ENVIRONMENTESG Initiatives: Environment

Environmental Initiatives of the Asahi Holdings Group
Priority SDG-Related Goal

The Asahi Holdings Group strives to ensure that its business activities contribute tohealthy cyclical use of materials to protect the global environment.

Expand precious metals
recycling

CO2 Emissions Reduction from Precious
Metals Recycling

Recycling

The CO2 emissions reduction benefit from precious metals
recycling by the Group is calculated as the emissions fromits precious metals recycling deducted from the emissions
that would have been produced by refining the same amountof precious metals from mined raw material. By expanding
our precious metals recycling, we will also be indirectly
contributing to CO2 emissions reduction.

Precious Metal bullion

Recycling(The CO2 emissions reduction figure does not indicate the level of emissions directlyreduced by the Group.)

Products

Raw materials for recycling(tons-CO2)

Recycling

Gold: 12,621 kg of CO2 / kg of gold
Silver: 95 kg of CO2 / kg of silver
Platinum / palladium: 9,297 kg of
CO2 / kg of palladium
Gold: 1,256 kg of CO2 / kg of gold
Silver: 22 kg of CO2 / kg of silver
Platinum / palladium: 658 kg of
CO2 / kg of palladium

Emissions fromrefining mined
raw material

Emissions fromrecycling

Industrial waste

Reference: Calculated from “Life Cycle Assessment
Data for Computer Products, Mobile Phones andMixed Waste [homepage on the internet], UnitedStates Environmental Protection Agency

Environmental benefit of precious metals recycling

Note: Calculation was based on the assumption that one cedar treeabsorbs 14 kg of CO2 annually (Source: Forestry Agency of Japan), and
1,700 cedar trees are planted in an area of one ha.

Products

INPUT

Waste

PlantsEmissions
reduction
benefit
543 thousand
tons-CO2

Energy264,730m

Heavy oil48.41 million kWh / year

888 kL / year

Kerosene

Light oil

357 kL / year

3,029 kL / year

Gasoline

Urban gas

968 kL / year

2.98 million m / year

Chemicals

3

LPG

Up compared to the previous year

25 t / year

Down compared to the previous year

I N TE G R AT E D R E P ORT 2021

All figures are for FY2020

We will strive to ensure proper treatment of waste as awaste disposal expert and work to help build a recyclingoriented society.

Liquid waste

Glass and ceramic waste

85,000 t/year

18,000 t/year

SludgeOther (Waste reagents, waste plastic, etc.)

105,000 t/year

93,000 t/year

Waste oil

18,000 t/year

Total

319,000 t/year

Reduce CO2 emissions

Effluent

Electricity

Expand proper industrial
waste disposal

Priority SDG-Related Goal

E ne rg y So urc e s

38

22,075t

Business sites,
research lab, etc.

Priority SDG-Related Goal

Amounts of proper industrial waste disposal
FY2020 results

Recyclingoldings
oupt

ENVIRONMENT

When CO2 savings are expressed as the amount ofgreenhouse gases absorbed by forests, it is equal
to 22,828 hectares of forest (an area one-third thesize of Lake Biwa)

Asahi H
Gr

210

Amount of precious metals recycled in FY2020

ESG Initiatives: Environment

Approximately
one-tenth

OUTCOME
Glass cullet,
fermented compost,
metal raw materials,
fuels and raw
materials for cement,
refractory brick andpaving materials, andwood chips

Emissions factors used for calculation
Refining
mined rawmaterial

We will expand our precious metals recycling globally topromote more effective use of limited resources.

16,324t
Water

367,576m3

CO2

102,674 t

3

OUTPUTBy fiscal 2030, we aim to reduce CO2 emissions fromenergy sources by 50% compared to fiscal 2015.

CO 2 E m is s ion s : FY2 0 2 0 Re sul t s
Compared to
FY201512%
reduction

Scope of data
Headquarters, sites, sales offices and plants in Japan, as well as Group companies*,and overseas subsidiaries* (calculation period: April to March)* The data pertains to consolidated subsidiaries as of March 31, 2021. Data fordeconsolidated subsidiaries are subtracted retroactively, while subsidiaries that werepreviously non-consolidated has been added retroactively, going back to the fiscal year
when the subsidiary became consolidated.

ASAHI HOLDINGS39

ENVIRONMENTESG Initiatives: Environment

Environmental Management

Climate Change Prevention Initiatives

Environmental management structure

ISO 14001 Certification
In August 2018, we obtained ISO 14001 certification for oursites in Japan, including those at subsidiaries. As of March
31, 2021, we have achieved certification for 32 sites at 6
companies. Going forward, we will continue to focus on
maintenance and improvement activities with an emphasison extending certification to all sites.

Management

Priority SDG-Related Goal

Reduce CO2
emissions

CO2 Emission Trends■Non-energy-derived CO2 emissions■Energy-derived CO2 emissions (in Japan)■Energy-derived CO2 emissions (outside Japan)■Energy-derived CO2 emissions (Group basis for 2015 onward)(1,000 tons CO 2)

General Internal Auditors

60

Chief Environment Control Manager
40

General Environment Committee

40.7
14.7

ISO Office

57.1

Supervisors

Supervisors

Environment Preservation
Administrator
Environment Committee
Departments
ISO 14001 certificate

Environmental Management Promotion System

Promoting Green Purchasing
The Group strives to help solve serious environmental problems. This includes climate change, which is caused by emissions
from mass production, mass consumption, and mass disposal. To help build a sustainable world and protect the global
environment, we have established guidelines for green purchasing that comply with Japan's Act on Promotion of Procurementof Eco-Friendly Goods and Services by the State and Other
Entities (Green Purchasing Law), which encourages the use of
products and services that help reduce environmental impact.
Recommended products(1) Products contributing to forest protection approved by the Programme
for the Endorsement of Forest Certification (PEFC)(2) Products that are certified by the Japan Environmental Association
for their low environmental impact and usefulness for environmental
conservation(3) Products that meet the criteria for specific procured products under
the Green Purchasing Law(4) Products listed as eco-friendly by the Green Purchasing Network

Going forward, the Group will continue to actively pursue green
purchasing. We will carefully conserve limited resources and reduce
waste generation, thereby helping to build a recycling-oriented
economic system.

