You_Exec_-_Sustainability_Report_Part_2_Free.pptx

Sustainability

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2. Sustainability Highlights $10M Announced aspiration to become the most inclusive company in the world, appointed an inclusion Advisory Board and committed $10 million to support organizations that promote inclusion and social justice $27B Increase financial commitment to $27 billion through 20XX for EVs and AVs Year 20XX Set science-based targets to become carbon neutral in global products and operations by 20XX Year 20XX Announced aspiration to eliminate tailpipe emissions from new light-duty vehicles by 20XX 22 Committed to equip 22 vehicle models globally with new AV system by end of 20XX 30 Committed to introducing 30 new EVs globally by 20XX 3000 Announced intent to hire 3000 new employees to support engineering, design. 21% Contracted largest solar power project to date and ended 20XX with 21% of global energy demand met by renewable energy 450 Miles Announced maximum range of EVs as up to 450 Miles on a full charge 96% Achieved a 96% response rate from select suppliers in CDP Supply Chain Survey, exceeding our goal We entered long-term strategic relationship with Company ABC to accelerate the commercialization of autonomous vehicles Introduced a digital platform to unify customer experiences for EV Owners 5M Inspected 5 millions U.S. individuals through nearly $35 million in funding to 357 nonprofit partners

3. SCOPE 2 Energy Related Indirect Emission GHG Emissions Throughout the Value Chain SCOPE 3 Upstream SCOPE 1 Direct Emission SCOPE 3 Downstream 1.7% Direct emissions from in-house fuel use and industrial processes 2.9% Indirect emissions from production of electricity and heat purchased by the company 0% 09. Downstream transportation And distribution Shipping companies N/A 10. Processing of sold product Processor of intermediate products 83.2% 11. Use of sold products Product end users 0.7% 12. End-of-life treatment of sold products Waste treatment companies 0% 13. Downstream leased assets Users of leased assets N/A 14. Franchises Franchise members 0.1% 15. Investment Investment destinations 9.1% 1. Purchased goods and services Suppliers, etc. 1.7% 2. Capital goods Construction companies, etc. 0.3% 3. Fuel-and energy-related activities not included in scope 1 and 2 Extraction companies etc. 0.1% 4. Upstream transportation & distribution Shipping companies 0.1% 5. Waste generate in operations Waste treatment companies 0% 6. Business travel Transportation companies 0.1% 7. Employee commuting Transportation companies Scope 1 & 2 8. Upstream leased assets Leasing companies Procurement of Raw Materials & Parts Production Transport, Use, Waste Disposal/Recycling

4. GLOBAL AVERAGE 20XX 20XX Consumers Willingness % of Consumers willing to pay more for goods and services from socially responsible companies ASIA-PACIFIC 65% 55% MIDDLE EAST/ AFRICA 60% 30% LATIN AMERICA 65% 55% NORTH AMERICA 50% 75% EUROPE 62% 60% 65% 55%

5. This list of 17 material topics specific to our business includes issues that we intend to manage, measure and report on. These what our stakeholder are most interested in understanding. Materiality Matrix Engagement Human rights Diversity Safety Governance Risk management Water & recycle Sustainable Profit Climate change Energy & chemicals Innovation Importance to stakeholders High Low Business Impact High Low Environment Professional Governance People & Safety

6. ◔ Low Density ◑ Medium Density ● High Density ● ◔ ● ● ◑ ◑ ● ◔ ● ◑ ◑ ◔ ◔ ◑ ◔ ● ◑ ◔ ◑ ◑ ● ● ◔ ◔ ◑ ◔ ● ◑ ◔ ◔ ● ● ◑ ◑ ● 1 No Poverty 2 Zero Hunger 3 Good Health & Well-being 4 Quality Education 5 Gender Equality 6 Clean Water & Sanitation 7 Affordable and Clean Energy 8 Decent Work & Economic Growth 9 Industry, Innovation & Infrastructure 10 Reduced Inequalities 11 Sustainable Cities & Communities 12 Responsible Consumption & Production 13 Climate Action 14 Life below Water 15 Life on Land 16 Peace, Justice & Strong Institutions 17 Partnerships For The Goals Resilient Sourcing Safe & Sustainable Sites Climate Change & Energy Professional Excellence Sustainable Profit Portfolio Business Driven Innovation Valuing Customer Relations TOTAL SGD CONTRIBUTION Sustainable Development Goal (SDG)

7. ENVIRONMENT SOCIETY ESG KPIs KPI Achievements in FY 2020 Progress made toward the goal and achievements in made Target Business Sites (Factories and Offices) Reduction rate of CO2 emissions (base: FY 20XX) 39% ✔️ FY 2021 20% or higher FY 2030 100% (carbon neutrality) FY 2050 (Maintain 100%) Reduction rate in water use per unit (Company XYZ) (base: FY 2010) ✔️ FY 2021 26% or higher 24% ✔️ FY2050 50% Reduction rate in waste and valuables unit generation per (Company XYZ) [Base: FY 2010] 14% ✔️ FY 2021 12% or higher ✔️ FY 2050 50% Digital talent (Company XYZ) Approx. 35,000 people ✔️ FY 2021 37,000 people Number of Data scientists (Company XYZ) Approx. 3,000 people (Achieved ahead of schedule) ✔️ FY 2021 3,000 people Number of Top-class Al talent (Company XYZ) 356 people (Achieved ahead of schedule) ✔️ FY 2021 350 people Ratio of female executives and corporate officers (Company XYZ) 10.1%*¹ [10%] ✔️ FY 2024 15%*¹ FY 2030 30%*¹ Ratio of BIPOC executives and officers corporate (Company XYZ) 11.6%*¹ ✔️ FY 2024 15%*¹ [10%] ✔️ FY 2030 30%*¹ Number of female managers (Company XYZ) 800 people*2 [800 people] ✔️ - - Fatal accidents (Company XYZ) 3 cases 2021 Fatal accidents (Company XYZ) 0 cases ✔️ 2021 Lost time accidents (Company XYZ) 314 cases 2021 Halve the number compared to 2018 (253 cases) Lost time accidents (Company XYZ) 4cases 2021 Halve the number compared to 2018 (3 cases)

