Promotion Structure

Sustainability Committee

Purpose

Our company established the Sustainability Committee on October 21, 2022, to act as advisors to the Board of Directors with the aim of establishing, instilling, and maintaining a sustainability promotion structure in order to improve our corporate values and create a sustainable society.

Function

The Sustainability Committee is responsible for matters related to the establishment of policies and regulations regarding sustainability, the defining of important challenges (material issues), goal setting and progress management, and information disclosure. The committee also reports and provides proposals to the Board of Directors as necessary.

Composition

The Sustainability Committee is chaired by the CEO, with the rest of the committee membership being composed of directors, including outside directors. Furthermore, the Sustainability Promotion Subcommittee was established as a subordinate body within the Committee.

Sustainability Promotion Subcommittee

Overview

The Sustainability Promotion Subcommittee (formerly the Sustainability Promotion Task Force, renamed with the establishment of the Sustainability Committee) is managed by the Vice President and made up of members selected from each office.

Summary of Activities: Redefining and Reviewing Material Issues

Material issues were redefined and reviewed as part of the subcommittee’s activities. In consideration of the large changes in societal and environmental issues, the members redefined which items the company should prioritize.

Activity Details: The Process of Redefining and Reviewing Material Issues

The societal and environmental issues that surround the THK Group were evaluated and considered under the two core standards of societal and business challenges, and the redefined material issues were approved and decided upon by the Board of Directors.

Step 1: Create a material issue candidate list (November to December 2021)
The subcommittee created a material issue candidate list for evaluation and consideration based on the metrics from ESG evaluation bodies (FTSE/MSCI), investors (SASB/TCFD), and other societal metrics (SDGs/GRI).

Step 2: Evaluate against societal and business standards (January to February 2022)
The societal demands and expectations were evaluated by subject matter expert E-Square, Inc., and the impact on the business was evaluated by the subcommittee.

Step 3: Create a proposal for redefined material issues (March to May 2022)
Based upon the evaluation results from Step 2, the subcommittee members held a review meeting, and after closely examining the business opportunities and risks related to long-term value creation, they generated a redefined material issues proposal.

Step 4: Approval and decision by Board of Directors (June 2022)
The Board of Directors approved and made a decision on the redefined material issue proposal generated in Step 3.

Redefined Material Issues