the priority fields of “Sustainable Community Development” and “Tomorrow’s Leader Development,” which are highly compatible
with its management strategy. Moreover, the Group is working to solve social issues for local communities not only with it, butalso in cooperation with our business partners (including tenants), civic groups, government authorities, and residents.
Through our business and social contribution activities, the group will continue to contribute to local communities andsociety and work toward a sustainable future, one that offers a fulfilling, joyful life to all and inspires the next generation to dreamwith hope. We believe that promoting high-quality community development through our local community initiatives will lead tohigher customer satisfaction, and eventually to the sustainable improvement of the Group’s corporate value and brand value.

Initiatives
Community Development Initiatives
In our Real Estate Business, we contribute to the creation of thriving communities by promoting initiatives to increase the value of
cities, create safe and comfortable facilities, and solve social issues.

Enhancing the value of the Umeda area of Osaka
The Group has been working to enhance the value of the Umeda area of Osaka, the Group’s most important site, by systematically rebuilding (upgrading) and developing new buildings according to long-term plans. In March 2022, the Osaka Umeda Twin
Towers South opened its office zones and introduced facilities that support diverse work styles, such as WELLCO, a dedicatedfloor for office workers featuring café, lounge, fitness center, and so on.

Urban regeneration project
The Group believes that it can contribute to the sustainable development of local communities through urban regeneration
projects. Based on the idea of community building, which has been cultivated through the development of our line-side areas, weare involved in urban regeneration development, making the most of the potential of the relevant area, while listening to thevoices of local residents and helping resolve various issues, including building communities focusing on disaster and crime
prevention.

ExampleIn front of Nishinomiya-kitaguchi Station on the Hankyu Line

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

in the area.
ExampleOsaka Station North Area (Umekita)

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

12

SUSTAINABILITY IN GENERAL

ExampleSOCIALENVIRONMENTGOVERNANCE

Kobe Sannomiya Hankyu Building

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

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

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

Engagement with the social issues for local communities through collaboration with them
In cooperation with our customers, companies, tenants, and local communities, the Group is working to address social issues(needs) such as “disaster prevention,” “creation of good urban environments,” and “creation of community liveliness,” which arecommon challenges in the region.

• Disaster Prevention
Hankyu Corporation and Hanshin Electric Railway, together with West Japan Railway
Company, GRAND FRONT OSAKA TMO, and Osaka Metro Co., Ltd., have launched
the Umeda Bo-sai (disaster prevention) Scrum, a disaster prevention campaign targeting visitors to the Umeda area and tenant employees, to increase emergency response
capability* in the area.
* Dissemination of information using digital services, disaster prevention seminars, and distribution ofdisaster prevention awareness tools in cooperation with tenants.

13

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE• Creation of Good Urban Environments
Since April 2022, the Group has been participating in area management activities aimed at enhancing the value of the Umeda
area as part of a public-private partnership initiative. This initiative aims to create a space where people feel comfortable andwant to walk, thus enhancing the value of the area. Using the proceeds of revenue-generating activities that effectively utilize
above- and below-ground road space in the area, we are working to maintain and manage roads and planting strips to make theroad space better, and to create a safe and secure urban environment.

• Creation of Community LivelinessWe are cooperating with companies, tenants, local organizations, schools, andgovernments in the Nishi-Umeda and Chayamachi areas to create a lively atmosphere and make visitors move around and enjoy more in the area. As part ofthese efforts, we have held candle art events to invite people to reflect on therealization of a sustainable society. At these events, we turn off the lights in thewhole area and light candles with people gathering in the city. We have also held
Yukata-themed events and other events to provide an opportunity for people tothink about Japanese culture, SDGs, and urban development.
• Community development with safety and security-consciousness and more
As a corporate group engaged in the public transportation business, we are working in partnership and cooperation with local
governments to create safe, secure, and attractive communities and realize the sustainable society that the SDGs aim to achieve.
In 2022, we signed comprehensive partnership agreements with several municipalities.

Social Contribution Initiatives “Hankyu Hanshin Dreams and Communities of the Future Project”
As part of the Group’s commitment to creating communities that people will truly want to live in, we
have operated the Hankyu Hanshin Dreams and Communities of the Future Project WEB since 2009.
The Corporate Sustainability Department, which serves as the secretariat of the Corporate Sustainability Committee, cooperates with each Group company to promote the Group social contribution
initiatives related to the priority fields of this project while taking advantage of the business characteristics of each company.

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

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

Sustainable Community Development

Tomorrow’s Leader Development

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

We are creating opportunities for the healthy developmentof ambitious children, upon whose shoulders the task ofbuilding the communities of the future rests.

Themes of specific initiatives

Themes of specific initiatives

1. Enabling children to experience and learn about natureand ecology
2. Fostering mental enrichment in children through culturaland artistic activities
3. Supporting the healthy development of children throughsports
4. Enabling children to gain a deeper understanding ofsociety and their communities
5. Cultivating in children a sense of compassion andacknowledgement of diversity
6. Instilling in children the wisdom of their parents andgrandparents
7. Supporting children with disabilities, children orphanedby traffic accidents or disasters, children in single-parent
families, and children confined to social welfare facilities

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

14

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Activities• Promotion of CSR activities at each Group company (collaboration within the Group companies)
Each Group company uses its know-how to engage in a variety of social contribution initiatives that lead to “Sustainable Community Development” and “Tomorrow’s Leader Development,” which are the priority fields of the project. We promoted the social
contribution initiatives of each Group company through public relations, sponsorships, and additional contributions. In FY2022,
105 initiatives were certified.
Of these, the Hankyu Hanshin Dreams and Communities Challenge Troop, a hands-on learning program for elementary school
students held in summer, has been implemented since FY2011 as a social contribution initiative that leverages Group unity. In the
Hankyu Dreams and Communities Exciting Work Program, a school visiting class program for elementary school students conducted by Hankyu Corporation, employees with management experience from the company visit elementary schools to convey the spiritof challenge of the company’s founder, Ichizo Kobayashi, and the history of community development. The purpose of the program is
to foster childrens’ attachment to their community and their dreams for the future. Up to FY2022, the staff have visited a total of 295
schools and have provided approximately 25,000 children with the opportunity to think about their future jobs. These two programs
received the Minister’s Award (Grand Prix) at the 8th Career Education Awards held by the Ministry of Economy, Trade, and Industry
in FY2018, and the highest award (the Minister’s Award) at the “Youth Experience Activity Promotion Company Award” sponsoredby the Ministry of Education, Culture, Sports, Science and Technology in FY2021.
• Other examples: Emergency shelters for children offered at our Group’s taxis, sales offices, and stores for crime prevention in
local communities; Customer appreciation events at train depots and factory.

• Support for civic groups through financial assistance and cooperation in public relations (collaboration with local communities)
We operate the Hankyu Hanshin Dreams and Communities of the Future Fund, through which we subsidize civic groups in ourline-side areas through donations raised by Group employees and additional contributions of the same amount from the company. In FY2022, we donated a total of 11 million yen to 17 non-profit organizations (cumulative total of donations/grants: 99.06
million yen,166 groups). We have collaborated with the subsidized civic groups to promote various actions, such as holding
events for customers.
•E xample: Hands-on workshops and events held in collaboration between civic groups and Group companies at the Group’scommercial facilities and railway stations• Promotion of social contribution initiatives by the Group employees
To support for current and past Group employees to participate in and to continue social contribution initiatives, we give theminformation on the initiatives through the Group PR magazines and e-mail newsletters and opportunities for volunteering insideand outside the company. Additionally, Hankyu Hanshin Holdings, Inc. and some Group companies have a volunteer leavesystem. In the Company, employees can take up to five days of volunteer leave per year.
•E xample: Volunteer group support fund “Dreams and Communities Volunteer Support Program” for supporting the volunteer
activities of current and past employees; implementation of the “Dreams and Communities Action Program” project etc.

• Operation of the Dreams and Communities of the Future SDGs Trains
To commemorate the 10th anniversary of the Hankyu Hanshin Dreams and Communities of the Future Project, welaunched the operation of the Dreams and Communities of
the Future SDGs Trains (Hankyu: three formations of trains;
Hanshin: one formation of trains) in May 2019 in cooperation
with the national and local governments as well as companies and civic groups that are making advanced efforts toachieve the SDGs. Powered by substantive 100% renewable
Hanshin Electric Railway
Hankyu Railway
energy, the trains deliver various messages toward theachievement of the SDGs. Since the Tokyu Group joined this project in September 2020, the SDGs Trains have been operated ineastern and western Japan under collaboration with a wider range of partners.

