Sustainability Report 2022
Summary Report

CONTENTS
Top Message���������������������������������������������������������������������������������������� 4
Earth Corporation’s Sustainability ��������������������������������������������������������������������� 6
Initiatives Aimed at Contributing toward the Realization of the SDGs������������������������������������ 8
Identification of Materiality ��������������������������������������������������������������������������� 10
Materiality—Responding to Climate Change ����������������������������������������������������������� 12
Materiality—Concern for the Issues Affecting the Global Environment���������������������������������������� 14
Materiality—Promoting Sustainable Procurement�������������������������������������������������������� 18

We act to live in harmony with the Earth.

Materiality—Creating workplaces that support activities by diverse individuals �������������������������������� 20
Materiality—Provision of Products and Services That Contribute toward Safe and Comfortable Lifestyles  ����������� 24
Strengthening the Management Infrastructure �������������������������������������������������������� 28
Helping to Address Society’s Problems through Our Business ���������������������������������������� 29

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Top Message

Achieving safe and comfortable lives for people
around the world as a total care company for
infectious diseases
Heading into the future, based on
existing business foundations
Since last year, the Earth Group has
been moving forward with activities aimed
at becoming a “total care company for
infectious diseases.”
The world is still threatened by novel
coronavirus infections. Amid rapid changes
in business approaches and work styles, theEarth Group, whose core business centerson household insecticide products thatprevent infections transmitted via insects,
is returning to the approach of “standing up
to infectious diseases,” which has been at
the root of its business since the company’s
foundation, and seeks to fulfill this mission ineven broader fields.
Of course, this includes the continuationof steady fundamental research that has
supported the Earth Group up to now. If weturn our attention to the surroundings, in the
backdrop of the novel coronavirus infection,

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Earth Corporation

we can see that there are needs in fields
such as “sterilization” and “deodorization,”
which are the Earth Group’s specialty fields.
The starting point is the “MA-T™ System”(Matching Transformation System), an
innovative oxidization control technology
developed in Japan. The Earth Group is
expanding its business fields to increasevalue and promote the proliferation of
the MA-T™ System, for example byexpanding new applications through open
innovations and collaborations amongindustry, government, and academia, andby resolving issues through unprecedented
collaborations among different industries.

Applying experience from thepandemic in the coming era
At the same time, as we take on the issuesof rebuilding the financial base, we havea strong awareness that we must change
past approaches, and have opened up newmarkets by leveraging the technologies andsales foundations that we have established
up to now. Within the company as well, we
have introduced remote work and online
conferences as a result of the pandemic,
but even after the pandemic has subsided,
we will maintain a stance of verifying theeffects of these initiatives and holding onto
positive outcomes while eliminating lesseffective approaches, and select the best
measures depending on the conditions.
Earth Corporation conducts insecticide
education activities, establishing “insecticide
stations” at sporting events and other events
held amid pandemic countermeasures.
One aspect of these insecticide
education activities held at sporting events is“CSV Management,” which aims to resolve
social issues through business itself. In
October 2022, we established the CSR and
Sustainability Promotion Department directly
under the jurisdiction of the president, tofurther strengthen these activities.

Making “contributions to society
through business” easier tounderstandI believe that approaches to society such as
ESG and SDGs are not new approaches,but something that we have always been
doing. By clearly documenting theseapproaches, it has become possible tocompare them to what we have been doing
up to now, and undertake these activities
with a stronger awareness.
In our company, preconceptions like “evenif I don’t tell them, they will understand,” or“I’m sure they will do it” are often the causeof failures. By clearly expressing to outside
parties the things that we are doing, we aremaking a promise to society, and I believethat we can fulfill that promise.
In May 2021, we signed the United
Nations Global Compact, put forward by
the United Nations, and were registeredas a participating company. In addition
to increasing the visibility of social
contribution activities through businessbased on international standards, we willfurther promote the Earth Group’s ESG
management on a global scale.

Placing top priority on “for society,and for the customers”
SDGs and other sustainability goals are often
seen from a long-term perspective, andmany of these goals are difficult to achieve.
The Earth Group will separate the things that

we can and cannot do, and we will devote
ourselves to doing what we can. There arevery strict standards, including reductions
in environmental impact, but ultimately, we
will undertake these activities one at a time,
placing priority on “for society, and for thecustomers.”
We will also need to ask our business
partners to cooperate with the Earth Group’s
approach. On a global scale, there aremany issues, like differences in enthusiasm
depending on the country or region, but
we will make a special effort to present the
Earth Group’s approach to new business
partners, and work together with them. The
most important thing is not immediate profits,
but rather the value that our business cancreate for the world at large. This is why
we are further promoting insecticides, andprofessing to be a “total care company for
infectious diseases.” I would like to entrench
this idea within the company as well, sothat employees can feel the joy of working
at a company where the business itself
contributes to society.
When we think about infectious diseases,
we must be aware of the global scale in
the rollout of business, and talk about theworld as a whole. To create a society where
people throughout the world can live withpeace of mind, we will continue to grow andtake on new challenges, with a sense of
responsibility and self-awareness, knowingthat the Earth Group is making a difference.
December 2022

Katsunori Kawabata
President &Representative Director

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Earth Corporation’s Sustainability
Basic Policy on Sustainability
We formulated our Basic Policy on Sustainability in 2021.
When drawing up this policy, we brought together representatives of every department involved in business promotion, and engaged in
repeated discussions regarding the elements and phrases needed to effectively disseminate the concept of sustainability while respecting
Earth Corporation’s essential aspects. We are making it clear, both within and outside the company, that we will be promoting initiatives
aimed at realizing sustainable business based on this policy.

Sustainability promotion framework
We have established a CSR and Sustainability Promotion Department under the Group Management Headquarters, to promote the smooth,
effective implementation of sustainability activities in line with the company’s Basic Policy on Sustainability, while maintaining a bird’s-eye viewof the three key areas of the environment (E), society (S) and corporate governance (G).
We have also established a CSR and Sustainability Committee, chaired by the company President, as a permanent body to promote
frontline sustainability activities. This committee works together with the CSR and Sustainability Promotion Department to formulate activity
plans, set targets and key performance indicators (KPIs), share targets and KPIs throughout the company, and promote initiatives aimed attarget achievement.
The committee also undertakes monitoring of progress status, shares activity content within the company, compiles the Sustainability
Report and ESG Data book, and undertakes appropriate disclosure of information in line with stakeholders’ expectations. The content of
the committee’s discussions and the status of activities are reported on regularly to senior management, and important matters requiring
examination and decision-making by senior management are reported to and discussed by the Board of Directors.

