Hankyu Hanshin Holdings
Sustainability Data Book 2021

Table of Contents
SUSTAINABILITY IN GENERAL

2
3
4
5
6

Top Message
Approach toward Sustainability
General Principles and Priority Issues in the Sustainability Declaration
Steps to Determine Priority Issues (Materiality Matrix)
Progress of Sustainable Management
SOCIAL

7
12
17
21
26
30
34

(1) Improve Employee Satisfaction and Create a More Positive Workplace(2) Respect Human Rights(3) Promote Diversity(4) Occupational Safety & Health and Health Management(5) Contribute to Local Communities and Society(6) Ensure Business Safety and Reliableness(7) Business Responding to Social Issues
ENVIRONMENT

41
45
51
54
56

(1) Environmental Management(2) Climate Change(3) Pollution and Resources(4) Biodiversity(5) Water Resources
GOVERNANCE

58
68

Robust Governance
External Evaluation

Editorial Policy
This report outlines the approach, initiatives, major performance results in FY2021, 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. the six core companies of the Hankyu Hanshin Holdings Group, the companies that belong to the Group’s
respective core businesses (Urban Transportation, Real Estate, Entertainment, Information and Communication Technology, Travel, International Transportation,and Hotels), and other operating companies (The following different report scopes apply to some parts of this data book.)● Hankyu Hanshin Holdings, Inc.
● Hankyu Hanshin Holdings, Inc. and six core companies: a total of seven companies (Hankyu Hanshin Holdings, Inc., Hankyu Corporation, Hanshin Electric Railway Co., Ltd.,
Hankyu Hanshin Properties Corp., Hankyu Travel International Co., Ltd., Hankyu Hanshin Express Co., Ltd., and Hankyu Hanshin Hotels Co., Ltd.)● Hankyu Hanshin Holdings, Inc. and its consolidated subsidiaries in Japan: a total of 76 companies● Hankyu Hanshin Holdings, Inc. and all its consolidated subsidiaries: a total of 96 companies* Hankyu Hanshin Holdings, Inc. and the six core companies account for about 70% of the Group’s consolidated operating income.

■ Period Covered: FY2021 (April 1, 2020–March 31, 2021) This data book also covers some initiatives implemented in FY2022.
■ Date of issue: December 2021 ■ Next Issue scheduled for October 2022
■ Reporting system: Information on sustainability is provided in the Sustainability Data Book, the corporate website, and other media listed below.

● Sustainability Data Book: Provides detailed non-financial ESG (environmental, social, and governance) information● Corporate website: Examples 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: Provides information about the review of FY2021 and the Group’s management policies and ESG initiatives● Securities Report: Provides more detailed financial information● Corporate Governance Report: Provides 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 Co., Ltd., Kita-Osaka Kyuko Railway
Co., Ltd., and Nose Electric Railway Co., Ltd.) WEB

01

Top Message

The Hankyu Hanshin Holdings Group has a long history of more than 100 years since its foundation.
Through its history, it has contributed to high-quality community building and has offered new lifestyles
desired by people through a broad range of businesses, from the development of residential andcommercial facilities to the provision of attractive entertainment, such as Hanshin Tigers games andTakarazuka Revue performances, based on its railway business. With the Group Management Philosophy“By delivering ‘safety and comfort’ and ‘dreams and excitement,’ we create satisfaction among ourcustomers and contribute to society” as our mission, we are aiming to achieve sustained growth whilelooking ahead to the future and are actively working on ESG (Environment, Social, and Governance),
which is fundamental to sustained growth.
Meanwhile, society is now facing various challenges, including response to climate change, growinginterest in safety and security, response to diversifying values, and further progress in technologicalinnovation. In the Sustainable Development Goals (SDGs), which the UN member states aim to achieve by
2030, companies are expected to play an increasing role.
Amid these circumstances, we have made the Hankyu Hanshin Holdings Group Sustainability Declaration,
which outlines the Group’s project themes toward the realization of a sustainable society. Under thisdeclaration, we are striving to become an even more sustainable business. Based on the Declaration, we
will further accelerate the Group’s ESG initiatives and build relationships of trust with various
stakeholders, such as customers, local communities, shareholders, business partners, and employees.
We will strive to resolve social issues through our business and make group-wide efforts to enhancesustainable corporate value and eventually realize a sustainable society.

Kazuo Sumi

Takehiro Sugiyama

Chairman and Representative Director,
Group Chief Executive Officer

President and Representative Director

02

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Approach toward SustainabilityGroup Management Philosophy
MissionWhat we try to achieve

By delivering “Safety and Comfort” and “Dreams and Excitement”,
we create satisfaction among our customers and contribute to society.

ValuesWhat is important to us

Customers First

Everything we do is for the customer. That’s where it all starts.

Sincerity

Gain customers’ confidence by always being sincere.

Foresight & Creativity With our pioneer spirit and flexible thinking, we create a new value.
Respect for People

How to act to uphold our values
and fulfil our mission

Principles

Everyone is absolutely invaluable to the Group.

1. We treasure encounters with people, and do our best in the position of a customer.
2. We abide by the laws and regulations, and act with a clear awareness of oursocial responsibilities.
3. We take pride and responsibility in our work, and carry it out promptly.
4. We are not concerned with what is just before us, but think from medium- andlong-term perspectives.
5. We are not satisfied with present conditions, but fix our eyes on the future and act.
6. We have caring feelings and respect each other.
7. We communicate in a lively way and create a workplace with a positive atmosphere.
8. We cooperate with one another for the prosperity of the Group.

Positioning of the Sustainability Declaration
The Hankyu Hanshin Holdings Group released the Sustainability
Declaration in May 2020, which outlines the Group’s commitment toaddressing various challenges in order to help realize a sustainable
society.

Customers
Employees

Contributing toa sustainable society

Shareholders

Vision and strategy for the Group’s sustainable growth

Communities

Partners*We are currently updating our Long-Term Management Vision for 2025

Sustainably enhance corporate value
Three core elements underlie our pursuit of sustainable growth

Daily life value

Social value

Economic value

1) General principles
2) Priority issues (materiality matrix) and the policies for each one3) Project themes, non-financial KPIs

Long-Term Management Vision for 2025
Our value to society

MissionSustainability Declaration

By delivering “Safety and Comfort” and “Dreams andExcitement”, we create satisfaction among our customers andcontribute to society.

Group Management Philosophy

The Sustainability Declaration embodies our contribution.

Initiatives for the SDGs (Sustainable Development Goals)
The SDGs are the universal goals that the United Nations Member States aim to achieve by 2030 to solve social issues in 17 areas,
includingenvironment,
education,andcommunity
development. The Hankyu Hanshin Holdings Group willcontribute to the achievement of the SDGs through the six
priority issues defined in its Sustainability Declaration.
The Hankyu Hanshin Holdings Group supports
the Sustainable Development Goals (SDGs).

03

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

General Principles and Priority Issues in the Sustainability Declaration
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 ourselvesto 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 are safeand disaster-resilient. Ensure that anyone cansafely access our facilities and services.

Thriving communities
Help build sustainable communities with rich naturaland cultural heritage, making great places to live in,work in, and visit.

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
Contribute toward a low-carbon,
circular economy

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

Project themes

Relevant SDGs

❶ Eliminate accidents and improve safety at railways and commercial
facilities❷ Promote actions to prevent/reduce accidents and respond promptly andproperly to accidents if they occur❸ Establish safe and comfortable facilities and services that satisfy theneeds of a diversity of people❶ Develop a good living environment (providing good residences, creating
green spaces and public spaces, establishing cultural and educational
facilities, etc.)❷ Develop and expand commercial/business areas where people
communicate with each other❸ Create a line-side environment that makes it easier for women to workand raise children❹ Promote measures to extend the healthy lifespan of the elderly❺ Offer services that satisfy the needs of foreign visitors/residents❻ Enhance collaboration and partnerships with universities, research
institutions, ventures, local communities, etc.
❶ Propose products/services that help realize a lifestyle in harmony withnature❷ Propose products/services that lead to revitalization and promotion of
local communities and cultures❸ Propose products/services that respond to diverse values and create
comfort and excitement❹ Propose products/services for young people who will lead the next generation❺ Create and disseminate cultures through sports and entertainments❻ Improve existing services and create new businesses by utilizing ICT
innovation❶ Improve employee satisfaction and create a more positive workplace❷ Promote health and productivity management❸ Promote diversity❹ Respect human rights and prevent harassment❺ Cultivate tomorrow’s leaders❶ Cut greenhouse gas (CO2) emissions❷ Improve energy efficiency (promote energy saving)❸ Use more renewable energy (e.g. solar)❹ Aim for more eco-friendly buildings (green buildings)❺ Produce less waste and recycle more

❶ Promote effective and transparent corporate governance❷ Ensure compliance and prevent corruption❸ Enhance risk management, including climate change❹ Pay attention to opinions of stakeholders in doing business*The SDG icon that is placed first is the most relevant to each priority issue.

04

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Steps to Determine Priority Issues (Materiality Matrix)
STEP 1Creating a long list of social issues

Based on guidelines such as the SDGs, GRI Standards, SASB Standards and ISO 26000, organize a list of universal social issues (1),a list of social issues particularly relevant to the Hankyu Hanshin Holdings Group (2), and create a long list (349 items) of social issues
with importance to the Group.

Universal social issues

Social issues particularly relevantto the Hankyu Hanshin Holdings Group● Addressing climate change● Adapting to circular society● Developing sustainable communities● Promoting gender equality and diversity● Balancing economic growthand employee satisfaction● Enhancing corporate governance● Problem solving through partnerships

STEP 2● Depopulating society● Aging population● Tight labor market● Increasing public interest in safety and security● Aging infrastructure● Adapting to diverse values● Accepting multiple cultures alongwith an increase in the foreign population● Advancement of technology innovation

Summarizing into a short list

Make a short list (54 items) of items by removing items from the long list (349 items) that are irrelevant to the Group and combining
those that overlap.

Identification of priority issues

Based on their level of importance to theGroup and to society, rank the items in orderof priority. In addition, conduct questionnairesof and interviews with the responsible
personnel for each core business andinterviews with five external experts WEB .
Following additional examination of thefindings of the surveys and interviews,
determine six priority issues. The Board of
Directors then approves the six priority
issues.

High

Materiality mapping❹

Importance to the Company

STEP 3❸❷❶ Safe, Reliable Infrastructure❶❻❷ Thriving Communities❺❸ Life Designs for Tomorrow❹ Empowering Individuals❺ Environmental Protection❻ Robust GovernanceMediumHigh

Importance to society

Six priority issues (materiality matrix)

Hankyu Hanshin Holdings Group05

Safe, Reliable
I–nfrastructure

Thriving
Communities

Life Designs
for Tomorrow

Empowering
Individuals

Environmental
Protection

RobustGovernance

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Progress of Sustainable Management■ Setting of non-financial KPIs based on the Sustainability Declaration
As shown in the table below, in May 2020, we set non-financial KPIs common to all Group companies based on the Hankyu Hanshin
Holdings Group Sustainability Declaration. Each core business segment has also set its own targets.
Priority issues
Safe, reliable iInfrastructure

Non-financial KPIs
· Applies to Hankyu Corporation, Hanshin Electric Railway,
Kita-Osaka Kyuko Railway, and Nose Electric Railway

Zero culpable incidents in our railway business

Empowering individuals

Employee satisfaction: Always better than in previous survey
Percentage of woman in management positions: About 10% (FY2031)
Percentage of woman among new hires: Always more than 30%

Environmental protection

Rate of CO2 emissions cuts
(1) 26% compared to FY2014 (in FY2031)*(2) 40% compared to FY2014 (in FY2031)*· Applies to Hankyu Hanshin Holdings
Inc. and 6 core companies· An employee satisfaction survey isconducted every two years.

· Applies to Hankyu Hanshin Holdings and subsidiaries’ Japanese
worksites· Applies to Railway energy consumption of Hankyu and Hanshin’s
railway operations* We are preparing to adjust our rate of CO2 emissions cuts targets in line with Japanese government’s goal to go carbon neutral by 2050.

■ 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, andcompliance), 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 relevantmeasures, and deliberates and decides on issues that should be reflected in the Medium-Term Management Plan from both financial
and non-financial perspectives. The results of this committee’s deliberations will
Sustainability promotion framework
be proposed to the Group Management Committee for further deliberations,which comprises all representative directors and the representatives of theBoard of Directors
Group’s core businesses, and also reported to the Board of Directors forsupervision. We are thus promoting sustainable management by positioning it
as an integral part of the entire Group’s management system.
ReferGroup Management Committee Supervisionand report
Refer and report

Corporate Sustainability Committee’s major agenda items
Meeting time

(important
issues)(important issues)

Agenda items

September 2020

· Progress of measures concerning the priority issues towardsustainable management

February 2021

· Progress of the formulation of an action plan concerning the priority
issues toward sustainable management and the setting of
non-financial KPIs
· Response to the Task Force on Climate-related Financial Disclosures(TCFD) and the United Nations Global Compact

Topicsfactored into
Medium-Term
Management
Plan

Corporate Sustainability Committee· Chair: Group CEO· Secretariat: Corporate Sustainability Department(supervisory role)
Corporate Communication Department
and Corporate Planning Department
Propose policies

Implementation
and report

Group Companies■ Establishment of the Corporate Sustainability Department and the PDCA cycle for sustainable management
In April 2020, Hankyu Hanshin Holdings established the Corporate Sustainability Department, an independent department dedicatedto sustainable management, to ensure that the PDCA (plan-do-check-act) cycle* will work reliably for the Hankyu Hanshin HoldingsGroup’s sustainable management. This department serves as the secretariat of the Corporate Sustainability Committee.
* The Corporate Sustainability Department serves as the hub of the reliable functioning of the PDCA cycle, comprising the following four stages: (1) planning - theCorporate Sustainability Committee formulating plans and policies; (2) doing - each core business carrying out necessary measures in line with those plans andpolicies; (3) checking - the Corporate Sustainability Committee monitoring and deliberating on the progress of those measures and seeking opinions andobservations from stakeholders; and (4) acting - improving those plans and measures toward further promotion.

■ Support for the TCFD and the United Nations Global Compact
In May 2021, the Hankyu Hanshin Holdings Group endorsed the Task Force on
Climate-related Financial Disclosures (TCFD)*1 and the United Nations Global
Compact*2 to show 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 the G20,
the TCFD encourages businesses to provide high-quality information about how climate change will impact their strategy and finances
over the medium and long term, so that investors have sufficient information to make their investment decisions.
*2: United Nations Global Compact: 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, andanti-corruption.

06

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(1) Improve Employee Satisfaction and Create a More Positive Workplace

Approach
To provide better quality services to our customers, it is important to improve employee satisfaction and working conditions and create
an environment where diverse human resources can demonstrate their individuality and abilities and play an active role.
The Hankyu Hanshin Holdings Group has set “Improve employee satisfaction and create a more positive workplace” as one ofthe project themes for “Empowering individuals,” a priority issue for sustainable management. In May 2021, we endorsed to 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 rights of 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): It was 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
is chaired by the Group CEO (supervisor). The Committee manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

■ 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 andthe six core 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.
Indicator

Range

FY2020 Results

TargetEmployeesatisfaction

Hankyu Hanshin Holdings, Inc.
and 6 core companies

3.72* (5-point scale)

Always better than in the previous survey(conducted every two years)* The results for FY2020 are based on the survey conducted at four companies (Hankyu Hanshin Holdings, Hankyu Corporation, Hanshin Electric Railway andHankyu Hanshin Properties).

07

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Initiatives■ Delivering messages to Group employees

17

In the Group, the Group CEO and the President of the Company regularly deliver top
Good Working
messages to Group employees through Group magazines and other means.
Environment
Covering various topics, the messages are aimed at spreading the Group
Balance your work and private life
Which office do you want to work in?
Management Philosophy, conveying the medium-term management outlook as wellas the importance of employee satisfaction, which leads to customer satisfaction, andintroducing the way of thinking that we want employees to value in their work.
In the Compliance Handbook distributed to all directors and employees of theGroup, we convey the message to Group employees that we should work not only tocreate a workplace where employees can work with peace of mind but also to ensurethat individual employees can lead a fulfilling life, harmonizing work and private life,
under the theme of “Good Working Environment.” The Compliance Handbook has
been translated into English so that its content can be communicated globally to employees who work overseas.

Compliance in Workplace●Long work hours from excessive overtime and working on holidays may harm thephysical or mental health of workers.
●It is important for a company to create workplace conditions and an atmosphere where
employees can work comfortably. And it is also important for individual employees to keepa good balance between their work and private life so that they can live a satisfying life.
●Sexual harassment and power harassment have become social problems. Recently,
maternity harassment and paternity harassment have also attracted attention. Nevercommit these kinds of harassment in your workplace. And if you find that anyone isinvolved in a harassing act, you must not ignore it. Eliminate any harassing act to createa working environment where everybody can work comfortably and happily.

Compliance in Workplace

1

3

I’ve finishedthe document.

2

I’m leaving now.
Goodbye.

You areso efficient.

Dad, today myclass had.....

Ms. A’s office1

See you
tomorrow.

4

Next day

Good morning.
Let’s give it ourbest today!

■“Work-Life Balance” has attracted increased attention recently. It is a concept in which
individuals should feel satisfaction in both their work and private life by keeping a goodbalance between “work” and “non-work life activities,” such as child care, family care,leisure activities and learning.
■Make a distinction between your work hours and private hours. Do your best at work to fulfill yourduties. 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 your job performance.
■Excessively long working hours will harm your health. There are various factors that cause long
working hours. It is important to discuss and review the operations and working conditions inyour workplace to level work burdens among employees and improve the efficiency of theoperations.
Managers must properly control the work hours of their subordinates to avoid long work hours.

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 bullying, such as insulting speech and ignoring a co-worker, hurts the bullied
person and will also hinder the smooth operation of business in 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 bullying …The following behaviors constitute workplace bullying:①Violence②Use of ill-willed language③Ignoring

Hitting, kicking, shoving, pushing, or pinchingsomeone, or any other similar physicaloffense. These may be subject to a chargeof bodily injury.

Speaking ill or making fun of a person; spreading
an unfavorable rumor; and any other similar act.
These may be subject to a charge of defamation.

Any behavior directed at ignoring
the existence of a person, such as
not replying to a person as if you
did not hear what the person said.