• Dialogue with stakeholders
We emphasize dialogue with stakeholders to strengthen relationships of trust with them and to listen sincerely to social demands.
•D ialogue with customers: At events, such as Hankyu Hanshin Dreams and Communities Social Lab and Dreams and Communities Stajimo Children’s Learning Week•D
 ialogue with civic groups: At the subsidy presentation ceremony of the Hankyu Hanshin Dreams and Communities of the
Future Fund, visits to subsidized groups, and regular online exchange meetings

15

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE• Achievements through these initiatives
In this project, we regularly conduct a customer survey in cities and towns along our line-side areas. The FY2022 survey results
indicate that the more customers recognize the project and the SDGs Trains, the more they have a positive image of our Groupand a desire to live in our line-side areas.
(%)

100
80
60
45.6
40
20
0

46.4

50.5

25.6

19.8

53.1

46.0

30.9

23.1

65.3

68.4
46.2
38.3

36.7

30.0

26.6

89.2

88.0

81.4
71.2

42.0

28.6

43.0

30.1

Positive Desire
image to live

Positive Desire
image to live

Positive Desire
image to live

Positive Desire
image to live

Total

Those who
recognize
our Group

Those who
recognize theDreams andCommunities of
the Future Project

Those who
recognize
the SDGs Trains(n=1000)(n=796)(n=357)(n=342)16• Positive image of
our Group• Desire to live in the line-side areasof the Hankyu and Hanshin lines■ I have■ I want to live

■ I slightly have

■ I slightly want to live

Survey target: Male and female residents aged 18 to 69 in 23
cities and towns along our line-side areas
Survey method: Random sampling survey through the internet
Number of respondents: 1,000
Survey period: February 25 to March 1, 2022

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

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

TargetIndicator

Range

TargetFY2022 Results

Employee satisfaction

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Always better than in theprevious survey (conducted
every two years)

3.57 (5-point scale)

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Around 10% in FY2031

5.1%

Always more than 30%

36.8%

Percentage of women in
management positions
Percentage of womenamong new hires
Paternity leave uptake
rate*1

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

100% in FY2026

87.6%

Employment rate of people
with disabilities

19 companies to which thespecial subsidiary system
was applied*2

Always above
the legal employment rate

2.96%
(Above the legal
employment rate)*1: Number of employees who took childcare leave or leave for childcare purposes in FY2022/Number of employees whose spouses gave birth in FY2022*2: Includes Hankyu Hanshin Holdings, Inc. and its six major companies.

17

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

17

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

Compliance in Workplace

Balance your work and private life
1

I’ve finishedthe document.

3

2

You areso efficient.

Dad, today myclass had.....

I’m leaving now.
Goodbye.

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

See you
tomorrow.

4

Next day

Good morning.
Let’s give it ourbest today!

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

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

buzz

2

Excuse me....

Ms. B’s office1

Thank you.

2

I can help you.
What can I dofor you?

Thank you.

I finished thething yourequested.

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

Workplace harassment: The following acts constitute workplace harassment.

①Physical violence②Use of malicious language③Ignoring

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

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

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

46

47

Conducting a satisfaction survey to improve employee engagement
Hankyu Hanshin Holdings, Inc. and its six major companies aim to further improve employee satisfaction by conducting an
employee satisfaction survey designed by the Group every other year to monitor satisfaction. The survey results are then reflected in the Group’s initiatives. In this survey, employee satisfaction is defined as the average value of the four items: willingness tocontribute to your job, willingness to contribute to your workplace, willingness to contribute to the company, and maintenanceand improvement of quality. These concern behaviors and results, and are designed to enable the analysis of employee satisfaction from all angles by establishing items that explore employees’ current situations regarding their jobs, workplaces, bosses, andthe company. Employee satisfaction in FY2022 was 3.57* overall, a reasonably high score.
* Calculated based on the weighted average of the company and its six major companies (each question is rated on a five-point scale).

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

• A system that contributes to providing incentives to employees• The Group has introduced an employee stock ownership plan for more than 40 Group companies, including the six major
companies, to support the asset accumulation of employees and provide long-term incentives to them. The number of
employees participating in the employee stock ownership plan is 1,531 persons (as of March 2022).
• The Company has introduced a performance-based annual salary system (applied to about 20 to 30% of the total remuneration depending on the job ranking) for all employees to clarify responsibility for business performance and provide incentives.

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

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

18

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Risk assessment in new and existing operations for good working environment
Under the Group’s risk management system, each group company identifies risks by conducting risk assessments regarding labor issue
for the good working environment for employees in new and existing operations and then establishes and steadily implements appropriate measures such as the management of working hours and ongoing anti-harassment education to mitigate the risks identified.

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

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

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

• Leadership / Management strategy training
In the training for employees in the unit chief class, we invite an outside
lecturer to deliver a lecture on the basic perspective and approach ofmanagement strategy and awareness promotion as a leader who will leadthe next generation.

school to undergo an adult MBA program. They develop a network of external
contacts and acquire advanced and specialized knowledge and skills in all
fields related to management by addressing research topics that they have
set themselves. Upon completion of the program, participants can obtain adegree such as a Master of Business Administration.

• Digital education• Learning support system (self-development support)

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

*Available to all employees

A system that supports the independent learning of employees. We pay
up to 220,000 yen per person per year for fees for attendance at
capacity building programs other than those organized by the company.
We also support them to acquire certifications by providing information on
recommended certifications and establishing a remuneration system thatrewards the acquisition of certifications.

• Dispatch to MBA graduate school / Support for degree acquisition
We dispatch employees selected from among the applicants to a graduate

19

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Stratified training■ Training for the Group’s new

New
employees

How to think and communicate
to get others’ consent

Congratulatory money system for qualification winners

Promotion training

Correspondence education support system

Leadership / Management strategy training

Labor lawbasic course

Follow-up (President meeting)

Finance practicebasic course

Promotion training

Literacy education (by theme)*

Evaluator training

Learning support system

Goal-setting interview (as-needed interview)

Subsection
chief class
Unit chief class

Follow-up (President meeting)

From
2nd
year

Non-managerial employees

Change leadership program training

Seminar for employees returning from childcare leave

Night
talk

Manager promotion training

Dispatch to MBA graduate school■ New manager training

External dispatch training

Managerial
staff

5th year training for employees
in management positions■ Group joint training

Self-development
supportWork-life
designcoursedirectors and auditors

New value creation project researchTraining
in theworkplaceTargets

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

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

Developing employees through training (common to the Group)
The Group has set up a Group joint training program for employees who have reached a milestone in their career (when they join
the company, when they promote to managerial position and director or auditor position). In addition, Hankyu Hanshin Business
Associate, which is broadly entrusted with the personnel and accounting operations of the Group, plans and holds training
programs (Hankyu Hanshin Learning Program/Hankyu Hanshin Business School) throughout the year for Group employees onthemes such as leadership, human resource management and financial analysis, thereby supporting human resource development across the Group. Through these actions, we create opportunities to foster employee awareness as a member of theGroup, strengthen cooperation between groups, and create opportunities for Group employees in a similar job class or involvedin a similar capacity building theme to work hard together.
• Number of employees who participated in the Hankyu Hanshin Learning Program (total): 1,370 persons (FY2022)• Number of employees who participated in the Hankyu Hanshin Business School (total): 162 persons (FY2022)

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

20

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

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

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

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

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

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SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Spread of diversity awareness
The Group annually conducts human rights enlightenment training for the top management of each Group company and all
employees in management positions in the Company, who total up to about 800, as well as human rights training for employees
at each level, including new directors, new managers, and new employees of each Group company, in order to develop a better
instinct for human rights and spreading diversity awareness. In the spring of 2022, we provided training, led by an external
trainer, to the top management of each Group company and all employees in management positions in the Company on understanding LGBT and preventing the harassment of LGBT persons.
In particular, in the international transportation core business, which is operated globally, many local employees work at 144
bases in 28 countries and regions overseas (as of July 2022). Thus, we aim to create a corporate culture in which diverse humanresources can play each active role.

DATA
Work environment
Indicator

Targets

Unit

Hankyu Hanshin Holdings, Inc. andall its consolidated subsidiaries(as of March 31, 2022)

person(s)Voluntary turnover rate of employees

Hankyu Hanshin Holdings, Inc. andits consolidated subsidiaries in Japan%

5.2

Hours in excess of statutory working hours permonth (excluding holidays)

Hankyu Hanshin Holdings, Inc. andits 6 major companies

hour(s)17.1

Annual paid leave acquisition rate

Hankyu Hanshin Holdings, Inc. andits 6 major companies

%

65.9

Number of employees*1
Number of temporary employees*2

FY2022

22,8698,294*1: Number of people employed. Excluding those on secondment elsewhere and including those seconded to us*2: Average number of employees per year; Including contract employees and fixed-term contract employees and excluding dispatched employees

Human resource development
Training record (Off-JT organized by the Personnel Department only)
Indicator

Targets

Unit

FY2022

Number of employees that participatedin development training (total)

person(s)12,883

Total times of development training

hour(s)66,882
6.53(0.82 day)Average hours of development training per employee
Stratified training for managerial
employees
Type oftraining

Hankyu Hanshin Holdings, Inc. andits 6 major companies

0.45hour(s)Stratified training fornon-managerial employees

5.06

Company-designated training

0.95

Public and voluntary training

0.07

22

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Diversity
Workforce composition at Hankyu Hanshin Holdings, Inc. and its 6 major companies (As of March 31, 2022)

Unit

HankyuHanshinHoldings

HankyuCorporation

HanshinElectric
Railway

HankyuHanshin
Properties

HankyuTravelInternational

HankyuHanshin
Express

HankyuHanshinHotelsTotal

Menperson(s)

1,098

3,035

1,130

320

713

572

1,135

8,003

Women

person(s)

188

321

108

119

467

279

764

2,246

%

14.6

9.6

8.7

27.1

39.6

32.8

40.2

21.9

Indicator

Number of
Employees*1

Number ofmanagement
employees*1·2

Number of
new recruits*3

Average years
employed by
the company

Percentageof women
Men

person(s)

680

82

269

236

288

1,555

Women

person(s)

35

5

11

8

25

84

%

4.9

5.7

3.9

3.3

8.0

5.1

Percentageof women
Men

person(s)

28

85

26

13

12

14

13

191

Women

person(s)

16

18

6

13

21

23

14

111

%

36.4

17.5

18.8

50.0

63.6

62.2

51.9

36.8

Men

year(s)

21.1

22.7

21.3

13.5

21.2

21.1

17.5

20.9

Women

year(s)

10.0

14.2

15.7

9.9

13.3

9.7

9.3

11.3

Genderdifference

year(s)

11.1

8.5

5.6

3.6

7.9

11.4

8.2

9.6

Percentageof women*1: Including those on secondment elsewhere; excluding those seconded to us*2:	Since all managerial staff members at Hankyu Corporation and Hanshin Electric Railway are seconded from the Company, the total number at the threecompanies is shown.
*3: Includes new graduate recruits and mid-career recruits who joined the company in FY2022.