Earth Corporation’s Basic Policy on Sustainability
In line with our corporate philosophy—“We act to live in harmony with the Earth”—
we will collaborate with our stakeholders to address issues relating to sustainability,
and will contribute toward the sustainable enhancement of corporate value andtoward the building of a sustainable society.

Earth Corporation’s stakeholders
Earth Corporation’s business activities are supported by various
stakeholders,including customers, employees and their families, suppliers,
shareholders and investors, and local communities. To embody our
slogan—“Making the Earth a home that feels good”—we believe that it isimportant to communicate with those various stakeholders, and to create
an environment that promotes dialogue rather than unilateral transmission of
information.

Customers
Employees
andtheir family
members

Earth
Corporation

Suppliers

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Earth Corporation

Shareholders
and investors

Local
community

The Earth

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Initiatives Aimed at Contributing toward the Realization of the SDGs
The SDGs* were announced at the United Nations
Sustainable Development Summit in September
2015, as goals to be achieved by 2030 in relation
to addressing issues such as poverty and hunger,
energy, climate change and the building of peacefulsocieties.
Comprising 17 goals and 169 individual targets,
the SDGs represent an international policy goal
framework that 193 countries have signed up to. Earth
Corporation has also set its own goals for the future,
and we are working together with our stakeholders toactively promote business activities aimed toward theachievement of these goals.
*SDGs:Sustainable Development Goals【Key topics that we are focusing on】
Infectious diseases
We are contributing toward the eradicationof insect-borne diseases through our insect
control products (SDG Target 3.3)
With the expansion of insect habitats and increase ininvasive species that have accompanied global warming, therisk posed by insect-borne infectious diseases has grown.
Through our insect control products, we are contributing
toward the prevention of infectious diseases where there is adanger of transmission by insects.

Oral hygiene environment
We are contributing toward better oral
hygiene through our oral care products(SDG Target 3)
We recognize that the risk posed by diseases which arecaused by the oral hygiene environment constitutes aproblem for society, and we are contributing toward theimprovement of oral hygiene through our oral care products.

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Earth Corporation

Environment
We are working to reduce waste by
reducing returns of seasonal products(SDG Target 12.5)
We are identifying the risk associated with returns generated
from our business processes and with the resulting waste,
both from a business perspective and from an environmental
perspective, and we are working to reduce this waste through collaboration withour business partners.

We implement appropriate chemical substance management(from an environmental and health perspective) throughout
the product lifecycle (SDG Target 12.4)
Besides being aware of the environmental burden throughout the product lifecycle,
we are also working to identify, in quantitative terms, the environmental burden
resulting from the resources allocated to our business activities and the utilizationof these resources, and to implement appropriate management.

We are reducing CO2 emissions in plants,
offices and logistics (SDG Target 13.1)
We are working to reduce CO2 emissions in the value chain,including plants, offices and logistics. We are making a
concerted effort to adjust our production lines and the energythat we use in order to reduce the burden on the environment, and we are also
proceeding with electric power generation initiatives using solar panels.

We are strengthening the company’s resilience to natural
disasters, etc. (SDG Target 13.1)
We recognize the need to minimize the risks associated with natural disasters andthe damage caused by such disasters, and we are striving to strengthen resiliencein our day-to-day operations. We have obtained Resilience Certification from the
National Resilience Promotion Office, Cabinet Secretariat, and we are preparing
countermeasures to respond to a natural disaster affecting our head office,research institutes or plants.

Working environment
We promote diversity, and we provide jobs
and workplaces that enhance motivation(SDG Targets 5.1/5.5/8.5)
In line with our core value of “Diversity,” we respect thediversity and human rights of all the colleagues who work withus, and we strive to treat them fairly and equitably. In thisway, we aim to create workplaces where everyone can workwith enthusiasm in a way that suits their own personality.

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【Earth Corporation’s sustainability materiality】

Identification of Materiality
To meet the expectations of stakeholders and continually develop the Earth Group over the long term, Earth Corporation
believes that it is important to check and evaluate the impact of various social issues and corporate activities, and to clarify
issues that are important to management. Based on this approach, in 2021, we identified key issues (materiality) that areimportant in relation to sustainability.
In order to undertake sustainability initiatives in the future that effectively utilize both the unique characteristics of the
Earth Group’s business and its management resources, we have decided on key topics and have formulated targets and
KPIs that are connected to these topics.

【Materiality identification process】

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Earth Corporation

Responding to Climate
ChangeSTEP 1

STEP 2

STEP 3

Selection ofissues

Evaluation ofimportance

Identificationof materiality

Evaluation of the importance of eachissue to our business, and formulationof draft materiality by the CSR and
Sustainability Committee and relevant
department heads, based on ourcompany’s overall strategic direction

Approval of five materiality
items following meetings withsenior management and outside
directors, and following review
by the Board of Directors

Key topics and main measures

Targets and KPIs

We are reducing our CO2 emissions.

CO2 emission reduction compared to 2020 (Scope 1 + 2)
• 14% reduction (by 2023) • 28% reduction (by 2026) • 46% reduction (by 2030)

We are proceeding with the adoption of electric power generatedusing renewable energy.

Switching to renewable energy:• Adoption of renewable energy at our plants (renewable energy rate: 60%) (by 2023)• Adoption of renewable energy at our research institutes (renewable energy rate: 90%) (by 2026)• Adoption of renewable energy at our offices* (renewable energy rate: 95%) (by 2030)* Excluding rented offices

Concern for the Issues
Affecting the Global
Environment

We used the following process to identify our materiality.

Selection of issues, taking into
account international frameworks
and guidelines, etc., in the areaof sustainability

Materiality(key issues)

Promoting Sustainable
Procurement
Creating workplaces
that support activities by
diverse individuals

Provision of Products andServices That Contributetoward Safe andComfortable Lifestyles

We are enhancing the efficiency of water usage relating to
manufacturing (from R&D through to production).