44

45■ Conducting a satisfaction survey to improve employee engagement
The Company and the six core companies aim to further improve employee satisfaction by designing and conducting an original
employee satisfaction survey suitable for the Group to regularly monitor employee satisfaction and reflect the survey results in theGroup’s initiatives. The survey is designed such that employee satisfaction can be analyzed from all angles by setting survey items
related to employee engagement, including “Willingness to contribute to your jobs, workplaces, and the company,” in addition to theitem “Recognition of the current situation of your jobs, bosses, the company.” The survey results are used to grasp the characteristics
of each company and to horizontally roll out effective systems and initiatives that contribute to improving employee satisfaction andimplement them jointly throughout the Group.

■ 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 corecompanies, to support the asset accumulation of employees and provide long-term incentives to them.
● The Company has introduced a performance-based annual salary system (applied to about 20 to 30% of the total remuneration
depending on the job class) 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 the employee
benefit system.

| DATA | Number of employees participating in the employee stock ownership plan: 1,558 persons (as of March 2021)■ Preventing overwork 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 high risk 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 thesuperior recognizes the working hours of employees by checking log records on a PC and calling the roll) according to the workplaceenvironment in order to grasp and reduce the total working hours of employees. We also grasp the status of taking annual paid leaveand encourage employees to take leave as needed.
The Group is also working to improve productivity. We have introduced common groupware with functions, such as schedulemanagement and the sending and receiving of messages, which is used by approximately 12,000 employees (as of August 2021).
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.

08

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ 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 regularinterview system to draw out appropriate support from superiors as needed. We also provide 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 to fulfill
their expected roles, depending on the business characteristics of each company.

◆ Example: Human resource development system of Hankyu Hanshin Holdings, Inc.
The Company implements the following human resource development programs.
● 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 of management strategy andawareness promotion as a leader who will lead the next
generation.
● Dispatch to MBA graduate school
We dispatch employees selected from among theapplicants to a graduate school to undergo an adult MBA
program. They develop a network of external contacts andacquire advanced and specialized knowledge and skills inall fields related to management by addressing research
topics that they have set themselves.

Targets(1) Training
in the workplace● Night talkWe provide employees in management positions with anopportunity for small-group dialogue with directors in eachdepartment. We thus provide the opportunity for them toacquire the optimal perspective for the entire Group by
discussing and exchanging views on cross-business topics.
We also promote personnel exchanges throughout theGroup beyond core business and company borders.
● Learning support system (self-development support)
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 otherthan those organized by the company.

(3)
Self-development
support(2) Training [Off-JT]
Stratified training

Objective-based training■ Training for the Group’s new
directors and auditors

Learning support system

Congratulatory money system for qualification winners

How to think and communicate to get others’ consent

Correspondence education support system

Promotion training

Labor lawbasic course

Follow-up (President meeting)
Leadership / Management strategy training

Finance practicebasic course

Promotion training

Health literacy education /IT literacy education programs*

Evaluator training

Seminar for employees returning from childcare leave

Follow-up (President meeting)[Kobe University / Kwansei Gakuin University]
Dispatch to MBA graduate school

Change leadership program training

External dispatch training

Night
talk
New value creation project research

Goal-setting interview (as-needed interview)

Unit chief classManager promotion training

From
2nd
year
New
employees

Non-managerial employees

Subsection
chief class■ New manager training■ Group joint training

Work-life
design course

5th year training for employees in management positions

Managerial staff

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)09* Gradually introduced to each level of employees in accordancewith the company policy

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ 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 entrustedwith the personnel and accounting operations of the Group, plans and holds training programs forGroup employees (Hankyu Hanshin Learning Program / Hankyu Hanshin Business School)
throughout the year to support human resource development across the Group. Through theseactions, we create opportunities to foster employee awareness as a member of the Group,
strengthen cooperation between groups, and create opportunities for Group employees in a similarjob class or involved in a similar capacity building theme to work hard together.

| DATA |Number of employees who participated in the Hankyu Hanshin Learning Program (total): 1,045 persons (FY2021)
Number of employees who participated in the Hankyu Hanshin Business School (total): 166 persons (FY2021)◆ Business proposal system
The Group has a business proposal system that allows Group employees to participate in the planning and proposal of new
businesses. The staff of the secretariat regularly holds study sessions on business trends in technology or other fields and seminars
on various fields to help improve the imagination and business shaping skills of individual employees. Through this system, we work
to develop human resources with an entrepreneurial mindset and improve the motivation of all Group employees.

| DATA |Number of applications for the business proposal system: 112 (FY2021)◆ 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. Certificates ofcommendation and prizes are granted to award winners, who are introduced in a company newsletter and a Group magazine.

■ Collaboration with Group employees (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 core 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 each company.
A collective agreement has been signed between the companies and their labor unions to set wage levels, working hours, and othertreatment standards for employees. Every year, we 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 the workplaceenvironment, including setting up opportunities for discussions and negotiations between labor and management on a regular basis,
with the aim of creating a more comfortable work environment for employees.
In the Company, employee representatives are selected, and a labor-management agreement has been concluded between the
Company and the employee representatives. They exchange views 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.

10

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

DATA
Indicator

Number of employees*1
Number of temporary employees*2

Unit

Targets

Hankyu Hanshin Holdings, Inc.
and consolidated subsidiaries

Results

23,192As of March 31, 2021 person(s)8,648Hankyu Hanshin Holdings, Inc. anddomestic consolidated subsidiaries

FY2021%

3.9%

Hours in excess of statutory working hours
per month (excluding holidays)

Hankyu Hanshin Holdings, Inc.
and 6 core companies

FY2021hour(s)13.7

Annual paid leave acquisition rate

Hankyu Hanshin Holdings, Inc.
and 6 core companies

FY2021%

61.6%

person(s)5,051Voluntary turnover rate of employees

Number of employees that participatedin development training (total)
Total times of development training
Average hours of development training
per employee(Off-JT organized by the personnel
department only)

Hankyu Hanshin Holdings, Inc.
and 6 core companies

87,825
FY2021hour(s)8.34(1.04 days)*1: 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

11

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(2) 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 on Respect for Human Rights and the Basic 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 harassment in the workplace as a serious issue that prevents employees from demonstrating their abilities, we havepromoted efforts to eradicate harassment on a group-wide basis, including delivering top messages, implementing education andawareness-raising activities, and conducting a questionnaire survey of employees.
In May 2021, we endorsed to the United Nations Global Compact*. We have also stated in the Basic Philosophy on Respect for
Human Rights that we comply with laws and regulations related to the human rights of workers and those related to our businessactivities in each country and region where we conduct our business activities and that we do not discriminate or violate human rights
based on birth, nationality, beliefs (religion), gender, race, age, or disability. We also do not tolerate forced labor, child labor, anddiscrimination due to sexual orientation and gender identity.
We also require our business partners to respect human rights and strive to prevent human rights violations in our relationships
with all people, including our customers.

Hankyu Hanshin Holdings Group Basic Philosophy on Respect for Human Rights
We will contribute to the establishment of a fair and abundant society in which all people’s human rights are respected
and in which no person is discriminated against because of their birth, nationality, beliefs, gender, race, age, or disability.
Today, respecting the human rights of customers, trading partners, shareholders, local communities, employees, andall other people is a vital part of every company's social responsibilities. To that end, we are determined to develop abetter instinct for human rights by maintaining a deep knowledge and understanding of human rights and thesurrounding issues. We recognize that human rights are closely relevant to us all, and endeavor to make sensitivity tohuman rights a core part of our thoughts and our actions.

Hankyu Hanshin Holdings Group Basic Policy on Respect for Human Rights● Recruitment
We make fair and equitable hiring decisions without practicing any discrimination.

● Human rights enlightenment
To eliminate all forms of discrimination, we enhance our sensitivity to human rights so that we can notice human rights
violations around us.

● Workplace environment
We promote the creation of a workplace environment where all employees recognize each other’s differences and candemonstrate their abilities.
● Coexistence with society
As a member of society, we conduct our business activities, keeping in mind that we live together with all people.

● Relationship with business partners
We require our business partners to respect human rights, and we take a resolute attitude toward business partners
who participate in or promote human rights violations.

● Prevention
We always make Group-wide efforts to prevent human rights violations, respecting human rights in our relationships
with all people, including our customers.

12

SUSTAINABILITY IN GENERALSOCIAL* The United Nations Global Compact (UNGC) WEB : It was announced
at the World Economic Forum held in 1999, the UNGC is a pact thatenshrines behavioral principles for businesses around the world. It
consists of ten principles in the areas of human rights, labor, theenvironment, and anti-corruption.
The responsibilities placed on companies and organizations
participating in the United Nations Global Compact have been
determined based on the Universal Declaration of Human Rights, theILO Declaration on Fundamental Principles and Rights at Work, the Rio
Declaration on Environment and Development (Earth Summit), and theUnited 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.

ENVIRONMENTGOVERNANCE[Human Rights]

Principle 1: Businesses should support and respect the protection ofinternationally 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[Labour]the effective 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.
Principle 7: Businesses should support a precautionary approach to[Environment]
environmental challenges,
Principle 8: undertake initiatives to promote greater environmental
responsibility, andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.
[Anti-Corruption] Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

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 manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

■ Human rights enlightenment promotion system in the core companies
In the Group, the core companies in each core business segment are promoting human rights enlightenment initiatives according to
its business characteristics together with group companies under their umbrella. For instance, Hankyu Corporation holds meetings ofthe Human Rights Enlightenment Promotion Main Committee, chaired by the director with a special title in charge of personnel affairs(supervisor), and the Human Rights Enlightenment Promotion Subcommittee, which is a subordinate organization of the Main
Committee, twice a year to deliberate human rights enlightenment initiatives and make a decision as a company.
The Group as a whole provides employees who promote human rights enlightenment activities in each Group company with
opportunities to learn about various human rights issues in order to help each Group company plan and implement human rights
enlightenment training programs for employees. The Company and the six core companies have set the following target and havepromoted the initiatives, checking the action plan and its achievements every fiscal year.
Indicator

Range

FY2021 Results

TargetAttendance rate at human rights
training organizedby the Company at the timeof promotion of employees

Hankyu Hanshin Holdings, Inc.
and 6 core companies

100%

Always 100%

◆ Example: Human rights enlightenment promotion system at Hankyu Corporation
Chairperson

Vice Chairperson

Committee member

Human Rights Enlightenment
Main Committee

Director with a special title
in charge of personnel affairs

Manager of
the Personnel Department(Human Rights Section)

Manager(Each business division /staff department)

Human Rights
Enlightenment Subcommittee

Manager of
the Personnel Department(Human Rights Section)

Section Chiefof the Personnel Department

Section Chief(General affairs
in each department)

Each department / employee

13

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Initiatives
Specific initiatives are listed for each theme of the Basic Policy on Respect for Human Rights.

■ Recruitment◆ Selecting a person who promotes human rights enlightenment and fair process in recruitment and selection*
The Group has appointed a person who promotes human rights enlightenment and fair process in recruitment and selection at 66
companies, 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 establishmentfrom 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 FY2021, a
total of 535 students participated in the internship programs.

■ Human rights enlightenment

16Compliance as a Member of Society

Compliance as a Member of Society◆ Spreading the Basic Philosophy and Basic Policy on Respect for Human Rights
The Group publishes the Compliance Handbook, to be distributed to all employees of
the Group, in which the Basic Philosophy and Basic Policy on Respect for 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 humanrights. In the Handbook, information of the Harassment Consulting Office is provided
to accept a wide range of consultation on harassment. Thus, we work to protect ouremployees.

●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

Your careless speech and behavior may hurt
the dignity of other people.
Beliefs and creed of an individual have nothing
to do with the screening of job applicants.
Who do you respect?

Hankyu Hanshin Holdings Group

Basic Philosophy on Respect for Human Rights

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

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.
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.

Roles within your organization should not
be decided based on gender.
Miss XXX, make a
copy of this! And I
want to have a cupof tea.

You should not refuse a customer
accompanied by an assistance dog.

Hankyu Hanshin Holdings Group

Basic Policy on Respect for Human Rights

No Pets
Allowed

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

Recruitment

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.

Human rights
education

Doesn't he see that
I am busy now?
■Your careless speech or behavior may constitute abuse of human rights. For example, asking a
job applicant about his/her birthplace, family background, beliefs, or creed, or using discriminatingwords is not only an abuse of human rights but also an act that leads to discrimination.
■If you find any discriminative graffiti, contact the section in charge of human rights. Even if
you do it with a good intention, eliminating it without prior reporting may be deemed as
hiding a discriminative act.
■Any act by a person within a company that does not respect human rights of other people is abetrayal of the public expectations of us, and will impair their confidence in the company. A
company and people working in the company interact with many other people when conducting
its business. It is important to respect the rights of individuals with whom we interact.

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.

42

43◆ 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 eachlevel, 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 colored pencil called “hadairo” (skin color) as a start· Sexual orientation / Gender identity: Understand sexual minorities (LGBT / SOGI)· Foreign residents in Japan: Understand the historical background of the residence of foreigners in Japan and multicultural coexistence
through fieldwork in a Korean Town in Osaka Prefecture· Persons with disabilities: Consider reasonable consideration for people with disabilities using a specific case where a customer on awheelchair visits a store

ひ と り で 悩 ま ず ま ず 相 談◆ Displaying enlightenment posters

キリンさんに言われたことが気になるなあ。

ボクの鼻が長いのはおかしいって言われてしまって…

そうだ！

The Company creates approximately 1,500 posters that enlighten Group employees on human rights
every year and puts them up at each workplace in the Group with the aim of spreading the Basic
Philosophy and Basic Policy on Respect for Human Rights to Group employees. On the posters, thecontact information of Harassment Consulting Office and an illustration of the flow after consultation are
clearly presented to promote the use of consultation services.

パンダさんに相談してみよう！

なるほど。キリンさんに私から詳しく聞いても大丈夫かな？

޿ߟߢ߽
⋧⺣ߒߡߨ
ࡄࡦ࠳

1 窓口に相談してみよう

相談員は相談者の承諾なく口外せず、プライバシーを保護します。相談したことを理由に相談者に不利益が生じることがないよう、細心の注意を払います。

キリンさんはゾウさんになんて言ったの？

首はワタシみたいに長くないのに鼻は長いのねって言ったことかしら。

2 相談者に事実確認をします

相談員は受けた相談を、社内での対応プロセスに則り、適切に取り扱います。相談者の承諾なく対応を進めることはありません。事実確認などの具体的な対応を望まれない場合は、お話を聴くだけで、対応を終了することもあります。

パンダさん
本当に
ありがとう！

今後も言動に気をつけます。

気を悪くさせてしまったのなら謝りたいわ。

3 行為者に事実確認をします

相談者の意向を確認し、会社が必要と判断した場合は、人事的な対応や、処分などを行うことがあります。

4 事後対応をします

相談者の意向を確認し、会社は再発防止を行います。

ハ ラ ス メ ン ト を 受 け た ら 、見 か け た ら

人 権 の 尊 重 に 関 する 基 本 方 針

職 場 環 境私 たちは 、お 互 い に 一 人 ひとりの 違 いを認 め 、
す べ て の 社 員 が 持 って い る 力 を 発 揮 で き る
職 場 環 境 づくりを進 めます。

14

相談してよかった！

パンダさん教えてくれて
ありがとう！

相 談 し よ う 窓 口 で。

ハ ラスメント 相 談 窓 口①自社の「相談窓口」、または 上司②阪急阪神ホールディングスの「ハラスメント相談窓口」○直通電話：06-6373-5008 ※平日 9:00〜17:30（12:00〜13:00を除く）○封書：〒530-0012 大阪市北区芝田1-16-1
阪急阪神ホールディングス株式会社 人事総務室人事部（人権啓発担当）宛

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Workplace environment◆ Enhancing harassment prevention measures
In anticipation of 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 the leadershipof 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, 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 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 toharassment and key points for providing guidance to subordinates. They also learn the proper attitude and points to note whenproviding consultation to subordinates as a primary contact point for consultations on harassment, the observance ofconfidentiality, 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 infringeon human rights or ideas that violate equal pay for equal work. We also strive to improve the workplace environment and working
conditions, which form the basis of respect for human rights. The Company annually conducts a personnel and labor-related surveyof each Group company. Through this survey, we check the status of its compliance with labor laws and regulations, and share
information on revisions to labor laws and regulations to the Group.

■ 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 and the hotelbusiness, we work to make our services more comfortable for customers, regardless of the presence or absence of disabilities andthe 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 to awide range of views from customers, including problems with the use of our services and feedback on the convenience of the services.
We also display posters that promote human rights enlightenment and perform automatic broadcasting about respect for humanrights in station buildings based on requests from outside organizations and the government.

◆ Responding to graffiti at the Group facilities
If graffiti that can be regarded as discriminatory is found at stations or commercial facilities managed by the Group, we promptly
cooperate with the administrative authority or the police to take appropriate action.

■ Relationship with business partners
We not only respect human rights ourselves but also require our business partners to do so. We take a resolute attitude towardbusiness partners who participate in or promote human rights violations. If an employee of the Company commits an act of harm toan employee of a business partner, we severely punish the employee of the Company. If an employee of the Company is damaged
due to an act of harm by an employee of a business partner, we promptly help the employee of the Company and take appropriate
action. If we detect a human rights violation in our business activities, we properly address it without neglecting it.

15

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Prevention◆ Enacting regulations on harassment prevention
In anticipation of the enforcement of the revised Act on Comprehensive Promotion of Labor Policies from June 2020, the Group
stipulated 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. And the Group madeit known among employees.

◆ 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 the Personnel
and General Affairs Division of the Company to accept consultation on harassment in the workplace. (Anonymous consultation andreporting are 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 thesituation.
The Group also conducts training that incorporates role-playing for the staff in charge of harassment consulting office in eachGroup company to help them acquire knowledge and skills that can respond appropriately to consultation. We are thus strengthening
a consultation system in which employees can seek consultation without worry. Since FY2017, 266 employees have participated in
the training (including training on the Basic Philosophy and Basic Policy on Respect for Human Rights) for the staff in charge ofharassment consulting office that is organized by the Company (cumulative total up to the end of March 2021).
In addition to the Harassment Consulting Office, we also accept cases of harassment and 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 aswell as the business partners of the Group. (Anonymous consultation and reporting are also available.)* Please refer to “Corporate Ethics Consultation Desk (Internal Whistle-Blower Procedures)” of “Corruption prevention and compliance” in the “GOVERNANCE”
part (page 64).