Results in promoting diversity
Indicator

Range

Men
Number of employees

Women
Percentage of women

Employment rate of people with disabilities
MenChildcare leaveuptake rate*2

Women

Number of employees whotake nursing care leave

Women

Men

Unit

Hankyu Hanshin Holdings, Inc. andits consolidated subsidiaries
in Japan(as of March 31, 2022)

FY2022

person(s)16,225
4,637

%

22.2

19 companies to which the special
subsidiary system was applied *1(as of June 1,2021)

%

2.96

Hankyu Hanshin Holdings, Inc. andits 6 major companies%

Hankyu Hanshin Holdings, Inc. andits 6 major companies

person(s)

87.6
110.4
2
0

*1: Includes Hankyu Hanshin Holdings, Inc. and its 6 major companies.
*2: Number of employees who took childcare leave or leave for childcare purposes in FY2022/Number of employees who gave birth or whose spouse gavebirth in FY2022

Actions to improve the workplace environment (including promoting career opportunities for female employees)
at Hankyu Hanshin Holdings, Inc. and its 6 major companies
PurposeActions

Preventing overwork andimproving productivity• Introducing a mechanism to grasp the actual working hours of the managerial
staff• Improving business operations efficiency (simplify internal coordination, etc.)

Establishment of a system for harassment• Creating an anonymous whistleblowing system (Harassment Consulting Office)• Establishing regulations on compliance, including harassment

Enhancement of measures tosupport work-life balance• Ensuring exemption or limitation of overtime work
• Creating a half-day/hourly paid leave system• Creating a spouse maternity leave system

Physical health management and promotion• Creating a support system for women’s specific health issues

23

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

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

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

Occupational Safety and Health Committee / Health management organization
Based on the Industrial Safety and Health Act, the Group has set up an Occupational Safety and Health Committee and othercommittees at each company and business site, which its employees participate, according to the type of business and thenumber of employees, to oversee and promote the safety and health activities of each company. The Occupational Safety and
Health Committee of Hankyu Hanshin Holdings, Inc. holds monthly meetings chaired by the director in charge of the Personnel
and General Affairs Division and consists of the same number of members from labor and management excluding the chairperson, and supervises and promotes health and safety activities. In the meeting, the head of each organization and employee
representatives discuss topics related to occupational health and safety to build effective initiatives to address any issues. Additionally, the President of the Board of Directors is appointed as the responsible supervisor in charge of promoting health management at the company and its six major companies. Each group company has set up a health management organization asneeded to promote health management.

24

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

TargetIndicator

Range

TargetFY2022 Results

Specific health guidance
implementation rate

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

More than 60% in FY2026

49.3%

Smoking rate

Hankyu Hanshin Holdings,
Inc. and its 6 major
companies

Less than 15% in FY2026

20.3%

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

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

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

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

Physical health management and promotion
Infectious disease prevention and management measures
Prevention and management of infectious diseases, such as influenza viruses and COVID-19, helps not only to protect the healthof employees but also to enable stable business continuity by preventing employees from being absent from work due to an
infectious disease. The Group recognizes the importance of prevention and management of infectious diseases.
We provide subsidies for influenza vaccinations at medical institutions inside and outside the Group mainly to employees atHankyu Corporation and Hanshin Electric Railway, which are involved in railway operations. Moreover, we have swiftly established a COVID-19 workplace vaccination program for group employees and their families, as well as business partners withwhom the Group has many business relationships, and have carried out initial and follow-up vaccinations.
•N umber of employees who used the influenza vaccination cost subsidy program (Hankyu Hanshin Holdings, Inc. and its 6
major companies): 5,487 persons (FY2022)•N umber of people vaccinated for COVID-19 under the Group’s workplace vaccination program: Cumulative total of 97,663
persons (as of September 2022)

25

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

Initiatives to promote smoking cessation
It is said that Smoking is the greatest preventable risk factor for illness and death. In response, the Group established the Hankyu
Hanshin Holdings Group Smoking Cessation Promotion Declaration in May 2021 and is working to provide support, education
and awareness activities and to improve the environment to encourage smoking cessation. Hankyu Hanshin Holdings, Inc. andits six major companies (including the Hankyu Hanshin Health Insurance Society) provide subsidies for outpatient treatment forsmoking cessation, offer free online smoking cessation services, and hold a non-smoking awareness seminar.
• The total number of applicants for online outpatient treatment for smoking cessation by the Hankyu Hanshin Health InsuranceSociety (Hankyu Hanshin Holdings, Inc. and its 6 major companies): 82 persons** Aggregate data from May 2021 to March 2022.

Mental health and measures
Using a stress check program
The Group conducts a stress check as required by law and responds to highly stressed employees through interviews with anindustrial physician. We also use group analysis of stress check results to improve the workplace environment.
•S tress check acceptance rate (Hankyu Hanshin Holdings, Inc. and its consolidated subsidiaries in Japan): 86.0% (FY2022)

Providing education on mental healthIn addition to providing training on mental health measures to all new Group employees, the Group is also working to improvemental health literacy at certain Group companies at career milestones, such as promotions.

Certification as a Health and Productivity Management Organization*
The Group agrees with the purpose of the Health and Productivity Management Organization Systempromoted by the Ministry of Economy, Trade and Industry, and 19 Group companies have beencertified as a Health and Productivity Management Organization 2022. In addition, Hankyu Corporation, Hanshin Electric Railway, and Itec Hankyu Hanshin have been certified as a Health and Productivity Management Organization 2022 “White 500” organization in the large enterprise category.
•L arge enterprise category (White 500): H
 ankyu Corporation, Hanshin Electric Railway,
Itec Hankyu Hanshin.
•L arge enterprise category: H ankyu Hanshin Properties, Hankyu Travel International, Hankyu Hanshin Express,
Hankyu Hanshin Hotels, Bay Communications, Hankyu Hanshin Business Travel,
Hankyu Hanshin Business Associate.
•S ME category: Kita-Osaka Kyuko Railway, Nose Electric Railway, Hankyu Hanshin REIT Asset Management,
Hanshin Cable Engineering, Hankyu Construction Management, Hankyu Hanshin Insurance Service,
Hankyu Mediax, Hanshin Gardenings, OS.
* Health and Productivity Management Organization System: A corporation that practices good health management is selected by the Ministry of Economy,
Trade and Industry and the Nippon Kenko Kaigi.

26

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

DATA
Indicator

Number of work-related employee
fatalities

Range

Unit

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

FY2020

FY2021

FY2022

0

0

0

0.61

0.39

0.37

1.80

1.95

2.09

3.50

3.31

3.31

* The number of casualties due to occupational accidents per million working hours (at least one day off work)

Indicator

Range

Unit

Number of employees trained on healthand safety

Hankyu Hanshin Holdings, Inc.
and its 6 major companies

person(s)FY2022

5,749•P
 ercentage of business sites with OHSAS 18001 certification
Currently, there are no business sites certified under OHSAS 18001 (ISO 45001 Occupational Health and Safety Management
System).

27

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Sustainability Declaration priority issue (5): Environmental protection• Policy• Project theme

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

Basic Environmental Philosophy and Policy• Basic Environmental Philosophy 	With a recognition that the conservation of the global environment is a key theme
common to humankind, the Hankyu Hanshin Holdings Group will promote environmentally sustainable business activities and contribute to building a society that canachieve sustainable development in order to ensure that a greener global environment and better living environments will be handed down to the next generation.

• Basic Environmental Policy	The Group implements and continuously enhances environmental measures basedon the following policies:
1. W
 e will monitor the environmental impact of our business activities and takeaction to reduce it.
2. W
 e will accurately understand environmental laws and regulations and othersocial requirements and comply with them.
3. W
 e will strive to raise employees’ awareness so that every employee will be able
to act in an environmentally sustainable manner.

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

• Property portfolio management and operation policy from the perspective of the environment in the Real Estate BusinessIn the management and operation of our real estate facilities, with the cooperation of tenants, we will promote environmental
conservation activities that contribute to a carbon-neutral world and a circular economy by working to improve the efficiency ofenergy use, comprehensively sorting, reducing waste and recycling, throughout the facilities, including in tenants’ private areas.
• Approach to cooperation with civic groups
The Hankyu Hanshin Dreams and Communities of the Future Fund program, one of the Group social contribution initiatives, isaimed at providing NPOs and other civic groups engaged in environmental conservation with financial support to achieve environmental protection in collaboration with them. The Group has continued to dialogue regularly with the civic groups that it has
supported about activities aimed at achieving environmental conservation.
28

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

Secretariat

Urban
Transportation

Real EstateEntertainment

Information andCommunication
Technology

TravelInternational
Transportation

Group
companiesGroup
companiesGroup
companiesGroup
companiesGroup
companiesGroup
companies

Other
businesses

Main roles of the Environmental Committee secretariat
Report to the Environmental Committee

Environmental
conservation
activities• Reporting on the progress of environmental conservation activities twice a year, andreviewing activity policies and plans in response to deliberations by the committee

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

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

Employeeawareness-raising• Organizing Environmental Conservation Months (June and December)• Communication through Web version of the Group newsletter

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

• Number and percentage of companies (among Hankyu Hanshin Holdings, Inc. and all its consolidated subsidiaries) thathave business sites certified as covered by recognized environmental management systems
11 companies accounting for 11.1% (FY2022)

29

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Status of Environmental Management System Certification
Certification

