Centralized Management of Initiatives by the Group Sustainability Committee

「In addition, with respect to executive compensation, we have adopted a stock-based compensation plan for directors, including the Representative Director and President, excluding non-executive directors, outside directors and directors who are Audit and Supervisory Committee members, as well as executive officers. The plan reflects not only the degree of achievement of the performance targets in the medium-term management plan, but also evaluations by ESG rating agencies and the status of initiatives relating to non-financial items such as the medium-term management plan, from the perspectives of establishing sustainability management and enhancing governance.」

「In addition, from fiscal 2022, we have invited external experts in sustainability to serve as external members of the Group Sustainability Committee and incorporate outside professional expertise into our sustainability initiatives by receiving advice and recommendations on matters under deliberation.」

「Our president serves as chair of the committee, which regularly deliberates and reports on our group's sustainability initiatives and centrally manages their progress. The Board of Directors also oversees the matters deliberated and reported by the Group Sustainability Committee.」