Sustainability

Sustainability Strategy

Approach to Sustainability Management

The Mitsuboshi Belting Group practices ESG management under its corporate philosophy, “To give attentive consideration to both humanity and nature,” with the aim of enhancing both corporate value and environmental and social value.

In its “Vision for FY2030,” the Group identifies “contributing to the realization of a sustainable society (enhancing social and economic value)” as one of its goals and works to address ESG issues, with a focus on the material issues it has identified.

Sustainability Management Promotion System

At a time when companies are expected to play an increasingly significant role in addressing environmental and social issues, the Group reassessed the role it should fulfill and its purpose in society. In April 2022, the Group established the Sustainability Promotion Committee, chaired by the President and Representative Director, to implement ESG management promptly and effectively. In July 2024, the committee was repositioned as the Sustainability Committee to further strengthen its role and functions and establish a more effective operating structure.

For each material issue identified, a promotion organization is assigned responsibility for addressing the issue and managing the relevant KPIs. These promotion organizations comprise committees, business departments, or working groups under the Sustainability Committee. Progress is reported to the Sustainability Committee, which monitors and evaluates implementation, provides direction, and makes necessary decisions. The activities of the Sustainability Committee are reported to the Board of Directors as necessary.

1. Composition of the Sustainability Committee

Chair: President and Representative Director
Vice Chair: Executive Officer
Members: 4 Directors, 3 Executive Officers, and 4 General Managers
Observer: 1 Audit & Supervisory Board Member
Secretariat: Corporate Communications Headquarters, Sustainability Promotion Office

2. Sustainability Committee Structure

Frequency: Monthly
Matters deliberated:
・Formulation of Group-wide strategies for sustainability issues, monitoring of progress, and provision of guidance
・Discussion of progress on measures related to each material issue
・Identification of sustainability issues requiring deliberation by the Board of Directors and reporting of those issues to the Board

3. Principal Agenda Items Discussed by the Sustainability Committee

Period	Category			Key Agenda Items
Q1	E			Report on FY2024 CO₂ Emissions, Water Resources, and Waste Performance
	E	S	G	Disclosure of Sustainability Information in the Annual Securities Report
	E			Activities of the Environmentally Contributing Product Development Working Group
		S		Measures to Enhance Employee Understanding of the Corporate Philosophy Framework
Q2		S		Health & Productivity Management Certification Initiatives
	E	S	G	Content of the Integrated Report 2025
	E	S	G	Response to CDP Questionnaire and Disclosure Content
		S		Revision of the Human Rights Policy
Q3	E			Report on FY2025 First-Half CO₂ Emissions, Water Resources, and Waste Performance
	E	S	G	Activities of the SDGs Promotion Committee
	E			Third-Party Verification Results for the Sustainability-Linked Loan
	E			Status of Compliance with ESG-Related Regulations (EUDR)
Q4	E			Site-Specific Targets for CO₂ Emissions, Water Consumption, and Waste Generation
	E	S	G	Review of Materiality Topics and KPIs
	E			Use of Carbon-Neutral LNG and City Gas at Domestic Sites
	E	S	G	Initiatives to Improve EcoVadis Assessment Scores

Material Issues Related to ESG

The Mitsuboshi Belting Group regards addressing environmental and social issues as a prerequisite for conducting its business. To contribute to the realization of a sustainable society, the Group has identified the material issues it should address and established KPIs for each measure.

Under its corporate philosophy, “To give attentive consideration to both humanity and nature,” the Group has identified the material issues it should address to contribute to the realization of a sustainable society. The Group actively promotes initiatives to address environmental, social, and governance issues.

In April 2022, the Group established the Sustainability Promotion Committee, chaired by the President. In July 2024, the committee was repositioned as the Sustainability Committee to further strengthen its role and functions and establish a more effective operating structure. To realize the Group’s Target Position of becoming “a company that supports comfortable lives through the power of Kagaku” and to contribute to building a sustainable society, the Group redefined the management issues required to achieve these aims as material issues in its ESG management and established action items and KPIs for each issue. The Sustainability Committee monitors and evaluates implementation, provides direction, and makes necessary decisions. Promotion organizations are assigned according to the issues to be addressed. By collecting and analyzing information from business departments and affiliated companies and reporting on implementation status and strategic proposals, these organizations support the Sustainability Committee and help the Group achieve its ESG management targets more promptly and reliably.

The Group referred to international frameworks and guidelines, including the SDGs, ISO 26000, and the GRI Standards, and analyzed its business environment and business structure. It then identified issues to be addressed from the perspectives of both its dependencies on and impacts on society and the environment. Following repeated deliberations by the Sustainability Committee, the Group identified its material issues.

□Materiality List

Materiality

Sub-materiality
(Issues to be addressed)

Measures

KPI

Progress in FY2025

Contribution to the realization of a decarbonized Society

Reduction of CO2 emissions
(CO2 equivalent; compared to 2013)

※Our company manages emissions of all greenhouse gases (GHGs) in terms of CO2 equivalents.

