In order to both realize a sustainable society and increase corporate value through corporate activities that take the environment, society and the economy into consideration, in July 2022 the MDV Group established the Sustainability Promotion Committee under the Board of Directors. This committee meets once every quarter and is chaired by the President, who takes ultimate responsibility for ESG-related matters, and is comprised of full-time Corporate Auditors, the general managers of each business division and section chiefs. The committee plans and formulates projects, strategies and measures related to the Group’s sustainability promotion activities; monitors their progress and evaluates achievement levels. As for climate change-related issues, we have established the Subcommittee for Environmental Consideration and Achievement of a Sustainable Society, chaired by the General Manager of the Corporate Planning Division, under the Sustainability Promotion Committee. It formulates environment-related activity policies and measures that serve as Group-wide themes, and conducts monitoring. The committees report their activities to the Board of Directors once every quarter, and the Board of Directors consults and provides direction on the content of the reports.

System for Addressing Climate Change

Risk Management

1) Process for identifying and assessing climate change-related risks

MDV has established the Controlling Committee Regulations, as well as the Controlling Committee (chaired by a representative director) itself, to put a management system in place that protects against, identifies, rectifies and prevents recurrence of risks that may occur during our business operations, and addresses any risks that materialize. In relation to risks associated with climate change, the Sustainability Promotion Committee identifies and evaluates short-term risks in addition to medium- and long-term risks, with particularly important risks reported to the Board of Directors as necessary as part of the system.

2) Process for managing climate change-related risks

Once the Sustainability Promotion Committee has identified and evaluated climate change-related risks, it decides on preventive measures and action policies to reduce risk levels. The Controlling Committee manages other Group-wide risks. After risks are reported to the Board of Directors, the board passes responsibility for countermeasures on to the committee so that they can be implemented by the relevant body. In addition, as shown in the following diagram, the importance level of risks to be addressed is determined by evaluating each risk on a five-grade ranking system for both degree of impact and frequency of occurrence, and placing each risk into one of four classifications as an overall assessment of its importance.

3) Process for integrating Group-wide risk management

The Controlling Committee generally meets once every quarter to evaluate the response to risks targeted by MDV’s risk management initiatives. MDV manages climate change-related risks using the same process as that used for Group-wide risks, through collaboration between the Sustainability Promotion Committee and the Risk and Compliance Committee, creating an integrated risk management system.

Process for determining importance of risks

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