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Sustainability Management

Sustainability Management

The Meiden Group’s Sustainability Management
Currently, the social environment in which the Meiden Group operates, continues to undergo drasticchanges, such as the impact of accelerating climate change since the industrial revolution, digitalization
through technological innovation, and diversification of values and lifestyles of people.
Amid such profound social changes, we have depicted the Meiden Group’s ideal society of 2030 with aneye to the worldview of 2050, by combining Meiden’s DNA of “integrity,” “responsibility,” and “socialcontribution,” which are our strengths since the establishment of the Group, with the DNA that we must
not lose of “innovative spirit” and “taking-initiative mind.” This ideal society is “a resilient society wherehumans live in harmony with nature,” “a society that feels safe, prosperous, and exciting,” and “a society
where different communities and people can coexist.” With such a mindset, the Meiden Group has set its
vision of an ideal state of being, which is sustainability partnerships that “work to build a new society
through integrity to the earth, society, and people, and through the power of co-creation.”
In order to contribute to the creation of a new society through business activities, we will focus on thefour areas of “renewable energy,” “sustainable infrastructure,” “green mobility,” and “smart industry,”
based on the infrastructure-related technology and know-how that we have developed over many years,
and the trust and results of our customers. The values that must be held by everyone who works in theMeiden Group are “sustainability,” “diversity,” “integrity and sense of responsibility,” and “futureorientation” to achieve this society. We will apply these four values to our day-to-day activities, and underMedium-term Management Plan 2024, which commenced in FY2021, the Meiden Group aims to take a“Big Jump” in our growth and achieve sustainable corporate growth, by promoting management focusedon ESG and sustainability.

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Sustainability Partnerships
We defined the term “Sustainability Partnerships” to specifically articulate the Meiden Group’s ideal form.
“Sustainability Partnerships” fulfil dual roles to realize the Meiden Group’s goals of achieving people’s
happiness and a sustainable global environment.
The first is that we partner with society as a member of society to achieve a sustainable globalenvironment. The other indicates our role as a partner to work with various stakeholders such as
employees, shareholders, investors, and customers, to achieve sustainability.
Our main contributions include contributing to carbon neutrality, which enables environmentallyconsiderate lifestyles of people and industry and another is wellbeing, the idea that focuses on building asociety based on people’s happiness.
Firstly, contributing to “carbon neutrality” requires supporting a carbon-free society based on
environmentally considerate products, as well as, making the Meiden Group shift toward becoming
carbon-free.
Secondly, wellbeing requires the provision of infrastructure and services for safe and secure lifestyles, thecreation of a society with a feeling of connection and diversity, and the provision of excitement to societyby the Meiden Group taking the lead in depicting a new world.
The role of “Sustainability Partnerships” combine these two aspects, and fulfilling this role through ourbusiness activities will lead to the realization of our ideal society.

Promoting Sustainability Management(1) GovernanceTo enhance its corporate value in terms of sustainability, the Meiden Group is strengthening its
sustainability promotion structure. The Representative Director, President and Executive Officer has
ultimate responsibility for management decisions related to sustainability.
Since FY2022, the ESG Management Promotion Committee, which had been in place until the previousyear, has been reorganized into a two-tiered structure consisting of the Sustainability Management
Strategy Committee and the Sustainability Management Promotion Committee. The aim is to separate
management decisions from the monitoring of progress. Matters discussed by these bodies are regularly
reported to the Executive Officers’ Meeting and the Board of Directors twice a year.
Relevant divisions are currently discussing the selection of target indicators and evaluation ratios to tie
executive compensation to sustainability.

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Topics of Discussion by the Two Committees (FY2022)
When
Sustainability Management
Strategy Committee

Topic

1st half

The Meiden Group’s materiality, direction for water Infrastructure update at Numazu Works

2nd half

Decarbonization progress and future direction, human capital management, external evaluation analysis,
and future development

Sustainability Management
Promotion Committee

1st quarter

Sharing an overview of sustainability management and measures for it

2nd quarter

Environment (progress reducing Scope 3 emissions, green products)
Progress on measures to foster human capital and the corporate culture (Meiden Mirai Meeting)

3rd quarter

Environment (progress reducing Scope 1 & 2 emissions, ICP price changes)
Fostering human capital and the corporate culture (Meiden Mirai Meeting, My Vision/My Challenge,
fostering human capital)

