Sustainability Promotion System
Under the following structure, the HDSI Group is promoting sustainability throughout its organization. Established on April 1, 2023, the Group's Sustainability Committee has been leading efforts to facilitate sustainability across its corporate umbrella.
（１）Governance
The HDSI Group recognizes that sustainability initiatives are a critical management issue. Accordingly, we have established a governance structure anchored by our Sustainability Committee and ensure oversight from our Board of Directors.
①Supervisory system of the Board of Directors
Our Board of Directors is responsible for, and holds authority over, oversight related to sustainability-related risks and opportunities encountered by the HDSI Group. The Board of Directors receives reports regarding critical issues discussed and addressed by the Sustainability Committee while also discussing and overseeing policies and implementation plans surrounding the management of sustainability-related risks and opportunities.
②Managerial responsibilities with regard to sustainability
The president and representative director assumes ultimate responsibility for management decisions related to sustainability issues facing the HDSI Group.
③Sustainability Committee
To strengthen its group-wide sustainability promotion system, HDSI established its Sustainability Committee on April 1, 2023. This committee serves as an organization that promotes, oversees, and manages overall sustainability for the HDSI Group. The Sustainability Committee is chaired by our president and representative director, and its members are executive directors. In principle, the Committee meets once per quarter, or four times annually.
(Primary responsibilities of the Sustainability Committee)
▸Development and revision of sustainability-related policies and strategies
▸Identification of key sustainability issues
▸Development and progressive monitoring of long-term sustainability goals and KPIs
▸Planning and reporting on promotion of sustainability-related activities
▸Identification and management of sustainability-related risks and opportunities
▸Regular reporting to the Board of Directors and submission of proposals, basic policies, etc.
④Sustainability Promotion Department
Supervised by the executive officer in charge of corporate planning and investor relations, the Corporate Planning and Investor Relations Office serves as an executive body for the Sustainability Committee and provides the committee with recommendations concerning response to critical sustainability-related issues impacting the entire HDSI Group and proposals regarding the handling of associated risks and opportunities. The office also promotes sustainability-related activities throughout HDSI Group, encouraging their implementation in all suitable divisions and Group companies.
（２）Risk management
HDSI established its system to identify, evaluate, and respond to risks related to sustainability in accordance with the "Risk and Crisis Management Regulations”. Risks are classified into company-wide risks and operational process risks, and risk evaluation is conducted once a year. The executive officer in charge of corporate planning and the corporate planning department jointly identify, analyze, and evaluate company-wide risks, while individual departments extract and identify operational process risks, which are then evaluated by the Internal Control Audit Office to determine both their frequency and the potential scales of damage they could inflict over short-, medium-, and long-term time frames. These efforts enable us to set policies from both legal and humanitarian perspectives and conduct comprehensive assessments that address all risks collectively. Following the completion of these activities, the executive officer in charge of human resources and general affairs, who also assumes responsibility for risk management, ranks individual risks by their levels of priority in accordance with assessment results. These determinations are then forwarded to the president and representative director for final approval.
We formulate policies for each individual risk while prioritizing both legal compliance and humanitarian objectives and our department managers set risk management targets accordingly. Depending on their specific characteristics, we determine whether to avoid, accept, reduce, or transfer each risk while also conducting appropriate risk mitigation activities. The executive officer in charge of human resources and general affairs reviews the progress of these activities on an annual basis, and our president and representative director outlines policies for the following year based on the results of these reviews. These policies are then implemented by all departments.