Through our business operations, the Group promotes sustainability activities based on the belief that contributing to the resolution of various social issues—such as global environmental and human rights issues brought about by climate change—will lead to enhanced corporate value. The Group enhances its corporate value by developing and supplying environmentally friendly products in line with the demands of society and our customers based on our corporate mission of “maximizing energy conversion efficiency for the benefit of humanity and society.” Pursuant to our Basic Sustainability Policy, we believe that facing and addressing the ESG issues we encounter will allow us to realize our Management Philosophy of “together with society, our customers, and our employees,” and that we are a valuable company recognized by all of our stakeholders. We have organized and identified our ESG issues under four ESG Material Issues: “providing value through environmentally friendly products,” “harmony between the environment and our business activities,” “creating diverse and fulfilling workplaces,” and “strengthening fair and highly transparent business foundations.” We are also actively promoting the initiatives for the SDGs and have established SDGs medium-term targets related to ESG materiality, and are now bolstering our efforts by disclosing our progress and assessments of these targets. The Shindengen Group's basic stance on sustainability involves contributing to the resolution of environmental and social issues such as the SDGs and working to enhance corporate value from a long-term perspective by implementing the four ESG materialities in coordination with the Medium Term Business Plan. In April 2023, we reorganized the CSR Committee into the Sustainability Committee. The Group has established related committees such as the Environment Committee and the Human Rights Committee under the direct control of the Sustainability Committee chaired by the President. Through these committees, we integrally manage progress on sustainability issues—specifically our progress in meeting the SDGs medium-term targets and addressing the policies and issues of these related committees. Based on these concepts and initiatives, we will communicate our Basic Sustainability Policy throughout the Group and expedite our efforts to effectively resolve global social issues in order to continue meeting our stakeholders’ expectations. We look forward to your continued support and cooperation .

*Please refer to the “Initiatives for the SDGs” section for information on how we contribute to the SDGs.