Sustainability

Established the company motto

Established the Compliance Committee

The Company established a Compliance Committee under the Board of Directors and seeks to strengthen its framework centered on the Compliance Committee Secretariat.

Transitioned to a company with an Audit and Supervisory Committee Introduced Outside Directors

As resolved at the 36th Ordinary General Meeting of Shareholders held on June 25, 2015, the Company transitioned from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee. This transition aims to enhance the effectiveness of auditing and supervision by having Audit and Supervisory Committee Members with voting rights at Board of Directors meetings handle audits. Additionally, the Company liaises with internal control departments and its accounting audit firm to ensure more effective audit operations.

Introduced female Directors

The composition of the Board of Directors prioritizes striking a balance between knowledge, experience, and capability regardless of gender, career history, or age, and seeks to advance initiatives aimed at achieving gender equality.

Raised the ratio of Outside Directors in the Board of Directors to at least one-third

In order to strengthen corporate governance, the Company increased the number of Outside Directors and ensured that Outside Directors constitute at least one-third of the Board of Directors as a whole.
By appointing Outside Directors with a focus on independence and expertise, the Company aims to ensure management transparency and objectivity, thereby improving corporate value in a sustainable manner.

Established the Sustainability Promotion Committee

To strengthen its sustainability promotion framework, the Company established a Sustainability Promotion Committee, an organization chaired by the President, to whom it directly reports. This committee advances activities in collaboration with the ESG Promotion Office, various departments, and Group companies. It seeks to implement measures involving addressing environmental issues, contributing to local communities, and promoting diversity.

Established the Nominating Committee and the Remuneration Committee, with a majority of independent Outside Directors

The Company established a Nominating Committee and a Remuneration Committee, primarily composed of Outside Directors, to reinforce a structure ensuring the fairness, transparency, and objectivity of procedures related to director. These committees submit recommendations to the Board of Directors based on deliberations following Board consultations, deliberate and decide on matters delegated by the Board of Directors, and report on the execution of their duties to the Board of Directors, thereby contributing to the enhancement of corporate governance.

Introduced restricted share-based remuneration system

The Company introduced a restricted share-based remuneration system to enable Directors (excluding Audit and Supervisory Committee Members and Outside Directors) to share the benefits and risks of stock price fluctuations with shareholders, thereby strengthening the incentives for improving corporate value.

Formulated a Basic Policy on Company President Succession Plan

In order to ensure continuity in top management and clarify the development of candidates and selection process in anticipation of changes to the President, the Company formulates a policy following deliberations by the Nominating Committee primarily composed of Outside Directors and a formal resolution at a Board of Directors meeting.