Materiality | Sustainability | ITOHAM YONEKYU HD

１．Seven Materialities and Objectives

We established two new KPIs from FY2024: “frozen food sales” and “engagement score.”
The “frozen food sales” KPI is an indicator that measures the progress of initiatives that contribute to product development that addresses diverse lifestyles such as meals for convenience and for individual.
The “engagement score” KPI measures the progress of initiatives that contribute to improving employee job satisfaction.
Since FY2024, we have incorporated improvements in the engagement score into compensation for directors and officers, and we will work to raise this score across the Company.

Seven Materialities
*1 Each environmental data has been carefully reviewed and updated to the latest version.
*2 After reviewing the materiality initiatives, "Safe and reliable supply of food" has been redefined as "Pursuit of uncompromising flavor and high quality" (KPI for the number of sites certified by a third party for food safety has been also transferred).

２．KPI Progress

We have set KPIs (Targets) for FY2022 and are working on materiality initiatives.

KPIs (Targets)	Results (FY2022)	Results (FY2023)	Results (FY2024)
Frozen Food Sales FY2026 : 20.0 billion yen	15.3 billion yen	16.7 billion yen	17.8 billion yen
GHG emissions (CO2 equivalent)* 50% reduction from the FY2016 level by FY2030, net zero by 2050 FY2016 : 375,000 t ⇒ FY2030 : 187,000 t	3.3% decrease 363,000 t -CO2	5.0% decrease 357,000 t -CO2	12.7% decrease 327,000 t -CO2
Energy use (per unit)* 1% reduction each year, 3% reduction over 3 years, from FY2021 levels	2.5% decrease 9.55 GJ/t	1.8% decrease 9.62 GJ/t	8.2% decrease 9.79 GJ/t
Service water use (per unit)* 1% reduction each year, 3% reduction over 3 years, from FY2021 levels	3.5% decrease 16.9 ㎥/t	2.0% decrease 17.2 ㎥/t	0.8% decrease 17.4 ㎥/t
Waste emissions (per unit)* 1% reduction each year, 3% reduction over 3 years, from FY2021 levels	3.4% decrease 90.9 kg/t	9.6% decrease 85.1 kg/t	6.1% decrease 88.5 kg/t
Engagement Score FY2026 : 60% or over	52.0%	-	48.0%
Percentage of women in management positions *Domestic subsidiaries FY2030 : 10%	5.4%	6.0%	7.1%
Percentage of women in chief positions *Domestic subsidiaries FY2030 : 20%	11.5%	11.8%	14.0%
Paid leave usage rate (per capita per year) FY2025 : 70%	69.7%	70.9%	67.9%
Animal waste recycling rate Maintain 100%	100.0%	100.0%	100.0%
Sales of healthcare business FY2025 : AUD 105 million	AUD 54 million	AUD 97 million	AUD 104 million
Supplier survey coverage rate Implement annually from FY2022, ensuring that the amount procured from the surveyed suppliers represents 80% of the total procurement value	155 suppliers surveyed (total procurement value 80% or above)	163 suppliers surveyed (total procurement value 80% or above)	162 suppliers surveyed (total procurement value 80% or above)
Elimination of gestation stalls (for swine) When building or rebuilding pigpens for pregnant sows, eliminate gestation stalls and adopt loose housing system to keep a sow or a group of sows.	No pregnant sow gestation stalls were built or rebuilt	No pregnant sow gestation stalls were built or rebuilt	No pregnant sow gestation stalls were built or rebuilt
Number of sites certified by a third party for food safety Maintain 100%	98% Completed certification of 44 facilities	100%	100%

*We carefully examine each environmental data and update it to the latest version.

*We carefully examine each environmental data and update it to the latest version.

３．Materiality identification process

process

　①Formulating "Basic Policy on Sustainability"
　　 Formulated in consideration of advice from outside experts and social demands.

　② Extracting social issues
　　 Extracted items based on business strategies such as "ISO26000," "GRI Guidelines," and "Mid-term Management Plan 2023."

　③ Evaluating significance
　　 Created a matrix mapping of various social issues from the perspective of their importance to stakeholders and our group.

　④ Extraction of initiative items
　　 Categorized the priority areas of materiality based on the mapping.
　　 We have extracted specific initiatives in view of their impact on business sustainability.

　⑤ Dialogue with experts
　　 Exchanged opinions and held discussions with experts and external stakeholders.

　⑥ Meeting of the Board of Directors
　　 Disclosed after resolution by the Board of Directors.