Overview

Certified companies and business sites

ISO 14001 standard forenvironmental management
systems

An international standard for environmental management systems• Hankyu Corporation (Shojaku factory)• Itec Hankyu Hanshin• Hankyu Hanshin Express (Hankyu Hanshin
Narita Cargo Center and Hankyu Hanshin
Osaka Cargo Terminal)• HHE (USA) INC.
• HHE (DEUTSCHLAND) GMBH
• HHE (NETHERLANDS) B.V.
• HHE (HK) LIMITED• HHE (MALAYSIA) SDN. BHD.
(HHE: HANKYU HANSHIN EXPRESS)

Green Management
Certification

A certification program for environmental conser• Hankyu Bus (Itami, Ishibashi, Fushiodai,
vation delivered by the Foundation for Promoting
Nishinomiya, and Ashiyahama branches)
Personal Mobility and Ecological Transportation, an • Hankyu Kanko Bus (Osaka, Nakatsu,
extra-governmental organization under the JapaAirport, and Airport-South branches)
nese Ministry of Land, Infrastructure, Transport andTourism. (For transportation-related companies,
including truck freight, bus, taxi, shipping, port
transportation, and warehouse companies)

KES Environmental
Management System
Standard

An environmental management system promotedby the KES Environmental Organization, a Japanese nonprofit created to encourage enterprises toparticipate in environmental improvement activities

30

Hanshin Hotel Systems (The Ritz-Carlton,
Osaka): Obtained Step 1 certification

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

2. Climate Change
Approach
The Hankyu Hanshin Holdings Group has defined contributing to a carbon-neutral world as a policy for the priority issue of“environmental protection” toward Sustainable Management.
We recognize that climate change can create not only risks but also opportunities for significant business growth. We willcontinue to work on steadily improving our energy efficiency and the use of renewable energy in each of our businesses. In ourReal Estate Business, we are aiming to create more eco-friendly buildings (green buildings) and are working to promote energy
saving at our facilities with the cooperation of our tenants and other stakeholders. In this way, we will reduce the environmental
impact of our business activities, including CO2 emissions, and play a part in realizing a carbon-neutral world.

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (p. 29).

TargetIndicator

Range

Targets

FY2022 Results

Rate of CO2 emissions
cuts

Hankyu Hanshin
Holdings and its
subsidiaries’ Japanese
worksites*

In FY2031, 46% reduction
compared to FY2014
In FY2051, net zero CO2 emissions(Announced in May 2022)

36.1% reduction* Equivalent to Scope 1 and 2

Initiatives
Belonging to business associations that aim to mitigate climate change and supporting
public policies toward the mitigation of climate change
The Hankyu Hanshin Holdings Group recognizes the importance of various agreements and public policies concerning actions to
mitigate climate change, including the Paris Agreement, and supports these initiatives. The Group’s railway operation and otherdivisions regularly exchange views with the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of the Environment and propose their ideas about climate change. In the ongoing railway line extension project of Kita-Osaka Kyuko Railway, the company has been closely communicating with the municipality of Minoh, where the extended line will reach. One of themain aims of the project is to reduce the environmental impact of mobility by facilitating the use of public transportation andalleviating car traffic congestion.

31

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Moreover, the Hankyu Hanshin Holdings Group participates in the following initiatives to mitigate climate change.
Initiatives

Group’s involvement

Overview• Agreed with the TCFD
• Task Force onrecommendations in
Climate-related
May 2021, listed TCFD
Financial Disclosures
Supporter(TCFD)•H
 olds TCFD Consortium• TCFD Consortium
membership

The TCFD was created by the Financial Stability Board at the request of the G20 member states.
The TCFD recommends that companies and other kinds of organizations disclose the financial
and other impacts of climate-related risks and opportunities on their medium- to long-term
strategies and planning to help investors make appropriate investment decisions.

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

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

Japan Business Federation (general incorporated association)

Hankyu Corporation andHanshin Electric Railway
participate as corporate
members

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

Participates as a vice chair

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

Hankyu Corporation andHanshin Electric Railway
participate as board
members

The Japan Private Railway Association is a general incorporated association established tocreate safer and more convenient railroads, which are closely connected with the lives of many
people. The association is engaged in activities to improve railroad safety and convenience,
strengthen railroad maintenance, and promote environmental protection.
Hankyu Corporation and Hanshin Electric Railway, both members of our group, are actively
promoting the advantages for environmental preservation of railroads by participating in the
Railway Eco Campaign, one of the association’s activities to promote the use of railroads as ameans of addressing climate change, and by welcoming the Presidents’ participation as association board members.

Kansai Economic
Federation (public
interest incorporated
association)

Japan Private Railway
Association (generalincorporated association)

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

Actions to cut greenhouse gas (such as CO2) emissions and improve energy efficiency
We will strive to reduce CO2 emissions toward FY2031 by implementing various measures to lower energy consumption according to the characteristics of our respective businesses, especially in our Urban Transportation and Real Estate Businesses, which
account for a major part of our energy consumption. Those measures include introducing energy-efficient equipment and promoting energy conservation activities.

32

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Urban Transportation• Actions to lower energy consumption entailed by railway operations
Since railway operations account for about 40% of the Hankyu Hanshin Holdings Group’s energy consumption, the Group places
a high priority on lowering the energy consumption of its railway operations. Hankyu Corporation and Hanshin Electric Railway
devote efforts to shifting to more energy-efficient rolling stock with high energy-saving performance while discussing new developments with train equipment manufacturers.
For example, Hankyu Corporation has introduced highly efficient variable-voltage/variable-frequency (VVVF) inverter control
devices and motors in its rolling stock, as well as replacing all lights, including headlights, with LED lights. Hankyu Corporation
has thus succeeded in developing highly energy-efficient rolling stock (with an electricity consumption reduction of about 50%
from conventional rolling stock). Hanshin Electric Railway has also introduced a main circuit system for VVVF inverter control(equipped with an electric regenerative brake) using a permanent-magnet synchronous motor in its latest rolling stock for local
train use, as well as replacing all lights, including headlights, with LED lights. Hanshin Electric Railway has thus achieved anelectricity consumption reduction of about 60% from existing rolling stock for local train use.

• Actions to lower energy consumption at railway stations
We are gradually upgrading the lighting at our railway stations and other facilities to LED lights, which are less power-consuming
and have a longer life, contributing to waste reduction. (Hankyu Corporation: 47 out of a total of 87 stations; Hanshin Electric
Railway: 37 out of a total of 49 stations; both figures as of March 2022)
In addition, Settsu-shi Station, opened on the Hankyu Kyoto Line in 2010, is Japan’s first net-zero CO2 emissions station (orcarbon neutral station). Various environmental measures adopted at this station, including the use of solar panels and LED lights,
have reduced CO2 emissions from the station to about half of those from an ordinary station. The remaining CO2 emissions fromthe station are completely offset by CO2 emissions reductions through forest conservation activities (carbon offset).

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

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

• Promotion of ZEH in Geo Garden detached houses
In the Geo Garden series of detached houses sold by our Group, we will actively promote the spread of ZEH to contribute to therealization of an energy-saving and a carbon-neutral world. There are three types of ZEH for detached houses: “ZEH,” the designof which reduces primary energy consumption (heating and cooling, ventilation, hot water supply, and lighting) by 100% or moreas compared with standard primary energy consumption; “Nearly ZEH,” with a reduction rate of 75% or more; and “ZEH Oriented,” with a reduction rate of 20% or more. The Group’s goal is to have at least 50% of detached houses for sale at “ZEH” or
Nearly ZEH levels by FY2026 and to have all detached houses for sale at the ZEH standard in principle by FY2031.
33

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Aim for more eco-friendly buildings (green buildings)
To provide many more environment-friendly buildings, the Hankyu Hanshin Holdings Group has striven to obtain environmentand society-friendliness certification such as DBJ Green Building certification, which is organized and run by the Development
Bank of Japan in collaboration with the Japan Real Estate Institute, which is in charge of assessment and certification granting.
TargetIndicator

Range

TargetFY2022 Results

Acquisition rate of green building and otherenvironmental certifications*1 that apply tooffice buildings and large buildings for commercial and other uses*2

Hankyu Corporation,
Hanshin Electric Railway,
Hankyu Hanshin Properties

100% in FY2022(The target is 100%
each fiscal year.)

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

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

Facility

DBJ Green Building certification (5-star scale)★★★★★ (Certified as 5-star)
DBJ Green Buildings that meet Japan’s high- Osaka Umeda Twin Towers Southest standards for environmental and social
Hankyu Nishinomiya Gardens
consideration★★★★ (Certified as 4-star)
DBJ Green Building with exceptionally highenvironmental and social awareness

HEP FIVE★★★ (Certified as 3-star)
DBJ Green Building with very highenvironmental and social awareness

Kobe Sannomiya Hankyu Building

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

Osaka Umeda Twin Towers North

Utilize renewable energy (e.g. solar)
As an action to utilize renewable energy and reduce CO2 emissions, we have been installing solar power generation facilities on
our Group premises. Our major premises equipped with solar power generators are as follows. (The figures in parentheses areannual power generation output in FY2022.)• Urban Transportation: Hanshin Oishi Station (119,302 kWh); Hankyu Settsu-shi Station (59,796 kWh)
• Real Estate: HEP FIVE (17,477 kWh)
• Entertainment: Hanshin Koshien Stadium (128,514 kWh)
Since April 2022, electricity* equivalent to that used in the common areas and leased office spaces of the Osaka Umeda
Twin Towers North / South has come from CO2-free renewable energy. In this way, the building owners and tenant companies
are working together to realize a carbon-neutral world.
* Excluding electricity generated privately via co-generation systems.

