Sustainability
Report 2021

Environment

Sustainability of the SoftBank Group

Society

Governance

SoftBank Group History

Even as our business continues to evolve, our vision remains unchanged.

Founding of the company
and rise of the PC

Supporting the benefitsof broadband in Japan

PC software

Promotinginformation-oriented society

Enriching lives through mobile
communications business

Internet and broadband

Becoming a capital provider driving
the Information Revolution

Mobile broadband

Data / AI

Our vision remains unchanged: Information Revolution – Happiness for everyone
Our business continues to evolve

1981 [Foundation]

1996

2001

2006

2014

2019

Started as a distributor of
packaged software for PCs

Established Yahoo Japan
Corporation through joint
investment with Yahoo! Inc.
in the U.S.

Launched “Yahoo! BB,”a comprehensive broadband
commercial service

Acquired Vodafone K.K.
Entered mobile
communications business“Pepper” is born

Announced launch of
new technology fund
focused on Latin America

2004

2013

Acquired JAPAN TELECOM CO., LTD.
Entered fixed-line
telecommunications business

Acquired Sprint, a U.S.
telecommunications company

1994
Established SoftBank Holdings Inc.
in the U.S. to invest strategically inInternet-related companies

Sustainability Report 2021

2000
Made strategic investment
in Alibaba

2016
Acquired UK-based
Arm, looking aheadto the IoT era

2019
Launched“SoftBank Vision Fund 2”

2017

2020

Launched“SoftBank Vision Fund 1”

Completed merger ofSprint and T-Mobile1

Sustainability of the SoftBank Group

Environment

Society

Governance

Message from the Chairman & CEO

Guided by our corporate philosophy,“Information Revolution — Happiness for everyone,”
the SoftBank Group continues to grow and advancetoward its aim of becoming the corporate groupmost needed by people around the world.
Concerns over climate change, the widening of economic, racial and gender inequality and otherchallenges are becoming increasingly global and are threatening not only companies, but theperpetuity of humankind itself. The spread of COVID-19 has also impacted global economic
activities and the lives of people around the world on an unimaginable scale.
Even under such circumstances, we should not give up on hope for the future. Our history showsthat humanity can utilize its collective wisdom and do its utmost to solve any issue when confronted
by a crisis. During this pandemic, the use of technology has likely increased in every industry sector.
I believe the SoftBank Group will continue to help solve global challenges and support the sustainabilityof humankind and the planet by continuously leading the Information Revolution to accelerateinnovation that drives technological evolution.
Our corporate philosophy, “Information Revolution — Happiness for everyone,” embodies ourdetermination to bring happiness to everyone, even to future generations 300 years from now.
To create a world where people can live in harmony with the earth and realize a sustainable society,
the SoftBank Group will fulfill its responsibilities as the leader of the Information Revolution.

Masayoshi Son
Representative Director, Corporate Officer, Chairman & CEO

Sustainability Report 2021

2

Sustainability of the SoftBank Group

Environment

Society

Governance

About the SoftBank Group

Corporate Philosophy

Segment Information
Segments

Information Revolution – Happiness for everyone

Main businesses

To become the world’s most essential
corporate group
The SoftBank Group’s aim is to contribute to people’s happiness through theInformation Revolution, and to become “the corporate group needed mostby people around the world.” To achieve its vision, the SoftBank Group willcontinue to concentrate its operations in the information industry, andadvance the Information Revolution through investments in leading
technologies essential to the times and the businesses driving innovation.

Cluster of No. 1 Strategy
The SoftBank Group is endeavoring to form a corporate group that willcontinue to grow for the next 300 years by implementing the Cluster of No. 1
Strategy, our unique strategy for adapting to the changing times bycontinuing to change ourselves. The goal of the Cluster of No. 1 Strategy is
to form a diverse group of companies that have outstanding technologies
and business models in specific fields and encourage them to generatesynergies so that they can grow together as the SoftBank Group. Building acluster of leading companies has the advantages of increasing overall
competitiveness and making it easier to reshuffle group companies throughflexible group management.

Net sales(Billions of yen)

Investment Business of Holding
Companies*1

VisionSustainability Report 2021

Core companies

Investment activities by SoftBank Group Corp.
and its subsidiaries

SVF1 and Other SBIA-Managed
Funds*1
Main businesses
Investment activities by SVF1 and SVF2

SoftBank Group Corp.
SoftBank Group Capital Limited
SoftBank Group Japan
Corporation
SB Northstar LP

5,628.2
5,238.9
205.8

238.6
209.8

197.1

SB Investment Advisers (UK)
Limited
SoftBank Vision Fund L.P.
SoftBank Vision Fund II-2 L.P.

SoftBank
Main businesses
Provision of mobile communications
services, sale of mobile devices, andprovision of broadband and other fixedline communications services in Japan

SoftBank Corp.
Z Holdings Corporation

5,204.4
4,862.5

Internet advertising and e-commercebusiness

Arm
Main businesses
Design of microprocessor intellectual
property and related technology

Arm Limited

Sale of software tools and provisionof related services-26.4
Investment Business of Holding Companies*
Arm
Other*2
Reconciliations

1

SVF1 and Other SBIA-Managed Funds*

1

SoftBank

’19

-24.6
’20

(FY)

*1 Net sales are not recorded for this segment as it is not engaged in the sale of goods and services.
*2 Other includes the business results from PayPay Corporation, Fortress Investment Group LLC, SoftBank Latin America Fund,and Fukuoka SoftBank HAWKS Corp.

3

Sustainability of the SoftBank Group

Environment

Society

Governance

Table of Contents / Editorial Policy

Sustainability of the SoftBank Group
Editorial policy
P.1

SoftBank Group History

P.2

Message from the Chairman & CEO

P.3

About the SoftBank Group

P.4

Table of Contents/Editorial Policy

P.5

Message from the
Chief Sustainability Officer

P.9

Feature 1

ESG Initiatives as a Strategic
Investment Holding Company

P.6

Sustainability of the
SoftBank Group

P.13

Feature 2

Our Response to COVID-19

P.15

Feature 3

SoftBank Group’s Resilience
Further Strengthened during the
COVID-19 Pandemic

P.8

Communication with
Stakeholders

The purpose of this report is to communicate the SoftBank Group’sgroup-wide sustainability activities to stakeholders.
By describing the policies and systems in each field and theactivities of each Group company in line with the categories ofEnvironment, Society, and Governance (ESG), the report conveys amore comprehensive picture of the Group’s sustainability activities.
In addition, among the activities during the fiscal year under review,
those we consider to be of particular importance are introduced as“Features.”
Target scope
SoftBank Group Corp. and its Group companies*1Environment
P.18

P.19

P.29

New Office Aiming to Transform Work-styles
P.30

P.22

Promotion of a Decarbonized Society throughthe Energy Businesses

P.23

Promotion of Circular Economy
Enhancing Employee Awareness

P.24

Society
P.25

Respect for Human Rights

P.26

Human Rights Policy	Improving Awareness of Human Rights

Safety Measures in the Event of an Emergency,
including a Pandemic
P.31

Principles for Information Security

Committees
P.37

	Evaluation of the Effectiveness of theBoard of Directors
Approach and Policies on Group Management

Information Security Measures
P.44

	Portfolio Company Governance andInvestment Guidelines Policy
P.38

Supplier Code of Conduct
P.39

Group Compliance Structure	Ethics & Compliance Helpline (Internal
Reporting System)

P.40

Educational/Awareness Programs

Organizational Measures

Notation of company names
The notations of company names have the following definitions
unless otherwise stated.
Notation

Definition

SoftBank Group Corp. or
the Company

SoftBank Group Corp.

The SoftBank Group or
the Group

SoftBank Group Corp. and its Group
companies*1

SoftBank Vision Fund 1 or SVF1

SoftBank Vision Fund L.P. and its
alternative investment vehicles

SoftBank Vision Fund 2 or SVF2

SoftBank Vision Fund II-2 L.P. and its
alternative investment vehicles

SoftBank Vision Funds

A collective term for SoftBank Vision
Fund 1 and 2

SBIA

SB Investment Advisers (UK) Limited

SoftBank Latin America Fund

SoftBank Latin America
Fund L.P.

Personnel Measures

SprintSprint Corporation

Major External ESG Evaluations

Alibaba

Alibaba Group Holding Limited(former Alibaba.com Corporation)

Arm

Arm Limited

T-Mobile

T-Mobile US, Inc.

Physical Measures
Technical Measures

Compliance
SoftBank Group Code of Conduct

Advancement of Women in the Workplace

Sustainability Report 2021

Information Security
	Information Security Governance
Structure

Diversity & Inclusion

Support for LGBTQ Employees

Non-financial Risks

Audit & Supervisory Board Members

Support System for Career Realization

Advancement of Promotion of People with
Disabilities

Financial Risks

P.36

Human Resources Strategy

Support and Promotion of Appreciation of
Foreign Employees	Responses to Risks Surrounding theCompany

P.43



Identifying Risks
Responding to Risks

Corporate GovernanceYear and month of publication
September 2021 (previously published in December 2020)

Risk Management Initiatives

Board Directors

Development of Professionals

P.28

Participation in Our Community

Corporate Governance System

Training to Raise Awareness of Human Rights

Professional Recruitment and Career Development

P.42

Period covered
Fiscal 2020 (April 2020 to March 2021)*2

Guidelines referenced
GRI Standards
Sustainable Development Goals (SDGs)

P.35

Stakeholder Engagement
P.27

	Group Risk and Compliance Committee(GRCC)

Governance
P.34

Risk Management
Risk Management System

Employee Engagement
Identifying and Addressing Labor Risks

Specific Efforts to Reduce Greenhouse Gas
Emissions
Promotion of a Decarbonized Society throughInitiatives

Anti-corruption Initiatives
P.41

Industrial Safety and Health

Reducing Greenhouse Gas Emissions

P.21

Group Policies

Work-style Reform

Environmental Initiatives
Environmental Policy
Efforts to Address Climate Change

Creating a Supportive Working Environment

P.45

Corporate Data

*1 I n principle, Group companies indicate subsidiaries of SoftBank Group
Corp. and may include some associates depending on the description.
*2 This report includes some activities outside this period.

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Sustainability of the SoftBank Group

Environment

Society

Governance

Message from the Chief Sustainability Officer

Message from the
Chief Sustainability Officer

Yoshimitsu Goto
Board Director, Corporate Officer,
Senior Vice President, CFO, CISO & CSusO

Corporate ESG initiatives are becoming increasingly significant amid emerging global risks,such as the spread of COVID-19, that see no end in sight and a rising number of natural
disasters in recent years caused by extreme global weather conditions.
Recognizing their significance, SoftBank Group Corp. built an internal foundation andenhanced information disclosure in fiscal 2020 to further strengthen ESG initiatives. In June
2020, I was appointed as Chief Sustainability Officer (CSusO), and we established our
Sustainability Committee. Since then, we have gained a better understanding of the ESG
initiatives that had been undertaken separately by each Group company, discussed them at
the management level, and began establishing Group-wide policies and targets.
On the environmental front, our major subsidiaries have already taken proactive measures
to fight climate change, such as expanding renewable energy businesses and setting targets
for reducing greenhouse gas emissions. We believe that now is the time to take more
concrete action, and in fiscal 2020, we achieved carbon neutrality. In the future, we will takefurther steps, such as defining climate-related group targets, as we work to reduce theenvironmental impact of the entire Group.

Sustainability Report 2021

Also, as one of our key initiatives as an investment company, we revised the “Portfolio
Company Governance and Investment Guidelines Policy” to incorporate ESG perspectives
into our investment process in May 2021. We made it clear that both opportunities and risks
arising from environmental and social factors should be evaluated within the investment andmonitoring process. In the same manner, as we meet the expectations and demands ofinvestors and other stakeholders and enhance our ESG initiatives, we believe that proactively
encouraging our portfolio companies to take ESG initiatives will contribute significantly tothe sustainable development of society as a whole and the sustainable development of theGroup. Going forward, we will formulate specific implementation plans to evaluate
opportunities and risks at each of our investment business subsidiaries.
We are now at the implementation stage to realize our ESG goals and policies. In addition
to further enhancing nonfinancial information disclosure, we will strive to strengthen our
ESG initiatives throughout the Group so that we can report our progress to investors andother stakeholders.

5Sustainability of the SoftBank Group

Environment

Society

Governance

Sustainability of the SoftBank Group

Sustainability VisionHelp shape the next 300 years for our future generations and the planet
The SoftBank Group’s philosophy, “Information Revolution — Happiness for everyone” embodies our determination to bring happiness to everyone,even to future generations 300 years from now. To create a world where people can live in harmony with the earth, the SoftBank Group will fulfill our
responsibility as leader in the Information Revolution to realize a sustainable society.

Sustainability Principles
characteristics of and social demands of each Group company. We have also defined six
activity themes for the Group to promote its sustainability initiatives autonomously.

SoftBank Group Corp. sets “The SoftBank Group Sustainability Principles” as a guideline
for the Group to appropriately advance sustainability activities. Based on the principles, we
h a v e i d e n t i f i e d m a t e r i a l i s s u e s ( S t r a t e g i c M a t e r i a l I s s u e s ) re f l e c t i n g t h e b u s i n e s s

1

Drive sustainable growth and innovation in society byuniting wisdom and knowledge

2

Take responsibility by responding to emerging issues thatcome with technological advancement

3

Ensure the growth of the future generations and ourbusiness by creating higher quality employment for all

4

Leverage breakthrough technologies to resolve
environmental issues, including energy problems

5

Demonstrate highly transparent governance and integrity
to win further trust of our stakeholders

6

Maximize our potential as a group by joining forces withpeople around the world to make a positive impact on society

Strategic Material Issues *1(Top priority)

Strategic Material Issues
Eight Strategic Material Issues to be prioritized● Climate Strategy● Human Capital Development● Corporate Governance● Anti-corruption● Labor Standards

Importance to stakeholders

Six activity themes – Our direction● Social Supply Chain●●
Innovation
Management● Privacy and Data
Security● Corporate Citizenship● Market Opportunity●
Sustainable Finance● Human Rights● Pollution and Resources●● Environmental Supply Chain● Risk Management● Access to
Communication● Health and Safety●●

Importance to the Group●(Top priority)*1 Colors indicate the six activity themes.

Sustainability Report 2021

6

Environment

Sustainability of the SoftBank Group

Society

Governance

Sustainability of the SoftBank Group

Identifying Material Issues (Strategic Material Issues)
SoftBank Group Corp. classified issues to beaddressed from two perspectives: the importance tostakeholders and to the Group. Among these issues,
we identified eight key issues as Strategic MaterialIssues that should be addressed with priority. As forthe importance to the Group, issues in the major
business sectors in which the Group is engaged are
analyzed to determine the order of priority.

Step 1

Step 2

Step 3

Identification of Issues

Materiality Analysis

Identification of Material Issues

Identify social issues

Analyze the importance of social issues tostakeholders and the Group

Identify the Strategic Material Issues that
the Group should address in the society

Analyze importance from two perspectives:“importance to stakeholders” and “importance to
the Group.”

Identify Strategic Material Issues the Group must
address with a particular priority.

Refer to external guidelines and the opinions ofexperts to identify social issues in the social andbusiness environments surrounding the Group’s
main business sectors.

Sustainability Governance Structure
In promoting sustainability, SoftBank Group Corp. has appointed Yoshimitsu Goto, Board Director,
Corporate Officer, Senior Vice President and Chief Financial Officer (CFO), as its Chief Sustainability
Officer (CSusO). Our aim is to achieve more competitive management by examining risks andopportunities from both financial and non-financial perspectives. We also established the“Sustainability Committee,” which is chaired by the CSusO and composed primarily of Corporate
Officers as its members, to collaborate with related departments and major subsidiaries depending on
the agenda. The Committee regularly discusses important ESG issues surrounding the Group and its
promotion policies, by taking into account the requests from our stakeholders. Also, the content of
the discussions are reported to the Board of Directors.
During fiscal 2020, the Committee met in October 2020 and March 2021. Discussions covered
future action policies regarding an active response to climate change; responsibility for human rights;
responsibility for corporate transactions, including the supply chain and portfolio companies; theintegration of ESG into the investment process; and other important issues for the Group.

Initiatives for the SDGs
SoftBank Group Corp. aims to realize a society where people all over the world can live happily andprosperously. Together with the Group companies that conduct business globally, we will work tocontribute to the United Nation’s Sustainable Development Goals (SDGs) by addressing the six activity
themes identified in our Sustainability Principles.

