GRI Sustainability Reporting Guideline

1. The organization and its reporting practices

Indicator		References (As of October 2023)
2-1	Organizational details	Profile Locations(Japan) Subsidiaries(Japan) Subsidiaries(Global)
2-2	Entities included in the organization’s sustainability reporting	Profile Locations(Japan) Subsidiaries(Japan) Subsidiaries(Global) Securities Report: 4 Subsidiaries and Affiliates (Japanese only) (P.7-9)
2-3	Reporting period, frequency and contact point	Editorial Policies/ Report Scope RESONAC REPORT 2023: Editorial Policies (P.136) Securities Report : Fiscal Year (Japanese only) (P.1) Contact Us
2-4	Restatements of information	-
2-5	External assurance	Third-party Verification RESONAC REPORT 2023: Third Party Verification of Environmental and Safety Data (P.136)

2. Activities and workers

Indicator		References
2-6	Activities, value chain and other business relationships	Profile (Business Field) Introductory Guide to the New Resonac (Resonac Businesses) Securities Report: 3 Nature of Business (chart)(Japanese only) (P.6) RESONAC REPORT 2023: Overview of Resonac's Business (P.9-10) Locations(Japan) Subsidiaries(Japan) Subsidiaries(Global) Summary of Financial Data Securities Report: 4 Subsidiaries and Affiliates (Japanese only) (P.7-9) Resonac Holdings Corporation (Showa Denko K.K. will change its trade name into Resonac Holdings Corporation on January 1, 2023) Resonac Corporation (Showa Denko Materials Co., Ltd. will change its trade name into Resonac Corporation on January 1, 2023) Resonac Corporation Signs Contract to Transfer Shares of Diagnostic Reagent Subsidiaries in Japan, China and the United States
2-7	Employees	Profile (Consolidated Number of Employees) ESG Performance Data (Social: Number of employees) RESONAC REPORT 2023: Overview of Resonac's Business (P.10)
2-8	Workers who are not employees	Securities Report: 5 Employees (1)Consolidated Company Status (Japanese only) (P.10)

3. Governance

Indicator		References
2-9	Governance structure and composition	Corporate Governance System Corporate Governance Report: II Business Management Organization and Other Corporate Governance Systems regarding Decision-making, Execution of Business, and Supervision in Management (P.7-18) RESONAC REPORT 2023: Basic Policies (P.123) Securities Report: 4 Status of Corporate Governance (Japanese only) (P.44-57) Notice of Convocation of the 114th Ordinary General Meeting of Shareholders: Election of Nine Directors, Election of One Audit & Supervisory Board Member (P.4-20) Sustainability Management
2-10	Nomination and selection of the highest governance body	Corporate Governance Basic Policies: (3) Election (P.4) RESONAC REPORT 2023: Nomination Process (P.124) Notice of Convocation of the 114th Ordinary General Meeting of Shareholders: Election of Nine Directors (P.4) Corporate Governance Report: Criteria for selecting candidates for Directors and Audit & Supervisory Board Members (P.3)
2-11	Chair of the highest governance body	Corporate Governance Report: 1. Status of the oversight and decision-making function (a. Board of Directors) (P.16) Notice of Convocation of the 114th Ordinary General Meeting of Shareholders: Election of Nine Directors (P.4)
2-12	Role of the highest governance body in overseeing the management of impacts	Sustainability Management Corporate Governance System Risk management promotion system Respect for Human Rights (Basic ideas and policy, Promotion system) Securities Report: 2) Status of Business Execution Functions (Japanese only) (P.45) Measures Against Climate Change (Governance)
2-13	Delegation of responsibility for managing impacts	Sustainability Management
2-14	Role of the highest governance body in sustainability reporting	Sustainability Management
2-15	Conflicts of interest	Corporate Governance Basic Policies: 5. Related Party Transactions (P.2) Securities Report: ②Status of Outside Directors (Japanese only) (P.56) Notice of Convocation of the 114 th Ordinary General Meeting of Shareholders: Election of Nine Directors (Notes: 7) (P.17) Corporate Governance Report (P.1-14)
2-16	Communication of critical concerns	Risk Management
2-17	Collective knowledge of the highest governance body	-
2-18	Evaluation of the performance of the highest governance body	Evaluation of the Board of Directors’ Effectiveness
2-19	Remuneration policies	Policies and procedures for determining the remuneration of directors, Audit & Supervisory Board members, and corporate officers Securities Report: 4 Remuneration of executives (Japanese only) (P.61-65) RESONAC REPORT 2023: Remuneration (P.125-128)
2-20	Process to determine remuneration	Securities Report: ②Status of the Remuneration Advisory Committee's Operations (Japanese only) (P.62) Corporate Governance (Policies and procedures for determining the remuneration of directors, Audit & Supervisory Board members, and corporate officers: 3.Incentive compensation)
2-21	Annual total compensation ratio	-

