ESG Data resources

Companies in the scope of reporting and data coverage

	Scope of coverage	Data coverage
Non-Consolidated	Sangetsu	79.2%
Consolidated	Sangetsu,Sangetsu Vosne Corporation,Fairtone Co.(including wall coverings),Sangetsu Okinawa Corporation,Sungreen Co.,Kurosukikaku,Goodrich Global Holdings Pte., Ltd.,Goodrich Global Limited,and CREANATE Inc.,Koroseal Interior Products Holdings(including Metro)	100%

Coverage calculation method

Coverage (%)＝	Sales of companies in the scope of reporting	×100
	Sales of Sangetsu Group

Disclosure Data on Environment

Environment-related data

The data for FY2023 marked with a check mark ☑ has been assured by an independent third party.

Independent Third-Party Assurance Report

GHG Emissions（Scope1,2）

Calculation method

Total CO₂ emissions = Σ (fuel consumption × CO₂ emission factor) + Σ (purchased electricity consumption × CO₂ emission factor)

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Total for Sangetsu Group locations	Scope1	t-CO2e	Consolidated	13,675	12,755	13,958	13,828	13,253
	Scope2	t-CO2e	Consolidated	16,008	15,316	16,519	15,851	13,583
	Scope1,2	t-CO2e	Consolidated	29,683	28,071	30,477	29,679	26,836
Total for Sangetsu parent company locations	Scope1	t-CO2e	Non-Consolidated	2,365	1,999	1,717	1,539	☑1,172
	Scope2	t-CO2e	Non-Consolidated	4,273	4,234	4,275	4,129	☑3,699
	Scope1,2	t-CO2e	Non-Consolidated	6,638	6,233	5,992	5,668	☑4,871

GHG Emissions（Scope3）

Category	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
1. Purchased goods and services	t-CO2e	Non-Consolidated	365,166	337,379	364,167	394,333	460,209
2. Capital goods	t-CO2e	Non-Consolidated	836	9,295	5,005	1,476	6,176
3. Fuel- and energy-related activities not included in Scope 1 or 2	t-CO2e	Non-Consolidated	1,297	733	731	648	544
4. Upstream transportation and distribution	t-CO2e	Non-Consolidated	23,041	22,131	22,302	21,619	17,509
5. Waste generated in operations	t-CO2e	Non-Consolidated	1,419	1,058	1,015	947	1,203
6. Business trave	t-CO2e	Non-Consolidated	207	154	155	156	161
7. Employee commuting	t-CO2e	Non-Consolidated	440	424	445	487	477
8. Upstream leased assets^*1	t-CO2e	Non-Consolidated	-	-	-	-	-
9. Downstream transportation and distribution	t-CO2e	Non-Consolidated	1,390	1,316	1,224	1,310	1,069
10. Processing of sold products	t-CO2e	Non-Consolidated	4,228	3,780	2,493	3,407	3,395
11. Use of sold products^*2	t-CO2e	Non-Consolidated	-	-	-	-	-
12. End-of-life treatment of sold products	t-CO2e	Non-Consolidated	1,368	6,792	6,314	6,916	7,105
13. Leased assets (downstream)^*3	t-CO2e	Non-Consolidated	-	-	-	-	-
14. Franchises^*4	t-CO2e	Non-Consolidated	-	-	-	-	-
15. Investments^*5	t-CO2e	Non-Consolidated	-	-	-	-	-
Scope3	t-CO2e	Non-Consolidated	399,393	383,062	403,851	431,299	497,848

*1. Although the Company has leased assets (equipment), all are included in Scope 2 for electricity use, so they are excluded from the calculation.
*2. The sold products are intermediate products such as wall materials, flooring materials, and fabrics (curtains, upholstery, etc.), and are not products that use energy in the direct use stage, but rather emissions in the indirect use stage, so they are excluded from the calculation.
*3. Although the Company leases its own properties, it does not have a direct relationship with the lessee, such as specifying the use of the property, so it is excluded from the calculation.
*4. The Company does not operate through a franchise, so it is excluded from the calculation.
*5. This category is mainly for private financial institutions (commercial banks), so it is excluded from the calculation.

