Sustainability

Policy & Materiality

Basic Policy
Five Material Issues
Process for Identifying Materiality
Sustainability Management Systems

Kitamura Holdings Group Basic Sustainability Policy

We would like to bring about a type of society where all persons can be satisfied to their hearts’ content. In this way, we help people to create important “moments,” “memories,” and “recollections” through photographs and videos. To that end, it goes without saying that our employees and all of the stakeholders involved in the Company’ s operations is the first and most important factor. Our aim is to create an environment where each person’ s individuality and values are respected, and people can feel happy by working to ensure the growth of the company, which maintains the aim of remaining close to people’ s hearts.

At the same time, we aim to create an impression of the beauty and diversity of nature, as well as living creatures around the world through photographs and videos, and to share that sense of excitement. In addition, we believe that such an impression will lead to the fostering and understanding of environmental conservation awareness. The Group will take the initiative in reducing our CO2 emissions and contributing to a sound material-cycle society through business focuses such as reuse and repair.

Five Material Issues

We have set the following five materialities as important sustainability items for the Group.
These items represent our long-term strategy itself and providing value to the social environment is a long-term goal for us as well, and we believe that this will eventually lead to further growth.

Material Issues List

Material Issues	Commitment	KPIs	2025/3 Results	2026/3 Results	2026/9 Targets	Major Kitamura Holdings Group Initiatives
Climate change countermeasures and implementation of a recycling mentality	・Reduce greenhouse gas emissions (Scope1&2) by a net 60%, by the fiscal year ending March 31, 2030 compared to the fiscal year ended March 31, 2020; achieve net zero emissions by the fiscal year ending March 31, 2050 ・Reduce greenhouse gas emissions (Scope3) by a net 25%, by the fiscal year ending March 31, 2030 compared to the fiscal year ended March 31, 2023 ・Realize a sound material-cycle society	・Greenhouse gas emissions ・Number of resale products, etc. sold ・Number of camera and smartphone repairs	・Achieved a 57% reduction in greenhouse gas emissions (Scope1&2) by switching to renewable energy sources, etc. in stores ・Set a medium-term reduction target for Scope 3 emissions (25% reduction from benchmark year FY22 by the fiscal year ending March 31, 2030)	・Continuing efforts to reduce Scope 2, mainly by switching our sites to renewable energy Reduction achieved: ▲66.4% *Reduction rate compared to the base year ・Promoting measurement using primary data for Scope 3 ・Sales numbers of reused products and actual numbers of camera and smartphone repairs Used camera sales: 109% year-on-year Camera repairs: 110% year-on-year Smartphone repairs: 97% year-on-year	・Continue efforts to reduce Scope 2 emissions, with a focus on the transition to renewable energy at our facilities ・Promote the measurement of Scope 3 emissions using primary data ・Disclose the status of implementation of reduction measures ・Maximize sales volume of reused products and the number of camera and smartphone repairs ・Contribute to local communities and a circular economy through the expansion of “Jimoti Spots”	・Greenhouse gas emission reduction Introduce LED lighting and energy-saving production equipment, switch to renewable energy sources, introduce solar power generation, etc. ・Measures for creating a sound material-cycle society - Expand purchase and sales of resale products (used cameras, used watches, etc.) - Use resources effectively by repairing cameras and smartphones
Contribution to a happy and prosperous society through the enhancement of photo life	・Promote the enrichment of the photo-lives of customers ・Contribute to the creation of a happier, more prosperous society by helping people enjoy even more profound memories, fostering greater preservation of nature, and deepening interpersonal communications	・Set our unique KPI to track the number of times our customers and their acquaintances are moved by the products and services of the Group, as well as the sales volume of photographic devices to achieve them - Shots (number of photographs or image data) - Cameras (total sales volume)	・Formulated and started disclosing our unique KPI for the Group: Shots and Cameras ・Sponsored “EARTH MART” at the Expo 2025, Osaka, Kansai, Japan, and planned a public photo exhibition	・Continuously tracking our Group’s proprietary KPIs and promoting initiatives aimed at maximizing these metrics ・Sponsored the “EARTHMART” exhibition at the Osaka-Kansai Expo and held a public photography contest ・Set up photo galleries in our stores and hosted events and exhibitions to enrich customers’ photographic experiences	・Continuously track our Group’s proprietary KPIs and promote initiatives aimed at maximizing these metrics ・Expand our “Photo Life” offerings, such as by featuring photo galleries in our stores ・Promote “Photo & Life” through support for student photography contests and participation in photography events	・Provide support for customers’ photo-lives by providing services such as restoring photographs lost in disasters
Creation of a rewarding work environment	・Create a rewarding work environment where employees can find fulfillment in their work	・Under review, toward KPI formulation	・Continued to conduct employee engagement surveys on a Group company basis, and developed response measures based on the verification and analysis of survey results ・Hosted a business planning contest open to all employees		・Continue developing KPI metrics ・Evaluate and continue conducting employee engagement surveys; evaluate the implementation of specific measures at each company	・Measures for improving employee engagement ・Reassign personnel to various positions and work types through our wide range of business fields
Promotion of diversity and inclusion	・Increase personnel diversity to promote innovation ・Promote the advancement of female employees, support the achievement of a good balance between work and childcare, and promote the use of parental leave for male employees ・Foster a corporate culture in which everyone can thrive, regardless of their gender or any physical or mental ability	・Ratio of female managers and supervisors ・Ratio of parental leave taken by male employees ・Eliminate the wage gap between male and female employees ・Ratio of female directors	・Implemented human rights due diligence ・Identified human rights risks and disclosed evaluation results ・Developed a supplier code of conduct		・Ongoing human rights due diligence efforts ・Setting targets for each KPI metric and continuing to implement specific measures across our Group companies	・Promote the advancement of female employees ・Actively hire talent with specialized knowledge ・Conduct human rights training
Governance & Compliance for Sustainable Growth	・Ensure transparency of the Board of Directors and promote diversity in its composition ・Establish and further reinforce our corporate governance system ・Achieve thorough understanding of the Group’s Mission, Vision, and Values, and foster an ethical corporate culture	・Results of the effectiveness evaluation of the Board of Directors ・Ratio of female directors	・Appointed at least one-third of directors as independent outside directors ・Established and operated a nominating committee and a compensation committee that are composed of a majority of independent outside directors ・Conduct compliance training for all employees			・Evaluate the effectiveness of the Board of Directors and carry out improvement activities to address issues ・Continue awareness-raising activities such as human rights training and compliance training, and inform employees of the whistleblowing system ・Reinforce data privacy and security

