Corporate Sustainability Promotion Structure

Our sustainability management framework is integrated with our company-wide risk management system. We identify, manage, and address sustainability-related issues in the risk management process as factors that either promote or hinder the sustainable and stable development of our corporate activities.
As part of our risk management process, the Corporate Sustainability Committee, which is composed of directors, meets once a year to review and discuss whether to update the list of Group strategic risks that require a company-wide response, taking into account changes in the external and internal environment including sustainability issues.
The corporate sustainability promotion officer designates risk owners for each Group strategic risk identified, as appropriate. Risk owners are responsible for formulating and implementing risk mitigation measures under the direction and supervision of the Board of Directors and the Management Committee. The progress and effectiveness of these measures are monitored by the Group Internal Control Committee and reported to the Board of Directors.

Corporate Sustainability Committee

The Committee serves as the management promotion and oversight body for key issues related to medium- to long-term management and strategic risks, including sustainability issues such as climate change, human rights, human capital, and ESG disclosure. In principle, the Committee meets once a year to review and discuss whether to update the list of Group strategic risks (*) that require a company-wide response and the materiality criteria, taking into account changes in the external and internal environment.
 (*) Group Strategic Risks
Group strategic risks refer to risks and opportunities that should be reflected in the Group’s management plans, identified from a Group management perspective based on an assessment of environments. These Group strategic risks serve as the basis for annual plans and medium-term management plans and are utilized to allocate management resources in an agile manner, mitigate risks, and capture opportunities. General and permanent issues that are not included in Group strategic risks are managed and addressed individually by risk owners, and the effectiveness of such measures is evaluated by the Group Internal Control Committee.

Group Internal Control Committee

To promote sustainability, the Committee evaluates sustainability-related risks reported by each risk owner, along with the effectiveness of countermeasures and risk reduction, on a twice-annual basis, and reports the results to the Board of Directors.

Corporate Sustainability Promotion Officer

The Corporate Sustainability Promotion Officer prepares proposals for updating the list of strategic risks to be addressed on a company-wide basis, based on changes in the external and internal environment including sustainability issues, and submits them to the Corporate Sustainability Committee. The list of Group strategic risks discussed by the Corporate Sustainability Committee is then submitted to the Management Committee and the Board of Directors. Risk owners are assigned to the risks that were newly identified at the time of the preparation of proposed updates to the list of Group strategic risks. (Risk owners are even assigned to those not classified as Group strategic risks).

Risk Owners for Identified Issues

Risk owners formulate mitigation plans for individual risks and implement these measures while receiving guidance from the Management Committee as appropriate. The progress of these measures is reported to the Group Internal Control Committee in accordance with company-wide risk management procedures.

Responsibility Structure by ESG Issue Area

The Group determine the organization in charge of each ESG area to increase effectiveness of ESG initiatives.