14.5

2015

(Base year)

22.7

2018

64.7

14.5

48.4
23.8

38.0
2.2

21.3

2019

2020

(FY)

In fiscal 2019, the Group's total CO2 emissions were up approximately 3% from fiscal 2015. This does not include the emissions attributed to
one site outside Japan that joined the Group in fiscal 2019, as it was not included in the total for the base year.
Breaking down this total, energy-derived CO2 emissions in Japan were further reduced thanks to energy-saving activities at each site andconsumption of self-generated power. This included high-efficiency power generated using exhaust heat from new waste incinerators. Even
though emissions by sites outside Japan remained about the same, the worldwide total dropped by approximately 12%.
On the other hand, CO2 emissions generated through industrial waste incineration were up approximately 13% from fiscal 2015. The Asahi
Holdings Group is helping to extend the lifespan of final disposal sites by incinerating waste plastic and drastically reducing its volume.
The main reason for the emissions increase was a jump in the amount of waste plastic incinerated after updating incinerators.
The Group has set the reduction of energy-derived CO2 emissions as one of its Priority SDG-Related Goals. We have been striving to
reduce these emissions by 26% by fiscal 2030, compared to fiscal 2015. In response to the Japanese government raising its greenhousegas reduction targets for fiscal 2030, the Group has also bumped up its reduction target to 50% by fiscal 2030 compared to fiscal 2015. The
Group's energy-derived CO2 emission sources in Japan are electricity and fuel consumption in factories, fuel consumption in commercial
vehicles, and electricity consumption in offices. Outside Japan the sources are electricity and fuel consumption in factories and offices. Our
non-energy-derived CO2 emissions come from the incineration of industrial waste.
Asahi Holdings pays particular attention to energy-derived CO2 emissions and is working hard to achieve its target. At our facilities, we
strive to save energy during the operation of air conditioning, lighting and vehicles, and we review our choices concerning electric power
providers. At new facilities, we pursue structural energy saving and energy generation, such as power generation from waste heat recovery.
Scope of data
Headquarters, sites, sales offices and plants in Japan, as well as Group companies,* and overseas subsidiaries* (calculation period: April to March)* The data pertains to consolidated subsidiaries as of March 31, 2021. Data for subsidiaries that were previously non-consolidated has been added retroactively, going back to the fiscal year when the subsidiary became consolidated.
Calculation method
Energy-derived emissions: Calculated based on the amounts of electricity and fuel consumed at each site (emissions in Japan calculated based on the Act on Promotion of Global WarmingCountermeasures, and the Act on the Rational Use of Energy)
Non-energy-derived emissions: Calculated based on the amount of industrial waste incineration

ENVIRONMENT

Every year we develop Company-wide Environmental Goals based on our Environmental Policy, which sets out ourenvironmental preservation philosophy. According to the above-established purposes and goals, each ISO 14001 certified sitein Japan develops its own Annual Environmental Goals and implements environmental preservation activities closely related
to their business tasks. In addition, the Environment Committee of each site deliberates on such matters as compliance withenvironmental laws and regulations, revisions of plans and environmental education, and provides reports to management.
While the ISO Office controls the environmental management system (EMS), an environmental preservation administrator isalso assigned for each site in order to ensure thorough implementation of environmental initiatives.

0

68.0

ESG Initiatives: Environment

Internal Auditors

15.3

20
26.0

Supervisors

40.0
2.8

39.1

Issuing Green Bonds for Renewable Energy Adoption
Green bonds are issued to raise funds for a green project with environmental preservation benefits, such as renewable energy or othermeasures to combat global warming.
On March 31, 2020, Asahi Holdings issued the first green bond in the Japanese non-ferrous metal industry to raise the funds necessary
for the adoption of environmentally friendly facilities and equipment. Under the Group's purpose, "Totally Committed to Protecting
the Natural Environment and Preserving Resources," we are making a direct contribution to the global goal of ensuring a sustainable
planet. Going forward, the entire Group will continue to work toward achieving a sustainable world.
Uses of Funds

Upgrading the incinerator and constructing a new power generation facility
at the Kitakyushu Plant of Asahi Pretec Corp.
Upgrading the incinerator at the Hibiki Plant of Asahi Pretec Corp.
Installing a new incinerator at the Rinkai Plant of Taiyo Chemical Co., Ltd.
The funds will be used to help promote the following SDGs.

※PEFC：Programme for the Endorsement of Forest Certification

40

I N TE G R AT E D R E P ORT 2021

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SOCIETY

ESG Initiatives: Society

Initiatives for Responsible Precious Metals Management
The Asahi Holdings Group is engaged in global procurement of the materials from which it recovers precious metals, which areessential for manufacturing products such as electronics, auto parts, and jewelry. We have established a management system thatcomplies with guidance issued by relevant international organizations. As a member of the precious metals supply chain, we promote
Responsible Precious Metals Management. This is an important part of fulfilling our social responsibilities for compliance with laws,
respect for international norms, human and labor rights, health and safety, environmental preservation, fair trade and ethics.

What is Responsible Precious Metals Management?
Responsible Sourcing of Minerals
The Dodd-Frank Act was enacted in the United States in 2010 out of concern that mineral resources were being used assources of funds for armed groups causing conflict and human rights abuses. The act regulates the use of conflict minerals
from the Democratic Republic of the Congo and nine surrounding countries. Companies that are publicly listed in the US andwhich procure tin, tantalum, tungsten, and gold (3TG) are required to carry out due diligence, survey country of origin, andreport on the use of any conflict minerals.
The Organization for Economic Co-operation and Development (OECD) has issued Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. This OECD Guidance sets out a five-step framework
for companies: (1) establish strong company management systems; (2) identify and assess risks in supply chain; (3) design
and implement a strategy to respond to identified risks; (4) carry out independent third-party audits; and (5) report annually on
supply chain due diligence.
The Conflict Minerals Regulation also came into effect in the European Union in January 2021. It applies to importers ofmaterials containing 3TG into the EU from conflict and high-risk areas, and they are now required to carry out due diligence intheir supply chain. As a result, responsible sourcing of minerals is expanding globally.

Based on the Group's corporate philosophy and code of conduct, the "Asahi Way," we have set out a Responsible Precious
Metals Management Policy at Asahi Pretec, and a Precious Metals Procurement Policy at Asahi Refining. We conduct due
diligence for suppliers and materials of precious metals in accordance with the LBMA and LPPM guidances, and we practiceresponsible precious metal procurement.
The compliance status is audited annually by a third party, and then reported to the LBMA and LPPM. These reports aredisclosed on our website along with the assurance reports issued by the auditing organizations.
To fulfill one of our Priority SDG-Related Goals, “Supplying precious metals in ways that are friendly to people, society, andthe environment,” we work to maintain the Asahi brand as a trusted presence that reassures customers all over the worldthat we practice highly transparent procurement and traceability of raw materials as certified by third parties, and that our
precious metals products are made with consideration for human rights and the environment.

