System for driving risk management

In July 2023, we set up a Sustainability Committee under our management philosophy to enhance both economic and social value and continue to pursue initiatives related to sustainability, including those related to climate change, in response to rising demands and expectations that companies contribute to realizing a sustainable society. Chaired by Representative Director, the committee enhances and drives overall operations related to sustainability. The committee meets four times a year to discuss issues, including the planning of policies and measures related to sustainability, such as social and environmental problems, the formulation and revision of materiality, their KPIs, steps to take, and targets to set in tackling climate change based on TCFD scenario analysis, and the management of their progress. These deliberations are reported to the Executive Committee and the Board of Directors at least once a year. The Board of Directors oversees the deliberations.

Achievements and Information Disclosure

Once a year, we proactively disclose information, including the number of meetings of the Sustainability Committee and its achievements, as part of our commitment to transparency.

Achievements in FY2023

We held four committee meetings to share trends in international environmental and social issues. The committee also discussed issues that should be focused on in the mid-to-long term for the Nihon Parkerizing Group's sustainability and made recommendations to the relevant departments.

[Specific Topics Discussed]

• Human rights due diligence initiatives
• Future activities based on the employee awareness survey
• Promotion of visualization of GHG emissions and introduction of renewable energy
• Announcement of support for the TCFD
• Progress and further promotion of materiality