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Material Foundation for Corporate Activities

The Company sets material foundations for corporate activities to increase its corporate value in a sustainable manner by prospering together with all stakeholders. The material foundations are identified based on dialogue, including environmental, social and governance (“ESG”) topics, with its external stakeholders, and internal discussions of its Board of Directors and the Committees. The Company reinforces initiatives for each theme, and the Board of Directors monitors them based on discussions in the related Committees, which are advisory bodies to the Board of Directors.

Corporate Governance

The Company endeavors to strengthen its corporate governance by designating the COO, Managing Corporate Executive Officer and Director of the Board as a responsible person for corporate governance including ESG. Based on its initiatives, the Board of Directors confirms the appropriateness of its corporate governance and its compensation structure from a mid-to long-term perspective, based on discussions in its advisory bodies such as Nomination and Compensation Committees. Specifically the Company focuses on enhancing gender diversity in the Board of Directors members including Audit & Supervisory Board members by setting a target. The Board of Directors has also decided to include ESG factors in compensation of each Executive Director beginning in FY2021.

Human Capital

The Company has positioned value creation produced by its empowered employees as a renewed priority for management, and will take further actions to reinforce human capital, especially focusing on initiatives for diversity, equity and inclusion (DEI) and employee engagement. The Company will specifically accelerate its initiatives for gender diversity by setting group-wide targets as a corporate strategy, and the Board of Directors will discuss and monitor the progress, based on discussions in the Sustainability Committee.

Corporate Ethics and Compliance

The Company views corporate ethics and compliance as a fundamental prerequisite for our corporate activities, and defines it as meeting society’s expectations and demands through appropriate action both as a company and as individuals, beyond the framework of solely legal compliance. The initiatives include employee training and whistleblowing programs. The Board of Directors monitors corporate ethics and compliance initiatives, based on discussions in the Compliance Committee.

Data Security and Data Privacy

The Company sets Data Security and Data Privacy as a high-prioritized risk, and takes appropriate initiatives depending on the importance of the data or information in our possession as well as the characteristics of the data or information to be protected. It has also established structures and measures required in the laws and regulations in each country and area in which it operates. The Board of Directors discusses and monitors the
initiatives, based on discussions in the Risk Management Committee.

Human Rights

The Company sets the Recruit Group Human Rights Policy, which was resolved by the Board of Directors, based on discussions in the Sustainability Committee. This policy is set to protect all employees, temporary workers, including those who work for its business clients through the Staffing SBU, and its senior management. The Company is also committed to carefully identifying risks, and to respecting and protecting human rights which may be affected by the rapid development of technology.

Conservation of the Planet

To support the longevity of our world, which is the foundation of our corporate activities, the Company specifically considers climate change as important among various environmental issues, and commits to reducing greenhouse gas (“GHG”) emissions by setting a group-wide target. The progress of the target will be monitored by the Board of Directors, based on discussions in the Sustainability Committee.

The COO, Managing Corporate Executive Officer and Director of the Board is responsible for climate change matters, and identifies, evaluates and oversees the Company’s opportunities and risks related to climate change. In addition, the Company will also take initiatives including climate risk analyses, and aims to provide disclosures aligned with the Task Force on Climate-Related Financial Disclosures (“TCFD”) framework from FY2021. The Board of Directors is also responsible for establishing a structure for the
Company to take appropriate measures for climate change, and oversees its initiatives.