◆ 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 consultation services along with the message “Don’t worry alone andplease consult with us.”| DATA | Number of respondents to the questionnaire on the workplace environment (the questionnaire conducted jointly with theCompany): 14,490 persons (FY2021)

16

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(3) Promote Diversity

Approach
The Hankyu Hanshin Holdings Group has set “Promote diversity” as one of the project themes for “Empowering individuals,” a priority
issue for sustainable management.
Employees are the starting point for the sustainable growth of the Group, which operates many labor-intensive businesses.
Accordingly, the Group has established a policy of fostering a corporate culture in which individual employees can maximize theirability regardless of gender, age, life stage, or disability. Based on this policy, we will make group-wide efforts to promote diversity andbuild an activated organization where various values interact with each other.

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 manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

■ Promotion of sustainability in the Company and Group companies
To promote the Group’s initiatives for sustainability based on the Sustainability Declaration, the Personnel and General Affairs Divisionof 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 promote diversity
in the company. The Company and the six core companies have set the following targets and have promoted the initiatives, checking
the action plan and its achievements every fiscal year.
For the employment of people with disabilities, we established Assist Hankyu Hanshin, a special subsidiary company, in 2005.
This company plays a central role in creating employment opportunities for people with disabilities to achieve the following target.

Indicator

Percentage of womenin management positions
Percentage of women among new hires

Range

Hankyu Hanshin Holdings, Inc.
and 6 core companies

FY2021 Results

Target

4.7%

Around 10% in FY2031

44.5%

Always more than 30%

Paternity leave uptake rate

Hankyu Hanshin Holdings, Inc.
and Hankyu Hanshin Properties Corp.

8.6%

100% in FY2026

Employment rate of people
with disabilities

19 companies certified
as special subsidiaries*

2.84%

Always above
the legal employment rate

* The 19 companies include Hankyu Hanshin Holdings, Inc. and the six core companies.

17

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Initiatives■ 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 action targets,
including the improvement of the percentage of women among new hires and the percentage of women in management positions.
Promoting the following initiatives, we are striving to create an environment where 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 other attributes,
for training programs conducted by each Group Company according to its business characteristics.

◆ Enhancement of measures to support work-life balanceTo create a comfortable workplace environment for employees who need to balance work with childcare, nursing care, and medical
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.
● Setting the childcare leave / nursing care leave period exceeding the legal period● Encouraging employees to take childcare leave (at the time of spouse’s childbirth, etc.)ଚ૶ଚઋ঍‫ش‬ঝॹॕথॢ५
● Institutionalizing the use of expired annual paid leave for childcare purposesலহध୘ుभ૏য়੍ରঁথॻঈॵॡ
● Conducting reinstatement support seminars for those who take childcare leave● Establishing systems that realize flexible work styles (including allowing employees toselect short working hours and set the period of short-time work beyond the legal limit,
to acquire annual paid leave on a half day basis, to use staggered working hours, to workon a flextime schedule, and to work from home)● Distributing leaflets that introduce systems that support the balance of work and childcare /nursing care and handbooks for supporting the balance of work and childcare (to the relevant
employees and their superiors)
As a result of these efforts to promote career opportunities for female employees, the Company was selected as a constituent of
the MSCI Japan Empowering Women Index (WIN)* in June 2021 for the second consecutive year.

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ႏƞǜƕˁʙƱᏋδǛɲᇌƠŴ෇៫ƢǔƜƱǛࣖੲƠƯƍǇƢŵ࢘ȏȳȉȖȃǯǛŴႏƞǜƷɲᇌƷɟяƴƠƯƘƩƞƍŵᲬᲪᲬᲫ࠰Ჰஉ ႆᘍ

1* MSCI Japan Empowering Women Index (WIN): This index selects Japanese companies
that are leading the industry in terms of gender diversity based on data on theemployment and promotion of women in companies and on disclosed information on
diversity initiatives.

MSCI https://www.msci.com/our-solutions/esg-investing◆ 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.
● Hankyu Corporation: The Life Plan Seminar is held to improve employees’ understanding of retirement benefits and pensions anda reemployment system after retirement as an opportunity to think about work styles and life plans after retirement.

18

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ 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 forpeople 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.
The company is entrusted with cleaning services, job assist services (correspondence delivery, printing, business card making,coffee shop management, etc.), and other services from each Group company, and employees with disabilities perform tasks
according to their individual aptitudes. In addition to providing personalized education and support so that employees with disabilities
can experience the joy of growing through their work, it also focuses on training the instructor staff.
In recognition of the initiatives so far, the company received the Heartful Corporate Challenge Support Award from Osaka
prefectural government in September 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*.
* Certification System for Excellent Small and Medium-sized Business Owners regarding Employment of Persons with Disabilities (Monisu Certification System):
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
Hankyu Corporation accepts work experience of people with disabilities who attend a special school or supporting institution as
employment support for them. This initiative provides them with the opportunity to experience the atmosphere of an actual workplace,and as a result, it makes them deepen their understanding of the Group, leading to their employment in Group companies. It has
gained favorable reputation from supporting institutions and other bodies.

■ 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 (including training
on Basic Philosophy and Policy on Respect for Human Rights) 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 particular, in the international transportation core business, which is operated globally, many local employees work at 29
overseas subsidiaries and 134 overseas bases (as of August 2021). Thus, we aim to create a corporate culture in which diverse humanresources can play an active role.

DATA
Workforce composition at Hankyu Hanshin Holdings, Inc. and 6 core companies (As of March 31, 2021)
Indicator

Number of
Employees*1

No. ofmanagement
employees*1·2

No. ofnew recruits

*3

Male
FemalePercentageof women

Male
FemalePercentageof women

Male
FemalePercentageof womenUnitperson(s)%Genderdifference

HankyuCorporation

HanshinElectric
Railway

HankyuHanshin
Properties

HankyuTravelInternational

HankyuHanshin
Express

HankyuHanshinHotels

Total

1,081

3,019

1,133

318

764

600

1,275

8,190

176

311

104

109

474

268

895

2,337

14.0%

9.3%

8.4%

25.5%

38.3%

30.9%

41.2%

22.2%

661

80

280

243

303

1,567

32

4

11

8

23

78

4.6%

4.8%

3.8%

3.2%

7.1%

4.7%

person(s)%person(s)%MaleAverage years
Femaleof service

HankyuHanshinHoldings

year(s)

27

97

57

23

16

18

97

335

14

18

10

12

40

29

146

269

34.1%

15.7%

14.9%

34.3%

71.4%

61.7%

60.1%

44.5%

20.5

22.2

20.4

13.2

19.8

21.1

16.0

20.1

9.7

13.9

15.3

10.4

11.4

9.5

7.7

10.1

10.8

8.3

5.1

2.8

8.4

11.6

8.3

10.0

*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: New graduate recruits and mid-career recruits who joined the company in FY2021

19

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Results in promoting diversity
Indicator

Male
FemaleNumber of employees

Percentageof women

Employment rate of people with disabilities

Male
Paternity leave uptake rate

FemaleNumber of employees
who take nursing care leave

Unit

Targets

Male
FemaleHankyu Hanshin Holdings, Inc.
and domestic consolidated
subsidiaries

As of March 31, 2021

19 companies certified as
special subsidiaries*1

person(s)Results

16,409
5,026

%

23.4%

As of June 1, 2020

%

2.84%

Hankyu Hanshin Holdings, Inc.
and Hankyu Hanshin
Properties Corp.*2

FY2021%

Hankyu Hanshin Holdings, Inc.
and 6 core companies

FY2021

person(s)

8.6%
100%
1
4

*1: The 19 companies include Hankyu Hanshin Holdings, Inc. and the six core companies.
*2: The two companies are targeted according to the target setting range of the Group.

Actions to improve the workplace environment (including promoting career opportunities for female employees)
at Hankyu Hanshin Holdings and 6 core companies
PurposeActions (examples)

Preventing overwork and improving productivity

・Introducing a mechanism to grasp the actual working hours of the managerial staff
・Improving operational efficiency
・Reviewing business operations (pre-distribution of meeting materials)

Establishment of a system for harassment

・Creating an anonymous whistleblowing system (Harassment Consulting Office)・Establishing regulations on compliance, including harassment

Enhancement of measures to support work-life balance

・Ensuring exemption or limitation of overtime work
・Creating a half-day paid leave system
・Creating a spouse maternity leave system

Physical health management and promotion

・Creating a support system for women’s specific health issues

20

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(4) Occupational Safety & Health and Health Management

Approach
The Group, which operates many labor-intensive businesses, recognizes that the safety and health of its employees are important forsustainable 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 business activities
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 comfortable workplace 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
our customers 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 theworkplace and their families to promote good health.
The Hankyu Hanshin Holdings Group declares that it will actively support the well-being of each individual andstrive to create a workplace environment in which all can live and work in good health and with motivation. The Groupwill pursue these initiatives under the slogan “Hankyu Hanshin Wellness Challenge*.”

Takehiro Sugiyama
President and Representative Director
Officer in Charge of Health Management
Hankyu Hanshin Holdings, Inc.
April 2018

* 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 manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

21

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ 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 the numberof employees, to oversee and promote the safety and health activities of each company. The Occupational Safety and HealthCommittee of the Company holds a monthly meeting, which is chaired by the director in charge in the Personnel and General Affairs
Division, to oversee and promote safety and health activities of the Company. In the meeting, the head of each organization andemployee representatives discuss various topics related to occupational safety and health to build effective initiatives.
In addition, each Group company has set up a health management organization as needed to promote health management
activities.

Composition of the Occupational Safety and Health Committeeof Hankyu Hanshin Holdings

Health management organization of Hankyu Corporation

Chairperson Director in charge in the Personnel and General Affairs Division
Head of the Group
Vice
Employee representative
Planning Division
Chairperson
Head of the Group Business
Development Division
Committee Head of the Group
Persons recommended
member Auditing Division
Committee by the employee
member representative
Industrial physician(4 persons)
Health supervisor
Secretariat

Management <Commitment / Delivering message>
Chairman / President (Officer in charge of health management)

Health Management Promotion Committee <Policymaking>[Main Committee] Chairperson:
Director with a special title in charge of personnel affairs[Subcommittee] Chairperson:
Manager of the Personnel Department (safety and health)

Personnel Department, Personnel and General Affairs Division
Health Management Practice Conference <Planning>[Health Management Promotion Project Team][Labor-management view exchange meeting]

Health Management Promotion Meeting <Promotion>
Health Management Practice Conference members ·Section chief in charge of general affairs ·Health supervisor ·Medical professional, etc.

Employees

The Company and the six core companies have set the following targets and have promoted the initiatives, checking the action planand its achievements every fiscal year.

Indicator

Range

FY2021 Results

TargetSpecific health guidance
implementation rate

Hankyu Hanshin Holdings, Inc.
and 6 core companies

30.9%

More than 60% in FY2026

Smoking rate

Hankyu Hanshin Holdings, Inc.,
Hankyu Corporation,
Hanshin Electric Railway Co., Ltd.,
Hankyu Hanshin Properties Corp.

21.7％

Less than 15% in FY2026

22

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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 to wear a Safety
Week badge and display posters to raise employee awareness of safety.

◆ Provision of safety education
The Group provides training and drills to employees engaged in railway operations, in which it is particularly required to ensure safety,
in order to improve their business knowledge and skills. We also regularly hold an educational program and a lecture meeting as aneffort to raise safety awareness and foster a safety culture in the workplace. Please refer to the safety reports for safety education in
our railway companies.
Safety report: Hankyu Corporation, Hanshin Electric Railway, Kita-Osaka Kyuko Railway, Nose Electric Railway WEB
In order for customers to use our commercial facilities and office buildings without worry as well as to ensure the safety of
employees and those involved in our businesses, we sequentially offer an emergency and rescue course to employees engaged in thereal estate leasing business.

◆ Actions with contractors
We recognize that to ensure safety in the workplace, it is important that we collaborate with contractors to further raise our awarenessof safety and take effective action. In particular, collaboration with a large number of contractors is essential, and this is 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 business promotion. By working
together to set common targets, conduct safety patrols, and award safety commendations, the company strives to further strengthen
safety in business promotion.

■ Physical health management and promotion◆ Measures at the time of infectious disease pandemic
To prevent the spread of COVID-19 and other infectious diseases, the Group takes infection control measures in business as well as
for employees.
● Examples of measures to prevent the spread of COVID-19 for employees· Thorough physical condition management (temperature measurement before going to work, etc.)· Promotion of staggered working hours and working from home
· Thorough measures (advocated by the Japanese government) to avoid the 3Cs (closed spaces, crowded places and close-contact
settings) and the 5 situations (social gatherings with alcohol consumption, long feasts in large groups, conversation without a mask,
living together in a small limited space, switching locations)· Alcohol disinfection of offices and common spaces and thorough wearing of masks◆ 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 health of
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 company mainly to employees atHankyu Corporation and Hanshin Electric Railway, which are involved in railway operations. Moreover, we have swiftly established avaccination system for Group employees and their families as a workplace vaccination program for COVID-19 and have carried out
vaccination since June 2021.

| DATA | Number of employees who used the influenza vaccination cost subsidy program (Hankyu Hanshin Holdings, Inc.
and 6 core companies): 7,220 persons (FY2021)
Number of people who were vaccinated for COVID-19 under the workplace vaccination program of the Group: 37,583
persons (as of September 2021)

23

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 haveestablished 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 and theMinistry of Foreign Affairs to employees scheduled to be stationed overseas and their accompanying family members, and we 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 a resultof specific health checkups (health checkups focusing on metabolic syndrome). Specifically, we encourage the relevant employees toreceive 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.
To prevent cancer, which is said to be one of the three major diseases in Japan, it is effective to undergo regular health checkups
for early detection and treatment. 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 gynecological cancer screening free of charge.

◆ Providing education on physical health
Smoking is said to be the greatest risk factor that can be prevented among the causes of illness and death. Based on this, the Group
provides support, conducts education and enlightenment activities, and improves the environment to promote smoking cessation.
The Company and the six core companies (including the Hankyu Hanshin Health Insurance Society) provide subsidies for outpatient
treatment for smoking cessation, including online outpatient treatment, and plan to hold a non-smoking enlightenment seminar in
FY2022.

| DATA | The total number of applicants for online outpatient treatment for smoking cessation by the Hankyu Hanshin Health
Insurance Society (Hankyu Hanshin Holdings, Inc. and 6 core companies): 339 persons(September 2020–April 2021)■ 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.

| DATA | Stress check acceptance rate (Hankyu Hanshin Holdings, Inc. and domestic consolidated subsidiaries): 87.6% (FY2021)*
Number of people who were vaccinated for COVID-19 under the workplace vaccination program of the Group: 37,583
persons (as of September 2021)* A stress check is carried out by a third-party external inspection organization in about 90% of companies.
In the case of the Company, Happiness-i Co., Ltd. (a third party) conducts a stress check and analyzes and verifies its results.

◆ Enhancing a consultation system
The Company has a counseling room in the business facility, which also can be used by employees of some Group companies. An
industrial counselor, who understands the business characteristics of the Group, provides counseling, offering an easier-to-consult
environment for users. Group employees and their family members who are members of the Hankyu Hanshin Health Insurance Society
can use 24-hour external telephone consultation services to seek consultation on mental health.

◆ Providing education on mental health
The Group conducts training on the theme of mental health measures for all new employees in the Group and employees who havebeen promoted to positions equivalent to subsection chiefs in some companies. Thus, we work to raise employee awareness of theimportance of mental health management (self-care / line care [care by supervisors]) and improve their mental health literacy on thesecareer milestones.

24

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ 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 15 Group companies, including the six corecompanies responsible for the Group’s businesses, have been certified as a Health and Productivity
Management Organization 2021. In addition, Hankyu Corporation, Hanshin Electric Railway, and Itec Hankyu
Hanshin have been certified as a Health and Productivity Management Organization 2021 “White 500”
organization in the large enterprise category.
Large enterprise category (White 500): Hankyu Corporation, Hanshin Electric Railway Co, Ltd., Itec Hankyu Hanshin Co., Ltd.
Large enterprise category: Hankyu Hanshin Properties Corp., Hankyu Hanshin Hotels Co., Ltd., Hankyu Travel International Co., Ltd.,
Hankyu Hanshin Express Co., Ltd., Bay Communications Inc.
SME category (Bright 500): Hankyu Hanshin REIT Asset Management, Inc.
SME category: Kita-Osaka Kyuko Railway Co., Ltd., Hankyu Taxi Inc., Hanshin Cable Engineering Co., Ltd., Chuo Densetsu Co., Ltd.,
Hankyu Hanshin Insurance Service Co., Ltd., Hankyu Mediax Co., Ltd.
* Health and Productivity Management Organization System: A corporation that practices good health management is selected by the Ministry of Economy, Tradeand Industry and the Nippon Kenko Kaigi.

DATA
Indicator

Targets

Unit

Number ofwork-related
employee fatalities

Hankyu Hanshin Holdings, Inc.
and domestic consolidated
subsidiaries

case(s)Hankyu Hanshin Holdings, Inc.
and 6 core companies
Lost-time
incident rate*—(National average for all industries)(National average for the railway /postal industries)(to benchmark against industry standards)

FY2019FY2020

FY2021

0

0

0

0.65

0.61

0.39

1.83

1.80

1.95

3.42

3.50

3.31

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

Indicator

Number of employees trainedon health and mental health(health and safety)

Targets

New employees

Hankyu Hanshin Holdings, Group

Employees
in positions equivalent
to subsection chiefs

Hankyu Hanshin Holdings, Inc.,
Hankyu Corporation,and Hanshin Electric Railway Co., Ltd.

Employees inmanagement positions,etc.

Hankyu Hanshin Holdings Inc.
and 6 core companies

25

Unit

FY2021763
71

person(s)115SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(5) Contribute to Local Communities and Society

ApproachSince its founding, the Hankyu Hanshin Holdings Group has promoted high-quality community building based on railway operations
and has grown together with local communities, including areas along the Hankyu and Hanshin lines. For the Group, residents in local
communities are both customers and partners who support the local communities together.
Since 2009, the Group has been engaged in Sustainable Community Development and Tomorrow’s Leader Development
through the Hankyu Hanshin Dreams and Communities of the Future Project as part of its social contribution initiatives. We are also
expanding the range of social contribution initiatives by working on industry-government-academia collaboration while taking
advantage of our business characteristics.
We believe that these initiatives to contribute to local communities will lead to the sustainable improvement of corporate value(daily life value, social value, and economic value) for the Group and eventually to the improvement of the Group’s brand value. We willcontinue to work with various stakeholders to create communities that people will truly want to live in.