Enhancement of water usage efficiency compared to 2020:• 3% enhancement (by 2023) • 6% enhancement (by 2026)• 10% enhancement (by 2030)

We are making effective use of resources with the aim of helping
to realize the resource-circulating society.

Reducing emission of industrial waste, etc. from plants and research institutes to zero:• Survey of the current status of waste processing contractors, and adjustments (by 2023)• Realize zero waste emissions from plants and research institutes (by 2026)• Maintain zero waste emissions from plants and research institutes (by 2030)

Stipulate Earth ECO Standards, and expand the scope ofenvironment-friendly products.

Overview of the Earth ECO Standards

Promote procurement of environment-friendly packaging materials

Forest Stewardship Council® (FSC®) certified paper usage rate:• Usage rate: 10% or more (by 2023) • Usage rate: 30% or more (by 2026)• Usage rate: 70% or more (by 2030)

We are encouraging employees to take their annual paid leave
entitlement.

Paid leave usage rate: Maintain at a level of at least 70%(2023, 2026 and 2030)

To support female empowerment, we are raising the share ofwomen in management-level positions.

Female manager ratio:• At least 10% (by 2023) • At least 18% (by 2026) • At least 30% (by 2030)

To reduce the number of major quality incidents that negatively
impact customer satisfaction and trust to zero, we are raising theperiodic quality inspection implementation rate both at our own
plants and at contractors’ factories.

Periodic quality inspection implementation rate: Maintain at 100%
(2023, 2026 and 2030)

To ensure compliance with relevant laws and reduce theincidence of major violations to zero, we are enhancing theimplementation rate for the annual education and training plan.

Education and training implementation rate: Maintain at 100%
(2023, 2026 and 2030)

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Materiality

Responding to
Climate Change

Environmental awarenessThe need to mitigate and respond to climate change, which is the most serious
global environmental issue today, may have an impact on the expansion of
our business over the medium to long term. There is also a possibility that
abnormal weather conditions (such as rising average temperatures andchanging rainfall patterns) resulting from climate change may affect ourbusiness’s value chain as a whole. We recognize that the response to climatechange is an important management issue that relates to medium- and longterm corporate value.

Basic approach
As an enterprise whose corporate philosophy is “We act to live in harmony with the Earth,”
we carry out our business activities in congruence with the global environment. We
recognize that climate change and the response to it represents an important managerial
issue that is related to corporate value, and we are working actively to address this issue inall of our businesses.
We are taking the following actions to contribute toward the transition to a post-carbon society.
For the related KPIs, see p.11

• We are reducing our CO2 emissions.
• We are proceeding with the adoption of electric power generated using renewableenergy.

Framework
President Kawabata serves as Chairman of the CSR and Sustainability Committee, bearing direct responsibility for the supervision andmanagement of initiatives including the creation of policies and strategies for responding to climate change, putting in place risk management
structures, establishing targets and indexes, and managing progress. We have put in place a structure for responding to climate change
under the direction of the Board of Directors, by first conducting discussions at meetings of the Strategy Council*, and then deciding on andreviewing policies and strategies related to these responses, while also reporting to the Board of Directors on the achievement of targets.

* Strategy Council:
The Strategy Council is a body established to undertake preliminary deliberation regarding
important matters such as matters put on the agenda for the Board of Directors, and mattersrequiring a decision by the President and Representative Director.

Chair: President and Representative Director			
Members: Executive officers appointed by the President and Representative Director
Frequency of meetings: As necessary

Initiatives relating to the response to climate change
We are implementing measures to help keep climate change under control, and to adapt to climate change.

• Energy-saving initiatives• Shifting over to the use of renewable energy

We have adopted electric power usage visualization systems
at the plants and research institutes, which account formost of our electric power usage. We have also established
an Energy-saving Promotion Committee and Earth Group
Production Departments Meeting, which are linked to Groupwide energy-saving
activities.

Our Ako Plant has installed solar power generating equipment on one of the productionbuildings, and by switching over to using electric power derived from renewable energy
through the Renewable Energy ECO Plan provided by Kansai Electric Power Co., Inc., theplant has succeeded in reducing net CO2 emissions associated with electric power usage
to zero. Going forward, we intend to expand the use of renewable energy in our plants,
research institutes and offices, with the aim of realizing our CO2 emissions reduction targetof cutting emissions by at least 46% by 2030 compared to FY2020.
For more details about the Responding to Climate
Change aspect of our materiality, please visit our
corporate website.

Electric power usage visualization system

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Earth Corporation

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Materiality

Concern for theIssues Affecting
the Global
Environment

Environmental awarenessGlobal environmental pollution and the lack of resources are barriers to theformation of a sustainable, recycling-oriented society. For Earth Corporation,
attention to environmental issues throughout the entire value chain is directlytied into the sustainability of the company’s business. We are aware that our
initiatives aimed at effectively using resources and reducing waste not only
mitigate business risks by reducing environmental impact at every stage,
from raw material procurement to product design and manufacture, use, anddisposal; they also contribute to maintaining and improving the company’s
brand and corporate value.

Basic approach

Earth Corporation has put in place an
Environmental Management Structure to resolve
global environmental issues.

Production units

Katsunori Kawabata, President and Representative Director
Internal Auditing
Dept.
Environmental Conservation Committee

Logistics units

Research &Development
Headquarters

Business units

Overseas units

Overseas subsidiaries

Global Management
Headquarters(Located within the Head Oﬃce)

Research and Development
Headquarters

Research institutes(Located within the Head Oﬃce)(Located within the Sakoshi Plant)

Local Offices, etc.

Local Offices, etc.

Kyushu BranchNaka-Nippon Branch

Local Offices, etc.

Local Offices, etc.

Kita-Nippon Branch

Local Offices, etc.

Chugoku/Shikoku
BranchKanto Region Area 2 Branch
Kanto Region Area 3 Branch

Local Offices, etc.

Kansai Branch

Retail Account Sales Dept.
Kanto Region Area 1 Branch

Head Office
Act Terrace

Group Supply Chain
Management Dept.

(Located within the Sakoshi Plant)

Kakegawa Plant

Earth Corporation

Framework

Ako Plant

14• We are enhancing the efficiency of water usage relating to manufacturing (from R&D through to production).
• We are making effective use of resources with the aim of helping to realize the resource-circulating society.
• We have drawn up the Earth ECO Standards, and we are promoting expansion of environmentally-friendly products.

