TOENEC is working on corporate governance, environmental activities, social contributions and diversity aiming to be a trusted company that fulfills its corporate social responsibility.

CSR Philosophy

As a member of the Chubu Electric Power Group, the company is working on CSR activities based on the Chubu Electric Power Group CSR Declaration, a common philosophy throughout the Group.

Chubu Electric Power Group CSR Declaration

Fulfilling our responsibilities and meeting society's expectations

Chubu Electric Power Group, as a Multi-Energy Services Group, is committed to:
Contributing to the development of a sustainable society by giving top priority to safety and striving to both provide a stable supply of energy and protect the global environment. We aim to accomplish these goals through business activities that allow the individuality of group companies to be fully expressed while achieving group synergy in enterprises within our core competence in energy; Managing our businesses in a fair and sincere manner by observing national and international laws, regulations, and social rules, and by respecting corporate ethics; and Giving priority to dialogue with all our stakeholders and maintaining high levels of transparency and openness in our business activities.

• Customers

  We are committed to providing our customers with safe, reliable, convenient, and affordable energy services, as well as other services of value that meet their needs.

• Shareholders and Investors

  We are striving to maintain and increase profits for our shareholders and investors through efficient management and effective investment.

• Local Communities

  We are determined to contribute to sustainable local development in partnership with local communities.

• Business Partners

  We promise to deal fairly with our suppliers as equal business partners.

• Employees

  We respect individuals and are endeavoring to create a cheerful and motivating workplace.

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Corporate Governance

The company has adopted a structure with an Audit and Supervisory Committee to enable the transfer of authority from the Board of Directors to Directors, make faster and more efficient decisions, strengthen the supervisory function of the Board of Directors by granting voting rights on the Board of Directors to Directors who are members of the Audit and Supervisory Committee and further enhance corporate governance.

The company has also adopted an executive officer system in order to separate management decision-making and supervision from execution, and to expedite business execution. Also, to strengthen management supervisory functions, six of our thirteen directors are outside directors.
Moreover, in order to ensure the effectiveness of audits, the Audit and Supervisory Committee, Internal Audit Department and the accounting auditors maintain close coordination with each other.
We believe that this current system has fully secured the fairness and transparency of management.

a. Board of Directors

In principle, the Board of Directors meets once a month to decide important management matters, including medium- to long-term management strategies, the nomination and compensation of directors and important transaction with our parent company, etc. and to supervise the execution of duties by directors. In addition, to strengthen supervisory functions, six of our thirteen directors are outside directors.

Moreover, in order to strengthen the objectivity and transparency of procedures related to the nomination of directors, compensation, etc., we have established a Nomination and Compensation Committee as an optional advisory body of the Board of Directors. In response to inquiries from the Board of Directors, the Nomination and Remuneration Committee deliberates on matters such as the nomination of candidates for director and corporate auditor, the selection and removal of the Representative Director, and compensation for directors (excluding directors who are members of the Audit and Supervisory Committee), and reports thereon to the Board of Directors.

In addition, the company has established a Parent-Subsidiary Transaction Deliberation Committee as an optional advisory body of the Board of Directors in order to deliberate upon important transactions between Chubu Electric Power Co., Inc., the parent company, and Chubu Electric Power Grid Co., Inc. and Chubu Electric Power Miraiz Co., Inc., its divested subsidiaries, from the perspective of protecting the interests of general shareholders. The Parent-Subsidiary Transaction Deliberation Committee consists of independent outside directors, and in response to inquiries from the Board of Directors, deliberates upon direct transactions between Chubu Electric Power Co., Inc. and its Divested Subsidiaries, which are deliberated upon at Management Executive Meetings, and reports back to the Board of Directors.

b. Audit and Supervisory Committee

The Audit and Supervisory Committee consists of four directors who are its members (three of whom are outside directors). The Audit and Supervisory Committee formulate audit plans on the Audit and Supervisory Committee and audit the execution of duties by directors as an independent body given responsibility by shareholders. In order to do that, the corporate auditors attend important meetings such as meetings of the Board of Directors and Management Executive Meetings, hear reports from directors, etc., and inspect important documents, etc.

c. Management Executive Meetings

In addition to deliberating on the business execution basic to the management of the business execution systems of each division, the company established Management Executive Meetings to receive reports on the state of business execution, etc. In principle, meetings are held at least once a month.

d. Internal Control Committee Related to Financial Reports

The company established the Internal Control Committee Related to Financial Reports in order to deliberate upon the maintenance, operation, etc., of internal controls related to financial reporting and to operate internal control related to financial reporting efficiently.

e. Compliance Promotion Committee

The company established the Compliance Promotion Committee to strengthen and enhance the compliance risk prevention system.

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Basic Environmental Policy

The Toenec Group Basic Environmental Policy

The Toenec Group, as a group of engineering and construction companies whose core businesses are in construction of electric power supply, electrical, air-conditioning ducting and information communication equipment, will strive for the protection of the global environment and for sustainable growth. To help achieve these goals, each and every employee of the Group will control their own conduct and contribute to the development of society.

