Corporate Governance

Governance Mechanism

Matters related to the environment (including nature-related issues) are deliberated by the Sustainability Committee, which is chaired by the President and Representative Director. The committee, which is held at least once a year, sets non-financial KPIs and evaluates progress by reviewing performance and other factors. The committee also regularly assesses the dependencies, impacts, risks, and opportunities between our business and nature, and when a particularly high-risk event is identified, it is reported to the Board of Directors, ensuring oversight within our governance framework.

Stakeholder Engagement

We have established our CSR Procurement Policy and Green Procurement Policy to guide procurement and purchasing decisions, and we are working closely with our suppliers to promote sustainable procurement and address environmental issues throughout the value chain. As part of our initiatives for conserving the natural environment, we actively engage in social contribution activities, such as conserving satoyama areas (hilly wooded areas near villages), planting trees, urban greening in our development projects and promoting the use of wood in building construction and materials. Going forward, we will continue to work with local communities and stakeholders to advance diverse nature conservation initiatives and proactively share relevant information.

CSR Procurement Policy

1. We will comply with laws, regulations and social norms, and undertake business activities based on a set of corporate ethics.
2. We will respect the fundamental human rights of all people.
- ①Prohibition of discrimination
  We prohibit any discrimination against any person on the ground of his or her belief, religion, age, sex, sexual orientation, race, nationality, origin, physical or mental disability, etc.
- ②Prohibition of harassment
  We prohibit any act, including sexual harassment or abuse of authority, to inflict emotional distress on any person by language or behavior that damages his or her character or dignity.
- ③Prohibition of child labor
  We prohibit any child labor.
- ④Prohibition of forced labor
  We prohibit any forced labor carried out through violent acts or intimidation.
- ⑤Respect for the right of freedom of association and right of collective bargaining
  In line with international labor standards, we respect the right of freedom of association and right of collective bargaining.

- ⑥Reduction of excessive working hours
  In addition to ensuring compliance with labor-management agreements, including the 36 Agreement and laws and regulations of relevant countries and regions, we adopt basic policies to reduce overtime work and limit excessive work.
- ⑦Securing of health and safety of workers
  In accordance with laws and regulations of relevant countries and regions, including the Labor Standards Act, we endeavor to offer a workplace where workers can work healthily and safely.
- ⑧Payment of wages over minimum wage
  We pay wages over minimum wages prescribed in various local laws and regulations as well as the Minimum Wage Act.
3. We will take consideration of environmental conservation and will strive to promote green procurement.
We will endeavor to conduct procurement in accordance with the Hulic Green Procurement Policy in order to realize a sustainable society.
4. We will build an information management system and manage information appropriately.
5. We will carry out fair and equitable business transactions and build trusting relationships with business partners.
6. We will strive to provide safety, peace of mind and high quality.

Green Procurement Initiatives

To engage in energy-saving activities and reduce GHG emissions;
To reduce the amount of water consumption as much as possible;
To carry out a biodiversity-friendly business;
To fully prevent environmental pollution; and
To make efforts to save resources and reduce the amount of waste.