Sakoshi Plant

Earth Corporation has declared that in accordance with our corporate philosophy of “We
act to live in harmony with the Earth,” we will strive to take the protection of the global
environment into account in all our business activities, and to actively contribute to the livesof the people of the world. Current issues include global environmental pollution and thelack of resources. Given that environmental problems throughout the value chain impact not
only the company’s business but the world’s sustainability, our basic stance is to continuallypromote initiatives aimed at reducing environmental impact.

In order to demonstrate concern for global environmental issues and contribute toward reducing the burden on the environment, we are
implementing the following initiatives. For the related KPIs, see p.11

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ondahmin• M(concentrated
type)

Initiatives relating to global environmental issues
We are implementing various initiatives that embody concern for global environmental issues.

Environmentally-friendly
product development
ustainable product• Sdevelopment
By making liquid-type products moreconcentrated, we can not only reduce
the amount of plastic used, but also
reduce the CO2 emissions deriving frommanufacturing and transport, by reducing
the absolute quantity of the liquid agents.
We are working to develop products thatare both easy to use for the customer—in terms of being lightweight and easy
to carry around, not taking up too muchstorage space, etc.—and environmentallyfriendly.

•Product life extension

Giving products a longer lifespan not only
enhances convenience for the customer,
it also contributes toward resource
conservation and reduction in the amountof household waste generated. We arealso making repeated improvements toour existing products so that they can beused for longer.

• Kaizen activities• Adopting a “3R” perspective in product creation

Our Kaizen Project was launchedin 2019, with team members that
included younger employees from eachdepartment. We have proceeded withnew activities, such as the Convenient
Products Contest, and the number of
proposals submitted has risen to 5,290(representing 114% of the total in theprevious year), generating around 27.2
million yen in revenue. Going forward,
we will continue with workplace reforms
along these lines.

1. The “Reduce” perspective• Extending shelf life
In our Beauty and Health Department,
we recognize the need to contributetoward reducing food loss, which is a
global problem, and we are implementing
initiatives in this area. By adjusting raw
materials and production processes, wehave extended the shelf life of six productitems—including the Placenta C Jelly—
from 18 months to 25 months.

Example product: Sukki-ri! Air Freshener
Bottles73-tons
reduction

Lower containers

Lower containers

18-tons
reduction

General household use

Earth Corporation▶︎Plastic usage is being reduced byaround 251 tons in relation to 88
product items.

Mondahmin
Peppermint
Concentrated type
220 mL

72-tons
reduction

Toilet use

2. The “Reuse” perspective

Example product: Raku Hapi Alcohol Jyokin EX Disinfectant Spray 420 mL Original container

Bottlere-use
400mL

740mL

5L

Refill product lineup tailored
to meet customers’ needs▶︎We have 17 product items where
the original bottle can be reusedthrough refilling. The refill packs
are made from plastic film, whichuses less plastic material thanthe original bottles, enabling a
reduction in plastic usage ofaround 252 tons.

Mondahmin
MedicalConcentrated type
220 mL

Example product:▶︎Recycled plastic is used for 68
product items, with total annual
usage of around 1,084 tons(around 1.5 times as much as theprevious year).

(Original container)

Use ofrecycled plastic(Packaging carton)

Use ofrecycled paper

Black Cap▶︎Of the 154 product items forwhich paper containers are used,recycled paper is used in 87% of
items.

220mL

and overhauling ofenvironmentally-friendly typeproducts

With Sukki-ri!, by positioning the bottle that
contains the fragrance-generating liquid on
the top, it is possible to use up the productright to the last drop, making this a designthat helps to realize a sustainable society.
The amount of plastic used per container
has also been
reduced byaround 14–17%(which is
expected toreduce plastic
consumption byaround 180 tons
per year).

nvironmentally-friendly• Epromotional
materials
The Sales Relations Division plays animportant role in integrating sales-related
information such as customers’ views,
store information and sales trends.
Particularly in regard to the productionof sales promotion materials, it aims toensure that these are both user-friendly
and environmentally-friendly, taking into
account the need to consider weightand ease of use, waste reduction, plastic
usage reduction, use of FSC® certified
paper, and reducing the burden on theenvironment deriving from transportation.

Earth ECO Standards
With the aim of realizing measures that help
to create a sustainable environment, wehave formulated the Earth ECO Standards,
our own unique environmental standards topromote the creation of environmentallyfriendly products. The Earth ECO Standards
are voluntary standards designed to help
achieve the six goals out of 17 SDGs that
relate to the environment or manufacturing.
Starting from 2023, products that
conform to the Earth ECO Standards bear
the Act For ECO Mark.

Sales promotion materials that do not
require an outer packing case. By printing
advertising content, etc. on the interior
surface of the box used for packaging, weare contributing toward a reduction in thequantity of outer packing cases (made ofcardboard) that need to be disposed of as
waste after delivery.

3. The “Recycle” perspective

Earth Bug Repelling Net EX

16

Bottles

17-tons
reduction

While maintaining Mondahmin’s higheffectiveness and user-friendly taste, wehave succeeded in developing technologythat allows us to make this product moreconcentrated. Analysis of the number oftimes that the concentrated type can beused compared to the regular type showsthat it can reduce the amount of waste
plastic generated by around 72%.

edefining of zero• Rresidualliquid content

1080mL×2 bottles

This single bottle can be used approximately
the same number of times as two extra-large(1080 mL) bottles (assuming that 2 mL is used each time)

For more details about the Concern for the Issues
Affecting the Global Environment aspect of ourmateriality, please visit our corporate website.

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Materiality

Promoting
Sustainable
Procurement

Environmental awarenessWe are promoting sustainable procurement, based on our corporate
philosophy of “We act to live in harmony with the Earth.” We recognize thatbuilding partnerships with all of our business partners, maintaining ethicalrelationships that are fair and equitable, and promoting procurement thattakes into account human rights, health and safety, and the environment, will
not only lead to corporate value creation for our company but also contributetoward the development of a sustainable society.