Asahi Pretec’s Responsible Precious Metals Management Policy ➡ https://www.asahipretec.com/responsible-sourcing/➡ https://www.asahirefining.com/corporate-responsibility/

Based on our Responsible Precious Metals (RPM) Management
Policy, we have established the Responsible Precious Metals
Management Committee (RPM Committee) to oversee ourRPM management across the Company. The President of Asahi
Pretec has ultimate responsibility for our RPM management,
and we have appointed a Compliance Officer, who is chairmanof the RPM Committee, to manage our RPM. The RPM
Committee, chaired by the Compliance Officer, adopts andrevises policy, decides on important measures, implements
management system, monitors operation status, provides
training to employees, and reports to senior management.
We consider any transactions that adversely impact our
precious metals supply chain to be high-risk and do not
engage in such transactions. Any transactions considered
to be risky are deliberated by the RPM Committee, andadditional due diligence is carried out as necessary to enhance
the management system. In fiscal 2020, no transactions
considered to be high risk were identified.

Ultimate
responsibility

Representative
Director andPresident

RPM Committee

Compliance
Officer(Administration)(RPM members)
General managersof collection,
manufacturing andsales departments

Business unit
managers

Plant managers(Promoters)
Staff of collection,
manufacturing andsales departments

Staff of business
units and sales
offices

Staff of plants

SOCIETY

Asahi Holdings Group’s Action

I N TE G R AT E D R E P ORT 2021

* RJC: A non-profit organization that promotes transaction transparency andresponsible corporate behavior in the jewelry industry. This includes businesses
that handle precious metals and diamonds, from mines to retailers.

ESG Initiatives: Society

Refiners who meet criteria in areas such as quality of products, assaying capability, and responsible sourcing, and which havepassed testing procedures, are accredited by the London Bullion Market Association (LBMA) for gold and silver or the London
Platinum and Palladium Market (LPPM) for platinum and palladium as good delivery refiners. Asahi Pretec has received Good
Delivery accreditation for gold, silver, platinum and palladium, while Asahi Refining (USA and Canada) has received the samefor gold and silver. These accreditations ensure the companies are trusted by customers in the global market.
To maintain Good Delivery status, in addition to regular quality and technical testing procedures, good delivery refiners
are required to be audited annually by a third-party for the LBMA Responsible Gold and Silver Guidance, and the LPPM
Responsible Platinum and Palladium Guidance in compliance with OECD Guidance.
In addition to avoiding conflict minerals, human rights abuses, money laundering, terrorist financing, and fraudulent
transactions, the LBMA Guidance also now requires refiners to fulfill their social responsibilities related to the environmentand sustainability.
Asahi Pretec and Asahi Refining (USA and Canada) are also accredited by the Responsible Minerals Initiative (RMI) as
conflict-free gold refiners that comply with the Responsible Minerals Assurance Process (RMAP).

42

Utilizing its sales network that covers all of Japan as well as other sites in Asia, Asahi Pretec collects and recycles recyclable
materials containing precious metals from sources such as e-scrap, plating treatment, precision cleaning, catalysts,
dentistry and jewelry. By recycling gold, silver, platinum, palladium, and other precious metals that are essential for modern
manufacturing, Asahi Pretec is contributing to the effective use of resources and the development of industry.
Asahi Pretec brand is recognized worldwide for its gold, silver, platinum and palladium products. In addition to LBMA and
LPPM Good Delivery accreditation, its products have also been accredited as a deliverable brand by futures exchanges suchas the Osaka Exchange (OSE) in Japan, as well as the Commodity Exchange (COMEX) and the New York Mercantile Exchange(NYMEX) in the United States.
In July 2019, Asahi Pretec became the first Japanese refiner to obtain the Code of Practices (COP) certification from the
Responsible Jewellery Council (RJC)*. In July 2021, the company also obtained the Chain of Custody (COC) certification.
The RJC COP is a standard for the code of practices such as
corporate ethics, legal compliance, human rights, labor rights,
environmental conservation, etc. The RJC COC is a standard
for the transparency and traceability of raw materials. Asahi
Pretec’s operations meet the RJC’s strict standard forcode of practices on ethics, human rights, society, and theenvironment, due diligence and traceability, and the company
will continue to fulfill its responsibilities as a member of the
precious metals supply chain.

Responsible Precious Metals Management System

Responsible Precious Metals Management

Asahi Refining’s Precious Metals Procurement Policy

Asahi Pretec’s Action

Supply Chain Management
Our due diligence process is carried out using a risk-based approach addressing the risks in the precious metals supply chain,such as conflict, compliance with laws, human rights, labor rights, health and safety, and the environment. By communicating with
suppliers and conducting know-your-customer questionnaires, we understand the transaction and origin of materials, and we
assess risks of suppliers and materials. We sent a consent form to all of our suppliers, requiring them to confirm that they consent
to our RPM Management Policy, and we ask them for their understanding and cooperation in responsible precious metals sourcing.
We establish relationships of trust with our suppliers and conduct continuous due diligence to mitigate supply chain risk.
(1) Implementation of due diligence for suppliers (risk assessment based on information such as nature of business, location of business,
type of materials, county of origin)(2) Communicating our Responsible Precious Metals Management Policy to suppliers(3) Recording of transaction and management of traceability(4) Providing training to employees on Responsible Precious Metals Management and due diligence(5) Monitoring of implementation status and reviewing by management(6) Conducting annual independent third-party audit

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SOCIETY

ESG Initiatives: Society

Work-Life Balance and Diversity

Human Resource Development Initiatives

While welcoming workplace diversity, the members of the Asahi Holdings Group respect each other's individuality. We areengaged in various initiatives with the aim of creating inclusive workplaces where all employees can demonstrate their abilities.

In a market environment that is changing faster than ever before, the Asahi Holdings Group needs to help meet the needsof society. While constantly pursuing portfolio optimization and efficiency, it must also keep pace with changes such as the
progress of today’s digital transformation (DX). In order for the Group to continue growing globally amid all kinds of major
external changes, it is essential to have a foundation that allows the organization to readily respond to these changes.
Ultimately, human resources will determine the strength of that foundation, so we are determined to develop our people to thefullest extent.
We expect our employees to continually transform their thinking and pursue growth. The Group will do its utmost to support
the growth of its employees as they take on challenges.

Priority SDG-Related Goal

Enhance work-life balance and promote diversity
SDG-Related Goal

Thorough implementation of the rest interval
system (at least 11 hours rest)
We have introduced a system to ensure that employees get at least 11
hours of rest, from the time they leave work, to the time they start work
the next day. We are actively striving to promote employee health, which
is an asset for the company.

