Risk and Impact Management

Mechanism for Identifying and Assessing Risks and Impacts

The Corporate Sustainability Department, oversees environmental matters (including nature-related issues), takes the lead in identifying risks, assessing impacts, and reporting findings and making recommendations to the Sustainability Committee, in cooperation with related internal departments and Group companies. The Sustainability Committee deliberates and evaluates the reported risks and recommendations. If a high-risk event is identified, it is reported to the Board of Directors as necessary. The Board of Directors receives updates from the Sustainability Committee on the status of environmental risks (including nature-related issues) and oversees efforts to address these risks and set targets.

Risk Management Mechanism and the Role of Each Organization

In our environmental risk management framework, each organization has the following responsibilities.

Organization/Department	Function
Board of Directors	Receives reports on environmental risk management and responses from Sustainability and Risk Management Committees, and oversees such risk management and responses
Sustainability Committee	Deliberates and evaluates the reported impacts of and recommended responses to environment Deliberates and coordinates in order to adapt to environment, 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 regularly and as needed to the Board of Directors
Risk Management Committee	Determines appropriate measures from the perspective of Group-wide risk management and reports to the Board of Directors
Corporate Sustainability Department (Department in charge of environmental matters)	Engages in planning, proposals and management related to environment, including the process of identifying and assessing the impact of environment, the mechanism for managing identified impacts and the mechanism for their integration into Group-wide risk management Promotes Group-wide responses to environment Submits reports and recommendations to the Sustainability Committee and Risk Management Committee