Basic approach
Our company has adopted a corporate philosophy of “We act to live in harmony with the
Earth,” and we believe that the realization of this philosophy constitutes, in and of itself, therealization of corporate social responsibility (CSR). In this regard, procurement activities
cannot be undertaken successfully without seeking to maintain harmony with the planet,
and we believe that, in order to realize this, it is vitally important to promote CSR-aware
procurement activities together with our business partners, with the aim of contributing
toward the sustainable development of society.
In 2017, we announced the Earth Corporation’s CSR-aware Procurement Guidelines,
and began undertaking CSR-aware procurement. These guidelines were revised inAugust 2020 in light of recent CSR-related trends and the expectations of the international
community, and we continue to familiarize our business partners with the guidelines on aregular basis.
To contribute toward the realization of a sustainable society and a sustainable
environment, we take environmental considerations into account when purchasing
packaging materials. For the related KPIs, see p.11
Procurement Code of Conduct

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Earth Corporation

Initiatives relating to sustainable procurement
We implement various activities aimed at the realization of sustainable procurement.
activities• Aforwareness-raisingbusiness partners
We carry out the following activities tofamiliarize business partners with our
Procurement Code of Conduct andwith the Earth Corporation’s CSR-aware
Procurement Guidelines, and to enable
them to implement the content of thepolicy and guidelines together with us.
So as to enhance business partners’
awareness of their own CSR initiatives andencourage them to continue to strengthen
these initiatives, we ask them to fill out
a CSR Self-assessment Questionnaire.
This activity has been implemented since2017, and as of June 2022, we hadreceived completed questionnaires from198 out of 224 raw materials producers
and contracted manufacturers.

Based on the collated results of the
responses to the CSR Self-assessment
Questionnaire obtained thanks to business
partners’ collaboration, we share theresults with business partners throughindividual meetings, etc., in line with ourbelief that we need to contribute toward
the sustainable development of society as
a whole. Going forward, we will continue
to implement this activity with respect tonew business partners, and with regard toindirect transactions also, we will carry out
raw materials procurement in accordancewith the key points of our guidelines.

• FSC certification®

In 2020, we switched over to using FSC®
certified paper (paper made from wood
produced in forests that are deemed
to be appropriately managed, or fromother materials linked to appropriate useof forest resources) for the paper tubes
used in our Bath Roman products. Goingforward, we will continue to undertake
product development and raw materials
procurement in such a way as to beable to provide customers with productsthat are made responsibly and with due
consideration for the environment.

Bath Roman
Warm Yuzu fragrance

For more details about the Promoting Sustainable
Procurement aspect of our materiality, please visit
our corporate website.

Earth Corporation’s CSR-aware Procurement Guidelines
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Materiality

Creating
workplaces that
support activities by
diverse individuals

Environmental awarenessIn line with our core Earth Value of “Diversity,” we aim to realize a workplaceenvironment that supports effective utilization of diverse human assets.
We recognize that building an environment in which every employee canachieve personal growth and feel motivated, by putting in place a workplaceenvironment that gives due consideration to employees’ health and safety andby ensuring that employees are treated fairly with respect for human rights
and the safeguarding of diversity, will lead to long-term value creation for ourcompany.

Aiming to realize a workplace environmentthat supports the effective utilization ofdiverse human talent

Promotion of Diversity &Inclusion

Building a workplace environment that gives
due consideration to employees’ health andsafetyHealth Management
Basic approach
Based on our core Earth Value of “Diversity,” the Earth Group aims to realize a workplaceenvironment that supports effective utilization of diverse human assets.
To clarify the measures that we are implementing with respect to human assets in orderto realize our corporate philosophy and management goals, we have formulated the Earth
Human Assets Philosophy and the Earth Human Assets Management Policy .
Earth Human Assets Philosophy

Earth Human Assets Management Policy

The Earth Group implements the following measures in order to realize aworkplace environment that supports effective utilization of diverse humanassets. For the related KPIs, see p.11
• We are encouraging employees to take their annual paid leave entitlement.
• To support female empowerment, we are raising the share of women in
management-level positions.
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Earth Corporation

The Earth Group Global Code of Conduct specifies the need to prevent violation of humanrights, accept diversity (individualities) and exert autonomy. These are rules that all EarthGroup corporate officers and employees are expected to abide by when conducting
business activities in countries with different lifestyles, habits, culture, laws and rules.
Earth Diversity Declaration

We view employee health management as an important management issue, and in 2019
we formulated the Earth Health Declaration to promote health management in concrete
form. We are working to enhance the physical and mental health of employees and theirfamily members. In 2020, we were selected for the first time forinclusion in the “White 500” (top 500) Certified Health & Productivity
Management Outstanding Organizations, a certification program
jointly organized by the Ministry of Economy, Trade and Industry (METI)
and the Nippon Kenko Kaigi. We were also included in the “White
500” in 2021 and 2022.
Earth Health Declaration

Framework【Health and safety initiatives】【Organizational framework for health management】

In order to realize a healthy, safe workplace environment, we haveestablished the following committees and subcommittees, andimplemented related activities.

We have established the Committee for Promoting the Healthof Employees and Their Family Members, a cross-company
organization which is chaired by the Senior Executive Officer.
In line with the company’s annual health management plan,
the committee meets once a month, and it undertakes thedissemination of information both within and outside the company,
the holding of health seminars, and the implementing of preventive
vaccinations in the office, etc.

• Safety and Hygiene Committee and Hygiene Committee• Health and Safety Subcommittee• Safe Driving Management Activities• Compliance Committee (including the internal reporting[whistleblower] contact windows)

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Initiatives relating to the realization of workplace environment that supports effective utilization of diverse human assets
We are implementing various initiatives to realize workplace environment that supports effective utilization of diverse
human assets.

From “resources” to“assets”
Earth Corporation views employees as
being highly valuable sources of corporate
development, and as such we see themas being “assets” rather than “resources.”
We believe that it is important to focus on
our human assets in order to realize theInitiatives relating tohuman asset cultivation
With the aim of cultivating self-directed
human assets, we implement grade-

three Earth Values of “One Earth, Open
communication, Diversity.”
By improving the measures adopted
in our personnel system (including
recruitment, education and training,
personnel reassignments, salaries,
appraisal system, workstyle reform,
diversity, etc.), we are working toenhance employee motivation andstrengthen employee capabilities.

specific training and training for specificpurposes, so as to stimulate employee
motivation, help them develop theircareers, and enhance their knowledge
and capabilities.

