1. Marunouchi Innovation Partners Co., Ltd. (hereinafter referred to as the “Company”) recognizes the impact of environmental, social and corporate governance (ESG) issues on the corporate value of portfolio companies and our Company's investment performance and incorporates consideration and understanding of ESG issues as an important factor in its investment activities. This ESG policy is established in relation to our Company's policies.
2. In order to fulfill its stewardship responsibilities, we will proactively engage in dialogue with the management, investors and other stakeholders of portfolio companies to understand their initiatives to address ESG issues and will encourage portfolio companies to appropriately address ESG issues.

This ESG policy applies to investment activities and information disclosure by our Company.

In its investment decision process and post-investment monitoring, our Company will take into consideration each item related to the following ESG issues.

1. Environment

   • Environmental conservation and prevention of pollution (air, water quality, soil, noise, subsidence etc.)
   • Improvement of energy efficiency
   • Response to natural disasters
   • Waste management and response to hazardous substances

2. Society

   • Respect for human rights and avoidance of its violations
   • Ensure safe and secure working environment and appropriate labor management
   • Avoid all forms of forced and child labor
   • Eliminate discriminatory labor practices
   • Prohibit unauthorized sale of products
   • Ensure product safety
   • Avoid involvement in the manufacture of inhumane weapons and tobacco products

3. Corporate governance

   • Elimination of relations with anti-social forces
   • Prohibition of money laundering
   • Thorough implementation of business ethics (misconduct, negligence, bribery)
   • Compliance
   • Appropriate structure and operation of the management system
   • Prohibition of anticompetitive behavior
   • Internal control

4. Climate change

   We recognize the potential impact of events caused by climate change on our portfolio companies and our Company and will strive to manage risks that are important in its investment activities.

Our Company will conduct investment activities that take into account ESG-related matters as follows.

1. Screening

   Screening is conducted based on the negative screening criteria in the selection of potential investments.

2. Due diligence

   Regarding important ESG risks identified in the investment decision process, due diligence on ESG-related items will be conducted by appointing external experts as necessary .

3. Approach at the time of investment execution

   If important ESG issues are identified in due diligence, we will request potential portfolio company to address and continuously improve ESG issues identified and to comply with ESG-related laws and regulations prior to the conclusion of an investment contract.

1. We will monitor ESG issues identified at the time of investment review and, if necessary, seeks reports on ESG activities from portfolio companies and supports them in formulating ESG activity plans.
2. In the event that a serious incident related to ESG, such as an environmental problem or a violation of law, occurs at a portfolio company, we will promptly request the portfolio company to report the details and cause of the incident, and work to prevent the recurrence.

We will promptly report to investors any serious incident related to ESG that occurs at its portfolio companies.

Our Company will endeavor to understand trends in ESG and will change this ESG policy as necessary. Changes to this ESG policy shall be made by resolution of the Board of Directors.