Mitsubishi Logisnext : "SDGs Report 2021" has been posted.

Mitsubishi Logisnext Co., Ltd.

Society

Environment

Mitsubishi Logisnext

Governance

SDGs Report 2021

About Mitsubishi Logisnext / Message from Management

Committed to business practices that contribute to the sustainable development of the planet and society at large

Continuing to strengthen our sustainability management

At the Mitsubishi Logisnext Group, we have long committed to managing our business with a strong focus on sustainability in keeping with ourcorporate philosophy of "moving the world forward as the leading provider of innovative logistics and material handling solutions." In fiscal 2020, in order to clearly demonstrate our management posture both inside and outside the company, we formulated policies for supporting the objectives of the sustainable development goals (SDGs, p. 2). Through this initiative, we identified 14 material issues which we are prioritizing as part of our effort to contribute to the emergence of a society committed to sustainable development (p. 3).

Furthermore, in fiscal 2021, we established our Sustainability Council to oversee our Group's initiatives to achieve each material

Takashi Kubo

President

objective, and we are working to develop a promotion system (p. 3) to enhance the effectiveness of these initiatives. In addition, our medium-term management plan "Logisnext SolutionS 2023," which is currently being implemented, advocates that, as one of our critical challenges, we contribute to the achievement of the SDGs through our business operations.

The challenge of carbon neutrality

The movement to achieve carbon neutrality is accelerating around the world against the backdrop of climate change.

We regard this trend not as a risk but as an opportunity to expand our business; as a result, we intend to promote proactive initiatives in support of this trend. In December 2021, we clarified our policy on carbon neutrality and adopted specific targets for the Group as a whole: to reduce CO2 emissions by 40% relative to fiscal 2017 levels by 2030; and to achieve Net Zero by 2040. Going forward, our entire Group will continue to take on the challenge of meeting these goals while fully exploiting the technologies and knowledge we have cultivated.

As a comprehensive manufacturer of logistics equipment, we provide a variety of hardware and software logistics solutions that have already contributed to energy conservation in a variety of settings. I am confident, however, that our Group has the potential to contribute even more solutions to environmental and social challenges.

FX engine-powered forklift

For example, prior to the merger of our four member companies, each company had been developing its own electric forklift technology. Nippon Yusoki, in particular, had accumulated a substantial amount of technology as a Japanese pioneer in this field. By pursuing further business integration and integrating the proprietary technologies and unique expertise of each member company, we aim to develop as a corporate group with a strong presence that can make a substantial contribution to global sustainability.

As a comprehensive manufacturer of logistics equipment, we provide forklift trucks, logistics systems, and port cargo handling systems. We support the logistics industry around the world by providing our customers with optimal logistics solutions in both hardware and software form.

About Mitsubishi Logisnext

ALESIS electric forkliftPLATTER Auto laser-guided AGF

Editorial policy:

We have issued this report to clarify to all stakeholders our efforts to support the objectives of the SDGs.

Target period:

This report spans the period from April 1, 2020, to October 31, 2021. Some articles are continuations of previously published material.

Organizational scope: This report covers Mitsubishi Logisnext Co., Ltd., but some articles make reference to other group companies.

Principles

Corporate Philosophy

Moving the world forward as the leading provider of innovative logistics and material handling solutions

Policies related to the SDGs

As a comprehensive manufacturer of logistics equipment that supports logistics operations around the world, we support the objectives of the SDGs advocated by the United Nations, offer solutions to societal issues through our business operations, and contribute to the sustainable development of the planet and society at large while helping to build a better future.

1. Conservation of the global environment

We will strive to protect the environment with a global perspective.

2. Development of local communities

We will establish good relationships with stakeholders, offer solutions to societal issues through our business operations, and contribute to the continuous development of local communities.

3. Human resource development

We will respect the human rights, individuality, and creativity of each and every employee, provide a rewarding work environment, support personal growth, and develop personnel who are capable of supporting our global society.

4. Strengthening corporate governance

We will implement an effective corporate governance system to ensure fair and honest business practices while fulfilling our social commitments as a good corporate citizen.

Medium-term management plan

Logisnext SolutionS 2023

We have formulated a medium-term management plan titled "Logisnext SolutionS 2023" that embodies three basic strategies in keeping with our corporate philosophy.

Extending from fiscal 2021 through fiscal 2023, this initiative represents the first Medium-term management plan we have implemented since our merger.

We have therefore positioned it as an extremely important platform on which our company can take further steps forward.

1

Build up Business Resilience

Strengthen the existing business

In addition to increasing both sales and profits in all territories, we will strengthen our ability to withstand major economic fluctuations by reorganizing our businesses and reducing fixed costs.

Improve variable and fixed cost

In addition to reducing procurement and transportation costs, we will promote comprehensive cost reductions by producing parts in-house and re-examining labor costs.

2

Accelerate Growth Strategy

Expand our solutions portfolio to meet the growing market requirements

In addition to providing manned forklifts, we have expanded our offerings to include solutions to our customers' logistics challenges in terms of both hardware and software. This approach responds to specific needs in the areas of automation and unmanned vehicles, with a special focus on AGVs/AGFs.

