Comprehensive Sustainability Commitment

Comprehensive Sustainability Commitment

1) Our Approach to Sustainability

The Group is committed to becoming a trusted corporate group for all stakeholders--including customers, shareholders, business partners, local communities, and employees--by striving to balance business growth with contributions toward the realization of a sustainable environment and society, thereby enhancing corporate value. To this end, we believe that sustainable management is essential not only for continuous expansion and development, but also for enhancing long-term corporate value.
To achieve this, we are actively strengthening our governance framework and undertaking initiatives to practice sustainability-conscious management, such as identifying material issues and setting indicators and targets aligned with those issues. Among these efforts, we recognize our responsibility to minimize environmental impacts across the entire semiconductor supply chain and to contribute to the realization of a sustainable society. To fulfill this responsibility, we have established a Corporate Social Responsibility (CSR) Policy and promote business activities aligned with the Responsible Business Alliance (RBA) Code of Conduct.

2) Sustainability Governance Structure

To promote sustainability across the Group, we have established the Sustainability Committee, chaired by the President and Representative Director and composed of executive officers responsible for business execution at Group companies and members of the management audit department. The Committee meets quarterly. The Committee shares information on issues and measures related to sustainability as a whole, including climate change, and discusses future initiatives and measures. Significant matters are reported to the Board of Directors, which oversees sustainability efforts, makes comprehensive decisions, and incorporates them into management strategy formulation, implementation, and progress monitoring.

3) Risk Management

To assess the significance of risks related to sustainability--including climate change--the Group has established the Crisis Management Committee, chaired by the President and Representative Director. The committee meets quarterly and is also convened on an ad hoc basis in response to critical incidents affecting business operations, enabling swift and effective action. With respect to risks and opportunities related to sustainability, including climate change, the committee periodically reviews them in light of their impact on the Group's business and on society. Matters deemed material are reported to the Board of Directors.

4) Strategy

To achieve sustainable growth and contribute to the environment and society, the Group has identified material issues in the areas of environment, society, and governance as follows, and is advancing initiatives to address these issues.

In identifying materiality, the Group comprehensively considered the content of international ESG disclosure guidelines such as the SASB Standards, evaluation criteria used by ESG rating agencies, and social issues surrounding the Group, and extracted and organized sustainability-related management issues. The identified sustainability-related management issues were then evaluated using a materiality matrix from two perspectives: their financial impact on the Group and their impact on stakeholders. Issues assessed as having higher significance were identified as the Group's material issues.

5) Indicators and Targets

Alongside the identification of materiality in the areas of Environment, Social, and　Governance, our Group sets specific indicators and targets for each material issue. We regularly monitor progress toward these annual targets and report the results to the Sustainability Committee.