34

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

• Addressing physical risks
In recent years, floods caused mainly by super typhoons and training thunderstorms have hit Japan more frequently than before
and become major social issues. The Hankyu Hanshin Holdings Group recognizes that it must implement appropriate disaster
preparedness measures to reduce the risks of being affected by such natural disasters.
As a risk management measure, each Group company conducts an annual risk survey to identify the risks. In the Urban
Transportation Business, in response to the recent situation where other companies in the same industry have been affected byfloods caused by super typhoons, Hankyu Corporation and Hanshin Electric Railway designated response to natural disasters
associated with climate change as our priority risk management issue for FY2020, identified specific risks, and devised necessary
countermeasures. As a result, in FY2021, we formulated a policy for evacuating trains from the sheds in the event of heavy rain
and reorganized our plan for service suspension in the event of a typhoon. We have also considered measures for substations
and the other facilities and equipment necessary for train operations and created specific renovation plans for bridges.

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

DATAThe Group’s GHG emission volumes
Indicator

Total greenhouse gas(GHG) emissions*(SCOPE 1 & 2)

Unit

Group total (business sites inJapan and overseas)
FY
2020

FY
2021

FY
2022

Business sites overseas

Business sites in Japan
FY
2020

FY
2021

FY
2022

Versus FY2014(Reference)
FY2014

FY
2020

FY
2021

FY
2022

t-CO2 436,013 371,136 394,858 434,932 370,131 393,821-222,544-36.1%

616,365 1,082 1,005 1,037

Urban
Transportation

284,232 247,119 260,062 284,232 247,119 260,062-140,557-35.1%

400,619———

Real Estate

81,64373,03477,501

81,557

72,95477,430-42,987-35.7%

120,417

85

80

71

Entertainment

11,843

9,341

10,98911,843

9,341

10,989-4,445-28.8%

15,434

—

—

—

1,895

1,938

2,135

1,895

1,938

2,135

-1,034-32.6%

3,169

—

—

—

Travel

2,042

1,566

1,472

2,029

1,556

1,462

-637

-30.3%

2,099

13

10

9

International Transportation

2,916

2,774

2,778

1,933

1,858

1,821

-514

-22.0%

2,335

983

916

957

Hotels47,321

31,37235,65847,321

31,37235,658-29,615-45.4%

65,274

—

—

—

Other

4,121

3,993

4,264

4,121

3,993

4,264

-2,754-39.2%

7,018

—

—

—

129,656 104,772 104,555 129,512 104,668 104,479-39,688-27.5%

144,166

144

104

77

306,357 266,365 290,303 305,420 265,463 289,342-182,857-38.7%

472,199

938

902

961

By segment

Information and Communication Technology

t-CO2

By SCOPE
SCOPE 1SCOPE 2t-CO2

• The data covers Hankyu Hanshin Holdings, Inc., all its consolidated subsidiaries, and certain non-consolidated subsidiaries. However, some business sites
for which data is difficult to obtain are excluded. The segment-specific breakdown is calculated based on the core business structure as of the end of
FY2022.
* For our GHG emissions, we calculated Scope 1 emissions (direct emissions from sources that are owned or controlled by the company) and Scope 2
emissions (indirect emissions from the generation of purchased or acquired electricity, steam, heat, and cooling).
All those figures were calculated using adjusted GHG emission factors.
GHGs other than CO2 account for only a very small part of the total GHG emissions and are not subject to reporting under the Act on Promotion of Global
Warming Countermeasures. Therefore, we equate CO2 emissions with GHG emissions.

35

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Unit

Total energy
consumption on crude
oil-conversion basisklGroup total (business sites inJapan and overseas)
FY
2020

FY
2021

FY
2022

Business sites overseas

Business sites in Japan
FY
2020

FY
2021

FY
2022

Versus FY2014(Reference)
FY2014

FY
2020

FY
2021

FY
2022

283,582 253,601 252,986 283,045 253,116 252,495-63,996-20.2%

316,491

538

485

491

Urban
Transportation

181,701 167,138 164,480 181,701 167,138 164,480-36,248-18.1%

200,728———

Real Estate

57,01752,66352,30556,962

52,611

52,258-11,875-18.5%

64,13356

52

47

Entertainment

8,044

6,577

7,210

8,044

6,577

7,210

-1,090-13.1%

8,299

—

—

—

1,335

1,438

1,465

1,335

1,438

1,465

-320

-17.9%

1,786

—

—

—

Travel

1,169

941

859

1,159

935

852

-285

-25.1%

1,137

10

7

7

International Transportation

1,521

1,450

1,473

1,049

1,024

1,035

-205

-16.6%

1,241

472

427

437

Hotels30,18520,78922,54230,18520,78922,542-12,999-36.6%

35,541

—

—

—

Other

2,610

2,604

2,653

2,610

2,604

2,653

-974

-26.8%

3,626

—

—

—

By segment

Information and Communication Technologykl•T he data covers Hankyu Hanshin Holdings, Inc., all its consolidated subsidiaries, and certain non-consolidated subsidiaries. However, some businesssites for which data is difficult to obtain are excluded. The segment-specific breakdown is calculated based on the core business structure as of the endof FY2022.

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

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

Unit

FY2020

FY2021

FY2022t-CO2

175,885

153,028

166,291kl

126,818

115,078

115,407•T he scope of the aggregation of GHG emissions and energy consumption is properties classified as rental office business owned by companies in theGroup’s Real Estate Business Segment, which must be reported under the 2023 Revised Act on the Rationalization etc. of Energy Use.
* All the figures were calculated using adjusted GHG emission factors.
GHGs other than CO2 account for only a very small part of the total GHG emissions. Therefore, we equate CO2 emissions with GHG emissions.

36

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (p. 29).

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

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

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

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

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

37

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Promoting waste reduction by introducing a pay-per-amount system
We have introduced a pay-per-amount system, instead of a common flat-fee system, to charge tenant stores in commercial
facilities managed and run by the Hankyu Hanshin Holdings Group (Hankyu Sanbangai and Hankyu Nishinomiya Gardens) for
waste disposal according to the amount of waste they produce. This system is aimed at giving an incentive for the stores tominimize waste and consequently reducing the total amount of waste.

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

Range

TargetFY2022 Result

Volume of food waste

Hankyu Hanshin Hotels

In FY2031, 50% reduction
compared to FY2014

77.3% reduction compared to
FY2014

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

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

Range

TargetFY2022 Results

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

Hanshin Electric Railway(Koshien department),
Hanshin Tigers Baseball Club,and Wellness Hanshin

2030 season
45% reduction compared to
the 2019 season

2021 season
77.5% reduction comparedto the 2019 season(temporary increase due tothe COVID-19 pandemic)

Using recycled materials for uniforms
Since March 2022, uniforms worn by employees and part-time staff at the Hanshin Koshien Stadium have been made of recycled polyester fiber manufactured by Teijin Frontier Co., Ltd. as an alternative to polyester fiber, thereby reducing the use of fiber
resources.
TargetIndicator

Range

TargetFY2022 Results

Percentage of uniforms
worn by the stadium staff
made of recycled materials

Hanshin Electric Railway(Koshien department)

2030 season 20%

2021 season 60%(temporary increase due tothe COVID-19 pandemic)

38

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Plastic cup recycling in collaboration with other companies and the government at the Hanshin Koshien
Stadium
In cooperation with Teijin Frontier Co., Ltd. and Shimojima Co., Ltd., we have introduced a circular
resource initiative in which plastic cups used for beer and other beverages at the Hanshin Koshien
Stadium and collected by customers are recycled as part of the raw materials for novelty items suchas beer cup holders and garbage bags. We are also promoting the reduction of resource use incooperation with the government, for example, by expanding the use of those garbage bags outside
the Hanshin Koshien Stadium, as they have been approved as government-designated garbage bags
since FY2023.
TargetIndicator

Range

Target

Plastic cup collection
rate at the Hanshin
Koshien Stadium

Hanshin Electric
Railway (Koshien
department), Hanshin
Tigers Baseball Club,
Wellness Hanshin

FY2022 Results
A beer cup recycle bin

2030 season 70%

2021 season 29%

Reducing paper use by digitizing air cargo documents in the International Transportation Business
Taking part in the International Transport Association (IATA)’s e-Freight* initiative to build a paperless transportation process forconsolidated air cargo, Hankyu Hanshin Express has digitized (made paperless) all shipping documents for its consolidated air
cargo from Japan to Hong Kong since FY2017. The company has established a necessary system through repeated verifications
with airlines, local subsidiaries, and overseas agencies, and it has built a safer, more reliable, and faster transportation process, witha reduction in consumption of paper (equivalent to 500 A4-size sheets of paper per cargo). As of August 2022, this initiative had
been expanded to 109 destinations in 36 countries and regions, with an expected monthly reduction of 80 tons of paper use.
* e-Freight: A joint initiative in the international transportation industry to build paperless transportation processes through collaboration throughout the supply
chain, including carriers, freight forwarders, ground handlers, shippers, customs brokers and customs authorities

DATA
Waste
Indicator

Unit

Generation
Waste

Recycledt

Non-recycled
Hazardous waste*1 included

FY2020

FY2021

FY2022(25,749)

55,15343,094(8,570)19,954

22,777(1,423)23,728

7,370

(18)

172

327

Generation

Results of waste reduction measures
Indicator

Construction waste*2

Unit

FY2020

FY2021

FY2022

Generation(678)

69,60235,463

Recycled(268)

67,21528,894

(202)

301

5,066

Non-recycledtEquipment regulated by recycling laws

Disposed of

(1)

4

3

Disused items sold

Disposed of

(21)