Sustainability Report 2021

Sustainability governance structure
Board of Directors of SoftBank Group Corp.
Instruct / supervise

ReportSustainability Committee

Instruct /supervise

Chairperson: Chief Sustainability Officer(CSusO)

Secretariat
Sustainability Promotion Group
Related departments

Respond /reportCooperate

Major subsidiaries

P.31

P.28

P.32

P.32
P.33

P.24

P.21

P.28

P.28

P.31

P.22

P.32

P.32

P.32

P.33

P.33

P.23

P.19
P.20
P.21
P.22
P.32

7

Sustainability of the SoftBank Group

Environment

Society

GovernanceCommunication with Stakeholders

The SoftBank Group builds relationships of trust through communication with stakeholders surrounding the Group,
including shareholders/creditors, customers, business partners, employees, governments/administrative agencies and local
communities, and will incorporate their perspectives into our corporate activities.
Shareholders andStakeholders

creditors of the Group

Shareholders/
creditors
Customers who use theGroup’s products andservices

Shareholders/Creditors

Business partners of
the Group

Business
partners

Customers

Society
Employees

Employees of the Groupand their families

Governments/
Administrative agencies
Local communities
NPOs, NGOs, etc.

administrative agencies,
NPOs, NGOs, and otherswith whom we haveA
 nnual General Meeting of Shareholders, earnings
results briefings, investor briefings, etc.
E ngagement with institutional investors (668 cases
in FY2020)
Publication of Annual Reports, Sustainability
Reports, Reports to Shareholders, etc.
E xpansion of information on the websiteP ublication of press releases and notices

Related content in this report
P.9

E SG Initiatives as a Strategic
Investment Holding Company

SoftBank Group’s Resilience Further
Strengthened during the COVID-19
Pandemic
P.34 Corporate Governance
P.15

P.41

ComplianceRisk Management

P.45

M ajor External ESG EvaluationsO ur Response to COVID-19

P.38

Customers

Establishment of the inquiry counter
Expansion of information on the website
Communication through social media, etc.

P.13

Business partners

E stablishment and dissemination of the Supplier
Code of Conduct
Information sharing through our website, Annual
Reports and Sustainability Reports

P.18

EmployeesH olding employee roundtable (twice a year)C onducting employee satisfaction surveys (once ayear)
E stablishment of an internal reporting system/
helplines

P.27

Governments/
administrative
agenciesP olicy proposals and other activities through industry
associations, etc.
-O peration of the Renewable Energy Council and
the GDC Renewable Energy Council- Participation in Japan Climate Initiative

P.21

Local
communitiesP articipation in local communities easures against COVID-19, development of local-M
human resources, support for disaster-stricken
areas, etc.

P.13

O
 ur Response to COVID-19

P.31

P articipation in Our Community

NPOs andNGOsC onducting social contribution activities- Implementation of collaborative projects such as
the next generation leader development program

P.31

P articipation in Our Community

Society

Governments/
local communities,

Communication opportunities and content*1

Environmental PolicyH uman Rights Policy
P.18 P.25 P.38
Supplier Code of Conduct

P.25

Human Resources Strategy
Diversity & Inclusion
P.29 Creating a Supportive Working
EnvironmentP.30 Industrial Safety and HealthP.39 Ethics & Compliance Helpline(Internal Reporting System)
P.28

P romotion of a Decarbonized Society
through Initiatives*1 Describes information related to SoftBank Group Corp.

relationships throughour business activities

Sustainability Report 2021

8

Sustainability of the SoftBank Group

Environment

Society

GovernanceFeature1

ESG Initiatives as a Strategic Investment Holding Company
As a strategic inve stment holding company engaged in global investment activities, we are working to integrate ESG factors into our investment
process in order to enhance the sustainability of our investment activities. In this report, we invited Akitsugu Era, Managing Director and Head ofInvestm ent Stewardship at BlackRock Japan Co., Ltd., one of our shareholders and the world’s largest asset manager, and discuss the requests
and expectations he has for us as a shareholder, and how we should approach ESG as an investment company.

Behind the Fink Letter

Akitsugu Era

Yotaro Agari

Reiko Oda

Managing Director,
Head of Investment StewardshipBlackRock Japan Co., Ltd.

Global Head of Investor Relations
SoftBank Group Corp.

Head of Sustainability Promotion Group,
General Administration Department
SoftBank Group Corp.

Sustainability Report 2021

Agari: The Fink Letter, in which your CEO Larry Fink sends a
message to the CEOs of the companies you invest
in, attracts global attention every year. As aninvestee of your company, we also read the letter
each year, and it seems that in recent years, he has
mentioned ESG in the letter more frequently. Could
you tell us what’s behind this?
Era:
We have been sending the Fink Letter since 2012.
While the key topics of the letter vary depending on
the socioeconomic situation at the time, the coremessage remains consistent that “we are committed
to supporting long-term corporate value creation.”
When we first started sending out the Fink Letter,
we were concerned, especially in the U.S., thatcompanies were focusing too much on the shortterm outcome and that is hindering the long-termvalue creation of companies. Rather than engaging
in excessive share buybacks and distribution of
profits through dividends, companies should bemaking investments for the growth opportunities
and their employees, from a long-term perspective.
Investors should also navigate and support thecompanies from a long-term perspective. These are9Sustainability of the SoftBank GroupFeature1Long-term value creation of the
SoftBank Group

Oda:

Society

Governance

ESG Initiatives as a Strategic Investment Holding Company

thoughts in the background regarding what led toprepare the annual Fink Letter.
Since the message emphasizes topics related tolong-term view, there have naturally been morereferences to ESG in recent years. We focus on roleof the board of directors in articulating long-term
strategy, how they are emphasizing the importanceof purpose, how they are adapting its business to
prepare for the impacts of climate change risks andopportunities, the energy transition and thechanges in society. The reason behind an issuance of
the Fink Letter is to express our thoughts on what
we believe is important, and what might representrisks and opportunities in long-term value creation.
It is also to understand the plans and thoughts fromthe companies’ leaders.

Era:

Environment

In terms of long-term value creation, more than 10
years have passed since the announcement of the
SoftBank Group’s “Next 30-Year Vision”*1 in 2010.
What do you think has been the major progress orchanges?
In the “Next 30-Year Vision,” we reaffirmed our
corporate philosophy of “Information Revolution— Happiness for everyone.” In addition, we haveannounced to become a company that will grow for
the next 300 years as a corporate group needed mostby people around the world, by forming partnerships
with the most outstanding companies at the time in

the information industry, without focusing on
particular technologies or business models.
This was a way of articulating our attitude
towards sustainability, as it conveyed theimportance of thinking about social trends on a 100year basis, rather than on a 10- or 20-year basis,and of always keeping abreast of changes in theworld and continuing to be the most indispensable
company in each situation. In this respect, the visionitself is a long-term one, and remains unchanged in
more than 10 years.
At the time of the announcement, we had astronger focus on telecommunications, and I think
there was a sense that we would continue to makea difference in society through a focus on the IT andtelecommunications industry. However, as we
explained at this year’s General Meeting of
Shareholders under the key phrase “a capitalprovider driving the Information Revolution,” weare now shifting in the direction of becoming agood advocate of superior technologies andbusiness models in the information industry andrealizing our vision as an investment company.
Agari: Our CEO Son sometimes looks back and says,“Things are happening more or less as I expected,
but at a faster pace,” and I also feel that he isbecoming increasingly confident about our vision.
10 years ago, I think we were a hybrid
telecommunications company investing in theinternet domain. Today, the telecommunications
business is part of our portfolio, and the company isincreasingly becoming an investment company. We
are investing in areas that will accelerate innovation
to enrich people’s lives based on AI, such as
healthcare, fintech, and robotics. We are now

realizing what we set out to achieve in our “Next30-Year Vision,” and I believe we are developing ourbusiness in line with this vision.

Integrating ESG into theinvestment business in the
SoftBank GroupEra:

In May 2021, there was an announcement that the
SoftBank Group would integrate environmental andsocial factors into the investment process. What is
the reason behind this decision?
Agari: In the past few years, we have been receiving more
and more questions in our dialogues with investors
about how we integrate ESG into our investment
process as an investment company. Actually, we
have invested in many companies that make positivechanges in terms of the environment and society. To
take advantage of these traditional strengths of our*1 See our corporate website for further details of “Next 30-Year Vision.”

Sustainability Report 2021

10

Sustainability of the SoftBank GroupFeature
1

Era:

Oda:

Environment

Society

Governance

ESG Initiatives as a Strategic Investment Holding Company

company, we decided that we should adopt a moreorganized approach. Our investment may have been
seen as something carried out based on our instincts
and intuition, but through our discussions with ourmanagement team, we decided it is important toestablish a clear system for evaluating the risks andopportunities associated with environmental andsocial factors in the investment process, and explain
it to our stakeholders.
So, the step was mainly to increase transparency of
the investment process, rather than drasticallyshifting to a new investment approach. What are
the key points in evolving this process further?
Currently, we are analyzing what are the key risks
and opportunities among the environmental andsocial factors in each investment area. However,creating a massive playbook won’t help you in thereal world, and we do not want to create
complicated processes that prevent speedy decisionmaking, which is one of our strengths. Our goal is tocreate a simple, yet powerful tool that will help toidentify the risks and opportunities associated withthe environmental and social factors in the businessmodels of potential investments and clarify theissues that we should support after the investment.
There are various approaches and methods ofintegrating ESG into the investment process. We
need to find our best practices through trial anderror.
Agari: Although risks are common to a certain extent,
opportunities vary depending on the businessmodel, so we need to take a close look at themarket needs.
Era:
It has never been more important to achieve theright balance between economic returns and social
returns, both at a high standard. This is easier said
than done, and as the world becomes more
complex, it is becoming increasingly challenging. A
company who does a good job in managing thisbalance will be successful and will be evaluatedhighly, companies who fail to achieve this balance
will be evaluated poorly. We understand that this isa very high expectation, and this is why we would
like to be a partner in this value creation process.

What BlackRock looks for in
engagement
Agari: As an investor, what are some of the things you
focus on when engaging with your portfolio
companies?
Era:
Our engagement focuses on topics that areimportant in pursuing long-term sustainable value
creation. This would include, for example, corporate
philosophy, vision, and awareness of sustainability.
And how these elements are deeply embedded

Sustainability Report 2021

throughout the company, including themanagement team and all employees.
For example, sometimes even for a company
whose public disclosure seems comprehensive,
when we ask questions about the details of theirefforts in sustainability, the only person who cananswer those questions is the direct person in
charge. On the other hand, there are also cases
where the top management is very conscious andpassionate about explaining the company’s
approach to long-term value creation including
sustainability efforts, even though the public
disclosure appears to be limited. This is why weplace an importance on qualitative information
obtained through engagement, which sometimes
cannot be fully understood if you only look at
ESG ratings and public documents. We also sharethese insights achieved from our engagement
internally with our portfolio managers.
Another point to emphasize is that we believe
the materiality of ESG and factors varydepending on the business model, region, and11

Sustainability of the SoftBank GroupFeature
1

Oda:

Era:

Society

Governance

ESG Initiatives as a Strategic Investment Holding Company

society. Therefore it is important to pay attention
to how the world is evolving in order tounderstand the background, respective situationand context, which is not an easy task.
I can relate to what Mr. Era said about focusing on
qualitative aspects. We are currently working tointegrate what we have done qualitatively in theinvestment process into a structure and framework.
However, we also understand that sometimes
intuition is correct, and that there are situations thatare difficult to measure with a uniform standard.
How we strike a balance between these two will
be important for us going forward.

Expectations for the SoftBank
Group from BlackRock as ashareholder
Oda:

Environment

Lastly, as our shareholder, do you have any requests
or expectations for us?
From an investor’s point of view, I think a continuous
effort to enhance transparency on how the SoftBank
Group is achieving the right balance between
offense and defense is extremely important. In otherwords, how the company is balancing risk
management, while making sure it is not missingout on new business opportunities.
Strengthening the form of corporate governanceis very important to investors. However, I believe it iseven more important to make sure that a company
has established a management system that is
focused on long-term value creation, andsimultaneously has an effective governance system
in place to support that value creation. I think it
would be a good idea for the SoftBank Group to

Sustainability Report 2021

clearly articulate the most important matters to yourcompany, the philosophy and values, and what doyou see as the right balance between management
and governance, without taking a one size fits all
approach. To do so, it might be helpful to explain
how your company’s DNA and corporate culture
drives such value creation.
Agari: It is true that Son’s ideas, energy, and leadership arepart of our strength, and also our corporate culture
is not to avoid risks and minimize failures, but rather
to embrace some risks and failures, and take onchallenges in a way that does not strictly adhere toconventional wisdom. On the other hand, ourcompany has strong defensive aspects to ourapproach, and our culture is strongly based on theidea that what’s wrong is wrong, and to correct
failures immediately once found. In addition, active
discussions are held at each Board of Directors
meeting, and we receive frank opinions from
External Board Directors from their respective expert
perspectives. In the future, we may need to makesure to include these aspects in our communication
when we talk about the state of our governance.
Oda: We understand that it is important to build a system,take essential actions, and disclose information witha focus on our strengths and importance of thecompany. We would take into account theseperspectives as an investor and engage in essential
communication with our portfolio companies.
Thank you very much for your valuable comments.

Akitsugu Era
Managing Director,
Head of Investment StewardshipBlackRock Japan Co., Ltd.
As Head of Investment Stewardship in the Investment Division,
Mr. Era is responsible for the exercise of voting rights forJapanese companies addressing corporate governance issues,and established policies and guidelines for the exercise of
voting rights. He joined BlackRock Japan in 2011. Prior tojoining BlackRock, he worked as a corporate governancemanager and fundamental equity analyst at Nikko AssetManagement from 2006. In addition, he served as thepresident of an Internet-related company he founded for sevenyears from 1999. He has also participated in a number ofexternal working groups related to corporate governance,
including those of the Japan Business Federation (Keidanren)and the Ministry of Economy, Trade and Industry. Furthermore,
he has contributed to the Ito Review of “Competitiveness andIncentives for Sustainable Growth – Building Favorable
Relationships between Companies and Investors –,” led by the
Ministry of Economy, Trade and Industry.

See the official website for the company’s details of “BlackRock Japan Co., Ltd.” (available only in Japanese).

12

Sustainability of the SoftBank GroupFeature2

Environment

Society

Governance

Our Response to COVID-19

Our Response to COVID-19: Contributing to the Society with Rapid Assistance in Response to Changing Circumstances
The spread of COVID-19 is having a serious impact on our lives and the economy. The SoftBank Group, which aims to become the corporate group most needed by people aroundthe world, is working to promote initiatives that leverage the strengths of each Group company and to provide various types of support in response to changing circumstances.

SoftBank Group Corp.

SB Coronavirus Inspection Center Corp.*4

Free provision of antibody testing kits and publication of results

Hokkaido PCR Inspection Center opened

We have provided approximately 330,000*3 antibody testing
kits free of charge to medical institutions so that the state of theinfection in Japan could be quickly assessed. Based on the test
results, antibody possession rates and strategies to prevent the
spread of infection were presented.

*4 Currently SB Coronavirus Inspection Center Corp.

SB Coronavirus Inspection Center Corp.

Fukuoka PCR Inspection
Center opened*3 Cumulative total through to July 31, 2021

Major Initiatives of the SoftBank Group in Japan*1
January

2020

Social Situation in Japan

February

Conflicting information wasreported on an unknown virus

March
Temporary closure ofschools and classes

April

May

June

July

Exploring preventive measuresagainst spread of infection

AugustSeptember

OctoberNovember

December

2021

January

February

AGOOP Corp.

SoftBank Robotics Corp.

SoftBank Group Corp.

“Summary on COVID-19” page opened on
Yahoo! News

Distribution of Personal protective equipment (PPE) on
non-profit basis

Free provision of floatingpopulation analytical reports

Support for quarantine
hotels with robots

Established a subsidiary to offer PCR
testing

The page is regularly updatedwith the latest information
officially released by the Prime
Minister’s Office of Japan and
the Ministry of Health, Labourand Welfare, as well as highly
reliable information fromvarious media reports.

Provided personal protective equipment (PPE) to the national government,
local governments, medical institutions, and private companies for no profit.

Started free provision of “Analysis of changes in
the flow of people amid the spread of COVID-19,”
which captures the flow of people in major
stations, downtown areas, and tourist spots
throughout Japan (updated daily). Also signed anagreement with the Ministry of Health, Labor andWelfare to provide information that contributes
to response measures for cluster outbreak.

Provided the humanoid robot“Pepper” and the AI cleaning
robot “Whiz” to quarantine
hotels in Tokyo for people withminor symptoms andasymptomatic patients. They areused for providing information
to guests, talking to them, andcleaning the facilities.

With the aim of preventing the spread of COVID-19
infection and achieving an early normalization of
economic activity through the provision of highfrequency testing, SoftBank Group Corp. establishedCoronavirus Inspection Center Corp.*4 as a subsidiary tooffer PCR testing. It provides high-quality and safe saliva
PCR testing for local governments and private companies
at a low price, charging only for the actual cost.
By the end of July 2021, it had conducted approximately
2 million tests in total.

SoftBank Corp.

Cyber University Inc.

Yahoo Japan Corporation

Support for students and children during school
closureOffering online education platform andworkshops for free to academic institutions

To support online learning, 50GB of additional data wasprovided free of charge for customers aged 25 or younger.
The “Smart Coach” online lesson service was provided free ofcharge to schools and tutoring schools.
The “Emergency Fundraising Project Supporting Children andFamilies During Temporary School Closures” was implemented
to create a place for children and to distribute food.

“Cloud Campus,” anintegrated online
education platform, wasprovided free of charge
to universities and juniorcolleges for one
academic year.

Yahoo! MAP
Resumption of the“Crowd Radar” function*2

SB Coronavirus Inspection Center Corp.
HEALTHCARE TECHNOLOGIES Corp.

Started offering PCR tests for individuals
Began offering PCR testing to individuals using“HELPO,” a healthcare app provided by a HEALTHCARETECHNOLOGIES Corp.
Yahoo Japan Corporation“Vaccine Topics” launched in the Yahoo!
JAPAN app
Special site “Vaccine
Topics,” which delivers
content specific tovaccines, was launched in
the Yahoo! JAPAN app.

