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Foundation of Sustainability Management ︱Sustainability Management

Basic Philosophy▍Policies andGuidelines onSustainability

Management Philosophy

P. 24

Sustainability Policy
Sustainability-Related Policies of Human Rights Environmental Procurement
PolicyPolicyPolicythe Sanki Engineering GroupSanki Group
Code of Conductand Action
Guidelines

Sanki EngineeringGroup Materiality

Stakeholder Engagement

https://www.sanki.co.jp/en/csr/governance/engagement/

Foundation of Sustainability Management

In accordance with its management philosophy of “creating comfortable environments through engineering and widely
contributing to social development,” the Sanki Engineering Group formulated its Sustainability Policy and laid out its“Vision for 2050—Sanki, The Enduring Company of Choice.” We are promoting sustainability management by addressing
stakeholder demands and expectations and incorporating them in our corporate activities and by contributing
technological solutions to social issues. We have also identified the five materiality issues of the Sanki Engineering Groupand have set KGIs and KPIs under our Medium-Term Management Plan “Century2025” Phase 3 (FY2022–2025) to assess
the progress of our initiatives. Through these efforts, we will contribute to the environment and society while at thesame time securing profit to achieve sustainable development for many years to come

System for Promoting Sustainability▍Sustainability
Promotion System

Board of Directors
Discussion, reporting

Supervision

Management Meeting
Discussion, reporting

Leadership, supervision

Monitoring, guidance,
support, education

Sustainability Promotion Council
Information sharing, collaboration

Decides on important issues andmeasures to realize sustainablemanagement. Meets twice a year.
Composition
Chairperson:
President and Representative
DirectorM embers:
Directors and persons nominatedby the chairperson
S ecretariat:
Sustainability Promotion
Department
Main Agenda for FY2022• O utlook for carbon neutrality andpromotion of decarbonization
measures• E nhancement of the SANKI YOU EcoContribution Point system

SustainabilityPromotion Council

Sustainability Committee
Repor ting

Sustainability Committee

Plants & Machinery Systems Business

The Sustainability Committee deliberates and decides on key issues and measuresrelated to sustainability. In addition, a Sustainability Promotion Council, consistingof personnel in charge of sustainability from each division, was established as asubordinate body of the Sustainability Committee to examine and disseminate
measures, review the progress of each division’s materiality-based activities,
and monitor related trends and information. Agenda items that significantly
impact business and management strategies are submitted and reported tothe Management Meeting and the Board of Directors for decision and approval,
depending on their relative importance. The Board of Directors supervises
the progress of activities based on the KGIs and KPIs set in the Medium-Term
Management Plan. This system enables us to address sustainability issues in all ourbusiness activities, including throughout the supply chain.

Sections, centers, headquarters,
business division, businessdepartments, branches and branchoffices, Group companies

Sustainability Promoters

Risk Management
Issues identified from the risks and opportunities related to our value chain areevaluated and prioritized against the two axes of improving corporate value andimproving environmental and social value, to determine our five materiality issues
and incorporate them into our measures and target setting for the Medium-Term
Management Plan. Over the course of this process, we ensure these considerations
are appropriately reflected in our decision-making for sustainability managementby collaborating with the Risk Management Committee, which oversees andmanages risks for the entire Group.

Implements measures to ensure
awareness of sustainability-related
policies and keeps track of progress.
Meets twice a year.
Composition
Members:
Sustainability promoters from eachdivision
Secretariat:
Sustainability Promotion Department

P. 87

Risk Management

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