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 manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

■ Hankyu Hanshin Dreams and Communities of the Future ProjectAs part of the Group’s commitment to creating communities that people will truly want to live in, we haveoperated 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 areas of this project while taking advantage of the business characteristics of eachcompany.

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

26

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Priority areas

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 development of
ambitious children, upon whose shoulders the task of building
the communities of the future rests.
Themes of specific initiatives

Themes of specific initiatives

1. Enabling children to experience and learn about nature andecology

1. Creating a safe, comfortable, and environmentally aware
2.
3.
4.
5.
6.

2. Fostering mental enrichment in children through cultural andlocal community
Contributing to the preservation of biodiversity and thenatural environment
Promoting sustainable lifestyles
Preserving, utilizing, and developing local historical andcultural resources
Mitigating climate change
Contributing to the emergence of a society committed torecycling and waste reduction

artistic activities
3. Supporting the healthy development of children throughsports4. Enabling children to gain a deeper understanding of society

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 orphaned bytraffic accidents or disasters, children in single-parent
families, and children confined to social welfare facilities

Initiatives■ Hankyu Hanshin Dreams and Communities of the Future Project◆ Promotion of CSR activities at each Group company
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 areas of the project. We promoted the social contribution
initiatives of each Group company through public relations, sponsorships, and additional contributions. In FY2021, 96 initiatives werecertified.
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 leverage Group unity. In the
Hankyu Dreams and Communities Exciting Work Program, a school visiting class program for elementary school students conductedby Hankyu Corporation, managerial members from the company visit elementary schools to convey the spirit of challenge of thecompany’s founder, Ichizo Kobayashi, and the history of community development. The purpose of the program is to foster students’attachment to their community and their dreams for the future. Up to FY2021, the staff have visited a total of 236 schools and haveprovided approximately 20,000 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 fiscal 2018, and thehighest award (the Minister’s Award) at the “Youth Experience Activity Promotion Company
Award” sponsored by the Ministry of Education, Culture, Sports, Science and Technology infiscal 2021.
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.
School visiting class27

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Support for civic groups through financial assistance and cooperation in public relations
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
FY2021, 14 groups, including four groups to which we had continued to grant subsidies, received a total of 8.27 million yen(cumulative total: 149 groups, 88.06 million yen). We have collaborated with the subsidized civic groups to promote various actions,
including co-hosting projects for customers.
Example: 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 current and past 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 inside andoutside the company.
Example: Fair trade products sale held for employees; Volunteer group support fund “Dreams and Communities Volunteer Support
Program” for supporting the volunteer activities of current and past employees◆ Hankyu Hanshin Dreams and Communities Social Lab
Our Group companies and civic groups in our line-side areas work together to hold hands-on workshops and seminars on a regularbasis at Stajimo NISHINOMIYA, a line-side community base in Hankyu Nishinomiya Gardens, and railway stations of the Hankyu andHanshin lines. In addition to disseminating information on the Hankyu Hanshin Dreams and Communities of the Future Project, wehold seminars that lead to learning in local communities and disaster area support and events aimed at learning about the familiar
environment for a wide range of generations, from adults to children. By providing local residents with opportunities to learn aboutsocial issues, we aim to gain sympathy and momentum for our initiative to create communities that people will truly want to live in.

◆ Operation of the Dreams and Communities of the Future SDGs Trains through government-industry-civil society cooperation
To commemorate the 10th anniversary of the Hankyu
Hanshin Dreams and Communities of the Future
Project, we launched the operation of the Dreams andCommunities of the Future SDGs Trains (Hankyu: threeformations 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 to achieve the SDGs.
Powered by 100% renewable energy, the trains deliver
various messages toward the achievement of the SDGs.
Since the Tokyu Group joined this project in September 2020, the SDGs Trains have been operated in eastern and western Japan
under collaboration with a wider range of partners.

◆ Achievements through these initiatives
In this project, we regularly conduct a customer survey in cities and towns along our line-side areas. The FY2021 survey results
indicate that the more customers recognize the project and the SDGs Trains, the more they have a positive image of our Group anda desire to live in our line-side areas.
● Positive image of our GroupI haveI slightly have

● Desire to live in the line-side areas of
the Hankyu and Hanshin lines

（％）

90.0
80.0
70.0

47.8

40.0
20.0

I slightly want to live

10.0
0.0

49.3

55.0

52.2

25.5

23.6

Positive
image

Desireto live

Total(n＝1000)

68.8

65.0
53.0

32.8

29.7

30.6

27.2

Positive
image

Desireto liveThose who recognize
our Group(n＝823)

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: March 13 to 14, 2021
28

52.4

27.8

25.7

30.0

I want to live

87.7

73.3

60.0
50.0

88.7

82.8

36.3

35.3

34.7

36.0

Positive
image

Desireto live

Positive
image

Desireto liveThose who
recognize the Dreams
and Communitiesof the Future Project(n＝397)

Those who recognize
the SDGs Trains(n＝372)SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Other Initiatives■ Social contribution taking advantage of the Group’s business◆ Conclusion of an Agreement on Travel Arrangement and Volunteer Cooperation in the Event of a Disaster
Hankyu Travel International has signed an Agreement on Travel Arrangement and Volunteer Cooperation in the Event of a Disaster withthe local government. In the event of a disaster, the company will arrange accommodation and transportation for the staff of other local
governments and related organizations heading to the relevant local government for support. It will undertake accommodation
arrangements in consideration of distributed evacuation to hotels and inns, which is increasingly required due to the COVID-19
pandemic. It will also contribute to disaster prevention measures and economic revitalization in the community through volunteer
activities by its employees.

■ Social contribution through social involvement of Group employees◆ Volunteer leave
The Company and some Group companies have a volunteer leave system. In the Company, employees can take up to five days ofvolunteer leave per year.

◆ Cooperation with a program of Kwansei Gakuin University
Since 2019, the Company has cooperated with a project-based learning program organized by Kwansei Gakuin University. The themeof this program is the proposal of businesses for resolving issues in local communities and society. We supervise the program andprovide advice on business proposals made by students. Our employees who are active on the front lines of business or haveexperience in new business development provide direct advice to help students improve their practical thinking ability and businesssensitivity.

■ Social contribution through donations and support
Recognizing that it is widely involved in local communities and society through its business activities, the Group makes donations toa wide range of activities, including fund-raising activities, nature conservation activities, activities to maintain and promote art, culture
and sports, educational activities, and international exchange activities.

■ Dialogue with stakeholders
We emphasize dialogue with stakeholders to strengthen relationships of trust with them and to listen sincerely to social demands.
● Dialogue with customers: At events, such as Hankyu Hanshin Dreams and Communities Social Lab and Children’s Learning Week
● Dialogue with NPOs: 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● Dialogue with external experts: Dialogue in determining priority issues for sustainable management WEB

29

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(6) Ensure Business Safety and Reliableness

General Principal
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” is the coreof its businesses, on which it should place the highest priority to gain the trust of society. With the mission and pride of providing safety
and reliableness to our customers in railway operations, where we are entrusted with their lives, as well as other operations, we always
pursue safety and reliableness with the concerted effort of the Group.
While working to secure safety and reliableness on a daily basis in the railway and all other business segments, we aim to build
a safe and disaster-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.

Approach in the Railway Business
Under the mission of ensuring the absolute safety of transportation, the railway companies of the Group observe all safety policies andfocus their efforts on achieving the safety objectives. We have formulated safety management regulations and have established asafety management system headed by the President. Under this system, we use the PDCA cycle (PLAN → DO → CHECK → ACT)
to continue to improve our initiatives for the safety of transportation, which we voluntarily and actively promote. Thus, we strive toimprove daily safety and ensure safety during emergencies through measures in both aspects of infrastructure and personnel.

■ TargetIndicator

Range

FY2021 Results

TargetZero culpable incidents
in our railway business

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

Zero

Always zeroThe following four companies engaged in railway operations have announced their safety policies and initiatives to ensure the safetyof 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

Platform doors at Kobe-Sannomiya Stationon the Hanshin LineLandslide prevention work beside the track

30

WEB

Joint training with the local fire department

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Initiatives in the Railway Business(1) Eliminate accidents and improve safety
By type

PurposeExamples of specific initiatives / equipment

Fall prevention● Platform screen door ● Safety fence ● Fall prevention warning light ● Platform gap filler rubber● Equipment to prevent falls through the space between connected trains● Braille block with an inward line ● CP (Color Psychology) line

Fall detection● Fall detection mat ● Emergency train stop button

Overspeed prevention● ATS: Automatic train stop system

Emergency alarm● Emergency alarm system ● Emergency call system

Fall prevention● Large partition board ● Vertical handrail

Recording ofoperational conditions● Operational condition recording device

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

Emergency alarm● Grade crossing emergency alarm system

Traffic accident andcongestion prevention● Abolition of grade crossings through the promotion of grade separation

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● Holding of safety workshops and safety report meetings on transportation● Implementation of safety conferences and training to improve skills related to the repair and maintenanceof railway facilities

Enlightening customers● Implementation of the Accident Prevention Campaign (asking those passing grade crossingsfor their cooperation in confirming safety)

Infrastructure

Platform

Train carGradecrossing

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

Initiatives for disaster prevention
and mitigation● 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
guidance and 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) and multilingual support for information
provision in emergencies(Deployment of tablets with a multilingual voice translation system at stations and their use for train
announcements)| DATA | Capital investment in railway operations(¥ billion)
25

Safety-related capital investment

20

4.7

4.3

4.7

6.4

As a railway operator, the Group provides a form of public infrastructure. We
therefore make giving priority to the safety of our customers a fundamental
policy of management and conduct ongoing safety-related capital
investments in our railway operations accordingly. However, in fiscal 2021, inview of the substantial impact of COVID-19, we reduced originally planned
capital investment and reviewed the timing of investment while giving
consideration to safety. As a result, safety-related capital investments totaled¥12.6 billion at Hankyu Corporation and ¥3.5 billion at Hanshin Electric
Railway. These investments were primarily used for the construction of new
trains and renovation of existing ones, as well as construction to further
improve our stations, and seismic reinforcement of elevated tracks.

3.3

15
10
12.7

5
0

0.9
3.7

13.1

1.4

5.8

14.1

2.3

4.5

14.4

0.7
4.8

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

Hankyu Hanshin

2017

2018

2019

2020

12.6

Other capital investment

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

0.6
3.5

Hankyu Hanshin

2021 (FY)31

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Approach in the Businesses Other Than the Railway BusinessOur mission of “providing safety and reliableness,” which we have embraced in the railway business, is also the core of the otherbusinesses. Placing the highest priority on safety and to secure safety and reliableness of customers and local communities as in thepast, we will deliver to our customers “Safety and Comfort” and “Dreams and Excitement,” listed in the Group Management
Philosophy.

Initiatives in the Businesses Other Than the Railway Business◆ Urban Transportation (Automobile)
In the automobile business as well as the railway business, we have created an environment for safe operation in both aspects ofinfrastructure (ensuring the safety of vehicles and equipment) and personnel. In particular, since a vehicle is operated by the driveralone in the automobile business, we strengthen our efforts to prevent accidents caused by the health condition of the driver morethan legally required. For instance, Hankyu Bus has introduced visual function test equipment for elderly drivers to provide appropriate
guidance on changes in their dynamic and night-time vision and visual acuity for depth. Hanshin Bus subsidizes the full cost of acomplete health checkup, including a brain health checkup for drivers who reach the age of 50, since if any symptoms of disease
appear while they are on duty, this will directly lead to a serious accident.

◆ Real Estate
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 people living in and coming to the Umeda area, toincrease emergency response capability in the area (including communicating information using digital
signage and holding seminars on disaster prevention).
Hankyu Hanshin Properties sequentially offers an emergency and rescue course to employees
engaged in the real estate leasing business so that customers can use its commercial facilities with peaceof mind. In addition, in order for all building users, including people with disabilities and foreigners, toevacuate safely in the event of a disaster, it has installed multilingual broadcasting equipment for use inemergencies and has deployed communication tools that complement the equipment. It also works toenhance evacuation guidance education and training for the building management staff and tenants, andit has secured a certain amount of disaster relief supplies for building management personnel involved indisaster recovery activities.

◆ Entertainment
At the Hanshin Koshien Stadium, which is the venue for professional baseball games and large-scale events, we have increased thenumber of air conditioners and have reviewed the holding guidelines through discussions with organizers to prevent customers fromhaving a heat stroke. We have also carried out drainage improvement work on the ground to improve the safety of the ground in theevent 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 of disaster
relief supplies.

32

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Information and Communication Technology
Bay Communications and Hanshin Cable Engineering contribute to disaster prevention and mitigation in local communities by signinga disaster prevention agreement with local governments to create an environment where they can use disaster prevention terminal
devices.

◆ Travel
To 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 and otherrules, and taking precautionary measures, including conducting accident response training.

◆ 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 ofpharmaceuticals, promoted by IATA (International Air Transport Association), at Kansai International Airport and Narita International
Airport on June 1, 2019 and March 15, 2021, respectively.
* 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).

◆ Hotels
To provide safe and reliable meals, Hankyu Hanshin Hotels ensures that the quality
control department thoroughly complies with the checking system before and during thesales of menu items. It also works to improve the emergency response manual and the
management system for disaster relief supplies and equipment and to strengthen
collaboration with local governments so that customers can use our hotels with peaceof mind.

33

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(7) Business Responding to Social Issues

ApproachSociety is now facing various challenges, including response to climate change, growing interest in safety and security, response todiversifying values, and further progress in technological innovation. In the Sustainable Development Goals (SDGs), companies are
expected to play an increasing role.
The Hankyu Hanshin Holdings Group has identified six priority issues under the Sustainability Declaration to resolve social issues
related to stakeholders, including customers, local communities, shareholders, business partners, and employees, through its
business and to sustainably enhance corporate value and eventually realize a sustainable society.
We will make group-wide efforts toward a sustainable future, one that offers a fulfilling, joyful life to all and inspires the next
generation to dream with hope, addressing social issues through our business as in the past.

Initiatives
Specific initiatives are introduced below for each project theme in priority issues (1), (2), and (3) listed in the Sustainability Declaration.

Priority issue (1): Safe, reliable infrastructure
Please refer to “(6) Ensure Business Safety and Reliableness” in the “SOCIAL” part (page 30) for detailsof project themes 1 and 2.

■ Project theme 3: Establish safe and comfortable facilities and services that satisfy the needs of a diversity of people◆ Promoting a barrier-free environment in facilities and services used by various customers
In the railway business, we have been promoting initiatives to make our facilities barrier-free so that all customers including elderly andphysically handicapped can comfortably use stations and trains. For stations, in particular, we are working to make our facilities friendly
to all customers as hubs for local transportation in line with the barrier-free law and the basic barrier-free initiatives formulated by themunicipalities along our line-side areas.
In the new development of commercial facilities and office buildings in the real estate business, we work to create facilities thatare easy to access and use for elderly and disabled customers (including physically handicapped) by assessing their access andusability and taking measures in line with the barrier-free law and other relevant laws and regulations.

◆ Encouraging railway transportation employees to acquire a service care-fitter qualification
In the railway business, we are committed to promoting the acquisition of a service care-fitter qualification, which certifies knowledge
and skills for service care fitting. We strive to provide appropriate care as needed so that all customers including elderly and physicallyhandicapped can use stations and trains with peace of mind.

◆ 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.

34

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Creating a more comfortable and satisfying work environment for tenant employees in commercial facilities and office buildings
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 and eventuallyto an increase in the value of facilities, we promote the following initiatives as a facilities manager.
● Improving employee lounges
We improve employee lounges in large-scale commercial facilities so that tenant employees can relax both physically and mentally for
health during breaks.
● Conducting disaster drills
To protect the safety of customers and tenant employees in the event of a disaster, we regularly conduct disaster drills in cooperation
with our tenants.
● 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 andmotivation of tenant employees partly because winners are qualified for the SC Customer Service Role-Playing Contest (hosted by theJapan 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 the Hankyu
Hanshin Workers’ Service, a service program available exclusively to people working in the Group’s office buildings. Based on theconcept 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, introducing
an SNS communication app, and offering them discount coupon for dining and shopping at the Group’s commercial facilities.

Priority issue (2): Thriving communities■ Project theme 1: Develop a good living environment(providing good residences, creating green spaces and public spaces, establishing cultural and educational facilities, etc.)◆ Hankyu Hanshin’s community building in Saito
Saito International Culture Park City has been developed by taking advantage of the natural environment in a vast hilly area. Since thebeginning of the development of the area, the Group, as a major landowner of the area, has played a central role in the project, which
is aimed at creating new communities demanded in the 21st century. The area offers a good educational environment and a safe andcomfortable living environment with a town security system, high-level disaster prevention functions, and the lush and specious
landscape developed based on an urban planning program. Saito was awarded the Grand Prize of the 2011 Osaka Environmental
Awards for a series of activities, including the introduction of EV car sharing, greening of roofs and use of rainwater for condominiums,
and activities for the conservation of satoyama and terraced rice paddies in which residents participate. The initiative to support
residents participating in community activities was also highly recognized from outside and received the 2018 Good Design Award.

◆ Participating in housing sales in ASEAN countries
We have actively participated in the housing sales business in ASEAN countries, taking advantage of the know-how of developing ahigh-quality living environment, which the Group has cultivated so far in Japan. For instance, in the condominium business in Thailand,
we have adopted the Group’s unique project for condominiums “Geofit+”* for the condominium first sold in 2016 and subsequentones, which has been highly evaluated by local customers.
* Geofit+: A cyclical project that involves gathering feedback from many residents, practically testing it out, and then utilizing it in creating more comfortable housing
environment.

35

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Project theme 2: Develop and expand commercial/business areas where people communicate with each other◆ Enhancing 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 systematicallyrebuilding (upgrading) and developing buildings according to plans from a long-term perspective.
In November 2019, we opened Hotel Hankyu Respire OSAKA with over 1,000 rooms in the Yodobashi Umeda Tower. In thespring of 2022, Osaka Umeda Twin Towers South will be completed, and the Umeda South Hall, which houses offices, including“WELLCO,” a floor dedicated to office workers, two halls (large and small) and a foyer, is scheduled to open.

