Sumitomo Mitsui Trust Holdings Inc

###### Governance in the Context of Climate Change\n\nWe recognize climate change as a risk and opportunity that can have a significant impact on financial markets, and have established a governance system of supervision and execution centered on the Board of Directors. The Board of Directors, which is the supervisory body, has established the Risk Committee as its advisory body. This committee checks the execution status of the Company's climate change countermeasures and conducts flexible and in-depth discussions on climate change for appropriate supervision.\n\n- System of Climate Change Governance\n\nSumitomo Mitsui Trust Holdings\n\n|Supervisory body|Board of Directors Nominating Compensation Conflicts of Audit Committee Risk Committee Committee Committee Interest Committee|\n|---|---|\n\n|Executive body|Executive Committee Business Conflicts of Interest IT Committee Risk Management Climate Change Management Enhancement Committee Adaptation and Committee Mitigation PT SuMi Trust Nikko Asset Asset Management SuMi TRUST Bank Management|\n|---|---|\n\n###### (1) Supervision\n1. Board of Directors\nIn view of the importance of environmental and social issues related to sustainability, the Board of Directors has established a basic policy on social responsibilities that each Group company must fulfill (Sustainability Policy) and an Environmental Policy, among others, to indicate the Group's direction regarding climate change and sustainability to internal and external parties. Based on these policies, the Board of Directors receives status reports from the executives on their efforts to address climate change issues, and supervises the activities using the Risk Committee and other advisory bodies.\n\n2. Risk Committee\nAs an advisory body to the Board of Directors, the Risk Committee checks the status of the Group's adaptation status to climate change, conducts flexible and in-depth discussions on climate change, which include outside directors who possess expertise on the subject, and reports to the Board of Directors on the Group's policies\n\nThe Executive Committee, which is an executive body, has established the Business Risk Management Committee as an advisory body to the Board of Directors. It has also set up the Climate Change Adaptation and Mitigation Project Team to formulate strategies and take action on climate change across the Group. With these efforts, we have a system in place to promptly address issues related to climate change through collaborations between each business and other Group companies.\n\nBoard of Directors\n\nConflicts of Audit Committee Risk Committee Interest Committee\n\nSupervision\n\nExecutive Committee\n\nConflicts of Interest\n\nClimate Change Management Enhancement Adaptation and Committee Mitigation PT\n\nNikko Asset SuMi TRUST Bank Management\n\nThe committee set climate change related issues as one of the key topics for focused deliberations in fiscal year 2021, receives regular reports on the executive's response plans and their status, and holds discussions in light of international trends in responses to climate change.\n\n###### (2) Execution\n1. Executive Committee\nThe Executive Committee formulates medium-term policies and annual plans for addressing issues related to sustainability and climate change, establishes a system for business operations, and promotes measures to address issues related to sustainability and climate change. During this period, it uses the PDCA cycle to check the status of the measures and instructs their review to ensure flexible and appropriate response.\nIn FY2021, we reviewed the climate change adaptation system and established a project team. We also passed resolutions on the external announcement of our 2050 Carbon Neutral Commitment and joining the NZBA. The\n\nGovernance\n\nChange Adaptation and Mitigation PT, and discusses and makes resolutions on the Group's response to the climate change issues from the perspective of both risks and opportunities.\n\n2. Business Risk Management Committee\nAs an advisory body to the Executive Committee, the Business Risk Management Committee discusses matters related to the business management of the Group, ensuring financial soundness and appropriateness of operations as well as managing risk and compliance. It also discusses and monitors these matters from the perspective of risk management because climate change risks directly affect our finances.\n\n3. Climate Change Adaptation and Mitigation Project Team\nIn 2019, we established the TCFD Project Team (TCFD PT) to strengthen risk management and information disclosure related to climate change. This team has been managing risks, analyzing scenario and carrying out various climate change-related initiatives.\nMeanwhile, this fiscal year has brought a further in\n- Key Initiatives in fiscal year 2020-2021\n\nMeeting systems, etc.\n\nBoard of Directors management theme\n\nRisk Committee\n\nissues by including external members with expert knowledge\n\n - Reviewed the climate change adaptation system\n\nExecutive Committee Neutral Commitment to external\n\n Mitigation PT\n\nBusiness Risk Management Committee Commitment to external\n\nClimate Change Adaptation and Mitigation PT Mitigation PT Steering Committee\n\n- xecutive compensation In principle, compensation is paid with a combination of monthly compensation (comprising fixed compensation and individual role performance compensation), bonuses for directors and executive officers (performance-linked bonuses), and stock compensation (share delivery trust). The status of ESG-related activities and\n\ncrease in the international recognition of the importance of addressing climate change as well as the recognition of the importance of leveraging the trust bank group's cross-sectional functions to achieve carbon neutrality. Therefore, we expanded the TCFD Project Team to establish the Climate Change Adaptation and Mitigation Project Team in October 2021 with the aim to take rapid measures across all Group companies and businesses. The project team consists of SuMi TRUST Holdings' Corporate Management Departments, as well as various businesses of SuMi Trust Bank, SuMi Trust Asset Management, Nikko Asset Management, and the Europe, Middle East and Africa Division as well as the Americas Division. The project team examines and promotes measures to uphold the Carbon Neutral Commitment made by the Group in October 2021, and conducts activities across the Group, such as examining strategies and promoting specific projects, to actively promote the transition to a carbon neutral society by maximizing the Group's functions. It reports the status of the project team's activities to the Executive Committee on a regular basis.