Energy consumption and electricity usage-related

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Sangetsu Group energy consumption	Total	GJ	Consolidated	489,591	495,641	532,410	588,235	580,869
Sangetsu parent company energy consumption	Total	GJ	Non-Consolidated	144,695	141,259	133,264	129,067	☑121,626
	Electricity	GJ	Non-Consolidated	104,850	107,353	108,740	107,224	☑100,295
	Gas (city gas, natural gas)	GJ	Non-Consolidated	22,222	20,201	12,280	11,503	☑8,718
	Fuel (heavy oil A, gasoline, kerosene, diesel oil)	GJ	Non-Consolidated	17,623	13,705	12,244	10,340	☑11,206
	Heat (steam, hot water, cold water)	GJ	Non-Consolidated	0	0	0	0	☑1,407
Power Consumption		kwh	Consolidated	33,546,819	35,116,971	37,290,854	37,294,156	36,967,993
Power Consumption		kwh	Non-Consolidated	10,516,513	10,767,599	10,906,705	10,754,649	10,754,309
Solar power generation amount		kwh	Non-Consolidated	0	0	0	0	396,733

Waste-related

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Sangetsu Group Waste Discharge	Total	t	Consolidated	7,798	10,531	9,879	9,006	10,461
	Recycled waste discharge	t	Consolidated	4,858	6,467	6,109	6,182	6,245
	Non-recyclable waste discharge	t	Consolidated	2,940	4,064	3,770	2,824	4,216
	Hazardous waste discharge (medical, designated as hazardous)	t	Consolidated	0	0	0	0	0
Sangetsu Waste Discharge	Total	t	Non-Consolidated	4,195	4,098	4,283	4,134	4,021
	Recycled waste discharge	t	Non-Consolidated	3,060	3,103	3,417	3,387	2,872
	Non-recyclable waste discharge	t	Non-Consolidated	1,134	995	866	747	1,147
	Hazardous waste discharge (medical, designated as hazardous)	t	Non-Consolidated	0.5	0.4	0.4	0.3	1.9
Recycling Rate^*		％	Consolidated	65.2	64.5	65.7	64.6	63.1
Recycling Rate^*		％	Non-Consolidated	76.4	77.6	81.7	83.7	74.5
Sample books recycled		Books	Non-Consolidated	12,849	15,344	62,915	77,262	119,604

*Calculation method: (valuable materials + recyclable waste) ÷ (general waste + valuable materials + recyclable waste + simple disposal + hazardous waste) × 100

Water usage

Indicator	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Water intake by Sangetsu Group	Thousand cubic meters	Consolidated	82,459	79,195	78,924	81,797	76,456
Sangetsu Group wastewater volume	Thousand cubic meters	Consolidated	82,459	79,195	78,924	81,797	76,456
Water intake by Sangetsu	Thousand cubic meters	Non-Consolidated	27,087	25,779	26,954	25,478	29,910
Sangetsu parent company wastewater volume	Thousand cubic meters	Non-Consolidated	27,087	25,779	26,954	25,478	29,910

Environmental preservation costs

Category		Description of major initiatives	Unit	Scope of tabulation	FY2019		FY2020		FY2021		FY2022		FY2023
Category		Description of major initiatives	Unit	Scope of tabulation	Investment	Expenditure	Investment	Expenditure	Investment	Expenditure	Investment	Expenditure	Investment	Expenditure
Business area cost	Total	-	Millions of yen	Non-Consolidated	11.3	366.2	78.8	234.8	118.4	46.6	14.9	33.2	144.7	74.6
	Pollution prevention cost	Prevention of air pollution, water pollution, soil contamination, etc.	Millions of yen	Non-Consolidated	-	1	-	-	-	-	-	-	-	-
	Global environmental preservation cost	Prevention of global warming, energy conservation, adoption of environmentally friendly vehicles, etc.	Millions of yen	Non-Consolidated	11.3	157.6	70.7	38.9	118.4	4.3	14.9	1.5	144.7	-
	Resource recycling cost	Effective utilization of resources, waste-related initiatives, etc.	Millions of yen	Non-Consolidated	-	207.6	8.1	195.9	-	42.3	-	31.7	-	74.6
Upstream & downstream costs		Green procurement, product recycling, addressing sick house issues, etc.	Millions of yen	Non-Consolidated	-	3.5	-	2.4	-	172.7	-	183	-	165.4
Administration cost		PDCA initiatives for environmental management system, greening, etc.	Millions of yen	Non-Consolidated	-	5	-	1.5	-	2.4	-	1.1	-	1.5
R&D cost		Development of environmentally-friendly products, etc.	Millions of yen	Non-Consolidated	-	10.2	-	15.2	-	4.3	-	3.8	-	9.3
Social activity cost		Donation and support for natural conservation activities and organizations	Millions of yen	Non-Consolidated	-	2	-	1.1	-	0.4	-	0.4	-	3.2
Environmental remediation cost		Environmental pollution restoration and preservation	Millions of yen	Non-Consolidated	-	0	-	-	-	-	-	-	-	0
Total					11.3	386.9	78.8	255	118.4	226.4	14.9	221.5	144.7	254

