Mitsubishi Materials : Summary of Explanation and Q&A on ESG Meeting (December, 2021)

Mitsubishi Materials Corporation Holds ESG meeting: Implementing Various Initiatives to Build a Prosperous, Recycling-Oriented and Decarbonized Society

Mitsubishi Materials Corporation ESG meeting

Naoki Ono ("Ono," hereafter): Hello everyone, I am Naoki Ono, Chief Executive Officer of Mitsubishi Materials Corporation. Thank you for attending our ESG meeting today.

This is the second ESG meeting after the first one held this March, and I would also like to describe the progress we have made since then. I also hope that you can gain a deeper understanding through a question and answer session. I would like to start by giving a brief overview of the main parts.

Our Corporate Philosophy and Vision

This slide describes the Mitsubishi Materials Group's Corporate Philosophy, Vision and Mission. Our Corporate Philosophy is "For People, Society and the Earth", and if we were to add some words that reflect the recent trend of describing an entity's raison d'être, I think it would be "For People, Society and the Earth, helping to solve social issues through our own business activities."

Our Mission is "Contribute to building a prosperous, recycling-oriented and decarbonized society". Each item also describes how we plan to achieve those qualities in society.

As shown, we will achieve this mission by providing various products and materials, predominantly copper, by providing recyclable products and advanced technology-based waste recycling, and by developing and utilizing renewable energies while thoroughly ensuring considerations of environmental impact in manufacturing.

Global Sustainability Trends

These are the latest trends associated with ESG. As I am sure you are all familiar with these topics, I will spare you the explanation.

Value Creation Process

This is our Value Creation Process. This diagram shows the material issues, what we regard as priority issues, on the left. For these material issues, we deliver value by providing the products and services shown on the right through the activities shown in the center circle, and this translates to our Mission.

As today is a meeting on ESG, the items on the left are displayed as small circles, and the material issues highlighted with red borders represent major themes.

There were various layers to the process of identifying these material issues, including so-calledmulti-stakeholders, shareholders, investors, local residents, Group employees and Mitsubishi Materials itself. We utilized a process of considering which points pose priority issues for each layer and identified the priority issues by adding these together.

Today's Key Points

The information I would like to talk about today is organized from an ESG perspective and also in chronological terms. This is shown in detail on the slide, and in a moment, I will go over the initiatives we have implemented since the previous ESG meeting in particular. Those are the items in bold text in the red-framed area.

For example, looking at the "E" section, I can introduce several specific initiatives aimed at meeting our newly revised greenhouse gas emission reduction targets.

For the "S" section in the center row, I would like to give additional descriptions particularly about the enhancement of human capital, human rights initiatives, D & I, and so on.

For "G," or "Governance," as we have recently applied for listing in the Prime Market of the Tokyo Stock Exchange, I would like to share information about related revisions to the Corporate Governance Code, matters concerning our Basic Policy on Sustainability, and efforts to improve the Board of Directors in various ways.

That completes my description of the main parts. Now I would like to hand it over to Managing Executive Officer Nobuhiro Takayanagi.

Environment

Nobuhiro Takayanagi ("Takayanagi," hereafter): Hello, I will be speaking for this section of the meeting. First, let's look at the environment.