Sustainability

Sustainability Promotion Framework

Stakeholder Engagement

We are conscious of our corporate social responsibility. As such, Yokowo is constantly striving to improve our corporate
value as well as establish a sustainability promotion framework, and we will expand our corporate activities to both
meet the expectations of all stakeholders and to earn their trust.

At the Yokowo Group, our purpose is based upon a commitment to make Yokowo a good company by employing
people and technologies that work for the benefit of society today and tomorrow. We are also communicating withall our stakeholders including our customers, local communities, business partners, employees and their families,
shareholders, and investors to envision a better and more prosperous future, and we aim to become an evolving,
enduring company that continues to create something new.

Establishment of Sustainability
Committee
We decided to establish a Sustainability Committee to act
as a body to comprehensively address the three materialities
identified by the Group̶Environment, Community, andDiversity and Inclusion.
This Sustainability Committee is tasked with formulating
policies aimed at achieving the goals of these materialities andissues with implementation, and with reporting and sharing
information regarding the status of Group initiatives towards
sustainability to the Board of Directors.

Themes handled by the Sustainability
Committee, and Outline
Theme

OutlineEnvironment

Deliberation, planning, and progress
management of measures towards achieving
the targets of the Group GHG emissions
reduction, water resources, waste recycling,and biodiversity, and monitoring of chemical
substance management status in accordancewith laws and regulations in each country

Human Rights
Protections

Deliberation and progress management forthe protection of human rights in the Groupʼs
supply chain

Local Communities

Deliberation and progress management of2030 targets (numbers of projects contributing
to local communities, etc.), and support forreviewing of action plans

Diversity andInclusion

Deliberation and progress management of2030 targets (increasing ratio of female leaders,
number of TISP hires, etc.), and support forreviewing of action plans▼ Sustainability Committee Framework
Board of Directors
Reporting of ESG themes, etc.

Opinions anddecisions on reports

Sustainability Committee
Chairperson
President and Executive OfﬁcerSecretariat

Committee Members(Senior Managing Executive Ofﬁcer,
Managing Executive Ofﬁcer)

Information Security(Audit & Supervisory Board
Member, Outside Director)

Occupational Healthand Safety

Treatment ofEmployees

Issues related to reforms in the personnelsystem (transition to a job-based personnelsystem, improved treatment, etc.) and thewelfare system in general

Fair Trade

Issues related to status of compliance with laws,regulations, and internal rules concerning fairtrade practices, and to the status of internaland external education in order to ensure
thorough compliance

Risk Management

Collaboration with the Business Risk
Management Committee and each ISO Divisionregarding progress and changes in measures tohandle each risk assessment item

Business Continuity
Planning (BCP)

Collaboration with each business division
regarding construction of BCP and its updates

Role of Sustainability Committee
1. To prepare and review draft sustainability policies andmateriality policies in light of factors such as the Group
Corporate Philosophy structure and business environment.
(Decisions are made by the Board of Directors)
2. To receive reports from relevant internal organizations onmateriality and ESG-related themes, and to report and assist
in reporting to the Board of Directors.
3. To disseminate information accumulated from the cycleof “report to Board of Directors → disseminate opinions
and suggestions from the Board of Directors to relatedorganizations → further improve initiatives” in 2 above, alongwith decisions made by the Board of Directors.

31

Yokowo 2023 Integrated Report

Customers

Concepts and Vision
The Yokowo Group has as our objective to “Be acompany that customers and their customers feel
comfortable working with.”
To achieve this, as well as establishing the“Yokowo Quality Brand” focusing on the highest
quality and on zero hazardous chemical substances,Yokowo is making proposals from the planningstage keeping in mind the development of productsthat meet customer needs, always striving tounderstand their requests, and working to build
long-term relationships of trust with customers.

LocalCommunities

The Yokowo Group has as our objective to“Be a company that local communities feel
comfortable interacting with,” and to this end,
we feel it important to promote dialogue withlocal communities, as well as to contribute to theirdevelopment.
Our aim is to build relationships of trust withmembers of local communities while helping themunderstand our business and initiatives throughactivities that support their development, andinitiatives that contribute to solving societal issues.

Business Partners

The Yokowo Group has as our objective to“Be a company that our business partners feel
comfortable interacting with,” and to this end we
ensure fair and equitable transactions with oursuppliers. We are focused on building relationships
with business partners as an equal partner, abide by
all relevant laws and regulations, and are building
trust relationships based around social ethics. We
are also promoting corporate activities that take into
consideration human rights and the environment.

Collaboration with the Information Security
Committee regarding information security
activities based upon ISO27001
Collaboration with the Health and Safety
Promotion Committee regarding occupational
health and safety activities based uponISO45001

ObserverStakeholder

Employees andtheir families

The Yokowo Group has as our objective to “Be acompany where employees feel comfortable being
employed, and which ensures that employeesʼ
families are happy for them to work there.”To this end, we are striving to respect individuality,
engage in fair and equitable treatment, and create anappealing, rewarding work environment under ourbasic policy of promoting DEI*. Aimed at fostering aculture in which each and every employee can feelcontent in their day-to-day work and continue togrow, we are working on a range of environmental
improvements and initiatives.

Shareholders andInvestors

The Yokowo Group discloses information
accurately, promptly, and proactively in orderto build long-term relationships of trust with its
shareholders and investors and other stakeholders.
The Group is also conducting active, constructive
dialogues with shareholders and investors in orderto achieve continuous growth and to improve
corporate value over the medium to long term.

Main Methods and Opportunities● Daily sales activities

Department
Responsible

Sales H.Q.
Each Business Division● Product exhibitions● Website● Dialogue with local governments, local

residents, NPOs, and others in the areas
where our plants and offices are located● Participation in, and sponsorship ofcommunity events● Community volunteer activities byemployees● Cooperation with, and support for local
educational institutionsGeneral Affairs
Department● Daily purchasing activities● Presentations on chemical substances

contained in products● Environmental assessment that includes

constituent analysis of supplied items

Purchasing H.Q.
Quality Assurance H.Q.

● Questionnaires for customers, and visits● Measures towards quality improvements● Implement employee engagement● Employee training (training by position,education in philosophy, etc.)● Holding of employee exchange meetings(product engineering, productionengineering, QC)● Internal portal site, in-house newsletters● Internal reporting system and hotline

PersonnelDepartment
Public Relations &Equity Department
Each Engineering
Department● Shareholder meetings● Financial results briefings for securities

analysts and investors● Meetings with Japanese and overseas

Public Relations &Equity Department

securities analysts and investors● Website (IR, investor relations)*DEI: Diversity, Equity, and Inclusion

Yokowo 2023 Integrated Report32