Results of environmental preservation

Category	Environmental performance indicators	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Environmental conservation benefits involving resource inputs to business activities	Total volume of energy inputs	GJ	Non-Consolidated	144,695	141,259	133,264	129,067	121,626
	Volume of water resource inputs	m³	Non-Consolidated	27,087	25,779	26,954	25,478	29,910
Environmental conservation benefits involving environmental footprint and waste originating from business activities	Volume of greenhouse gas emissions	t-CO2e	Non-Consolidated	6,638	6,233	5,992	5,668	4,871
	Waste Discharge	t	Non-Consolidated	4,195^*	4,098	4,283	4,134	4,021
	Volume of water displacement	m³	Non-Consolidated	27,087	25,779	26,954	25,478	29,910
Environmental conservation benefits involving goods and services produced by business activities	CO₂ reduction by weight saving Note: (Floor tiles: calculated on the basis of product subject to acquisition of Carbon Footprint of Product certification )	t	Non-Consolidated	23,145	22,787	26,894	10,019	10,622
Other results of environmental preservation	Power generated by solar power system	kWh	Non-Consolidated	0	0	0	0	396,733

* In FY2019, the waste discharge increased due to a large amount of discontinued and custom-order products and the renovation of the fifth floor of the head office

Economic impact associated with environmental conservation initiatives

Category	Description of major initiatives	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Cost reduction	Reuse of packaging materials (paper tubes, cores used for flooring materials, etc.), reduction of fuel costs by shifting to eco-friendly driving practices, etc.	Millions of yen	Non-Consolidated	11.3	14.2	10.7	8.6	0.2
Revenue	Revenue associated with solar power installation, gain on sales as a result converting unneeded materials into valuable resources.	Millions of yen	Non-Consolidated	22.2	20.9	20.8	21.3	19.2

Compliance with environmental laws and regulations

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Cost of environmental fines and penalties	Total	Yen	Non-Consolidated	0	0	0	0	0
	Water quality and quantity	Yen	Non-Consolidated	0	0	0	0	0
	Waste	Yen	Non-Consolidated	0	0	0	0	0

*There were no accidents or legal violations in FY2023 that had a significant impact on the environment.

Disclosure Data on Social

Employee composition (as of March 31 of each year)

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Number of employees		Persons	Consolidated	2,241	2,359	2,453	2,547	2,645
Number of employees	Total	Persons	Non-Consolidated	1,161	1,185	1,194	1,197	1,238
	Men	Persons	Non-Consolidated	725	733	742	744	775
	Women	Persons	Non-Consolidated	436	452	452	453	463
Number of employees by age	Under 30 years old	Persons	Non-Consolidated	354	333	325	304	315
	30 to 50 years old	Persons	Non-Consolidated	663	688	688	712	734
	Over 50 years old	Persons	Non-Consolidated	144	164	181	181	189
Average length of service	Total	Age	Non-Consolidated	37.0	37.0	37.2	37.5	37.3
	Men	Age	Non-Consolidated	39.4	39.2	39.0	39.2	39.0
	Women	Age	Non-Consolidated	32.8	33.3	34.0	34.6	34.4