SoftBank Group Corp.

Establishingvaccination sites
Starting with WeWork Nogizaka,vaccination sites have been
established across the country,
including the Takeshiba
Headquarters and FUKUOKA
PayPay Dome. COVID-19
vaccinations have been
conducted for healthcare
workers, Group employees andtheir families, and business
partners through SB Coronavirus
Inspection Center Corp.

SB Coronavirus Inspection Center Corp.

Resumed the “Crowd Radar” function
showing crowded areas, which displays acolor gradient heat map of congestion
around major stations and commercial
facilities.*2

Genome analysis business launched*2 Resumed the service that was discontinued at the end ofJanuary 2020 in response to the spread of COVID-19.

*4 Currently SB Coronavirus Inspection Center Corp.

*1 The month indicates the timing when each initiative was launched.

Sustainability Report 2021

June

Promotion of vaccination and response to
mutant strains

SoftBank Group Corp.

Masks: 350 million units Face shields: 410,000 units
Gowns: 10 million units Protective clothing: 1 million units
Nitrile rubber gloves: 2 million units Goggles: 85,000 units

May

April

Expansion of
inspection system

Yahoo Japan Corporation

Supplies provided (cumulative through to March 31, 2021; approximate numbers)

March

SB Coronavirus Inspection Center Corp. has launched agenome analysis business to identify mutations in theCoronavirus with the aim of contributing to the strengtheningof mutant strain monitoring systems, understanding of
infection routes, and development of vaccines.
See “Our Response to COVID-19” section of our corporate website for further details.

13

Sustainability Report 2021

14

Sustainability of the SoftBank GroupFeature2

Environment

Society

Governance

Our Response to COVID-19

Our Response to COVID-19: Contributing to the Society with Rapid Assistance in Response to Changing Circumstances
The spread of COVID-19 is having a serious impact on our lives and the economy. The SoftBank Group, which aims to become the corporate group most needed by people aroundthe world, is working to promote initiatives that leverage the strengths of each Group company and to provide various types of support in response to changing circumstances.

SoftBank Group Corp.

SB Coronavirus Inspection Center Corp.*4

Free provision of antibody testing kits and publication of results

Hokkaido PCR Inspection Center opened

We have provided approximately 330,000*3 antibody testing
kits free of charge to medical institutions so that the state of theinfection in Japan could be quickly assessed. Based on the test
results, antibody possession rates and strategies to prevent the
spread of infection were presented.

*4 Currently SB Coronavirus Inspection Center Corp.

SB Coronavirus Inspection Center Corp.

Fukuoka PCR Inspection
Center opened*3 Cumulative total through to July 31, 2021

Major Initiatives of the SoftBank Group in Japan*1
January

2020

Social Situation in Japan

February

Conflicting information wasreported on an unknown virus

March
Temporary closure ofschools and classes

April

May

June

July

Exploring preventive measuresagainst spread of infection

AugustSeptember

OctoberNovember

December

2021

January

February

AGOOP Corp.

SoftBank Robotics Corp.

SoftBank Group Corp.

“Summary on COVID-19” page opened on
Yahoo! News

Distribution of Personal protective equipment (PPE) on
non-profit basis

Free provision of floatingpopulation analytical reports

Support for quarantine
hotels with robots

Established a subsidiary to offer PCR
testing

The page is regularly updatedwith the latest information
officially released by the Prime
Minister’s Office of Japan and
the Ministry of Health, Labourand Welfare, as well as highly
reliable information fromvarious media reports.

Provided personal protective equipment (PPE) to the national government,
local governments, medical institutions, and private companies for no profit.

Started free provision of “Analysis of changes in
the flow of people amid the spread of COVID-19,”
which captures the flow of people in major
stations, downtown areas, and tourist spots
throughout Japan (updated daily). Also signed anagreement with the Ministry of Health, Labor andWelfare to provide information that contributes
to response measures for cluster outbreak.

Provided the humanoid robot“Pepper” and the AI cleaning
robot “Whiz” to quarantine
hotels in Tokyo for people withminor symptoms andasymptomatic patients. They areused for providing information
to guests, talking to them, andcleaning the facilities.

With the aim of preventing the spread of COVID-19
infection and achieving an early normalization of
economic activity through the provision of highfrequency testing, SoftBank Group Corp. establishedCoronavirus Inspection Center Corp.*4 as a subsidiary tooffer PCR testing. It provides high-quality and safe saliva
PCR testing for local governments and private companies
at a low price, charging only for the actual cost.
By the end of July 2021, it had conducted approximately
2 million tests in total.

SoftBank Corp.

Cyber University Inc.

Yahoo Japan Corporation

Support for students and children during school
closureOffering online education platform andworkshops for free to academic institutions

To support online learning, 50GB of additional data wasprovided free of charge for customers aged 25 or younger.
The “Smart Coach” online lesson service was provided free ofcharge to schools and tutoring schools.
The “Emergency Fundraising Project Supporting Children andFamilies During Temporary School Closures” was implemented
to create a place for children and to distribute food.

“Cloud Campus,” anintegrated online
education platform, wasprovided free of charge
to universities and juniorcolleges for one
academic year.

Yahoo! MAP
Resumption of the“Crowd Radar” function*2

SB Coronavirus Inspection Center Corp.
HEALTHCARE TECHNOLOGIES Corp.

Started offering PCR tests for individuals
Began offering PCR testing to individuals using“HELPO,” a healthcare app provided by a HEALTHCARETECHNOLOGIES Corp.
Yahoo Japan Corporation“Vaccine Topics” launched in the Yahoo!
JAPAN app
Special site “Vaccine
Topics,” which delivers
content specific tovaccines, was launched in
the Yahoo! JAPAN app.

SoftBank Group Corp.

Establishingvaccination sites
Starting with WeWork Nogizaka,vaccination sites have been
established across the country,
including the Takeshiba
Headquarters and FUKUOKA
PayPay Dome. COVID-19
vaccinations have been
conducted for healthcare
workers, Group employees andtheir families, and business
partners through SB Coronavirus
Inspection Center Corp.

SB Coronavirus Inspection Center Corp.

Resumed the “Crowd Radar” function
showing crowded areas, which displays acolor gradient heat map of congestion
around major stations and commercial
facilities.*2

Genome analysis business launched*2 Resumed the service that was discontinued at the end ofJanuary 2020 in response to the spread of COVID-19.

*4 Currently SB Coronavirus Inspection Center Corp.

*1 The month indicates the timing when each initiative was launched.

Sustainability Report 2021

June

Promotion of vaccination and response to
mutant strains

SoftBank Group Corp.

Masks: 350 million units Face shields: 410,000 units
Gowns: 10 million units Protective clothing: 1 million units
Nitrile rubber gloves: 2 million units Goggles: 85,000 units

May

April

Expansion of
inspection system

Yahoo Japan Corporation

Supplies provided (cumulative through to March 31, 2021; approximate numbers)

March

SB Coronavirus Inspection Center Corp. has launched agenome analysis business to identify mutations in theCoronavirus with the aim of contributing to the strengtheningof mutant strain monitoring systems, understanding of
infection routes, and development of vaccines.
See “Our Response to COVID-19” section of our corporate website for further details.

13

Sustainability Report 2021

14

Sustainability of the SoftBank Group

Environment

Society

GovernanceFeature3

SoftBank Group’s Resilience
Further Strengthened during
the COVID-19 Pandemic
As the spread of COVID-19 continues, SoftBank Group Corp. isstrengthening its resilience as a company and achieving business
continuity while ensuring the safety of its employees. Here, thehead of the Human Resources Group of the Human Resources
Department, which supports major changes in work styles from asystem perspective, and the head of the System Planning & Security
Management Group of the Information System Department, which
supports actual business operations from a work environmental
perspective, will talk about the efforts in response to the pandemic
and the resilience of the SoftBank Group.

What we were most aware of during
the emergency——— The spread of COVID-19, which fully began in
2020, has brought about major changes in both
our institutional and business environments.
What were the things that you were most awareof in this situation?
Sumitomo: From a human resources perspective, while wewere forced to fight against an unknown virus, weplaced the utmost importance on realizing employee
health management and maintaining a safe work
environment, and strived to respond and implement
measures as quickly as possible.
Takahashi: The Information System Department focused on
creating an environment where employees can workwithout feeling overwhelmed and maximize theirwork efficiency, including tasks from setting up andarranging PCs to handling security issues. We were

Sustainability Report 2021

Yohei Takahashi

Hiroyuki Sumitomo

Head of System Planning &Security Management Group,
Information System Department

Head of Human Resources Group,
Human Resources Department

always conscious of the need to improve the work
environment and efficiency, with as littleinconvenience and disadvantage as possible, even in
emergency operations, including the spread of
COVID-19.

Implementation of anti-infection
measures and a “Zero Trust
Network”——— How were changes made in the system and work
environment in response to the spread of
COVID-19?
Sumitomo: In order to ensure both the safety of ouremployees and the continuation of our business, we
switched to remote work company-wide in March
2020, when COVID-19 began to show signs of
spreading in Japan. Since we had already

implemented remote work on a trial basis prior to the
spread of COVID-19, we were able to make thecompany-wide switch to remote work relatively
smoothly.
Takahashi: The Information System Department continued
to evaluate and verify remote work as a response to
IT-BCP and work-style reform. In this phase of the
spread of COVID-19, we decided to distribute a totalof two PCs to each employee, one for office use andthe other one for home use, because it was too muchof a burden for employees to carry their PCs aroundwhen working from home, and we madepreparations accordingly.
Sumitomo: Thanks to such preparations, two PCs were
distributed to employees by April 2020, when thefirst emergency declaration was issued and thetransition to remote work was made. It was wellreceived by our employees that they can work fromhome or at the office without any additional burdens,
including when they have to come to the office forunavoidable reasons.
15

Sustainability of the SoftBank GroupFeature3

Environment

Society

Governance

SoftBank Group’s Resilience Further Strengthened during the COVID-19 Pandemic

Takahashi: At the same time, the Information System
Department was migrating to a “Zero Trust Network”
that would allow fast and secure access to thecompany environment from anywhere in the world
24/7, and enable more efficient operations. This
implementation project, which began with concept
development in late 2019, was completed in October
2020, and remote work using the new method was
initiated. The transition would normally take several
years, but it was completed in only about a year tocoincide with the move to the new Takeshiba
Headquarters at the end of December 2020. We
believe that we were able to quickly realize a work
environment with high security even when working
from home by preparing for implementation before
the spread of COVID-19.
Sumitomo: With the company-wide implementation of
remote work, internal meetings, one-on-one
meetings, recruitment interviews, andcommunication with business partners and investees
are all conducted through the web conference system
as a general rule. Although we had been using a web
conference system for communication with people
from overseas, during the emergency declaration,
online meetings were recommended company-wide.
Despite some confusion at first, each department is
now able to use it relatively smoothly.
Takahashi: As for our web conference system, we currently
use Zoom as our standard tool and issue accounts toeveryone. We also implement security checks andmeasures to ensure secure communication.
——— What measures are you taking to ensure thesafety and security of employees?
Sumitomo: In May 2020, we conducted antibody tests ateach major Group company in Japan and confirmed
the presence of antibodies and the status of
infection. In addition, taking advantage of theestablishment of a PCR testing center within the

Sustainability Report 2021

Group, we have been conducting periodic saliva PCR
tests for all employees since August 2020. Because
the saliva PCR test gives the results on the same day,
if there are suspicions of a positive result, we
immediately contact the person and their supervisor
to check the person’s physical condition and also to
confirm the possibility of close contacts. Based on the
result of the test, we can instruct the employee to go
to a medical institution or work from home, and if
the person who has tested positive was working
onsite, we can promptly have the office disinfectedby a specialized company. By identifying
asymptomatic employees early on and building asystem that prevents cluster outbreaks, we are able
to provide employees with a safe work environment.
In June 2021, we also started workplacevaccination for employees of domestic Group
companies and their families and business partners.
In cooperation with each company, we were able topromptly arrange venues, doctors and nurses, andthus were able to start the vaccination program at an
early stage.

Awareness and improvement ofwork style born in response to
COVID-19——— Please tell us about the positive side effects
from the pandemic, if any.
Sumitomo: One positive aspect that I would like to mention
is that employees who used to think that they had tocome to the office to work now understand that it ispossible to carry out certain tasks even when working
from home. By changing the operational rules that
we used to take for granted, we were able tominimize the number of employees coming to theoffice, and this has also led to improved operational
efficiency. In addition, we are starting to work on

things that we have not been able to address in thepast such as consideration of the use of electronic
signatures.
Although the work environment triggered by the
pandemic has brought many challenges, it hasbrought the possibilities for improving our operations,which have been positive in the end. This can be
attributed to the fact that the Information System
Department has developed an environment thatenables employees to work from anywhere.
Takahashi: The implementation of the Zero Trust Network
was a major achievement, and I think anotherpositive aspect is that we were able to quickly
introduce in our operation system cloud services thatare highly regarded as global leaders in improving
business efficiency.
——— What are some of the issues and challenges thatremain?
Takahashi: In anticipation of future emergencies, we areaiming to create a system environment and structurethat will allow all operations to continue as in normal
times, even if offices are completely closed for several
months or longer. In particular, we believe that it isnecessary to create an environment that can handle
further online processing, especially for contractrelated operations and the operations of the16

Sustainability of the SoftBank GroupFeature3

Environment

Society

Governance

SoftBank Group’s Resilience Further Strengthened during the COVID-19 Pandemic

accounting department involved in processing
consolidated financial settlements that include
overseas subsidiaries.
Sumitomo: As remote work continued, one of the concerns
I felt was that it was difficult for employees to have asense of balance between on and off work as thesupervisors cannot pay enough attention. Looking at
how employees used their time over the last year, I
feel that both employees themselves and theirsupervisors are struggling. Since switching on and off
work is very important for improving productivity, weare taking measures in response such as educating
employees on points to keep in mind when working
from home. In the second year of remote work, I
would like to raise the awareness of each employee
in order to overcome these issues, while aiming toachieve more appropriate work styles.

A corporate culture that promotes
speedy and smooth change——— What do you think about the reasons andbackground behind the smooth implementationof personnel measures and BCP response amid
the pandemic?

Sumitomo: The Group has always had a corporate cultureof “Get the thing done anyway” and “Never say wecan’t do it, but think of a way to do it,” and I feel that
this culture has permeated every corner of ourorganization. In the case of the pandemic, as we had
no choice but to work from home, we made the rules
to make it happen, created a system, and took action.
As a result of this approach, we were able toimplement company-wide remote work, PCR testing,and vaccination within a short period of time, and I
believe that this has helped ensure employee safety
and business continuity.
Additionally, by responding flexibly and promptly
to subsequent changes each time, we have been able
to achieve an optimal mix of office work and remote
work and continue to be an organization that canachieve results even during the pandemic.
Takahashi: The SoftBank Group is a group of companies
with a strong commitment to speed, tenacity, andbeing No. 1, which puts a high level of pressure on
those working on projects. However, for elementsthat are expected to be valuable and effective as
resources for realizing objectives, internal approvaland implementation is speedy and a high degree of
freedom is provided. Even if there is no precedent inJapan, we are able to proceed using the knowledgeof our overseas investees and the power of Group
companies, and we also have the attitude of aiming
to be the best by combining the optimal solutions,
unconstrained by the precedents. I believe that thischaracteristic of our corporate culture is also reflectedin our effective response to the pandemic.

to take advantage of the benefits of both office workand remote work, and how to solve the issues thathave arisen with the move to online work (such as
working hour management, employee care,personnel evaluation, and the effective
communication). Furthermore, we believe that there
will surely be applicants seeking to join our company
who desire to work from home, and we need toconsider the feasibility of organizational and business
operations that include such personnel.
Takahashi: As vaccination progresses and overseas businesstrips resume, I believe that the Zero Trust Network
operations system we have established in response to
COVID-19 will demonstrate its strength and enable
us to work safely and efficiently 24/7, from anywherein the world. The Information System Department
will offer appropriate support to continue thisenvironment and make it even more successful forthe organization and our employees. We intend tosupport the global development of our businesses bypromoting and strengthening information security
governance and its processes for Group companies inJapan and overseas.

———What are your goals for the post-COVID-19
pandemic, and what do you hope to work on in
the future?
Sumitomo: When COVID-19 is under control and office
work is fully resumed, we need to rethink about work
styles in the post-COVID-19 pandemic, including how

Sustainability Report 2021

17

Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Environmental Policy

Environmental
Initiatives
Rapid progress in science and technology
has been the driving force by which we, as
humankind, have achieved the present
economic growth. Unfortunately, thesedevelopments have also contributed toclimate change including extreme
weather, depletion of resources, andlosses in biodiversity.
Under the recognition that maintaining
and preserving the global environment is
the foundation for sustainable
development and growth, the SoftBank
Group assesses the impact of its businessactivities on the environment andpromotes initiatives to reduce greenhousegas emissions and promote a circular
economy. In addition, we are working tosolve environmental issues through ourbusiness activities by utilizing the advanced
technologies of each Group company, suchas renewable energy business and thedevelopment of next-generation productswith low environmental impact.
Based on our sustainability vision of help
shape the next 300 years for our future
generations and the planet, we aim tocreate a world where people live inharmony with the planet.