4th quarterEnvironment (TCFD, progress reducing Scope 1, 2, & 3 emissions)
Fostering human capital and the corporate culture (Meiden Mirai Meeting, My Vision/My Challenge)(2) Risk Management
The Risk Management Committee manages risk for the entire Meiden Group. Working with related
divisions, the Sustainability Management Promotion Division, which promotes sustainability
management, plays a central role in identifying risks related to sustainability in general. These risks areincorporated into company-wide risks and managed together with them.
(3) Strategy
The Meiden Group strives to realize a sustainable society and sustainable growth. Our 2030 Ideal State ofBeing/Vision is “Work to build a new society through integrity to the earth, society, and people, andthrough the power of co-creation - Sustainability partnerships -.” To achieve our three societal goals andsustainable growth for the Group, we have established four business domains that can leverage
Meidensha’s unique characteristics. We have furthermore defined our value creation process andidentified six material issues to address in particular. The Corporate Policy Planning Group takes the leadin identifying materiality. To do so, it exchanges opinions with each business group and cross-functional
divisions, then holds discussions at the Sustainability Management Strategy Committee, Executive
Officers’ Meeting, and Board of Directors.

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Identification of Materiality(4) Indicators and Targets
In light of the above, the Group has set non-financial indicator targets in Medium-term Management Plan2024.
Targets
GHG emissions from business activities

FY2024: Reduce by 6%(Scope 1 and 2, compared with FY2019)

FY2030: Reduce by 30%

GHG emissions during product use

FY2024: Reduce by 6%(Scope 3, compared with FY2019)

FY2030: Reduce by 15%

FY2022 results
Scope 1 and 2 reduced by 7%

Scope 3 reduced by 10%Achieve RE100 by 2040 and carbon neutrality by 2050
Female officer class (inside officers)

FY2024: At least 10

FY2030: At least 3(of which, at least 1 executiveofficer)
Non-Japanese presidents of local subsidiaries

FY2024: At least 31

FY2030: At least 5(of which, at least 1 executive
officer)**eNPS (NPS® for employees) (compared with FY2021)

FY2024: 10% improvement

1.4% poorer

New businesses net sales

Fiscal 2024 net sales: ¥5 billion¥400 million

eNPS (NPS® for employees): Abbreviation of Employee Net Promoter Score, an indicator that measures employee loyalty (i.e., employees’ level of trust in and attachment to theirworkplace)*NPS® is a registered trademark of Bain & Company, Fred Reichheld, and Satmetrix Systems.

Spreading the Sustainability Vision
Meiden Mirai Meeting: A Conversation between Employees and Management
In FY2022, we updated our event bringing employees and management together for a conversation andrenamed it Meiden Mirai Meeting. The meeting is a chance for each person to learn what their own workmeans in terms of our business strategy and achieving sustainability management. It is also a chance toreconsider how their actions bring value to society.

Meiden Mirai Meeting (Numazu Works)

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My Vision/My Challenge
Meidensha strives to respect individual diversity and draw out each employee’s taking-initiative mind andmotivation. To that end, we launched “My Vision/My Challenge,” an initiative for employees to reflect on
their own life vision, compare it with the company’s vision, and put into words what challenges they willtake on in the Meiden Group. We believe that employees take true sustainability management personallywhen the vision and mission of the company and each division overlap with the individual’s vision. We
furthermore believe that increasing the overlap and our efforts to support employees who take thesechallenges will lead to greater individual satisfaction and growth as well as to the achievement of thevision and mission of the company and each division at the same time. In FY2022, members of upper
management put their “My Vision/My Challenge” into words. We plan to expand this to executive officers
and employees with management responsibilities in FY2023.

Meiden Group Initiatives for Sustainable Development Goals (SDGs)
At the UN Sustainable Development Summit in 2015, the world adopted common goals known as theSustainable Development Goals (SDGs)*. The SDGs are challenges the international community isaddressing over the 15 years from 2016 to 2030.
The targets of the SDGs are very compatible with the ESG Vision and business activities of the Meiden
Group. They include many areas where we can contribute to a solution with technologies and expertise
we have cultivated over the years. Thus, to really learn and take advantage of the opportunities andchallenges presented by the SDGs, we laid out the effects that our business activities have on theenvironment and society. This process considered the entire value chain and issues specific to thecountries where we do business. It even included any negative impacts of our business activities.
The Meiden Group will continue to pursue manufacturing that contributes to society, achieve sustainablevalue creation and contribute to the solution of social issues, including those posed by the SDGs.
* Sustainable Development Goals (SDGs): Seventeen goals incorporated into the 2030 Agenda for
Sustainable Development adopted by world leaders at the United Nations Sustainable Development
Summit in September 2015. Based on these new goals—universally applied to all nations–each nation

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will end all forms of poverty, combat inequality, and take steps to address climate change while
ensuring that no one is left behind over the next 15 years.
The Meiden Group’s Approach to SDGs
As a heavy electric equipment manufacturer supporting the future of social infrastructure, the evolutionof industry, and achieving sustainable growth and development, the Meiden Group contributes to theSeventeen goals of the SDGs through all business activities. Furthermore, in order to continue
contributing to the SDGs in the future, it is necessary to seriously address the expectations of society andaccurately grasp key social issues as important issues for the Company. To do this, we have establishedareas that contribute to solving social issues through business strategies.
The Meiden Group will continue to actively challenge itself to create new technologies and new value, inorder to contribute to the realization of a vibrant and comfortable future society.