Climate change countermeasures and implementation of a recycling mentality

We are concerned about what the Group can do now to leave future generations with a planet that is rich in nature and capable of sustaining life. We will contribute to the creation of a sound material-cycle society by reducing our CO2 emissions, as well as expanding the resale business throughout all group business activities.

Climate change initiatives and response to TCFD Recommendations ESG Data(Environment)

Contribution to a happy and prosperous society through the enhancement of photo life

We believe that the photo products and services we provide as our core business can help to create a happier and more prosperous society, by enabling our customers to reflect on and communicate with their families and others around them.
The Group is working to provide photos that were lost in the Great East Japan Earthquake and other disasters through the restoration of data that has been entrusted to us. Through photography, we support our customers by helping them cherish their precious memories. In addition, this also provides an opportunity to deepen the world's understanding of rotection of the natural environment, by allowing people to appreciate the beauty of the Earth and nature through photography.

ESG Data（Social）

Creation of a rewarding work environment

In order for our customers to feel happiness, we believe that it is important for members of our own group to also be happy. Creating a rewarding work environment where employees can find fulfillment in their work is essential to the growth of our Group. We are committed to being a company where employees can take pride in their work, and to creating an environment where they can work with peace of mind while easily taking on new challenges and growing.

Promotion of diversity and inclusion

Research has shown that innovation is essential for growth, and an organization that has an abundant diversity of human resources is suitable for creating such innovation. Our goal is to be a group in which a wide range of people can play an active role, not only in terms of gender, but also in terms of life events such as parenting and caregiving, age, nationality, and disability status. As a first step, we will actively promote the advancement of female employees, and achieve a 100% ratio of parental leave taken by male employees.

ESG Data(Social)

Governance & Compliance for Sustainable Growth

An appropriate governance system is the base for achieving sustainable growth. We also recognize that compliance is one of the most important items in company management, and as a business operator that handles a large amount of xtremely personal information such as photographs and images, we are engaged in maximum efforts to ensure information security. We are striving to secure a system that provides our stakeholders with peace of mind.

ESG Data(Governance)

Process for Identifying Materiality

Kitamura Holdings Group aims to create a sustainable society and increase corporate value through its business activities.
To achieve this, we identified social issues that have a large impact on both our company and society through the following steps, and after exchanging opinions with all stakeholders such as employees and experts, we set five priority issues (materialities).

