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 2024 (FY2024) are assured by KPMG AZSA Sustainability Co., Ltd.

Independent Assurance Report

Boundary(※1)

Kanematsu Corporation	Headquarter, all offices in Japan and overseas branches and representatives
Consolidated(※2)	Subsidiaries ( 99 companies )
Kanematsu Group	Total 100 companies

This is the boundary of CO2 emissions (Scope1, Scope2, Scope3(excluding Category 1)) , Electricity consumption and Energy consumption.
Only the beef purchased by Kanematsu Corporation is included in the the boundary of Scope 3 Category 1.
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 three other companies

CO₂ emissions（Scope1, Scope2）

（Unit：t-CO₂）

		FY2022	FY2023	FY2024
Kanematsu Group	Scope1	9,772	9,507	8,781 ★
	Scope2	19,725	18,814	17,788 ★
	total	29,497	28,321	26,569 ★

How to calculate

Scope1: Fuel consumption × emission factor
Scope2: Electricity consumption etc. × 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（Scope3）

（Unit：t-CO₂）

Category	FY2022	FY2023	FY2024
Category 1 : Purchased goods and services ^※1	980,261	773,773	740,394
Category 2 : Capital goods ^※2	41,130	63,732	48,905 ★
Category 3 : Fuel- and energy-related activities (not included in scope 1 or scope 2) ^※3	4,982	5,238	5,117
Category 6 : Business travel^※4	1,205	2,740	3,325
Category 7 : Employee commuting^※5	1,055	1,133	1,168
Category 15 : Investments^※6	19,142	19,142	18,444

How to calculate

Calculated by multiplying the amount of the products and services purchased by the emission factor. Among the products and services purchased, only the beef purchased by Kanematsu Corporation is concluded in the calculations.
Calculated by multiplying the Kanematsu group’s fixed assets purchased by the emission factor per capital goods price.
Calculated by multiplying the Kanematsu Group's fuel, heat and electricity consumption by each emission factor. The emissions associated with the generation of wholesale electricity are also included in this category.
For Kanematsu, calculated by multiplying the payment amount for passenger airplanes (domestic/international), passenger trains, and automobiles (buses, taxis) by each emission factor. For group companies, calculated by multiplying the number of employees by the emission factor.
Calculated by multiplying the total commuting costs for the entire group by the emission factor of passenger railways. The total commuting costs are estimated using Kanematsu’s commuting expenses and the number of employees.
Calculated by multiplying Kanematsu Group's stock investment amount by the emission factor of the investment division.

Emission factors

Emission factor is selected from the Inventory Database for Accounting for an Organization’s Greenhouse Gas Emissions throughout the Supply Chain issued by Ministry of the Environment (the latest version), the Inventory Database for Environmental Analysis (IDEA) Ver.3.4 developed by National Institute of Advanced Industrial Science and Technology （AIST）and etc..

Electricity consumption

（Unit：MWh）

	FY2022	FY2023	FY2024
Kanematsu Corporation	671	734	815
Consolidated	40,360	41,822	42,028
Kanematsu Group	41,031	42,556	42,843

Amount of electricity consumption which was generated from renewable energy: 6,098 MWh (FY2024/Kanematsu Group)

Energy consumption

（Unit：GJ）

	FY2022	FY2023	FY2024
Kanematsu Corporation	8,347	10,391	9,938
Consolidated	509,732	515,398	517,526
Kanematsu Group	518,079	525,798	527,464

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

Water Withdrawal & Waterwaste Discharge

（Unit：thousand ㎥）

Boundary	Classification	FY2022	FY2023	FY2024
Tokyo Head Office	City Water Usage	1.1	1.0	0.2
	Treated water production volume	2.7	4.8	1.9
	Waterwaste Discharge	3.8	5.8	2.4

If it's difficult to obtain the wastewater discharge data, we have calculate 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 FY2024
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	FY2024 results in comparison with the base year	Evaluation
Anti-contamination	Serious environmental accidents	Tokyo Headquarters ※1	Annually	No serious incidents	None	Achieved
Resource Conservation & Waste	Amount of waste, etc. generated	Tokyo Headquarters ※1	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 60.12%	Achieved
Resource Conservation & Waste	Recycling rate	Tokyo Headquarters ※1	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	- ※2	- ※2
Conserving Resources	Paper use	Tokyo Headquarters ※1	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 70.68%	Achieved
Conserving Resources	Electricity Usage	Tokyo Headquarters ※1	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 14.84%	Achieved

1: The Tokyo Head Office moved from the Seavance Building in Hamamatsucho to the JP Tower in Marunouchi in November 2022.
2: Due to the differences in the scope of data collection for recycling volumes before and after the relocation of the Tokyo headquarters, the base year will be changed to the fiscal year ended March 2024, after the relocation. We plan to disclose the actual figures from the fiscal year ending March 2025.

