PHC Group’s vision for 2030 is to be a leader in precision technology that powers the future of healthcare. To realize this vision, we are advancing our Value Creation Plan 2027, which includes a focus on building a foundation for Environmental, Social, and Governance (ESG) sustainability. We have identified materiality topics especially relevant to our mission of contributing to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people. For each of these ESG materiality topics, we have set key performance indicators (KPIs) and targets. Across PHC Group, we are united in driving our sustainability strategy forward.

Sustainability Management Structure

Under the supervision of our Board of Directors, PHC Group has established a Sustainability Committee. Chaired by the Representative Director, President and CEO, the Committee includes Corporate Officers and Heads of Business Units. This committee is responsible for identifying the PHC Group's materiality topics, determining the related indicators (KPIs) and targets, evaluating performance, providing improvement instructions, and monitoring. Additionally, it oversees and discusses management and decision-making regarding overall sustainability initiatives, including compliance with new regulations and guidelines. Decisions made by the Committee are directed to the Sustainability Team, which includes representatives from each business unit and corporate function across PHC Group. This team oversees the implementation of initiatives to achieve sustainability targets and advances other sustainability-related activities, forming a group-wide framework for sustainability management. Matters reported, discussed, and deliberated in the Sustainability Committee are submitted and reported to the Executive Committee and the Board of Directors in accordance with internal regulations.

The Sustainability Committee meets, in principle, four times a year, with reports submitted to the Board of Directors at least twice a year. The Board of Directors manages and supervises the appropriateness, effectiveness, and risks of all PHC Group sustainability activities.

Sustainability Management Structure Chart

Sustainability Risk Management

Sustainability-related risks are assessed through close collaboration between sustainability and risk management departments, taking into account changes in both internal and external environments. Identified risks and corresponding countermeasures are evaluated by the Sustainability Committee and managed in coordination with the Risk Management Committee.