Education for Application of SDGs in Business Strategy and Activities
At selective training that commenced in FY2019 for the purpose of developing young employees into thenext generation of managers, we consider social issues such as SDGs, establish programs to createbusiness strategies, and approach contribution to the solution of social issues and share ideas toincorporate SDGs in management and individual duties, through business strategies that are not swayedby past business.

External Support Initiatives
InitiativeCDP

OutlineAn initiative begun by a coalition of major institutional investors around theDate of agreement/participation
March 2017

world. It calls on the world’s enterprises to disclose their climate change
strategies (risks and opportunities) and their GHG emissions, among otherinformation.
Task Force on Climate-related Financial

An initiative established by the Financial Stability Board to encourageDisclosures (TCFD)

disclosure of information about climate-related risks and opportunities.

10June 2019

Meiden Group Sustainability 2023

Initiative
Japan Climate Initiative (JCI)

OutlineA network of diverse non-state actors such as corporations, municipal

Date of agreement/participation
December 2020

governments, groups, and NGOs, that actively work to combat climatechange.
United Nations Global Compact (UNGC)

A global framework that sets 10 principles implementation relating toSeptember 2022

protecting human rights, eliminating inappropriate labor, attending to theenvironment, and preventing corruption, in order to achieve sustainablegrowth.
GX League

A forum for companies that aim to achieve sustainable growth in the present

May 2023 (became aand future society by taking on the challenge of GX (Green Transformation)

participating company)to achieve carbon neutrality and social transformation by 2050. Here, they
can collaborate with other companies making similar efforts and withgovernment and academia.

Participation in Japan Climate Initiative (JCI)
Meidensha has participated in the Japan Climate Initiative (JCI) since 2020.
We endorse JCI’s declared goal of “Joining the front line of the global push for decarbonization fromJapan.” We support JCI’s effort to step up energy efficiency and renewable energy use and to bolster
efforts to contribute to the achievement of net zero emissions by 2050.
As of 2022, we endorsed the following messages as a participating company:“Now Is the Time to Accelerate the Implementation of Renewable Energy: A Call to Strengthen Climate
Change Solutions Even During an Energy Crisis.”“Overcoming Two Crises with Renewable Energy and Carbon Pricing”
Meidensha is implementing climate change solutions by participating in the initiative.
Participation in GX League
Meidensha endorses and participates in GX League.
The Meiden Group has set carbon neutrality and well-being as the values we provide, and we declare thatsustainability partnerships are our aspiration and vision for achieving the society we aim for. Our goal isto contribute to the decarbonization of society through our products, businesses, and solutions. We also
aim to achieve carbon neutrality in our business activities by 2050. As an intermediate step, we have set
the following GHG emissions reduction targets that we are working to achieve by FY2030: 30% reductionof emissions from business activities (Scope 1 and 2; compared with FY2019) and 15% reduction ofemissions during product use (Scope 3 Category 11; compared with FY2019). Convinced that the visionand direction of the Meiden Group are in line with the purposes of GX League, we became a formal
participant in May 2023.

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Group Membership Credentials
・KEIDANREN (Japan Business Federation)

・

The Japan Electrical Manufacturers' Association (JEMA)・The Institute of Electrical Engineers of Japan (IEEJ)・Electric Technology Research Association

・The Japan Electric Association

・The Japan Society of Mechanical Engineers

Active Participation in Industry Groups
The Meiden Group actively participates in the following industry groups and has declared our intention todecarbonize. The Meiden Group sees no disagreement or contradiction between its policies anddirections on environmental issues and the policies and directions of these industry groups, and we arecommitted to furthering the initiatives of each.
・

Ministry of the Environment Network for Promotion of Decarbonization Management

・

JEMA Environmental Business Policy Committee

・

JEMA Environmental Business Policy Steering Committee

・

JEMA Environmental Technology Expert Committee

・

Coalition of four electrical and electronic equipment groups, Environmental Strategy LiaisonCommittee

・

Coalition of four electrical and electronic equipment groups, Product Chemical Substances ExpertCommittee

・Coalition of four electrical and electronic equipment groups, Expert Committee on Measures for
Chemical Substances Related to Business Establishments

・Coalition of four electrical and electronic equipment groups, Expert Committee on Waste andRecycling Measures Related to Business Establishments

・Coalition of four electrical and electronic equipment groups, Liaison Committee on Global WarmingCountermeasures for Electrical and Electronic Equipment

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