◆ Developing new communities (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, we are involvedin urban regeneration development, making the most of the potential of the relevant area, while listening to the voices of local residents
and helping resolve various issues, including building communities focusing on disaster and crime prevention.
Example: In 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 acommunity in which people living in the area can feel relaxed, like in their gardens,” as aregeneration project for the former site of Hankyu Nishinomiya Stadium, which was closed in
2002. Various educational institutions invited by the company, including Konan University andKwansei Gakuin University Law School, are located in the adjacent area. The Hyogo Performing
Arts Center has been built on a nearby site provided by the company. These lead to theenhancement of cultural and educational facilities in the area.
Example: Osaka 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, can gather.
The Knowledge Capital provides places and opportunities for business people, researchers, creators, and general users to create newvalue by fusing their sensibilities and technologies, as a hub of intellectual creative activities.
Example: OtherIn 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, a certified
child center, and an emergency supplies warehouse, have been established in a historic area located almost in the center of Shinjuku
Ward based on the concept of “the most comfortable area in the world.”■ Project theme 3: Create a line-side environment that makes it easier for women to work and raise children◆ Project to support women working along the Hanshin lines
Hanshin Electric Railway launched the HANSHIN Women Support Project in November 2014 with the aim of helping women living in
the areas along the Hanshin lines make full use of their capabilities and play more active roles. On the project’s website “Cheer*fullCafe” opened in April 2016, a wide variety of content is available, including interviews with women working in the Hanshin line-side
area and the Park Guide, in which more than 800 parks along the Hanshin lines can be searched by type of playground equipment
and facility. In addition, we hold events where mothers can participate with their children to deepen exchange with each other andsupport the activities of the Cheerful Supporter organization, with which over 300 women are registered, such as providing informationon the line-side areas and holding exchange events.

36

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ “Machinaka Mimamorume” monitoring service to support safety in communities
The Group has offered the monitoring service “Machinaka Mimamorume” since 2016, using the technologies of security BLE(Bluetooth Low Energy) and smartphones. In this service, beacons (receivers) are installed in a town (machinaka), and when registeredchildren or elderly people pass near the beacons, their guardians or family members are notified of the time when they passed. As ofthe end of July 2021, this service had been introduced in six municipalities* and had a proven track record in watching over children
and elderly people who may wander due to dementia. Together with the Mimamorume for School Children (a service, introduced bymany schools and kindergartens nationwide, which notifies the time when registered children commute to and from school bymonitoring them using an antenna and other devices attached to the school gate), this service contributes to improving the safety andsecurity of local communities.
* Itami and Kakogawa Cities in Hyogo Prefecture, Nagaokakyo City in Kyoto Prefecture, Daito City in Osaka Prefecture, Kisosaki Town in Mie Prefecture, and Toda
City in Saitama Prefecture■ Project theme 4: Promote measures to extend the healthy lifespan of the elderly◆ Hankyu Hanshin Group’s daycare service specialized in rehabilitation“Hanshin Iki Iki Day Service” is a half-day elderly care service specialized in rehabilitation. To help the elderly maintain and improve their
daily life activities, technically trained staff members support the users’ rehabilitation exercises using highly reliable equipment that has
acquired “TÜV / ZAT*” certification of Germany, which is the only such case in Japan. The day care service also includes a tea breakas an opportunity for users to have fun and easily communicate with each other with the aim of supporting them in both physical andmental aspects and helping them live a lively (iki iki) life.
* TÜV: German standards and specifications under the German equipment safety law, in addition to the general ISO standards for industrial products
ZAT: Standards and specifications related to medical machines specified by the German national association for outpatient rehabilitation facilities■ Project theme 5: Offer services that satisfy the needs of foreign visitors/residents◆ Multilingual signs and announcements at stations and facilities
The expansion of multilingual services in facilities and services used by various customers not only improves their convenience but also
leads to the appropriate provision of information in case of emergency. Specifically, the urban transportation companies are promoting
the installation of multilingual broadcasting equipment and a multilingual passenger information system in railway vehicles and theprovision of multilingual services for guidance displays and station affairs equipment at stations. Multilingual guidance services havealso been enhanced at commercial facilities in the Umeda area of Osaka and facilities on Mt. Rokko in Kobe, where many foreign
visitors to Japan gather as tourist destinations.

◆ Indicating ingredients with food pictograms at hotel restaurants
Hankyu Hanshin Hotels completed by March 2015 the indication of specificfood allergy ingredients and food ingredients prohibited due to religious
disciplines using food pictograms for breakfast buffets at all of its hotel
restaurants so that all customers, including those with a food allergy andtravelers from various countries and regions, can use the breakfast buffets
without worry. (This was the first attempt by a major hotel chain in Japan.)
We will continue to promote the further enhancement of the display of foodpictograms.

37

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Project theme 6: Enhance collaboration and partnerships with universities, research institutions, ventures,
local communities, etc.
◆ Supporting startups to provide new value
The Hankyu Hanshin Holdings Group supports startups launching new businesses that will lead to creating new industries andrevitalizing local communities with the aim of increasing the primacy of Kansai in international competition among cities and enhancing
the competitiveness and attractiveness of Osaka and Umeda as a business hub. In November 2014, we opened themembership-type office “GVH #5,” set up exclusively for startup support in part of the real estate we own. Located a two-minute walkfrom Osaka-umeda Station on the Hankyu Line, GVH#5 is equipped with office space and meeting rooms, offering a co-working
space available 24 hours a day.

◆ Promoting collaboration with local governments and communities along our line-side areas using community design methods
To contribute to community building and the revitalization of communities, which are social
issues in local communities, we use community design methods to provide local governments
along our line-side areas with a nursing care prevention program aimed at promoting the social
participation of the elderly, a program themed on work styles to promote women’s
advancement, a community building program involving residents, and various other programs.
We have also operated Stajimo NISHINOMIYA, a line-side community base (in Hankyu
Nishinomiya Gardens), as a place to gather various people who are active in the communities
and diverse information, and we have been entrusted with the management of Design andCreative Center Kobe (a designated management facility of Kobe City).

Priority Issue (3): Life designs for tomorrow■ Project theme 1: Propose products/services that help realize a lifestylein harmony with nature◆ Environmental considerations in condominiums
Please refer to “Environment-friendly features adopted in the Geo condominium series” of (2) Climate Change in the “ENVIRONMENT”
part (page 47).

◆ Protecting biodiversity
Please refer to “Protection of biodiversity” of (4) Biodiversity in the “ENVIRONMENT” part (page 55).

■ Project theme 2: Propose products/services that lead to revitalization and promotion of local communities and cultures◆ Planning tour programs that lead to regional promotion in collaboration with local governments
Hankyu Travel International has proactively established ties with municipalities to jointly discover and commercialize hidden tourism
materials and utilize them for the revitalization of local areas and improvement of tourist sights. The company has concluded anagreement on collaboration concerning tourism promotion with several local governments. It has also established “Chiiki Mirai Kikaku,”
an organization for regional future planning, to propose visions for regional promotion while implementing projects for promoting
tourism and selling local specialties, thereby providing support for a broad range of regional promotion.

◆ Revitalizing local communities by decorating trains on the Hanshin Mukogawa Line
On the Mukogawa Line operated by Hanshin Electric Railway, taking advantage of the characteristics of the area adjacent to the
Hanshin Koshien Stadium and the Naruohama Stadium, four formations of trains decorated under the design theme of “baseball”
have been operated from June 2020. The four formations of trains, named “Tigers,” “Koshien,” “TORACO,” and “TO-LUCKY”, adopt
various elaborate designs for the exterior and interior, helping revitalize the area along the railway line.

38

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Project theme 3: Propose products/services that respond to diverse values and create comfort and excitement◆ “Stay-and-donate” accommodation plans
Hankyu Hanshin Hotels sells “Stay-and-donate” accommodation plans as a hotel rooted in local communities. The company has sold
accommodation plans that donate to organizations that provide financial support to facilities where pediatric cancer patients canreceive treatment in an environment more similar to their home and to organizations that dispatch cliniclowns (clinic clowns) topediatric wards to support hospitalized children, and a total of about 9,000 rooms had been used (as of the end of March 2021). The
Group has added the same amount of money as that of donations included in the plans before offering the donations to theorganizations. Since October 2020, it has also sold “stay-and-donate” accommodation plans to support people involved in thedevelopment of COVID-19 vaccines and therapeutic agents, and a total of 1,395 rooms had been used (as of the end of July 2021).

◆ Planning tours for “green tourism” and volunteer activities
To hand down beautiful nature and cultural or scenic sites to subsequent generations, employees of Hankyu Travel International haveconducted cleaning and conservation activities since 2011. Starting from 2018, the company has organized some of these activities
as tours available to general customers, which have been highly appreciated. (Foot of Mt. Fuji, Shizuoka Prefecture; Amanohashidate,
Kyoto Prefecture; Minami-aso Railway, Kumamoto Prefecture; etc.)■ Project theme 4: Propose products/services for young people who will lead the next generation◆ Teaching robot programming to children to develop the ability to realize their dreams
Mimamorume Co., Ltd. service program, we operate “ProgLab,” an educational project aimed
at helping children, who will lead the next generation, develop their ability to realize their dreams
through robot programming. As of the end of September 2021, 59 ProgLab classes were being
offered nationwide (including franchise classes) to teach robot programming using an original
curriculum.
Since FY2021, the curriculum has been expanded to cover the overall area of STEAM
education (cross-curricular education that makes connections between learning taught throughseparate subjects and how to use it to resolve real-world issues). Four new courses have been
newly launched, including “Logical Reading and Writing Course,” which helps children acquire
the ability to organize and output their thoughts using newspapers as teaching materials, and “AILab” to teach from the basics to development of AI.

■ Project theme 5: Create and disseminate cultures through sports and entertainments◆ Baseball and dance schools of Tigers Academy
The Hanshin Tigers opened Tigers Academy in April 2018, aimed at promoting baseball. It operates a Baseball School and Dance
School for preschool and elementary school children. The Baseball School is coached by former Hanshin Tigers players, teachingbasic baseball techniques while also helping improve basic physical strength and develop athletic ability. The Dance School is coachedby current and former Tigers Girls, the Hanshin Tigers’ official fan service members, teaching comprehensive dance skills from thebasics.

◆ Supporting theater culture through Takarazuka Revue
The Takarazuka Revue, having a history of over 100 years since the first performance in 1914, has given not only regular performancesat the Takarazuka Grand Theater and the Tokyo Takarazuka Theater but also national tour performances in about 20 cities each year
nationwide, as well as live viewing at movie theaters around Japan. It has also so far given performances overseas 27 times in 18
countries and regions. In FY2021, due to the impact of the COVID-19 pandemic, it had to cancel many of the regular performancesand national tour performances. However, it has been actively involved in disseminating information using a live distribution service thatallows the performances to be viewed on a TV or smartphone at home and using SNSs or video sharing sites. Through the Takarazuka
Revue, we offer opportunities to become familiar with performance arts to people in a wide range of areas and of various ages.

39

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Project theme 6: Improve existing services and create new businesses by utilizing ICT innovation◆ Examination toward practical use of MaaS (Mobility as a Service)
In collaboration with Mitsubishi Research Institute, Inc., the Company conducted a demonstration experiment of urban MaaS for
residents in our line-side areas in Nishinomiya City, which is our base city along the line-side areas, from April to August 2021. For thisexperiment, we recruited monitors from among the members of our Group’s “STACIA PiTaPa Card,” who live in Nishinomiya City.
Through the experimental smartphone app “maruGot Nishinomiya” offered by us, we provided them with various services, including aroute / facility search service centered on the city, a reservation and payment service, and a point service, on a one-stop basis, andwe asked them to participate in various events linked with the app. Aiming to deploy MaaS in our line-side areas as a new service thathelps demonstrate the comprehensive strength of the Group, we will use the results obtained in this experiment for the future practicalapplication of urban MaaS for residents in our line-side areas.

40

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 all its
business activities will be environmentally sustainable. In the same year, the Group also established its Basic Environmental Policies,
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 these policies.
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 contributing toward a low-carbon, circular economy.
All these embody the Group’s belief that it is pivotal to leverage its strengths in the seven core businesses, including railway
operations, while implementing basic measures to comply with environmental laws and regulations in order to tackle climate change
and other global environmental issues.

Sustainability Declaration priority issue (5): Environmental protection

PolicyContribute toward a low-carbon, circular economy

Project theme
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
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 can achieve 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 Policies
The Group implements and continuously enhances environmental measures based on the following policies:
1. We will monitor the environmental impact of our business activities and take action to reduce it.
2. We will accurately understand environmental laws and regulations and other social requirements and comply with them.
3. We will strive to raise employees’ awareness so that every employee will be able to act in an environmentally
sustainable manner.

41

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 manages issues related to the priority issues listed in the Sustainability
Declaration and their progress, and it reports to the Board of Directors as needed.

Main environmental agenda items of the Board of Directors and the Corporate Sustainability Committee
Meeting time

Agenda items

September 2020

Progress of practices for the priority issue of environmental protection

February 2021

CO2 emissions reduction targets and measures to achieve them
Response to the TCFD

March 2021

Current status of measures for environmental protection toward Sustainable Management■ Environment Committee
The Group has established the Environment Committee, chaired by the Hankyu Hanshin Holdings president, which discusses anddecides on the environmental conservation initiatives, including the initiative to mitigate climate change, that the Group should actively
implement while promoting its management and business activities. The Environment Committee meets once 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 sevencore businesses. The committee thus serves as the starting point of the Group’s promotion of environmental management.
The Environment Committee secretariat annually examines whether the Group’s consolidated and non-consolidated subsidiaries(excluding some) comply with environmental laws and regulations. The secretariat not only checks whether there are any violations ofenvironmental 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.

Main roles of the Environmental Committee secretariat

Group companies

Other businesses

Secretariat

HotelsInternational Transportation

TravelInformation andCommunication Technology

Entertainment

Real Estate

Urban Transportation

Hankyu Hanshin Holdings Environment Committee

Report to
the Environmental Committee
Environmental conservation activities

Organization chart

42· Reporting on the progress of environmental
conservation activities once a year, andreviewing activity policies and plans in
response to deliberations by the committee

Compliance withenvironmental laws
and regulations· Examining the status of compliance withenvironmental 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 the Group newsletter

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Measures by Group companies
Under the Group’s common Basic Environmental Philosophy and Basic Environmental Policies, each Group company establishes its
philosophy and policies according to its business characteristics as necessary and implements environmental preservation activities
on a core business basis. In addition, each core business formulates an action plan according to the priority issues toward Sustainable
Management. Progress in the implementation of the action plan is monitored every fiscal year toward further advancement inenvironmental conservation activities.
To appropriately monitor the environmental impact of the entire Group’s business activities, the Group has introduced
an environmental impact data management system and collects and compiles, in an integrated manner, data on the environmental
impact of the business activities of the Group’s consolidated and non-consolidated subsidiaries (excluding some).

■ Environmental protection through financial support for NPOs
The Hankyu Hanshin Dreams and Communities of the Future Fund program, one of the Group social contribution initiatives, is aimed
at providing NPOs and other organizations engaged in environmental conservation with financial support to achieve environmental
protection in collaboration with civic groups. The Group has continued to dialogue regularly with the civic groups that it has supported
about activities aimed at achieving environmental conservation.

TargetIndicator

Rate of CO2 emissions cuts
(compared to FY2014)

FY2021 Results

FY2031 Targets

Hankyu Hanshin Holdings and its
subsidiaries’ Japanese worksites

40.0%

26%*

Energy consumption in the railway operationsof Hankyu Corporation andHanshin Electric railway

41.5%

40%

Range

* We are preparing to adjust our rate of CO2 emissions cuts targets in line with Japanese government’s goal to go carbon neutral by 2050.

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.
| DATA | Number and percentage of companies (among Hankyu Hanshin Holdings and its consolidated subsidiaries) that havebusiness sites certified as covered by recognized environmental management systems:
12 companies accounting for 12.5% (FY2021)

43

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ ISO 14001 standard for environmental management systems
ISO14001 is an international standard for environmental management systems.

◆ Certified companies and business sites● Hankyu Corporation (Shojaku factory)● Itec Hankyu Hanshin Co., Ltd.
● Hankyu Hanshin Express Co., Ltd. (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
The Green Management Certification program is run by the Foundation for Promoting Personal Mobility and Ecological Transportation,
an extra-governmental organization under the Japanese Ministry of Land, Infrastructure, Transport and Tourism. The program aims topromote environmental conservation by certifying eligible transportation-related companies, including truck freight, bus, taxi, shipping,
port transportation, and warehouse companies.

◆ Certified companies and business sites● Hankyu Bus Co., Ltd. (Osaka, Itami, Ishibashi, Fushiodai, Nishinomiya, and Ashiyahama branches)● Hankyu Kanko Bus Co., Ltd.
● Osaka Airport Transport Co., Ltd. (Airport and Airport-South branches)* Bus and taxi companies were added to the scope of the Green Management Certification program in April 2004. Hankyu Bus was certified under this programin September 2005, a first for a route-bus operator in the Kansai region.

■ Kyoto Environmental Management System Standard (KES)The Kyoto Environmental Management System Standard (KES) is run by the KES Environmental Organization, a Japanese nonprofit.
The standard is designed to encourage all enterprises to participate in environmental improvement activities.

◆ Certified companies and business sites● Hanshin Hotel Systems Co., Ltd. (The Ritz-Carlton, Osaka): Obtained Step 1 certification

44

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE(2) Climate Change

Approach
The Hankyu Hanshin Holdings Group has long devoted Group-wide efforts to reducing energy consumption and CO2 emissions fromthe perspective of mitigating climate change. The Group has also defined contributing to a low-carbon, circular economy 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 growth of our business activities.
We will continue to comply with various laws, regulations, ordinances, etc. and monitor the environmental impact of our businessactivities, including CO2 emissions, based on our Basic Environmental Policies. We will also save energy in our railway operations andother businesses and aim for more eco-friendly buildings (green buildings) in the Real Estate Business. Furthermore, we will respond
appropriately to both risks and opportunities entailed by climate change and reduce the environmental impact of our businessactivities, including CO2 emissions, to play a part in realizing a low-carbon society.

Management / Organization
Refer to “Management / Organization” in “Environment: (1) Environmental Management” (p. 42).

