Corporate Governance System

Kurita Water Industries Ltd. transitioned to a company with a nominating committee, etc. for the purpose of establish a more effective and transparent corporate governance system by strengthening management supervision and business execution functions in order to further enhance the Group's sustainable growth and corporate value. Through a system that clearly separates management supervision and execution, the Company focuses on supervision based on the perspectives of various stakeholders in management supervision, while in management execution, the Company utilizes the knowledge and appropriate monitoring functions of the supervisory side to make decisions on business execution.

As of June 27, 2024, the Board of Directors consists of eight Directors (including four External Directors), including Michiya Kadota (Director and Chairman) who chairs the Board, has clarified its role as a monitoring board, and performs an objective supervisory function by nominating management members (Executive Officers including the President), in addition to determining the major direction of the Company with a focus on determination of basic policy on the Group management.

As of June 27, 2024, the Nominating Committee consists of five members, including Keiko Tanaka (External Director) who chairs the Committee, and is responsible for deciding on the content of proposals to be submitted to the General Meeting of Shareholders regarding the election and dismissal of Directors, deciding on candidates for successors to the President and Executive Officer and measures to develop them and deciding on candidates for successors to Executive Officers and measures to develop them. The Nominating Committee also deliberates and reports on candidates for the President and Executive Officer and candidates for Executive Officers.

As of June 27, 2024, the Audit Committee consists of three members, including Kenjiro Kobayashi (External Directors) who chairs the Committee, and is responsible for auditing the execution of duties by Directors and Executive Officers, preparing audit reports, and deciding on the content of proposals to be submitted to the General Meeting of Shareholders regarding the election and dismissal of Accounting Auditor.

As of June 27, 2024, the Compensation Committee consists of five members, including Masahiro Miyazaki (External Director) who chairs the Committee, and is responsible for determining the content of individual remuneration for Directors and Executive Officers, determining policies regarding the determination of the content of individual remuneration for Directors and Executive Officers, and determining individual performance evaluations for Executive Officers.

The Company has established and operates an authorization system based on the Executive Committee and the Internal Decision Approval and Review Rules for business execution decisions, including matters transferred from the Board of Directors. The Executive Committee consists of Hirohiko Ejiri (President and Representative Executive Officer) who chairs the Committee, and Executive Officers and Corporate Officers appointed by the President and Representative Executive Officer and makes decisions. Amendment and abolition of the Internal Decision Approval and Review Rules is resolved by the Board of Directors.

The Company has established the Sustainability Advisory Council to discuss matters related to domestic and　international situations surrounding sustainability, and to provide advice and reports to the Board of Directors. The Sustainability Advisory Council examines the Company's approach to sustainability management from the perspective of multi-stakeholders and a medium- to long-term perspective.