696

797

• The data above covers Hankyu Hanshin Holdings, Inc.’s subsidiaries in Japan. However, some business sites on which data are difficult to obtain are excluded.
The figures for FY2022 pertain to 87 subsidiaries in Japan. The figures for FY2020 pertain only to domestic business sites of the six major Group companies.
*1: Industrial waste of toxic or infectious kinds, defined as “waste requiring special management” by the Waste Management and Public Cleansing Act of Japan*2: Construction waste to which the Construction Material Recycling Act applies

39

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTUnit

FY2020

GOVERNANCE

Results concerning chemicals
Indicator

Generation
Volatile organic compounds(VOCs) *1

Emissions

PCB-containing waste*2

StoredFY2022

6,450

9,340

7,970

650

3,080

2,870

5,800

6,260

5,100

104

82

24

kg

Transferred out

FY2021tResults for other emissions
Indicator

Nitrogen Oxide (NOx)*
Sulfur Oxides (SOx)*

Unit

FY2020

3

Emissions

4t

FY202196.1

FY202274.0——

FY2020

FY202159.5
0.63

Results of raw materials
Indicator

Office paper

Unit

Used

t

(453)

FY2022597

589• The data above covers Hankyu Hanshin Holdings, Inc.’s subsidiaries in Japan. However, some business sites on which data are difficult to obtain are excluded.
The figures for FY2022 pertain to 87 subsidiaries in Japan. The figures for FY2020 pertain only to domestic business sites of the six major Group companies.
*1: Specific chemical substances whose amounts emitted and transported from business sites are reported to the government in compliance with the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof*2: Stored and treated in compliance with the Waste Management and Public Cleansing Act and the Act on Special Measures concerning Promotion of
Proper Treatment of PCB Wastes*3: The level of nitrogen oxide in automobile exhaust gas in specified areas in Osaka and Hyogo Prefectures, calculated in accordance with the Law Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides and Particulate Matter from Automobiles in Specified Areas.
*4: Sulfur oxides emitted from soot- and smoke-generating facilities, of which we have notified the government in accordance with the Air Pollution Control
Law.

40

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (p. 29).

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

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

Reducing environmental pollution
We mitigate environmental pollution caused by our business activities to reduce their impact on the natural environment, which ishome to diverse organisms. For details, refer to “Initiatives” in “Environment: 3. Pollution and Resources” (p. 37).

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

Urban greening in the Umeda area, Osaka Prefecture
At Osaka Umeda Twin Towers South, planters (477 units, approx. 700 m2) have been installed over a wide area on the exterior balconies(3rd to 9th floors) of the lower floors as wall greening. In consideration of biodiversity, we have selected tree species native to the Rokko
mountain range and the Yodo River water system, as well as a variety of flowers, maple trees, and other plants that change with the seasons. In the rooftop garden on the 12th floor, tree species were selected based on the same concept as that applied for the wall greening,and zelkova trees, symbolic trees for the area, have been placed in harmony with the surrounding landscape and combined with seasonal
plants to provide office workers and visitors with a relaxing and restful oasis space (approximately 800 m2 for the entire rooftop garden).
GRAND FRONT OSAKA, in which the Group participated as a member of the developers, has a garden of approximately 4,000 m2
to the north of the North Building and rooftop gardens, which total over 10,000 m2, on the roofs of the 9th floors of both the South andNorth Buildings. These gardens are designed for harmony with the environment. The entire facility is surrounded with a network of gingko
trees, zelkova trees, and waterscapes, offering a space for store customers, office workers, residents, and hotel guests to enjoy naturalfeatures and seasonal changes. The Umekita Phase 2 Development Project, in which the Group participates as a member of the consortium designated as the developer, will create a total of approximately 80,000 m2 of green areas (including an urban park of about 45,000m2) on the development site based on the community development principle of realizing a fusion of “green” and “innovation.” The development site is located on an important spot for creating a network of ecosystems from Osaka Castle to the Yodo River. Therefore, we
aim to create an urban environment that will be friendly not only to plants but also to birds that use the surrounding area as a destinationand other organisms that will inhabit the urban park.

41

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Managing the Rokko Alpine Botanical Garden in the Mt. Rokko area of Hyogo Prefecture
The Rokko Alpine Botanical Garden in the Mt. Rokko area, which the Group owns andwhere the Group operates its leisure business, has around 1,500 varieties of wild plants,
including alpine and cold-region plants from around the world, plants native to Rokko, andendangered species. In an around 50,000 m2 area of the garden, these plants are cultivated in their near-natural conditions. With daily guided flower tours, seasonal exhibitions, andnature experience programs, the garden helps raise public awareness of the importance ofpreserving nature. The garden has been a member of the Japan Association of Botanical
Gardens since its inception in 1947 and has also served as a local outpost for the protection of biodiversity, promoting a program aimed at preserving Japan’s endangered plant
species outside their habitats. The Itami City Museum of Insects has been working for theconservation of Agapanthia japonica, an insect designated as an endangered species andon the Ministry of the Environment’s Red List. Since 2021, the garden has provided themuseum with Hemerocallis dumortieri, a food source for the larvae. (In 2022, the museum
became the first facility in Japan to successfully breed this insect in captivity.)

Hemerocallis dumortieri

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

Number of biodiversity-related
projects undertaken

Range

TargetFY2022 Results

Hanshin Gardenings

The number of maintenanceand management initiatives
equaled or exceeded theprevious year’s results.

5

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

Obtaining biodiversity-related certification schemes
Hanshin Gardenings has constructed and owns the green areas of the Osaka Umeda Twin
Towers South including wall and rooftop greening, and is working on planting and maintaining them. Thanks to these efforts, those green areas of that building have been recognized
as a high-quality green space in the city, and is certified as an “Urban Oasis” under the Socialand Environmental Green Evaluation System (SEGES) implemented by the Organization forLandscape and Urban Green Infrastructure.
Osaka Umeda Twin Towers South rooftop
garden42

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

Management / Organization
Refer to “Management / Organization” in “Environment: 1. Environmental Management” (p. 29).

Initiatives
Encouraging the reuse of bed and bath linens to reduce water withdrawal
Hankyu Hanshin Hotels encourages guests staying consecutive nights at its 18 directly
operated hotels (7 in the Tokyo metropolitan area and 11 in the Kansai area as of September 30, 2022) to use its “No Cleaning” option where towels and sheets used on the firstnight are reused and not replaced. We are also striving to save water and reduce theamount of water discharged by laundry by setting the following goals.
TargetIndicator

Range

TargetFY2022 Results

Usage rate of “No Cleaning” option for stays ofconsecutive nights(to save water and reduce
wastewater)

Hankyu Hanshin
Hotels

7.0% in FY2031(double the FY2020
level)

5.9%

No Cleaning card

Using gray water facilities
Osaka Umeda Twin Towers South, HERBIS OSAKA, and HERBIS ENT have adopted gray water facilities that purify and treat
kitchen wastewater from restaurants and stores and rainwater for various uses as miscellaneous water (i.e. for watering plants
and toilet flushing), thereby helping to reduce the amount of water withdrawal.

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

43

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Promoting water conservation• Facility renovation initiatives

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

• Operational improvement initiatives
We are striving to save water by reducing the use of water for janitorial cleaning and by checking for leaks in bathrooms andtoilets during security patrols.

DATA
Water withdrawal
Indicator

Unit

Total water withdrawal

By watersource*1

FY2020

FY2021

FY2022(4,190,003)

3,132,413

3,328,912(3,891,045)

2,893,687

3,062,846

Groundwater(184,028)

144,232

164,383

Rainwater and other sources(114,930)

94,494

101,683

Service water supply and industrial
water supply (Municipal potable water)m3

Water discharge
Indicator

Total water discharge*2

Unit

FY2020m3(4,190,003)

FY20213,132,413

FY2022

3,328,912• The data above covers Hankyu Hanshin Holdings, Inc.’s subsidiaries in Japan. However, some business sites on which data are difficult to obtain are excluded.
The figures for FY2022 pertain to 87 subsidiaries in Japan. The figures for FY2020 pertain only to domestic business sites of the six major Group companies.
*1: No surface water, water collected in the quarry, external wastewater, or seawater was withdrawn.
*2: All wastewater was discharged through sewage to external water treatment facilities. No water was discharged into the ocean, surface water, the subsurface, wells, etc. Since most of the water withdrawal is discharged into public sewage system, the amount of water withdrawal was equated with theamount of water discharge in the calculations.

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

Water
resources

Water withdrawal
Water discharge*

Unit

m3

FY2020

FY2021

FY2022

3,939,330

2,799,923

2,911,640

3,939,330

2,799,923

2,911,640• The scope of the aggregation of water withdrawal and discharge is properties classified as rental office business owned by companies in the Group's Real
Estate Business Segment and for which data can be obtained, which must be reported under the 2023 Revised Act on the Rationalization etc. of Energy Use.
*S ince most of the water withdrawal is discharged into the public sewage system, the amount of water withdrawal was equated with the amount of water
discharged in the calculations.

44

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

45

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Corporate governance system
General Meeting of Shareholders
Appointment/Dismissal

Corporate
GovernanceCommittee
Compensation
Committee

Consultation
Findings

Appointment/Dismissal
Board of 
Directors

Directors(excluding Audit &Supervisory Committee
members)

Call/Report on
execution situation

Audit & Supervisory
Committee
Directors

Audits, etc.

