Management CommitmentManagement Commitment

The Organo Group is aware of the social issues that we must help to resolve through our business activities, and we continue to promote sustainability management. Applying the advanced separation and purification technologies of the Organo Group in contributing toward protecting the environment and conserving resources is at the very core of our sustainability initiatives. This is why we are engaged in research and development focusing on environmentally friendly products and services, such as purifying and reusing water, and recovering valuables from wastewater.

There are concerns that water resource issues will become even more serious, given the rapid climate change that has occurred over the recent years. At the same time, the electronics industry, which generates significant amounts of intake water and wastewater, is the most important market for our water treatment engineering business unit. Organo sees this as an important topic to address, and we are engaging in efforts to improve wastewater reuse technologies. In addition, while chemicals are sometimes used to enhance functionality in water treatment, we are now focusing our efforts on developing new solution technologies and services that can help to conserve resources and power. By using devices such as sensors to analyze the properties of raw water and treated water, we can optimize the amount of chemicals used and reduce unnecessary usage. Organo has also developed a proprietary sewage treatment system that makes use of clusters of microorganisms that thrive in oxygen called "aerobic granular sludge." In addition to improving treated water quality, this technology also allows for high-speed treatment, contributing toward reducing energy consumption and GHG emissions during wastewater treatment.

As these initiatives show, the business operations of the Organo Group are aligned with the principles of sustainability and contribute toward environmental conservation. Going forward, we will continue to meet the needs of society not only through our core Industrial Plant Business but also through the various service solutions that have grown from it based on the increasingly important themes of "resource conservation," "energy conservation," and "labor conservation."

Fundamentally, business is about identifying social issues as needs and responding to them accordingly. In that sense, it is only natural for companies to engage in sustainability activities. Furthermore, we believe that business opportunities lie precisely in responding to issues facing society.

With this in mind, we formulated our sustainability policy in 2022 and then identified material issues that Organo must engage with over the long term in order to realize continuous business growth and build a solid business foundation. We have also established key performance indicators (KPIs) and targets in order to define and promote initiatives for these material issues. We continue to work toward achieving these targets and report regularly on our progress.

Now, I would like to bring up several of our initiatives for material issues. For "climate change action," we disclose information in accordance with TCFD recommendations, promote decarbonized management, and work toward reducing greenhouse gas emissions. For "respect for human rights," we have established a human rights policy and have declared our respect for human rights inside and outside the company in accordance with the United Nations "Guiding Principles on Business and Human Rights." We will establish systems to prevent or reduce negative impacts on human rights and will gradually promote various initiatives to address this issue. For "creating fulfilling workplaces for diverse talent to thrive," we are promoting the creation of a framework to allow our employees from diverse backgrounds to work flexibly and develop their own careers.

The Organo Group has been closely associated with water since the very beginning, and we have continued to develop technologies that make use of water. Sustainability will play an increasingly foundational role in the management of our company. In our role as a comprehensive water treatment engineering company that leverages advanced technologies developed in water treatment, we will provide environmentally friendly products and services that meet the needs of our customers; in our role as a corporate citizen of society, we will earnestly fulfill our corporate social responsibility.