Raising the usage rate of Holidays for
Refreshment (at least 3 days off)
This type of leave provides three consecutive days or more, and theemployment rules also allow leaves of five consecutive days. The aim
is for employees to reinvigorate their minds and bodies, while realizing
stimulating work styles.

Increasing the percentage of women in
managerial positions
The aim is to create a company where women can play an active role in
the workplace and fully demonstrate their abilities. We are working to
improve our workplaces and raise career planning awareness, so thatboth men and women can reach their full potential.

The company is working to create jobs that are challenging andrewarding for employees with disabilities, thereby allowing them to use
their abilities and experience in the workplace.

FY2020 Results

100% achievement each fiscal
year

99.9%

100% achievement each fiscal
year

99.9%

Equivalent to the percentage ofmen in managerial positions by
the end of fiscal 2030

Percentage of managers
among women: 2.4%
(Percentage of managers
among men: 19.7%)

2.5% or more employment rateof persons with disabilities by
the end of fiscal 2030 (statutory
level: 2.3%)

1.9%* Target for Group companies in Japan

Human Resource Development

44

Othe rAsahi e-Learning

Training for new hires

Short-Term Business School Placement

Asahi e-LearningThis program allows employees to attend business school courses
with students from other companies. The aim is to enable themto acquire practical management skills and expand their personal
networks.

This is our own internal e-learning program, which is part of efforts to sharein-house knowledge across the Group. By using teaching materials andcontent created by each department, the aim is for participants to deepen theirknowledge of company rules and operations, while improving business skills.

I N TE G R AT E D R E P ORT 2021

The Group reviewed its evaluation and compensation system, which
had been based on age, seniority and past achievements. It has now
introduced clear, easy-to-understand qualification requirements andcompensation standards, whereby evaluation and compensation arealways based on performance and abilities. Regardless of age, employeeswith talent and ability now have the opportunity to reach higher positions
earlier in their career, which can be a driving force for growth.

The Group provides opportunities to employees for further
learning and challenge-taking, so that they can play activeroles in global operations, while also supporting employee
growth for success in a range of new fields. Support isprovided for language testing, and manager training
programs are offered outside Japan in collaboration withoverseas sites. Trainee systems are actively taken on atoverseas sites as well.
The Group has also launched the Asahi "Intrepreneur*"
Program (A.I.P). This is an internal venture system forindividual employees and teams with new business ideasthat have a high probability of success. The program gives
these participants the authority and resources to take on
the challenge of turning their ideas into profitable ventures.
After a team proposes a new business idea to senior
management and it is deemed promising, the Intrepreneurs
are able to work on commercializing the idea for a certain
period of time, and launch the business on their own. This is
a way for the Group to discover and develop future business
managers internally.

(2) Promotion of Diversity and Inclusion
The Group is prioritizing the promotion of diversity and inclusion.
This means developing workplaces where diverse employees are
accepted and treated equally. By recognizing, respecting, andaccepting each individual's differences, we aim to create a newstrength that fuels the Group's growth. Specifically, we are focusing
on raising hourly performance, by eliminating unnecessary overtime
and recognizing employees who work more efficiently. In thisway, we seek to create workplaces that do not require employees
to work long hours and do not penalize employees with family
responsibilities, such as child or senior caregivers.
The Group will also provide more support for employees tomaintain work-life balance. We are promoting flexible work styles,
sharing information on childcare, nursing care and health programs,
and providing thorough maternity leave guidance for expectant
mothers and their workplace superiors. Career advancement
support will also be enhanced by improving career training for
women. Support will also be given to employees with home care
responsibilities, since this is an issue that many more employees
are expected to face as society becomes increasingly older.

* "Internal entrepreneur" (employee entrepreneur)(3) Multifaceted Evaluation for All Executives

Asahi Small
Group (ASG)
Activities

Business school
attendance (based on
employee applications)Short-termbusiness school
placement

Selective
leadertraining

Rank-bas e d e ducatio nDistance learning

Step-uptraining

Training for
new executive
hires
Training
beforestart towork

Basic-level Mid-level Upper-level
positions
positions positions

Professional andspecialist positions

Ed u ca tion for n ew hires(4) Opportunities for Learning and Challenge-Taking

SOCIETY

With the aim of developing professional human resources who can operate at a global level, regardless of rank or occupation
type, we have implemented our own qualification systems and internal education curriculums. In addition, we are striving todevelop human resources who enjoy taking on challenges, using systems that fairly and impartially evaluate each employee’s
contribution to business performance.

(1) Ensuring Performance and Ability-Based Pay

ESG Initiatives: Society

Promoting the employment of people withdisabilities

Targets

With a total of approximately 2,300 employees serving as
evaluators, multifaceted evaluations are conducted every year
for all executives group-wide (approximately 180 in fiscal 2020).
The evaluation criteria include not only business performanceand KPI achievement, but also leadership, passion for change,
human resource development, ethics, and organizational
management. Based on the results of their individual
multifaceted evaluations, each executive is interviewed
by the directors and the relevant executive officers. The
executives receive direct feedback including specific actions
and approaches they can adopt to improve their management
skills, giving them clear guidelines for further growth.
Through these interviews, top management is committed toassessing each executive and promoting the improvement of
their individual management skills.
ASAHI HOLDINGS

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SOCIETY

ESG Initiatives: Society

Relationship with Society
The Asahi Holdings Group has relationships with various stakeholders. We place special emphasis on maintaining
good communication with stakeholders and strive to build strong relationships with them.

Main Initiatives
Ethical Sustainable Jewelry
In recent years, ethical and sustainable jewelry has been gaining attention as products made frommaterials that are friendly to people, society, and the environment. As a company, we can help solve
various environmental and social problems by supplying this kind of jewelry.
Sustainable jewelry is also very suitable for use as special gifts such as engagement rings. This isbecause consumers appreciate knowing that their piece of jewelry has not negatively impacted theenvironment or contributed to other social problems.
In recent years, famous jewelry brands have launched products based on a sustainability concept,
while brands specializing exclusively in ethical and sustainable jewelry have also emerged. The new
trend is even being featured in women's magazines. Asahi Pretec supports the ethical and sustainablejewelry movement by supplying precious metals that are friendly to people, society and the environment.

Strengthening Cooperation with Outside Stakeholders
The role of the Group in the circular economy is much like the veins of the human circulatory system, and this role will
become even more important in the future. Since our business brings back waste resources from local communities
and companies for reuse, we must further strengthen our relationships with those stakeholders. Accordingly, the Group
engages in various initiatives, such as those organized by national and local governments as well as industry groups, while
conducting its own social contribution and sponsorship activities.

