ESG Data | Kanematsu Corporation

E: Environmental Data
S: Social Data
G: Governance Data

E: Environmental Data

The environmental data marked with a star (★) for Fiscal Year ended in March 2023 (FY2023) are assured by KPMG AZSA Sustainability Co., Ltd.

Independent Assurance Report

Boundary

Kanematsu Corporation	Headquarter, all offices in Japan and overseas branches and representatives
Consolidated	Subsidiaries ( 96 companies )
Kanematsu Group	Total 97 companies

The following companies without business activities such as holding company are not included due to extremely small CO₂ emissions.
Kanematsu（Hong Kong）Ltd., GPC Co., Ltd., Benoit Holding Company, KG Specialty, Steel Inc. and two other companies

Scope

CO₂ Emissions (Scope1,Scope2), Electricity Consumption, Energy Consumption
Scope1: Fuel consumption x emission factor, Scope2: Electricity consumption etc. x emission factor

Emission factors

Electricity	① Domestic：CO₂ emission factors are based on the adjusted emission factors of individual power companies. ② Overseas：Country-specific emission factors (CO₂ emissions per kWh from electricity generation) published by International Energy Agency are used.
Fuel	CO₂ emission factors are based on a manual for GHG emissions accounting, reporting, and disclosure systems published by Japan's Ministry of the Environment.

CO₂ emissions（Scope1, Scope2）

（Unit：t-CO₂）

		FY2022	FY2023
Kanematsu Group	Scope1	9,772	9,507 ★
	Scope2	19,725	18,814 ★
	total	29,497	28,321 ★

Electricity consumption

（Unit：MWh）

	FY2022	FY2023
Kanematsu Corporation	671	734
Consolidated	40,360	41,822
Kanematsu Group	41,031	42,556

Amount of electricity consumption which was generated from renewable energy: 3,144MWh (FY2023/Kanematsu Group)

Energy consumption

（Unit：GJ）

	FY2022	FY2023
Kanematsu Corporation	2,390	3,591
Consolidated	164,455	161,517
Kanematsu Group	166,845	162,028

Electricity and Energy consumption of Kanematsu Corporation increased due to head office relocation.

Water Withdrawal & Waterwaste Discharge

（Unit：thousand ㎥）

	Classification	FY2021	FY2022	FY2023
Tokyo Head Office	City Water Usage	1	1	1
	Treated water production volume	3	3	5
	Waterwaste Discharge	4	4	6

If it's difficult to obtain the wastewater discharge data, we have calcuated the same as the volune of water withdrawal.

Prevention of pollution and effective use of resources | Targets and action plan

Qualitative targets

Items		Boundary	Targets	Evaluation of actions implemented in FY2023
Reduction of resources, promotion of resource recycling and understanding results	Reduction of general waste from business activities	Tokyo Headquarters	Promote initiatives for the reduction and recycling of office waste	Appropriately implemented
	Reduction of paper usage	Tokyo Headquarters	Promote initiatives to reduce the amount of paper used	Appropriately implemented

Quantitative targets

Items		Boundary	Targets and action plan	Details	FY2023 results in comparison with the base year	Evaluation
Anti-contamination	Serious environmental accidents	Tokyo Headquarters	Annually	No serious incidents	None	Achieved
Resource Conservation & Waste	Amount of waste, etc. generated	Tokyo Headquarters	March 2029	Annual decrease of 1% on average from FY2020 (the date the relocation of the head office was announced) which is the base year	Reduction of 30%	Achieved
Resource Conservation & Waste	Recycling rate	Tokyo Headquarters	March 2029	Annual increase of 1% on average from FY2020 (the date the relocation of the head office was announced) which is the base year	Increase of 34%	Achieved
Conserving Resources	Paper use	Tokyo Headquarters	March 2029	Annual decrease of 1% on average from FY2020 (the date the relocation of the head office was announced) which is the base year	Reduction of 49%	Achieved
Conserving Resources	Electricity Usage	Tokyo Headquarters	March 2029	Annual decrease of 1% on average from FY2020 (the date the relocation of the head office was announced) which is the base year	Reduction of 5.22%	Achieved

Note: The Tokyo Head Office moved from the Seavance Building in Hamamatsucho to the JP Tower in Marunouchi in November 2022.

