We believe that achieving the five items set forth in the Corporate Principles is corporate social responsibility (CSR), an essential condition to the Company's continuous growth. Based on this belief, we have established our Charter of Corporate Conduct as a guideline for the actions taken by the Company and its executives and employees to achieve the Corporate Principles. We conduct our business activities while striving for co-existence and co-prosperity with society.

We revise the Company’s Management Plan under the management situation and the social needs at the target point. The current Medium-term Management Plan 2019–2021 sets forth “promoting measures to achieve the SDGs,” and we enforce this within the Company. Therefore, we revised the Charter of Corporate Conduct to include responding to the SGDs, bringing it into conformity with the Corporate Governance Code. We are also striving to instill our corporate culture. We distributed a credo card including the Corporate Principles, Vision 2030, and Charter of Corporate Conduct to all executives and employees. They carry this card with them at all times.

All executives and employees should understand the significance of SDGs and act on a belief that SDG issues will certainly affect them. We believe this will lead to constructing a sustainable society and increasing the Group’s corporate value. In fiscal 2020, seeking to achieve our Vision 2030, we specified materiality (material issues) while considering the characteristics of our business and the areas in which we operate. In conducting these operations, we referred to all international guidelines regarding the causes of various impacts on the Group’s business operations. We also established our Key Performance Indicators (KPIs). In fiscal 2021, in addition to responding to climate change risks, we will continue to identify human rights risks in the entire value chain, which is a material issue along with the environment. We will also promote initiatives to respect human rights, including establishing a system to prevent human rights violations.

The Guiding Principles on Business and Human Rights developed by the United Nation require business enterprises to formulate a human rights policy, perform due diligence, and set up a helpdesk in order to fulfill their responsibility to respect human rights. In response, in fiscal 2021, the Company has set up a working group consisting of members from key departments that are particularly closely related to human rights, including personnel, general affairs, purchasing and global, and embarked on these initiatives, with the help of external experts. As such, we will continue to identify human rights risks in the entire value chain and promote initiatives to respect human rights, including establishing a system to prevent human rights violations. At the same time, we will work to deepen the understanding of human rights among all officers and employees by providing human rights education programs tailored to different job categories or ranks, such as officers, managers, and persons in charge.

We are conducting environmental activities based on our Environmental Policy “Green Challenge 2030” to achieve a sustainable society. Calls for companies to release non-financial information, particularly responses to climate change, continue to grow. Strategic efforts related to climate change and resources have become unavoidable for companies. In fiscal 2020, we replied to the survey on disclosure programs for information related to climate change risks that CDP, an international NGO, is conducting. Also, we uncovered issues based on the evaluation of our replies and specified a degree of priority. In addition to applying them to our materiality, we will also reflect them in our environmental policies from the next fiscal year onward.