Teijin Group Executive Officer
Chief Human Resources Officer/Chief Sustainability Officer
Fumiaki Sakurai

I believe that efforts to address sustainability are like an "admission ticket" for companies to participate in society, and much like paying taxes, it is an obligation that we should naturally fulfill as part of our corporate social responsibilities. In other words, we have reached a stage where it is no longer a question of "why," but rather "how" we contribute. Since our founding, we have gained recognition for the role we play in society because we have provided what is truly needed, enabling us to sustain our business operations to the present day. Our newly established purpose includes the words "healthy planet," which clearly expresses our commitment to sustainability by safeguarding the global environment, people, and all life as we continue to implement initiatives going forward. I also believe that sustainability management directly contributes not only to society but also to the enhancement of corporate value. As both the Chief Human Resources Officer (CHRO) and the Chief Sustainability Officer (CSuO), I am responsible for promoting sustainability. By keeping these two wheels spinning and strengthening our human capital, I intend to contribute to addressing social issues and enhance the sustainability of the Teijin Group. I should also add that providing explanations and communicating about our sustainability initiatives now hold equal importance to financial reporting, so as a company, we will continue to address this as a responsibility that we should naturally fulfill.

I would first like to discuss the strengthening of human capital, which supports our sustainability efforts. With a view to realizing our long-term vision -To be a company that supports the society of the future, we have positioned our human resources as the ultimate management resource. In addition, we will properly execute management and business strategies that evolve with the times. For example, we will build an organization that can flexibly respond to a new business portfolio and secure talent to ensure that each position is filled appropriately. At the same time, by having each employee forge their own career and fully unleash their capabilities with a high level of engagement, we can create relationships in which the Company does not simply choose its employees, but rather, the Company and the employee mutually select and spur each other on to greater heights. This will encourage the employees of the future to choose to work for the Teijin Group as well. As the CHRO, I believe that my mission is to create a company that is an "Employer of Choice"--a place where people want to work--and to provide an environment that increases the likelihood of employee happiness.

In FY2024, we particularly focused on expanding the rollout of the job-based human resource system and changing the mindset of employees regarding career autonomy. We aim to establish a corporate culture in which it is normal for employees to forge their own careers instead of the conventional way of thinking that the company makes all the decisions. In Japan, we run an event called Job Posting Week, which not only allows employees to secure a position that aligns with their career vision, but also gives the heads of business units the chance to communicate the appeal of their organizations in a bid to attract talented individuals. As a result, employees can learn about the various career paths available within the Teijin Group. Also, even though the Teijin Group has many talented individuals, I feel that HR system reforms have not kept pace with the rapidly changing social environment, and as a result, employees find it difficult to fully demonstrate their capabilities in our current workplace environment. I intend to instill the concept of assigning the right people to the right positions, instead of the other way round. In doing so, we are transitioning to a mechanism conducive to the creation of an organization that fits our strategy, where suitable employees compete with each other to secure positions while improving their own abilities. Many of Teijin's employees approach their work with diligence and earnestness, but they tend to be somewhat cautious when it comes to change. While this is certainly not a bad thing, we need to accelerate the pace of transformation in the face of an increasingly tough competitive environment. We are advancing HR system reforms through discussions with the management team, recognizing that having disadvantages does not automatically mean we should not proceed. If the advantages outweigh the disadvantages, we will take action. The challenge going forward will be to foster a "One Teijin" mindset geared towards global expansion so that each and every employee moves in the same direction on a global scale. As the CHRO and CSuO, I will promote both human capital management and sustainability management in tandem, and do everything I can to ensure that the strength of each individual employee becomes a unified force under the "One Teijin" concept to realize our vision - To be a company that supports the society of the future.