Sustainability Report 2021

The SoftBank Group established its “Environmental Policy” in May 2021, recognizing that maintaining and preserving the
global environment serves as the foundation for our sustainable development and growth. This policy requires all directors,
officers and employees of the Group to be aware of the need to reduce the burden on the global environment in our businessactivities, to conserve resources and energy, and to strive to maintain biodiversity and contribute to the continuous
improvement of the global environment in order to achieve harmony between humankind and nature.
We will promote corporate activities with consideration of the global environment in accordance with this policy.

Key points in our Environmental Policy
Comply with laws and regulations concerning environmental conservation
Recognize the impacts and the associated risks and opportunities of climate change, and work to mitigate andadapt to climate change
Strive to reduce environmental burdens by reducing greenhouse gas emissions, reducing energy and resource use,and establishing a procurement network that takes the natural environment into consideration
Strive to prevent or reduce negative impacts on the environment and biodiversity
Strive to disclose information on the environment and promote active communication with stakeholders
See our corporate website for the full text of our Environmental Policy.

Supplier Code of Conduct
In order to promote environmentally-friendly business activities, the SoftBank Group has formulated ethical standards
for the environment in its “Supplier Code of Conduct,” and requires suppliers to work in accordance with the ethicalstandards set forth in the Code. The SoftBank Group will proactively undertake relevant environmentally-friendly
corporate activities through partnership with our stakeholders.
See our corporate website for the full text of our Supplier Code of Conduct.

18

Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Efforts to Address Climate Change
The SoftBank Group is working to mitigate and adapt to climate change, a global andurgent issue, in collaboration with Group companies and various stakeholders. Each Group
company has set a target for reducing greenhouse gas emissions from its business activities
and is working to achieve them by a date certain. We also contribute to the expansion ofrenewable energy through the Group’s energy-related businesses. Furthermore, we arehelping to contribute to the decarbonization of society as a whole in cooperation withenvironmental organizations and initiatives.
Going forward, we will identify risks and opportunities, conduct scenario analysis, and set
targets for the entire Group in accordance with the framework of the Task Force on Climaterelated Financial Disclosures (TCFD), in order to further strengthen our resilience to climatechange and enhance our information disclosure.

Reducing Greenhouse Gas Emissions
SoftBank Group Corp. has achieved carbon neutrality in fiscal 2020, reducing greenhousegas emissions from its business activities to virtually zero, and will continue to do so in the
future. Each Group company has also set a target to reduce greenhouse gas emissions fromits business activities and is working to achieve it.
Greenhouse gas emission reduction targets of major subsidiaries and achievement status
Company name(corporate status omitted)

Target and achievement status

SoftBank Group

Achieve carbon neutrality in fiscal 2020 Achieved

SoftBank

Achieve carbon neutrality by 2030

Z Holdings
Yahoo Japan
Arm

Specific Efforts to Reduce Greenhouse Gas Emissions
Leveraging Group Synergies to Drive Conversion to Renewable
Energy for Base Stations (SoftBank Corp.)
In May 2021, SoftBank Corp. announced its“Carbon-Neutral 2030 Declaration” as its
commitment to reducing its greenhouse gas
emissions to virtually zero by 2030. In order toachieve this target, the company purchases
electricity from virtually renewable energy*1
from SB Power Corp., a subsidiary of thecompany that operates an electricity retailbusiness, and as of the end of fiscal 2020,
approximately 30% of the electricity used at
mobile phone base stations is already generated
from virtually renewable energy.*1 The company
plans to increase this ratio to at least 50% infiscal 2021 and 70% in fiscal 2022.
The company is also considering direct
procurement of electricity from renewableenergy generated by SB Energy Corp.,
a subsidiary of SoftBank Group Corp.

Mobile phone base stations adopting renewableenergy*1 Electricity from virtually 100% renewable energy sources using non-fossil certificates with renewable energy designation.

Reduce CO2 emissions per revenue by 50% from fiscal 2008 levels by fiscal
2028
100% conversion to renewable energy for the electricity used by the end of
fiscal 2023
Achieve Net-Zero Carbon by 2030

Data Center Energy Efficiency and Conversion to
Renewable Energy (Yahoo Japan Corporation)
Yahoo Japan Corporation has set a goal of converting all electricity used in its businessactivities to renewable energy by fiscal 2023, and is actively switching to renewable energy
sources, particularly in its data centers.
In its major data centers in Japan, the corporation has been installing air conditioning
systems that use outside air for exhaust heat treatment of servers, and has been working tosignificantly reduce electricity consumption. In addition, the company has completely
switched its power used in Shirakawa Data Center to virtually renewable energy* 2 suppliedby SB Power Corp. from May 2021.
*2 Electricity from virtually 100% renewable energy sources using FIT Non-fossil Fuel Energy Certificates with Tracking Information, etc.

Sustainability Report 2021

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Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Energy-saving Measures at New Head Office Building(SoftBank Group Corp., SoftBank Corp.)

Climate Change Investor Framework Membership (SBIA)
SBIA, which manages the SoftBank Vision Fund 1 and 2, joined the Climate Change
Framework One Planet as founding members of the Private Equity working group in
November 2020. Through its membership in this initiative, SBIA is looking to support
efforts to advance the understanding of climate related risks and opportunities within
investment portfolios.

Along with SoftBank Corp. and other Group
companies, SoftBank Group Corp. relocatedits headquarters to the “Tokyo Portcity
Takeshiba Office Tower” in 2020. As a cuttingedge smart building, the new offices employ
LED lighting that uses motion sensors toautomatically adjust brightness, automaticallyoperated blinds, and other energy-saving
technologies.

See the official website for further details.

New head office building: Tokyo Portcity Takeshiba
Office Tower

Examples of Investments in Companies that Contribute to Decarbonization
SBIA has made a number of investments which are having a positive impact on climate change.

Next-generation Lithium-ion Battery Development (SoftBank Corp.)
Since 2018, SoftBank Corp. has worked with multiple research institutes including National
Institute for Materials Science (NIMS), universities, manufacturers, and other companies inan effort to research and develop battery material technologies and to exchange
information on such. In the field of next-generation batteries, which are indispensable fornext-generation devices such as HAPS (High Altitude Platform Station)* 1 and drone cabs,
the company is advancing the development of a large
capacity yet lightweight next-generation lithium-ion
battery with a high specific energy density. In March
2021, together with U.S.-based Enpower Greentech Inc.,
the company successfully produced a prototype battery
with a specific energy density of 450 Wh/kg,
approximately twice that of existing models.
In addition, the company established the “SoftBank
Next-generation Battery Lab” in June 2021. This lab
evaluates and verifies a variety of next-generation
batteries from around the world with the aim to becomea platform for advancing the development of nextgeneration batteries by promoting research anddevelopment and early commercialization going forward.
Lithium-ion battery (prototype) jointly*1 General term for a system in which an unmanned aircraft flown into thestratosphere operated as a telecommunications base station to provide
communications services over a wide area.

Sustainability Report 2021

Tier Mobility (SVF2*2)
Tier Mobility provides sharing mobility services through its
electricity scooters in over 80 cities in 10 European countries.
In 2020, it achieved complete carbon neutrality, a first for the
micro mobility industry including scooters. It is leading thedecarbonization of the entire industry.
Energy Vault (SVF1*2)
With the use of gravity and kinetic energy, Energy Vault hasdeveloped a system to store electricity in proprietary “blocks”
stacked in tower-like structures. Energy Vault contributes tothe further spread of renewable energy by reducing the cost of
power storage facilities essential for the effective use ofrenewable energy, in which the amount of power generation is
influenced by weather conditions.
Cruise (SVF1*2)
Cruise is developing all-electric, self-driving cars that produce
zero emissions while driving. Led by its vision of achieving zerocrashes, zero emissions and zero congestion, it is a front-runnerin the automobile industry on the cutting-edge of both
environmental conservation and safety.
*2 The names of the funds investing in the portfolio companies.

developed by SoftBank Corp. and Enpower
Greentech Inc.

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Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Promotion of a Decarbonized Society through Initiatives
Support for TCFD Recommendations andMembership in TCFD Consortium (SoftBank Corp., Z Holdings Corporation)
SoftBank Corp. and Z Holdings Corporation announced their support for therecommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in April
2020 and in June 2020, respectively. Each is working to proactively enhance information
disclosure on climate change in accordance with TCFD recommendations. Both companies
are also members of the TCFD Consortium, which consists of companies that support therecommendations, and participate in the consortium’s activities
and exchange information with member companies andorganizations.

SBT Approval and Commitment to Setting a Target(SoftBank Corp., Yahoo Japan Corporation)

In June 2021, SoftBank Corp.’s target of reducing its greenhouse gas emissions to virtuallyzero by 2030, as set forth in its “Carbon-Neutral 2030 Declaration,” was approved ashaving a scientific basis for sufficiently achieving the target of the Paris Agreement by the
Science Based Targets initiative (SBTi), an international climate change initiative.
Yahoo Japan Corporation is also committed to SBT since April 2021.

Participation in Japan Climate Initiative(SoftBank Group Corp., SB Energy Corp.)

SoftBank Group Corp. and SB Energy Corp. have participated in theJapan Climate Initiative (JCI)*1 since its foundation in 2018. Bothcompanies exchange opinions with companies, local governments, andNGOs that actively take measures to fight climate change, and apply
the JCI’s activities in the Group’s overall efforts for decarbonization.
In addition, by endorsing JCI’s announcements (declarations, public comments, and opinionads), we stress the urgency of climate action to society.
See the official website for further details.

*1 An initiative formed to strengthen the communication and exchange of information and opinions by companies, local authorities, andNGOs that are actively fighting climate change.

Sustainability Report 2021

Establishment and Operation of Renewable Energy Council
and GDC Renewable Energy Council (SoftBank Group Corp.)
In response to the energy crisis caused by the Great East Japan Earthquake on March 11,
2011, SoftBank Group Corp. established in July 2011 the “Renewable Energy Council”
together with prefectures and the “GDC Renewable Energy Council” together withgovernment-designated cities across Japan with the aim of promoting and expanding theuse of renewable energy which is a reliable, safe, and sustainable new energy source.
Both Councils are led by municipalities from 34 prefectures and 20 cities in Japan,
respectively, together with private companies and other organizations that support theabove principles. For the past 10 years since their establishment, we have been involved in
the operation of both Councils from a neutral standpoint as the secretariat. Both Councils
have made several policy proposals to the government, including the setting of renewableenergy targets and the development and revision of energy related systems. In particular,
with regard to the “Renewable Energy as Major Power Source” for which the Councils havemade policy proposals for several years, the Japanese government has adopted
fundamental decarbonization strategies in line with the principles of the two Councils’
proposals, such as ex-Prime Minister Suga’s “2050 carbon-neutral declaration,” theannouncement of 46% reduction in greenhouse gas emissions in fiscal 2030 (compared tofiscal 2013 levels) and the “Strategic Energy Plan” by the Ministry of Economy, Trade andIndustry. The draft of the next Strategic Energy Plan sets the fiscal 2030 renewable energy
target at 36-38% of the energy mix, which is a 12% increase from the current plan.* 1 In
order to achieve carbon neutrality in 2050, the use ofrenewable energy will be maximized and the
expansion of renewable energy will be prioritized by
the government.
In addition, both Councils promote information
sharing among municipalities and other members
through activities such as seminars inviting experts
and government policy makers, study sessions, andworkshops to share good practices or issues among
municipalities. These opportunities enablemunicipalities to further enhance their renewableenergy policies and also private companies todecarbonize their business networks or to promote
ESG related effort. Through the operation of bothCouncils, SoftBank Group Corp. will continue tocontribute to the realization of a decarbonized society
Submission of policy proposals
for future generations.
*1 As of September 2021

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Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Promotion of a Decarbonized Society through the Energy Businesses
Promoting the Spread of Renewable Energy with theStrength of the Power Generation Business (SB Energy Corp.)
Engaged in the renewable energy-based power
generation business since its establishment in2011, SB Energy Corp. has expanded its scale
to become one of the largest power generationcompanies in Japan. In recent years, thecompany has designated Watts, Bits, andMobility as its three core businesses, and has
been working on new businesses that take abird’s-eye view of midstream and downstream
power application by leveraging its strength indeveloping, owning, and operating renewableenergy power plants, which are positioned
upstream in the electric power business.
In the Watts business, the company began operating solar power plants in 2012 andcurrently has 48*1 solar and wind power plants in operation in Japan. The total power
generation capacity is 671MW,*1 which is equivalent to the annual power consumption of
approximately 216,000 standard households in Japan. Overseas, the company owns
326,000 ha of land in the Gobi Desert in Mongolia, where it is operating a wind power
generation facility with a capacity of approximately 50 MW. In addition to the conventional
operation of large-scale power plants, the company is also working on new businesses that
directly supply power from small-scale power plants to businesses.
In the Bits business, the company is using AI and IoT platforms to adjust the power supplydemand balance of electricity, and to ensure a stable supply of electricity derived fromrenewable energy sources. The Mobility business enables the storage and transportation ofrenewable energy-derived electricity through the use of energy storage technology.
With these three businesses at its core, SB Energy Corp. strives to further expand the useof renewable energy and contribute to the realization of a decarbonized society.

Providing Electricity Services
that Reduce Environmental Impact (SB Power Corp.)
SB Power Corp., that operates a retail electricity business, provides “Shizen-Denki,” anelectric power service for households with a virtually 100% renewable energy ratio,* 2 withthe aim of promoting renewable energy and supporting forest conservation activities. In
fiscal 2021, the company expects to achieve an annual reduction of approximately 16,000
tons of CO2 emissions*3 through the provision of Shizen-Denki.
In addition, “SoftBank-Denki for Biz (High Voltage),” which provides high-voltage
electricity to large-scale buildings and factories, offers a low environmental impact
electricity menu in response to the growing momentum toward decarbonization among
companies and local governments. The corporation supports Group companies in theirefforts for decarbonization and it began supplying RE100* 4 -compliant electricity to Yahoo
Japan Corporation’s Shirakawa Data Center in May 2021.
Furthermore, the “Eco-Denki App” is provided free of charge to “SoftBank-Denki”
customers. As well as functions for checking electricity bills and predicting electricity charges
for a month, this app also offers an “Electricity-Saving Challenge” that allows customers toeffortlessly save electricity through the app. In the winter trial*5 of the Electricity -Saving
Challenge, about 32,000 households haveparticipated, reducing a total of 233,237
kWh of electricity. This is equivalent to a
reduction of approximately 122 tons of CO2
emissions.
SB Power Corp. will continue tocontribute to the realization of adecarbonized society through thedevelopment and provision of energysaving and environmentally-friendly
Eco-Denki App that allows users to check and predict
services.
electricity bills*2 By combining electricity supplied to customers with Non-fossil Fuel Energy Certificates with renewable energy designation, it canvirtually supply electricity with a 100% renewable energy ratio and zero CO 2 emissions.

Wind Farm Hamada

SoftBank Yakumo Solar Park

*3 The CO2 reduction effect is calculated by multiplying the amount of electricity used by Shizen-Denki customers by the national average
CO2 emission factor, and adding the amount of J-credits retired through support for forest conservation organizations.
*4 An international initiative that aims for companies to use 100% renewable energy to power their own operations.
*5 Period covered: December 1, 2020 to March 31, 2021

*1 As of the end of August 2021

Sustainability Report 2021

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Sustainability of the SoftBank Group

Environment

Society

Governance

Environmental Initiatives

Promotion of Circular Economy
In order to make efficient and effective use of limited resources, the SoftBank Group strives
to reduce the environmental impact of its business activities by conserving resources,
reducing the generation of waste, and promoting the reuse and recycling of products andother materials. We also contribute to the realization of a circulate economy through ourreuse business.

Promotion of “3R” Initiative in Mobile Phone Services (SoftBank Corp.)
In order to realize a circular economy, SoftBank Corp. is promoting the “3R initiatives(Reduce = reduce the volume of waste, Reuse = use repeatedly, Recycle = utilize once again
as resources)” in the mobile phone services.
ReduceReduce paper consumption by digitizing instruction manuals and invoices, and using
iPads in stores.

Reuse

Promote trade-in of mobile phones and tablets, some of which are for reuse inemerging countries

RecycleCollect and recycle used mobile phones handsets and battery packs

E-commerce Services that Contribute to a Circular Economy(Yahoo Japan Corporation, PayPay Corporation)

Yahoo Japan Corporation offers “YAHUOKU!” and PayPay Corporation offers “PayPay Flea
Market” as e-commerce services that contribute to the realization of a circular economy
through the promotion of reuse.

YAHUOKU!
YAHUOKU! is one of the largest online
auction and flea market services inJapan since 1999. The service promotes the reuseof unwanted items by those who need them,
thereby helping to create a circuler economy.

Sustainability Report 2021

Efficient Use of Resources in Logistics Processes and Initiatives fora Circular Economy (SB Logistics Corp.)
SB Logistics Corp., which engages in logistics-related businesses, is promoting various
efforts for a circular economy with the aim of realizing sustainable logistics and supply
chains. One of these initiatives is to change the buffer materials. The manual packaging line
uses buffer materials such as recycled paper instead of the plastic film buffer materials usedin general distribution warehouses.
The automated packaging line that the company plans to operate in the future will alsoutilize a packaging machine that automatically generates boxes with adjustable three sides(height, width, and depth) in order to reduce the size of the packages, while reducing theuse of buffer materials. The company is also working to eliminate the use of buffermaterials themselves by introducing a system that automatically generates shipping boxes
that are almost the same size as the products, and a packaging system that uses shrink
wrap to secure products to mounts. As for other efforts to reduce the size of packages, thecompany has established a “Box Recommendation System” that automatically selects the
optimal sized shipping box for each product, thereby reducing the amount of cardboard
used and improving the efficiency of cargo space utilization through packaging size
optimization, and reducing CO2 emissions from transportation.
In July 2021, the company started aneffort to redistribute products that would
otherwise be discarded due to reasons suchas damaged packaging, despite having nofunctional or quality problems, through thesocial contribution shopping website“KURADASHI,” thus contributing to therealization of a circular economy throughlogistics.