Harassment prevention
initiatives
Earth Corporation’s employment
rules contain stipulations prohibiting
workplace bullying, sexual harassment,or harassment of employees basedon gender or in relation to pregnancy,
childbirth, taking time off work forchildcare or to look after elderly relatives,
etc. In addition, for the purpose ofcorrectly understanding and preventing
harassment, we are continuously
conducting online and face-to-faceharassment prevention training for

Initiatives relating toevaluation and treatmentof employees
Evaluation is implemented in accordancewith employees’ employment management
category. With regard to human asset
management, we make effective useof evaluation results when deciding on

Training for new employees (lecture
introducing our products) in progress

22

Earth Corporation

all employees. Furthermore in orderfor employees to be able to seek
consultations with peace of mind, we
have established a new Harassment
and Human Relations Hotline andOccupational Health Nurse Internal
Consultation Window, and we are aiming
to realize an employee-friendly workplaceenvironment where people can work
enthusiastically without harassment.

the treatment of employees in terms ofroles, salaries, etc., and in the cultivationof self-directed human assets capableof taking on challenges. By ensuring that
evaluations are transparent and clarifying
the accountability of supervisors, we
strive to create an environment in which
employees can work with satisfaction, andto provide support for employees’ personal
growth.

Initiatives relating todiversity & inclusionof initiatives aimed• Patromotion
furthering the dynamic
engagement of female
employees

Around 40% of Earth Corporation
employees are women. We are
implementing measures to create an
employee-friendly working environment
so that employees can continue to workwith enthusiasm regardless of whichlife stage they have reached. Earth
Corporation has set itself the target ofincreasing the share of managers who
are female to at least 30% by 2030, andwe continue to implement measures tohelp achieve this, including the provisionof training to help female employees plan
their careers.

romoting the employment of• Ppersons
with disabilities

topics that we need to address in ourefforts to promote diversity. In 2021,
we implemented e-learning to help
employees learn the basics of LGBTand sexual orientation & gender identity
matters. In 2022 we made improvements
to our internal rules, held seminars withexternal lecturers, and established aconsultation window for LGBT matters.

• Promoting work-life balance
We have put in place the systems needed
for living support, so that employees
can balance their work and their other
responsibilities when dealing withchildcare, senior care, or personal injury
or illness.

Workstyle and Workplace
Environment reform
initiatives
Besides the normalization of working
hours and encouraging employees totake their paid leave entitlement, we havealso adopted a home-working systemand staggered working hours system, andput new working methods into practice,in order to realize flexible workstyles.
In addition, by putting in place the IT

infrastructure needed to promote hotdesking—including having application
documents in electronic form (going
paperless), adopting digital seals, andreducing the amount of space needed for
document storage—we are proceedingwith the building of a working environmentthat supports flexible workstyles, enabling
employees to work effectively regardlessof location.

Poster encouraging the adoptionof improved meeting formats
Employees can make free use of
the Act Café

2.45% of our employees are persons
with disabilities, which is in compliancewith the statutory requirement.

• LGBT-related measures
We view LGBT related issues asconstituting one of the most important

For more details about the Creating workplaces that support activities
by diverse individuals aspect of our materiality, please visit our
corporate website.

Training for managers

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23

Materiality

Provision of Products
and Services That
Contribute toward
Safe and Comfortable
Lifestyles

Environmental awarenessIn our company’s manufacturing operations, our most important responsibility
to society is to continue providing safe, reliable products and services that
customers view as being of high quality. We recognize that the steadyfulfilment of this social responsibility is a precondition for safeguarding andenhancing corporate value, and constitutes the foundation for our creation of
corporate value.

Basic approach• In order to reduce to zero the incidence of major quality incidents that could impact customer satisfaction and lose customers’
trust, we are enhancing the periodic quality audit implementation rate at both our own plants and those of our contracted
manufacturers.
• To ensure compliance with relevant laws and regulations, and reduce the incidence of major incidents that involve complianceviolations to zero, we are enhancing the annual education and training plan implementation rate.

Framework

In line with our corporate philosophy, we at the Earth Group strive, in every stage of thevalue chain—including product development, materials procurement, production, logistics,
sales and customer communication—to provide customers with safe, reliable products andservices.

Earth Corporation’s Quality Assurance—Basic Policy

The Customer Service Department undertakes the internaldissemination of customer insights in reports such as annual
and monthly reports, and in the “Voice of Customers” internal
website, and also works to expand usage of a text mining
system that enables relevant departments to research and utilize
customer insights from their own perspective. In addition, it liaises
directly with relevant departments regarding the proposal andimplementation of suggestions for improvement raised based on
customer insights at meetings such as the Customer Insights
Discussion Meeting*, the Meeting to Discuss Points of Interest,
and the Voice of Customer Meeting.
* This is a meeting attended by senior managers, the holding of which is recommended by
the Association of Consumer Affairs Professionals.

Customers
Inquiries
Comments

Providing even better products and services

1. B
 y listening attentively to customers’ insights, and providing safe, reliable products andservices, we create new value.
2. B
 y striving to ensure high quality right up to the point at which the product is used, we
will build a brand that customers can trust.
3. B esides maintaining compliance with all legal requirements, in line with our unique Quality
Management System we obtain quality-related information from countries and regions
around the world, and strive to enhance the quality of the safe, reliable products that we
provide.
Earth Corporation’s R&D—Basic Policy

The Earth Group implements the following initiatives in order to provide products and services that contribute toward safe and comfortable
lifestyles. For the related KPIs, see p.11

Responding to inquiries
and provision of information

Sales

Customer Service Dept.
TACO System(Tactical Antenna for Consumers’ Opinions)
Consultation support, and accumulation of consultation content data
Text mining system
Analysis and dissemination

Research Development

Quality
Marketing Production Sales
assurance

PR

EMAL
COREE
system(Collect
Opinionsby
R&E Ex)

Liaison with relevant departments

Earth Corporation’s Customer Consultation—Basic Policy

24

Earth Corporation

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25

3. Ensuring the continued
reliability and safety of our
products

Initiatives relating to the provision of products and services
With the aim of reducing the burden on the environment and helping to create the resource-circulating society, we are
implementing measures that include global warming prevention, resource saving, waste reduction, chemical substanceusage reduction and appropriate management of chemical substances throughout the value chain, from productdevelopment and materials procurement through production and logistics to sales.
Initiatives adopted from acustomer-focused perspective【R&D】

roduct development that• Pbenefitssociety

Iyana Mushi ZEROdeKNIGHT

Launched in February 2022, Iyana
Mushi ZEROdeKNIGHT is an insecticide
for eliminating harmful insect pests
which uses Tenebenal™, a new【Quality assurance】

active ingredient. Tenebenal™ is an
insecticide ingredient with a new modeof action. Not only is it very effective at
eliminating a wide range of insect pests,
the effects of a single application last fora year, an amazingly long time to havecontinuous effectiveness. Iyana Mushi
ZEROdeKNIGHT is the first insecticide
for household use in the world to include
Tenebenal™ as an ingredient.
Going forward, we will contributetoward enhancing the quality of lifeof people throughout the world bydeveloping more products that use
Tenebenal™.

