Sustainability Management

Daifuku Group Basic Sustainability Policy

Basic Approach

The Daifuku Group will contribute to the realization of a sustainable society and aim to create long-term corporate value through management practices that emphasize a balance between economic and social value.

Basic Policy

We will ensure that all Group officers and employees are aware of this policy, and we will promote sustainability.

Identification of material issues and initiatives to resolve them: In order to achieve our long-term vision, we will identify the material issues that must be addressed by the entire Group, and we will formulate management strategies, measures, and action plans based on this materiality assessment. Material issues are identified based on factors such as trends in the international community and the expectations of stakeholders, taking into consideration any risks and opportunities that may have a significant impact on the Group’s operations as well as the Group’s impact on society and the environment. We will review these material issues periodically and make revisions as necessary.
Value creation through business: We will strive to enhance the value we provide to stakeholders through the evolution of existing businesses and new domain expansion, as well as by developing new technologies, utilizing cutting-edge technologies, and creating businesses based on social issues. We will contribute to sustainable economic growth and solutions to social issues through innovative technologies and optimal solutions.
Dialogue with stakeholders: We will strive to disclose transparent information about our business status as well as our environmental, social, and governance initiatives. In order to continue to be a corporation that society trusts, we will actively engage in dialogue with our stakeholders, including customers, shareholders, investors, business partners, local communities, and employees, and we will utilize the opinions and evaluations we receive from them in the management of the Group. Additionally, we will strive to enhance the sustainability of society as a whole by strengthening our collaboration with customers and business partners in order to solve social issues related to human rights and the environment.
Sustainability education and awareness: In order to implement concrete initiatives at each workplace based on the Group’s policies and management strategies, we will conduct education and awareness-raising activities to ensure that all Group executives and employees deepen their understanding of sustainability and material issues and enhance their ability to address them.
Sustainability governance: The Board of Directors will appropriately supervise initiatives to enhance corporate value over the medium to long term, including management strategies to address risks and opportunities related to sustainability. The Sustainability Management Committee, which is chaired by the CEO, emphasizes the creation of corporate value over the medium to long term, holds crucial discussions on management strategies for the Group, and confirms the progress and results of plans. Important matters related to sustainability will be discussed at the Sustainability Management Committee, after which they will be submitted to the Board of Directors, reported upon, and resolved.

Established: April 1st, 2024

Sustainability Promotion System

FY2023 promotion system — FY2024 promotion system

Supervision and execution system for sustainability-related risks and opportunities

The Board of Directors oversees initiatives to enhance corporate value over the medium to long term, including management strategies to address sustainability-related risks and opportunities. On the Board of Directors, the CEO is the representative director charged with the supervision of sustainability-related risks and opportunities. Through training, opinion exchanges with experts, and dialogue with customers, the members of the Board of Directors are enhancing their insight into sustainability issues in order to improve their skills and competencies to oversee the Group’s initiatives.
Additionally, we have established the Sustainability Management Committee,^＊ which reports on and submits critical matters regarding sustainability issues to the Board of Directors. This Committee engages in important discussions regarding management strategies that emphasize the enhancement of corporate value over the medium to long term, as well as the confirmation of the progress and results of plans. Furthermore, the Sustainability Promotion Committee (formerly the Sustainability Committee) and the subcommittees under the jurisdiction of and in cooperation with the Sustainability Management Committee are responsible for investigating and implementing more concrete measures based in management strategies on a practical level. The Sustainability Management Committee and the Sustainability Promotion Committee will coordinate with the Risk Management Committee as necessary to monitor and appropriately respond to important sustainability-related risks.

＊The structure of sustainability-related committees was revised effective fiscal 2024, and the Sustainability Management Committee was newly established. The Sustainability Promotion Committee, under the jurisdiction of the Sustainability Management Committee, has assumed the roles for which the Sustainability Committee was previously responsible. Effective fiscal 2024, the Environmental Management Subcommittee, the Human Rights and Supply Chain Subcommittee, and the Human Capital Management Subcommittee have been placed under the jurisdiction of the Sustainability Promotion Committee, and they are each working on their specific initiatives.

Role of each organization

	Members	Role
Board of Directors	Chair: President and CEO Members: Directors (5 internal, 5 external)	Undergo decision-making and supervision of important management matters such as such as the determination of management policies, management plans, and the corporate governance system.
Sustainability Management Committee	Chair: President and CEO Members: Corporate Functions Head, Global Business Heads, Group Chief Officers, etc.	Hold important discussions on management strategy that emphasize the creation of corporate value over the medium to long term, confirm the progress and results of plans, and work to improve the sophistication of management.
Sustainability Promotion Committee	Chair: President and CEO Members: Corporate Functions Head, Global Business Heads, Group Chief Officers, etc.	As a subordinate branch of the Sustainability Management Committee, promote Group-wide environmental, social, and governance initiatives on a working level based on management strategy.
Global Sustainability Meeting	Leader: Corporate Functions Head Members: Global subsidiaries, Sustainability Management Committee members, etc.	Discuss and share information about ESG issues with our global subsidiaries in order to promote sustainability management throughout the entire Group.
Risk Management Committee	Chair: President and CEO Members: Corporate Functions Head, Global Business Heads, Group Chief Officers, etc.	Conduct Group-wide risk management for critical risks that have a significant impact on business activities. Conduct regular risk assessments to identify and evaluate significant risks, develop countermeasures, and work to improve and enhance policies, regulations, and systems.

Sustainability-related agenda items at Board of Directors and other meetings (FY2023)

Board of Directors meetings
Revision of the Daifuku Environmental Vision 2050 (April) Report on the implementation of risk assessments, future actions (October) Long-term vision Driving Innovative Impact 2030 and the Four-Year Business Plan 2027 (October, March)
Sustainability Committee (held 4 times)
Sustainability Action Plan Progress Report Establishment of the Basic Sustainability Policy ESG external evaluations Revision of the Daifuku Environmental Vision 2050 Initiatives for achieving carbon neutrality Human rights due diligence initiatives Establishment of the Sustainability Procurement Guidelines, etc.