8. STAKEHOLDERS MAIN ROLES MAIN DIVISIONS MEANS OF COMMUNICATION (Result in FY 20XX) Customers Creation of better products and services, response to complaints, appropriate disclosure of information on products and services Quality Assurance/Sales Customer satisfaction activities Advertising activities "Global Brand Campaign" Shareholders and Investors Timely and proper information disclosure, obtaining fair recognition and support from capital markets, reflection of shareholder and investor viewpoints in corporate management Public Relations and IR Financial results briefings (quarterly) One-on-one meetings with institutional General shareholders' meeting (annual) Suppliers Building fair and sound business relations, smooth information sharing toward better partnerships Procurement Procurement activities CSR monitoring (271 companies) CSR procurement seminars (450 companies) Employees Proper treatment, promotion of occupational health and safety of human capital Public Relations/ Human Capital Intranet, in-house newsletters Training Employee survey (annual) National and Local Governments, Industrial Associations Compliance with domestic and foreign laws and regulations, policy recommendations, participation in industry-government-academia collaborative projects Government and External Relations Academic research for policy recommendations to international organizations and national governments, lobbying activities Policy council participation (Japan) Participation in business and industry associations (Japan) Local Communities Fulfillment of responsibilities as a corporate citizen, involvement in local communities Social Contributions/All Business Divisions Contribution to local communities through business Participation in volunteer activities Academic Associations and Research Institutions Promotion of technological innovations, participation in industry- government-academia collaborative projects Research and Development Open innovation (joint research) NGOs and NPOs Incorporation of diverse public opinions, promotion of stakeholder- focused management, social contributions through nonprofit activities Sustainability Promotion Stakeholder dialogues (annual) Dialogue through collaboration Global Environment Realization of a decarbonized society, a resource efficient society, a harmonized society with nature Environment/All Business Divisions Stakeholder dialogues about environment (annual) Stakeholder Engagement

9. A DECARBONIZED SOCIETY A RESOURCE EFFICIENT SOCIETY A HARMONIZED SOCIETY WITH NATURE Items Indicators FY 20XX Targets FY 20XX Results (Achievement Level) Final FY 20XX Targets Items Indicators FY 20XX Targets FY 20XX Results (Achievement Level) Final FY 20XX Targets Items Indicators FY 20XX Targets FY 20XX Results (Achievement Level) Final FY 20XX Targets Reduce CO 2 emissions of product and services Reduction rate of CO 2 emissions per unit (Base FY 20XX) 20% 20% ★★★ 21% Water circulation (factories and offices) Enhancing efficiency in the use of water Reduction rate in water use per unit (base: FY 20XX) 24% 24% ★★★ 26% Chemical substances (Factories and offices) Reduce chemical emissions Reduction rate in chemical atmospheric emissions per unit (base: FY 20XX) 17% 33% ★★★ 18% Address climate change risks and opportunities Identification and review of risks and opportunities Reduce CO 2 emissions of business sites (factories and offices) Reduction rate of CO 2 emissions per unit (Base: FY 20XX) 8% 1.4% ★★ 9% Respond to water risk Promotion of measures based on water risk survey results Ecosystem preservation Reduce impact on natural capital Calculation of negative impacts (environmental impact assessment of business activities) Reduce CO 2 emissions from transportation (Shipping)Reduction rate of transportation energy consumption per unit 10% 1% ★★ 11% Resource circulation (factories and offices) Enhance efficiency in the use of resources Reduce and recycle waste materials Reduction rate in waste and valuables generation per unit (Base: 20XX) 11% 14% ★★★ 12% Calculation of positive impacts (forest conservation activities) Contribute to ecosystem preservation Promotion of ecosystem preservation activities Environmental Action Plan ★★★ Achieved ★★ Partially Achieved ITEMS INDICATORS FY 20XX TARGETS FY 20XX RESULTS (ACHIEVEMENT LEVEL) FINAL FY 20XX TARGETS Promote Environmental Human Capital Development Environmental human capital development of the Company XYZ Enhance Global environmental management Implementation rate of voluntary environmental audits (number of implementing sites/number of sites outside Japan) 50% 34% ★★ 80%

10. Team Education Timeline Introductory training for new employees Online e-learning: Eco Mind Education (General topics: Global environmental issues, environmental law, etc.) Online e-learning: Eco Mind Education (Company XYZ Topics: Environmental Policy, Environmental Action Plan, etc..) Basic Environmental Management course for working-level employees (Management of waste, air/water quality, and hazardous materials; development and operation of management systems; etc.) Education for Eco-Factories Eco-Product development training Risk communicator training Education for Eco-Factories ISO 14011 Auditor Certification Training ISO 14011 Senior Auditor Certification Training All Employees Working-Level Employees Internal Environmental Auditors Target Introductory Beginning Intermediate Advanced General Education Specialized Education

11. Naturally Structured Environment Equitable Social Environment Government Funded Programs Economic Development Policies Sustainable Development Goals Sustainable Development ENVIRONMENTAL ECONOMIC GOVERNMENT SOCIAL 02 ECONOMIC Sufficient Economy 01 GOVERNMENT Vision & direction Enabling conditions Set rules/regulations Public services Resources 04 ENVIRONMENTAL A viable natural environment 03 SOCIAL Nurturing Community

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