1. Safety considerations fortesting personnel when
performing product testing
We perform evaluation of raw materials
based on appropriate test items andmethods; for products, we implement
the statutorily required test items, andalso other test items based on productfunctions.
We are proceeding with theautomation of testing that uses organic
solvents or reagents with large quantitiesof specimens at the same time, with theaim of both enhancing test reliability andoperational efficiency and ensuring thesafety of testing personnel.

• Basic approach to intellectual property
By adopting a proactive approach tosecuring intellectual property right for the
results of our R&D efforts, we strive tomaintain our competitiveness. We also
work to maintain and effectively utilize
those patents and design rights that can
provide benefits for our company.

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Earth Corporation

275

Design rights

173

Note: As of May 23, 2022
(Japan only)

No. of patents registered over the five-year period from 2017 to 2021

• Mosquito Repellent Spots
With growing awareness throughout
Japan of the need to be alert for insectborne infectious diseases—for example,
in 2021 the number of people affectedby Severe Fever with Thrombocytopenia
Syndrome, an infectious disease whichis spread by ticks, was the highest
on record—as part of our insect biteprevention awareness-raising activities,
we organize Mosquito Repellent Spotsat the venues for sports competitions
and other special events. We consider
spreading awareness of how to tackle
insect-borne infectious diseases to be
an important mission for us, and, going
forward, we will be using Mosquito
Repellent Spots to expand the scope of
our awareness-raising activities, so that
we can make a contribution, to the bestof our ability, toward reducing the harmthat these diseases cause.

• Insect Control Seminar
As an initiative aimed at fostering wider
understanding of insect-borne infectious
diseases and more widespread adoptionof the correct methods of using insect
control products, we held the Earth Insect
Control Seminar 2022. This seminar,
which was being held for the third time in
2022, had as its topic “Other Infectious
Diseases Besides COVID-19 That We
Need to Pay Attention to.” In the future,
we will continue to implement insect biteprevention awareness-raising activities todisseminate highly reliable information,
through collaboration with experts.

nitiatives to combat dengue• Ifeverin Vietnam
Starting from 2021, Earth Corporation
has been supporting the World Mosquito
Program (WMP)* campaign to bringdengue fever under control in Thu
Dau Mot City, Binh Duong Province,
Vietnam. Earth Corporation shares thesame objectives as the WMP, and will beworking together with the WMP to help
realize the SDGs.
* WMP is a non-profit initiative establishedby researchers at Monash University inAustralia to protect people throughout
the world from mosquito-borne infectious
diseases.

2. Implementation of final
product usage testing from acustomer-focused perspective

No. of intellectual property rights heldPatents

Our products are manufactured inaccordance with the requirements of
the Act on Securing Quality, Efficacy
and Safety of Products Including
Pharmaceuticals and Medical Devices
and other relevant laws.
To maintain our quality standards, theProducts Quality Assurance Department
and the production units implement
regular study sessions and quality audits,
and we also implement quality audits withrespect to our contracted manufacturers,
both within and outside Japan. In
addition, we aim to further enhance
the quality of our products by providing
feedback to the design and production
units regarding the views and requests
received from customers.
To prevent the falsification of test
data, we use the quality management
system for management of test devices
and compilation of test result reports to
set login controls, set passwords, andensure the reliability of data.

Initiatives to provide
protection from danger

Note: Based on the date ofregistration; Japan only

Fiscal year of registration

2017

2018

2019

2020

2021

No. of patents registered

24

25

23

33

34

To enable customers to use our productswith peace of mind, we perform testing
based on the scenarios in whichcustomers will actually be using the
product.

Automated specimen processing device
for measuring the quantity of the active
ingredient in our ONPO productFor more details about the Provision of
Products and Services That Contributetoward Safe and Comfortable Lifestyles
aspect of our materiality, please visit our
corporate website.

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27

Strengthening
the Management
Infrastructure

Helping to Address Society’s Problems through Our Business

Environmental awareness
Earth Corporation is working to strengthen corporate governance, and all
corporate officers and employees implement compliance thoroughly in linewith statutory requirements and with high corporate ethics standards. In
addition, we undertake appropriate management of various risks that may
affect our business activities, we realize fair transactions through thoroughcorruption prevention, and we recognize the importance of carrying out
management in a manner that wins the trust of all stakeholders.
Corporate governanceRisk management

Compliance

Earth Group Global Code of Conduct
For more details about
Strengthening the Management
Infrastructure, please visit our
corporate website.

【ESG data】
Our data relating to sustainability initiatives is broken down into three categories: E(Environmental), S (Social) and G (Governance).
In principle, these data relate to initiatives implemented during the period from January 1,
2022 to December 31, 2022.
For more details about ESG data,
please visit our corporatewebsite.

28

Earth Corporation

With increasing importance being attached to CSR activities by corporations and other organizations, and with growing interest in education-related
CSR, we are implementing various activities that include dispatching employees to give lectures in schools (visiting classes), holding special events,
developing teaching materials, providing samples, arranging visits to our facilities, and implementing workplace experience programs, etc.
Educational and awarenessraising activities• Education-related CSR
Participation in educational activities
by business enterprises in their roleas corporate citizens is referred to as“education-related CSR.” We implement
initiatives across various fields in oursocial contribution activities, and webelieve that, by using education-related
CSR to provide children and local
residents with accurate knowledge about
insect pests that cause direct harm tohumans, we can help them to protect
themselves from insect-borne infectious
diseases, and help to prevent the spreadof such diseases. In addition, by making
available more than 100 species of
insects that are bred by our ResearchLaboratories for use in research andteaching programs by research institutes
and high schools, we play a useful role insupporting the development of scienceand the cultivation of human assets.
As part of our education-related
CSR activities, we have provided insects

bred by Earth Corporation for use inuniversities and high schools, and wehave also implemented 15 visiting classes
at elementary schools, junior high schools
and senior high schools.