S: Social Data

Number of Hires by Gender (Non-consolidated)

We carry out new graduate recruitment and career recruitment activities every year in order to secure human resources who can play an active role in the global market.
The results of recruitment at Kanematsu over the last three years are as follows.

			FY2021	FY2022	FY2023
Number of Hires by Gender (Unit: persons)	New graduate recruitment	Men	24	12	23
		Women	25	21	18
		Total	49	33	41
	Career recruitment	Men	2	9	16
		Women	3	0	6
		Total	5	9	22
Ratio of employees hired through career recruitment.			9%	21%	35%

The numbers for mid-career hires include employees who returned by using the system to re-employ those who resigned due to their spouse’s job transfer

Performance Data Related to Diversity (Non-consolidated)

Women Employee Numbers at fiscal year end

	FY2021	FY2022	FY2023
Career-track employees*	64	66	68
Employees at manager level or above	5	7	9
Assistant manager or above	31	31	38
Ratio of women employees among new graduate hires	51.0%	63.6%	43.9%

Employees for whom work location is determined according to the Company's needs and not restricted to any specific area. These employees eventually move into core operations.

Employees Using Leave and Special Holidays for Childcare or Women Care (Non-consolidated)

	FY2021	FY2022	FY2023
Users of childcare leave (Women)	24	31	29
Users of childcare leave (Men)	4	6	10
Users of special childbirth leave for spouse	7	10	2
"Hello Baby" Leave (Launched Oct. 2022) (Women)	-	-	0
"Hello Baby" Leave (Launched Oct. 2022) (Men)	-	-	6
Users of leave to care for sick children (Women)	26	31	36
Users of leave to care for sick children (Men)	18	21	13
Users of family care leave	0	0	0
Users of special family care holidays (Women)	11	12	13
Users of special family care holidays (Men)	7	8	12

Each fiscal year is the period from April to March of the following year

Diversity Hiring Rate (Among New Graduates Hired as Career-Track Employees)

(Year of entry)	2021	2022	2023
Graduates with non-Japanese citizenship	26%	20%	20%
Graduates of overseas universities	16%	33%	33%

Data on occupational health and safety (Non-consolidated)

		FY2021	FY2022	FY2023
Occupational health and safety goals	Number of occupational accidents	-	-	0
Occupational health and safety goals	Number of fatal accidents	-	-	0
Number of occupational accidents	Full-time employees	3	2	3
Number of occupational accidents	Contract employees	0	0	0
Of which, number of commuting accidents	Full-time employees	3	1	1
Of which, number of commuting accidents	Contract employees	0	0	0
The percentage of operating sites certified with ISO45001 (OHSAS18001) Occupational		0%	0%	0%

No fatalities or lost time incidents occurred during the above three years.
Full-time employees: permanent employees; Contract employees: fixed-term employees

Voluntary turnover rate（Non-consolidated）

	FY2021	FY2022	FY2023
Voluntary turnover rate	2.01%	4.19%	4.39%

Metrics and Targets Regarding Human Resource Development and Improving Workplace Environments

(i) Human Capital Development Policy (targets and results / non-consolidated)

Classification	Key theme	KPI	FY2023 Result	FY2027 target
Human Capital Development Policy	Acquisition of Added Value and Expansion of Scale	Executive Management Training participation rate	72.2% of career-track employees with Kanematsu for 11 years or more	100% of career-track employees with Kanematsu for 11 years or more
	Sowing Seeds to Create a New Portfolio	Diverse human resource hiring rate (women and non-Japanese nationals)	27.1%^{(Note 1)}	35% (4-year average)
	Promote Groupwide DX	IT Passport test pass rate	-	100%
		DX-related training participation rate^{(Note 2)}	-	70%
		Personnel exchange with Group ICT/data business companies	-	60 employees (4-year total)

