Working to Build a Sustainable World

The needs of the business environment and society are changing with the emergence of various social issues andenvironmental problems in recent years.
The TS TECH Group will continue to create new value while helping to build a sustainable world, always
striving to remain a company that meets expectations and is sincerely appreciated by all.

Basic Policy on Sustainability

The TS TECH Group has consistently worked to raise corporate value sustainably and foster a corporate culture
based on the two elements of our vision statement—being “A company dedicated to realizing people’s potential,”
which expresses our belief that people are the decisive factor in a company, and being “A company sincerely appreciated by all” stakeholders and society.
•W e will help to resolve social issues by implementing our vision statement, with its twin aims of being “A company dedicated to realizing people’s potential” and being “A company sincerely appreciated by all.”•W e will improve the overall corporate value of the Group.
•W e will hold responsible dialogues with all stakeholders and build trusting relationships.

November 2021 Board Resolution

Promotion Framework

TS TECH established the Sustainability Committee as an advisory body to the Executive Committee, which is responsible foroverseeing business operations. The Sustainability Committee discusses issues related to overall sustainability for the Group,
including climate change measures, and manages these efforts group-wide.
During the course of its deliberations, important risks are identified and then managed in collaboration with the Global
Risk Management Committee, depending on the nature of the risks concerned. Matters deliberated by these two committees
are shared with the Executive Committee, which then makes a formal decision on which matters are to be submitted to theBoard of Directors for discussion. We strive to achieve sustainable growth for the Group and solve social issues by making
decisions on sustainability initiatives at the management level.

Sustainability Committee

Composition of the committee
This committee is chaired by the head of the Corporate Administration Division and made up of the heads of each functional and regional division.
The Corporate Communication Department serves as the secretariat.
Activity plans
The Committee meets three times a year, in principle, and holds ad hocmeetings also when necessary.
Committee activities
during fiscal 2023

38

Board of Directors
Response and reports
Executive Committee
Reports

Direction

Sustainability Committee
Chairperson: Corporate Administration Division
Executive General Manager
Members: Representatives from each functional
division*1
Representatives from each regional division*2
Secretariat: Corporate Communication Department

Response and reports

Role
As the advisory body to the Executive Committee, the Sustainability Committee decides on sustainability policies and manages the progress madein achieving related goals and discusses important measures.
– Confirmation of progress made toward achieving materiality KPIs
(more than once a year)– Discussion of initiatives to achieve carbon neutrality in 2050
– Identification of risks and opportunities related to sustainability andrelated scenario analysis (TCFD requirement)– Sharing of social trends and issues related to sustainability– Establishment and operation of system aiming to foster awareness ofsustainability within the company

Collaboration
Global Risk Management Committee*1 Corporate Sales and Purchasing Division, New Business
Management Division, Corporate Development and EngineeringDivision, Corporate Manufacturing Division, Corporate Quality
Assurance Division, Corporate Administration Division, Corporate
Business Administration Division, Corporate Managerial Planning
Department*2 The Americas Segment, China Segment, Asia Segment

Main agenda items

1st Meeting: May 27, 2022

• Deliberated qualitative assessment of climate-related risks and opportunities for the Group, as well as information disclosure

2nd Meeting: October 26, 2022

• Discussed the creation of a human rights policy and the establishment of a system for recognizing the sustainability-related
efforts of employees

3rd Meeting: March 17, 2023

• Deliberated quantitative assessment of climate-related risks and opportunities for the Group, as well as information disclosure• Discussed renewable energy and energy conservation measures• Evaluated progress made on achieving 2030 targets relating to the Group’s material issues, and reviewed themedium-term targets

TS TECH Integrated Report 2023