Corporate Governance

Recognizing Hulic’s climate change response as an important management issue, we have established a corporate governance mechanism centered on Board of Director oversight and the Sustainability Committee. This governance mechanism is stipulated in the Basic Regulations on Climate Change.

Board of Directors Oversight

The Board of Directors receives reports on climate change risks and opportunities from the Sustainability Committee at least once a year, and monitors and oversees the resolution of issues and setting of targets. In addition, important matters such as management strategies, management plans, annual budgets and profit targets are decided after consideration of climate change risks and opportunities when needed.
Refer to the link page below for more information on the skills of directors.

• Link page: Directors' Skills Matrix

Sustainability Committee

Matters concerning climate change are deliberated and coordinated by the Sustainability Committee.

The Sustainability Committee, which is chaired by the President and Representative Director, who is responsible for climate change, is composed of the Vice Presidents, Senior Executive Managing Officer, GM of Corporate Sustainability Department, GM of the Business Planning and Management Department, GM of the Real Estate Planning Department and Group company executives. The Committee evaluates the impact of climate change on business at least once a year, formulates policies and strategies for mitigating identified risks and seizing opportunities, and discusses how to adapt to climate change, including reflecting its impact in plans, budgets and targets. The Committee also sets KPIs related to sustainability, including climate change, and evaluates progress by reviewing performance.

Management Responsible for Climate Change

The President and Representative Director is responsible for the matters related to climate change. The President and Representative Director serves as the Chairman of the Sustainability Committee, and is ultimately responsible for assessments of the impact of climate change on Hulic business and manages appropriate responses. The Basic Regulations on Climate Change, which stipulate items related to climate change, are a matter for approval by the President.

Department in Charge of Climate Change-related Matters

Corporate Sustainability Department is in charge of climate change-related matters and is responsible for the planning, proposal and management of climate change-related items as well as the promotion of climate change responses throughout the Group.

Specific items include:

• Leading the monitoring of climate change impacts in conjunction with related departments within Hulic and Group companies, understanding status and submitting reports and recommendations on appropriate measures to the Sustainability Committee at least once a year.
• Designing processes to identify and assess the impact of climate change, managing identified impacts and integrating them into risk management across the organization.
• Developing indicators used to measure and manage the impact of climate change, and set goals, tracking performance and reporting progress to the Sustainability Committee at least once a year.
• Submitting reports and recommendations as needed to the Risk Management Committee regarding identified climate change impacts, and integrating them into Group-wide risk management.

Environmental Advisory Council

Hulic receives advice and recommendations on environmental issues from specialized and technical knowledge and objective viewpoints. To promote efforts to create value for society, we have been holding regular Environmental Advisory Council meetings comprising external advisors and top management once a year since 2010.

We also receive advice and suggestions from external advisors on matters related to climate change that are discussed directly by top management, which is leveraged for management decision-making regarding the planning of climate change-related measures.

Climate Change-related Corporate Governance Diagram