Promotion of Sustainability Management

Sustainability Promotion Framework

Our Group has established a framework, under the supervision of the Board of Directors and led by the Sustainability Promotion Committee, to promote sustainability initiatives in a diversified manner throughout the Group over the medium to long term. In October 2024, we established a new Sustainability Committee, comprised of members of the Management Meeting of the Group's core operating subsidiary and chaired by a representative director. Using these means we are further enhancing our framework for the promotion of sustainability management under the leadership of the highest levels of company management.

As part of this framework, the company president has been designated as the chief commanding officer for managing the entire Group's sustainability promotion, while the corporate governance framework, led by the Board of Directors, supervises and manages the suitability of sustainability management at the Group. We additionally promote sustainability management initiatives throughout the Group, with our core operating subsidiary having established the Sustainability Promotion Committee to serve as meeting bodies responsible for discussing, formulating, and furthering sustainability issues.

The Sustainability Committee deliberates on important matters discussed at the meetings of the Sustainability Promotion Committee and provides feedback to the Sustainability Promotion Committee on guidelines for implementing effective sustainability management. The Sustainability Promotion Committee utilizes this feedback as the basis for deliberations on response measures and management resources, which are then subject to resolutions at the Board of Directors of the Company as well as its core operating subsidiary, before deployment throughout the Group.

Furthermore, when the Group's sustainability information is disclosed externally, this information is reviewed by the Sustainability Promotion Committee, which is followed by a final review and approval by the Board of Directors, to thereby ensure the transparency and reliability of the information to be disclosed.

Sustainability Promotion Framework

See details of GS Yuasa’s corporate governance structure

Sustainability Promotion Process

Our Group aims to enhance corporate value and stakeholder satisfaction by implementing a Sustainability promotion process that is based on our corporate philosophy which reflects the Group’s enduring corporate values.

In order to implement our corporate philosophy, the Group has formulated the Sustainability Management Policy, which determines the future direction for achieving a sustainable society and enhancing corporate value. This policy emphasizes dialogue with stakeholders and makes a commitment to contributing to solutions to sustainability issues and maintaining strong business foundations.

We have also established the CSR Policy, which comprises action guidelines for attaining the Sustainability Management Policy, and we are committed to promoting initiatives to address sustainability issues related to the CSR Policy. Regarding the major areas of CSR policy, we have compiled the CSR Code of Conduct, which clarifies the specific direction of CSR activities, and individual policies clarifying concrete behavioral standards in CSR activities.

To achieve our Sustainability Management Policy, we have implemented medium- to long-term business strategy processes (such as our Mid-Term Management Plan to achieve our Long-Term Vision that takes into consideration sustainability issues). In addition, to achieve this policy, we are committed to promoting initiatives to manage sustainability issues related to action guidelines formulated for employees (hereinafter referred to as the CSR Policy). We have formulated both these plans to ensure the economic growth and sustainability of society and the Group by taking into account the needs and expectations of stakeholders and social, environmental, and economic issues. Further, through suitable analysis and assessment of the status of responses to crucial risks and opportunities related to sustainability issues and conducting necessary reviews, we strive to ensure continuous improvement of our sustainability initiatives. Moreover, to implement our CSR Policy we have formulated a CSR Code of Conduct that defines specific behavioral standards of responsible corporate conduct and ensure that these are disseminated to all company employees.

Overview of Sustainability Promotion Process

Promoting Company-Wide Sustainability Initiatives

To promote company-wide sustainability initiatives, the Group distributes the document, the Vision Book, that clarifies our corporate philosophy to all our employees. Through the distribution of our Vision Book, which provides a clear overview of our corporate philosophy, sustainability management policies, Long-Term Vision, and action guidelines, the direction, future vision, and values of the Group’s sustainability management are shared with all our employees.

Our CSR Manual, detailing the Group’s policy on responsible corporate conduct (CSR Policy) which serves as action guidelines for sustainability management, is also distributed to all our employees. Behavioral standards underpinning the CSR Policy are clarified for employees in Q&A sections and columns covering key topics, along with a checklist for employee self-assessment of behavioral conformity with the CSR Policy. Our CSR manual, translated into local languages (six languages) that local employees can understand, has been distributed to overseas Group companies. The Group is committed to ensuring that all domestic and overseas employees are cognizant of sustainability issues related to our CSR Policy and is making efforts for the promotion of sustainability initiatives through business activities.

Management of key sustainability issues

2. Specify significant risks and opportunities relating to the CSR Policy (Step 2)

We evaluate and assign a score to the risks and opportunities identified in Step 1 and specify risks and opportunities that could have a substantial impact on business. Next, we evaluate the impact of our Group’s business activities on society relative to these risks and opportunities that could have a substantial impact on business and then identify significant risks and opportunities relating to the CSR Policy.

Domains for identifying significant risks and opportunities relating to the CSR Policy (key CSR domains)

Materiality and Response Plan

A summary of the Group's materiality response plans and the impact of these plans on society and business are presented in the following table.

With respect to materiality shown in the table, we are conducting operations and management based on the measurable target management and management criteria, make ongoing improvements and perform effective maintenance and management. The details of the plans are periodically reviewed and revised according to changes in sustainability issues and the needs and expectations of stakeholders.

When carrying out the Mid-Term Management Plan, the first year of which is fiscal 2023, we formulated new materiality response plans to address significant sustainability issues. After summarizing the fiscal 2022 materiality response plans and reviewing the materiality, we established materiality response plans for fiscal 2023 and later. In these plans, we not only establish indicators and targets to manage the impact of significant sustainability issues on society, but also assess the impact on business using financial indicators.