Asahi Jewelry Journal
Nowadays, all companies are expected to promote environmental, socialand governance activities. The Group also believes it must take its own
particular measures such as Responsible Precious Metals Management,
and widely share information about them. Asahi Pretec launched the
Asahi Jewelry Journal in June 2020 for its partners in the jewelrybusiness. Published on a regular basis, it covers SDG initiatives and otherrelevant topics.

Asahi Clean Project

Participating in Social Contribution Activities

Serving Our Customers
Our motto is “the customer comes first,” and we mean it. We do all that we can to provide finely tuned responses to the wide-ranging needs of each of our customers.

As part of the Asahi Way, the Code of Conduct of the Asahi Holdings Group prohibits any behavior that impedes faircompetition, violates the confidentiality of supplier information and technology, or results in improper benefits. These
rules are strictly enforced to ensure compliance with fair business practices and corporate ethics.

Quality Assurance System
At Asahi Pretec, quality assurance is positioned as the core department, and it
works closely with the sales, technology development, and product manufacturing
departments. It shares customer feedback and market trends with thesedepartments and cooperates with them to improve customer satisfaction. In addition,
the Asahi Holdings Group maintains ISO 9001 certification to ensure that its products
deliver satisfaction and peace of mind to customers. We strive to continuously
improve our quality management system and maintain the highest quality possible.

Procurement Initiatives
Asahi Pretec has implemented a CSR Procurement Policy. It pertains to the
procurement of secondary materials such as chemicals and consumables usedin precious metals recycling and the environmental preservation business.

46

I N TE G R AT E D R E P ORT 2021

Other social contribution activities
Support for the activities of nonprofits like Médecins du Monde Japon and the Japan Cleft Palate Foundation
Food and toy donations
Nippon Foundation donations through vending machines, etc.

SOCIETY

Fair Trade Measures

As a corporate citizen, the Group carries out social contribution activities
rooted in local neighborhoods and environmental preservation. The
initiatives are promoted in various ways and are important for remaining
an organization that supports local communities.
As part of its social contribution activities, Asahi Pretec participates in
the TOOTH FAIRY project, which is jointly run by the Nippon Foundationand the Japan Dental Association. The project promotes the collection
and recycling of gold, palladium, and other precious metals that have
served their purpose at dental clinics across Japan. Profits obtained from selling the resulting recycled precious metals
are used for social contribution activities such as support for children with intractable diseases and their families inJapan and building schools in Myanmar. Asahi Pretec provides support for these activities by recycling the precious
metals donated to the TOOTH FAIRY project.

ESG Initiatives: Society

The Asahi Holdings Group encourages and supports
activities in which employees contribute to the SDGs
as members of society, such as volunteer activities by
individuals and groups, as "Asahi Holdings SDGs Activities."
On April 1, 2021, the "Asahi Clean Project" was started topromote activities specializing in cleaning. We are engaged
in cleanup activities not only around our offices and sales
offices, but also in various areas.

CSR Procurement Policy
Procurement is carried out based on the following seven points:

1. Environmental preservation
2. Quality control
3. Fair trade
4. Information security
5. Crisis management
6. Social responsibility
7. Human rights protection and occupational safety
and healthTransactions are promoted based on relationships of trustwith our business partners. The aim is to improve corporate
value for both the company and our business partners.

Pandemic Measures
The Asahi Holdings Group has set up a COVID-19 response headquarters headed by the CEO, to prevent the spreadof the new coronavirus among employees and other stakeholders. To ensure that customers can use the Group's
services more safely and securely, we have been implementing various safety measures.
In addition to disinfecting hands and wearing masks, we are conducting regular coronavirus antigen tests for
employees. The Group will continue to take thorough infectious disease control measures and ensure reliable
delivery of services and products.

ASAHI HOLDINGS

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GOVERNANCE

ESG Initiatives: GovernanceCorporate Governance

Adherence to Japan’s Corporate Governance Code

Basic Corporate Governance Approach

Organization Design

Practicing effective corporate governance is a key part of corporate social responsibility. Good governance enhancesmanagement efficiency and transparency, and it helps keep corporate value growing.
The Asahi Holdings Group’s practice of corporate governance seeks to earn the confidence of shareholders, business
partners, employees, local communities, and other important stakeholders. In addition to fulfilling the social mission andresponsibilities of a publicly listed company, we aim to keep growing corporate value by maintaining a corporate governancesystem that can quickly respond to changes in the business environment while always securing compliance.

Board of Directors

Corporate Governance Structure
General Shareholder’s Meeting

Appoint/Dismiss

Appoint/Dismiss

Appoint/Dismiss

Board of Directors(with a majority of independent outside directors)

Executive Director

Appoint/Dismiss/Supervise

Audit/Supervise

Audit and Supervisory
Committee Director(with a majority of independent
outside directors)

Inquire/Reply

The Board of Directors comprises executive directors who are knowledgeable
concerning their respective business, technical or administrative divisions,as well as outside directors with various types of expertise essential tocorporate management. To further enhance the objectivity and independenceof the Board of Directors and ensure that discussions are active andeffective, the majority of members are independent outside directors. The
board consists of two executive directors and five Audit and Supervisory
Committee members, including four independent outside directors, two ofwhom are women, for a total of seven board members. All directors share
their opinions actively and freely on important subjects such as the Group’s
management strategies and business plans.

Maintaining an Internal Control System

Outside Directors

As part of corporate governance enhancement, we are engaged ina continuous process of analyzing and evaluating the effectivenessof the entire Board of Directors as well as in the investigation of
improvement measures. The analysis and evaluation for the fiscal
year ended March 2021 has been completed.

Independence criteria have been established, and independent
outside directors with capacity to perform their duties independently
from the management of the company have been appointed, taking
into consideration their individual backgrounds and relationships
with the Group. They attend Board of Directors meetings and fulfill
their roles and responsibilities as directors. Whenever possible, theyalso attend the executive and management committee meetings ofGroup companies. As part of their wide-ranging activities, the outside
directors share their opinions from an independent point of view.
In addition, in order to further strengthen cooperation between
independent outside directors and the executive directors andto establish a system that enables smooth communication andcoordination, we appointed one of the independent outside directors
to serve as the head of the independent outside directors.

(with a majority of
independent outside
directors)

AssistCollaborate

Secretariat of
Audit
Group Executive
Committee

Collaborate

Internal Audit
Department

Support /Educate /Guide /
Monitor

Safety Management
Meeting

Departments and Group Companies

Internal audit

Collaborate

A Nominating Committee, consisting of one internal director and two
independent outside directors, as well as a Compensation Committee,
have been established as advisory bodies to the Board of Directors.
The chairpersons of both committees are appointed from among theindependent outside directors. The aim is to further enhance corporate
governance by ensuring transparency, fairness, and objectivity for theappointment and dismissal of directors and key management teammembers, as well as for the determination of director remuneration.