Number of hires / retention rate

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
New hires	Total	Persons	Non-Consolidated	46	79	74	70	102
	Men	Persons	Non-Consolidated	22	47	44	46	64
	Women	Persons	Non-Consolidated	24	32	30	24	38
Mid-career employee recruits	Total	Persons	Non-Consolidated	2	10	14	18	49
	Men	Persons	Non-Consolidated	2	6	7	14	38
	Women	Persons	Non-Consolidated	0	4	7	4	11
Mid-career employee recruitment ratio^*1		％	Non-Consolidated	4	11	18	21	51
Number of post retirement employees		Persons	Non-Consolidated	34	41	45	44	47
Average length of service	Total	Years	Non-Consolidated	15.8	15.8	15.8	16.1	15.2
	Men	Years	Non-Consolidated	18.3	18.1	17.9	17.9	16.9
	Women	Years	Non-Consolidated	11.5	11.8	12.3	12.9	12.1
Number of permanent employee resignations (excluding resignations by retirement age retirees and employees assuming office as Directors)		Persons	Non-Consolidated	34	36	53	48	36
Attrition rate among full-time employees	Total	％	Non-Consolidated	2.7	2.8	4.1	3.7	2.8
	Resignations due to personal circumstances	％	Non-Consolidated	2.7	2.8	4.0	3.7	2.1
	Resignations due to company reasons	％	Non-Consolidated	0	0	0.1	0	0.7
Attrition rate of employees with less than three years of service	Total	％	Non-Consolidated	34.1	15.7	23.0	9.1^*	4.0^*
	Men	％	Non-Consolidated	30.0	9.5	21.1	5.9^*	3.8^*
	Women	％	Non-Consolidated	37.5	25.0	26.1	14.3^*	4.2^*

*Attrition rate of employees with less than three years of service in FY2022 is for the two-year period of FY2022 and FY2023, and the attrition rate in FY2023 is for the one-year period of FY2023.
*1 Mid-career employee recruits ratio is a ratio of mid-career recruits to total recruits for two years.

Remuneration

Indicator	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Gender wage gap	％	Non-Consolidated	73.66	76.35	79.52	80.90	81.60

Diversity of employees

Indicator	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Ratio of female managers^*1 (as of April 1 of each year)	％	Non-Consolidated	12.0	14.8	17.2	17.9	20.1
Employment rate of persons with disabilities	％	Non-Consolidated	3.1	3.2	3.4	3.9	3.5
Ratio of working mothers^*2	％	Non-Consolidated	32.3	34.4	37.4	40.5	42.6

*1 The figures for FY2023 are as of April 1, 2024. The figures for FY2018 to FY2022 are calculated in the same way.
*2 Number of female employees with children under the age of 18 divided by the number of full-time female employees

Work-life balance

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Average total work hours		Hours	Non-Consolidated	2,048	1,999	2,054	2,030	2,048
Average number of paid vacation days taken (October to September of following year)		日	Non-Consolidated	12.5	10.9	11.9	12.7	13.5
Paid vacation days taken rate (October to September of following year)		％	Non-Consolidated	66.5	58.4	63.1	68.2	73
Number of employees taking childcare leave	Total	Persons	Non-Consolidated	30	43	44	50	60
	Men	Persons	Non-Consolidated	0	9	9	13	24
	Women	Persons	Non-Consolidated	30	34	35	37	36
Rate of employees taking childcare leave (Ministry of Health, Labour and Welfare standard)	Total	％	Non-Consolidated	46.9	60.6	65.7	64.9	91.9
	Men	％	Non-Consolidated	0	24.3	28.1	32.5	82.8
	Women	％	Non-Consolidated	90.9	100	100	100	97.3
Rate of employees taking childcare leave (Sangetsu Medium-term Business Plan standard)	Men	％	Non-Consolidated	-	-	-	-	100
Number of employees on temporary part-time work while child-rearing		Persons	Non-Consolidated	76	79	94	110	112
Number of employees taking caregiver leave		Persons	Non-Consolidated	1	1	1	0	0

Training and education

Indicator	Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Total training costs	Millions of yen	Non-Consolidated	72	75	88	102	230
Number of training days per employee	Days	Non-Consolidated	1.1	3.1	2.3	2.2	3.0
Number of training hours per employee	Hours	Non-Consolidated	9.1	25.0	18.2	17.6	19.4
Training costs per employee	Thousand of yen	Non-Consolidated	62	63	74	85	186

