Sustainability Governance

SUSTAINABILITY
MANAGEMENT

Sustainability Management Monitoring System

In its pursuit of sustainable growth through sustainability management, Tokyo Century has instituted a monitoring system to confirm progress of management strategies based on its defined five key issues (materiality) and to provide advice for improvements. Moreover, appropriate governance is practiced and a PDCA (plan–do–check–act) cycle is implemented to improve the effectiveness of sustainability management.

Structure for Promoting Sustainability Management

Role of the Sustainability Committee

Established in April 2018, the Sustainability Committee is responsible for deliberations related to sustainability management at Tokyo Century. This committee meets twice a year, in principle. Important matters deliberated on by the Sustainability Committee are reported to and discussed by the Management Meeting and the Board of Directors to allow for oversight by the latter.
The Sustainability Committee is chaired by the president of the Corporate Planning Unit, and this committee promotes initiatives for addressing materiality items that position sustainability as an important management issue. The Sustainability Management Division, which is responsible for planning, promoting, and overseeing Companywide sustainability initiatives, functions as the secretariat for the Sustainability Committee.

Members of the Sustainability Committee

Implementation of PDCA Cycle

In February 2020, Tokyo Century formulated its Sustainability Road Map. This road map was approved following discussions by the Sustainability Committee before being reported to the Management Meeting and the Board of Directors.

The Sustainability Committee manages the progress of initiatives in accordance with the Sustainability Road Map and submits reports on said progress to the Management Meeting and the Board of Directors. Based on these progress reports, instructions are issued to the Sustainability Management Division and other relevant divisions from the Sustainability Committee, the Management Meeting, or the Board of Directors as deemed necessary. The above divisions then carry out these instructions to improve the effectiveness of Tokyo Century’s sustainability management and to enhance its environmental, social, and governance (ESG) strategies.

Major Sustainability Committee Agenda Items and Reports and Responses

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Major Agenda Items	Fiscal 2021	Fiscal 2022
Information disclosure based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)	Scenario analysis of aviation business (aircraft leasing) and discussion and approval of related disclosure proposal Response Disclosure of results of scenario analysis of aviation business (aircraft leasing) in May 2022	Scenario analysis of automobility business (corporate and individual auto leasing) and discussion and approval of related disclosure proposal Response Disclosure of results of scenario analysis of automobility business (corporate and individual auto leasing) in May 2023
Carbon-neutrality initiatives	Reporting on the Tokyo Century Group’s carbon-neutrality initiatives	Discussion and approval of carbon-neutrality policies and action plans Response Announcement of Carbon-Neutrality Policy by fiscal 2040 and transition road map in September 2022
Trial introduction of internal carbon pricing system		Discussion and approval of trial introduction of internal carbon pricing system Response Trial introduction of internal carbon pricing system in June 2023
Endorsement of GX League		Declaration of endorsement of GX League Basic Concept in October 2022 Response Discussion and approval of participation in GX League (participation commenced in fiscal 2023)
Business and human rights initiatives	Discussion and approval of draft of Tokyo Century Group Human Rights Policy in December 2021 Response Official announcement of Tokyo Century Group Human Rights Policy in December 2021	Response Human rights due diligence activities centered on domestic Group companies based on Tokyo Century Group Human Rights Policy
Progress of medium- to longterm sustainability management initiatives (Sustainability Road Map)	Confirmation of fiscal 2021 progress of medium- to long-term sustainability management initiatives (Sustainability Road Map)	Confirmation of fiscal 2022 progress of medium- to long-term sustainability management initiatives (Sustainability Road Map)