4. Strategy, policies and practices

Indicator		References
2-22	Statement on sustainable development strategy	Message from CEO
2-23	Policy commitments	Our Code of Conduct The Resonac Group Human Rights Policy Stakeholder Communications
2-24	Embedding policy commitments	Environmental Management System Occupational Health and Safety - Management System Quality Assurance Chemicals Management Development of Human Resources Diversity, Equity & Inclusion (DE&I) Sustainable Procurement - Management System Basic Procurement Policy Respect for Human Rights Risk Management Information Security Compliance Anti-corruption
2-25	Processes to remediate negative impacts	The Resonac Group Human Rights Policy (Grievance mechanism) RESONAC REPORT 2023: "Resonac Group Hotline," consultation and whistleblowing system (P.112) Compliance (Resonac Group Hotline)
2-26	Mechanisms for seeking advice and raising concerns	Securities Report: ② Status of Internal Control Systems and Risk Management Framework (Japanese only) (P.46) Compliance (Basic policy on compliance, Global Compliance Standard (GCS)) RESONAC REPORT 2023: "Resonac Group Hotline," consultation and whistleblowing system (P.112) Compliance (Resonac Group Hotline)
2-27	Compliance with laws and regulations	ESG Performance Data (Governance)
2-28	Membership associations	Participation in Initiatives (Major initiatives that we support, and the organizations to which we belong as a member)

5. Stakeholder engagement

Indicator		References
2-29	Approach to stakeholder engagement	Stakeholder Communications
2-30	Collective bargaining agreements	Securities Report: 5 Employees (3) Status of Labor Unions (Japanese only) (P.10) ESG Performance Data (Social: Promoting sound work-life balance, Labor union)

Indicator		References
3-1	Process to determine material topics	Our Viewpoint About Sustainability (Materiality for sustainability)
3-2	List of material topics	Resonac Sustainability Vision 2030 RESONAC REPORT 2023: Material Issues and Non-financial KPIs (P.57-58)
3-3	Management of material topics	Resonac Sustainability Vision 2030 RESONAC REPORT 2023: Material Issues and Non-financial KPIs (P.57-58)

GRI 201: Economic Performance

Indicator		References
201-1	Direct economic value generated and distributed	Securities Report: ② Consolidated Income Statement and Consolidated Comprehensive Income Statement (Japanese only) (P.72-73) Consolidated Financial Statements (Annual: Statements of Income) Summary of Financial Data RESONAC REPORT 2023: Consolidated 11-Year Summary (P.129) Securities Report : (2) Status of the Submitting Company (Japanese only) (P.10) Social Contribution Activities (Activities in 2022) ESG Performance Data (Social: Other)
201-2	Financial implications and other risks and opportunities due to climate change	Measures Against Climate Change Risk Factors (6. Others (7) Impact of climate change)
201-3	Defined benefit plan obligations and other retirement plans	Securities Report: Retirement Benefits-Related (Japanese only) (P.106-107) Risk Factors (3. Unexpected fluctuations in financial position and cash flows (3) Employees' severance indemnities)
201-4	Financial assistance received from government	-

GRI 202: Market Presence

Indicator		References
202-1	Ratios of standard entry level wage by gender compared to local minimum wage	-
202-2	Proportion of senior management hired from the local community	-

GRI 203: Indirect Economic Impacts

Indicator		References
203-1	Infrastructure investments and services supported	Social Contribution Activities
203-2	Significant indirect economic impacts	-

GRI 204: Procurement Practices

Indicator		References
204-1	Proportion of spending on local suppliers	-

GRI 205: Anti-corruption

Indicator		References
205-1	Operations assessed for risks related to corruption	-
205-2	Communication and training about anti-corruption policies and procedures	Compliance with anti-bribery laws and regulations Education and awareness activities
205-3	Confirmed incidents of corruption and actions taken	ESG Performance Data (Governance)

GRI 206: Anti-competitive Behavior

Indicator		References
206-1	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	-