Group Executive Committee
Important matters delegated to the executive directors aredeliberated and decided by the Group Executive Committee.
Other matters related to business execution are deliberated
and decided by the Group’s key company management meeting.

Evaluating the Effectiveness of the Board of Directors

1. Analysis and evaluation method for the fiscal year
ended March 2021
A questionnaire consisting of multiple evaluation items in six
categories was distributed to all directors, including directors
who are Audit and Supervisory Committee members. Responses
were obtained from all directors, and the evaluation results
were reported to and examined by the Board of Directors.
Questionnaire evaluation categories
1) Discussion of main strategies, such as corporate strategy
2) Creating an environment that promotes appropriate risk taking
3) Execution of highly effective oversight4) Appropriate communication with shareholders
5) Composition of the Board of Directors
6) Management of the Board of Directors

2. Summary of evaluation results for the fiscal year
ended March 2021
The evaluation results are summarized as follows,
and they indicate satisfaction in all six categories.
(1) Discussion of major strategies, such as corporate strategy⇒Discussion was sufficient.
(2) Creating an environment that promotes appropriate risk taking⇒The system allows the risks associated with businessexecution to be fully discussed and business was
executed with an appropriate level of risk taking.
(3) Execution of highly effective oversight⇒ Oversight was highly effective.
(4) Appropriate communication with shareholders⇒ Appropriate communication was achieved.
(5) Composition of the Board of Directors⇒ The composition is appropriate.
(6) Management of the Board of Directors⇒Sufficient discussion time was taken and discussions
were substantial.

3. Measures to improve effectiveness

GOVERNANCE

Internal Control
Promotion Meeting

I N TE G R AT E D R E P ORT 2021

Under Japan’s Companies Act, Asahi Holdings has elected to
be a company with an Audit and Supervisory Committee, andhas four independent outside directors.
This structure has strengthened the supervisory function of
the Board of Directors. It also delegates important executive
decisions to the executive directors for quicker decisionmaking and improved management efficiency.

Nominating and Compensation Committees
Group Risk
Management
Department
Collaborate

48

Acco unt i ng
A udi t ors

Representative
Director

Direct/ReportAiming to reinforce internal controls, we have established an Internal Audit
and Supervisory Committee within the Board of Directors. It includes four
independent outside directors, and it cooperates with our Audit Department
and other related departments.
The Audit Department assesses the appropriateness and effectivenessof operations, while also auditing compliance with laws, regulations, andcompany rules. It advises and makes recommendations to each department,
and promptly reports to senior management. In addition, trained staff ineach department conduct internal audits based on an annual plan andreport their findings to the Internal Control Promotion Meeting.

ESG Initiatives: Governance

Audit and Supervisory Committee
Nominating Committee
Compensation Committee

The Asahi Holdings Group adheres to all the principles of Japan’s Corporate
Governance Code formulated by the Tokyo Stock Exchange. We submit Corporate
Governance Reports, which provide investors with 78 points of governanceinformation in a standard format, to the Tokyo Stock Exchange, and these areavailable on our website.
In addition, we have formulated the Asahi Holdings Corporate Governance Policies
and are implementing each one to continuously enhance corporate governance.

By taking the following measures, we will further improve theeffectiveness of Board of Directors management and strive tokeep strengthening corporate governance.
Make appropriate advance preparations to ensure evenricher discussions on corporate strategy, etc.
Increase opportunities to discuss the SDGs as an importantmanagement issue and expand constructive dialogue withexternal stakeholders
Expand discussions on risk issues related to important
projects and response measures

ASAHI HOLDINGS

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GOVERNANCE

ESG Initiatives: GovernanceCompliance and Risk Management
In order to appropriately manage various apparent and latent risks relating to corporate activities, the Group identifies
risks comprehensively, evaluates them, and implements mitigation measures. By implementing risk management, we
strive to prevent risk materialization and minimize losses in the event of an incident.

Director Skill Matrix
General executive
management skills

Industryknowledge

Mitsuharu Terayama●●

Tomoya Higashiura

●

●

●

●

●

Name
Director and Chairman

Representative Director, President & CEO

Yuji Kimura

Director, Chairman of
the Audit andSupervisory Committee

Kyoko Kanazawa
Director, Audit andSupervisory
Committee Member

Yoshinori Hara
Director, Audit andSupervisory
Committee Member

Miyoko Kimura
Director, Audit andSupervisory
Committee Member

Independent
OutsideDirector

International
experience

Independent
OutsideDirector●

Independent
OutsideDirector●

Independent
OutsideDirector

Sales

Technology andinnovation

●

●

Legal

Finance andaccounting

●

●

●

●

●
●
●

●

Mitsutoshi Kagimoto

Administrative
experience

●

●

●

●

Amane Kojima●●

Hiroyuki Nakanishi●●Nobuo Tajima

●

●

●

●

Shohei Yasuda

●

●

●

●

Director, Audit and Supervisory
Committee Member
Corporate Officer and CFO
Corporate Officer
Corporate Officer
Corporate Officer

●
●

●
●

●

R e m une r at io n fo r D ire c t o rs
Policy for Determining the Details of Director Compensation
Remuneration policy determination

Overview of the remuneration policy
Director compensation must be within the limits approved by the General Meeting of Shareholders. The Board of Directors
determines the specific director compensation policy within these limits, based on the recommendation from the Compensation
Committee, which plays an advisory role. The remuneration system is designed to motivate directors to improve the Group'sbusiness performance. Their remuneration consists of basic compensation, bonuses, and performance-linked stock-based
compensation. However, directors who are Audit and Supervisory Committee members receive only basic compensation.