1. We will Contribute to the Realization of a Carbon-Free Society　～Toward Achieving Zero Emissions～
   • We will pursue the prevention of global warming (CO2 reduction measures) in our aim of decarbonization through our business activities.
   • We will propose solutions for a carbon-free society that meet the needs of our customers and society.
2. We Will Strive to Coexist with Nature
   • To protect our rich natural environment, we will take into account ecosystem biodiversity and water resources sustainability as we conduct our business activities and strive to prevent environmental pollution.
3. We Will Aim to Realize a Recycling-based Society
   • In addition to our efforts to curb the consumption of resources, we will strive to curb the generation of waste and minimize the volumes of waste disposed through the re-use and recycling of resources.
4. We Will Endeavor to Raise Environmental Awareness
   • We will enhance communication about the environment and energy with members of the community.
   • We will train personnel so that they take the initiative to act in an environmentally-conscious manner and contribute to society.

The Toenec Group will continuously strive to improve our environmental initiatives and disclose information about them in a timely and appropriate manner.

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Principles on Contribution to Society

Chubu Electric Power Group Basic Environmental Policy

Under the Chubu Electric Power Group CSR Declaration, we hereby establish our basic policy concerning environmental protection as follows.

The Chubu Electric Power Group will deliver environmentally-friendly, high-quality electricity in a safe, affordable, and stable manner, and provide "new forms of community" through creation of the "Community Support Infrastructure," and we will aim to grow sustainably as a "total energy service corporate group that is one step ahead."

With the aim of realizing these goals, we will practice appropriate environmental management, and each and every one of our employees shall exercise discipline and act in an environmentally conscious manner. We will contribute to the sustainable development of society through implementation of initiatives in all aspects of the energy value chain aiming to achieve a carbon-free and recycling-oriented society that is in harmony with nature.

1. We Will Aim to Realize a Carbon-Free Society Toward achieving "Zero Emissions Challenge 2050"
   • We will promote the utilization of nuclear power generation by prioritizing safety improvements and winning the trust of the local community.
   • In addition to hydroelectric power, solar power, land-based wind power and biomass, we will proactively promote the renewable energy business, including new areas such as offshore wind power and geothermal power generation.
   • We will promote initiatives to ensure electric power of a quality that allows for effective utilization of renewable energy power sources and storage batteries.
   • We will strive to construct and operate electric facilities in a rational manner with digital technology that will enable optimal energy use. We will create a customer-centered community support infrastructure to meet society's needs, thereby contributing to electrification and decarbonization of energy use in cooperation with communities and customers.
2. We Will Strive to Coexist with Nature
   • To protect our rich natural environment, we will take into account ecosystem biodiversity and water resources sustainability as we conduct our business activities.
3. We will Aim to Realize a Recycling-based Society
   • In addition to our efforts to curb the consumption of resources, we will strive to curb the generation of waste and minimize the volumes of waste disposed through the re-use and recycling of resources.
4. We Will Endeavor to Raise Environmental Awareness
   • We will enhance communication about the environment and energy with members of the community.
   • We will train personnel so that they take the initiative to act in an environmentally-conscious manner and contribute to society.

The Chubu Electric Power Group will continuously strive to improve our environmental initiatives and disclose information about them in a timely and appropriate manner.

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Diversity

Implementation Policy for the Promotion of Diverse Human Resources

Purpose

Creating an attractive company where "diverse human resources" can play active roles.

Goal

1. Fostering of a corporate culture within which employees can work vigorously.
   We are fostering a corporate culture that recognizes and supports each individual's abilities and sense of value.
2. Promotion of work-life balance
   We are redeveloping work conditions so that employees can meet their non-work responsibilities and demands, such as childcare, nursing care and community activities.
3. Improvement of competitiveness through the utilization of diversity
   We are improving competitiveness by maintaining work environments where anybody, regardless of gender, age or other such factors can demonstrate the full extent of their abilities.

Diversity 2022

The company has set clearer targets aimed at the further acceleration of diversity.

Goal: We are aiming for the "achievement of the national certification standard."

Theme	Goal	Major efforts
Promotion of female activity	Continuous improvement (increase) of the ratio of female employees and female managers for at least two consecutive years	Information dissemination, training, etc. Development of young female employees
Support for work-life balance	At least ten male employees taking childcare leave each year Zero resignations by caregivers	Promotion of flexible work styles Provision of information to field personnel
Employment of people with disabilities	Securing of an employment rate of 2.5%	Information dissemination, seminars, etc. Support for supporters

We will work on a new keyword: "new normal"

We will implement initiatives that make "female managers," "female field personnel," "male employees taking childcare leave," "telework," etc., accepted and spread among all employees as things that are "new normal" to the company.

Diversity at TOENEC

Everybody is different.
Gender, age, experience ... etc.
The ways of thinking and senses of value backed by the various differences that each individual has are truly diverse.
We believe that by empowering the company with the diverse ways of thinking and senses of value held by each and every employee, we can advance further along the path towards the achievement of our management philosophy: "Create a comfortable environment," "Aspiring to develop unique technologies" and "Build a corporation of active people."

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Human Resource Development Policy

The company has established a human resource development policy to aim at becoming a company that is friendly to people and society.

Expected human resources images (the human resources images the company expects of employees)

• People who are sincere and think from the standpoint of the other party
• People who acquire safety awareness, high technical skills and expertise
• People who are motivated and think and act at their own initiative
• People who take on challenges without fearing failure

Role and attitude of human resource development (the role of the company and the attitude of employees)

• The company will improve its systems and environment to promote employee growth.
• In human resource development, the company will respect the individuality of each and every employee and implement training systematically.
• Superiors will face their subordinates firmly and develop them with a sense of responsibility.
• Employees will have the attitude of learning positively to increase their knowledge and abilities.