STEP1

Selection of social issues

Kitamura Holdings Group held SDGs workshops to deepen employee understanding and to identify social issues.
In setting social issues, we have incorporated and organized global issues such as SDGs (Sustainable Development Goals) along with the GRI Standards of International Guidelines.

SGDs workshop scenes (conducted in November 2021)

STEP2

Evaluation of issues and determination of priorities

We discussed the issues by formulating the company's priority issues (materialities), by determining evaluation viewpoints for such social issues as "social needs" and "degrees of relevance to business", and by using an evaluation axis to determine the kind of society that can become part of our company's materialities.
In addition, we've determined priorities after understanding and reflecting "expectations from society" by conducting interviews with stakeholders such as employees and outside experts.

STEP3

Determining priority issues (materialities)

It was decided after the discussion of members of the board of directors to receive advice from experts from the three perspectives: E (environment), S (society), and G (governance). These are regarding content formulated as priority issues (materialities) by conducting stakeholder dialogues.

Hearings with experts (conducted in November 2021)

Stakeholder Dialogue Participants

Ken Shibusawa Chief Executive Officer, Shibusawa and Company, Inc.

In 2001 Shibusawa and Company Co., Ltd. was founded and became the representative director. Commons Co., Ltd. (currently, Commons Investment Trust Co., Ltd.) was founded in 2007, and became chairman of the board in 2008. The Kishida government's "New Capitalism Realization Conference" member, UNDP (United Nations Development Program) SDG Impact Steering Group member, University of Tokyo President's Office Advisor, Brunswick Group Senior Advisor, etc.

In 2001 Shibusawa and Company Co., Ltd. was founded and became the representative director. Commons Co., Ltd. (currently, Commons Investment Trust Co., Ltd.) was founded in 2007, and became chairman of the board in 2008. The Kishida government's "New Capitalism Realization Conference" member, UNDP (United Nations Development Program) SDG Impact Steering Group member, University of Tokyo President's Office Advisor, Brunswick Group Senior Advisor, etc.
Ken Ito Project Assistant Professor, Graduate School of Media and Governance, Keio University

Research on social impact assessment, 2015 Ministry of Economy, Trade and Industry "Social Impact Bond Study Group in the Healthcare Field" Chairman, Cabinet Office "Mutual Aid Society Creation Council Social Impact Assessment Study WG", in addition to efforts to promote the spread of social impact assessment, social impact bonds, and social investment in Japan, such as serving as chief examiner.

Research on social impact assessment, 2015 Ministry of Economy, Trade and Industry "Social Impact Bond Study Group in the Healthcare Field" Chairman, Cabinet Office "Mutual Aid Society Creation Council Social Impact Assessment Study WG", in addition to efforts to promote the spread of social impact assessment, social impact bonds, and social investment in Japan, such as serving as chief examiner.
Akira Sakano Representative director

Participated in the NPO Zero Waste Academy, which is responsible for the waste policy of Kamikatsu Town, Tokushima Prefecture, which made Japan's first "Zero Waste Declaration". Set to co-chair the 2019 World Economic Forum Annual Meeting (commonly referred to as the Davos Conference) alongside Microsoft CEOs. From 2020, working on the formation and development of a model for a sound material-cycle society at Zero Waste Japan.

Participated in the NPO Zero Waste Academy, which is responsible for the waste policy of Kamikatsu Town, Tokushima Prefecture, which made Japan's first "Zero Waste Declaration". Set to co-chair the 2019 World Economic Forum Annual Meeting (commonly referred to as the Davos Conference) alongside Microsoft CEOs. From 2020, working on the formation and development of a model for a sound material-cycle society at Zero Waste Japan.

※The biographies of the participating members are current as of the date of the stakeholder dialogues.

Sustainability Management Systems

In January 2022, Kitamura Holdings ( “KHD” ) newly established the “Sustainability Committee” composed of directors, as well as the President’s Office as a promotion organization to further strengthen and promote sustainable activities.

The Sustainability Committee, chaired by Kazuhiro Fukumoto, Representative, President and Chief Executive Officer of the Company, reviews progress toward our basic sustainability policies and goals, discusses and makes decisions regarding action plans, and promotes the expansion of efforts to address the environmental and social issues that are required of a corporation.
The activity plans and the results of these efforts are reported to the Board of Directors and the Management Meeting of KHD at least once a year, and are reflected in our management plans and business activities, thus providing a system of supervision.
We will carry out the PDCA cycle in line with this system, and promote sustainability activities.

Management Message Sustainability Initiatives Response to TCFD Recommendations Respect for Human Rights ESG Data External Evaluations