TargetIndicator

Rate of CO2 emissions cuts
(compared to FY2014)

FY2021 Results

FY2031 Targets

Hankyu Hanshin Holdings and its
subsidiaries’ Japanese worksites

40.0%

26%*

Energy consumption in the railway operationsof Hankyu Corporation andHanshin Electric railway

41.5%

40%

Range

* We are preparing to adjust our rate of CO2 emissions cuts targets in line with Japanese government’s goal to go carbon neutral by 2050.

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. An example of the results of these efforts is Hankyu Corporation’s collaboration with
the Ministry of the Environment in the COOL CHOICE project. As part of the project, in 2016, Hankyu Corporation ran a campaign toencourage the use of eco-friendly transportation means, such as railways and rental bicycles, using posters in train cars, large public
screens, and stores. 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 the main aims of the project is to reduce theenvironmental impact of mobility by facilitating the use of public transportation and alleviating car traffic congestion.
Moreover, the Hankyu Hanshin Holdings Group participates in the following initiatives to mitigate climate change.

45

SUSTAINABILITY IN GENERAL

Initiatives

SOCIALENVIRONMENTGOVERNANCE

Group’s involvement

Overview· Task Force on Climate-related
Financial Disclosures (TCFD)· TCFD Consortium· Endorsed the TCFD recommendationsin May 2021, listed TCFD Supporter· Holds TCFD Consortium membership

The TCFD was created by the Financial Stability Board at therequest of the G20 member states. The TCFD recommends thatcompanies 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· Global Compact Network Japan(GCNJ)· Endorsed the UN Global Compact in
May 2021, listed United Nations
Global Compact Supporter· Holds GCNJ membership

The United Nations Global Compact was announced at theWorld Economic Forum held in 1999, the UNGC is a pact thatenshrines behavioral principles for businesses around the world.
It consists of ten principles in the areas of human rights, labor, theenvironment, and anti-corruption.

Participates as a vice chair

The Kansai Economic Federation (Kankeiren) is an economic
organization of companies whose head offices or other bases arelocated 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 governmentand relevant local governments. It also promotes ESG initiatives
and initiatives to achieve the SDGs, including those to mitigate
climate change and to achieve carbon 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 Group CEO is fully committed to the
Kansai Economic Federation as one of its vice chairs.

Kansai Economic Federation(public interest incorporated association)■ Group’s initiatives toward a low-carbon society◆ Actions to cut greenhouse gas (CO2) emissions and improve energy efficiency (promote energy saving)
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 accountfor a major part of our energy consumption. Those measures include introducing energy-efﬁcient equipment and promoting energy
conservation activities.

◆ Initiatives to establish transportation networks with low impacts on the environment
CO2 emissions per unit transportation capacity from railway transportation are just 13% of those from transportation by private cars.
Railways are thus a transportation means with low environmental impacts. Enhanced convenience of public transportation willcontribute to less use of private cars, which is expected to result in reduction of CO2 emissions from the transportation sector inJapan. 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 is engaged in community development based on its railway operations and operates
its Real Estate, Entertainment, and Hotel Businesses as part of line-side area development. Many sites for those businesses (includingcommercial 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.

◆ Urban Transportation● Actions to lower energy consumption entailed by railway operations
Railway operations account for about 40% of the Hankyu Hanshin Holdings Group’s energy consumption. Therefore, the Group
places high priority on lowering energy consumption entailed by its railway operations and has set targets for rate of CO2 emissions
cuts from Energy consumption in the railway operations of Hankyu Corporation and Hanshin Electric Railway. In addition, both railway
companies devote efforts to shifting to more energy-efficient rolling stock while discussing the development of highly energy-efficienttrains with train suppliers.
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% fromconventional 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 an electricity consumption
reduction of about 60% from existing rolling stock for local train use.

46

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE● 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 andhave a longer life, contributing to waste reduction. (Hankyu Corporation: 37 out of a total of 87 stations; Hanshin Electric Railway:
35 out of a total of 49 stations; both figures as of March 2021)
In addition, Settsu-shi Station, opened on the Hankyu Kyoto Line in 2010, is Japan’s first net-zero CO2 emissions station(or carbon 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 from thestation are completely offset by CO2 emissions reductions through forest conservation activities.

◆ Real Estate● Environment-friendly features adopted in the Geo condominium series
All of the Geo condominiums*1 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 some Geo
condominiums.*2*1 May not be applicable to condominiums jointly developed with other companies.
*2 The energy creation feature is selectively added only to some condominiums exemplified below according to their scale and grade.
· Geo Tower Takatsuki Muse Front (completed in June 2012): Equipped with a solar heat system and a power generation heat discharging system to cool and heatcommon areas· Geo Ashiya Higashiyamacho (completed February 2013): Equipped with a gas water heating system using solar heat and a cogeneration system to use power
generation heat for hot water supply to each household· Geo Tezukayama 1-chome (completed in March 2013): Every household equipped with a solar power generation system to generate electricity for its use◆ Aim for more eco-friendly buildings (green buildings)
To provide many more environment-friendly buildings, the Hankyu Hanshin Holdings Group has striven to obtain environment- andsociety-friendliness certification for its buildings under DBJ Green Building certification, which is organized and run by theDevelopment Bank of Japan in collaboration with the Japan Real Estate Institute, which is in charge of assessment and certification
granting, or Osaka City’s Comprehensive Assessment System for Built Environment Efficiency (CASBEE Osaka).

◆ DBJ Green Building certification● Certified as 5-star DBJ Green Buildings that meet Japan’s highest standards for environmental and social consideration● Umeda 1-1 Project (Osaka Umeda Twin Towers South scheduled to be entirely completed in the spring of 2022) certified as a DBJ
Green Building plan
(Certification recipients: Hanshin Electric Railway and Hankyu Corporation)
To make the building eco-friendly, energy saving and energy creation measures have been adopted, such as installing LED lights andsolar power generation systems for all private areas. The building is provided with emergency power generators, which can operate
for 72 hours in the event of an emergency, as well as gas cogeneration equipment and a structural health monitoring system, toenhance its disaster preparedness and support thebusiness continuity of tenants. Moreover, the building
is equipped with a large multipurpose conferencezone (4,000 m2), which is, along with the rooftop
plaza and pedestrian deck, planned to be used as aspace for temporary evacuation or temporary stay forpeople unable to go home in the event of a disaster.
Phase 1 of the project was completed in April 2018,
and full completion is scheduled in spring 2022.

● Hankyu Nishinomiya Gardens(Certification recipients: Hankyu Corporation and Hankyu Hanshin REIT, Inc.)
This building has abundant rooftop greenery and green walls, such as Sky Garden, to alleviate the heat island effect and utilizes naturalenergy with solar panels and a sprinkling system using rainwater. LED lighting and a design to take in much natural light are also
employed to make the building energy-efficient.

47

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE● Certified as 4-star DBJ Green Building with exceptionally high environmental and social awareness● HEP FIVE (Certification recipients: Hankyu Hanshin Properties and Hankyu Hanshin REIT, Inc.)
This building has a solar power generation system and uses clean natural energy to illuminate its Ferris wheel. The main entrance isequipped with mist spraying equipment to ease the urban heat island effect in summer.

● Certified as 3-star DBJ Green Building with very high environmental and social awareness● Kobe Sannomiya Hankyu Building (Certification recipient: Hankyu Corporation)
The building is equipped with Low-E glass and LED interior lights to save energy
and resources. It is also designed to be convenient and comfortable for users,with commercial zones on its lower stories, good access provided by its directconnection to multiple stations, and an observatory space open to the public,
including office workers in the building. The building also has disastermanagement features, including emergency power generators, which can supply
electricity of 15 VA/m2 to private areas for 72 hours, and flood barriers installed inconsideration of the risks of being flooded with seawater.

◆ CASBEE Osaka (Osaka’s Comprehensive Assessment System for Built Environment Efficiency)● S rank (top in the ranking)● Umeda Hankyu BuildingThis building is designed for energy efficiency, with features such as sensor-based lighting systems that
can automatically adjust the level of light and high-efficiency heat source devices for air-conditioning, as
well as inverter-based control systems for air-conditioners, pumps, and elevators.

◆ Other environment conscious buildings● NU chayamachi Plus
The building features green walls above the main entrance of its commercial section and on the terraces of restaurants on the third
floor. The terrace has also rooftop greenery, creating a space where visitors can enjoy the greenery while doing shopping or dining.
The transpiration effect of the greenery helps reduce heat inside the building, contributing to mitigating the heat island effect. Moreover,
LED lights are used for most lighting, including indirect lighting, in the common areas of the building to help cut CO2 emissions.

● HERBIS OSAKA and HERBIS ENT
The building complex is equipped with one of Japan’s largest (at the time of installation) single-building ice storage air conditioning
systems, which efficiently uses nighttime power. The two buildings also have other environment-friendly, energy-efficient systems,
including refrigerant natural-circulation-type air conditioning, which requires no power to circulate refrigerant, and a cogeneration
system, which enables effective use of energy.

◆ Use more 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 ourGroup premises. Our major premises equipped with solar power generators are as follows. (The figures in parentheses are annual
power generation output in FY2021.)● Urban Transportation: Hanshin Oishi Station (122,156 kWh); Hankyu Settsu-shi Station (51,442 kWh)
● Real Estate: HEP FIVE (18,000 kWh)
● Entertainment: Hanshin Koshien Stadium (160,886 kWh)48

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Utilizing carbon offset credits
The Hankyu Hanshin Holdings Group has collaborated with Osaka Gas Co., Ltd. in using the J-Credit Scheme*1 for carbon offsetting.
Specifically, since FY2015, Hankyu Corporation has held special Takarazuka Grand Theater Carbon Offset Performances*2 and offset
CO2 emitted during the performance period using the J-Credit Scheme. Meanwhile, in FY2022, Hanshin Electric Railway and theHanshin Tigers launched a new initiative to use the same scheme to offset CO2 emitted during the Ultra Summer series of baseballgames (six games in FY2022) held by the Hanshin Tigers at the Hanshin Koshien Stadium.
*1 The J-Credit Scheme: A scheme whereby the Japanese government certifies greenhouse gas (such as CO2) emissions reduced or removed by sinks throughefforts to introduce energy-saving devices and manage forests as credit*2 In FY2021, the performances were not held due to the COVID-19 pandemic.

■ 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 andbecome 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, Hankyu Hanshin Holdings, Inc. conducts risk surveys with Group companies every year to help
them identify their key risks. In the Urban Transportation Business, in response to the recent situation where other companies in thesame industry have been affected by floods caused by super typhoons, Hankyu Corporation and Hanshin Electric Railway designatedresponse to natural disasters associated with climate change as their priority risk management issue for FY2020, identified specificrisks, and devised necessary countermeasures. Subsequently, in FY2021, they devised specific measures to be adopted in the eventof a heavy downpour, including how to avoid damage to trains and how to evacuate employees, as well as standards for judgments.
In anticipation of typhoons as well, they reviewed their policy on the planned suspension of transportation services, worked out
measures for equipment necessary for train services, and drew a plan to repair bridges. These measures have been incorporated ininvestment plans and are being implemented successively.

◆ Addressing transition risks
We follow the TCFD scheme to monitor transition risks created by changes due to the transition to a low-carbon society, includingchanges in policies, laws, and regulations, as well as technological innovation and changes in the markets. We also conform to thesame scheme in devising measures to address transition risks. For details, refer to the Integrated Report. WEB

DATA
In fiscal 2021, CO2 emissions were down 15% year on year to 369,646 t-CO2, due to the significant stagnation of socioeconomic
activities following the state of emergency declared twice amid the COVID-19 pandemic. Energy consumption on a crude oilconversion basis decreased 11% year on year to 252,828 kl.

FY2021 Group-wide segment-specific CO2 emissions

HotelsCO2 emissions volumes and energy consumption on crude oil-conversion basis

Urban Transportation

66.7％

Real Estate

19.7％

Entertainment

2.5％

Information and
0.5％
Communication Technology

Real Estate
Urban Transportation

Travel0.4％(t-CO2)(kl)

800,000

800,000

600,000

8.5％

Other

1.1％

595,711600,000

516,372
434,429400,000
200,000

International Transportation 0.5％
Hotels612,2330400,000
200,000

302,612296,116

288,732

282,735

252,828

2017

2018

2019

2020

2021 (FY)

Urban Transportation

Real EstateEntertainment

Information and Communication Technology* The figures pertain to 84 Hankyu Hanshin Holdings subsidiaries inJapan; some businesses, for which it is difficult to calculate energy
consumption, are excluded.

369,646

International Transportation

HotelsTravelOther

Energy consumption on crude oil-conversion basis (right axis)

49

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Results (Segment-Specific)
Business sites in Japan*1
Indicator

CO2 emissions(SCOPE1&2)

Energyconsumption
on crudeoil-conversion
basis

Unit

Versus FY2014(Reference)
FY2014FY2020

FY2021

369,649− 40.0%616,365

1,082

1,005

283,728

246,640− 38.4%400,619

98,47681,557

72,954− 39.4%120,41785

80

13,581

11,8459,342− 39.5%

15,434

2,152

1,895

1,925

− 39.2%

3,169

FY2019FY2020

FY2021

Total

516,372

434,429

Urban Transportation

339,155

Real EstateEntertainment
Information andCommunication Technology t-CO2

Business sites overseas*1

Travel

2,185

2,029

1,556

− 25.9%

2,099

13

10

International
Transportation

2,049

1,933

1,856

− 20.5%

2,335

983

916

Hotels54,07247,321

31,380− 51.9%65,274

Other

4,701

4,121

3,993

− 43.1%

7,018
538

485

56

52

Total

288,732

282,735

252,828− 20.1%

316,491

Urban Transportation

185,543

181,390

166,856− 16.9%200,728

Real Estate

57,87456,962

52,611− 18.0%64,133Entertainment

7,977

8,045

6,578

− 20.7%

8,299

1,273

1,335

1,428

− 20.0%

1,786

Information andCommunication Technology(SCOPE1&2)

kl

Travel

1,170

1,159

935

− 17.8%

1,137

10

7

International
Transportation

1,147

1,049

1,023

− 17.6%

1,241

472

427

Hotels31,15930,185

20,794− 41.5%35,541

Other

2,588

2,610

2,604

− 28.2%

3,626

Results (total)
Business sites in Japan*1
Indicator

SCOPE1&2

Greenhouse gas(GHG) emissions *2·3

Business sites overseas*1

Unit

SCOPE1t-CO2

SCOPE2

Energy consumption on
crude oil-conversion basis (Scope 1&2)

kl

FY2019FY2020

FY2021

FY2020

FY2021

516,372

434,429

369,646

1,082

1,005

132,635

129,514104,660

144

104

383,737

304,915264,986

938

902

288,732

282,735

252,828538

485*1: “Business sites in Japan” denotes Hankyu Hanshin Holdings’ subsidiaries based in Japan, while “business sites overseas” denotes the Company’s local
subsidiaries outside Japan.
However, some business sites on which data are difficult to obtain are excluded. The figures for FY2021 pertain to 84 subsidiaries in Japan and 11 subsidiaries
overseas.
*2: 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.
*3: GHGs other than CO2 account for only a very small part of the total GHG emissions. (For example, the amount of hydrofluorocarbons [HFCs] is only 0.5% ofthat of CO2 on our business activities.) Therefore, for Scope 2 emissions, we equate CO2 emissions with GHG emissions.

50

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 Policies, the Group not only complies with various laws and regulations but also
monitors the environmental impact of its business activities, including environmental pollution and waste, and takes action to reduce
it. Furthermore, the Group is also committed to utilizing resources effectively mainly by promoting recycling.

Management / Organization
Refer to “Management / Organization” in “Environment: (1) Environmental Management” (p. 42).

Initiatives■ Reducing environmental pollution
The Hankyu Hanshin Holdings Group has set a process target of reducing environmental pollution caused by its business activities asmuch as possible by adopting 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 and adopt
soil purification measures when we acquire and develop land.

◆ Using no more plastic straws in the Hotel Business
Hankyu Hanshin Hotels has ceased using plastic straws in the restaurants and banquet halls of its
directly operated hotels and has replaced them with straws made from a resin derived from corn andother plant matter. Its directly operated restaurants offer straws only to customers who need them.
Plant-based plastics, like paper, generate little energy upon incineration and emit no combustion
gases containing hazardous substances.

■ Producing less waste and recycling more
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 collaboration with other companies and tenants in
its commercial facilities.

51

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Plastic recycling in collaboration with other companies at the Hanshin Koshien Stadium
We recycle polyester drink containers used to serve beer and other beverages at the
Hanshin Koshien Stadium through external collaboration. We have introduced a resource
circulation mechanism whereby used polyester drink containers are collected with thehelp of customers and recycled into new polyester fiber with a technology of Teijin
Frontier Co., Ltd., and the recycled material is used to produce plastic beer cup holders
and other gift items, which the Hanshin Koshien Stadium offers customers. In FY2020,
before the spread of the COVID-19 pandemic, we collected 4.9 tons of used drink
containers, which were recycled into 11,000 cup holders provided to customers.

◆ 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 to minimize waste andconsequently reducing the total amount of waste.

◆ Recycling food waste in collaboration with other companies in the Hotel Business
Hankyu Hanshin Hotels has introduced a resource circulation mechanism whereby recyclable waste is appropriately separated fromkitchen waste from its hotels and treated and transported in collaboration with Nagase Chikusan Co., Ltd. and Taisei Industries Co.,
Ltd. to be utilized as pig feed or compost provided to these companies’ pig farms or partner farmers. We are thus committed to
producing less waste and recycling more.

◆ 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 cargofrom Japan to Hong Kong since FY2017. The company has established a necessary system through repeated verifications withairlines, local subsidiaries, and overseas agencies, and it has built a safer, more reliable, and faster transportation process, with areduction in consumption of paper (equivalent to 500 A4-size sheets of paper per cargo). As of July 2021, this initiative had been
expanded to 78 destinations in 25 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

52

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

DATA
Waste
FY2020

FY2021(25,749)

55,085(8,570)19,927

Non-recycled(17,179)

35,158Generation

(18)

172

FY2020

FY2021

Generation(678)

69,602

Recycled(268)

67,215

(410)

2,387

Indicator

Unit
Generation

Waste

Recycled

Hazardous waste*1 includedt

Results of waste reduction measures
Indicator

Construction waste*2

Unit

Non-recycledtEquipment regulated by recycling laws

Disposed of(1)

4

Disused items sold

Disposed of

(21)

696

FY2020

FY2021(6,450)

9,340

(650)

3,080

(5,800)

6,260

t

(104)

81

Unit

FY2020

FY2021

t

(457)

618

Results concerning chemicals
Indicator

Unit
Generation

Volatile organic compounds(VOCs)*3

kg

Emissions
Transferred out

PCB-containing waste*4

StoredResults of raw materials
Indicator
Office paper

Used■ The data above covers Hankyu Hanshin Holdings’ subsidiaries in Japan. However, some business sites on which data are difficult to obtain are excluded.
The figures for FY2021 pertain to 84 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*3 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 Amount of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof*4 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

53

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 issueof “thriving communities” toward Sustainable Management.
Additionally, in the Hankyu Hanshin Dreams and Communities of the Future Project, which is a social contribution initiative of theGroup, we have defined sustainable community development as a priority area and promoted activities aimed at contributing to thepreservation of biodiversity and the natural environment.
In the Group’s business activities and social contribution initiatives, we will continue our efforts to protect biodiversity incooperation 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. 42).

