Maruichi Steel Tube : ＥＳＧ Ｒｅｐｏｒｔ（FY2021）

ESG Report

(FY2021)

Maruichi Steel Tube Ltd.

July 7, 2021

Contents

Editing Policy	• • • P.1
The Maruichi Steel Tube Group's Sustainability	• • • P.2
	Environment			Governance
	Environmental Policy	• • • P.5		Philosophy and Strategy	• • • P.25
	Reducing CO2 Emissions	• • • P.6		Medium-Term Management Plan	• • • P.26
	Balance of Materials in Business Activities	• • • P.9		Material Risk Factors	• • • P.26
	Initiatives for Environmental Conservation	• • • P.10		Corporate Governance Structure	• • • P.28
	Contribution to the Environment through Products	• • • P.11		Board of Directors	• • • P.28
	Environmental Management	• • • P.12		Directors' Compensation	• • • P.29
				BCP Initiatives	• • • P.30
	Social
	Stakeholder Engagement	• • • P.13
	Human Resources & Working Styles	• • • P.14
	Diversity and Inclusion	• • • P.15
	Human Resource System & Training System	• • • P.17
	Work-Life Balance & Welfare Program	• • • P.19
	Employee Engagement	• • • P.19
	Human Rights	• • • P.20
	Compliance	• • • P.21
	Labor Health and Safety	• • • P.22
	Supply Chain Management	• • • P.23
	Social Contribution Activities	• • • P.24

Editing Policy

This report has been prepared to achieve Maruichi Steel Tube's target vision and to categorize the status of materiality issues that increase the medium- and long-term corporate value from an ESG (Environment, Society, Governance) perspective, and to provide a reference to all stakeholders. Going forward, we will enhance the content and disclose information in a timely and appropriate manner. We look forward to fulfilling our accountability through opportunities for various dialogue with you all.

• Reporting period: April 1, 2020 to March 31, 2021
  (Some details include information from outside the reporting period)
• Scope of report: The Maruichi Steel Tube Ltd. (non-consolidated)
  (Some details include information from some Group companies. We are currently working on future coverage of the entire Maruichi Steel Tube Group, including each consolidated subsidiary.)
• Posted on the Internet: From April 2021 (FY2020) with plans to update in August each year.

Note. This report has been prepared for the purpose of providing information about Maruichi Steel Tube's business activities. Opinions and forecasts are based on judgements of the Company at the time of preparation and no assurance is given in relation to the accuracy of the information.

1

Maruichi Steel Tube's Sustainability

Management

Philosophy

Basic Policy on

Sustainability

Key Sustainability Challenges

(Material Issues)

Management Philosophy

1. As a leading steel tube company, our mission is to contribute to society by providing outstanding products and responding to the trust of customers.
2. We respect all stakeholders, including business partners, employees and shareholders based on respect for human rights.
3. We promote the creation of energy for growth and new values for the future by enhancing product reliability, technological capability, and sales capability by means of the wisdom, passion and action of each employee.
4. We will continue being an outstanding company filled with dreams that our employees feel worthy of entrusting their lives to.

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Basic Policy on Sustainability

Under the management philosophy of "contributing to society by responding to the trust of customers and placing a high value on all people, based on respect for humanity," the Maruichi Steel Tube Group aims to realize sustained growth through business activities that consider all stakeholders. In addition to the Group's own sustained growth, we engage in important issues (materiality) in accordance with the policies set out below and aim to increase corporate value in order to contribute to realizing sustainable societies.

Organizational Governance

The Maruichi Steel Tube Group respects the rights of shareholders and strives to ensure equitability and transparency of management while fulfilling our fiduciary responsibilities and providing accountability to our shareholders, led by our Board of Directors. At the same time, we position corporate governance as a critical management issue as we strive to achieve our management vision, and reinforce speedy and accurate decision-making as well as supervisory functions. In addition, in order to improve medium- and long-term corporate value and maintain sound management, we pursue the optimal corporate governance and engage in ongoing efforts for enhancement.