Occupational health and safety

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Number of employee fatalities due to work-related accidents	Total	Persons	Non-Consolidated	0	0	0	0	0
	Employee	Persons	Non-Consolidated	0	0	0	0	0
	Subcontractor	Persons	Non-Consolidated	0	0	0	0	0
Frequency rate of work-related accidents		ー	Non-Consolidated	0.84	0.84	1.63	0	0
Severity rate of work-related accidents		ー	Non-Consolidated	0.004	0.003	0.002	0	0
Lost Time Injuries Frequency Rate		ー	Non-Consolidated	0.4	0.4	1.6	0	0
Number of employees who have undergone safety drills and training		Persons	Non-Consolidated	194	148	573	807	892
Number of Employees with Mental Health Issues		Persons	Non-Consolidated	11	8	25	12	14
Rate of Occurrence with Mental Health Issues		％	Non-Consolidated	0.92	0.66	2.02	0.93	1.09

Social Contribution

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Social contribution activities of Sangetsu Volunteer Club	Total	Cases	Non-Consolidated	31	23	40	78	87
	Child welfare facilities etc.	Cases	Non-Consolidated	18	20	33	55	59
	Other activities	Cases	Non-Consolidated	13	3	7	23	28
Matching Gift		S-mile	Non-Consolidated	4,789	9,335	11,751	15,129	13,238
Social contribution activities		Thousand of yen	Consolidated	4,887	5,033	6,187	24,192	43,984

Disclosure Data on Governance

Governance Structure

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023	2024年度
Number of Directors (as of June 30 of each year)	Total	Persons	Non-Consolidated	7	7	7	7	7	7
	Outside Directors	Persons	Non-Consolidated	4	4	4	4	4	4
	Female Directors	Persons	Non-Consolidated	1	1	1	1	1	3
Ratio of Outside Directors		％	Non-Consolidated	57.1	57.1	57.1	57.1	57.1	57.1

Number of Board of Directors and Committee meetings / attendance rate

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Board of Directors (Attended by Outside Directors and Internal Directors)	Meeting frequency	Times	Non-Consolidated	13	14	13	15	13
	Attendance rate	％	Non-Consolidated	100	100	100	100	100
Audit and Supervisory Committee (Attended by Outside Directors for FY2015 to FY2018, and by both Outside Directors and Internal Directors for FY2019 to FY2020)	Meeting frequency	Times	Non-Consolidated	13	12	14	17	14
	Attendance rate	％	Non-Consolidated	98	100	100	100	100
Nomination and Remuneration Committee (Attended by Outside Directors and Internal Directors)	Meeting frequency	Times	Non-Consolidated	7	10	11	16	16
	Attendance rate	％	Non-Consolidated	100	100	100	100	100
Management Meeting (Attended by Internal Directors)	Meeting frequency	Times	Non-Consolidated	7	7	6	11	10
Management Meeting (Attended by Internal Directors)	Attendance rate	％	Non-Consolidated	100	100	100	95.5	99.1
Business issue review meetings (Attended by Outside Directors and Internal Directors)	Meeting frequency	Times	Non-Consolidated	7	10	11	11	11
	Attendance rate	％	Non-Consolidated	70.9	75.7	81.8	88.3	97.6
ESG Committee (Attended by Internal Directors)	Meeting frequency	Times	Non-Consolidated	4	4	4	4	4
ESG Committee (Attended by Internal Directors)	Attendance rate	％	Non-Consolidated	100	100	100	100	100

Compliance,Risk Management

Indicator		Unit	Scope of tabulation	FY2019	FY2020	FY2021	FY2022	FY2023
Number of helpline reports	Total	Cases	Non-Consolidated	15	11	5	6	11
	Compliance	Cases	Non-Consolidated	5	4	1	4	2
	Harassment	Cases	Non-Consolidated	10	7	4	2	9
Number of Labor Standards Act violations		Cases	Non-Consolidated	0	0	0	0	0
Number of Serious Legal violations		Cases	Non-Consolidated	0	0	0	0	0
Political contributions		Yen	Non-Consolidated	0	0	0	0	0
Corruption-related fines and settlement costs		Yen	Non-Consolidated	0	0	0	0	0
Number of employees dismissed due to violation of anti-corruption policy		Persons	Non-Consolidated	0	0	0	0	0

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