Environmental Management

• Environmental Policy
• Environmental Management System
• Environmental Audit
• Environmental Communication

---

Environmental Policy

The MOL Group established the "MOL Group Environmental Policy Statement" for preservation of marine and global environments, which is common issue facing the group and society as a whole. The contents of the policy statement shall apply to all business activities, including due diligence, M&A, and so on. We ask all our group employees to comply with the statement, and request the cooperation of our business partners, including our suppliers. In addition, we have established "Supplier Procurement Guidelines," which include the perspective of environmental coservation.as a summary of issues on which we request the cooperation of our business partners.
For details, please visit "Responsible Procurement."
The MOL Group Environmental Policy Statement has been approved at our Executive Committee.

---

Environmental Management System

The MOL Group views environmental issues as an important management topic, and it has established its environmental management system with the president & CEO as the highest authority. The Sustainability Committee, a subordinate under the Executive Committee, serves as the main deliberative body on environmental initiatives (Chairperson; Chief Financial Officer, Vice Chairperson; Chief Sustainability Officer). The Board of Directors is responsible for the oversight of environmental initiatives by holding discussions on sustainability, such as overall strategies for sustainability management, including the environment and analysis of the external environment, and making decisions on particularly important matters discussed by the Sustainability Committee. Additionally, starting from the fiscal year 2024, we have added 'Sustainability Discussions' to the agenda of the Board of Directors to enhance discussions on environmental issues at a higher management level. We discuss long-term decarbonization scenarios.
Our group's environmental management system, "MOL EMS21" has acquired ISO 14001 certification, and uses the Plan-Do-Check-Action (PDCA) cycle to promote continuous improvement. "MOL EMS21" defines the roles, authorities, and responsibilities of the Chief Executive Officer (President) and the person responsible for environmental management (the chairperson of Sustainability Committee), and defines methods to comply with laws, regulations, and requirements in ISO14001 standards, and so on.
We will enhance the transparency of various environmental data to stakeholders inside and outside the company, through timely and appropriate disclosure, build trustworthy relationships, and improve environmental awareness through participation in and support of various environmental conservation activities including environmental education.
Aiming to achieve net 0 emissions across the entire Group by 2050, as set forth in the new MOL Group Environmental Vision 2.1 formulated in June 2021, we collaborate with the Corporate Planning Division and the Headquarters of Technological & Digital Transformation to implement a variety of strategies, including the introduction of clean alternative fuels, the introduction of more energy-efficient technologies, deeper efficient navigation, and the development of low-carbon businesses, in order to promote environmental initiatives.

External Certification

Our group has acquired multiple external certifications for our environmental management system. Notably, companies within our group that have acquired ISO 14001 certification account for 62% of our group-wide revenues.

Aggregation of Environmental Data

As part of our environmental management, we have established a cross-group database to aggregate environmental impact data, including energy (fuel consumption and electricity), waste, and water. In the fiscal year 2023, we aggregated data from 64 domestic and international group companies, covering 97% of our consolidated sales revenue. We are expanding the scope of data aggregation each year to better understand and reduce the environmental impact across the entire group.

Efforts to Improve Energy Efficiency

Ship operations account for the majority of the Group's GHG emissions. To reduce GHG emissions during operations, it is important to reduce fuel consumption and improve energy efficiency. To improve energy efficiency, we are promoting the DarWIN Project*, which aims to reduce GHG emissions by optimizing ship performance through digitalization and data analysis.
By aggregating, visualizing, and analyzing a variety of operational data and basic ship data, the DarWIN Project identifies ships that have room for improvement in energy efficiency, and proposes and introduces GHG reduction measures such as daily optimization of ship operations such as route, speed, and hull position during navigation, maintenance such as hull cleaning, and specification changes using retrofit of energy-saving equipment during docking (please refer to Environmental Vision 2.2 for details). We also conducted e-learning for all employees to raise their awareness of energy efficiency improvements (93.6% participation rate in fiscal 2023).

* DarWIN stands for Digital Approach to Reduce GHG With Integrated Network

Environmental Audit

Under MOL EMS21, which has been in operation since 2001, the division in charge of the environment conducts internal audits every year, and all offices and divisions within the scope of ISO 14001 certification are subject to the audits. (※) If any significant issues are found as a result of the audits, we implement measures for improvement, along with the division in charge of the environment, and confirm the effectiveness of the measures in the next year's audit, thereby striving for continuous improvement. The audit results are reported to the Sustainability Committee, which confirms that this system is functioning effectively.

In addition, to confirm the appropriateness of the environmental management system, DNV Business Assurance Japan K.K., an external third-party auditing organization, has been conducting regular audits once a year and renewal audits once every three years since 2003, and we maintain ISO 14001 certification, the international standard for environmental management systems.

* Scope of certification：Management of Ship's Safe Operation and Environmental Technology Support, and Management of Ship Management Company (ships and ship operational activities are excluded.)
Apply to Headquarters of Dry Bulk Business (including MOL Drybulk Ltd.) , Headquarters of Energy Business, Headquarters of Product Transport Business and Corporate Organization

Environmental communication

The MOL Group proactively disseminates information on the status of environmental impact reduction, environmental conservation activities, and other initiatives, and communicates with internal and external stakeholders. Feedback from stakeholders is reviewed internally and used to improve our initiatives.

* For more information on how we communicate with stakeholders, please refer to "Stakeholder Engagement."