Consumer Issues

The Maruichi Steel Tube Group strives to provide safe, high- quality products to meet the needs of our customers, while bearing in mind the effect on end-users, and to respond with sincerity, swiftness and accuracy to the trust placed in us. The Group also endeavors to provide appropriate product information, and secure, maintain and enhance the satisfaction of all customers. We adhere to the word and spirit of the law of each country, and thoroughly protect the personal information of customers and all other people who are involved in our business activities.

The Environment

The Maruichi Steel Tube Group regards the fulfillment of social responsibility through legal compliance as fundamental, and contributes to the further protection of the global environment, in order to provide a livable environment for future generations. By providing products using iron, which is highly recyclable, the Group plays a part in supporting a recycling-oriented society, while production activities are structured to prevent environmental pollution such as air, water or soil pollution. In addition, the Group continually strives for better technology, to realize more efficient use of resources including energy, water and raw materials. The Group sets goals and targets related to these efforts and establishes management systems to engage in continuous improvement activities.

Labor Practices

The Maruichi Steel Tube Group works in accordance with the philosophy of "respect for humanity," to create companies brimming with dreams, in which diverse employees can engage in fair, decent and meaningful work, and to which they can entrust their lives. To this end, the Group facilitates a work-life balance suited to individual circumstances, and diverse and flexible working styles. Each and every employee is encouraged to develop his or her abilities under high health and safety standards, and we create a work environment that ensures the mental and physical health and safety of employees. The Group also establishes sound labor-management relations, with opportunities for dialogue with employee representatives.

Fair Operating Practices

The Maruichi Steel Tube Group acts with proper judgement and moderation in commercial transactions, neither giving nor receiving unfair profits, to prevent mistaken or dishonorable evaluation. Commercial transactions, regardless of whether they pertain to products or services, are carried out through proper processes, after fair comparison and evaluation of transaction details based on honest and legitimate negotiation. The Maruichi Steel Tube Group does not permit bribery, discontinues relationships with antisocial forces, and does not participate in corruption of any form.

Community Involvement and

Development

The Maruichi Steel Tube Group aspires to develop and grow together with various countries and local communities. The Group contributes through its business activities, by providing a stable supply of products to meet diverse needs in each country or region, thus supporting the construction and development of industry platforms. In addition, the Group also contributes to realizing rich societies, through the expansion of employment opportunities and the redistribution of profits through tax payments and the like. The Group pursues business sustainability, by considering ways to reduce the environmental and social burden of its business activities. Moreover, as a member of communities, the Group is conscious of the need to solve social issues. By actively taking part in activities that contribute to society, with awareness for resolving social issues as a member of local communities, the Group strives for proactive engagement with people in the same communities, sharing the same hopes and aspirations.

Human Rights

The Maruichi Steel Tube Group works to prevent any and all acts of human rights violations, including indirect involvement. The Group protects the human rights of all stakeholders, including people in a weak social position or crisis situation, regardless of individual attributes such as gender or nationality. Products are not supplied to, or purchased from, business entities that violate human rights, and measures are implemented to provide relief for people whose human rights have been violated.

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Key Sustainability Challenges (Material Issues)

Environment

Consideration for the environment

• Global environmental conservation
• Formation of a recycling-oriented society
• Biodiversity conservation
• Transition to environmentally-friendly products

S Human resources & working ocial stylesSocial Contribution Activities

Human Resources & Working Styles

• Diversity and inclusion
• HR management
• Recruiting policy
• Labor health and safety
• Business efficiency and productivity improvement

Social Contribution Activities

• Cooperation and support for cultural activities
• Promotion of sports
• Contribution to local communities
• Contribution to the global community

Governance

Corporate governance

• Ensuring fairness and transparency in management
• Swift and accurate decision-making and a stronger supervisory function
• Stronger internal controls
• BCP completion and renewal

4