PayPay Flea Market
PayPay Flea Market is a service thatspecializes in flea market-typetransactions, where individuals can easily trade
goods at fixed price. In collaboration withYAHUOKU!, it aims for the further development of
the business in sustainable secondary distribution.

Packaging machine that automatically generates
boxes with three adjustable sides

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Sustainability of the SoftBank Group

Society

Environment

Governance

Environmental Initiatives

Water Circulation Type Hand Washing Stand Using Water Recycling
Technology (SoftBank Corp.)
SoftBank Corp. has formed a capital and business alliance with WOTA CORP. to build a newwater supply system independent of the water infrastructure. As part of these efforts, inMay 2021, the company started to sell “WOSH,” a water circulation type hand washingstand developed by WOTA CORP.
WOSH can be used anywhere with just a power source and 20 liters of water, and canrepeatedly provide hygienic water that complies with the World Health Organization’s(WHO) guidelines for drinking-water quality, even in places without running water. The
autonomous water treatment control technology by an AI, based on data collected by IoT
sensors, can recycle more than 98% of the water used on the spot, making a significant
contribution to the circulated use of water resources. Because the system can be installed at
the entrances of stores and facilities where connection to the water supply is not available,
it contributes to the prevention of the spread of infectious diseases such as COVID-19.

Internal Educational Activities (SoftBank Corp.)
In order to enhance awareness of employees of environmental issues, SoftBank Corp.
conducts educational activities through training and eco-friendly tools.
Examples of educational activities
Training: Basic environmental knowledge
training, training on industrial waste
treatment.
Use of internal tools: Use of paper bags madeonly from recyclable materials and businesscards made from “kudzu (Japanesearrowroot),” which helps protect theenvironment and culture.

Paper bags made ofrecyclable materials

Business card printed
with SoftBank Corp.’smaterialities

Greenhouse gas emissions*1

Scope 1&2
Scope 1
Scope 2
Intensity of GHG
emission*2

Unit

FY2017FY2018FY2019FY2020

FY2020(target)Achievement
rate (%)

t-CO2
t-CO2
t-CO2

722,514
11,386
711,128

693,953
11,456
682,497776,104
15,803760,301

620,929
15,416605,513722,000
15,000707,000

116
97
117

t/Gbps

849

682

628

411

520

127

Long-term goals
WOSH, a water circulation type hand washing standScope 1&2

Enhancing Employee Awareness

Unit

FY2021

FY2022

FY2023

FY2024FY2025

FY2030t-CO2553,000

473,000

443,000

417,000

400,000

0*1 Boundary: SoftBank Corp. until FY2018. SoftBank Corp., Yahoo Japan Corporation and ASKUL Corporation after FY2019. (SoftBank
Group Corp. has achieved Carbon Neutrality in Scope 1 and 2 in FY2020, and will continue to do so in FY2021 and beyond.)*2 Emissions per communication volume

See our corporate website for environmental data.

The SoftBank Group has established the “Environmental Policy” to ensure that its corporate
activities are conducted in consideration of the global environment, and the “SoftBank
Group Code of Conduct” clearly states the guidelines for employees to conduct their daily
work in consideration of the environment, which is thoroughly disseminated to all Group
employees. In addition, each Group company is actively conducting internal educational
activities on the environment to enhance employee awareness.

Sustainability Report 2021

External evaluation
SoftBank Group Corp. and SoftBank Corp. both received an “A-”score in climate change from CDP.

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Sustainability of the SoftBank Group

Environment

Society

Governance

Respect for Human Rights

Human Rights Policy

Respect for
Human Rights
With the development of information
technology and the advance of
globalization, companies have an
increasing impact on people’s lives.
Respect for human rights is afundamental responsibility for eachcompany, and it is a critical part ofachieving the SoftBank Group’s vision of
becoming the corporate group needed
most by people around the world.
The SoftBank Group respects humanrights across its businesses and is working
to develop and implement appropriate
systems to protect human rights. In
addition, we are working to raiseawareness of respect for human rights
throughout the Group, and we require
our investees and business partners to act
in compliance with all laws andregulations related to human rights.

The SoftBank Group has established its “Human Rights Policy” that acts as the minimum standard with which all directors,
officers and employees of the Group must comply.
The policy calls for respecting the human rights of all stakeholders, treating them with dignity and respect, always complying
with laws and regulations, and acting with the utmost respect for international human rights principles. The policy also
strictly forbids discrimination, harassment, forced labor, and child labor.

Key points in our Human Rights Policy
We support the international standards regarding human rights such as the International Bill of Human Rights,
while promoting group-wide measures to respect human rights.
We will comply with human rights laws and regulations and respect international human rights principles to thefullest extent possible.
We will not engage in any acts of discrimination, directly or indirectly, on the basis of characteristics that define anindividual’s identity.
We will not engage in harassment of any kind.
We will not engage in any human rights violations or illegal activities, including forced labor, child labor, slave labor,or human trafficking.
We will strive to maintain a safe, sanitary, and healthy working environment.
We will respect fundamental labor rights.
We will strive to pay competitive, above-living-wage monetary compensation and benefits.
We will identify human rights risks and work to reduce them.
See our corporate website for the full text of our Human Rights Policy.

Supplier Code of Conduct
The SoftBank Group conducts business in various areas and sectors across the globe and has built a diverse supply chain inorder to become the corporate group needed most by people around the world. The SoftBank Group places importance onsustainability in these supply chains, and believes that it is essential not only to comply with laws, but also to conductbusiness based on high ethical standards. Therefore, the SoftBank Group has formulated the “Supplier Code of Conduct,”which sets forth what we expect our suppliers to comply with, and requires them to work in accordance with the ethicalstandards set forth in that code.
See our corporate website for the full text of our Supplier Code of Conduct.

Sustainability Report 2021

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Sustainability of the SoftBank Group

Environment

Society

Governance

Respect for Human Rights

Improving Awareness of Human Rights
In order to disseminate our Human Rights Policy to directors, officers and employees andraise awareness of human rights, the SoftBank Group conducts ongoing education andawareness activities through training and other programs. In addition, we require ourexternal stakeholders, including investees and business partners, to act in compliance withall laws and regulations related to human rights.

Stakeholder Engagement
In order to prevent and reduce the negative impact on human rights that may occur in thecourse of its business activities, the SoftBank Group identifies specific human rights risks ateach Group company as part of its human rights risk assessment, works to prevent andmitigate occurrence of such risks, and promotes the establishment of a system that enables
the Group to promptly take appropriate measures.
SoftBank Corp. conducted two stakeholder-dialogue events in 2020, inviting experts todiscuss human rights issues related to the company’s business, based on the information
provided by the experts. The first session focused on the role that telecommunicationcompanies should play in respecting privacy, and the second session on human-rights issues
brought about by technological development. In each case, the participants engaged invigorous discussion to identify what human rights issues should be recognized andprioritized as the responsibility of a company leading the Information Revolution.
The SoftBank Group will continue to communicate with its stakeholders on an ongoingbasis to strengthen its commitment to respect for human rights.
Outline of stakeholder dialogues (SoftBank Corp.)
1st stakeholder dialogue

2nd stakeholder dialogue

Keiichi Ushijima; Part-time Lecturer, Graduate
School of Tohoku University
The role of communication carriers in promoting
respect for privacy

Daisuke Takahashi; Attorney, Shinwa Sohgoh
Law Offices
Human rights issues brought about by technology development
Effects of AI and other technologies on humanrights (e.g., the human rights of socially vulnerable people, privacy, freedom of expression)
The importance of promoting activities
targeting human rights issues(human rights due diligence, mechanisms forresponding to complaints)

Current trends surrounding human rights issues
Potential human rights risks identified by
SoftBank Corp.
Ideas for SoftBank Corp’s future activities

Sustainability Report 2021

Training to Raise Awareness of Human Rights
In order to raise awareness of human rights and with the goal of creating a better humanresources system and a stronger corporate organization, SoftBank Group Corp. holds
periodic roundtable discussions between the human resources department and employees.
Furthermore, in light of the enforcement of the “Revised Act on Comprehensive Promotionof Labor Measures,” SoftBank Group Corp. holds regular meetings for line managers
organized by the human resources department, to provide them with not only basic
information but also the latest trends in harassment and detailed points to keep in mind,
and to instruct them on how to respond appropriately.
SoftBank Corp. stipulates respect for human rights and prohibition of discrimination andharassment in the “SoftBank Code of Conduct”. In addition to training for each level, such as new
employee training and newly appointed manager training, all employees in management positions
and above undergo both regular training and training upon receiving promotions, regarding
methods for responding to consultations and reports on bullying or harassment incidents.
List of training programs conducted in FY2020 (SoftBank Corp.)
Name

TraineesType of training

Compliance training for new hires

Mid-career hires/
New employees

e-Learning

Pledging adherence to the SoftBank Code of Conduct

All employees

Other

Compliance training (orientation for mid-career hires)

Mid-career hires

Group training

Harassment prevention course(on abuse of power, sexual harassment)

All employees

e-Learning

Course on prevention of harassment (LGBT version)

All employees

e-Learning

Work instructions in remote work/
training on remote harassment

All employees

e-Learning

Compliance magazine(cautions regarding remote harassment)

All employees

Other

Training for newly appointed managers

Newly appointed
managers

e-Learning

Compliance training for management executives(on harassment)

Managers; General
Manager level and above

Group training

Compliance test

All employees

e-Learning

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Sustainability of the SoftBank Group

Environment

Society

Governance

Human Resources Strategy

Development of Professionals
The SoftBank Group strives to create a diverse work environment where everyone can thrive, regardless of age, gender,
nationality, disability, sexual orientation or gender identity.

Professional Recruitment and Career Development

Human Resources
Strategy
For the SoftBank Group, which continues
to develop innovative businesses, humanresources are the source of innovation,and the employees who work for theGroup are important stakeholders that
support sustainable growth. As acompany that leads the Information
Revolution, we are working on
development and promotion of humanresources. This is based on the belief thatcreating an environment where diverse
talent can take on challenges and play anactive role while making the most of
their individuality and maximizing thepotential of individuals andorganizations, will increase corporate
value.

Sustainability Report 2021

SoftBank Group Corp. hires professionals based on the “Three Core Competencies” - Smart, Professionalism, and Relation.
Our basic policy is to hire the best person for the position regardless of age, gender, nationality, and other factors and we arecommitted to a more diverse workforce. In addition, from the perspective of human resource development, the company has
established a system for self-driven career development so that each employee can enhance their Three Core Competencies
aforementioned. We provide internal education and training services, including English conversation courses, and also
allocate education budgets to each department so that employees can independently select and attend external training
programs of their choice. We have also established a dual-employment system, under which employees may engage in asecond job to promote personal growth through diverse experiences and lead it to their career development.
“Three Core Competencies” we seek in our employees

Smart

Professionalism

Relation

Capacity to think logically and tackle
unprecedented challenges using numbers
and reasoning

High level of expertise in relevant field

Communication skills required to engage
in business with leading companies
in the world

Support System for Career Realization
The SoftBank Group emphasizes the importance of self-driven career development and encourages employees to think about
their future goals and career plans, and understand the experience, knowledge and skills they need. By providing
opportunities and helping them to achieve their own career plans, we aim to develop professionals with rich individuality.
SoftBank Corp. has established a job posting system for in-house recruitment of members to start up new businesses andcompanies, a free agent system that enables ambitious employees to transfer to the department of their choice, and a system
to support the acquisition of certifications as opportunities for career development, providing an environment where anyone
can take on the challenge of personal growth and self-realization. The company allows secondary jobs as long as it does nothave an impact on the company’s business, based on the belief that skill enhancement and growth through such experiences
will lead to the revitalization of its business and innovation. The company has also introduced a SoftBank-style internal
secondary job system, which allows employees to experience work outside of their own departments. This system expands
opportunities for employees to utilize their abilities and brings organizational vitality to the workplace through interdepartmental exchanges.

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Sustainability of the SoftBank Group

Environment

GovernanceSociety

Human Resources Strategy

Diversity & Inclusion
Advancement of Women in the Workplace
The SoftBank Group believes the driving force for growth across the Group is theempowerment of women in the workplace, and it is actively advancing the hiring andpromotion to management positions of female employees. SoftBank Corp. provides female
employees with workshops on career development and a mentoring program for leaders toreceive advice from female managers who serve as role models. In addition, to enable
employees to raise their children with peace of mind and to balance work and childcare
after returning to work, the company allows employees to take childcare leave and to work
shorter hours beyond what is stipulated in the law. As a result, the rate of female
employees returning to work after taking childcare leave was over 98% as of the end of
March 2021.

Support and Promotion of Appreciation of Foreign Employees
Based on the belief that each employee fully demonstrating their individuality and ability ina diverse workplace will be the driving force behind the growth of the entire Group,
SoftBank Group Corp. advances the hiring and promotion of employees to management
positions regardless of nationality. In addition, as an effort to support the active
participation of foreign employees, official documents such as notices, internal training
contents, and internal systems are provided in Japanese and English as a general rule tofacilitate communication.
In order to deepen the understanding of foreign employees within the company and tostrengthen ties among employees, SoftBank Corp. conducts enlightenment activities
through internal events suchas the “Diversity Week” andtraining programs. By
continuing these activities inparallel with developing its
internal systems, the company
is working toward the creationof a more accepting working
environment for all employees.

Advancement of Promotion of People with Disabilities
The SoftBank Group makes no distinction between potential employees in the hiring
process or after they join the Company and aims to create a work environment where all
employees can work to the best of their capabilities. As part of this effort, SoftBank Corp.
introduced a full-scale short-time work system in May 2016. This system enables people
with mental or developmental disabilities who have difficulty working long hours, even if
those disabilities are not a hindrance to the execution of duties, to work less than 20 hours
per week. The company will continue to collaborate with companies and municipalities
help create a society in which anyone can actively contribute their unique attributes.

Support for LGBTQ Employees
The SoftBank Group promotes LGBTQ inclusion in the workplace. Since October 2016, theSoftBank Group Corp. and SoftBank Corp. have defined a spouse in their internal
regulations to include same-sex partners, and have provided the same benefits to those
employees’ spouses, such as special leave and congratulatory and condolence payments. In
addition, SoftBank Corp. has established a consultation desk for LGBTQ employees, theircoworkers and superiors, and provides LGBTQ-related training for employees, and supports
the activities of the “Colorful Project,” an internal community launched jointly by employee
volunteers and the human resources department. Through these activities, the company isworking toward the creation of a more accepting working environment for everyone.

Human resources and diversity data (SoftBank Group Corp.) *1
Ratio of female
employees

Ratio of female employees
in management

Ratio of female
in new hires

42.3%

23.9%

33.3%

Ratio of mid-career hires

Ratio of foreign employees

90.0%

6.2%

Average years of employment

8.8 years
Women: 8.9 years
Men:*1 As of March 31, 2021

See our corporate website for human resources and diversity data.

Internal event with foreign employees

Sustainability Report 2021

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Sustainability of the SoftBank Group

Environment

Society

Governance

Creating a Supportive Working Environment

Work-style Reform
The SoftBank Group encourages the work-life balance of its employees and has established programs to help ensure thatbalance. We also take various measures to reduce long working hours, including the use of technology.

Examples of measures to promote work-style reform (SoftBank Group Corp., SoftBank Corp.)

Creating a Supportive
Working Environment
We aim to create a working environment
where all employees of the SoftBank
Group can maximize their abilities, workwith enthusiasm, and take on thechallenge to achieve further growth.
In addition to respecting the rights of
employees and striving to ensure equal
opportunities as well as occupationalsafety and good health, we aim forbecoming the corporate group needed
most by people around the world bypromoting internal communication andcreating a working environment where
each employee can maximize theirabilities.

Company-wide introduction of Work from Home
Company-wide introduction of the super flextime system* 1
Attendance management linked to the office entry-exit management system using facial recognition
Periodic delivery of attendance alert e-mails using an RPA* 2 system(understanding of the attendance registration status, long-working-hour alerts based on a predictive simulation ofworking hours, and encouragement of taking annual leave)
Promotion of “Premium Friday”*3*1 Flextime system without core time
*2 RPA stands for robotic process automation, a technology that automates business processes and tasks carried out on computers previously performed by humans.
*3 A private-public initiative aimed at revitalizing consumption and changing lifestyles by moving the end of the workday forward on the last Friday of each month.

