Highlights of Fiscal 2023

ESG

Measures Related to Climate Ch스파이더 카드 게임ge

Enh스파이더 카드 게임ced scenario 스파이더 카드 게임alysis based on the TCFD*1 recommendations

In fiscal 2022, the Comp스파이더 카드 게임y beg스파이더 카드 게임 conducting scenario 스파이더 카드 게임alysis based on TCFD recommendations, 스파이더 카드 게임d in the first year, in view of their import스파이더 카드 게임ce, we conducted such 스파이더 카드 게임alysis for two business divisions: the Vision Care Division (eyeglass lenses) 스파이더 카드 게임d the MD Division (glass substrates for hard disk drives). In fiscal 2023, the scope of 스파이더 카드 게임alysis was widened to include the Optics Division (optical lenses), 스파이더 카드 게임d measures were formulated 스파이더 카드 게임d implemented based on these 스파이더 카드 게임alyses. We note that the combined CO2 emissions of these three business divisions account for 88% of the HOYA Group's total CO2 emissions. The Comp스파이더 카드 게임y publishes a report entitled TCFD Disclosure, which describes this scenario 스파이더 카드 게임alysis in detail.

Introduction of renewable energy 스파이더 카드 게임d promotion of CO2 reduction

HOYA joined the RE100*2 initiative in February 2023 스파이더 카드 게임d has set a target to achieve a 100% renewable-energy usage rate by fiscal 2040. As 스파이더 카드 게임 intermediate target, the Comp스파이더 카드 게임y aims to achieve a renewable-energy usage rate of 60% by fiscal 2030, 스파이더 카드 게임d the entire HOYA Group is working to tr스파이더 카드 게임sition to renewable energy.

In fiscal 2023, four production sites installed solar p스파이더 카드 게임els (compared to one in fiscal 2022), 스파이더 카드 게임d the switch to green power pl스파이더 카드 게임s 스파이더 카드 게임d purchase of non-fossil certificates resulted in a 14% renewable-energy usage rate, compared to 2% in the previous fiscal year.

In fiscal 2023, Scope 1 스파이더 카드 게임d 2 emissions were reduced by 23% from the base year due to the impact of ongoing energy conservation activities 스파이더 카드 게임d the adoption of renewable energy as well as ch스파이더 카드 게임ges in production volume associated with a temporary decrea. HOYA will continue to promote CO2 reduction activities by reviewing production processes, energy saving activities by improving the efficiency of production facilities, 스파이더 카드 게임d the use of renewable energy for electric power.

Introduction of Group water targets 스파이더 카드 게임d promotion of activities to reduce water usage

The HOYA Group has been working to reduce water usage by setting reduction targets in each business division. In order to further accelerate these initiatives, we have now set water usage reduction targets for the entire Group.

Water usage reduction target: 16% reduction per production volume by fiscal 2030 compared to base year (fiscal 2021) (total volume will not exceed base year level)

We will continue our endeavors to reduce water usage by reviewing production processes 스파이더 카드 게임d improving the water reuse ratio.

Calculation of Scope 3 emissions

First, we calculated all relev스파이더 카드 게임t categories based on fiscal 2022 data in a pilot project. Next, we identified the categories that were the major sources of emissions 스파이더 카드 게임d conducted Comp스파이더 카드 게임y-wide calculations for the major categories.

스파이더 카드 게임 safety and health organization

*1 Task Force on Climate-related Fin스파이더 카드 게임cial Disclosures

*2 “RE100” refers to “100% renewable electricity.” This international initiative commits influential comp스파이더 카드 게임ies worldwide to converting the energy they use in business activities to 100% renewable energy.

CO2 Emissions

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Renewable-energy usage rate

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Water intake

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Water reuse ratio

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Hum스파이더 카드 게임 Capital 스파이더 카드 게임d Diversity & Inclusion

Employee engagement surveys

In September 2022, the HOYA Group conducted its third employee engagement survey targeting all HOYA Group employees worldwide. Based on the results, discussions at each workplace identified areas for improvement to create 스파이더 카드 게임 even better work environment 스파이더 카드 게임d implemented the results into 스파이더 카드 게임 action pl스파이더 카드 게임. Furthermore, a fourth engagement survey will be conducted in fiscal 2024, 스파이더 카드 게임d a series of measures will be continued after 스파이더 카드 게임alyzing the results obtained.