Introduction of renewable electricity
Installation of a solar power generation system
Introduction of carbon-neutral fuel
Switching to low-emission fuels

CO2 emissions reduction targets (Scope 1 and 2; Base year: FY2013)

Geographic scope	Target year
Geographic scope	2023	2025	2026	2030	2050
Japan	22%	27%	40%	46%	CN
Overseas	-	-	27%	40%	CN

CO₂ emissions reduction achieved: 36% (vs. FY2013 baseline)

(Scope 1 & 2 at eight domestic sites)

Improvement of energy consumption intensity

Energy consumption intensity target: 1% or more reduction compared to the previous fiscal year (8 sites in Japan)

Improvement in energy intensity: 3.1%^※1

Emissions management throughout the value chain

Set a reduction target for Scope 3 emissions and work to reduce emissions throughout the entire value chain.

Scope 3 emissions (consolidated): 346,449 t-CO₂

Biodiversity conservation

Initiatives for water resources conservation

Installation of a cooling water circulation system

Water withdrawal target for sites in Japan: Reduce the amount of water withdrawal by 50% by FY2030 (base year: FY2021)

Reduction in water withdrawal at domestic sites: 21.1% (vs. FY2021)

Improvement of water consumption efficiency

Water withdrawal target for overseas sites: Maintain water withdrawal intensity (base year: FY2021)

Water intensity at overseas sites: 13.33 m³/t (FY2021: 16.77 m³/t)

Initiatives for environmental conservation / Prevention of environmental pollution

Strengthening of wastewater management

Zero violations of laws and regulations

Number of regulatory violations: 0

Strengthening of chemical substance management

Target for amount of chemical substances released/transferred: 150 tons/year or less

Chemical emissions and transfers: 116 t/year

Strengthening of VOC emissions management

VOC emission target: 73 tons/year or less

VOC emissions: 46 t/year

Strengthening of management of natural rubber and cotton producing regions

Manage natural rubber and cotton producing regions and promote a switch to sustainable materials in collaboration with business partners.

Completed transition to natural rubber compliant with the EU Deforestation Regulation (EUDR)

Establishment of a resource-recycling society / Effective use of resources

Reduction of waste volume / Promotion of 3Rs

Reduction in the amount of industrial waste landfilled

Less than 1% of waste generated (achievement of zero emissions / Boundary: sites in Japan)

Landfill disposal rate of industrial waste: 0.2%

Development of Eco-Friendly Products

Expansion of eco-friendly products

Establish a management system and promote the expansion of eco-friendly products, such as products with lower carbon emissions and products that reduce resource depletion.

Environmentally Contributing Products: Management framework review completed

Respect for human rights and personality

Promotion of human rights due diligence

Promotion of human rights DD throughout the supply chain

Promote human rights due diligence throughout the supply chain in collaboration with business partners

Human rights due diligence conducted across the supply chain

Health and productivity management and occupational safety and health management

Strengthening of employee health, and occupational safety/health management

Reduce the percentage of smokers among employees to 15% or less by FY2030. / Reduce the obesity rate (the proportion of people with a BMI of 25 or more) to 25% or less by FY2030.

Smoking rate: 24.8%; obesity rate: 29.1%

Reinforcement of a human resources strategy

Promoting DEI

Promoting DEI

Percentage of female managers (Section Chief): 5% or more for FY2026, 10% or more for FY2030 (nonconsolidated)

Female managers (section manager level): 4.5%

Promotion of human capital management

Improvement of employee engagement (improved survey scores)

Score improvement targets: 10% improvement for FY2026, 13% improvement for FY2030

Engagement score: Improved by 3.9% compared with FY2023

Improvement of management transparency and prevention of corruption

Thorough compliance

Prevention of corrupt practices

Zero violations of laws and regulations

Number of regulatory violations: 0

Enhancement of risk ｍanagement

Promotion of business continuity planning activities

Maintain, manage and improve the risk management system.

・Conducted BCP effectiveness evaluations through training and drills
・Expanded BCP implementation to four additional sites

Strengthening of information security

Number of incidents related to information security: 0

Number of information security incidents: 0

Improvement of stakeholder engagement

Active dialogue with stakeholders

Create opportunities for constructive dialogue and promote proactive communication.

Meetings held with investors and analysts: 55

Timely and appropriate information disclosure

2030: Obtain the highest rating in the global standard ESG evaluation

CDP Climate Change: B Score ^※2 │ ｜ FTSE Rating: 3.43.4^※3

Improvement of engagement with local communities

Respond to disasters etc. in collaboration with local communities.

Meetings with local community development organizations: 17

※1　Eight sites in Japan │ Energy intensity = total energy consumption / raw material consumption
※2　Score announced in January 2026
※3　Score announced in June 2026