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.

			FY2022	FY2023	FY2024
Number of Hires by Gender (Unit: persons)	New graduate recruitment	Men	12	23	20
		Women	21	18	16
		Total	33	41	36
	Career recruitment	Men	9	16	19
		Women	0	6	3
		Total	9	22	22
Ratio of employees hired through career recruitment.			21%	35%	38%

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

	FY2022	FY2023	FY2024
Career-track employees*	66	68	71
Employees at manager level or above	7	9	10
Assistant manager or above	31	38	35
Ratio of women employees among new graduate hires	63.6%	43.9%	44.4%

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)

	FY2022	FY2023	FY2024
Users of childcare leave (Women)	31	29	14
Users of childcare leave (Men)	6	10	11
Users of special childbirth leave for spouse	10	2	5
"Hello Baby" Leave (Launched Oct. 2022) (Women)	-	0	0
"Hello Baby" Leave (Launched Oct. 2022) (Men)	-	6	12
Users of leave to care for sick children (Women)	31	36	42
Users of leave to care for sick children (Men)	21	13	21
Users of family care leave	0	0	0
Users of special family care holidays (Women)	12	13	20
Users of special family care holidays (Men)	8	12	6

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

Data on occupational health and safety (Non-consolidated)

		FY2022	FY2023	FY2024
Occupational health and safety goals	Number of occupational accidents	-	0	0
Occupational health and safety goals	Number of fatal accidents	-	0	0
Number of occupational accidents	Full-time employees	2	3	9
Number of occupational accidents	Contract employees	0	0	1
Of which, number of commuting accidents	Full-time employees	1	1	3
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）

	FY2022	FY2023	FY2024
Voluntary turnover rate	4.2%	4.4%	2.7%

Metrics and Targets Regarding Human Resource Development and Improving Workplace Environments

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

Key theme	KPI	FY2024 Result	FY2027 Target
the ability to design optimal solutions that are deeply rooted in supply chains	Business plan training	39.5％	60％
the capability to implement and operate solutions	IT Passport test pass rate	45.1％	100％
	DX-related training participation rate^※1	53.4％	70％
	Personnel exchange with ICT/data business companies	18	60

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

Key theme	KPI	FY2024 Result	FY2027 Target
Leveraging Diverse Individuality through DE&I	Percent of management positions held by women	5.3％	7％
	Childcare leave usage rate among eligible men	75.0％	100％
	Diverse human resource hiring rate (women and non-Japanese nationals)	37.9％^※1	Keep at 35% (4 years average)
Enhancing Engagement to Maximize Performance	Engagement score	61％^※2	The global average of companies in the top 10%^※3
Diversify work styles	Annual vacation usage rate	73.1％	75％
Diversify work styles	Full flex system usage rate	84.3％	95％
Health & Productivity Management Focused on Employee Well-Being and Employee-Friendly Labor Practices	Rate of employees undergoing regular medical checkups	99.2％	100％
	Rate of employees undergoing stress checks	97.6％	100％
	Harassment prevention training participation rate	99.9％	Keep at 100％

Since this is the first year of the four-year average target value for new graduate recruitment, the values for a single year are listed.
Result for FY 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	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 calculates annually 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 deliberates on overall sustainability initiatives, including identifying and revising the Company’s key issues (materiality), approach to climate change and biodiversity , ensuring respect for human rights.
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	8 members ・Committee chair: Chief Officer of Corporate Planning ・Executive officers: 7
Composition	The committee comprises seven 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	Regular meetings : Quarterly Extraordinary meetings : held as needed

Anti-corruption policy violations ＆ Violations of the compliance code

Violations of the compliance code

In FY2024, 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, 2024

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

Sustainability