GX Promotion Subcommittee (Renamed from "Environmental Subcommittee" in July 2026)

The GX Promotion Subcommittee implements initiatives to ensure legal compliance with environmental laws and regulations, including the Energy Conservation Act, and reduce emissions of environmentally hazardous substances.

In FY2026.6, based on our monitoring of greenhouse gas (GHG) emissions and review of reduction measures at each site, we worked to reduce environmental impact through specific equipment upgrades and operational improvements:

• ・ Upgrading air conditioning systems and accelerating the switch to LED lighting at the KOA ISEI Headquarters Factory
• ・ Upgrading air conditioning systems at the KOA ISEI Yamagata Distribution Center
• ・ Achieving zero GHG emissions at the Hiyoshi Head Office by upgrading air conditioning systems and adopting a renewable energy plan

We will continue working on reducing GHG emissions while discussing and reviewing targets.

The "Eco-Life Promotion Team," an internal body encouraging each employee to be more aware of environmental issues in their daily life, aims to foster a "can-do" mindset through everyday initiatives and drive proactive action. As a result, environmental awareness and eco-friendly behaviors are steadily taking root across our workforce.

Specific initiatives in FY2026.6 include:

• ・ Reducing plastic bottle consumption by installing water purification dispensers and distributing reusable bottles
• ・ Collecting pre-owned books to launch a circular "in-house library" system
• ・ Promoting the internal reuse of unused items through a "Wanted / Offered" bulletin board
• ・ Continuing plastic bottle cap collection and recycling across all sites
• ・ Encouraging employee donations to NPOs

TCFD Subcommittee (TCFD=Task Force on Climate-related Financial Disclosures) (The TCFD Subcommittee was integrated into the GX Promotion Subcommittee in July 2026)

The TCFD subcommittee conducts various surveys and studies to develop management strategies using TCFD framework and works to put the action plans into practice aimed at improving corporate value.

Engagement Improvement Subcommittee (Renamed from "Work Style Reform Subcommittee" in July 2026)

The Engagement Improvement Subcommittee promotes measures for employees to improve productivity and create innovation, aiming at realizing a sustainable society and improving corporate value. Specifically, we are creating a workplace environment that supports childcare and nursing care, maintains employees' health and work-life balance, and encourages employee growth.

In FY2026.6, employee-led engagement sub-committees at each Group company took the lead in initiatives tailored to local employee needs. Beginning with the 6th engagement survey, we expanded questions to cover well-being and purpose alignment, enabling us to gain a more multifaceted understanding of employee sentiments and reality. Based on these survey results, we organized "Money Lessons" led by external instructors to improve financial literacy. We also conducted additional surveys regarding staffing structures and training to identify and analyze issues, providing feedback to each department.

Moving forward, we will maintain this cycle of surveys, analysis, execution, and evaluation to foster a more supportive workplace environment and drive overall organizational growth.

Workplace Environment

We provide a comfortable workplace environment by enhancing our hiring, training and evaluation systems that respect diversity and flexibly adjusting our work systems, with the aim of the realization of workplace diversity.

In FY2026.6, we worked to improve the workplace environment based on employee feedback. We enhanced employee benefits by expanding the free beverage lineup, switching to a benefit service app to improve usability, and introducing in-office meal services at factories. We also fostered communication among employees through buddy activities utilizing a custom-developed app, new employee welcome lunches, and cross-site networking events. Furthermore, we are working to enhance the quality of daily communication through operational changes to 1-on-1 meetings and the creation and rollout of evaluator guidelines.

By continuously adapting to internal and external changes, we will keep working on creating an environment where employees can work with peace of mind.

Employee Growth

We aim to develop human resources that respect diversity while supporting each employee's autonomous career development. We are promoting employees' growth based on the concept of "being capable to learn, think, use imagination, and overcome obstacles on one's own," which reflects our approach emphasizing not only knowledge but also action.

In FY2026.6, we enhanced our personnel system by establishing course-based personnel management to improve career well-being, alongside implementing base pay increases and introducing specialist skill allowances to support financial well-being. In addition, we supported employee knowledge and skill development by conducting training for managers using an online learning system (Schoo) and holding internal study sessions to share expertise across departments.

Moving forward, we aim to establish a human resource development program through collaboration between the HR department and the Engagement Improvement Subcommittee.

SSCM Subcommittee (SSCM = Sustainability Supply Chain Management)

Recognizing that collaboration throughout the supply chain is an essential part to practice environmental conservation and proper and fair trade, the SSCM Subcommittee regularly conducts a questionnaire survey of suppliers in accordance with the Sustainable Procurement Policy. In addition to conventional topics such as compliance, quality, fair and equitable trade, environment, human rights, and information management, we have newly added "Supplier Management (upstream supplier status, BCP formulation status, etc.)" to the questionnaire to evaluate a broader supply chain.

We provide feedback on the survey results to individual suppliers and will continue to work with them and engage in sustainable supply chain management.

Social Contribution Activities

We are supporting our society through the donations to AfriMedico, Central Community Chest of Japan, Japanese Red Cross Society, and Japan Committee for UNICEF.

AfriMedico

AfriMedico applies household distribution system for nonprescription drugs and distributes stock medications to rural areas in Africa where medical access is insufficient.