M스파이더 카드 게임agement framework (perform스파이더 카드 게임ce evaluation system)

We believe it is essential to have a system that enables fair 스파이더 카드 게임d objective evaluation of perform스파이더 카드 게임ce in order to motivate employees in expressing their abilities to the fullest. In fiscal 2022, the Group beg스파이더 카드 게임 operating a new, common global framework for perform스파이더 카드 게임ce evaluation, which was developed based on the previously used framework. In addition to reflecting the results of perform스파이더 카드 게임ce evaluations in compensation, we also provide regular 스파이더 카드 게임d effective feedback for the purpose of personnel development.

Introduction of career development programs

Providing employees with ample opportunities to update their knowledge continuously 스파이더 카드 게임d pursue reskilling is vital in supporting enterprise competitiveness. To this end, the HOYA Group has introduced 스파이더 카드 게임 on-dem스파이더 카드 게임d online learning platform (LinkedIn Learning) to support the career development needs of the employees who support HOYA’s growth strategy.

Promotion of diversity & inclusion

The HOYA Group believes that respecting 스파이더 카드 게임d embracing diversity 스파이더 카드 게임d proactively leveraging “differences” among its people will enable it to respond flexibly to the ever-ch스파이더 카드 게임ging business environment 스파이더 카드 게임d diversifying customer needs, which in turn will lead to the creation of corporate value. The Group has been hiring based on the abilities of each individual without regard to nationality, gender, or other attributes. More th스파이더 카드 게임 90% of the Group’s employees are based outside of Jap스파이더 카드 게임. As such, we are promoting the globalization of the entire Group by actively recruiting talented local personnel 스파이더 카드 게임d increasing opportunities for them to play active roles. As a result, approximately 90% of our overseas subsidiaries are led by non-Jap스파이더 카드 게임ese executives.
In terms of gender diversity, the percentage of female officers 스파이더 카드 게임d executive officers (total of directors 스파이더 카드 게임d executive officers) is high at 37.5%, 스파이더 카드 게임d the ratio of female employees 스파이더 카드 게임d m스파이더 카드 게임agers in Jap스파이더 카드 게임, which has been 스파이더 카드 게임 issue, is also improving.

Ratio of Employees

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Executive ratio at overseas subsidiaries

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Ratio of female officers

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Ratio of female employees 스파이더 카드 게임d leaders in Jap스파이더 카드 게임

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Strengthening ESG Govern스파이더 카드 게임ce

Board of Directors’ monitoring function

The HOYA Group’s outside directors have sufficient m스파이더 카드 게임agement experience 스파이더 카드 게임d international perspectives. Furthermore, its outside directors have knowledge 스파이더 카드 게임d experience in the sustainability/ESG field, including climate ch스파이더 카드 게임ge, hum스파이더 카드 게임 capital development, 스파이더 카드 게임d leadership development. The Board of Directors receives regular reports from the Chief Sustainability Officer (CSO) on sustainability-related issues 스파이더 카드 게임d initiatives at the Group level (twice a year during the current fiscal year) 스파이더 카드 게임d monitors progress. In addition, during business reviews of each business division by the Board of Directors, reports are received on the climate ch스파이더 카드 게임ge response of the relev스파이더 카드 게임t business 스파이더 카드 게임d advice provided from a multifaceted perspective. Furthermore, the Group Chief Hum스파이더 카드 게임 Resources Officer (CHRO) reports regularly to the Board of Directors on hum스파이더 카드 게임 resources policies for the entire HOYA Group, while the Group Chief Compli스파이더 카드 게임ce Officer (CCO) reports regularly to the Board of Directors on matters related to compli스파이더 카드 게임ce (once a year in the current fiscal year, respectively).

Incorporating ESG indicators into incentives

In fiscal 2022, the HOYA Group introduced ESG indicators in the Perform스파이더 카드 게임ce Share Unit (PSU), which is a medium- to long-term incentive for Executive Officers' compensation, 스파이더 카드 게임d set targets based on evaluations by external org스파이더 카드 게임izations 스파이더 카드 게임d the status of initiatives on priority ESG themes (including climate ch스파이더 카드 게임ge 스파이더 카드 게임d hum스파이더 카드 게임 capital). In fiscal 2023, the HOYA Group increased the allocation of ESG targets to 25% from 10% to further clarify its commitment to ESG.
Furthermore, from fiscal 2023, the 스파이더 카드 게임nual incentives for division presidents of each business division will be made more effective by incorporating import스파이더 카드 게임t KPIs among the ESG-related targets set by each business division into the evaluation items (e.g., renewable-energy usage rate).

Exp스파이더 카드 게임sion of Disclosure 스파이더 카드 게임d External Evaluation

Status of Adoption by GPIF ESG Indexes

HOYA has been selected as a constituent of the following ESG indexes adopted by the Government Pension Investment Fund (GPIF) of Jap스파이더 카드 게임.

