BASIC POLICY ON SUSTAINABILITY
The Hakudo Group recognizes the crucial importance of facilitating sustainability-focused business management that considers ESG, the SDGs, etc. in line with Hakudo’s Management Philosophy as set forth in its Creed. Hakudo is committed to enhancing its value while helping to achieve a sustainable society by focusing on the following points in its business activities.
- Improve its understanding of sustainability-focused business management relating to ESG, the SDGs, etc. and contribute to the environment and society through its business operations accordingly.
- Consider the global environment and nature while striving to prevent global warming and help create a sound material-circulating society.
- Strive to promote the health of employees while training them to be a diverse workforce, recruit various talented individuals, promote differing workstyles, etc.
- Improve the soundness, efficiency, transparency, etc. of the Hakudo Group in order to address a wide variety of risks.
- Strive to improve its relationships with all stakeholders related to the Hakudo Group’s businesses.
- Implement initiatives that are conducive to developing such a society where all its members can live with peace of mind.
Governance structure for sustainability-focused business management
- Recognizing the importance of sustainability-focused business management, the Hakudo Group is committed to disclosing necessary information and positively engaging in effective sustainability-promoting activities in its business operations.
- Its organizational structure is designed to ensure that any matters relating to sustainability risks or opportunities are reported by the ESG-SDGs Management Committee to the Board of Directors at management meetings as well as directly when needed, so that the Board of Directors can constantly monitor them.
- These management meetings, which are chaired by the President and Representative Director, provide supervision over such sustainability risks and opportunities.

Key initiatives in sustainability-focused business management
The Hakudo Group has chosen the following key initiatives for its sustainability-focused business management, has set a goal for each of them, and has been facilitating ESG/SDGs activities accordingly.
Internal sustainability awareness activity
(key initiative 6)
No matter how hard management advocates ESG and the SDGs in a top-down manner, the company cannot achieve its specified goals if employees have little awareness of them. Therefore, Hakudo strives to raise its employees’ awareness of ESG and the SDGs by holding related educational activities and events.
Examples of activities
Distribution of internal materials explaining Hakudo’s sustainability-focused business management

Since August 2022, Hakudo has been distributing to all its employees a booklet describing its basic policy on sustainability.
Periodical production of posters to raise awareness of ESG and the SDGs

Since June 2022, various posters that are designed to raise awareness of ESG and the SDGs have been posted at all of Hakudo’s operation sites.
Contest for SDGs-advocating practices

Hakudo has been holding internal contests on activities to promote sustainability, wherein its employees are encouraged to submit and share information on their daily precautions and practices relating to the SDGs, thus constantly raising awareness of the entire workforce.