Looking ahead to FY2025, I will further step up the pace of our human resources strategy, mainly by focusing on building an organization where employees can thrive globally and developing human resources that can generate innovation. Key to this is the adoption of a human resources information system, or HRIS. By centrally managing human resources information globally, we can create a cohesive framework across the entire Group, which will help our human resources thrive on a global basis and lay the groundwork for the "One Teijin." Furthermore, as a human resources division, we will strengthen the functions of our HR business partners (known as HRBPs) to contribute to the strategies of each business division. By doing so, we will drive the early development of HR professionals who possess knowledge of both business and human resources and change the structure of the organization so that we can provide value to the business division. Transforming our corporate culture is also important. While the Teijin Group boasts diverse human resources, I believe that our culture that attaches importance to harmony may be slowing the pace of transformation. As stated in the Company's values, I want to build a corporate culture that embodies the belief of empowering ourselves to address challenges and fostering growth through diversity and expertise. I believe that this corporate culture will serve as a breeding ground for innovation. The enhancement of corporate value come from the power of people and organizations. Guided by this belief, we will steadily press forward.

Next, I would like to discuss our environmental initiatives. Teijin's vision is to be a company that prioritizes the health of the planet, protects the environment, and supports a circular society. To achieve this, we have identified two key social issues: (1) climate change mitigation and adaptation; and (2) achievement of a circular economy. Particularly in the Materials Business and the Fibers & Products Converting Business, we think there are many themes where the call for environmental action is growing louder and where we can leverage Teijin's strengths. We continue to take up the challenge of tackling social issues with the power of materials. For example, we are working on materials that make automobiles and aircraft lighter, materials that can be used in mooring ropes for offshore wind power turbines and submarine power cables, and the development of recycling technologies for various materials. On a personal note, there is a sustainable outerwear brand called Save the Duck that I am really drawn to. Their products do not use any materials derived from animals. Sales in Japan are handled by Save the Duck Japan, a joint venture between Save the Duck and Teijin Frontier. As the brand goes well with conditions in society beginning to align with the growing momentum for sustainability, and as evidenced by the year-on-year growth in sales of these products, I believe that sustainability initiatives have the potential to impact and inspire society. Recently, in a meeting where the Company's outside directors were present, the head of the New Business Development Unit spoke about plans related to wind power and hydrogen energy. While these initiatives will take time to become profitable, they are full of potential as future growth drivers, and I was deeply impressed with what was said. We are also working on improving our wastewater treatment technology and optimizing the amount of dye used to reduce the risk of water contamination in the dyeing process. These improvements not only reduce our environmental impact but also enhance product quality, which is something our customers are increasingly more appreciative of. Environmental action is not a cost, but a source of competitiveness. I firmly believe that our serious challenge to tackling social issues is the very thing that will place Teijin on the path to becoming a stronger and more sustainable company.

Just like our finances, sustainability initiatives require quantitative management. The Teijin Group has established KPIs for 2030 and 2050 for each key issue, with avoided CO2 emissions positioned as an indicator aimed at capturing business opportunities. We also pioneered the establishment of KPIs related to the reduction of environmental impacts and have continued to steadily implement measures. On the other hand, partly because we were an early adopter of these efforts, I feel that our current KPIs may be somewhat less effective compared to those of other companies who established their KPIs later. Going forward, we will review our KPIs with a greater focus on business opportunities and areas of contribution. Still, our immediate priority is to steadily achieve our current targets before taking the next step. We are currently at the stage where we must further our goals, instead of just talking about them. I will steadily draw up a roadmap with which Teijin-through sustainability management-can remain a company that continues to be recognized for its contributions to society.

At Teijin, we consider sustainability to be at the core of corporate management, encompassing a wide range of areas such as the environment, human resources, human rights, compliance, and risk management. Indeed, it is a source of corporate value and our responsibility for the future. Looking back on our history, Teijin is a company that started with clothing. The spirit of the Company's founders to produce artificial silk (rayon) in Japan as a substitute for expensive silk embodies the value of contributing to society while cherishing people and the surrounding natural environment. In other words, it reflects the spirit of altruism. This culture continues to thrive today in various aspects of our business, such as Save the Duck, sports recovery wear, home healthcare support during disasters, and Teijin Soleil, a Group company that supports the employment of people with disabilities. I serve as both CHRO and CSuO to promote sustainability across the entire Teijin Group, starting with human resources. The strength of a company lies in its people, and the implementation of sustainability requires passionate human resources and the systems that support them. Moving forward, we will aim to create value that only Teijin can deliver, while continuing to safeguard the planet and its people in our pursuit of a healthy planet. This is our challenge--to be a company that supports the society of the future.