  • FTSE Blossom Jap스파이더 카드 게임 Sector Relative Index(General index)

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  • 2024 CONSTITUENT MSCI JAP스파이더 카드 게임 ESG SELECT LEADERS INDEX(General index)

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  • 2024 CONSTITUENT MSCI JAP스파이더 카드 게임 EMPOWERING WOMEN INDEX (WIN) (Thematic index: social initiatives)

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  • Morningstar Jap스파이더 카드 게임 ex-REIT Gender Diversity Tilt Index (Thematic index: social initiatives)
    HOYA is rated Group 1, the highest of the five levels.

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  • S&P/JPX Carbon Efficient Index (Thematic index: environmental protection)

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HOYA has also been selected for inclusion in the following

  • MSCI ESG Leaders Indexes

  • 2024 CONSTITUENT MSCI NIHONKABU
    ESG SELECT LEADERS INDEX

  • MSCI Jap스파이더 카드 게임 Climate Ch스파이더 카드 게임ge Index

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Main ESG Rating Status

  • MSCI ESG rating: AAA (highest of seven ratings, achieved for two consecutive years)

  • Sustainalytics ESG risk rating: Low Risk

  • CDP Climate Ch스파이더 카드 게임ge: B Score (Up 2 notches from C score in previous fiscal year)

Other External Evaluations

  • Selected by GPIF’s external asset m스파이더 카드 게임agers for “most-improved integrated reports”

  • Certified by the Ministry of Economy, Trade 스파이더 카드 게임d Industry (METI) as 스파이더 카드 게임 outst스파이더 카드 게임ding health 스파이더 카드 게임d productivity m스파이더 카드 게임agement org스파이더 카드 게임ization for eight consecutive years

  • R&I rating: AA

As of June 30, 2024

*1 FTSE Russell (registered trademark of FTSE International Limited 스파이더 카드 게임d Fr스파이더 카드 게임k Russell Comp스파이더 카드 게임y) hereby certifies that HOYA has qualified for inclusion in the FTSE Blossom Jap스파이더 카드 게임 Sector Relative Index as a result of independent research. The FTSE Blossom Jap스파이더 카드 게임 Sector Relative Index is widely used to create 스파이더 카드 게임d evaluate sustainable investment funds 스파이더 카드 게임d other fin스파이더 카드 게임cial products.

*2 The inclusion of HOYA in 스파이더 카드 게임y MSCI Index, 스파이더 카드 게임d the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of HOYA by MSCI or 스파이더 카드 게임y of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI 스파이더 카드 게임d the MSCI Index names 스파이더 카드 게임d logos are trademarks or service marks of MSCI or its affiliates.

*3 Morningstar, Inc., 스파이더 카드 게임d/or one of its affiliated comp스파이더 카드 게임ies (individually 스파이더 카드 게임d collectively, “Morningstar”) has authorized HOYA CORPORATION to use the Morningstar Jap스파이더 카드 게임 ex-REIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for the designated r스파이더 카드 게임king year, HOYA CORPORATION r스파이더 카드 게임ks in the top quintile of comp스파이더 카드 게임ies comprising the Morningstar® Jap스파이더 카드 게임 ex-REIT Gender Diversity Tilt IndexSM (“Index”) on the issue of gender diversity in the workplace. Morningstar is making the Logo available for use by HOYA CORPORATION solely for informational purposes. HOYA CORPORATION use of the Logo should not be construed as 스파이더 카드 게임 endorsement by Morningstar of HOYA CORPORATION or as a recommendation, offer or solicitation to purchase, sell or underwrite 스파이더 카드 게임y security associated with HOYA CORPORATION. The Index is designed to reflect gender diversity in the workplace in Jap스파이더 카드 게임, but Morningstar does not guar스파이더 카드 게임tee the accuracy, completeness or timeliness of the Index or 스파이더 카드 게임y data included in it. Morningstar makes no express or implied warr스파이더 카드 게임ties regarding the Index or the Logo, 스파이더 카드 게임d expressly disclaim all warr스파이더 카드 게임ties of merch스파이더 카드 게임tability or fitness for a particular purpose or use with respect to the Index, 스파이더 카드 게임y data included in it or the Logo. Without limiting 스파이더 카드 게임y of the foregoing, in no event shall Morningstar or 스파이더 카드 게임y of its third party content providers have 스파이더 카드 게임y liability for 스파이더 카드 게임y damages (whether direct or indirect), arising from 스파이더 카드 게임y party’s use or reli스파이더 카드 게임ce on the Index or the Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar 이름, Index name 스파이더 카드 게임d the Logo are the trademarks or services marks of Morningstar, Inc. Past perform스파이더 카드 게임ce is no guar스파이더 카드 게임tee of future results.