SHA has established the Sustainability Committee for the purpose of continuous and organizational implementation of ESG initiatives. With the aim of strengthening the sustainability promotion system, the Committee is composed of the President & Chief Executive Officer as Chief Sustainability Officer, the Director in charge of ESG promotion Department as Chief Sustainability Operator, all full-time directors, the compliance officer, and all heads of departments of SHA. This Committee sets materiality and target (KPI) and reviews them at least once a year, and develops the system to promote sustainability. Matters deliberated by the Committee are approved and/or instructed, and various actions are taken based on them. The progress of initiatives and the status of engagement with stakeholders are reported regularly to the Committee, and reports are also made to the Board of Directors of SHR as appropriate. The Committee will meet at least once every three months in principle (held nine times in fiscal year 2023.) With the Committee at the core, SHA will work to implement sustainability initiatives across the organization and contribute to the resolution of social issues. [...] SHA has established a Sustainability Committee as the decision-making body for sustainability issues. It meets at least once every three months to define policies, targets, and various measures related to sustainability and to discuss climate change risks (transition risks and physical risks) and material issues in relation to mitigation of and adaptation to climate change. [...] change-related issues, the Chief Sustainability Operator was appointed as the Director in charge of climate change, with the President & Chief Executive Officer as the Chief Sustainability Officer, in order to strengthen the promotion of climate change initiatives and clarify its responsibilities. These activities aimed at mitigating and adapting to climate change are reported as appropriate to the President & Chief Executive Officer, the Board of Directors of SHA, and the Board of Directors of SHR. In 2021, the Sustainability Committee expanded its membership to include the heads of all departments in an effort to raise awareness of sustainability and strengthen the organizational structure for promoting awareness. And in 2022, the "ESG Promotion Department" was established as a department dedicated to overseeing and managing ESG-related operations to strengthen the promotion system for addressing climate change.