Appointment/
Dismissal

Accounting
audit

Accounting
Auditors (CPAs)

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

Selection/Dismissal/Supervision

ReportReportRepresentative Director
CallParticipate(as observer)Group Management Committee

Group
Auditing Division
Audit

Participate

Group Companies*The Hankyu Hanshin Holdings Group takes practical steps to enact all of the principles stipulated in the Corporate Governance Code. For examples of
specific action and other items relating to corporate governance, please refer to the Corporate Governance Report. WEB■ Independent directors ● Male ● Female

Board of Directors (12 members)

Corporate Governance Committee (6 members)

Chairman of the
Board

Kazuo Sumi

Chair

TakehiroSugiyama

Masao Shin

Yasuo
ShimadaYoshishige
Shimatani

Naoya Araki

Noriko Endo
(Academic)

Yuki Tsuru(Attorney at law)

Mitsuyoshi
Kobayashi

Sumi

Endo

Tsuru

Kobayashi Komiyama Takahashi(Manager)

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

Chair
Chair

Masayoshi
Ishibashi

Michiari Komiyama (Attorney at law)

Yuko Takahashi (Doctor & Academic)

Sumi

Endo

Tsuru

Kobayashi Komiyama Takahashi

Initiatives / DATA
More transparent management and effective governanceManagement organization for decision making, execution, and oversight of matters related to company
management• Board of Directors and Directors
The Board of Directors of the Company realizes supervision and oversight and enhances the overall governance of the Group byretaining the authority to approve the Company’s and the Group’s management policies and strategies, and the medium-term or
annual management plans of all core businesses requiring timely submission of progress reports by operating companies andhaving Group companies obtain approval from, or report to, Hankyu Hanshin Holdings, Inc. before taking actions that affect theGroup’s management significantly (for example, investments above a certain threshold).
The Board of Directors deliberates upon and supervises the Group’s ESG initiatives by receiving regular reports on thepolicies and status of ESG issues. To address potential conflict-of-interest transactions and related-party transactions, the Boardof Directors monitors transactions involving the company's directors, major shareholders, etc., by approving or reporting suchtransactions as needed in accordance with statutory and regulatory provisions and the materiality of such transactions.
In order to reinforce governance and oversight capabilities and boost decision-making quality, the Board of Directors is
composed of 12 directors, five of whom are independent directors, including three women. This ensures the diversity on the
Board of Directors. Moreover, the 12 directors include all three members of the Audit & Supervisory Committee.*1,2*1: Quorum of directors: The Company’s articles of incorporation stipulate that a quorum shall be reached with at least four directors and at least three Audit &Supervisory Committee members.
*2: Criteria for appointment of directors: The Company’s articles of incorporation stipulate that resolutions on the appointment of directors, who are split into
two distinct categories—Audit & Supervisory Committee members and others—shall be passed with a majority of voting rights by shareholders in attendance, provided that those in attendance constitute no less than one third of all shareholders with voting rights. The articles also state that resolutions shallnot be conducted by cumulative vote.

46

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE• Audit & Supervisory Committee and its members
Of the Audit & Supervisory Committee’s three members, two are independent directors. By selecting committee members whoare independent from the Company and have a high level of specialist expertise, the Company endeavors to further ensure
sound decision making. We provide full backup to enable the Audit & Supervisory Committee members to perform their governance and oversight functions, for example by involving the full-time member in the Group Management Committee and othermeetings within the Group.
Membership of the Board of Directors, etc.

Membership of the Audit & Supervisory Committee

Maximum number of directors stipulated in articles ofincorporation

No upper limit stipulated.

Term of office stipulated inarticles of incorporation

Audit & Supervisory Committee

Total committee members

3

1 year (2 years in the caseof Audit & Supervisory
Committee members)

Full-time committee
members

1

Chairman of the board

ChairmanInternal directors

1

Number of directors

12Outside directors

2

Appointment of outside
directors

Appointed

Number ofoutside directors

5

Among outside directors,
number of independent
directors

5

Committee chairperson

Internal director

Directors and employees
assigned to aid the duties
of Audit & Supervisory
Committee members

Staff assigned exclusively
to this position* Number of times of the Audit & Supervisory Committee met in FY2022: 11* Number of times of the Board of Directors met in FY2022: 9• Corporate Governance Committee (voluntarily established committee that functions as a nominating committee)
To ensure transparency in the appointment and dismissal of directors and coordination with outside directors, the Corporate
Governance Committee comprises the chairman of the board (or the president, in the chairman’s absence or unavailability) andoutside directors who are independent of the Company, and is chaired by one of the outside directors. The committee gives
advice about the selection of director candidates and the dismissal of directors (excluding Audit & Supervisory Committee members) to the Board of Directors on request, serves as a forum to provide information in such areas as the Group’s finances tooutside directors. The Corporate Governance Committee met twice in FY2022.
• Compensation Committee (voluntarily established)
To ensure that the decision-making process for the amount of compensation paid to directors (excluding Audit & Supervisory
Committee members) is objective and transparent, the Compensation Committee comprises the chairman of the board (or thepresident, in the chairman’s absences or unavailability) and outside directors who are independent of the Company, and ischaired by one of the outside directors. The committee gives advice to the Board of Directors on the Company’s compensation
system on request. The Compensation Committee met once in FY2022.
• Group Management Committee
The members of the Group Management Committee include full-time directors (excluding Audit & Supervisory Committee members) and executive officers of the Company, and representatives of each of the Group’s core businesses. The committee meets
to deliberate and decide on the approval of resolutions of the Board of Directors; the Group’s management strategies and business plans; Group companies’ significant investments; and significant Group management matters.

47

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Ensuring effectiveness of the Board of Directors and Audit & Supervisory Committee• Attendance at meetings of the Board of Directors and Audit & Supervisory Committee by outside directors (FY2022)
Name

Position

Attendance(times attended/times held)
Board ofDirectors

Audit &
Supervisory
Committee

Statements at Board of Directors meetings, etc.

Noriyuki
Inoue

Director

8/9—

Instructive comments made from a corporate manager’s perspective, based on a wealth of management experience.

NorikoEndo

Director

9/9—

Instructive comments based on a wealth of experience and knowledge gained through research into public and government policy.

Yuki
Tsuru

Director

9/9—

Instructive comments from a compliance perspective.

Junzo
Ishii

Director and Audit & Supervisory Committee member

9/9

11/11

Instructive comments from a management studies expert’s
perspective.

Michiari
Komiyama

Director and Audit & Supervisory Committee member

9/9

11/11

Instructive comments from a compliance perspective.

* The office of the Board of Directors assists outside directors and the office of the Audit & Supervisory Committee assists outside directors who are Audit &Supervisory Committee members; in particular, the office of the Audit & Supervisory Committee is staffed with dedicated staff. Moreover, the office of theBoard of Directors sends out materials relating to motions to be tabled at board meetings, in principle around seven days before the meeting date, as well as
its other activities to enhance outside directors’ supervision and oversight functions.

• Evaluation of the Board of Directors’ effectiveness
The Company conducts evaluations of the board’s effectiveness at the board meeting held in April every year.
A summary of the process and results of an evaluation of the effectiveness of the Board of Directors conducted in FY2022 is
as shown below.
1. Evaluation process
In FY2022, the board’s effectiveness was evaluated by conducting a questionnaire survey regarding the adequacy of theboard’s composition and operations, followed by interviews with board members based on the questionnaire’s results.
2. Evaluation results
As a result of the questionnaire and interviews, the board’s composition and operations in FY2022 were deemed to be adequate, and the evaluation concluded that the board was effective and generally administered appropriately.
Conversely, it was suggested that information sharing about issues facing core businesses and current circumstances
could be improved.
Taking this into account, a study will be carried out into how to further improve the board’s oversight and decision-making.
Compensation system
Compensation of Directors• Basic Policies
The Company’s compensation system for directors (excluding Audit & Supervisory Committee members) further motivates them toenhance the Company’s corporate value and business performance, as well as to enhance shareholder value. Compensation
comprises two elements: fixed monetary compensation paid according to position and job responsibilities, and performance-linked
stock compensation* paid in trust to representative directors.
* The Group’s stock-based, performance-linked stock compensation system covers all representative directors (currently four), including the Group CEO. The
system includes malus provisions, under which the rights to receive stock-based compensation may be withheld from any person who commits an egregious breach of duty prior to the finalization of such rights, or if any other grounds for withholding such rights arise.

• Procedure
Based on the foregoing policies, to ensure that concrete decisions regarding the amount of director compensation, which are theresponsibility of the Board of Directors, are made based on objective and transparent procedures, the Company has establisheda Compensation Committee comprising the chairman of the board (or the president, in the chairman’s absence or unavailability)
and independent outside directors, chaired by one of the outside directors. The Board of Directors makes compensation decisions after consultation with the Compensation Committee concerning the compensation system and content of compensation.
The Compensation Committee carries out multifaceted reviews of the individual compensation paid to directors (excluding Audit& Supervisory Committee members), including into the decision-making policy and whether it complies with this. It has been
determined that the Board of Directors acts in accordance with this policy and fundamentally respects the committee’s findings.
More information on this policy can be found in the Corporate Governance Report. WEB
48

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Other efforts to strengthen governanceRegular rotation of accounting audit partners
In accordance with the rules of the Audit Corporation under the Certified Public Accountants Act, etc., the Company operates as follows.
• The engagement partner can be involved in the auditing services of the Company for periods not exceeding seven accounting
periods, and the lead engagement partner can be involved in the auditing services of the Company for periods not exceeding
five accounting periods.

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

Corruption prevention and compliance
Please refer to “Governance 2. Ensure compliance and prevent corruption” (page 51).

Risk management structure
Please refer to “Risk management system” of “Governance 3. Risk management” (page 54).

Conducting internal audits
The Group Auditing Division has dedicated staff and operates under the direct control of the President. The Division establishes
regulations and conducts internal audits of the overall operations of Hankyu Hanshin Holdings, Inc. and its group companies toensure compliance with laws, regulations, and rules. Specifically, each of the Group’s businesses is audited for some Group’s
priority themes based on the Group’s annual audit policy and audit plan with reference to the Group Management Philosophy(Code of Conduct), and is also audited to address the business-specific risks as needed. For example, we regularly (at least once
every three years) set audit themes for accounting and fund management and audit whether basic internal controls such as
checks and approvals related to accounting and funds are functioning effectively. In addition, we audit the compliance status
with laws, regulations, and internal rules related to our business, information security efforts, and working hour management
systems, to verify that internal controls are functioning effectively throughout the Group's management activities.