New Office Aiming to Transform Work-styles
With the aim of further transforming work-styles and strengthening our business continuity plan (BCP), in September 2020,
the SoftBank Group Corp. and some of its Group companies began relocating their headquarters to the “Tokyo Portcity
Takeshiba Office Tower,” an office building that opened in the Takeshiba area of Minato-ku, Tokyo, and completed the movein December 2020.
The new office was designed by the Group company, WeWork, and employees working there are able to freely choose alocation where they can work efficiently according to their objectives at the time, such as when they want to concentrate on
their work or have discussions withmultiple people. In this new office,we aim to create open innovation
across departments and practice amore innovative and creative workstyle that is not bound by location,
space, or community.
LoungeSustainability Report 2021

Counter area

Open meeting space29

Sustainability of the SoftBank Group

Environment

Society

Governance

Creating a Supportive Working Environment

Industrial Safety and Health

Employee Engagement
Once a year, the SoftBank Group conducts an employee satisfaction survey (ES survey) forall employees in order to better understand employee sentiment with the aim of building astronger organization and enhancing employee motivation. This survey was developed
based on the characteristics of the Group, and in fiscal 2020, it was conducted at 26 Group
companies.
The ES survey provides a score for each item on the level of satisfaction with theorganization (job, workplace, superiors) and the company, allowing for comparison overtime. In addition, continuous monitoring of the results of the survey enables early
identification and improvement of organizational issues. In the fiscal 2020 ES survey of
SoftBank Group Corp., each item received a high score of 3.60 or higher, indicating aparticularly high level of satisfaction with superiors and the workplace. We will continue
proactive employee engagement to create a more comfortable workplace going forward.

Safety Measures in the Event of an Emergency, Including a Pandemic
SoftBank Group Corp. has systems in place to ensure the safety of employees whenever an
emergency strikes, including natural disasters such as an earthquake or a typhoon andpandemics. With the government declaring a state of emergency in response to the spreadof COVID-19 in April 2020, we required all employees in principle to work from home.
Further showing our commitment to creating an environment in which employees can workwith peace of mind, we introduced measures designed to prevent the spread of the virus in
August 2020, including periodic saliva PCR tests and a temperature-sensing entry system.
With an eye toward ongoing changes in how our employees work, we are promoting thedevelopment of an office automation system allowing work at any time or place, the use ofcloud computing for systems and information, and enhanced security measures.

SoftBank Group Corp. employee satisfaction survey (ES survey)* 1
Satisfaction

Identifying and Addressing Labor Risks
To prevent the occurrence of occupational accidents and ensure compliance withestablished labor practices, SoftBank Group Corp. conducts labor risk assessments, which
include regular employee stress checks, monitoring and forecasting of long working hours,
and checks for harassment as part of employee satisfaction surveys. As part of its effort to
optimize working hours for employees, we also simulate monthly and annual working
hours for individual employees by using an attendance tracking system, take action in
response to employees expected to work long hours, and continuously report working
hours to management.

4.10

Very high
4.00

High
3.90
3.80
3.70
3.60
3.50

Normal
3.40
3.30
3.20
3.10

FY16

FY17

*1 Organizational satisfaction (overall satisfaction for surveys before FY18)

Sustainability Report 2021

FY18

FY19

FY20
Facial-recognition entry-exit system with a temperaturesensing function

Displays temperature simultaneously with facial recognition30

Sustainability of the SoftBank Group

Environment

Society

GovernanceParticipation in Our Community

TOMODACHI SoftBank Leadership Program (SoftBank Group Corp.)— Development Program for Leaders Charged with Recovery from Great East Japan Earthquake —Participation in
Our Community
It is essential for a company’s sustainablegrowth to be a good corporate citizen
that walks together with society andresponds to society’s expectations
through participation in the community.
Under the corporate philosophy,“Information Revolution — Happinessfor everyone,” we at the SoftBank Groupwill contribute to the resolution ofvarious societal issues and help support
the realization of a prosperous society bybuilding good relationships with local
communities and stakeholders.

Sustainability Report 2021

The “TOMODACHI SoftBank Leadership Program”
is a program conducted by the SoftBank Group
Corp., which expressed its support for the“TOMODACHI Initiative,” an initiative led by the
U.S. Embassy in Japan and the U.S.-Japan Council,
that invites high school students from Iwate,
Miyagi, and Fukushima, areas affected by the
March 11, 2011 Great East Japan Earthquake, to a
fully-paid three-week intensive course at the
University of California, Berkeley in the U.S., andencourages them to engage in community activities
after returning home. Students actively take part in
Program participants at the University of California, Berkeley (4th year)
various projects in their local areas by leveraging
the knowledge of community service and problem
solving they have learned in the program. By helping them improve their leadership skills through activities in the real world,
we are developing community members who will support the future of Tohoku.
See our corporate website for further details.

Pepper Social Contribution Program (SoftBank Group Corp.)— Supporting Programming Education in Elementary Schools —SoftBank Group Corp. is conducting the “Pepper
Social Contribution Program,” lending its
humanoid robot “Pepper,” with the goal of
supporting education and society. For programming
education in elementary schools, which became
compulsory in 2020, we also provide the “RoboBlocks School Template,” which allows teachers toeasily formulate lesson plans, to support theeducational field and improve the logical thinking
and problem-solving skills of students. These
support activities for educational institutions using
Pepper are not limited to Japan, but are also being
implemented in the U.S. and China.

Elementary and junior high school students participating in the program

See our corporate website for further details.

31

Sustainability of the SoftBank Group

Environment

Society

GovernanceParticipation in Our Community

Future Energy Project (SB Energy Corp.)— Providing Opportunities for Children, the Future Leaders of the World,to Think Independently and Creatively about Energy Issues —SB Energy Corp., a renewable energy business
operator, offers a hands-on environmental education
program, the Future Energy Project, for elementary
school students living near its power plants. This
program was launched in 2012 to create opportunities
for children to independently and creatively think
about energy by using video materials and tablet
Elementary school students participating indevices, and to deepen their learning about energy
the hands-on environmental education
programthrough discussions and presentations. The company
will continue to provide opportunities for children,
who will lead the future, to think for themselves about environmental and energy issues.
See the project website for further details (available only in Japanese).

Providing Equal Learning Opportunities (Cyber University Inc.)— Online Higher Education for Everyone —Cyber University, Japan’s first full online four-year university dedicated to advanced IT
education, is working on activities to eliminate gender, age, and regional disparities in
education so that all people can have equal learning opportunities. To promote theadvancement of women into professional and management positions, where theproportion of men has been high in the past, the company is focusing on eliminating the
disparity in the ratio of male to female students in higher education in information
technology. As a result, the percentage of female student body has increased from about
15% in 2007 to over 25% in 2021.Going forward, the company aims to further increase
this ratio to 35% by 2030.

Employment of Local Talent (SB Logistics Corp.)— Contributing to the Local Community through Employment and Human Resource Development —SB Logistics Corp., which operates logistics-related businesses, actively recruits people fromthe surrounding region for employment in customer support and warehouse operations.
The Ichikawa Logistics Center is equipped with the world’s most advanced robot
technology, including automatic packaging equipment. By having locally hired employees
handle advanced technologies through its operations, the company believes that it cancontribute to the local community through talent development. In the future, the company
will also contribute to the local community in ways other than employment, such asproviding opportunities for local residents and educational institutions including
universities to observe its cutting-edge technology.

Sustainability Report 2021

Fight! Kyushu (Fukuoka SoftBank HAWKS Corp.)— Initiatives for Disaster Recovery and Community Revitalization Rooted in Kyushu Area —“Fight! Kyushu” is a project launched by Fukuoka SoftBank HAWKS Corp.
in April 2016 to support the recovery from the
Kumamoto and Oita earthquake. Since its launch, thecompany and the Fukuoka SoftBank HAWKS Players
Association have continuously carried out many
recovery support activities. In the midst of COVID-19
pandemic where there was little to be cheerful about,the company pursued what as a baseball team rooted
in Kyushu area should do, and redefined the purpose
Fight! Kyushu project websiteof this project not only as recovery support but also as
the “HAWKS’ activities to make Kyushu brighter,” andcontinuing these activities. The company will continue to work with the HAWKS players to
involve the whole of the Kyushu area in activities to make society brighter and morevibrant.
See the project website for further details (available only in Japanese).

Next Action → Social Academia Project (SoftBank Corp., Yahoo Japan Corporation)— Project to Support Human Resource Development and Business Creation in Areas Affected by the Great East Japan Earthquake —On March 10, 2021, the 10th anniversary of the Great East Japan Earthquake, SoftBank
Corp. and Yahoo Japan Corporation, together with General Incorporated Association
Pionism, launched the “Next Action → Social Academia Project” for the recovery of
Minamisoma City in Fukushima Prefecture.
This project will promote the development of the next generation of leaders and thecreation of businesses from 2021 to 2030 by maximizing the expertise, resources, andassets of the three parties in entrepreneurship and commercialization. The project is callingfor a wide range of projects, including responses to issues faced after the disaster, and will
create opportunities to maximize synergies while encouraging interaction and collaboration
among participants and with companies, organizations, and local governments in andoutside of the prefecture. By creating more businesses and producing talented people withworld-class skills over the next 10 years until 2030, the project aims to become a modelcase for sustainable recovery.
See the project website for further details (available only in Japanese).

32

Sustainability of the SoftBank Group

Environment

Society

GovernanceParticipation in Our Community

Emerge (SBIA)

SB Oppor tunity Fund (SB Opportunity Fund Manager LLC)

— Accelerator to Support Underrepresented Founders —— Investment Fund to Support Underrepresented Founders —The technology and venture capital communities are not yet representative of thecommunities they serve. As an industry, we’re missing out on the diverse perspectives andinnovative thinking that can lead to the next world-changing companies.
In2020, SBIA launched Emerge, an accelerator aiming to improve diversity in tech andentrepreneurship by supporting and investing in innovative underrepresented founders andtheir start-ups.
Emerge founders participated in an eight week intensive curriculum consisting ofworkshops, access to mentors from across our ecosystem and sessions with SoftBank
executives. The accelerator culminated in June 2020 with a showcase event whichconnected founders with over 150 investors. The SBIA Emerge Accelerator has sinceinvested in 13 Emerge companies and launched the second Emerge program in Europe thisJune 2021.

To help diversify the tech sector, the SoftBank Group established the $100 million fund, SB
Opportunity Fund, to invest in businesses led by Black, LatinX and Native American
founders in the United States.
The primary goal of the SB Opportunity Fund is to generate exceptional returns,
demonstrating that there is no trade-off between racial diversity and investment
performance. Through this fund, we have invested in 54 companies,*¹ and the fund willcontinue to seek out and invest in exceptional underrepresented founders.
Fund portfolio companies (partial)
PlayVS

Operates an eSports platform to organize high school and collegiate
esports

Eight Sleep

World’s first sleep fitness company redesigning sleep with cuttingedge AI and machine learning models

Career Karma

Helps people to navigate their careers in technology and throughcareer advice and job training

Praxis Labs

Reimagines corporate bias training, integrating research-backed
curriculum with cutting edge VR technology

Zoe Financial

Helps people find independent, fiduciary financial advisors

Emerge cohort 1 program participants

Emerge cohort 1 (from March to May 2020)
Program highlights

Founder demographic

Mentors

40

Female9

Accelerator curriculum (hours)

80

Black

7

Investors attended showcase

150+

Latinx2

Delane Parnell
PlayVS

Alexandra Zatarain
Eight Sleep*1 As of the end of June 2021

Ruben Harris
Career Karma

Elise Smith
Praxis Labs

Andres Garcia
Zoe Financial

See the website for details of the SB Opportunity Fund.

See the website for details of the Emerge.

Sustainability Report 2021

33

Sustainability of the SoftBank Group

Environment

Society

GovernanceCorporate GovernanceCorporate Governance System

Corporate
Governance
We are actively enhancing andstrengthening our corporate governanceand working continuously to improve its
effectiveness. In fiscal 2020, SoftBank
Group Corp. newly established a
Nominating & Compensation Committee
and diversified its Board of Directors’
membership by appointing a female
Board Director. Since June 2021, External
Board Directors have accounted for amajority of all Board Directors, thereby
strengthening the supervisory functionof the Board of Directors.

Guided by a fundamental concept of “free, fair, and innovative,” and our corporate philosophy of “Information Revolution— Happiness for everyone,” SoftBank Group aims to be a provider of essential technologies and services to people aroundthe world while maximizing its enterprise value.
To realize this vision, we have formulated “the SoftBank Group Charter” to share our fundamental concept and corporate
philosophy and have devised the “Group Company Management Regulations of the SoftBank Group” to set forth ourmanagement policy and management framework for Group companies. We have also established the “SoftBank Group
Code of Conduct,” which prescribes policies to be followed by the directors, officers and employees of the Group, andcontinue to strengthen governance. Further, we have formulated “the SoftBank Group Sustainability Principles” to set out
matters necessary for the Group to appropriately carry out sustainability activities, and we will continue to meet the
expectations of customers, shareholders, creditors, business partners, employees, and other stakeholders and fulfill our
responsibilities as a company leading the Information Revolution with the goal of supporting a sustainable society.
Corporate governance system

Internal Board Director

External Board Director /External Audit & Supervisory
Board member

General Meeting of Shareholders

1994

Nominating &Compensation Committee
Ratio of External
Board Directors
2/3

SoftBank Group Corp.’s path tostrengthening governanceElect /
dismiss
Independent
AuditorElect / dismiss
members of Audit &Supervisory Board

Elect / dismiss
Board Directors

1995
1999

2002
Recommend
ReportBoard of Directors
Ratio of External
Board Directors*1
5/9
Separating themanagement
decision-making
from the businessexecution

ReportReportElectmembers /delegate
partialauthority

Investment
CommitteeElectchairperson /delegate
partialauthority

Brand
Committee

ReportElect
chairperson /supervise

ReportElect
chairperson /superviseGroup Risk andSustainability
Compliance
Committee
Committee

Audit

Call /
reporton
execution
situation

Supervise /elect /
dismiss

Representative
Director,
Corporate Officer,
Chairman & CEO

ReportReportAudit & Supervisory
Board

2003

Brief

Independent
AuditorCooperate

Ratio of External
Audit & Supervisory
Board members*2
4/4

Brief

Cooperate

Audit & Supervisory
Board OfficeInternal Audit
OfficeCorporate Officers

2006
2012
2015
2019
2020

Brief /
cooperate

2021

Registered as an OTC stock with the Japan
Securities Dealers Association(1998 Listed on the First Section of the Tokyo Stock
Exchange)
Appointed the first foreign national Board Director
Invited a Board Director from outside the company(equivalent to a current External Board Director)
transitioned to a pure holding company
External Board Directors system introduced in theCommercial Code (currently the Companies Act)
Started livestreaming of earnings results briefings
Started livestreaming of the General Meeting of
Shareholders
Companies Act enacted
Introduced a Corporate Officer system
Japan’s Corporate Governance Code entered into force
Established the Group Risk and Compliance
Committee
Formulated the Portfolio Company Governance andInvestment Guidelines Policy; increased the number
of External Board Directors from two to four;
appointed the first female Board Director;
established the Nominating & Compensation
Committee and the Sustainability Committee;
appointed a CSusO*3 and CRO*4 ; revised the Boardof Directors structure (separation of the
management decision-making function from thebusiness execution function)
Added environmental and social items to the above
policy; achieved a 55.6% external ratio of Board
Directors and a 100% external ratio of Audit &Supervisory Board members*3 Chief Sustainability Officer*4 Chief Risk Officer*1 Of the five External Board Directors, four are designated as Independent Officers.
*2 Of the four External Audit & Supervisory Board members, three are designated as Independent Officers.

Sustainability Report 2021

34

Sustainability of the SoftBank Group

Environment

Society

GovernanceCorporate Governance

Representative Director,
Corporate Officer,
Chairman & CEO

Independent
Officer

Position / Name

External Board
Director

Board Directors (As of June 23, 2021)
Term of office*Less than one
year indicatedwith “-”

Number ofshares owned(in thousands)*As of March 31,
2021

Skill matrix
Corporate Banking / Finance /Law /Academic
Technology
Diversity
management M&A Accounting Governancebackground

Reasons for appointment and major activities of External Board Directors

39 years

460,161—

2 years

1,078—

33 years

2,532

—

—

0.2

—

1

Activities
Makes remarks to support business judgments and decision-making based on his extensive knowledge
and broad experience in corporate management and governance, acquired through his career in the
management of a trading conglomerate with global business development. Also, as Chairperson of
the Nominating & Compensation Committee, leads objective discussions from an independent
standpoint and plays an important role in consulting with the Board of Directors.

Masayoshi Son
Board Director,
Corporate Officer,
Senior Vice President,
CFO, CISO & CSusO

Yoshimitsu Goto
Board Director

Ken Miyauchi
Board Director

Kentaro Kawabe
External Board Director,
Independent Officer

Masami Iijima
External Board Director,
Independent Officer

Yutaka Matsuo
External Board Director,
Independent Officer

Lip-Bu Tan
External Board Director,
Independent Officer

Keiko Erikawa
External Board Director

Kenneth A. Siegel

Sustainability Report 2021

3 years

2 years—

Activities
Makes remarks to support business judgments and decision-making based on his extensive knowledge
and broad experience of AI and other technologies as a leading expert in the field, acquired throughhis engagement in AI research over many years. Also, as a member of the Nominating &Compensation Committee, expresses objective opinions from an independent standpoint and plays
an important role in consulting with the Board of Directors.

1 year—Activities
Makes remarks to support business judgments and decision-making based on his extensive knowledge
and broad experience in investment and corporate management, acquired through his career in the
management of an international venture capital company specializing in the technology field.

