Governance Framework

Each sustainability promotion measure is planned and proposed by the committees and divisions in charge in each area under the supervision of the Executive Officer in charge, the Director, Managing Executive Officer and CAO (Chief Administrative Officer), and is reflected in the business activities of the Group companies.
In addition, we regularly report on our activities at board meetings in order to formulate policies and goals, with important initiatives being discussed and approved before being implemented.

The Sustainability Committee, chaired by the Executive Officer and the Head of IR Headquarters, addresses issues such as the Task Force on Climate-related Financial Disclosures ("TCFD") and supply chain management that takes human rights and the environment into consideration.
The subcommittees have been established for each theme as a subordinate organization of this committee so that each subcommittee can tackle specific issues from a specialized perspective.
In addition, we hold regular meetings with Hidemi Tomita (Representative Director of the Institute for Sustainability Management), an external committee member with specialized expertise in sustainability management, to build a structure that enables us to address specific issues from a professional perspective. The purpose of these meetings is to the policies and goals. receive opinions on issues and questions related to our sustainability promotion efforts and to enhance their effectiveness.
We will continue our efforts to promote sustainability by reinforcing an effective and efficient promotion system and utilizing internal and external knowledge. Additionally, the members of the committees and subcommittees shown in the figure below are made up of personnel from the departments in each area of expertise, and are responsible for planning, formulating, and executing their respective initiatives in response to the policies and goals.

Yuichi Watanabe

Executive Officer
Head of IR Headquarters

I am Yuichi Watanabe, serving as Chair of the Sustainability Committee starting this FY 2026. Since the committee's establishment five years ago, we have made steady progress toward achieving our goals, and all of subcommittee's initiatives are advancing as planned. In addition, we are preparing for new disclosure requirements such as TNFD, SSBJ compliance, and California state law, while continuing internal discussions on these topics.

In August 2025, we announced our long-term management plan, Double Impact 2035, which sets an ambitious target: to double both net sales and operating income over the next decade by viewing environmental changes as growth opportunities. Launching this plan means assuming greater responsibility across people, resources, and capital. This is not an extension of the status quo; it represents the future we aspire to. Likewise, for the Sustainability Committee, executing new initiatives and deepening existing measures will be more critical than ever.

Our sustainability management is entering the next phase--building, implementing, and disclosing a distinctive ESG strategy for PPIH, and continuously enhancing it through transparency. The long-term plan includes achieving ¥1.3 trillion in sales from PB/OEM products and expanding collaboration with manufacturers. To realize this, constructing a responsible supply chain is essential. Based on strong partnerships with our suppliers, we will prioritize human rights due diligence and efforts to reduce environmental impact.

We share a common language through our corporate philosophy, The Source, which emphasizes "building ideal relationships with partner companies. "To date, we have implemented initiatives based on the Ministry of Economy, Trade and Industry's guidelines for respecting human rights in responsible supply chains. However, these are not the final goal. We must evolve to the next stage and strengthen these frameworks to make them more sustainable.

As Head of the IR Division, I regard dialogue with stakeholders as the most important aspect of IR activities. We conduct 550-600 investor meetings annually, and discussions on ESG topics have been increasing in recent years. Going forward, we will further expand these opportunities, sincerely listen to your valuable opinions and expectations, and reflect them in management decisions. To ensure that the PPIH Group continues to grow sustainably and remains a company society needs, we will deepen our sustainability management and engage in honest dialogue, striving to enhance both corporate and social value through bold challenges.

We sincerely appreciate your continued support and cooperation.

The PPIH Group states in its Corporate Philosophy "The Source" that it is "a company that recognizes diversity". The Diversity Management Committee ("DM Committee"), established in 2020, aims to establish a corporate culture with these high ethical standards and common sense, and to ensure that the fundamental human rights and diversity of all stakeholders are respected. In addition to strongly
promoting the creation of an environment in which women can play an active role in various positions, including executive and managerial positions, we plan, draft, and implement measures to promote diversity management, including the promotion of the activities of LGBTQ+, senior, and non-Japanese employees and the employment of people with disabilities.
In January 2023, after discussion at a meeting of the Board of Directors, the PPIH Group Diversity Policy was established.
By addressing diversity management, we will strive to further enhance our corporate value as a global company with operations in numerous countries.

Hitomi Ninomiya

Director, Executive Officer
Head of Diversity Management
Head of Design　

PPIH Group stores serve over 600 million customers annually. One of the Group's strengths in satisfying customers with diverse values and remaining the store of choice is the diversity of its employees and has been kept to create an environment of mutual recognition.
More than half of our customers are women. In order to incorporate ideas from a woman's perspective into our store operations and management, we have implemented programs that lead to career development and success for women, and have worked to enhance our benefit programs related to women's health and childcare support to create a comfortable working environment.
However, our group is not limited to only women; and many people with diverse values, personalities, and backgrounds work in our group, including foreign nationals, seniors, LGBTQ+ individuals, and people with disabilities. The company will continue to develop various systems and frameworks in order to create an environment in which all employees, including these individuals, can work to the best of their ability with peace of mind.

The logo was designed based on the concept of a colorfully shining diamond, with the idea that each and every employee is a diamond in the rough, and that the company should be a place where all employees can shine in their own way. By creating an icon to symbolize the promotion of diversity at PPIH, we aim to share and expand awareness of our vision within the company and make all employees aware of the importance of taking an interest in and proactively promoting diversity.

The DM Committee is chaired by the director in charge of diversity management and consists of multiple related departments working together in a cross-sectional manner. The DM Committee meets once a month to plan, formulate, and implement various measures to promote diversity. Important initiatives and policies are discussed and decided by the Board of Directors, and the DM Committee monitors the progress and reports to the Board.

The Compliance Committee, chaired by the director responsible for Legal and Compliance, is tasked with planning and verifying measures to prevent misconduct, as well as developing and assessing inspection and investigation procedures. Furthermore, the committee comprises 9 members, including directors, independent outside director (who serve as Audit and Supervisory Committee member) with legal qualifications, and executive officers. It is structured to facilitate advice from external legal counsel.
Additionally, to ensure the appropriateness of operations, the Committee manages matters regarding compliance and internal control, guarantees a strong sense of ethics in business activities, and strives to ensure the legal compliance and implementation of the corporate governance structure. Furthermore, responses to compliance risks are optimized by performing cross-organizational, Groupwide assessments and evaluations of these risks.