FY2022

Rating〇: More than 100% target met△: 80%-99% of target met
×: Less than 79% of target met

Targets

Materiality
ThemesElements

No.

Goals

1 Reduce greenhouse gas emissions
Harmonywith the Reducing environmental impact 2
globalenvironme
3nt
4Realizing a recycling-oriented society

56

Reduce pollution

Scope*2

Reduce CO2 emissions by 25% (VS 2018) before 2030 and achieve carbon-neutral in
2050

Consolidated

Dispose of all low-concentration PCB waste by March 31, 2025

Domestic
group*3

Maintain zero environmental claims against the Company (contamination of air, water,etc.)

Consolidated

Reduce water consumption

Reduce water consumption (1% or more of reduction from FY2018)

TCJ

Recycle waste

Recycle 80% or more of waste
Final disposal rate of 25% or lower

Domestic group7

Devote 80% or more of development expenditures to reducing environmental burden

8

Devote 60% or more of development expenditures to reducing environmental burden
Emphasize research and development Make 80% or more of patent applications in areas related to reducing environmental
Technological Innovation
9burdenMake 70% or more of patent applications in areas related to reducing environmental
10burdenSupplying safe and secured products

Contributing to society Supply chain
through our managementbusiness

11

Further elevate quality

Reduce electrode consumption rate*1 (3% reduction from 2021)

12Raise supplier awareness ofCSR

Disseminate procurement policy to new suppliers on a consolidated basis
Conduct CSR survey

13 Reduce CSR risks at suppliers

Domesticgroup
TKK
Domesticgroup
TKK
Consolidated

FY2022 Results

Rating

CO2 emissions recorded in 2022 for the entire company: 2,408 thousand tCO2 (reduction of21% versus 2018).
Mainly achieved by switching to electric power from renewable energy, fuel conversion, etc.

〇

Approximately 62% of low-concentration PCB waste has been disposed, and disposal isprogressing as scheduled〇

No environmental claims〇

Achieved reduction of 4% versus FY2018〇

Achieved recycle rate of 87%
Achieved final disposal rate of 18%〇〇

Devoted 91% of development expenditure to reducing environmental burden〇

Devoted 85.1% of development expenditure to reducing environmental burden〇

Ratio of patent applications related to reducing environmental burden: 100%〇

Ratio of patent applications related to reducing environmental burden: 100%〇More than 3% improvement (reduction) achieved in subject users, with users achieving
reduction exceeding their plans. Target has been achieved in comprehensive evaluation〇

From April 2022, began disseminating our procurement policy and carrying out the CSR
procurement survey when starting regular business with new raw material suppliers〇

Report on the survey conducted in 2022 on five key suppliers of overseas bases has been
issued after analyzing the survey results〇

Consolidated

Conduct CSR survey of key suppliers on a consolidated basis

Harassment Manual has been revised. Conducted harassment training course for domestic

14
Respect for human rights
15

Revise Harassment Manual and conduct harassment training at domestic subsidiaries Domestic group subsidiaries. (Attendance rate: 100%; correct response rate in degree of comprehension test
Raise employee awareness ofhuman rights

16

Domestic group Human rights due diligence for FY2022 conducted〇

Improve understanding of global human rights policy

Consolidated〇

Enhance disclosure of community contribution activities

Consolidated
Consolidated

Conduct annual human rights due diligenceContribution to community 17

Actively engage in community contribution activities

18

Establish a consolidated governance system-Maintain ethical standards, regulatory compliance

Commit no serious regulatory violations
Formulate a global code of conduct (tentative name) and inform subsidiaries aroundthe world about it

Consolidated

Double the number of female employees in managerial positions (by the end of 2024)
Percentage of new female graduates hired for career-track positions: 30% on a nonconsolidated basis

Strengthening Corporate Governance

19
Ensuring compliance

20

21
Strengthening our22
manageme
nt base Human resource development
23

Secure diverse humanresources24
25
Promoting Occupational Safety and Health

Effectively implement training

26 Reduce occupational accidents〇

result: Approx. 90%)

Conducted training on global human rights policy and human rights due diligence
Total amount of donations and activity contributions: Approx. 48.4 million yen (Ukraine support
donation, donations to support community culture and sports, etc.)
Community contribution activity details: Cleaning, tree planting, food donations, etc.)
Promotion of internal control, upgrading of North American management company functions,subsidiary company management, etc., have been conducted as planned
No regulatory violations that have critical impact committed〇

New “Action Guidelines” and “Global Code of Conduct” have been formulated anddisseminated inside the Group〇

TCJ

Increased 66% as of end Dec. 2022 versus end of Dec. 2021〇

TCJ

Of new recruits joining the Company (non-consolidated) in April 2023, 40% were female〇

Increase number of non-Japanese employees in managerial positions (by the end of2024)

TCJRecruiting activities conducted, including those for managerial positions. Progressing asplanned〇

Raise the ratio of mid-career hires in managerial positions (by the end of 2024)

TCJ

Increased 3.2% as of end of Dec. 2022 versus end of Dec. 2021〇

Total training hours planned by head office (New-hire training / specialist training)
Reduce frequency rate of occupational accidents (1.8 or lower)

In 2022, total time spent on specialist training: 1,747 hours; total time spent on new-hire
Domestic grouptraining: 1,674 hours〇

Consolidated〇

Achieved accident frequency rate of 1.20

*1 The rate at which a graphite electrode is used up in the steelmaking process.
*2 TCJ: Tokai Carbon Japan, TKK: Tokai Konetsu Kogyo*3 Domestic group: TCJ + major domestic subsidiaries (Tokai Konetsu Kogyo, Tokai Fine Carbon, Tokai Material), but excluding TKK for No. 7 and 9