CSV (Creating Shared Value) Goal Setting for FY2021

According to Gunze's materiality (material CSR challenges), the CSR Committee drew up specific action plans. Each business division/headquarters operation department made an inventory of technologies and knowledge it possesses and specified CSV goals by taking SDGs (Sustainable Development Goals) into consideration. This was done to unify non-financial information.

To articulate the correlation between social issues and CSV goals, we have also included in the mapping seven core subjects in social responsibility stipulated by the ISO26000 international guidelines.

Gunze's Materiality(Material CSR Challenges)	ESG（ISO26000 Core Subjects）	Gunze's Main CSV Goals	KPI in 2021
1.QOL improvement
	S（Consumer Issues）	●Development of high-value added medical devices(bioabsorbable products) ●Development of stress-free products(completely seamless items,CUT OFF configuration,etc.) ●Sales expansion of sports category clothing ●Presymptomatic state-related business(Preventive care,etc.) ●Sales expansion of EC business (Easy to buy)	Sales figures of QOL improvement products
2. Creation of an environment with abundant greenery, with ongoing response to environmental issues
	E（The Environment）	●Climate change countermeasures ●Waste reduction ●Expansion of environmental business ●Use of environmentally friendly raw materials and supplies（Organic cotton, recycled materials etc.)	CO₂ emissions: 23% reduction(Compared to Y2013 BM) Total waste emissions: 12% reduction(Compared to Y2012 BM) Sales figures of environmentally friendly products
3. Improvement of workplace environment and workstyle reform
	S（Labor Practices）	●Health promotion for employees and families ●Acquisition of METI's Health and Productivity Management Organization Recognition Program(White 500) certification ●Handling COVID-19 (Includes after COVID-19, Promoting remote work, Promoting web meeting, Improve of Suppy chain) ●Promotion of work-life balance（Promoting to take paid leave, Flexible work rules） ●Business process reform through groupware renewal(Avoiding excessive reliance on individual skills)	Number of days of paid leave taken: 14 days / year Female employee with transfer ratio: 13%
	S（Human Rights）	●Raising awareness of human rights and enhancement of diversity(Employment of people with disabilities and establishment of a support system) ●Empowering women at work
4. Creation of a better regional community and society
	S（Community Involvement and Development）	●Strengthening ties with regional administrative policies and implementation of regional revitalization initiatives ●Participation in health promotion programs in regional communities ●Creation of a company open to regional communities(factory tours,invitation to company events, festivals, etc.) ●Entering into a regional Comprehensive agreement with Osaka Prefecture, Kyoto Prefecture and Osaka City ●Promote running Gunze' s love earth club ●Promote holding culture and sports events	Environmental conservation in Midosuji-Avenu Providing underwear for children Promote having underwear classes: 10 times / year Promote holding culture and sports events and dispating teachers
5. Enhancing Resource Circulation Strategy for Plastics
	S（Consumer Issues）	●Development of highly functional packaging materials(Extension of expiration dates, improvement of safety for frozen foods)	Expand sales of pinhole resistant film which uses under freezing conditions Develop biomass plastic products
	E（The Environment）	●Conversion from petroleum-derived materials to naturally-derived materials ●Circular factory construction (Reduction of energy consumption and waste plastic)
Others: The foundation that supports GUNZE
	G（Organizational Governance）	●Sustainability Management ●Development of control enviroment for corporate ethics and legal compliance ●IR activities(Constructive engagement with investors) ●Establishment of a risk management system ●Data security and privacy protection	Risk Management Committee,Holding a Sustainability committee Number of IR support: 300 people / year Utilize Global Compact Network in Japan
	S（Fair Operating Practices）	●Compliance with Gunze Group Supplier Code of Conduct(Procurement of raw materials) ●Legal and regulatory compliance in business transactions and its instillation within the company