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

FY2023 Materiality and Targets

Materiality
Themes&Elements

No.
1Targets
Reduce greenhouse gas emissions

2Harmony withthe global
environment

Reducing
environmental
impact3

4

5
6

Reduce water consumption
Recycle waste

Consolidated

Reduce VOC (Volatile Organic Compounds) by 10% or more versus FY2015

Tokai Carbon Japan(TCJ)

Based on data up to December, expect to achieve target for this fiscal year (Apr. 2023 to Mar.
2024). (Target being achieved at approximately 71% against 2015).

〇

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

Consolidated

One case of environmental claim. In January 2024, a plant based in the USA was given an
improvement order for exhaust gas released into the atmosphere. Appropriate measures weretaken and the problem has been resolved.

△Change 30% of product shipping packages to eco-friendly ones by end of 2024

Tokai COBEX(TCX)

Survey conducted on environmental friendliness of packages used for shipping products currently
being used by TCX. Only 8% of total acknowledged to be environmentally friendly; however, 29%of the packages have improvement in sight. Switch to be made from second half of FY2024, after
receiving customer approval.

△Reduce water consumption (make it lower than the consumption for 2021)

Consolidated

Achieved reduction of 6.2% versus FY2021〇

Achieved recycle rate of 89%〇

Achieved final disposal rate of 11%〇

ISCC PLUS authentication received for both Chita and Wakamatsu plants. Audit conducted forIshinomaki Plant in Dec. 2023 and expect to receive authentication in Feb. 2024.

〇

Devoted 92% of development expenditure to reducing environmental burden〇

Tokai Konetsu Kogyo
Devoted 95% of development expenditure to reducing environmental burden(TKK)
Domestic group
Ratio of patent applications related to reducing environmental burden: 100%〇Recycle 80% or more of waste

9

Devote 90% or more of development expenditures to reducing environmental burden

TechnologicalInnovation

10

Devote 70% or more of development expenditures to reducing environmental burden

Supply chainmanagement

Strengthening
CorporateGovernanceEmphasize research and developmentStrengthening
ourmanagement
base

Make 70% or more of patent applications in areas related to reducing environmental burden

TKK

Establish technology to reduce rate of consumption of electrodes (YoY reduction of 3% for 2023)

Consolidated

14

Further elevate quality
Reduce CSR risks at suppliers

Conduct CSR survey of key suppliers on a consolidated basis

Consolidated

Raise employee awareness of humanrights

Expand use of Harassment Manual to domestic subsidiaries

Domestic group

Expand human rights due diligence to overseas subsidiaries

Consolidated

17

Actively engage in communitycontribution activities

Enhance disclosure of community contribution activities

18

Establish a consolidated governancesystemEstablish a base towards the establishment of the Global compliance system

20〇

Ratio of patent applications related to reducing environmental burden: 83%〇

Of the users which have received quality-improved products, 75% have achieved a reduction of
3% or more compared with 2022.

〇

Report on the survey conducted in 2023 on five key suppliers of overseas bases has been issued
after analyzing the survey results
Explanatory meeting on the Harassment Manual conducted for Human Rights Promotion
Committee members of domestic subsidiaries. The Harassment Manual has been made public toemployees and management level people of domestic subsidiaries through human rights training
courses.
To be continued in FY2024.

〇〇
×Consolidated

Total amount of donations and activity charges: Approximately 53 million yen (donations forshrines and festivals, donations, etc., for regional cultural, sports, and educational assistance).
Contents of regional contribution activities: Cleaning, food donation, etc.

〇Consolidated

Plans made to promote internal control, upgrading of North America controlling company,
subsidiary management, and the establishment of overseas risk management system, andimplemented as planned.

〇

No regulatory violations that have critical impact committed〇

Survey conducted to study governance and compliance structure for domestic and overseas
subsidiaries. Established relations with persons in charge of compliance at domestic and overseas
subsidiaries.

〇

Commit no serious regulatory violations
Maintain ethical standards, regulatorycompliance〇

Consolidated
Establish a base with a view to formulating a global compliance structure
TCJ

Increased by 1.33 times the target set in 2021 (as of end/Dec. 2023).

〇

TCJ

Of new recruits joining the Company (non-consolidated) in April 2024, 33% were female〇

23

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 non-consolidated
basis
Increase number of non-Japanese employees in managerial positions (by the end of 2024)

TCJ

Recruiting activities conducted, including those for managerial positions. Progressing as planned〇

24

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

TCJ

Increased 8.1% as of end of Dec. 2023 versus end of Dec. 2021
In 2023, total time spent on specialist training: 727 hours; total time spent on new-hire training:
5,580 hours〇

Achieved accident frequency rate of 0.80〇

22Promoting Occupational
Safety and Health

Domestic group

1221
Human resource
development

Chita Plant, Ishinomaki Plant,
Kyushu-Wakamatu Plant

Make 90% or more of patent applications in areas related to reducing environmental burden

19Ensuring
complianceObtain ISCC PLUS authentication in three domestic CB plants by 2024.

Domestic group

11

Respect for human 15
rights16
Contribution tocommunity

Final disposal rate of 25% or lower
Utilization of sustainable resources

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

78FY2023 Results
CO2 emissions recorded in 2023 for the entire company: 2,204 thousand tCO2 (reduction of27.9% versus 2018).
Mainly achieved by switching to electric power from renewable energy, fuel conversion, etc.

Realizing arecycling-orientedsociety

Supplying safe and13secured products
Contributing tosociety throughour business

Reduce pollution

Scope*

Secure diverse human resources

25

Effectively implement training

Total training hours planned by head office (New-hire training / specialist training)

Domestic group26

Reduce occupational accidents

Reduce frequency rate of occupational accidents (1.20 or lower)

Consolidated*1 Domestic group: TCJ + major domestic subsidiaries (Tokai Konetsu Kogyo, Tokai Fine Carbon, Tokai Materia), but excluding Tokai Konetsu Kogyo for No. 9 and 11.
*2 TCJ + domestic and overseas companies (Tokai ErftCarbon GmbH, Tokai Carbon GE LLC, Tokai Carbon CB Ltd., Cancarb Limited, Thai Tokai Carbon Product Co.,Ltd., Tokai Fine Carbon, Tokai Carbon Korea, Tokai COBEX Polska sp. z o.o., Tokai COBEX Savoie SAS ）〇