Centered on its purpose of "Pioneering solutions together for a healthy planet," the Teijin Group aims to realize a "Healthy Planet" where the global environment and all life are healthy. By assessing the opportunities and risks that sustainability issues present for our company, including social and environmental problems, we have identified the following Important Social Issues and Important Management Issues and are advancing initiatives to address them.

• Materiality and KPIs

We have appointed a Chief Human Resources Officer/Chief Sustainability Officer as the person responsible for sustainability-related activities. Under the instruction and supervision of the Board of Directors, this officer promotes sustainability initiatives that are integrated with our business operations. Policies and key issues related to sustainability are matters to be resolved by the Board of Directors. In line with these policies, the executive side sets management indicators and implements initiatives, while progress and responses are reported as needed to the Board of Directors by the CEO or this officer for discussion. Furthermore, to ensure prompt and appropriate responses to sustainability issues, the newly established Sustainability Committee, under the leadership of the CEO, deliberates on sustainability policies and promotes initiatives.

We have organized the opportunities and risks the Teijin Group faces with the aim of contributing to the development of a sustainable world, and established a sustainable management base to promote sustainability initiatives. In order to implement the Teijin Group's sustainability initiatives in a unified and effective manner, a main division/organization in charge is specified under the supervision of the CHRO/CSuO for each important sustainability issue. This main division/organization then starts the PDCA cycle of planning for the medium to long term and for single fiscal years (Plan), implementing this plan (Do), evaluating (Check), and improving (Action) to achieve ongoing improvement and enhancement of our sustainability initiatives.

Sustainability Awareness Raising Activities

Information dissemination on the internal communication platform

In addition to conducting lectures on sustainability for new employees and managers in level-based workshops, we are promoting internal awareness by regularly distributing sustainability-related content on Teijin HUB, a communication platform available to all Teijin Group employees. In FY2024, we distributed content on topics such as "Materiality and Non-Financial KPIs."

Sponsorship of the Envision Racing Formula E Team

• Partnership with Envision Racing Formula
  E Team

With its mission to "Race Against Climate Change," Envision Racing was the first team to receive carbon-neutral certification and promote the adoption of EVs and renewable energy. Since we share the team's vision and engage in similar activities, in 2020, we began our sponsorship with the aim of communicating the Teijin Group's corporate stance on climate change mitigation and adaptation to a wide range of global stakeholders. This partnership also seeks to increase awareness within the automotive industry of our own technologies and products that contribute to reducing environmental impact. In May 2025, we co-hosted the environmental awareness event "Race Against Climate Change Tokyo" with the Envision Racing Formula E Team. At that event, we discussed our vision for a circular economy, as well as the opportunities and challenges involved in achieving it. The event was attended by approximately 200 people, primarily customers, but also including media representatives and employees.

Code of Conduct video

Teijin will always be evolving as each and every employee is aware of the "Code of Conduct". We release the videos with subtitles in local languages of all regions and countries in which the Teijin Group operates to provide employees around the world to raise them interest in the "Code of Conduct" and help their better understandings of it.

• Code of Conduct

Information Security (Information Protection)

Accurate Record and Fair Disclosure

Conflict of Interest

Competition

Anti-bribery and Anti-corruption

Human Rights

Pamphlet "together" to raise awareness of diversity

We promote diversity, equity and inclusion as a management strategy. We have also issued a pamphlet entitled "together" to raise awareness of diversity every year since 2002.

• Why Does Teijin Need to Foster D&I? Reaffirming the importance of leveraging diverse human resources