Risk Management

Matters related to climate change, including risk management, are centrally deliberated and coordinated by the Sustainability Committee, which is chaired by the President and Representative Director, under the oversight of the Board of Directors.

Mechanism for Identifying and Assessing Climate Change Risks and Opportunities

Corporate Sustainability Department, which is in charge of matters related to climate change, leads the identification of risks and opportunities and monitors the effects of climate change in conjunction with related departments within Hulic and Group companies. In addition, appropriate measures are considered and reports and recommendations are submitted to the Sustainability Committee at least once a year.

The Sustainability Committee deliberates and evaluates the reported impacts of and recommended responses to climate change. Risk assessments are reported at least once a year or as needed to the Board of Directors, along with other climate change matters deliberated and coordinated by the Sustainability Committee.

The Board of Directors receives reports from the Sustainability Committee on climate change matters, including the risk management status and response, and oversees the efforts to address issues and the targets set.

Mechanism for Managing Climate Change Risks

Corporate Sustainability Department, which is in charge of matters related to climate change, engages in planning, proposals and management related to climate change, including the process of identifying and assessing the impact of climate change, the mechanism for managing identified impacts and the mechanism for their integration into Group-wide risk management. The Department also submits reports and recommendations to the Sustainability Committee and promotes Group-wide responses to climate change. It also plays a role in integrating the impact of climate change into Group-wide risks by submitting reports and recommendations when necessary to the Risk Management Committee regarding the identified impacts of climate change.

The Sustainability Committee deliberates and evaluates the reported impacts of and recommended responses to climate change. In addition, deliberations and coordination are made to adapt to climate change, including the formulation of policies and strategies for minimizing the identified risks and reflecting them in planning, budgets and targets. The status and response to risk management deliberated and coordinated by the Sustainability Committee is reported, along with other agenda items, at least once a year or as needed to the Board of Directors.

The Risk Management Committee meets regularly to evaluate reports and recommendations from each risk management department, discuss Group-wide risks and take appropriate measures, and reports to the Board of Directors. When there are reports or recommendations regarding the impact of climate change, the Risk Management Committee will determine appropriate measures from the perspective of Group-wide risk management.

The Board of Directors receives reports on climate change risk management and responses from the Sustainability and Risk Management Committees, and oversees such risk management and responses.