Average for the five years following the “future135medium-term vision”
The rate of employees who take part in either business process management training or DX project promotion training

(ii)Work Environment Policy (targets and results / non-consolidated)

Classification	Key theme	KPI	FY2023 Result	FY2027 target
Work Environment Policy	Leveraging Diverse Individuality through DE&I	Percent of management positions held by women	4.9%	7%
	Leveraging Diverse Individuality through DE&I	Childcare leave usage rate among eligible men	88%	100%
	Enhancing Engagement to Maximize Performance	Engagement score	61%^{(Note 1)}	The global average of companies in the top 10%^{(Note 2)}
	Diversify work styles	Annual vacation usage rate	70.4%	75%
	Diversify work styles	Full flex system usage rate	81.8%	95%
	Health & Productivity Management Focused on Employee Well-Being and Employee-Friendly Labor Practices	Rate of employees undergoing regular medical checkups	97.2%	100%
		Rate of employees undergoing stress checks	98.1%	100%
		Harassment prevention training participation rate	100%	Keep at 100%

Result for the year ended March 31, 2022
Global average calculated across approximately 700 companies with approximately 7,000,000 employees (average score of global companies in the top 10% based on financial performance in their respective industries); this score was 66% in 2021

G：Governance Data

Corporate Governance Structure (As of July 2023)

Boad of Directors, Nominating Committee and Compensation Committee

	Board of Directors
Composition	7 members ・Presiding officer: Chairman of the Board of Directors ・Standing directors: 3 ・Outside directors: 3
Composition	Three of the seven directors are outside directors in order to promote appropriate decision making and further reinforce the supervision of business execution.
Objective, Authority, and Function	The Board of Directors decides on matters required of it as set out in law and Kanematsu’s Articles of Incorporation as well as management policy and other important matters related to business execution. The Board also provides oversight of the business execution of directors and executive officers by taking up important matters referred from the Management Committee and receiving various reports. 　Decisions regarding the execution of other business operations (mainly matters to be reported as stipulated in the Board of Directors regulations) are delegated to the Management Committee or executive officers in accordance with the rules on administrative authority established by the Board of Directors.
Meeting Frequency	Regular meetings: Once a month Extraordinary meetings held as needed

	Nominating Committee
Composition	4 members ・Committee chair: Outside director ・Chairman of the Board of Directors ・Outside directors: 2
Composition	Three of the four members, including the committee chair, are independent outside directors. The committee reinforces the independence, objectivity, and accountability of the Board of Directors.
Objective, Authority, and Function	In response to inquiries from the Board of Directors, the Nominating Committee deliberates on such matters as proposals for the General Meeting of Shareholders related to the appointment and dismissal of directors and the necessary policy, rules, and procedures for reaching related resolutions. Based on these deliberations, the committee provides advice and recommendations to the Board of Directors.
Meeting Frequency	Held as needed

	Compensation Committee
Composition	4 members ・Committee chair: Outside director ・President & CEO ・Outside directors: 2
Composition	Three of the four members, including the committee chair, are independent outside directors. The committee reinforces the independence, objectivity, and accountability of the Board of Directors.
Objective, Authority, and Function	In response to inquiries from the Board of Directors, the Compensation Committee deliberates on such matters as policy regarding the setting of compensation levels and types for individual directors and executive officers, the compensation itself, and the necessary policy, rules, and procedures for reaching related resolutions. Based on these deliberations, the committee provides advice and recommendations to the Board of Directors.
Meeting Frequency	Held as needed

