Performance-Linked Executive Compensation Incorporating ESG Metrics

「The five performance metrics are business profit, considered an appropriate metric for the results of a company's business activities; ROE (return on equity), considered an appropriate metric for capital efficiency; relative TSR, considered an appropriate metric for promoting value sharing with shareholders; the GHG emissions reduction rate (Scope 1 + 2), a metric for evaluating strengthened climate change and environmental protection initiatives under the Mitsubishi Logistics Group's sustainability management; and the percentage of women in management, a metric for evaluating the promotion of human capital management for growth.」

「The performance metrics for bonuses will be changed to support the steady execution of the Management Plan [2025-2030], promote sustainability management and advance value sharing with shareholders. The metrics will change from operating profit, ROE, CO2 emissions reduction rate and percentage of women in management to business profit, ROE, relative TSR, GHG emissions reduction rate (Scope 1 + 2) and percentage of women in management.」

「The four performance metrics, changed at the Board of Directors meeting held on 22 February 2024, are operating profit, considered an appropriate metric for the results of a company's operating activities; ROE (return on equity), considered an appropriate metric for capital efficiency; the CO₂ emissions reduction rate, an environmental metric for evaluating initiatives toward ESG management and the SDGs by the Mitsubishi Logistics Group; and the percentage of women in management, a metric for evaluating compliance, human rights and gender. Compensation is calculated based on the previous fiscal year's performance metrics in accordance with a calculation table established in advance.」