Sponsorship for sportingand cultural events• The Earth Mondahmin Cup
The Earth Mondahmin Cup is a women’s
professional golf tour that was first held in
2012, and which was held for the 11th timegovernment authorities

local government authorities with our knowhow
and the latest technologies, we are helping toaddress a wide range of societal problems,
including public health and hygiene, educationand disaster preparedness, and we are also
contributing toward the sustainable, healthy
development of local residents and the local
community.

On March 24, 2020, Earth Corporation signed
its first comprehensive alliance agreement
relating to “Enabling local communities toenjoy healthy lifestyles with safety and peaceof mind” with Tokyo’s Chiyoda Ward, andthe company is proceeding with the signingof similar agreements with local government
authorities throughout Japan. By providing

Signing an alliance with Osaka Prefecture

Collaboration with thelocal community
omprehensive alliance• Cagreementswith local

in 2022. We strive to ensure that every Earth
Mondahmin Cup is an memorable event,which remains in heart and retains a placein history, remains in your heart, and retains
a place in history, so as to make a positive
contribution to the development of golf andthe sports sector, and to society as a whole.
Mr. Tatsuya Otsuka, the chair of the Earth
Mondahmin Cup organizing committee, withthe competition winner, Ms. Ayako Kimura

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29

igning of a sponsorship• Sagreementwith the INAC

Kobe Leonessa women’s
professional soccer team

In February 2021, we signed asponsorship agreement to provide
support for INAC Kobe Leonessa, awomen’s professional soccer team. By
implementing collaboration plans withthe team’s players and implementing
promotional activities, we are making a
positive contribution to society, in termsof supporting the cultivation of healthy
young people and promoting sporting
competition.

actively undertake activities that contributetoward the healthy growth of children.

ffective utilization of surplus• Einventory

Supports for regions affectedby natural disasters
ollaboration with Japan• CPlatform
on disaster response

pecial sponsorship for the• Sperformanceof a family-

oriented musical by the Shiki
Theatre Company

We are providing special sponsorshipfor Shiki Theatre Company’s familyoriented musical The Cat Who Wished to
Be a Man and for the Kokoro-no-Gekijo(Theater of the Heart) organized by Shiki
Theatre Company and the Butaigeijutsu
Center. Going forward, we will continue to30

Earth Corporation

Physical support

Starting from 2019, we have been
providing funding assistance for the
emergency support activities in regions
affected by disasters, etc. conducted by
Japan Platform, an NGO which provides
emergency humanitarian aid in timesof conflict or natural disaster, and weare contributing toward the building ofeffective support systems.

Starting from 2022, we have been using
our surplus inventory to participate in the
COSME BANK PROJECT, which provides
daily necessities and cosmetics products
to people who cannot afford them forfinancial reasons. Rather than discarding
surplus inventory as waste, by making
our products available in this way, we
can provide opportunities for people toexperience them (which constitutes useful

External evaluation
ertified Health & Productivity• CManagement
Outstanding

Organization 2022 (“White 500”)

In 2019, we formulated the Earth Health
Declaration, implemented preventive
vaccination on company premises, andhelped to subsidize the cost of preventive
vaccinations against measles and rubella,
as well as holding health-related seminars,
etc. In 2020, we were selected for the
first time for inclusion in the “White 500”
(top 500) Certified Health & Productivity
Management Outstanding Organizations,a certification program jointly organizedPR) , and also provide support for women
who are seeking to gain autonomy, andaddress societal problems relating topoverty, health, welfare, gender equality
and motivation to work.

COSME BANK PROJECT Representative Director
Meyumi Yamada and Earth Corporation President
and Representative Director Katsunori Kawabata

TOP Infections Awards—• SGrand
Prix
Earth Corporation’s MA-T™ won theGrand Prix in the 1st STOP Infections
Awards, which recognizes advanced
measures to combat infectious disease,
and which was one of the awards making
up the 7th Japan Resilience Award(2021), organized by the Association for
Resilience Japan.
We see ourselves as having a mission
to encourage widespread adoption of
MA-T™, so that we can strengthensociety’s trust in it, expand its economic
benefits through the creation of new
industries, and explore its potential for
addressing society’s problems, and so weare undertaking related activities.

by the METI and the Nippon Kenko Kaigi.
We were also included in the “White
500” in 2021 and 2022. Going forward,
we will continue to improve the workplaceenvironment by promoting employee
health management and working to rectify
excessively long working hours.

Participation in related
initiatives
nited Nations Global• UCompact(UNGC)The UNGC is an initiative whereby
business enterprises and otherorganizations can voluntarily participate
in the building of global frameworks forrealizing sustainable growth, by acting
as good corporate citizens in termsof exercising responsible, productive
leadership.
Earth Corporation has signed up
to the UNGC, and in the future we will
be implementing business activities
aimed at addressing various societal
problems, working to promote ESGaware management, CSV business andsustainability activities on a global scalein the environmental (E), social (S) andgovernance (G) fields.

upporting the TCFD
• SRecommendations
In October 2022, Earth Corporation
announced its agreement with the Task
Force on Climate-related Financial
Disclosures (TCFD) Recommendations.
The Earth Group is promoting
sustainability-focused management inorder to contribute toward the realizationof a sustainable society and achievesustainable growth as a businessenterprise. As regards Responding to
Climate Change, which constitutes one
aspect of the Earth Group’s materiality,
we undertake analysis and discussion inline with the TCFD Recommendations,and we are serious about implementing
the disclosure of relevant information.

• CLOMA
Earth Corporation has joined the Japan
Clean Ocean Material Alliance, which
was established with the aim of helping
to solve the problem of marine plastic
waste. Going forward, we will be working
to strengthen environmentally-focused
initiatives that address the problem ofplastic waste in the oceans and also
other problems affecting the global
environment.

President and Representative Director
Katsunori Kawabata and Executive Officer
Sakurai Yoshiaki at the award ceremony

For more details about Helping to Address
Society’s Problems through Our Business,please visit our corporate website.

Sustainability Report 202231