Management Committee

	Management Committee
Composition	12 members ・Presiding officer: President & CEO ・Chairman of the Board of Directors ・Executive officers: 10
Composition	The committee has 12 members, comprising the chairman of the Board of Directors and certain executive officers, including the president.
Objective, Authority, and Function	The executive officer system has been adopted to improve the flexibility of business execution, speed up management decision making, and further clarify roles and responsibilities through the separation of supervisory and executive functions, with the Management Committee established as an executive body. 　The Management Committee establishes basic policies for Companywide general business execution in accordance with policies determined by the Board of Directors and provides instruction and guidance on the execution of business.
Meeting Frequency	Generally twice a month Extraordinary meetings held as needed

Audit & Supervisory Board

	Audit & Supervisory Board
Composition	4 members ・Presiding officer: Standing Audit & Supervisory Board member ・Standing Audit & Supervisory Board member: 1 ・Outside Audit & Supervisory Board members: 2
Composition	Two (half) of the four Audit & Supervisory Board members are outside members in order to increase the transparency of management and create a more equitable, efficient, and sound company.
Objective, Authority, and Function	Kanematsu uses the audit & supervisory board system. The Audit & Supervisory Board and its members act independently to audit directors’ performance of their duties. The Audit & Supervisory Board works with the Board of Directors to provide part of the Company’s auditing function and audits the directors’ performance of their duties as an independent body acting on behalf of shareholders.
Meeting Frequency	Regular meetings: Once a month Extraordinary meetings held as needed

Other Committees

	Project Deliberation Committee
Composition	3 members ・Presiding officer: Chief Officer of Credit Control ・Executive officers: 2 (chief officers of finance and accounting and corporate planning)
Composition	The committee comprises the chief officers of credit control, finance and accounting, and corporate planning.
Objective, Authority, and Function	To speed up the decision making, enhance deliberations, and minimize business risks, prior to resolutions on such important matters as major investments and loans, the Project Deliberation Committee examines and deliberates the matters in question from a Company-wide perspective and provides advice to the respective decision-making bodies or individuals.
Meeting Frequency	Extraordinary meetings held as needed (About twice a month)

	Internal Control and Compliance Committee
Composition	5 members ・Committee chair: Chairman of the Board of Directors ・Committee vice-chair: President & CEO ・Executive officers: 3
Composition	The committee has five members, comprising the chairman of the Board of Directors and certain executive officers, including the president.
Objective, Authority, and Function	As a Companywide internal body, the Internal Control and Compliance Committee comprehensively assesses risks facing the Kanematsu Group, seeks to enhance operational effectiveness and efficiency, and strives to ensure the reliability of Group financial reporting.
Meeting Frequency	Generally held twice a year, in April and July

	Sustainability Management Committee
Composition	7 members ・Committee chair: Chief Officer of Corporate Planning ・Executive officers: 6
Composition	The committee comprises six officers from business divisions (executive officers) and the chief officer of corporate planning (an executive officer), who chairs the committee.
Objective, Authority, and Function	To help solve increasingly serious social and environmental problems, including climate change, Kanematsu established the Sustainability Management Committee, which deliberates on climate-related risks identified and evaluated by the business divisions. The committee also regularly calculates the Group’s CO2 emissions and discusses changes in emissions and policy for related measures as part of implementing comprehensive risk management. 　Furthermore, the committee identifies and revises the Company’s key issues and deliberates on overall sustainability initiatives, including ensuring respect for human rights, as well as the Company’s participation in outside initiatives, such as support for the United Nations Global Compact.
Meeting Frequency	Held as needed

Anti-corruption policy violations ＆ Violations of the compliance code

Violations of the compliance code

In FY2023, there were no violations of compliance that had a significant impact on the management of Kanematsu or its consolidated subsidiaries.

Anti-corruption policy violations

The fiscal year ended March 31, 2023

Dismissals of employees:	0
Disciplinary actions against employees:	0
Corruption-related fines:	0
Political contributions:	0

Sustainability