Evaluation of Effectiveness of the Board of Directors | Sustainability

The effectiveness of the Board of Directors is evaluated once a year. The Board of Directors deliberate and consider specific improvements based on the results, and ongoing efforts are made to improve the functioning of the Board by implementing those measures.

Issues in the 2023 Board of Directors’ effectiveness evaluation and initiatives in 2024

Issues identified in the 2023 effectiveness evaluation		Results of initiatives in 2024
Issue 1	Need to improve the effectiveness of the monitoring of important investment projects, and other such matters	The Board of Directors of Directors will continue to work on more effective monitoring by creating a list of important investment projects that need to be monitored, properly ascertaining their circumstances, and ensuring timely and appropriate reporting.
Issue 2	Need to set the agenda for Board of Directors’ meetings in line with the objectives of transitioning to a company with an audit and supervisory committee	The Board of Directors will work to enhance discussions by setting agendas in line with the objectives of the transition to a company with an audit and supervisory committee and by holding discussions at each phase toward formulating the 5th Medium-Term Business Plan.
Issue 3	Need to revise the formulation process for the next medium-term business plan and enhance discussions

2024 Board of Directors’ effectiveness evaluation

Implementation period: December 2024
Method of evaluation of effectiveness: Survey (named/multiple choice/descriptive)
Target: All directors (9 persons)

The effectiveness of the Board of Directors has been recognized as being secured, as the role, composition, and operation, etc., of the Board of Directors have all received positive evaluations in the 2024 Board of Directors’ effectiveness evaluation.

Issues identified in the 2024 effectiveness evaluation		Efforts to make in 2025
Issue 1	Need for enhanced discussions of medium- to long-term strategies	Establish a new strategic discussion forum chaired by an outside director for medium to long-term discussions
Issue 2	Need for improved information exchange among directors	Establish additional informal meetings for outside directors to provide information
Issue 3	Need for further improvements to the operating format of the Board of Directors	Expand the content of pre-meeting briefings for outside directors on the content of Board of Directors’ meeting proposals and other important matters Ensure adequate time is allocated at Board of Directors’ meetings