Evaluation of Effectiveness of the Board of Directors | Sustainability

The effectiveness of the Board of Directors is evaluated once a year. The Board of Directors deliberate and consider specific improvements based on the results, and ongoing efforts are made to improve the functioning of the Board by implementing those measures.

Issues in the 2022 Board of Directors effectiveness evaluation and initiatives in 2023

Issues Identified in the 2022 Effectiveness Evaluation		Results of Efforts in 2023
Issue 1	Strengthening monitoring with regard to investment projects above a certain amount	Established a monitoring mechanism by identifying critical investment projects, compiled a list of related documents, and updated the list as appropriate Reported the progress of critical investment projects to the Board of Directors, etc
Issue 2	Fostering deeper discussions of sustainability	Held discussions based on Sustainability Committee activity report (Disclosure of carbon-neutral and ESG-related information)
Issue 3	Strengthening the supervisory function of the Board of DirectorsTraining and identifying next-generation leaders, identifying talent, raising awareness	Discussed strengthening governance Transitioned to a company with an Audit and Supervisory Committee Conducted interviews and held discussions between outside directors and division heads and next-generation leaders

2023 Board of Directors Effectiveness Evaluation

Implementation period: December 2023
Method of evaluation of effectiveness: survey (named/multiple choice/descriptive)
Target: 11 persons total^* (8 directors, 3 Audit & Supervisory Board members)
*At the time the survey was conducted.

The effectiveness of the Board of Directors has been recognized as being secured, as the role, composition, and operation, etc. of the Board of Directors have all received positive evaluations in the 2023 Board of Directors Effectiveness Evaluation. Additionally, the evaluation of each issue was confirmed to have improved significantly through the steady implementation of the 2023 initiatives (see above) to address the issues identified in the 2022 Board of Directors Effectiveness Evaluation.

Issues Identified in the 2023 Effectiveness Evaluation		Efforts to Make in 2024
Issue 1	Improve effectiveness of monitoring of critical investment projects, etc.	Strengthen supervision of progress against the plan by utilizing the list of critical investment projects prepared the previous year. Additionally, discuss issues and risks of high importance at Board of Directors meetings, etc.
Issue 2	Systematically set agendas for key issues (succession planning, sustainability-related issues, business portfolios, etc.) and discuss them at Board of Directors meetings	Systematically set agendas for key issues (succession planning, sustainability-related issues, business portfolios, etc.) and discuss them at Board of Directors meetings
Issue 3	Review and enhance discussion of the process for formulating the next Medium-Term Business Plan	Have repeated discussions among the Board of Directors members from the early stages of development Will share information on the process of internal discussions with outside directors as appropriate and incorporate their opinions into the formulation of the plan