The Chori Group’s spirit of coexistence and co-prosperity, which has remained unchanged since the Company’s founding, declares that we aim “to develop our business for the benefit of the world and people and to always strive to grow together with our customers.” Guided by this unwavering spirit, we work unstintingly for “the betterment of society as members of the global community,” as set forth in our corporate philosophy. In keeping with our corporate slogan, “Making your dreams come true,” we remain firmly dedicated to achieving a sustainable society by continuously growing as a group through our steadfast approach to materiality.

At the Chori Group, we engage in business with sustainability at the forefront of our minds so that we can contribute to the realization of a better society as global citizens, as set forth in our corporate philosophy. We strive to strengthen corporate governance by complying with laws and social norms, carrying out effective and efficient business operations, and ensuring the credibility of our financial reports, while positioning the Board of Directors as a body for making strategic decisions and overseeing business operations. With regard to our general efforts to address the issue of sustainability, we established the Sustainability Promotion Preparatory Committee in July 2023 and held discussions on the Chori Group Basic Policy on Sustainability and material issues with a view to promoting sustainability—a goal set forth in Chori Innovation Plan 2025. Following the discussions during this preparatory period, the Sustainability Promotion Committee was established on April 1, 2024.

Change in Sustainability Promotion Structure

In building a management foundation for sustainable growth, the Chori Group recognizes the importance of taking a proactive approach to environmental issues, cooperating with suppliers in corporate social responsibility (CSR) procurement, undertaking measures related to occupational safety management, and implementing initiatives for regional and social development. In Chori Innovation Plan 2025, which was disclosed on April 28, 2023, we set forth VISION2030—centered on the key themes of “sustainability,” “well-being,” and “innovation”—to steadily implement three basic strategies for becoming a corporate group that continues to evolve and change on a global scale, underpinned by its exceptional capabilities and expertise, while enhancing corporate value. With regard to the overall sustainability strategy, the abovementioned Sustainability Promotion Preparatory Committee examined Chori’s sustainability-related policies, material issues, and value creation process, among other matters. Subsequently, based on discussions by the Sustainability Promotion Committee and the Executive Committee, in April 2024 the Board of Directors determined four material issues and 14 related key themes that it considered to be of particular importance to the Chori Group and its stakeholders and which should be addressed on a priority basis. Chori announced these material issues in combination with its sustainability-related policies. The Chori Group will promote effective activities to address these material issues and contribute to the creation of a sustainable society.

Materiality Identification Process

1. Establishment of Risk Management Regulations
The Chori Group has established and operates its risk management regulations for the purpose of identifying potential risks in its business activities, reducing risks and preventing crises from occurring during the course of normal business conditions, establishing a system for responding to crises that may present a significant impact on its business activities, and responding promptly and appropriately to prevent the situation from deteriorating and recover and normalize the situation as swiftly as possible.

2. Risk Management under Normal Business Conditions
Under the guidance of the risk management deputy officer (the president of the Company), the risk management promotion officer (the general manager of the Corporate Planning Division) and the Corporate Management Department (the organization responsible for risk management) identify material issues within the organization; formulate various measures to mitigate, prevent, and promptly detect risks that may exist within the Company; and implement the necessary educational and training programs in a voluntary and systematic manner. They also follow up on the results of crisis response measures, verify their impact, identify issues, and seek measures toward improvement.
The risk management regulations individually define the Company's risks based on the following broad categories.

3. Crisis Response Measures
In the event of a crisis, placing the highest priority on ensuring the safety and protecting the lives of each individual, the following measures must be taken in accordance with Company regulations: communicate and report details of the crisis based on the crisis communication system; establish a crisis response headquarters under the direction of the risk management deputy officer; and execute tasks, communicate the emergency, report the results of investigations, and implement measures to prevent recurrence through the crisis response headquarters.

Recognizing the ongoing need to address sustainability issues, the Chori Group has established non-financial targets in an effort to “promote ESG management,” one of the basic strategies of Chori Innovation Plan 2025.