Initiatives■ Consideration for biodiversity
We pay due consideration to biodiversity and implement the following measures to reduce the environmental impact of the Group’sbusiness 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
Holdings Group confirms whether any natural features, including trees and forests, that need protection and conservation exist on thedevelopment site, and it adopts measures to protect and conserve such natural features as needed. On the development site, wearrange green areas with plants 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 in compliance 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. 51).

54

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Protection of biodiversity
The Hankyu Hanshin Holdings Group contributes to protecting biodiversity by implementing the following measures in the areas where
it operates and in the local communities.

◆ Creating favorable environments for diverse organisms through urban real estate development
The building of NU chayamachi Plus features green walls above the main entrance and on the terraces of restaurants on the third floor.
The rooftop terrace is also greened, providing customers with a space to enjoy natural features. GRAND FRONT OSAKA, in which theGroup participated as a member of the developers, has a garden of approximately 4,000 m2 to the north of the North Building androoftop gardens, which total over 10,000 m2, on the roofs of the 9th floors of both the South and North Buildings. These gardens aredesigned for harmony with the environment. The entire facility is surrounded with a network of gingko trees, zelkova trees, andwaterscapes, offering a space for store customers, office workers, residents, and hotel guests to enjoy natural features and seasonalchanges. 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 45,000 m2) on thedevelopment 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 tocreate an urban environment that will be friendly not only to plants but also to birds that use the surrounding area as a destination andother organisms that will inhabit the urban park.

◆ Managing the Rokko Alpine Botanical Garden
The Rokko Alpine Botanical Garden has around 1,500 varieties of wild plants, including alpine andcold-region plants from around the world, plants native to Rokko, and endangered species. In an
around 50,000 m2 area of the garden, these plants are cultivated in their near-natural conditions. Withdaily guided flower tours, seasonal exhibitions, and nature experience programs, the garden helps
raise public awareness of the importance of preserving nature. The garden has been a member of theJapan 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
Hepatica nobilis var. pubescens
endangered plant species outside their habitats.

variety of liverwort, an endangered
species in Hyogo Prefecture◆ Creating and managing green areas
Hanshin Gardenings promotes urban greening through its business activities, including constructing
parks and gardens and managing green areas at commercial and residential facilities, such as
condominiums. The company provides local communities with opportunities to enjoy natural featuresin various settings at large parks and facilities, including Kobe Nunobiki Herb Gardens, Ikeda Castle
Ruins Park, and Amagasaki Castle, while implementing initiatives to protect biodiversity at
Amagasaki-no-mori Central Green Park.

◆ Preserving a satoyama area
● The service area of the Nose Electric Railway includes the Kurokawa area (Kawanishi City, Hyogo Prefecture), which is known as“Japan’s most excellent satoyama” (area in harmony between the community and forests). Since 2011, the company has
conducted forest maintenance activities to preserve the natural environment of Mt. Myoken and the satoyama area in collaboration
with government and civic groups. From January to March every year, Nose Electric Railway employees come together to volunteer
to clear the underbrush and thin out the forest. The company thus strives to revitalize and maintain the satoyama area, which ishome to diverse organisms.
● The Hankyu Hanshin Holdings Group is involved in the community development project in Saito as a member of the landowner.
Located in the project area, Saito West Park, with an area of about 52,000 m2, provides people of all generations with a place toenjoy natural features and play, learn, and have a good experience. In the north of the park is Saito Butterfly Garden, which isdesigned to attract butterflies and other insects from natural greens along the nearby river and provide local residents withhands-on experience with nature. In addition, Asagi Satoyama Park, with an area of about 24,000 m2, includes natural forests
preserved out of the pre-development forests in about one-third of its entire area. The park also has promenades in the naturalforests and a wetland biotope.

55

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, the Group
places importance on utilizing water resources effectively to contribute toward a circular economy, as declared in its policy for thepriority issue of “environmental protection” toward Sustainable Management. In addition, the Group’s Basic Environmental Policies,
formulated in 2010, include the policy of monitoring the environmental impact of its business activities and taking action to reduce it.
The Group is committed to reducing water use as much as possible by saving water and reusing wastewater mainly in the Real
Estate and Hotel Businesses.
* 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. 42).

Initiatives◆ Encouraging reuse of bed and bath linens to save washing water and reduce wastewater
Hankyu Hanshin Hotels encourages guests staying multiple nights at its 22 directly operated
hotels* (9 in the Tokyo metropolitan area; 12 in the Kansai region; 1 in another region) to use
the same bed and bath linens instead of having them replaced every day, with the aim of reducing
the volume of washing water and wastewater.
* Dai-ichi Hotel Tokyo, Dai-ichi Hotel Annex, remm plus Ginza, remm Tokyo Kyobashi, remm Hibiya, remm Akihabara,
remm Roppongi, Dai-ichi Hotel Tokyo Seafort, Kichijoji Dai-ichi Hotel, Hotel new Hankyu Kyoto, remm Shin-Osaka,
Hotel Hankyu International, Hotel new Hankyu Osaka, Hotel new Hankyu Osaka Annex, Osaka Umeda OS Hotel,
Hotel Hankyu Respire Osaka, Hotel Hanshin Osaka, Hotel Hanshin Annex Osaka, Senri Hankyu Hotel Osaka,
Takarazuka Hotel, remm plus Kobe Sannomiya, remm Kagoshima◆ Using wastewater reuse equipment
HERBIS OSAKA and HERBIS ENT have wastewater reuse equipment that purifies kitchen
wastewater from restaurants and uses it as washing water for toilets. In FY2021, HERBIS OSAKA
reused 41,534 m3 of wastewater, and HERBIS ENT 46,589 m3.
HERBIS OSAKA outside◆ Making use of rainwater
Hankyu Settsu-shi Station and Nishiyama-tennozan Station are equipped with tanks beneath platforms to store rainwater collectedon 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.

56

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE◆ Installing water-efficient toilets
Water-efficient toilets have been increasingly installed at stations. For the toilets it renewed in 2015, Hankyu Corporation introduced
urinals of the latest model with the necessary washing water reduced to 0.8 liters per flush. At commercial facilities, office buildings,
the Takarazuka Grand Theater, and the Takarazuka Bow Hall as well, we have replaced toilet equipment with a water-efficient modelor newly installed such a model and achieved a substantial reduction in water use.

◆ An example of business activities in an area with high water risks
In Singapore, a local subsidiary of Hankyu Hanshin Properties (Hankyu Hanshin Properties Singapore) operates a warehousingbusiness. The company monitors the amount of water used by tenants or in common areas and implements drastic water
conservation measures in order to conserve water resources. The company accounts for 0.2% of operating income of the Group’s
Real Estate Business.

DATA
Water withdrawal
Indicator

Unit

Total water withdrawal
Groundwater
By water source*1

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

Rainwater and other sources

FY2020

FY2021(4,190,003)

3,125,040(184,028)

138,357(3,891,045)

2,892,189(114,930)

94,494

Water discharge
Indicator

Unit

FY2020

FY2021

Total water discharge*2

m3(4,190,003)

3,125,040■ The data above covers Hankyu Hanshin Holdings’ subsidiaries in Japan. However, some business sites on which data are difficult to obtain are excluded.
The figures for FY2021 pertain to 84 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 sewerage to external water treatment facilities. No water was discharged into the ocean, surface water, the subsurface,wells, etc.
Since almost all wastewater was discharged through public sewer pipes, the amount of water used, including municipal potable water, groundwater, andrainwater, was equated with the amount of wastewater discharged in the calculation.

57

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Robust GovernanceApproach
The Company aims to remain a company that customers and other stakeholders trust. To this end, the Company is strengthening andincreasing corporate governance by heightening the transparency and soundness of business management, complying with relevantlaws 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) We shall ensure that the Board of Directors performs its roles and duties appropriately and ensure advanced oversight and decision
making.
(5) We shall have constructive dialogue with shareholders with a view to sustaining our growth and enhancing corporate value overthe medium to long term.

Governance Structure■ Overview of Hankyu Hanshin Holdings’ and the Group’s corporate governance structure

Hankyu Hanshin Holdings is a pure holding company, and the conduct of operations is basically the responsibility of Group member
companies. Hankyu Hanshin Holdings’ principal role is supervision and oversight of the entire Group—meaning that 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 by:retaining 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; and having
Group companies obtain approval from or report to Hankyu Hanshin Holdings before taking actions that affect the Group’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 theCompany’s directors and to facilitate coordination with outside directors, the Group has established the Corporate GovernanceCommittee, which comprises standing Audit & Supervisory Committee members, and outside directors who are independent of theCompany, and representative directors. Moreover, to ensure that concrete decisions regarding the amount of director compensation(excluding that of members of the Audit & Supervisory Committee) under the responsibility of the Board of Directors, are made basedon objective and transparent procedures, the Company has established a Compensation Committee comprising the chairman (or thepresident, in the chairman’s absence or unavailability) and outside directors who are independent of the Company.
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 the limits
set out in business plans that the Company has approved.

58

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Corporate governance system
General Meeting of Shareholders

Corporate GovernanceCommittee
Compensation
Committee

Consultation

Appointment/Dismissal

Appointment/Dismissal

Appointment/Dismissal

Directors

Board ofDirectors(excluding Audit & Supervisory
Committee Members)

Audits, etc.

Accounting audit

Audit & Supervisory Committee
Directors

ReportSelection/
Dismissal/
Supervision

Call/Report on execution situation

Accounting
Auditors (CPAs)(Audit & Supervisory
Committee Members)

Staff of Audit &Supervisory
Committee

ReportRepresentative Director

Group
Auditing Division

ReportCall

Participate(as observer)Group Management Committee

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 specificaction and other items relating to corporate governance, please refer to the Corporate Governance Report WEB in the sustainability section of the Group’s
website.
Independent director

Board of Directors (11 members)

Corporate Governance Committee (9 members)

Chairman of
the Board

Kazuo Sumi

TakehiroSugiyama

Masao Shin

Yoshishige
Shimatani

Naoya Araki

Noriyuki
Inoue(Manager)

Noriko Endo Yuki Tsuru(Academic) (Attorney at
law)

Kazuo
Sumi

TakehiroSugiyama

Audit & Supervisory Committee (3 members)

Masao
Shin

Masayoshi
Ishibashi

Noriyuki
Inoue

Noriko
Endo

Yuki
Tsuru

Junzo
Ishii

Michiari
Komiyama

Compensation Committee (6 members)

Chair

Masayoshi Ishibashi

Junzo Ishii(Academic)

Kazuo
Sumi

Michiari Komiyama(Attorney at law)

Noriyuki
Inoue

NorikoEndo

Recent efforts to strengthen corporate governance

Yuki
Tsuru

· Charged with ensuring transparency of corporate director appointments and dismissals and facilitating
coordination with outside officers. Committee meets twice a year, and comprises the representative directors,
standing auditors (standing Audit & Supervisory Committee members since June 2020), and outside officers.

Evaluation of the Board of Directors’ effectiveness
FY2017· A survey was carried out to assess the management by the Board of Directors, including the sufficiency of its
explanations and the appropriateness of its handling of its proceedings. (Starting in fiscal 2021, interviews arepreceded by questionnaires for more effective assessment.)

FY2018Abolition of senior advisors system· Charged with ensuring that the objectivity and transparency of procedures relating to decisions regarding
board members’ remuneration, including amounts. Committee meets once a year, and comprises thechairman and outside officers.

Review of compensation system
FY2020

5/18
27.8%

5/19
26.3%

5/14
35.7%

Abolition of anti-takeover measures and Compensation Committee established
FY2019· Stock-based, performance-linked stock compensation system (paid into trust) introduced for the chairman
and president in order to further motivate them to enhance the Company’s corporate value and businessperformance, as well as to enhance shareholder value.

5/14
35.7%

6/14
42.9%

Change in legal status regarding audit function
FY2021Michiari
Komiyama

Percentage of independent directors

Corporate Governance Committee established
FY2016

Junzo
Ishii

· Became a “Company with an Audit & Supervisory Committee” as part of efforts to bolster the Board of
Directors’ oversight function and enhance corporate governance.
· Upon that change, the number of company officers was reduced to 11 and the number of independent
directors was made five (including two women) in order to increase the proportion of independent officers.

59

5/11
45.5%

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

Initiatives■ More transparent management and effective governance◆ Management organization for decision making, execution, and oversight of matters related to company management
Board of Directors and Directors
The Board of Directors enhances governance of the entire Group and oversight of respective companies by: retaining the authority toapprove decisions regarding the Company and the Group’s management policies and strategies, and the medium-term or annual
management plans of all core businesses; and requiring timely reporting by operating companies about Group companies’ significant
investments.
In order to reinforce governance and oversight capabilities and boost decision-making quality, the Board of Directors is
composed of 11 directors, five of whom are independent directors, including two women. Moreover, the 11 directors include all threemembers 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: Criteria for appointment of directors are stipulated in the Company’s articles of incorporation as follows:(1) Directors shall be appointed at shareholders’ meetings into two distinct categories: Audit & Supervisory Committee members and others.
(2) Resolutions on the appointment of directors shall be passed with a majority of voting rights held by shareholders in attendance, provided that those inattendance constitute no less than one third of all shareholders with voting rights.
(3) Resolutions on the appointment of directors shall not be conducted by cumulative vote.

Audit & Supervisory Committee and its members
Of the Audit & Supervisory Committee’s three members, two are independent directors. By selecting committee members who are
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 oversightfunctions, for example by involving them in the Group Management Committee and other meetings within the Group.

Membership of the Board of Directors, etc.
Maximum number of directors
stipulated in articles of incorporation

No upper limit stipulated.

Term of office stipulated in articles
of incorporation

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

Chairman of the board

Chairman

Number of directors

11

Appointment of outside directors

Appointed

Number of outside directors

5

Among outside directors, numberof independent directors

5

Membership of the Audit & Supervisory Committee
Audit & Supervisory Committee
Total committee members

3

Full-time committee members

1

Internal directors

1

Outside directors

2

Committee chairperson

The internal director

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

Staff assigned exclusively
to this position

Corporate Governance Committee (voluntarily established committee equivalent to a nominating committee)
To ensure transparency in the appointment and dismissal of directors and coordination with outside officers, a Corporate GovernanceCommittee has been established, made up of three representative directors, one full-time Audit & Supervisory Committee member,and five independent directors.
In addition to selecting director candidates and providing advice relating to the dismissal of directors (excluding Audit &Supervisory Committee members), the Corporate Governance Committee serves as a forum to provide information in such areas as
the Group’s finances to outside directors.

Compensation Committee (voluntarily established)
To ensure that concrete decisions regarding the amount of compensation paid to directors (excluding Audit & Supervisory Committee
members), which are the responsibility of the Board of Directors, are made based on objective and transparent procedures, theCompany has established a Compensation Committee comprising the chairman and five independent directors.
The committee provides advice relating to the Company’s compensation system and its content.

60

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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 todeliberate and decide on the approval of resolutions of the Board of Directors; the Group’s management strategies and businessplans; Group companies’ significant investments; and significant Group management matters.

◆ Ensuring effectiveness of the Board of Directors and Audit & Supervisory Committee
Attendance at meetings of the Board of Directors and Audit & Supervisory Committee, and Board of Company Auditors
by outside directors (FY2021)
Attendance(times attended/times held)

Name

Position

Noriyuki Inoue

Director

10/10

—

—

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

Noriko Endo

Director

10/10

—

—

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

Yuki Tsuru

Director

8/8

—

—

Instructive comments from a compliance perspective.

Junzo Ishii

Director and Audit& Supervisory
Committee member

10/10

9/9

2/2

Instructive comments from a management studies expert’s perspective.

Michiari
Komiyama

Director and Audit& Supervisory
Committee member

10/10

9/9

2/2

Instructive comments from a compliance perspective.

Statements at Board of Directors meetings, etc.

Board
Audit & Supervisory
Board ofof Directors
Committee CompanyAuditors*On June 17, 2020, with the conclusion of the 182nd General Meeting of Shareholders, we became a company with an audit and supervisory committee. The
chart above details attendance for both the pre-transition Board of Corporate Auditors and the post-transition Audit & Supervisory Committee.
*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 the Boardof 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 otheractivities 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, items, and results of an evaluation of the effectiveness of the Board of Directors conducted in fiscal
2021 is as shown below.

1. Evaluation process
In fiscal 2021, the board’s effectiveness was evaluated by conducting a questionnaire survey regarding the adequacy of the board’s
composition and operations, followed by interviews with board members based on the questionnaire’s results.

2. Evaluation items
As a result of the questionnaire and interviews, the board’s composition and operations in fiscal 2021 were deemed to be adequate,
and the evaluation concluded that the board was effective and generally administered appropriately.
Conversely, it was suggested that the information provided in advance about matters tabled at board meetings could be more
extensive.

◆ Reasons for adoption of current corporate governance system
As described in Governance Structure (p.58), Hankyu Hanshin Holdings is a pure holding company, and the conduct of operations isbasically the responsibility of Group member companies. Hankyu Hanshin Holdings’ principal role is supervision and oversight of theentire Group—meaning that these functions are separate from the conduct of Group businesses.
In addition to this, the Company shifted to an Audit & Supervisory Committee set-up in order to reinforce that corporate
governance structure and further enhance corporate value. The shift was approved by a resolution at the 182nd annual General
Meeting of Shareholders on June 17, 2020.