—

—

94

—

Reasons for appointment
Since founding KOEI Co., Ltd. (currently KOEI TECMO GAMES CO., LTD.), Ms. Erikawa has played a vital role indeveloping and strengthening the business foundation of the Group as a corporate manager and a finance manager,
and therefore has extensive knowledge and experience related to corporate management and technology. SoftBank
Group Corp. expects that she will use her wealth of knowledge and experience to supervise SoftBank Group Corp.
and offer advice and has therefore appointed her as an External Board Director for the further growth of the Group.
Reasons for appointment
After joining Morrison & Foerster LLP in August 1986, Mr. Siegel became Partner of the firm in January 1994 and thereafter Managing Partnerof Morrison & Foerster Tokyo Office (Morrison & Foerster Gaikokuho Jimu Bengoshi Jimusho) in August 1996. Having engaged in corporate
acquisitions, joint venture deals, and strategic alliances, he has extensive knowledge and experience as a lawyer. Although he does not havemanagement experience, SoftBank Group Corp. expects that he will use his wealth of knowledge and experience to supervise SoftBank
Group Corp. and offer advice and has therefore appointed him as an External Board Director for the further growth of the Group.

35

Sustainability of the SoftBank Group

Environment

Society

GovernanceCorporate GovernanceFull-time External Audit &Supervisory Board member,
Independent Officer

Independent
Officer

Position / Name

External Audit &Supervisory
Board Member

Audit & Supervisory Board Members (As of June 23, 2021)
Term of office*Less than one
year indicatedwith “-”

Number ofshares owned(in thousands)*As of March 31,
2021

Skill matrix—

Activities
Makes remarks based on his extensive knowledge and experience as a Certified Public Accountant,State of California, U.S.

——

Reasons for appointment
Has extensive knowledge and experience related to corporate management and risk management,
having served as Representative Executive Officer and a risk management manager at financial
institutions. SoftBank Group Corp. appointed him as External Audit & Supervisory Board member withthe expectation that he will conduct audits from a fair, objective, and independent standpoint basedon his knowledge and experience.

17 years—

Activities
Makes remarks based on his extensive knowledge and experience as a lawyer.

—

Reasons for appointment
Has extensive knowledge and experience as a Certified Public Accountant. Although Mr. Otsuka does
not have management experience other than as an external officer, SoftBank Group Corp. appointed
him as External Audit & Supervisory Board member with the expectation that he will conduct audits
from a professional standpoint based on his knowledge and experience, and from a more
independent standpoint.

6 years

Maurice Atsushi Toyama
Full-time External Audit &Supervisory Board member,
Independent Officer

Yuji Nakata
External Audit & Supervisory
Board member

Soichiro Uno
External Audit & Supervisory
Board member,
Independent Officer

Reasons for appointment and major activities of Audit & Supervisory Board Members

Corporate Banking / Finance /Law /Academic
Technology
Diversity
management M&A Accounting Governancebackground—Keiichi Otsuka

Committees
As part of its efforts to strengthen corporate governance, SoftBank
Group Corp. has established voluntary committees that report to or
provide recommendations to the Board of Directors.
Each of the respective committees discusses important issues andpromotion policies, thereby building a system that ensures appropriate
management decisions without compromising the efficiency of the Boardof Directors. The committees include: the Nominating & Compensation
Committee, which deliberates and submits its opinions to the Board of
Directors regarding policies related to the election, dismissal, evaluation,and compensation of the Board Directors; the Investment Committee,
which makes decisions on investments, loans, and borrowings; the Brand
Committee, which is responsible for decision-making and management ofmatters related to the SoftBank brand; the Group Risk and Compliance
Committee (GRCC); and the Sustainability Committee.
Sustainability Report 2021

Chairperson

Main roles

Nominating &Compensation
Committee

Masami Iijima

Investment
Committee—

Brand Committee

Yoshimitsu Goto

Deliberates on Board Director election anddismissal criteria, candidate proposals, individual
remuneration, and policies, etc. related toevaluation and remuneration, and makes
recommendations to the Board of Directors
Decides matters stipulated in the Regulations of
the Investment Committee, including investment,
loans, and borrowings under a certain amount
Decides matters stipulated in the Regulations of
the Brand Committee, including management andlicensing of the SoftBank brand

External Board Director, Independent
Officer

Board Director, Corporate Officer,
Senior Vice President, CFO, CISO &CSusOGroup Risk andCompliance
Committee

Tim Mackey

Sustainability
Committee

Yoshimitsu Goto

Corporate Officer, CLO & GCO

Board Director, Corporate Officer,
Senior Vice President, CFO, CISO &CSusO

Deliberates on policies, promotion systems, andstatus of risk management and complianceactivities of the Company and the Group
companies, and other matters deemed necessary
by the committee chairperson or members
Deliberates over important issues, promotion
policies and related issues regarding sustainability
at the Company and its Group companies

Number of members & composition

3 members(including 2 External Board Directors)

4 members
1 Chairperson
4 members(Corporate Officer, Senior Vice President / Head of the
Corporate Legal Department / Head of the Corporate
Communications Office / Head of the General
Administration Department)

1 Chairperson
2 members(Board Director, Corporate Officer, Senior Vice
President / Corporate Officer, Senior Vice President)

1 Chairperson
3 members(Corporate Officer, Senior Vice President / Corporate
Officer, CLO & GCO / Head of the General
Administration Department)

36

Sustainability of the SoftBank Group

Environment

Society

GovernanceCorporate GovernanceEvaluation of the Effectiveness of the Board of Directors

Approach and Policies on Group Management

SoftBank Group Corp. conducts an evaluation of the effectiveness of the Board of Directors
on an annual basis. The latest evaluation was conducted from November 2020 to April
2021. SoftBank Group Corp. had an independent organization conduct a questionnaire
and interviews with its Board Directors and all of its Audit & Supervisory Board Members
from the perspective of the composition, operation, and support systems of the Board of
Directors, and conducted an evaluation of the effectiveness of the Board based on the
results of the questionnaire and interviews. The results of the evaluation confirmed theoverall effectiveness of the Board of Directors.
At the same time, in the questionnaire and interviews, discussion of management strategy
and planning, establishment and supervision of internal control systems, oversight of conflictsof interest, as well as management and oversight of the Group companies and investees,
were often cited as important roles for the Board of Directors. In light of such roles of
SoftBank Group Corp. as a strategic holding company, it was recognized that there is a needto further enhance reporting on the status of the Group as a whole and to discuss oversightto prevent conflicts of interest. In addition, it was pointed out that there is a need to improve
Board of Directors’ meeting materials, including the depth of information necessary forconsidering and discussing the agenda and the timing of their provision, as well as a need toensure the effectiveness of oversight related to the nomination and compensation of Board
Directors and senior management within the Nominating & Compensation Committee.
The results of the evaluation were reported at the Board of Directors meeting held in April
2021, and the Board has confirmed that it will make improvements with regard to theindicated issues.

SoftBank Group Corp. is working to increase NAV (Net Asset Value) while building a
corporate group that engages in a wide range of businesses in the information andtechnology sectors through direct investments,*1 including those in Group companies, andinvestments in investment funds.*2 In this process, each portfolio company will seek selfsustained growth, while the Company, as a strategic investment holding company, will
support each portfolio company in its increase of corporate value by promoting
collaboration among the portfolio companies by leveraging the Group network.
Furthermore, SoftBank Group Corp. will confirm, or make reasonable efforts to ensure,that each portfolio company operates under standards of environmental, social, andcorporate governance that are substantially equivalent to the standards set forth in the“Portfolio Company Governance and Investment Guidelines Policy.”

Schedule for evaluation of Board of Directors
June
Update and disclosure of the Corporate
Governance Report (including evaluation results)

April-May
Compilation of evaluation results
Analysis of evaluation results
Evaluation results
report submitted at
the Board of Directors
meeting in April

P

A

PDCA cycle
implemented
each year

C
January-March
Implementation of the evaluation plans

Sustainability Report 2021

Resolution on the Corporate Governance
Report at the Board of Directors meeting in
June

D
July-December
Consideration andformulation ofevaluation plans
Evaluation plan reportsubmitted to the Boardof Directors meetingin October*1 Including investments made through subsidiaries.
*2 SVF1, SVF2, etc.

Portfolio Company Governance and Investment Guidelines Policy
In January 2020, SoftBank Group Corp. implemented Portfolio Company Governance andInvestment Guidelines Policy to clarify the standards related to the corporate governance of
portfolio companies that should be considered when the Company and its subsidiaries* 3
consider an investment. This policy covers a wide range of important corporate governanceissues such as a portfolio company’s board composition, founder and management rights,
rights of shareholders (including matters on super-voting shares), and mitigation ofpotential conflicts of interest. The policy sets forth general principles and allows for each
investing entity to exercise discretion with certain limitations. Each investing entity isrequired to monitor the corporate governance of each portfolio company and report to theCompany periodic basis. Annual assessments of compliance with this policy were reported
to SoftBank Group Corp.’s Board of Directors in January 2021. Moreover, in May 2021,
SoftBank Group Corp. revised this policy to go beyond corporate governance to include
environmental and social items with respect to a series of processes from investment
screening through post-investment monitoring to annual assessment. With regard to theenvironmental and social items, we continue to examine ways of establishing best practices
at the Company to ensure greater returns without sacrificing the speed of investment
decision-making.
*3 Includes SVF1, SVF2, and investment subsidiaries managed by subsidiaries of SoftBank Group Corp., but excluding listed companies
and subsidiaries that SoftBank Group is restricted from controlling for regulatory reasons.

37Sustainability of the SoftBank Group

Environment

Society

GovernanceCompliance

SoftBank Group Code of Conduct
As a strategic holding company, SoftBank Group Corp. established the“SoftBank Group Code of Conduct” to further reinforce the entire Group’s
ethics and compliance structure. The SoftBank Group Code of Conduct applies
to everyone at the SoftBank Group - the Group’s directors, officers andemployees in every country, region, business unit and department. SoftBank
Group Code of Conduct clearly describes our five commitments, namely, ourcommitments to integrity and respect; being customer driven; transparency androbustness; diversity, inclusiveness and an engaging environment; and fairbusiness practices. It also stipulates action statements, which provide direction
in conducting business ethically, regarding the five commitments.

Compliance
The SoftBank Group believes that it isessential that we conduct our businessaccording to the highest ethicalstandards, not just in compliance withthe law. All of our business activities are
based on a relationship of trust withsociety, and any act that violates thistrust could threaten the Company’sbusiness activities. Based on this idea, weplace great importance on being anorganization where each and every
employee has a high regard for ethics intheir daily work and the ability to always
act with integrity.

See our corporate website for further details.

Ethical Standards of the SoftBank GroupWe Commit toIntegrity and
Respect

We Commit to
Being Customer
DrivenWe Commit toTransparency andRobustness

We Commit to Diversity,
Inclusiveness and an
Engaging Environment

We Commit to
Fair BusinessSupplier Code of Conduct
The SoftBank Group is expanding its business in a wide range of areas and sectors across the globe in order to become themost needed corporate group in the world, and in furtherance of this goal it has built a diverse supply chain both in Japanand overseas. The SoftBank Group believes that it is essential for our supply chains not only to comply with laws, but also to
conduct business based on high ethical standards. Accordingly, SoftBank Group Corp. formulated the “Supplier Code of
Conduct” in May 2021, which defines the items that we expect of our suppliers, and requires them to work in accordancewith the ethical standards set forth in the Supplier Code of Conduct, together with their suppliers. Going forward, theSoftBank Group will continue to contribute to sustainable development and the resolution of environmental and social
challenges.
See our corporate website for the full text of our Supplier Code of Conduct.

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38

Sustainability of the SoftBank Group

Environment

Society

GovernanceComplianceGroup Compliance Structure

Ethics & Compliance Helpline (Internal Reporting System)

In order to concentrate authority over compliance and address issues quickly, SoftBank
Group Corp. designated the Group Compliance Officer (GCO) as the officer responsible forcompliance across the entire Group, and appointed Tim Mackey, who serves as Corporate
Officer, CLO, and Head of Legal Unit. Each Group company has also appointed a Chief
Compliance Officer (CCO) who is responsible for compliance.
The GCO and the CCOs of each Group company are responsible for planning andexecuting the necessary initiatives for the establishment and strengthening of thecompliance structure to engage in corporate activities that adhere to high social ethics, incooperation with compliance chiefs who undertake monitoring and education of eachdepartment in day-to-day operations. In addition, through sharing information on a regularbasis at the CCO meeting, the GCO and CCOs work to identify and resolve compliancerelated issues while promoting initiatives to raise compliance awareness throughout theGroup.

The SoftBank Group believes that it is extremely important to create an environment in which
employees feel safe to report/consult problems and concerns. This plays a vital role inmaintaining an ethical workplace. The SoftBank Group leaders are responsible for creatingsuch an environment where people can report/consult problems and concerns easily.
All of the SoftBank Group directors, officers and employees have access to multiple
channels to report/consult problems and concerns. In addition to helplines at each Group
company, the SoftBank Group Ethics Helpline has been established by SoftBank Group
Corp. as a secondary channel for all Group companies’ directors, officers and employees toreport/consult problems. Any director, officer or employee who may be uncomfortableusing their company’s helpline may report/consult their concerns to the SoftBank Group
Ethics Helpline, especially for those situations that may have a serious adverse effect on theentire Group. The Ethics Helpline accepts anonymous reporting and has multilingual
support. Through this helpline, directors, officers and employees can report/consult oncompliance issues and concerns that happened at the workplace, such as financial andaccounting fraud, human rights infringement and harassment, all forms of corruption(misappro priation, bribery, etc.), conflicts of interest, and insider trading.
The SoftBank Group conducts timely and appropriate investigations of whistleblowing
cases, verifies the facts, and takes corrective and relief measures as necessary. The SoftBank
Group also takes appropriate actions on those disclosure cases and reports. We have notolerance for any form of retaliation against those who raise genuine concerns, participate
in an investigation, or against those who refuse to participate in misconduct.

Group compliance structure
Board of Directors of SoftBank Group Corp.
Appoint chairperson / oversee

ReportGroup Risk and Compliance Committee of SoftBank Group Corp. (GRCC)
OverseeAppoint

ReportReportGroup Compliance Officer (GCO)
Oversee

Report / consult
Report / assist

Group Compliance OfficeDirect / advise / guideCCO forum (held periodically with GCO)
Report / consult

Chief Compliance Officer (CCO) of Group companies
Report / consult

Employees of SoftBank Group Corp.

Sustainability Report 2021

ReportThis Ethics Helpline is available not only to the SoftBank Group directors,
officers and employees, but also to people outside the group. In the event
the SoftBank Group or its directors, officers or employees discover acts that
violate laws or ethics or that might lead to such violations, please use thefollowing link to report/consult a case.
Click here to report/consult with the Ethics & Compliance Helpline.

Employees of Group companies

39Sustainability of the SoftBank Group

Environment

Society

GovernanceCompliance

Educational/Awareness ProgramsGroup Policies

The SoftBank Group conducts training and awareness-raising activities to ensure that
directors, officers and employees recognize high-risk compliance areas and have theinformation they need to make the right choices. In addition, based on the results of risk
assessments, we provide training to directors, officers and employees regarding risk areas
such as insider trading and conflicts of interest.
SoftBank Group Corp. conducts annual training based on the SoftBank Group Code of
Conduct for its officers and employees to deepen their understanding and ensure thoroughcompliance with the Code of Conduct. Furthermore, we have introduced a global training
system and provide training based on the Code of Conduct and focus on certain high-riskareas for the Group companies in Japan and overseas.
As one example of our compliance awareness-raising activities, SoftBank Group Corp.
holds a Compliance Awareness Month annually for directors, officers and employees of theCompany and those at its major subsidiaries in Japan and overseas. During Compliance
Awareness Month, we conduct a variety of initiatives to enhance compliance awareness,
including an employee survey that measures compliance awareness, the distribution of
weekly quizzes, and compliance-related training. Moreover, we periodically deliver
animated videos featuring everyday compliance issues to enable our directors, officers andemployees to learn about ethical behaviors. In addition, the management and GCO deliver
messages to employees regarding compliance based on the results of the employee survey.

SoftBank Group Corp. has established minimum requirements referred to as “The SoftBank
Group Policies,” which each Group company must comply with in high-risk complianceareas. The SoftBank Group Policies cover the areas of anti-corruption, competition law,
conflicts of interest, management of investment conflicts, governance of portfolio
companies, insider trading, economic sanctions, risk management, information security,
privacy, brand management, human rights, and the environment.

Compliance-related training and awareness-raising
activities conducted in fiscal 2020 (SoftBank Group Corp.)
Training on the SoftBank Group Code of Conduct
Training on insider trading
Training on conflicts of interest
Delivering animated videos of alerts regarding information leaks
Delivering animated videos of alerts regarding the handlingof personal information
Delivering animated videos that give reminders on taking
annual leave
Compliance Awareness Month

Compliance Starts
with YOU!

