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ESG Disclosure Guideline Indexes

IBC "Stakeholder Capitalism Metrics" Index

In January 2022, We endorsed the Stakeholder Capitalism Metrics, a set of stakeholder capitalism indicators developed mainly by the International Business Council (IBC) of the World Economic Forum (WEF). The guidelines provide a package of universal and comparable disclosure items that can be reported regardless of industry and region. The guidelines serve as an index of non-financial information disclosure and a framework for disclosure and reporting of such data, comprised of 21 core indexes centering on four pillars: Governance, Planet, People, and Prosperity, and 34 expansion indexes. We are working to expand our information disclosure on sustainability by using the guidelines.
At present, the disclosure of this index focuses on metrics of high importance to our company, but we plan to expand the scope of disclosure in the future.

Principles of Governance

Theme Requirement Requirement Details Place of Publication Supplementary
Explanation
Governing purpose

Setting purpose

Core Metrics

 The company's stated purpose, as the expression of the means by which a business proposes solutions to economic, environmental and social issues. Corporate purpose should create value for all stakeholders, including shareholders.  

Purpose-led management

Expanded Metrics

 How the company's stated purpose is embedded in company strategies, policies and goals.  
Quality of governing body

Governance body composition

Core Metrics

 Composition of the highest governance body and its committees by: competencies relating to economic, environmental and social topics; executive or non-executive; independence; tenure on the governance body; number of each individual's other significant positions and commitments, and the nature of the commitments; gender; membership of under-represented social groups; stakeholder representation.  

Progress against strategic milestones

Expanded Metrics

 Disclosure of the material strategic economic, environmental and social milestones expected to be achieved in the following year, such milestones achieved from the previous year, and how those milestones are expected to or have contributed to long-term value  

Remuneration

Expanded Metrics
  • How performance criteria in the remuneration policies relate to the highest governance body's and senior executives' objectives for economic, environmental and social topics, as connected to the company's stated purpose, strategy and long-term value.
  • Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
    - Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses and deferred or vested shares
    - Sign-on bonuses or recruitment incentive payments
    - Termination payments
    - Clawbacks
    - Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives and all other employees
 Remuneration  
Stakeholder engagement

Material issues impacting stakeholders

Core Metrics

 A list of the topics that are material to key stakeholders and  the company, how the topics were identified and how the stakeholders were engaged.  
Ethical behaviour

Anti-corruption

Core Metrics
  • Total percentage of governance body members, employees and business partners who have received training on the organization's anti-corruption policies and procedures, broken down by region.
    a) Total number and nature of incidents of corruption confirmed during the current year, but related to previous years; and
    b) Total number and nature of incidents of corruption confirmed during the current year, related to this year.
  • Discussion of initiatives and stakeholder engagement to
    improve the broader operating environment and culture, in
    order to combat corruption.
  

Protected ethics advice and reporting mechanisms

Core Metrics

 A description of internal and external mechanisms for:
  • Seeking advice about ethical and lawful behaviour and organizational integrity; and
  • Reporting concerns about unethical or unlawful behaviour and lack of organizational integrity.
 Compliance  

Monetary losses from unethical behaviour

Expanded Metrics

 Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behaviour, market manipulation, malpractice or violations of other related industry laws or regulations Sustainability Data (Governance Data)  
Risk and opportunity oversigh

Integrating risk and opportunity into business process

Core Metrics

 Company risk factor and opportunity disclosures that clearly identify the principal material risks and opportunities facing the company specifically (as opposed to generic sector risks), the company appetite in respect of these risks, how these risks and opportunities have moved over time and the response to those changes. These opportunities and risks should integrate material economic, environmental and social issues, including climate change and data stewardship.  

Economic, environmental and social topics in capital allocation framework

Expanded Metrics

 How the highest governance body considers economic, environmental and social issues when overseeing major capital allocation decisions, such as expenditures, acquisitions and divestments. Corporate Governance Organizational Structure  

Planet

Theme Requirement Requirement Details Place of Publication Supplementary
Explanation
Climate change

Greenhouse gas (GHG) emissions

Core Metrics

 For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions.
Estimate and report material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate.		 Sustainability Data (Environmental Data)  

TCFD implementation

Core Metrics

 Fully implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). If necessary, disclose a timeline of at most three years for full implementation. Disclose whether you have set, or have committed to set, GHG emissions targets that are in line with the goals of the Paris Agreement - to limit global warming to well below 2°C above pre industrial levels and pursue efforts to limit warming to 1.5°C - and to achieve net-zero emissions before 2050. Task Force on Climate-related Financial Disclosures (TCFD)  

Paris-aligned GHG emissions targets

Expanded Metrics

 Define and report progress against time-bound science-based GHG emissions targets that are in line with the goals of the Paris Agreement - to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. This should include defining a date before 2050 by which you will achieve net-zero greenhouse gas emissions, and interim reduction targets based on the methodologies provided by the Science Based Targets initiative, if applicable.
If an alternative approach is taken, disclose the methodology used
to calculate the targets and the basis on which they deliver on the
goals of the Paris Agreement.		  