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

Reflecting stakeholder sentiment in operations
At the Hankyu Hanshin Holdings Group, we believe that the views of our stakeholders—including customers, local communities,
shareholders, trading partners, and employees—have an important place in our business operations.

• Shareholder and investor relations
We have adopted a variety of initiatives to make shareholder meetings more rigorous and make it easier for shareholders to
exercise their voting rights. These include timing meetings to avoid scheduling clashes with other companies, using online
voting platforms, posting convocation and resolution notices (including English versions) on our website, and improving thevoting experience for institutional investors.
• Early sending of convocation notices for the General Meeting of Shareholders
Notices of convocation for the General Meeting of Shareholders held in June 2022 were sent 21 days prior to the event (May 25, 2022).
• Avoiding scheduling clashes with other companies
The General Meeting of Shareholders held in June 2022 took place on June 15, 14 days before the day on which other companies held their own meetings.
• Exercising voting rights via electronic means
We have allowed votes to be cast online via a designated voting website.
•E ntry into an electronic voting platform, efforts to improve the environment in which other institutional investors exercise
their voting rights
We belong to an electronic voting platform run by ICJ, Inc. We also post convocation and resolution notices (including English
versions) on our website.

49

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE• IR activities
In addition to actively engaging with investors in a variety of ways, including twice-yearly briefings—attended by the president—
for analysts and institutional investors regarding the mid-year and year-end results, our dedicated investor relations staff in theGroup Planning Division respond to investors’ inquiries. The feedback we get from investors is shared in-house and reflected inbusiness management.

• Acting on feedback from customers
We value feedback from customers, which we receive in via multiple channels, including our Listening Center and forums for
dialogue with residents’ groups from communities along our railway routes. This structure is designed so that customer feedback
is routinely shared in-house and reflected in our business.
The Hankyu Corporation incorporates its Transit Information Center and Public Relations Dept. Listening Center into its
framework for collecting and acting on customer feedback. For its part, the Hanshin Electric Railway seeks to act on feedback
collected by its public relations office and at its various facilities, as well as through its website.
Alongside the pertinent departments, we investigate and respond to opinions, questions, and other feedback as appropriate,
and the results are subsequently used to improve our businesses.

50

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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

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

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

Compliance Handbook Contents• Hankyu Hanshin Holdings Group Management Philosophy
Mission, Values, and principles• Compliance for the Interest of Customers• Customer Safety First• Sincere Response to Customers• Proper Treatment of Personal Information• Observance of Rules• Proper Disclosure• Act as a Sensible Member of Society• Proper Use of SNS• Compliance for the Interest of Business Partners• Sincere Trading• Proper Use of Intellectual Property• No Involvement with Anti-social Forces• No Bribery or Excessive Entertainment• Compliance for the Interest of Shareholders• No Inappropriate Accounting• No Insider Trading• Compliance as a Member of Society• Environmental Activities• Compliance in Workplace• Social Activities• Satisfying Working Environment• Respect for Human Rights• Clear Distinction Between Work Spending and Private Spending• Observance of Decision-Making Procedures(2) Operation of Corporate Ethics Consultation Desk (Internal Whistle-Blower Procedures)• Corporate Ethics Consultation Desk
The Corporate Ethics Consultation Desk comprises an in-house section and an external section, which is staffed by outside
lawyers. It enables all Hankyu Hanshin Holdings Group officers and employees, as well as the group’s business partners, toreport behavior that violates (or may violate) laws or regulations, or is otherwise unethical (including any corruptions or humanrights violations stated in the Compliance Handbook) with guaranteed anonymity.
The desk operates in accordance with the Whistleblower Protection Act and ensures the protection of the whistleblowers byappropriately managing any information that could identify them and preventing from prejudicial treatment or retaliation to thewhistleblowers.
Furthermore, the desk reports each year to the Board of Directors on its operations; in FY2022 it received fifty-three reports
from throughout the whole Group.

51

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE• Procedures to follow up on non-compliance identified
Procedures to follow up on the
Corporate Ethics Consultation Desk

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

Audit &
Supervisory
Committee
members

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

Reports
Consults
Consulter
Responds

Consultation
Desk

Reports
President
Instructs

Investigates, calls forcorrection, checks
problem rectified
Departments/
Groupcompanies(3) Other Initiatives
In addition, we are setting up compliance promotion offices atcore Group companies and appointing “compliance leaders”
at other companies to ensure our response is on a Groupwide basis.

Overview of Group ComplianceHankyu Hanshin HoldingsCore companies• Information to Group
companies• Guidance and training forGroup companies• Risk management• Risk Management Committee
secretariat• Corporate Ethics Consultation
Desk (internal whistle-blower
procedures)• Internal auditing

Compliance promotion officeInternal whistle-blowing, responsible forplanning and organizing seminars andother awareness-raising activities

Other Group companies
Complianceleaders
Liaise with compliancedepartments of core companies

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

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

52

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Anti-corruption initiatives
As part of our efforts for better compliance, we have established the Anti-Corruption Policy as described below. In May 2021, we
announced our agreement with the United Nations Global Compact and have been promoting anti-corruption activities based on
Principle 10 (“Businesses should work against corruption in all its forms, including extortion and bribery”).
The Company has published and disseminated the establishment of “Anti-Corruption Policy” and comprehensive descriptions of corruption and its prevention methods, including “No Bribery or Excessive Entertainment,” “No Inappropriate Accounting,” “No Insider Trading,” and “Sincere Trading (prohibition of abuse of dominant bargaining position),” in the Compliance Handbook distributed to all the Group’s officers and employees. We are exhaustively striving to raise anti-corruption awareness by
explaining the Anti-Corruption Policy and specific anti-corruption practices in training sessions for officers and employees.

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

Hankyu Hanshin Holdings, Inc.

08

Sincere Trading

We have such a huge stock left.

1
You should
accept returns.

No Bribery or
Excessive Entertainment

No lockstep is allowed.

2

What!

?

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

We plan tochange theprice to XX
yen.

Is that farewell gift appropriate?
2

1

We will do the same asother companies do!

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

1

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

2

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

1
Of course,
he wouldn’t!

3Split bills when you dine with public officials
1

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

Have another drink.

2

That’s not good!

The bill for thisdrinking party
is on us today!

Thank you.

Everything is goingsmoothly thanks toyour work!

We paid expensive
consulting fees, but they
were used as bribery!?

POLICE

What!?

Bam!！

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

Buzz
Buzz

4

Police!!

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

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

2

We would like toexpand into overseas
markets.

We are aprofessional
consulting firm.
We will takecare ofeverything.

■A gift to a public official is prohibited by law. Even if you do not mean to give it for an
inappropriate purpose, it may be recognized as a “bribe.”■Your business partner may not be able to refuse your request, considering its relationshipwith your company and the influence of the refusal over their transactions with you in the
future. Forcing a business partner to purchase your products by exploiting your strong
position may be deemed as a violation of the Anti-Monopoly Act.

30

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

Monitor what your contractor does

He did not accept
the gift...

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

Buzz- zbuz

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

Compliance for the Interest of Business Partners

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

Do not exploit your strong position.
1

11

Compliance for the Interest of Business Partners

Compliance for the Interest of Business Partners

What!?

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

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

31

36

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

53

37

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

3. Risk Management
Risk management system• Risk management structure
We have established a risk management structure to help maintain the health of the Group’s management by preventing risks
from becoming reality, and at minimizing the damage if they do. Specifically, the Group has established a dedicated risk management office in the Personnel and General Affairs Division to oversee groupwide risk management. The office is responsible fordetermining and analyzing pan-organizational risks, while business departments and Group companies do the same for risks
inherent to their own organizations. The Group has also set up a framework that enables the correct dissemination of information
if an unforeseen incident occurs. If a serious risk situation materializes, a Crisis Response Team, headed by the president, isformed to contain the damage spreading and minimize the fallout.

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

• Group management structure
In addition to establishing regulations on risk management that stipulate the above, the Company reports annually to the Boardof Directors on the status of risk analysis and risk measures, including ESG-related risks. The Board of Directors thus has oversight of the risk management important to the Group, including ESG-related risks management, and reviews the effectiveness of
the risk management process as appropriate.
The Corporate Sustainability Committee also deliberates on environmental and social risks, including climate change issues,and their impact on our business. We reflect the contents of these discussions in the Group's overall risk management strategy,
such as in the selection of priority risks when conducting risk surveys.
We refer to ISO 31000 when establishing the above risk management system.

54

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

4. Taxation Transparency
The Hankyu Hanshin Holdings Group has established the following tax policy to improve the transparency and soundness of its
business management. We also fulfill our corporate social responsibilities by understanding the spirit of applicable tax-relatedlaws, complying with the tax-related laws and regulations in operating countries, and by conducting our tax operations properly.

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

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

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

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

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

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

Japan

Overseas

Total

FY2020

14.0

0.5

14.5

FY2021

19.4

0.3

19.8

FY2022

-11.1

0.9

-10.1

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

55

Hankyu Hanshin Holdings, Inc.
Corporate Sustainability Department, Personnel and General Affairs Division
1-16-1 Shibata, Kita-ku, Osaka 530-0012, Japan
Phone: +81-6-6373-5086
https://www.hankyu-hanshin.co.jp/en/

Hankyu Hanshin Toho Group

Date of Issue: November 2022
Last Updated:

April 2023

Next Scheduled Issue:

October 2023