Through our Risk Management and Compliance Committee, and based on our Risk Management Policy, the Nissha Group conducts centralized management over risks related to smooth business operations. Once a year, based on the business models for each company and the business organizations, we prioritize and appropriately control cross-group risks.

The Group has set Act with Integrity (We act with integrity and maintain the trust placed in us) as one of the Shared Values that are principle of employee behavior. And we declared that each officer and employee should act in good faith and continue to be a trusted company. We established the Corporate Ethics and Compliance Guidelines, which sets out the basic ideas concerning corporate ethics and compliance that each officer and employee is expected to follow.

Nissha has established a Risk Management and Compliance Committee chaired by Director of the Board, Senior Executive Vice President (in charge of legal affairs) and composed of all Internal Directors of the Board. The Risk Management and Compliance Committee holds a general meeting once a year, confirms progress on a quarterly basis, and reports to the Board of Directors each year on the status of activities. The Board of Directors oversees the activities of the Risk Management and Compliance Committee, discusses reports from the Committee, and gives improvement instructions as necessary.

The Risk Management and Compliance Committee carries out risk assessments on cross-group risks. The corporate divisions that manage the key risks selected through this risk assessment set Key Performance Indicators (KPIs) and action items, and work to mitigate these risks through their activities.

To further reduce risk stemming from business activities, in addition to risk assessments within the corporate divisions responsible for risk, risk priority levels are considered at the business divisions and Group companies level as well. At overseas Group companies, high-priority risks are identified by each company, and the corporate divisions, business divisions, and risk management coordinators responsible for those risks review their priority and appropriateness. In all cases, the final step is to select key risks following the process of confirming their appropriateness by the General Manager from a business management perspective.

As a result of the risk assessment, the key initiatives common to the Nissha Group in the fiscal year ending December 2026 have been selected: business continuity, labor and human rights (occupational safety and health), information systems, labor and human rights (discrimination and harassment), infringement of intellectual property rights, and violation of competition laws (only for Group companies in Japan; risks related to the SME Entrusted Transactions Fairness Act).

The Risk Management and Compliance Committee promotes corporate ethics and compliance activities throughout the entire Group. All Nissha Group bases in Japan and overseas appoint managers in charge of promoting corporate ethics and compliance.

The Group designates every October and November as Corporate Ethics and Compliance Months, and provides groupwide training at all bases in Japan and overseas. This simultaneous training is provided not just for officers, full-time, contract, and temporary employees, but for managers of subcontractors and even part-timers.

At the Group, in addition to company-wide simultaneous training, we also hold training by external instructors aimed at officers.

The Group has not only established an Internal Reporting Code in our company regulations based on the Whistleblower Protection Act domestically, but has also established a hotline consultation service which is available to all employees of the Nissha Group in Japan, as well as former employees who have left the company within the past year. Overseas, too, we have established consultation services for all Group companies, where employees can discuss matters either in English or in their native language 24 hours a day, 365 days a year, by email or other means.

We have also set up a hotline for consultations that job seekers and students (in Japan only), as well as suppliers to the Group (including freelancers), can use. These are for the purposes of quickly identifying the facts about illegal, unfair, or unethical conduct by an organization or individual, minimizing the risk of a crisis, promoting ethical and legal compliance, and ultimately enhancing our corporate value.