Total Amount of Director Remuneration

Directors excluding those who are Audit and Supervisory Committee members (outside directors only)

Total (outside directors only)

163（ 0 ）38（ 18 ）201（ 18 ）Total amounts by type of remuneration (million yen)
Monetary compensation
Fixed compensation

86（ 0 ）
38（ 18 ）124（ 18 ）Performance-linked compensation

54（ 0 ）0（ 0 ）
54（ 0 ）

Non-monetary remuneration

Number ofapplicabledirectors(names)22（ 0 ）0（ 0 ）
22（ 0 ）

4（ 0 ）
4（ 3 ）
8（ 3 ）

Monetary compensation

Notes

1. The amount paid to directors (excluding those who are Audit and Supervisory Committee members) does not include employee salaries for directors who also serve in employee positions.
2. The indicator used for performance-linked compensation (bonus and performance-linked stock-based compensation) is consolidated operating profit, which is considered to be the most suitable management index for
profits earned by the main business. The fiscal 2020 result was 25,126 million yen. The performance-linked compensation (bonuses) is calculated by first multiplying the consolidated operating profit for the relevant fiscal
year by a certain ratio to calculate the total amount for all directors including the directors of Asahi Holdings subsidiaries. The amounts for each director are then determined according to the weighting for each position andthe degree of individual contribution to business performance.
3. Performance-linked stock-based compensation is a non-monetary compensation system in which Asahi Holdings shares are awarded to eligible directors according to their position and performance target achievement
rates. Since the purpose is to provide incentive to improve corporate value over the medium and long term, allocation points are awarded according to the achievement rate of the performance target, namely consolidated
operating profit each fiscal year. Those who were enrolled as of May 31, 2021 after the completion of the 8th Medium-Term Management Plan are eligible for the award. At the 9th Annual General Meeting of Shareholders
held on June 19, 2018, continuation of the performance-linked stock-based compensation system was approved. The shareholders also approved the number of allocation points to be awarded to directors in their positions
for the three years from fiscal 2018 to 2020, not including outside directors, part-time directors, and Audit and Supervisory Committee members. The performance-linked coefficients are provided below.

Performance target
achievement rate

50

Performance-linked
coefficient

100%

1.0

50% or more

0.5

Less than 50%

0

I N TE G R AT E D R E P ORT 2021

The following statement is part of our Corporate Governance
Policies, and is understood by all our executives andemployees. "We will never have any relationship, including
business relationships, with anti-social forces which
threaten the social order and sound corporate activities. In
the event of an illegal request, we will take a firm attitude
and respond to it organizationally in accordance with thelaws and internal rules."Business Continuity Management (BCM)
Various factors such as large-scale disasters entail the riskof impairing the functions needed for business continuity.
As an action plan to achieve quick restoration of missioncritical functions even after a disaster, we created abusiness continuity plan (BCP). In addition to the BCP, we
are conducting systematic business continuity management
activities to constantly improve the BCP and business
continuity endeavors.

Information Security

Anti-Corruption Measures
As part of our Group Philosophy, the Asahi Way, we have aten-point Code of Conduct. One of these points states that
"we refrain from providing or receiving meals or gifts inpursuit of personal benefit." Group employees ensure thatthey do not engage in any transactions that could resultin bribery, such as providing some benefit to a business
partner or competitor for personal gain. Moreover, Asahi
Pretec, which manages the Group's Precious Metals
Business, has established a Responsible Precious Metals
Management Policy. It has declared and implemented apolicy of avoiding transactions that could result in money
laundering or fraudulent transactions in the precious
metals supply chain. Asahi Pretec also conducts employee
education on this topic on a regular basis.

The laptops and tablets used by the Group’s sales force
are equipped with the latest security measures. Even if a
device is lost or stolen, the possibility of information leakage
is virtually zero thanks to technology such as remote data
wiping.

To quickly identify and resolve problems such as unlawful
and unjust behavior, we have set up the Asahi Hotline. All
employees in and outside of Japan can directly report toeither an internal desk or an external law firm anonymously.
We take corrective actions to address the reported mattersafter investigation, without revealing the identity of thedisclosing or disclosed parties.

GOVERNANCE

Directors who are Audit and Supervisory Committee members (outside directors only)

We consider compliance a priority issue in delivering
fair business activities and ensuring legal complianceand high ethical standards. Particularly, operations
related to appropriate processing of wastes are based on
environmental laws and regulations as well as governmental
licenses, and each and every employee is required always
to act with a highly compliant mindset. We are conducting
activities to raise the legal compliance awareness ofeach and every employee through education and mutualcommunication, along with rules and manuals related tocompliance.

Internal Reporting System (Whistle-Blowing System)
Total amount of
remuneration(million yen)Classification

Avoiding All Interactions with Organized Crime and other Anti-Social Forces

ESG Initiatives: Governance

The Board of Directors requests the volunteer Compensation Committee, which consists of three board members, including
two independent outside directors, to draft a recommendation for remunerating the directors of Asahi Holdings. Based on thisrecommendation, the Board of Directors determines a policy detailing remuneration for each director.

Compliance

4. At the 6th Annual General Meeting of Shareholders held on June 16, 2015, the monetary compensation for directors (excluding those who are Audit
and Supervisory Committee members) was established at a total of no more than 200 million yen per year. (This does not include, however, employee
salaries for directors who also serve in employee positions.) The number of directors (excluding those who were Audit and Supervisory Committee
members) at the end of that general meeting was five.
5. Also at the 6th Annual General Meeting of Shareholders, the amount of monetary compensation for directors who are Audit and Supervisory
Committee members was established at a total of no more than 100 million yen per year. The number of directors who were Audit and Supervisory
Committee members at the end of that general meeting was four.
6. At the 9th Annual General Meeting of Shareholders held on June 19, 2018, continuation of the performance-linked stock-based compensation system
was approved. In addition to the above monetary compensation level, the amount and details of remuneration was determined for Asahi Holdings
directors (excluding directors who were Audit and Supervisory Committee members or outside directors) who were in their positions for the three
years from fiscal 2018 to 2020. At the end of the general meeting, the number of directors (excluding directors who were Audit and Supervisory
Committee members or outside directors) was five.

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GOVERNANCE
Group-Wide Oversight and Auditing by Directors
Asahi Holdings has established a system to appropriately
oversee and audit Group companies from every angle toensure these businesses are always operating properly.
Important executive decisions for Group companies arecarefully deliberated and made by the Group Executive
Committee, attended by directors of Asahi Holdings, Inc.,and its Group companies. Particularly important matters
are submitted to the Asahi Holdings Board of Directors fordetermination. Directors who are Audit and Supervisory
Committee members also participate in the management
meetings of Group companies and actively provide input.
The management situation and sales activities of Group
companies are regularly reported to the Board of Directorsof Asahi Holdings. In addition, the company's Audit
Department audits Group companies on a regular basis
and whenever required, and the resulting audit reports
are shared with the Audit and Supervisory Committee andrelevant departments.

Improving Group Risk Management

Group Risk Management Department Created
On April 1, 2021, a Group Risk Management Department
was created to properly identify potential risks in theGroup's business execution processes and businessstructures. It was established to evaluate risks in businessactivities and implement mitigation measures acrossthe Group. The department implements compliance risk
management for each business unit and strives to ensure
appropriate governance in collaboration with the Audit
Department. We have also established a complianceand safety system under which we hold Internal Control
Meetings and Safety Management Meetings regularly toprevent risks from materializing.