GRI 207: Tax

Indicator		References
207-1	Approach to tax	Resonac Group’s Tax Code of Conduct
207-2	Tax governance, control, and risk management	4. Tax governance
207-3	Stakeholder engagement and management of concerns related to tax	6. Relationship with the tax authority
207-4	Country-by-country reporting	-

GRI 301: Materials

Indicator		References
301-1	Materials used by weight or volume	-
301-2	Recycled input materials used	ESG Performance Data (Environment: Resource recycling)
301-3	Reclaimed products and their packaging materials	-

GRI 302: Energy

Indicator		References
302-1	Energy consumption within the organization	ESG Performance Data (Environment: Addressing climate change)
302-2	Energy consumption outside of the organization	-
302-3	Energy intensity	ESG Performance Data (Environment: Addressing climate change)
302-4	Reduction of energy consumption	ESG Performance Data (Environment: Addressing climate change) Measures Against Climate Change (Indicators and Targets)
302-5	Reductions in energy requirements of products and services	-

GRI 303: Water and Effluents

Indicator		References
303-1	Interactions with water as a shared resource	Environmental Considerations; Water
303-2	Management of water discharge-related impacts	Environmental Considerations; Water
303-3	Water withdrawal	ESG Performance Data (Environment: Resource recycling) Environmental Considerations; Water
303-4	Water discharge	ESG Performance Data (Environment: Resource recycling) Environmental Considerations; Water
303-5	Water consumption	ESG Performance Data (Environment: Resource recycling)

GRI 304: Biodiversity

Indicator		References
304-1	Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	-
304-2	Significant impacts of activities, products and services on biodiversity	-
304-3	Habitats protected or restored	Efforts for Preservation of Biodiversity RESONAC REPORT 2023: Efforts for Preservation of Biodiversity (P.102)
304-4	IUCN Red List species and national conservation list species with habitats in areas affected by operations	-

GRI 305: Emissions

Indicator		References
305-1	Direct (Scope 1) GHG emissions	ESG Performance Data (Environment: Addressing climate change) Measures Against Climate Change (Indicators and Targets) RESONAC REPORT 2023: Greenhouse gas emissions (P.18)
305-2	Energy indirect (Scope 2) GHG emissions	ESG Performance Data (Environment: Addressing climate change) Measures Against Climate Change (Indicators and Targets) RESONAC REPORT 2023: Greenhouse gas emissions (P.18)
305-3	Other indirect (Scope 3) GHG emissions	ESG Performance Data (Environment: Addressing climate change) Measures Against Climate Change (Indicators and Targets)
305-4	GHG emissions intensity	ESG Performance Data (Environment: Addressing climate change)
305-5	Reduction of GHG emissions	ESG Performance Data (Environment: Addressing climate change) Measures Against Climate Change (Indicators and Targets) Challenges to Realize Carbon Neutrality
305-6	Emissions of ozone-depleting substances (ODS)	-
305-7	Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions	ESG Performance Data (Environment: Pollution prevention) Environmental Considerations; Atmosphere

GRI 306: Waste

Indicator		References
306-1	Waste generation and significant waste-related impacts	-
306-2	Management of significant waste-related impacts	Waste Management
306-3	Waste generated	ESG Performance Data (Environment: Resource recycling)
306-4	Waste diverted from disposal	Waste Management ESG Performance Data (Environment: Resource recycling)
306-5	Waste directed to disposal	Waste Management ESG Performance Data (Environment: Resource recycling)

GRI 308: Supplier Environmental Assessment

Indicator		References
308-1	New suppliers that were screened using environmental criteria	Promotion of Sustainable Procurement Evaluation of Suppliers
308-2	Negative environmental impacts in the supply chain and actions taken	Promotion of Sustainable Procurement Evaluation of Suppliers

GRI 401: Employment

Indicator		References
401-1	New employee hires and employee turnover	ESG Performance Data (Social: Recruitment, Labor Practices)
401-2	Benefits provided to full-time employees that are not provided to temporary or part-time employees	-
401-3	Parental leave	ESG Performance Data (Social: Promoting sound work-life balance, Labor union)

GRI 402: Labor/Management Relations

Indicator		References
402-1	Minimum notice periods regarding operational changes	-

