UNISON CAPITAL

The Group’s corporate philosophy is to enhance corporate value through harmony (“Unison”) with all stakeholders. Pursuant to this Policy, the Group seeks to strengthen alignment with portfolio companies, investors, and other stakeholders by integrating ESG considerations into the investment process, thereby supporting sustainable value creation and robust risk management.

This Policy applies, in principle, to the Group and to all portfolio companies of funds managed by the Group. It also applies to companies invested in before adoption of this Policy where the Group currently maintains control.

Approach to ESG Issues
For the sustainable enhancement of corporate value, companies must address a variety of ESG-related risks and opportunities. Portfolio companies may encounter environmental issues such as climate change and biodiversity loss (“E”), social issues such as labor practices and human rights (“S”), and governance issues including transparency and accountability in decision-making (“G”).

The Group identifies the following ESG issues as potentially material to its portfolio companies and conducts appropriate due diligence.

1. Environment (E):
   Companies should address climate change, biodiversity, and related issues from both risk management and business opportunity perspectives. Depending on the nature of the business, risk management of natural capital may also be acritical consideration
2. Social (S):
   Companies should establish appropriate controls to prevent adverse impacts on human rights across their workforce and supply chains. In addition, effective utilization and development of human capital are essential to achieve sustainable growth.
3. Governance (G):
   The Group believes that significant value can be created through solutions backed by its investment experience. Effective governance requires robust management structures, transparent decision-making, strong compliance practices, and sound risk management frameworks.

Compliance Risks Related to ESG Issues
The Group ensures that portfolio companies comply with applicable laws and regulations in the jurisdictions in which they operate with respect to the following matters.

1. Environment (E):
   Climate change, biodiversity, wastewater management, waste management, soil and groundwater contamination, and other environmental considerations.
2. Social (S):
   Human rights, labor relations, occupational health and safety, training and education, employment conditions, compensation practices, customer health and safety, data privacy, and the prevention of relationships with antisocial forces.
3. Governance (G):
   Compliance with corporate governance requirements, including board independence and the diversity of board composition.

Process
The Group observes the following practices throughout the investment process.

1. Due Diligence:
   During the evaluation of prospective investments, the Group may engage external specialists, as appropriate, to conduct ESG-related due diligence tailored to the target company’s business profile.
2. Monitoring During the Holding Period:
   Throughout the holding period, the Group monitors ESG matters identified during due diligence and may support portfolio companies in establishing ESG policies, setting key performance indicators (KPIs), and preparing sustainability reports. The Group may also request periodic ESG-related reporting. In the event of a material incident, the Group expects prompt notification and works through the portfolio company’s governance structure to facilitate appropriate remediation.
3. Reporting to Investors:
   The Group provides investors with annual reporting on routine ESG activities of the portfolio companies and ensures timely disclosure of material incidents.

Stewardship
The purpose of this Policy—to promote harmony with stakeholders surrounding portfolio companies and investors, while contributing to the enhancement of corporate value—is aligned with the principles of stewardship and constructive engagement aimed at fostering sustainable growth and long-term value creation. The Group rigorously manages actual and potential conflicts of interest in accordance with applicable laws and regulations, limited partnership agreements (LPA), and its internal policies.

The Group continuously monitors developments in ESG-related regulations, supervisory expectations, and public policy initiatives in Japan and globally and incorporates relevant developments into its investment activities. Where policy matters may materially affect investors’ interests, the Group may collaborate with industry associations and other financial institutions to engage constructively with policymakers and regulators.