Strengthening Risk Management in the North
American BusinessIn our North American business, we are working toestablish a model to expand our business into relatedareas, using refining as a platform. In particular, we
will continue to aggressively promote financial services
such as "advance trading," and we will also develop
new financial products. To do this, we will first need toestablish strong mechanisms to ascertain and monitor
credit risk of business partners. In addition, identity
verification (know-your-customer / KYC) procedures are
becoming increasingly important to prevent the fundingof organized crime and terrorism. Accordingly, we will
work to strengthen credit risk management of business
partners and enhance systems at individual sites as we
promote the expansion of our North American business,
which is one of our growth drivers.

Director Profiles

Mitsuharu Terayama (Born March 10, 1940)

Tomoya Higashiura (Born January 26, 1961)

ProfileProfileApr 1964 : Joined Kuraray Co., Ltd.
Jul 1973 : Joined Asahi Pretec Corp.
May 1981: Appointed Representative Director and President of
Asahi Pretec Corp.
Apr 2009 : Appointed Representative Director and President of
Asahi Holdings, Inc.
Jun 2014 : Appointed Representative Director, President andChairman of Asahi Holdings, Inc.
Apr 2018 : Appointed Representative Director, Chairman of
Asahi Holdings, Inc.
Jun 2020 : Appointed Director and Chairman of Asahi Holdings,
Inc. (to present)

Apr 1984 : Joined NEC Corporation
Feb 2001 : Joined Asahi Pretec Corp.
Jun 2006 : Appointed Director of Asahi Pretec Corp.
Apr 2011 : Appointed Director of Asahi Holdings, Inc.
Jun 2014 : Appointed Representative Director and President of
Asahi Pretec Corp.
Apr 2017 : Appointed Representative Director and President of
Asahi Americas Holdings, Inc.
Apr 2018 : Appointed Director of Asahi Pretec Corp. (to present)
Apr 2018 : Appointed Representative Director and President of Asahi Holdings, Inc.
Jun 2020 : Appointed Representative Director, President &CEO of Asahi Holdings, Inc. (to present)

Au d it a n d S u p e r vis o r y C o mmit t e e M e mb e r s

Yuji Kimura (Born July 23, 1955)

Kyoko Kanazawa (Born October 11, 1965)

ProfileProfileApr1979 : Joined the Environment Agency
Jul 2006 : Appointed General Manager of Industrial Waste
Management Division, Waste Management and Recycling
Department of the Ministry of the Environment
Aug2010 : Appointed Director-General of Kyoto Mechanism Business
Promotion Department of New Energy and Industrial
Technology Development Organization
Jul 2012 : Appointed Director-General of Hakodate
Customs, Ministry of Finance Japan
Oct2014 : Appointed Executive Director and General Manager of Tokyo
Office, Global Environment Centre Foundation (to present)
Jun 2017: Appointed Independent Outside Director (serving as Audit andSupervisory Committee Member) of Asahi Holdings, Inc.
Jun 2021: Appointed Head of Independent Outside Director (serving as Chairmanof Audit and Supervisory Committee) of Asahi Holdings, Inc. (to present)

Apr 1989: Joined Fuji Research Institute Corporation
Apr 2000: Registered as attorney / Joined Hata & Co.
Law Offices (to present)
Jun 2017: Appointed Independent Outside Director(serving as Audit and Supervisory Committee Member)of Asahi Holdings, Inc. (to present)

Yoshinori Hara (Born July 21, 1958)

Miyoko Kimura (Born June 12, 1964)

ProfileProfileApr1983 : Joined NEC Corporation
Aug1990 : Became a Visiting Researcher, Stanford University
Jul 2004 : Supervised NEC’s Kansai Research Laboratories
Apr2006 : Professor of Graduate School of Management,
Kyoto University (to present)
Apr2018 : Dean of Graduate School of Management, Kyoto University
Jun2019 : Appointed Independent Outside Director (serving as
Audit and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Apr1988 : Joined PLUS Corporation
May1999 : Joined ASKUL Corporation
Feb2010 : Appointed Representative Director and President of
ASMARU Corporation
May2017 : Appointed Chief Marketing Officer (CMO), Executive Officer,
Executive Officer of Life Creation Unit and Value Creation Center
Unit, B-to-C Company of ASKUL Corporation
Mar2020 : Appointed Director, Supervisor of Merchandising Unit, Chief
Marketing Officer (CMO), Executive Officer of ASKUL Corporation
May2021 : Appointed Director in charge of branding, designing andsupplier relations of ASKUL Corporation (to present)
Jun2021 : Appointed Independent Outside Director of Asahi Holdings, Inc.
(serving as Audit and Supervisory Committee Member) (to present)

GOVERNANCE

Mitsutoshi Kagimoto (Born June 15, 1958)

ESG Initiatives: GovernanceAs compliance is essential to maintaining trustworthy
corporate activities, the Group ensures legal complianceand thorough adherence to corporate ethics among its
members. While developing human resources that embraceinnovation and challenge-taking by continuously expanding
the types of challenges they undertake, the Group mustalso recognize the increasingly diverse needs and values ofsociety. To pursue sustainable growth going forward, theGroup must not only comply with laws and regulations, butalso enhance management of all kinds of risks.
While risk management is practiced at each businesslocation, management standard-setting and location
monitoring must be performed independently. Recognizing
this, Asahi Holdings decided to enhance its organizational
structure, by introducing a unified management framework

for the Group. The Audit Department was placed underthe Audit and Supervisory Committee to ensure a fully
independent organization for confirming and monitoringbusiness execution. We have also set up the Legal
Department to bolster the framework for minimizing various
legal risks at business locations. In this way, we have beenfurther enhancing our risk management system.

ESG Initiatives: Governance

ProfileApr1984 : Joined Teijin Limited
Feb2006 : Joined Asahi Pretec Corp.
Mar2009 : Appointed Assistant General Manager of Kitakanto
Office of Asahi Pretec Corp.
Dec2009 : Appointed Representative Director and President of
JW Glass Recycling Co., Ltd.
Apr2013 : Appointed General Manager of Purchasing Divisionof INTER CENTRAL, INC.
Oct2015 : Appointed General Manager of Audit andSupervisory Committee Secretariat of Asahi Holdings, Inc.
Jun2021 : Appointed Director of Asahi Holdings, Inc. (serving as
Audit and Supervisory Committee Member) (to present)(As of June 15, 2021)

52

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53