GRI 403: Occupational Health and Safety

Indicator		References
403-1	Occupational health and safety management system	Occupational Health and Safety - Management System List of Declarations and Certifications
403-2	Hazard identification, risk assessment, and incident investigation	Occupational Health and Safety - Management System Occupational Health and Safety - Prevention of Occupational Accidents Occupational Health and Safety - Equipment Safety
403-3	Occupational health services	Occupational Health and Safety - Management System
403-4	Worker participation, consultation, and communication on occupational health and safety	Occupational Health and Safety - Management System
403-5	Worker training on occupational health and safety	Occupational Health and Safety - Management System Occupational Health and Safety - Prevention of Occupational Accidents Occupational Health and Safety - Equipment Safety
403-6	Promotion of worker health	Employees’ Health
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Occupational Health and Safety - Prevention of Occupational Accidents Occupational Health and Safety - Equipment Safety
403-8	Workers covered by an occupational health and safety management system	List of Declarations and Certifications
403-9	Work-related injuries	ESG Performance Data (Social: Safety, health) Occupational Health and Safety - Prevention of Occupational Accidents Occupational Health and Safety - Equipment Safety
403-10	Work-related ill health	-

GRI 404: Training and Education

Indicator		References
404-1	Average hours of training per year per employee	ESG Performance Data (Social: Recruitment, Labor Practices) (Former Showa Denko) (Former Hitachi Chemical)
404-2	Programs for upgrading employee skills and transition assistance programs	Development of Human Resources Diversity, Equity & Inclusion (DE&I) RESONAC REPORT 2023: Human Resource Strategies (P.91)
404-3	Percentage of employees receiving regular performance and career development reviews	-

GRI 405: Diversity and Equal Opportunity

Indicator		References
405-1	Diversity of governance bodies and employees	ESG Performance Data (Governance) ESG Performance Data (Social: Number of employees) Diversity, Equity & Inclusion (DE&I) Securities Report: (2) Status of Officers ①List of Officers (Japanese only) (P.50-55) Notice of Convocation of the 114th Ordinary General Meeting of Shareholders: Election of Nine Directors, Election of One Audit & Supervisory Board Member (P.4-20)
405-2	Ratio of basic salary and remuneration of women to men	-

GRI 406: Non-discrimination

Indicator		References
406-1	Incidents of discrimination and corrective actions taken	-

GRI 407: Freedom of Association and Collective Bargaining

Indicator		References
407-1	Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk	Evaluation of Suppliers Promotion of Sustainable Procurement

GRI 408: Child Labor

Indicator		References
408-1	Operations and suppliers at significant risk for incidents of child labor	Evaluation of Suppliers Promotion of Sustainable Procurement

GRI 409: Forced or Compulsory Labor

Indicator		References
409-1	Operations and suppliers at significant risk for incidents of forced or compulsory labor	Evaluation of Suppliers Promotion of Sustainable Procurement

GRI 410: Security Practices

Indicator		References
410-1	Security personnel trained in human rights policies or procedures	-

GRI 411: Rights of Indigenous Peoples

Indicator		References
411-1	Incidents of violations involving rights of indigenous peoples	-

GRI 413: Local Communities

Indicator		References
413-1	Operations with local community engagement, impact assessments, and development programs	Social Contribution Activities
413-2	Operations with significant actual and potential negative impacts on local communities	-

GRI 414: Supplier Social Assessment

Indicator		References
414-1	New suppliers that were screened using social criteria	Evaluation of Suppliers Promotion of Sustainable Procurement
414-2	Negative social impacts in the supply chain and actions taken	Evaluation of Suppliers Promotion of Sustainable Procurement

GRI 415: Public Policy

Indicator		References
415-1	Political contributions	ESG Performance Data (Social: Other)

GRI 416: Customer Health and Safety

Indicator		References
416-1	Assessment of the health and safety impacts of product and service categories	Quality Assurance Chemicals Management List of Declarations and Certifications (Quality management system)
416-2	Incidents of non-compliance concerning the health and safety impacts of products and services	-

GRI 417: Marketing and Labeling

Indicator		References
417-1	Requirements for product and service information and labeling	Chemicals Management (System for managing product safety and regulatory information, Collection and provision of product information)
417-2	Incidents of non-compliance concerning product and service information and labeling	-
417-3	Incidents of non-compliance concerning marketing communications	-

GRI 418: Customer Privacy

Indicator		References
418-1	Substantiated complaints concerning breaches of customer privacy and losses of customer data	-

GRI 2: General Disclosures 2021

GRI 3: Material Topics 2021

GRI 200: Economic

GRI: 300 Environment

GRI 400: Social

Sustainability: Site Map

ESG Information