Impact of GHG emissions

Expanded Metrics

 Report wherever material along the value chain (GHG Protocol Scope 1, 2 & 3) the valued impact of greenhouse gas emissions.
Disclose the estimate of the societal cost of carbon used and the
source or basis for this estimate.		 Sustainability Data (Environmental Data)  
Nature loss

Land use and ecological sensitivity

Core Metrics

 Report the number and area (in hectares) of sites owned, leased or managed in or adjacent to protected areas and/or key biodiversity areas (KBA). - We have not disclosed the information yet, but in light of the actions by the Taskforce on Nature-related Financial Disclosures (TNFD), we are considering identifying and disclosing activities in protected areas or important areas that are key to biodiversity conservation.
One of the initiatives focus in our Sustainability Issues (materiality) is the "Protection of biodiversity". As examples of the actions to protect biodiversity, we have participated in the "30 by 30 Alliance for Biodiversity," which aims to effectively conserve more than 30% of the land and sea as healthy ecosystems by 2030. Also, we are gradually expanding to install microplastic (particles of 5 mm or less) collection devices on our vessels.
Freshwater availability

Water consumption and withdrawal in water-stressed areas

Core Metrics

 Report for operations where material: megalitres of water withdrawn, megalitres of water consumed and the percentage of each in regions with high or extremely high baseline water stress, according to WRI Aqueduct water risk atlas tool.
Estimate and report the same information for the full value chain
(upstream and downstream) where appropriate.		 Sustainability Data (Environmental Data)  
Air pollution

Air pollution

Expanded Metrics

 Report wherever material along the value chain: nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter and other significant air emissions.
Wherever possible estimate the proportion of specified emissions that occur in or adjacent to urban/densely populated areas		 Sustainability Data (Environmental Data)  

People

Theme Requirement Requirement Details Place of Publication Supplementary
Explanation
Dignity and equality

Diversity and inclusion (%)

Core Metrics

 Percentage of employees per employee category, by age group, gender and other indicators of diversity (e.g. ethnicity). Sustainability Data (Social Data)  

Pay equality (%)

Core Metrics

 Ratio of the basic salary and remuneration for each employee category by significant locations of operation for priority areas of equality: women to men, minor to major ethnic groups, and other relevant equality areas We do not currently disclose basic salary and remuneration for each　employee　category by significant locations of operation for priority areas: women to men, minor to major ethnic groups, and other relevant equality areas.
The salary system in our company adopts a qualification grade system, and there is no gender or regional pay gap within the same qualification grade.

Wage level (%)

Core Metrics

 Ratios of standard entry level wage by gender compared to local minimum wage.
Ratio of the annual total compensation of the CEO to the median of the annual total compensation of all its employees, except the CEO.		 The salary system in our company adopts a qualification grade system, and there is no gender or regional pay gap within the same qualification grade.

Risk for incidents of child, forced or compulsory labour

Core Metrics

 An explanation of the operations and suppliers considered to have significant risk for incidents of child labour, forced or compulsory labour. Such risks could emerge in relation to:
a) type of operation (such as manufacturing plant) and type of supplier; and
b) countries or geographic areas with operations and suppliers considered at risk.		 In consideration of initiatives in our value chain, when selecting a ship recycling yard to dismantle an end-of-life ship, we actually conduct on-site interviews and inspections of recycling yards and confirm that they make sufficient efforts to ensure human rights such as eliminating child labor and forced labor.

Discrimination and harassment incidents (#) and the total amount of monetary losses ($)

Expanded Metrics

 Number of discrimination and harassment incidents, status of the incidents and actions taken, and the total amount of monetary losses as a result of legal proceedings associated with:
a) law violations; and
b) employment discrimination.		 Sustainability Data (Social Data)  

Freedom of association and collective bargaining at risk (%)

Expanded Metrics
  • Percentage of active workforce covered under collective bargaining agreements.
  • An explanation of the assessment performed on suppliers for which the right to freedom of association and collective bargaining is at risk, including measures taken by the organization to address these risks.
 Sustainability Data (Social Data)  
Health and well‑being

Health and safety (%)

Core Metrics

 The number and rate of fatalities as a result of work-related injury;
high-consequence work-related injuries (excluding fatalities); recordable work-related injuries; main types of work-related injury; and the number of hours worked.
An explanation of how the organization facilitates workers' access to non-occupational medical and healthcare services, and the scope of access provided for employees and workers.		  
Skills for the future

Training provided (#, $)

Core Metrics

 Average hours of training per person that the organization's
employees have undertaken during the reporting period, by
gender and employee category (total number of hours of training
provided to employees divided by the number of employees).
Average training and development expenditure per full time
employee (total cost of training provided to employees divided by
the number of employees).		 Sustainability Data (Social Data)  

Prosperity

Theme Requirement Requirement Details Place of Publication Supplementary
Explanation
Employment and
wealth generation

Absolute number and rate of employment

Core Metrics
  • Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity and region.
  • Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region.
 Sustainability Data (Social Data)  

Economic contribution

Core Metrics
  • Direct economic value generated and distributed (EVG&D), on an accruals basis, covering the basic components for the organization's global operations, ideally split out by:
    - Revenues
    - Operating costs
    - Employee wages and benefits
    - Payments to providers of capital
    - Payments to government
    - Community investment
  • Financial assistance received from the government: total monetary value of financial assistance received by the organization from any government during the reporting period.
 Annual Securities Report  

Financial investment contribution

Core Metrics
  • Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company's investment strategy.
  • Share buybacks plus dividend payments, supported by narrative to describe the company's strategy for returns of capital to shareholders
  

Infrastructure investments and services supported

Expanded Metrics

 Qualitative disclosure to describe the below components:
  • Extent of development of significant infrastructure investments and services supported.
  • Current or expected impacts on communities and local economies, including positive and negative impacts where relevant.
  • Whether these investments and services are commercial, in-kind or pro bono engagements.
  
Innovation of better
products and services

Total R&D expenses ($)

Core Metrics

 Total costs related to research and development. Annual Securities Report p.50 6 R&D Activities  
Community and
social vitality

Total tax paid

Core Metrics

 The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer-paid payroll taxes, and other taxes that constitute costs to the company, by category of taxes.