長瀬産業（8012） – 【Delay】Notice Concerning Determination of Non-Financial Goals in Medium-Term Management Plan ACE 2.0

May 10, 2022 To Whom It May Concern: Notice Concerning Determination of Non-Financial Goals in Medium-Term Management Plan ACE 2.0 Company Name: NAGASE & CO., LTD. Representative: Kenji Asakura, Stock Exchange Listings: Contact: Tokyo (Prime Market) Code 8012 Yoshihisa Shimizu, Executive Officer, General Manager, Corporate Management Dept. Tel: +81-3-3665-3103 Representative Director, President To achieve the Ideal NAGASE for 2032 (200th anniversary) as business designer that creates a sustainable future, formulated the Medium-Term Management Plan ACE 2.0 (FY2021 to FY2025), backcasting from the year 2032. Under this plan, we will create both economic value and social value under a pursuit of quality. The NAGASE & CO., LTD. board of directors established non-financial goals (KPIs) for the company to evaluate quantitatively and monitor efforts toward materialities identified for the company to achieve the Ideal NAGASE. The company today announced the following decisions regarding these non-financial goals. 1. Determination of non-financial goals (KPIs) Category KPIs Improve employee engagement* Target Group companies NAGASE (Non-Consolidated) Consolidated Group Percentage of companies conducting regular engagement surveys: 100% Total engagement survey score: 60 or better Scope 1,2 reduction: 37% or greater (compared to 2013) Reduction through renewable energy generation and purchases: 35,000 tons or more (cumulative) Scope 2 zero emissions Carbon neutrality Target NAGASE (Non-Consolidated) *Calculated for consolidated subsidiaries, treating the Prinova Group as a single company. *FY2021: 41% of group companies conducted a survey (24 companies, including companies conducting one survey only). NAGASE (Non-Consolidated) engagement survey score: 52.4 2. Background behind determination of KPIs Improve employee engagement The NAGASE Group recognizes that employee engagement is the most important factor in achieving sustainable growth. In this context, the company defines engagement as a relationship between company (organization) and employee built on mutual respect and mutual motivation. In September 2021, the first year of the Medium-Term Management Plan ACE 2.0, NAGASE & CO., LTD. conducted an engagement survey across 16 categories: Eight related to the company, four related to supervisors, and four related to the workplace. The survey was designed to identify the state of employee engagement serve as a basis for developing measures to improve engagement. The company established implementation guidelines, including the involvement of top management, independence, and transparency, and will implement these measures throughout the group in a steady and consistent manner. Carbon neutrality visualization/reduction. (Reference 1: Employee engagement survey) The NAGASE Group identified solving social/environmental issues and globalization as a materiality. The NAGASE Group recognizes that addressing climate change is an important issue, establishing a goal to achieve carbon neutrality (Scope 1 and 2)—meaning net zero GHG emissions by 2050. In addition to trading company functions, the NAGASE Group engages in manufacturing and processing. In this context, the group will endeavor to achieve carbon neutrality by categorizing operations into four quadrants along two axes: trading company/manufacturing and (Reference 2: NAGASE Group greenhouse gas emissions (Scope 1 and Scope 2)) (Reference 3: NAGASE Group Value Propositions and Materialities) To become the Ideal NAGASE as a Business Designer that Creates a Sustainable Future, the NAGASE Group identified important stakeholders, the value to deliver to each stakeholder, and materialities related to creating this value (see below).