Governance Report

Corporate Governance （2）

Pursuing Strategic CSR Practice

Many stakeholders support the business of the Lintec Group. To meet these stakeholders' expectations and be trusted by them, all Lintec Group employees actively conduct CSR activities centered on the company motto, "Sincerity and Creativity", and in accordance with the "LINTEC WAY", which is an important value supporting the company motto, the Basic CSR Approaches, and the Lintec Group Compliance Guidelines. To materialize the key initiatives of the LINTEC SUSTAINABILITY VISION 2030 (Abbreviation: LSV 2030), the long-term vision covering the period from April 2021, we established a system to promote initiatives related to ESG and the SDGs and reviewed the Group's issues of materiality. Going forward, we will set KPIs* for the material issues and engage in strategic sustainability promotion activities by implementing the PDCA cycle. In addition, the Group promotes business operations and CSR activities based on international standards by participating in the United Nations Global Compact and referring to ISO 26000 (Guidance on social responsibility).

^★Key performance indicators (KPIs): KPIs are important indicators related to organizational strategies, and quantitatively measure progress toward targets.

Sustainability Promotion System (As of April 1, 2022)

Slide to view.

Committees, subcommittees	Committee chairpersons, executive officers in charge of promotion	Position name
Sustainability Committee	Makoto Hattori	Representative Director, President, CEO and COO
●Sustainability Disclosure Subcommittee	Shigeru Uematsu	Senior Executive Officer, General Manager, Public Relations Office
Environmental Committee	Gohei Kawamura	Director, Senior Managing Executive Officer, Executive General Manager, Production Division
●TCFD Subcommittee	Gohei Kawamura	Director, Senior Managing Executive Officer, Executive General Manager, Production Division
Social & Governance Committee	Tsunetoshi Mochizuki	Director, Senior Managing Executive Officer, Executive General Manager, General Affairs & Human Resources Division
●Corporate Ethics Subcommittee	Tsunetoshi Mochizuki	Director, Senior Managing Executive Officer, Executive General Manager, General Affairs & Human Resources Division
●Social Contribution Subcommittee	Toshimi Sugaya	Senior Executive Officer, Deputy Executive General Manager, Business Administration Division and Executive General Manager, Converted Products Operations
●Diversity & Work Style Reform Promotion Subcommittee	Tsunetoshi Mochizuki	Director, Senior Managing Executive Officer, Executive General Manager, General Affairs & Human Resources Division
Corporate Risk Management Committee	Takeshi Kaiya	Director, Managing Executive Officer, Executive General Manager, Business Administration Division
SDGs Committee	Takeshi Kaiya	Director, Managing Executive Officer, Executive General Manager, Business Administration Division
SDGs Committee	Norio Murata	Senior Executive Officer, Executive General Manager, Osaka Branch Office, Business Administration Division, in charge of Western Japan

Legal Education for Top Management and Employees

To promote understanding of corporate legal affairs, Lintec provides directors and executive officers with a top-management training program. In fiscal 2020, we held two sessions, one on the theme of "Business Turnaround and Roles of Lawyers" in July 2020, and the other on "Trends on Key Audit Matters (KAM)" in January 2021. As for training for employees, we implement legal training for salespersons (four online sessions took place in fiscal 2020) geared to mid-level employees in charge of sales. We are also incorporating legal seminars into annual group training programs for newly appointed managers and newly appointed section chiefs. In addition, Legal News is published six times a year to provide timely information related to legal affairs to employees of the Lintec Group. These training programs and information disseminated include anti-corruption regulations in other countries, as well as cases of violation. We thus help employees to enhance their cognizance of potential legal risks lurking in daily business activities, which is expected to lead to early risk detection and response.

Related Data

Outside Directors

Slide to view.

Director Akira Sebe (Executive Officer, General Manager of Raw Materials & Purchasing Division, Nippon Paper Industries Co., Ltd. in charge of Subsidiaries and Affiliated Companies and International Business Division)	Akira Sebe is playing a role in strengthening the supervisory function of Lintec's Board of Directors by drawing on the knowledge and experience he has acquired while serving as executive officer and engaging in materials-related operations over many years at Nippon Paper Industries.
Director Akiko Okushima (Representative Director and President, JBtoB CO., LTD.)	By utilizing her extensive management experience gained through many years of serving as a representative director and president in a different industry and her wide-ranging expertise in the marketing field, including her know-how and experience, Akiko Okushima is playing a role in strengthening the supervisory function of Lintec's Board of Directors. Being a member of the Nomination and Compensation Committee, which serves as an advisory body to the Board of Directors, she is also involved in determining the nomination and compensation of corporate officers.
Director Shigeru Sugimoto (Representative, Crowe Sakura & Co., Representative, Sakura & Co., Representative Member, Sakura LLC)	Shigeru Sugimoto is playing a role in strengthening the supervisory function of Lintec's Board of Directors by drawing on the advanced and extensive specialist knowledge he has developed as a certified accountant, real estate appraiser, and tax accountant, as well as the wealth of experience he has accumulated over the course of a long business career, including managing his own company while also serving as outside director and auditor at a number of companies in other industries. Being a member of the Nomination and Compensation Committee, which serves as an advisory body to the Board of Directors, he is also involved in determining the nomination and compensation of corporate officers.
Director / Audit & Supervisory Committee Member Satoshi Ohoka (Outside Director, Ryobi Limited)	Satoshi Ohoka audits and supervises Lintec's Board of Directors and fulfills his role by drawing on his experience in policy-based financial institutions, his rich international experience, his specialized academic experience, and the knowledge and experience he acquired as an outside director in other industries.. Being a member of the Nomination and Compensation Committee, which serves as an advisory body to the Board of Directors, he is also involved in determining the nomination and compensation of corporate officers.
Director / Audit & Supervisory Committee Member Kanako Osawa (Lawyer at Kajitani Law Offices, Representative, Crowe Sakura & Co., Representative, Sakura & Co., Representative Member, Sakura LLC)	Kanako Osawa audits and supervises Lintec's Board of Directors by drawing on her advanced legal knowledge, broad insights, and knowledge and experience acquired in corporate legal affairs in and outside Japan. Being a member of the Nomination and Compensation Committee, which serves as an advisory body to the Board of Directors, she is also involved in determining the nomination and compensation of corporate officers.

(As of July 1, 2022)

Number of Board of Directors meetings

Number of meetings : 15
Attendance of directors : 100%
Attendance of outside directors : 100%

Number of Audit & Supervisory Committee meetings

Number of meetings : 13
Attendance of directors : 100%
Attendance of outside directors : 100%

Sustainability