Governance Related to Climate Change SuMi TRUST Holdings recognizes climate change as a factor of risk and opportunity that significantly impacts on financial markets and has established a governance system of supervision and execution centering on the Board of Directors. The Board of Directors, which is a supervisory body, has established the Risk Committee as its advisory body and checks the execution status of the Company's climate change countermeasures and conducts flexible and in-depth discussions on climate change for appropriate supervision. The Executive Committee, which is an executive body, has established the Sustainability Committee and the Corporate Communications Committee as advisory bodies to discuss policies and disclosures on climate change issues. Also, the Carbon Neutrality Planning and Management Department, which oversees Company-wide efforts to respond to climate change, collaborates with individual businesses and Group companies to implement Group and business initiatives in a cross-sectional manner. [...] Risk Committee (chairperson: external expert) As an advisory body to the Board of Directors, the Risk Committee carries out risk management related to climate change and reports to the Board of Directors on the Group's policies and strategies for addressing climate change. The Risk Committee also checks the status of the Group's response to climate change and conducts flexible and in-depth discussions on it with outside experts. [...] Executive Committee (chairperson: director and president) The Executive Committee formulates various policies related to our response to climate change, develops business execution systems, and promotes our climate change response. During each term, the committee also confirms the status of our response, provides instructions to review measures, and takes other steps to ensure an appropriate response. In FY2023, the Executive Committee reported on the progress made in promoting climate change action, set GHG-emission intermediate reduction targets for investment and loan portfolios in our real estate and shipping sectors in line with the NZBA framework, and discussed the establishment and revision of regulations for managing climate change risks. [...] Sustainability Committee (chairperson: officer in charge of the Sustainability Management Department) As an advisory body to the Executive Committee, the Sustainability Committee deliberates on matters related to the Group's sustainability initiatives, the Group's personnel affairs, and the operation of the personnel system. In terms of addressing climate change, the committee discusses the Group's climate change targets and its plans to transition to carbon neutrality. The Committee deliberates climate change as a risk that impacts financial value and non-financial value, from the perspective of risk management, and regularly receives reports on and monitors the status of the Group's response to climate change which was compiled by the Carbon Neutrality Planning and Management Department. In addition, the Committee discusses matters to be decided at and or reported to the Executive Committee in advance. [...] Corporate Communications Committee (chairperson: officer in charge of the Planning and Coordination Department) As an advisory body to the Executive Committee, the Corporate Communications Committee deliberates on internal and external communications and centered on the Group's corporate publicity and advertisement and corporate branding. It also discusses other important matters including the appropriateness of the system development and operation of information disclosure and the necessity of disclosure of management-related and possibly management-related information and the appropriateness of the disclosed contents. In terms of addressing climate change, the committee deliberates on matters related to the development of the Group's information disclosure system, the necessity of disclosure, and the appropriateness of the disclosed contents.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…] 当社では、気候変動を金融市場に重大な影響を及ぼすリスクと機会の要因として認識し、取締役会を中心とした監督・執行のガバナンス体制を構築しています。監督機関である取締役会は、諮問機関としてリスク委員会を設置し、当社の気候変動対応の執行状況を確認の上、気候変動に関する柔軟かつ深度ある審議を実施して適切な監督を行っています。