FY2020compliance slogan

Anti-corruption Initiatives
Under the supervision of the Board of Directors, the SoftBank Group promises in its “Anticorruption Policy” to conduct business ethically, to be intolerant of any form of bribery andcorruption, and to comply with all applicable laws prohibiting bribery and corruption(hereinafter “laws and regulations related to anti-corruption”). Also, we ensure that all
Group employees fully acknowledge and observe the Anticorruption Policy to prevent
corruption in any form which would constitute an ethics and compliance violation by theGroup. Furthermore, we ask for the cooperation of our suppliers to prevent corruption
through our Supplier Code of Conduct.
Each group company sets internal rules and procedures to efficiently reflect the Anticorruption Policy into the business process, considering laws and regulations related toanti-corruption. When SoftBank Group Corp. conducts transactions with a third party, we
confirm in advance whether there are any conflicts of interest with the business partner in
addition to preventing corruption, and whether the business partner does not fall under aparty subject to economic sanctions or anti-social forces.
When SoftBank Group Corp. or its subsidiaries make a new direct investment, we alsoseek to understand the risks related to compliance and internal controls. In the investment
decision-making process, due diligence is conducted not only on the business of theinvestees but also on the status of legal compliance.
See our corporate website for the full text of our Anticorruption Policy.

Compliance awarenessanimation video

Sustainability Report 2021

40

Sustainability of the SoftBank Group

Environment

Society

GovernanceRisk Management

Risk Management System

Risk Management
Risk management, which protects theinterests of stakeholders and ensuresbusiness continuity, is essential to acompany. There are a wide variety ofrisks to be managed by the SoftBank
Group, which operates its businessglobally under the corporate philosophy
of “Information Revolution — Happinessfor everyone.” In order to deal with theserisks, we analyze the risk information wecollect and work to build a system toprevent identified material risks andminimize losses.

In November 2020, SoftBank Group Corp. appointed the Chief Risk Officer (CRO) and established the Risk Management Office
to strengthen our risk management system. Supervised by the CRO, the Risk Management Office spearheads Group-wide risk
management activities.
We have developed the “Risk Management Policy” and it is applied to all directors, officers and employees in order toenhance risk management on a Group-wide basis. The Policy encourages active participation and secures the effectiveness ofrisk management by sharing the objectives of risk management across the Group and defining the roles of directors, officers
and employees and persons in charge of risk management. Under
the Policy, each department at SoftBank Group Corp. is making
Group risk management systemevery effort to reduce and prevent risks arising from its operation
based on Risk Management Regulations. Also, each Group
Board of Directors of SoftBank Group Corp.
company appoints risk managers and takes the initiative
Direct / oversee
Reportautonomously to reduce and prevent risks in its business activities
Group Risk andin accordance with the Group company Management
Compliance Committee ofRegulations, which stipulate matters to be reported to SoftBank
SoftBank Group Corp.
ReportDirect / oversee(GRCC)
Group Corp. These policies and regulations are reviewed
periodically and approved by resolutions of SoftBank Group
ReportDirect / oversee
Corp.’s Board of Directors, among others.
Chief Risk Officer (CRO)In addition, when an incident occurs that may have a material
Risk Management Office
impact on the Group’s execution of business activities orReport / cooperate
Manage / assist
Manage / assist
Report / cooperate
reputation, an immediate report to the Risk Management Office
Each department of SoftBank
Each Group company
Group Corp.
risk managers
is required in accordance with our policies and regulations.
Depending on the situation, the Risk Management Officecollaborates with SoftBank Group Corp.’s departments andGroup companies to ensure that appropriate measures are taken.

Group Risk and Compliance Committee (GRCC)SoftBank Group Corp. set up the Group Risk and Compliance Committee (GRCC) to oversee risk management and complianceprograms across the Group. The GRCC, which consists of the Company’s Board Directors and Corporate Officers, works toenhance the risk management system on a Group-wide level by discussing policies on risk management activities andcountermeasures for material risks on a quarterly basis with related risk management parties. The details of the discussions arereported to and overseen by the Board of Directors, pursuant to the Board of Directors Regulations.
The GRCC for fiscal 2020 were held in April, June, and October 2020, and January 2021. In addition to reporting on activities
related to risk management and compliance promotion, deliberations were held on the status of governance at portfolio
companies, the strengthening of information security, ESG-related responses, insider information management and othermatters aimed at the sustainable growth of the entire Group.
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41

Sustainability of the SoftBank Group

Environment

Society

GovernanceRisk Management

Risk Management Initiatives

Responses to Risks Surrounding the Company

The Risk Management Office of SoftBank Group Corp. works to strengthen risk
management activities by identifying and responding to risks, with the aim of eliminating
and/or reducing factors that obstruct the sustainable growth of the entire Group.

Identifying Risks
The Risk Management Office is pursuing thefollowing initiatives in order to gain acomprehensive understanding of the various risks
the Group is facing.
Prior confirmation of important agenda items
The Risk Management Office reviews important agenda
items and proposals to be resolved by SoftBank Group
Corp.’s Board of Directors and other decision-making
bodies. By ensuring that risk-related information isproperly reflected in agenda items, the Risk
Management Office provides the information necessary
for decision-making.

Group-level risk analysis

Our risk management processPrior
confirmationof important
agenda items

Group-levelrisk analysis

Collection ofrisk-related
informationfrom eachGroup company
and department

Identifying material risks
Determine countermeasures
Management reporting / Feedback
Monitoring

Eliminating and/or reducing obstructive
factors to the sustainable growth of theentire Group.

We recognize that maintaining a sound financial base is one of the management challenges for
SoftBank Group Corp. Accordingly, the Risk Management Office conducts stress tests to analyze
how a potentially significant future deterioration in economic and financial conditions might
adversely affect our key management indicators. For portfolio companies in which we makeintensive investments, the Risk Management Office also strives to understand the material risk
factors that these companies are facing.

Collection of risk-related information from each Group company and department
The Risk Management Office regularly collects information on risks, including non-financial risks,
identified by Group companies and SoftBank Group Corp.’s departments, and receives incident
reports when risks materialize.

Responding to Risks
Based on information collected by the procedures above, the Risk Management Officeidentifies material risks at the Group level by analyzing and evaluating the impact andlikelihood of the risks. Material risks are reported to and discussed by the GRCC and theBoard of Directors. Based on the results of those discussions, the Risk Management Officeconsider countermeasures and monitors the status to confirm the effectiveness of thosecountermeasures.
Sustainability Report 2021

Financial Risks
SoftBank Group Corp. mainly makes equity investments in high-tech companies through
SoftBank Vision Fund 1 and 2, SB Northstar LP, and SoftBank Latin America Fund. At thesame time, in order to maintain a sound balance between assets and liabilities, we strive toadhere to the financial policy that utilizes indicators such as loan-to-value (LTV).*1 However,
the Company’s financial base may be threatened in the event of a large-scale financial
crisis, such as the global financial recession triggered by the subprime mortgage crisis, or asudden deterioration in the business of large portfolio companies. To this end, we conduct
stress tests based on assumptions of past large-scale market fluctuations, and identify
concentration risks at large portfolio companies for use in discussions aimed at enhancing
our crisis management.
*1 An index calculated as net debt divided by the equity value of holdings of the SoftBank Group Corp.

Non-financial Risks
With regard to non-financial risks, we focus on understanding the risks that may be factors
in obstructing the sustainable growth of the entire Group and the status of responses tothese risks. This is done through regular collaboration with each department of SoftBank
Group Corp. and major Group companies. We hold discussions with related parties on avariety of risks, including ESG responses such as climate change and human rights, as wellas conflicts of interest, reputation, and information security. We assess the materiality ofeach risk and consider countermeasures from the perspective of the entire Group.

Major risks

Response status

Deterioration of financial baseStress test analysis, monitoring major risks of large
portfolio companies.

Country risks

Concentration analysis by country/region, ascertaining
regulatory trends, etc.

Unforeseen situations befalling
our representatives

Formulation of contingency plans, including action
guidelines and proactive measures.

Delay in ESG responses

Discussions on important ESG issues led by the
Sustainability Committee, and reflecting them in various
policies and measures.

Information security risks

Appointment of a Chief Information Security Officer,
education and training sessions for officers and employees,
and strengthening of the monitoring system using AI.

42

Sustainability of the SoftBank Group

Environment

Society

Governance

Information Security

Principles for Information Security
The SoftBank Group Corp. establishes the “Information Security Policy” and the “Privacy Policy” as its principles on information
security. To ensure information security for the entire Group, both policies require compliance not only by directors, officers andemployees of SoftBank Group corp. and its Group companies, but also by third parties who conduct business on behalf of theCompany, such as suppliers and contractors.
See our corporate website for the full text of our Information Security Policy.
See our corporate website for the full text of our Privacy Policy.

Information
Security
While the use of digital technology is
expanding in all fields, convenience andefficiency in our daily lives and businessare increasing. At the same time, newrisks are emerging as threats including
cyberattacks are becoming moresophisticated and complex. As a leader in
the Information Revolution, the SoftBank
Group will establish and maintain strong
information security within the Groupduring the development of a wide rangeof businesses. The Group will identify andmanage information risks surrounding
the Group and take appropriate
measures.

Information Security Governance Structure
The SoftBank Group Corp. has appointed Yoshimitsu Goto, Board Director,
Information security governance structure
Corporate Officer, Senior Vice President of SoftBank Group Corp., as Chief
Board of Directors ofInformation Security Officer (CISO). We promote and enhance information security
SoftBank Group Corp.
governance of the entire Group, through the operation of the Group Information
Security Committee, which consists of the CISOs of each Group company.
Chief Information Security Officer
We have established and are implementing a risk management process to(CISO)
identify and manage risks related to information security. For material risks, we
examine policies based on analyses of the causes and effects, and encourageGroup companies to implement risk countermeasures. To identify potential risks at
Group Information Security Committee
an early stage and prevent them from materializing, we collect information on
threats and vulnerabilities that could lead to the infringement of information
assets. We share this information with Group companies, and monitor the
CISOs of each Group company
implementation of risk countermeasures at each Group company, so that we canprevent the occurrence of incidents and minimize their impact. Furthermore, whena major information security incident occurs, the department in charge responds
to and recovers the situation quickly and appropriately under the CISO's
supervision. At the same time, we analyze the causes of incidents, identify future issues, and reflect them in the information
security strategy of SoftBank Group Corp. and the entire Group, in order to prevent a recurrence. We also use suchinformation to improve the contents of security education for officers and employees.

Information Security Measures
SoftBank Group Corp. and its Group companies are working on information security measures from four perspectives inorder to address the risks surrounding the Group. The Group protects its important information assets by implementing
measures from the following perspectives: Organizational Measures to ensure appropriate control throughout theorganization; Physical Measures to prevent the physical destruction or unauthorized removal of information assets; TechnicalSustainability Report 2021

43

Sustainability of the SoftBank Group

Environment

Society

Governance

Information Security

Personnel Measures

Measures to prevent threats such as cyberattacks, and internal fraud; and Personnel
Measures to improve awareness and capabilities on information security of directors,
officers and employees, and outsourced workers.

Organizational Measures
Organizational
measuresImportant
information
assetsPhysical measures

Physical Measures

Information security measures

Technical measures

We maintain a management system to implement andstrengthen information security management, andformulate an information security plan on an annual basis.
The plan is formulated in consideration of the consistency
with our vision and technological progress, relevant laws
and regulations, and risk assessment for the entire Group
including SoftBank Group Corp.

We have set up security areas and implemented access
Personnel measurescontrol using IC cards and facial recognition, in order toprevent unauthorized intrusion into our offices andphysical destruction and unauthorized removal of
information assets. For information handled in the course of business, we have introduced
security printers that require IC card authentication for printing, and adopted a clean desk
policy to prevent documents and information media from being left unattended on desks,
thereby preventing information leaks to third parties. Furthermore, in addition to
responding to misconduct, we are taking measures such as data backup to remote locations
to protect information assets, due to the need for management of the business continuity
to improve the resilience to disasters.

Technical Measures
The SoftBank Group Corp. has implemented technical measures to prepare for threats suchas cyberattacks and internal misconduct. In order to respond to the current trends, such as
the use of cloud computing and work-style reforms, we have adopted “Zero Trust” typenetworks that only permit connections when trust can be established, rather than theconventional perimeter-type security measures that isolate internal and external networks.
This helps to realize and ensure robust security independent of the work environment. In
addition to threat analysis by a third-party organization and 24/7 security monitoring by the
Security Operation Center, regular penetration tests are conducted to analyze andstrengthen system vulnerabilities. Furthermore, as a measure to prevent internal
misconduct, we conduct behavioral analysis using operation records of information systems
for officers, employees, and outsourced workers to detect high-risk behavior and takecountermeasures.

Sustainability Report 2021

Some information security risks are difficult to be mitigated through physical and technicalmeasures. In order to minimize such risks, we continuously educate our officers, employees,
and outsourced workers to improve their awareness and capabilities regarding information
security. For security education for our officers and employees, we have prepared ane-learning environment which allows them to take courses without being restricted bylocation or time. In addition to the regular implementation of this e-learning, we haveestablished a security portal website on our internal information website to present related
regulations and guidelines, and to inform employees of the consultation desk in case of
accidents. This security training is also shared with Group companies to improve awarenessand capabilities across the entire Group, and we require our officers and employees, as wellas outsourcing companies, to thoroughly comply with relevant laws and regulations andconfidentiality.

Strengths of the SoftBank Group's Information Systems and Security
Cooperation with portfolio companies and Group companies
One of the strengths of the SoftBank Group is that it has a wide variety of Group companies
and portfolio companies that operate globally. By regularly sharing information on security
threats and countermeasures with each company, we not only keep abreast of the latest
information of security measures at all times, but also quickly introduce advanced services
and systems developed by each company to maintain a secure work environment.

Human capital development
In addition to training white hackers*1 to respond to cyberattacks, SoftBank Corp. hasorganized the Computer Security Incident Response Team (SoftBank CSIRT), which consists ofabout 250 internal staff members and responds to service security incidents such as
information leaks and service outages caused by cyberattacks. The SoftBank CSIRT preventssecurity incidents before they occur and minimizes damage through prompt incident response.
*1 Engineers who use their in-depth knowledge of computers and networks as well as advanced technologies to contribute tosociety.

44

Sustainability of the SoftBank Group

Environment

Society

Governance

Major External ESG Evaluations / Corporate Data

Major External ESG Evaluations (As of August 31, 2021)

Corporate Data (As of March 31, 2021)

Selection for ESG Indices
IndicesCompany names(corporate status omitted)

Corporate name

SoftBank Group Corp.

Corporate website

https://group.softbank/en/

Established

September 3, 1981

Dow Jones Sustainability World Index (DJSI World)
Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific)

Z Holdings

FTSE4Good Index Series*1
FTSE Blossom Japan Index*1

SoftBank GroupSoftBank
Z Holdings

Corporate
headquarters

1-7-1, Kaigan, Minato-Ku, Tokyo
105-7537, JapanMSCI Japan Empowering Women Index (WIN)*2

SoftBank GroupZ Holdings

Telephone number+81-3-6889-2000

MSCI Japan ESG Select Leaders Index*3

SoftBank
Z Holdings

Representatives

Masayoshi Son, Representative
Director, Corporate Officer,
Chairman & CEO

Common stock

238,772 million yen

Subsidiaries

1,408

Associates

535

Joint ventures

34

Number of
employees

241 (consolidated basis: 58,786)

Main business

Pure holding company

Independent
auditor

Deloitte Touche Tohmatsu

Major Evaluations and Certifications (corporate status omitted)
CDP
SoftBank Group / SoftBank
Received an “A-” score in the climate change category
from CDP, an international non-profit environmentalorganization.

Health & Productivity Management Outstanding
Organizations Recognition Program (White 500)
SoftBank / Z Holdings
Certified as a Health & Productivity Management
Outstanding Organization in the large enterprise
category (White 500).

Science Based Targets (SBT)

Eruboshi

SoftBank
The targets set forth in the “Declaration of Carbonneutral 2030” approved as “Science Based Targets(SBT),” as they are based on scientific evidence.

SoftBank
Certified as an “Eruboshi” (certification level 2) as acompany with outstanding initiatives to promote theactive participation of women.

EcoVadis

Kurumin / Platinum Kurumin

SoftBank
Granted a “Silver” rating in a survey conducted by EcoVadis, a Frenchevaluation organization specializing in sustainability assessment of supply
chains.

SoftBank Group / SoftBank
SoftBank Group Corp. granted “Kurumin” certification, and
SoftBank Corp. granted “Platinum Kurumin” certification,
respectively, as excellent childcare support companies.

See the official website of each company for further details.

SoftBank Group Corp.

SoftBank Corp.

Z Holdings Corporation*1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SoftBank Group Corp., SoftBank Corp., and Z Holdings Corporation has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements tobecome a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good
indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
*2 THE INCLUSION OF SoftBank Group Corp. and Z Holdings Corporation IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SoftBank Group
Corp. and Z Holdings Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
*3 THE INCLUSION OF SoftBank Corp. and Z Holdings Corporation IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SoftBank Corp. and Z
Holdings Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Sustainability Report 2021

45

Disclaimers
This report provides relevant information about the Group and does not constitute or form any solicitation of investment, including any
offer to buy or subscribe for any securities in any jurisdiction.
This report contains forward-looking statements, beliefs or opinions regarding the Group, such as statements about the Group’s futurebusiness and future position, including estimates, forecasts, targets and plans for the Group. None of the Group nor its management gives
any assurance that the estimates expressed in these forward-looking statements will turn out to be correct, and actual results or
performance could materially differ from expectations.

Inquiries
SoftBank Group Corp.
https://group.softbank/en/contact

SoftBank Group Corp.
https://group.softbank/en/
Copyright © 2021 SoftBank Group Corp. All Rights Reserved.