61

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Compensation system◆ Compensation of directors
PolicyThe 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: basic monetary compensation paid according to position and stock-based, performance-linked stockcompensation paid in trust to individuals in the posts of chairman and president.
*The Group’s stock-based, performance-linked stock compensation system includes a malus clause, under which rights to receive stock-based compensation
may be withheld from any person eligible for this system who commits an egregious breach of duty prior to finalization of such rights, or if any other grounds forwithholding such rights arise.
*The payment of retirement benefits to directors was discontinued in April 2004 to heighten transparency of the compensation system.

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 established aCompensation Committee comprising the chairman (or the president, in the chairman’s absence or unavailability) and five independent
directors. The Board of Directors makes compensation decisions after consultation with the Compensation Committee concerning thecompensation system and content of compensation.

■ Other efforts to strengthen governancePosition regarding strategic shareholdings

Strategic shareholdings held (Taking FY2016 final levels as 100)

100
The Company acquires shares held for strategic reasons with aview to building relationships of trust with various stakeholders and80
enhancing corporate value over the medium to long term by60
maintaining business relationships or strengthening collaborations
40
with partner companies and maintaining relationships with regional
20
communities.
0
Individual strategic shareholdings are reviewed for(end of
2016
2017
2018
2019
2020
2021
appropriateness each year by the Board of Directors, taking into
fiscal year)
account economic rationales such as dividend income. Where agiven holding is deemed no longer appropriate, it is sold progressively, with comprehensive consideration of factors such as theCompany’s financial circumstances and the influence of stock sales on market conditions.

Abolition of anti-takeover measures
After considering recent trends related to such measures and changes in the business environment, the Company has decided toabolish anti-takeover measures that have already been set to expire at the conclusion of the General Meeting of Shareholders held in
June 2018.

62

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Internal control system◆ Basic approach to internal control system and the progress of system development
Recognizing the importance of ensuring that the business operations of the Company are conducted in an appropriate manner, we
believe it is vital to have an internal control system for the entire Group, and to revise it when deemed necessary.
In particular, the Group has a robust structure for compliance-focused management, including a dedicated compliance office, aCompliance Manual, and compliance training, all aimed at raising awareness of compliance issues throughout the entire Group.
As part of our whistleblower system, we have a Corporate Ethics Consultation Desk for quickly bringing to our attention any
incident that may threaten our compliance-focused management. If a serious incident occurs, we promptly set up a risk management
committee to determine how to respond.
We also have a Group Auditing Division, which has its own dedicated staff and operates under the direct control of the president.
This division establishes regulations and conducts internal audits of Hankyu Hanshin Holdings and its Group companies. Specifically,each of the Group’s businesses audits compliance with laws and internal regulations—and other priority themes to be tackled—aswell as risks peculiar to their own businesses, based on both the Group Management Philosophy (particularly the Principles) andgroupwide annual auditing policies and plans.
To create a structure for ensuring appropriate operations, the Group vests auditors of each Group company with authority not
only in accounting but also in operational audits, and at the same time provides guidance to smaller Group companies on Board of
Directors’ resolutions for the creation of an internal control system.
With regard to systems for “Evaluation and Auditing of Internal Controls over Financial Reports,” a section of the Financial
Instruments and Exchange Act, the Company responds appropriately by carrying out management evaluations on a consolidated
basis, in line with in-house rules.

◆ Basic approach to eliminating anti-social forces and the progress of its development
We have a clear policy of thorough rejection of any involvement with organized crime groups, companies connected with organizedcrime groups, sokaiya racketeers, or other “antisocial forces” that threaten the order and safety of civic society, and firm refusal of their
unreasonable demands.
To ensure full awareness of this policy throughout the entire Group, it is instituted in the Basic Policy on the Establishment of theInternal Control System and clearly set forth in the Hankyu Hanshin Holdings Group Compliance Handbook distributed to all Group
directors and employees.
In practice, we cooperate closely with lawyers, police, and other organizations, and all Hankyu Hanshin Holdings Group
contracts contain clauses banning involvement with antisocial forces.
We also share relevant information between Group companies, maintain high awareness of issues through employee training,and participate proactively in community meetings and activities pertaining to the elimination of organized crime and other antisocial
forces.
If an incident occurs, we take a pan-organization approach in response, bringing in the relevant in-house departments andteaming up with outside experts.

■ Corruption prevention and compliance

We at the Hankyu Hanshin Holdings Group are constantly striving to live up to the stakeholders’ expectations and become a good,
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 compliance groupwide
by pursuing three main initiatives as set forth below.
Moreover, the Board of Directors conducts biennial reviews to monitor compliance with the Code of Conduct, mainly involving
questionnaire surveys of employees.
1. Raising awareness via the Compliance Handbook
The Compliance Handbook makes clear to all the Group’s directors 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.

63

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

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 · Observance of Rules· Proper Treatment of Personal Information · 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 · Social Activities · Respect for Human Rights
Compliance in Workplace· Good Working Environment · Clear Distinction Between Work Spending and Private Spending· Observance of Decision-Making Procedures

08

11

Compliance for the Interest of Business Partners

Compliance for the Interest of Business Partners

Sincere Trading

No lockstep is allowed.

1

1

We have such a huge stock left.

2
You should
accept returns.

No Bribery or
Excessive Entertainment●Competition is severe for the company, but fair competition among businesses results inproviding benefits for customers and the entire society. Therefore, no act that
unreasonably interferes with competition to obtain benefits only for the company isallowed.

Do not exploit your strong position.
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

Oh, well. Our business is notvery important to you, right?
No, no, I don’tmean it! Well, we
will take some.

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.

28

Split bills when you dine with public officials●Issuance of written documents ●Setting a payment date ●Preparing and retaining documents●Payment of delinquency charge

1〈Major prohibited acts〉

Have another drink.

2

3

Buzz

〈Major prohibited acts〉●Private monopolization: An act of monopolizing or attempting to monopolize the market by pushing out competitors or blocking
entry of newcomers by using unfair means, such as offering unreasonably low prices

4

Police!!

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

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

The Anti-Monopoly Act stipulates rules for business transactions in order to promote fair and free competition
and to ensure that business operators can conduct their business freely based on their own judgment.

Everything is goingsmoothly thanks toyour work!

POLICEThat’s not good!

The bill for thisdrinking party
is on us today!

Thank you.

●Refusal to receive delivery ●Delaying the payment of or reducing the agreed subcontract amount●Unreasonable returns ●Forcing purchase of goods or services●Demanding provision of unreasonable economic interest ●Unreasonable rework demand2

We would like toexpand into overseas
markets.

We are aprofessional
consulting firm.
We will takecare ofeverything.

■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.

〈Obligations〉

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.

●Restriction on unfair transactions: Cartels, bid rigging and similar arrangements●Unfair trade practices: Abuse of dominant bargaining position and transactions with restraint conditions.

＊For more information, visit the websites of the Small and Medium Enterprise Agency and the Fair Trade Commission.

1
Of course,
he wouldn’t!

■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.”

Advance Subcontract Act
The Subcontract Act stipulates obligations and prohibited acts for subcontracting parties in order to guarantee
the fairness of subcontracted businesses and to protect the interests of subcontractors.

Advance Anti-Monopoly Act■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.

●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.

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●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 ourcompany, by exploiting our strong position.

29

34

35

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

2. Corporate Ethics Consultation Desk
(Internal Whistle-Blower Procedures)

Corporate Ethics Consultation Desk

The Corporate Ethics Consultation Desk comprises an in-housesection 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, to report—anonymously—
behavior that violates (or may violate) laws or regulations, or isotherwise unethical.
Furthermore, the desk reports each year to the Board of Directors
on the consultations it has received.
Forty-eight reports were received in fiscal 2021 from throughout
the whole Group.
Our efforts surrounding the Corporate Ethics Consultation
Desk have been praised and in October 2020, we received
Whistleblowing Compliance Management System* certification.
*A certification system introduced by theConsumer Affairs Agency to improvethe effectiveness of companies’ internal
whistle-blowing systems.

64

Audit &
Supervisory
Committee
members
Reports

Consults

Consulter
Responds

Consultation
Desk

Reports

Investigates

Departments/
Groupcompanies

President

SUSTAINABILITY IN GENERALSOCIAL

3. Other initiatives
In the case of identification of a major compliance issue during thecourse of an ethics consultation, a risk management committee isconvened as soon as possible to discuss and decide on
appropriate responses.
In addition, we are setting up compliance promotion offices atmajor Group companies and appointing “compliance leaders” atother companies to ensure our response is on a Group-wide basis.

ENVIRONMENTGOVERNANCE

Overview of group complianceHankyu Hanshin HoldingsCore companies• Information to Group companies• Guidance and training for Group companies• Risk management• Risk Management Committee secretariat• Corporate Ethics Consultation Desk

Compliance promotion office(internal whistle-blower procedures)• Internal auditing

Internal whistle-blowing, responsible forplanning and organizing seminars andother awareness-raising activities

Other Group companies
Compliance leaders
Liaise with compliancedepartments of core companies◆ 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.

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◆ Thorough corruption prevention
Our corruption prevention extends not only to banning bribery of public officials, we are also thorough in ensuring treatment that could
be construed as excessive entertaining does not occur. This is equally true overseas, where we make sure to grasp business practices
in each country and raise awareness so as not to do anything that might invite suspicions of bribery or other corrupt practices.
As part of our corruption prevention measures, in May 2021, we announced our agreement with the United Nations Global
Compact; we are pushing forward with corruption prevention activities based on the compact tenth principle: “Businesses should
work against corruption in all its forms, including extortion and bribery.”■ Risk management structure

We have established a risk management structure to help maintain the health of the Group’s management by preventing risks frombecoming reality, and at minimizing the damage if they do. Specifically, the Group has established a dedicated risk management officein the Personnel and General Affairs Division to oversee groupwide risk management. The office is responsible for determining andanalyzing 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.
Under this framework, each Group company conducts an annual risk survey that brings to light, specifically, risks related tonatural disasters (including infectious diseases), accidents, information management, compliance, and other organizational
management risks. An appropriate response is then determined for each.
If a serious risk situation materializes, a Crisis Response Team, headed by the president, is formed to contain the damage
spreading and minimize the fallout.
These principles and actions are prescribed in our Risk Management Regulations, and a report on risk analyses and responses
is, in principle, presented to the Board of Directors annually.
Moreover, the Corporate Sustainability Committee also deliberates climate-change-related issues and the contents of thesedeliberations are shared with the risk management office and relevant individual departments, and are reflected in the Group’s overallrisk management.

65

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ 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 the voting 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 2021 were sent 21 days prior to the event (May 26,2021).
Avoiding scheduling clashes with other companies
The General Meeting of Shareholders held in June 2021 took place on June 16, 13 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.
Entry 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.
Providing convocation notices (digest version) in English
We create English versions of convocation and resolution notices.
IR activities
We engage with investors in a variety of ways, including briefings—attended by the president—for analysts and institutional
investors regarding the mid-year and year-end results, and dedicated investor relations staff in the Group Planning Division respondto investors’ inquiries. The feedback we get from investors is shared in-house and reflected in business management.

•
•
•
•
•
•

Respecting stakeholders’ positions
Realizing our mission to create satisfaction among our customers and contribute to society by delivering safety, comfort, dreams, andexcitement involves the ongoing pursuit of sustained growth underpinned by an active commitment to ESG. In May 2020, welaunched the Hankyu Hanshin Holdings Group Sustainability Declaration a clear indication of how we intend to contribute to moresustainable use of resources across society. The declaration sets forth our determination to ramp up ESG initiatives, to further solidify
the relationship of trust we enjoy with customers, local communities, shareholders, trading partners, employees, and otherstakeholders, and to use the Hankyu Hanshin Holdings Group’s businesses as a vehicle for overcoming the challenges we all face asa society.
Our social contribution activities, such as environmental and community action, have benefited from the institution of a clear
Group policy and the establishment of a dedicated department within the Personnel and General Affairs Division, and our efforts in thisarea are guided by the Sustainability Declaration.
Refer to the Hankyu Hanshin Holdings website WEB for details

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 the 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 and the efforts of its
communications staff. 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.

Acting on feedback from experts
The priority issues relating to Sustainable Management set forth in the Materiality Matrix reflect the diverse views provided by a broad
variety of experts, including professors, civic groups, and investors.

66

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Taxation transparency (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 and achievesustainable 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 of tax 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 from outside
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 and honestly.

Amount of tax paid(¥ billion)
Japan

Overseas

Total

FY2019

29.5

0.6

30.2

FY2020

14.0

0.5

14.5

FY2021

19.4

0.3

19.8

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

■ Approach to intellectual property

The intellectual properties that we have built up through our business activities over many years—including our brands, trademarks,
and confidential management assets such as written materials and expertise—are important corporate assets to the Hankyu Hanshin
Holdings Group. As such, we will endeavor to create new intellectual properties, both to provide products and services that customers
can choose with peace of mind and to appropriately distribute as a management asset to support future business expansion. To thoseends, it is imperative that we manage and use these assets appropriately. Based on that approach, we will manage intellectual
properties in the ways outlined below so as to raise their value even further.
We also have the utmost respect for intellectual properties that belong to third parties.
(1) We will not only work to avoid or prevent the infringement of the intellectual properties we have created, but will acquire rights so
as to support the expansion of our business activities and use these intellectual properties actively and strategically in ourbusinesses.
(2) Where third parties, including business partners, wish to do business that involves the use of our intellectual properties, we will makeour permission mandatory and ensure permission is dependent on the contents of that use after an appropriate investigation.
(3) Where we confirm that a third party has, or may have, infringed upon our intellectual property rights, we will take serious actions.

67

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE

External Evaluation
The Hankyu Hanshin Holdings Group has been selected or evaluated under the following ESG indices (socially responsible
investment indices) and various other systems (as of September 2021).

Status as a Constituent of ESG Indices■ MSCI Japan ESG Select Leaders Index
This is an ESG index, provided by MSCI Inc., composed of excellent
constituent companies in ESG terms selected by industry from among
the constituents of the MSCI Japan IMI Top 700 Index. Hankyu Hanshin
Holdings, Inc. has been a constituent of the index since the index wasconstructed.

MSCI https://www.msci.com/our-solutions/esg-investing■ S&P/JPX Carbon Efficient Index
This is an ESG index jointly developed by S&P Dow Jones Indices and the Tokyo Stock Exchange. The index iscomposed of constituents of the Tokyo Stock Price Index (TOPIX), excluding those whose carbon efficiency is
extremely low or whose risk indicator values exceed a certain level. Hankyu Hanshin Holdings, Inc. has been a
constituent of the index since the index was constructed.

■ MSCI Japan Empowering Women Index (WIN)This is an ESG index composed of Japanese companies that are industry
leaders in terms of gender diversity. The constituents are selected basedon their disclosures on the employment and promotion of women and on
diversity initiatives. In 2021, Hankyu Hanshin Holdings, Inc. was selected
as a constituent for the second consecutive year.

MSCI https://www.msci.com/our-solutions/esg-investing

Other Evaluation and Certification■ Certification as a Health and Productivity Management Organization
This program, organized by the Japanese Ministry of Economy, Trade and Industry, aims to recognize large
enterprises, SMEs, and other organizations for their outstanding health and productivity management. From theHankyu Hanshin Holdings Group, 15 companies have been recognized as outstanding enterprises in health andproductivity management under the 2021 program.
Large-enterprise category (White 500): Hankyu Corporation, Hanshin Electric Railway Co., Ltd.,
Itec Hankyu Hanshin Co., Ltd.
Large-enterprise category: Hankyu Hanshin Properties Corp., Hankyu Hanshin Hotels Co., Ltd.,
Hankyu Travel International Co., Ltd., Hankyu Hanshin Express Co., Ltd., Bay Communications Inc.
SME category (Bright 500): Hankyu Hanshin REIT Asset Management, Inc.
SME category: Kita-Osaka Kyuko Railway Co., Ltd., Hankyu Taxi Inc., Hanshin Cable Engineering Co., Ltd.,
Chuo Densetsu Co., Ltd., Hankyu Hanshin Insurance Service Co., Ltd., Hankyu Mediax Co., Ltd.

■ Whistleblowing system certification
The Whistleblowing Compliance Management System (WCMS) certification program, introduced by theConsumer Affairs Agency of Japan, aims to enhance the effectiveness of enterprises’ whistleblowing
systems in a streamlined manner in order to ensure their sound business operations and help them increase
their corporate value through the promotion of compliance management and the provision of safe andsecure products and services. Hankyu Hanshin Holdings’ whistleblowing system (Corporate Ethics
Consultation Desk) obtained WCMS certification in October 2020.

68

SUSTAINABILITY IN GENERALSOCIALENVIRONMENTGOVERNANCE■ Japanese Customer Satisfaction Index (JCSI)
Every year, the Japan Productivity Center conducts a customer satisfaction survey with enterprises in about 30
service industries and announces highly scored enterprises. This index has ranked Hankyu Corporation top in thesuburban railway category for the 12th consecutive year, while the same index put Takarazuka Revue Company top
in both the entertainment and overall categories in the three consecutive years from FY2017 to FY2019.

■ Questionnaire on the areas where people want to live in the Kansai region
MAJOR7, a website (run by seven major Japanese real estate companies) about new condominiums in Japan, conducted aquestionnaire survey about the areas where website users wanted to live in the Kansai region.* In the rankings based on the survey
results, the top 10 areas were all in the vicinity of stations on railway lines operated by the Hankyu Hanshin Holdings Group.
1 ▶ Nishinomiya-kitaguchi; 2 ▶ Umeda/Osaka; 3 ▶ Shukugawa; 4 ▶ Senri-chuo; 5 ▶ Okamoto;6 ▶ Ashiya; 7 ▶ Ashiyagawa; 8 ▶ Kobe-sannomiya/Sannomiya; 9 ▶ Takarazuka; 10 ▶ Takatsuki/Takatsuki-shi* A survey on MAJOR7 (a website run by seven major Japanese real estate companies) (September 30, 2021)■ Receiving the SDGs Partnership Award (Special Award) in the 4th Japan SDGs Award
This award is granted by the Japanese government’s SDGs Promotion Headquarters to companies,
organizations, etc. that are making outstanding efforts to help achieve the SDGs. In recognition of
the initiative launched in 2019 by Hankyu Corporation and Hanshin Electric Railway to operate theDreams and Communities of the Future SDGs Trains, Hankyu Hanshin Holdings, Inc. received theSDGs Partnership Award (Special Award) in the 4th Japan SDGs Award in December 2020.

69

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

December 2021