Improve our profitability via enhancements to the distribution networks

We are maximizing the benefits of consolidation by devising regional strategies for Japan, the Americas, Europe, China, and Asia and the Pacific.

Grow market share with an expanded product and service portfolio

Through collaboration with Mitsubishi Heavy Industries, Ltd., we have implemented rapid development of products and technologies.

Further develop our global and regional branding strategies

Utilize "Logisnext" brand and improve brand awareness for all of our brands

Taking advantage of the strengths of our category brands*, we aim to raise awareness of Logisnext as a comprehensive manufacturer of logistics solutions.

Create a new corporate culture under "Logisnext"

We will strengthen the sense of unity and the organizational strength of the entire company by focusing on the development of our Group's human resources. As the driving force behind our sustainable growth, this approach will lead to the strengthening of our corporate culture. We intend to contribute to the achievement of the SDGs while enhancing our corporate value and contributing to the emergence of a society committed to sustainability.

* Mitsubishi Forklift Trucks, Nichiyu Electric Forklift Trucks, Nichiyu Logistics Systems, TCM

Forklift Trucks, TCM Specialized Transport Vehicles, and UniCarriers Forklift Trucks

Contributing to Achievement of the SDGsIdentifying Material Issues

Establishment of Our Sustainability System

The sustainable development goals (SDGs) are international development goals that have been identified for achievement by the target year of 2030. These are universal goals that apply equally to all nations.

They include 17 goals comprising 169 targets for a sustainable, diverse and inclusive world.

Through our business operations, we are helping to achieve the objectives of the SDGs.

Our Priority SDGs

We have identified eight material items of particular relevance to our circumstances.

We have identified 14 material issues in consideration of their relevance to our business and their influence on and interest to our stakeholders.

For each material issue, we have set key performance indicators (KPIs) by which we can evaluate and publicize our performance at the end of each fiscal year. However, we will also introduce initiatives during the period that are difficult to evaluate with KPIs, such as R&D and product-related initiatives.

Issues of Material Interest to Our Group

Environmental issuesSocietal issuesGovernance issues

Stakeholder interest and impact

Providing environment-	Pursuit of customer
friendly products	satisfaction
Reducing environmental	Ensuring product quality
load	and safety
Recycling /	Supply chain management
Remanufacturing	Ensuring diversity of
(Product recycling)	human resources
Human resource
Corporate governance	development
Compliance	Job satisfaction and
Risk management	labor productivity
Contributing to society
and local communities
Occupational health and
safety

In order to implement our corporate philosophy of "moving the world forward as the leading provider of innovative logistics and material handling solutions," we believe it is necessary to achieve growth while simultaneously contributing resolutions to various environmental and societal issues.

In December 2021, we established our Sustainability Council with the aim of enabling management to oversee sustainability initiatives for the entire company, including challenges that span different departments, which will lead to highly effective initiatives through intensive discussions.

Relevance to our business

The main roles of the Sustainability Council are to identify material issues, approve policies and responses to these issues, formulate company-wide sustainability initiatives, implement and adhere to initiatives, and report to the Board of Directors. To supplement the three regular meetings held each year, extraordinary meetings are held as necessary.

Under the Sustainability Council, subcommittees are established to handle efforts to address each material issue. Each subcommittee has one individual in a position of responsibility as well as a responsible organization, and the relevant departments serve as the membership.

Policies and targets are adopted for each material issue and each subcommittee, and relevant initiatives are promoted. (A diagram of this system is presented on the next page.)

Diagram of the Sustainability System

About	Message from	Environmental	Societal	Governance	Summary of	Corporate
Mitsubishi Logisnext	Management	Issues	Issues	Issues	Activities	Profile
Board of Directors

reports

directs and advises

Sustainability Council

deliberates, reports and follows-up

Secretariat

Subcommittees

PoliciesMaterial IssuesField of ActivitySubcommitteeDigital Transformation

Environmental Preservation

Climate change

Carbon Neutrality

Committee

Environmental initiatives / EMS

Environmental Management Committee

Quality assurance /

QMS

Quality SubcommitteeDevelopment of Local Communities

Product development

Product Development

Subcommittee

Sales / Service

(Japan)

Domestic Sales and Marketing

Subcommittee

Sales / Service (Outside Japan)

Overseas Business

Subcommittee

SCM

CSR Procurement

SubcommitteeDevelopment of Human Resources

• • Ensuring diversity of human resources

• • Human resource development

• • Job satisfaction and labor productivity

• • Occupational health and safety

Ensuring personnel diversity / human resource development / environmental improvement

Human Resource

Development Subcommittee

Strengthening of Corporate Governance

• • Corporate governance

• • Compliance

• • Risk managementImproving the sophistication of corporate governance

Corporate Governance

Subcommittee

Digital Transformation Subcommittee (Digital Transformation Team [Executive in charge: president; Organization in charge: Corporate Strategy and Planning Office])Communication & Dialogue

External

Public Relations & SR

IR

Investor Relations Subcommittee (Executive in charge: CFO; Organization in charge: Corporate Finance Planning Division)Public Relations Subcommittee (Executive in charge: Head of Administration Headquarters; Organization in charge: General Affairs Division)