Launch of Impact Investment Report Production Service - Clarifying Corporate Impact from the Perspective of Impact Investors, Analyzing Companies from Non-Financial and Financial Viewpoints

Social Impact Research Co., Ltd. (Headquarters: Tokyo, Representative: Taku Kumazawa, hereinafter "the Company") has launched the "Impact Investment Report Production Service" as a new service to support companies in enhancing their sustainability disclosure, integrated reporting, and investor dialogue.

In recent years, corporate sustainability disclosure has shifted from merely increasing the volume of information to a competition to clearly communicate "what is truly important for corporate value." What investors want to know is not just the comprehensiveness of individual ESG measures, but the causal relationship of how the materiality defined by the company leads to business competitiveness, financial results, and future corporate value enhancement.

To date, the Company has supported Sony Corporation, LIXIL Corporation, SOMPO Holdings, Sekisui Chemical Co., Ltd., Kagome Co., Ltd., Nipponham Co., Ltd., and has also served as an advisor to two integrated report production companies, supervising and supporting the production of approximately 50 integrated reports.

Based on this practical experience, the Company will now begin producing impact investment reports that connect non-financial information to financial results and corporate value, starting from the company's materiality.

Background of Service Development

Many companies have made progress in identifying materiality and organizing sustainability policies, but face the following challenges:

- Materiality is not sufficiently linked to management strategy and business portfolio
- The causal relationship between non-financial information and financial KPIs is ambiguous
- Integrated reports and sustainability disclosures remain as "introductions to good initiatives" and lack persuasiveness for investors
- Language and perspectives are fragmented among IR, sustainability, and corporate planning departments

To address these challenges, the Company's core support is not limited to disclosure assistance or evaluation reports, but focuses on transforming materiality into a blueprint for corporate value enhancement.

Overview of New Services

Our new service consists of the following three components:

1. Materiality Diagnosis Report

Based on corporate integrated reports, securities reports, sustainability-related disclosures, etc., we diagnose materiality settings and disclosure content. In particular, from the perspectives of investors, corporate value, and materiality-driven disclosure, we organize the following points:

- Whether important issues are aligned with the company's business characteristics and competitive advantages
- Whether non-financial information is shown to be linked to financial results and corporate value enhancement
- What are the strengths, challenges, and areas for improvement in the disclosure content
- Where to strengthen to deepen dialogue with investors

This report can also be used as a special offer for seminar participants or as a simple diagnosis for initial contact.

2. 3-Month Consulting

Based on the issues identified in the diagnosis, we support the redesign of materiality and enhancement of disclosure that contribute to corporate value enhancement over a three-month period. The main contents are as follows:

- Reorganization of current materiality
- Competitive analysis and issue analysis from an investor perspective
- Designing the causal structure from non-financial to financial to corporate value
- Prioritization of key themes
- Story design for integrated reports and IR explanations
- Organization of KPIs, KGIs, and impact pathways

This integrates discussions on sustainability, IR, and corporate planning, which tend to be dispersed within the company, and builds a consistent explanatory axis for corporate value enhancement.

3. Impact Report Creation

Based on the content organized through consulting, we visualize the company's unique value creation story as a report. This report does not merely describe the company's materiality and social significance, but clearly states **"how the company's raison d'être is converted into financial results and corporate value."**

Specifically, the following elements are organized:

- Connection between materiality and business strategy
- Link between non-financial capital and financial results
- Structuring of impact pathways
- Designing charts, figures, and messages that resonate with investors
- Organizing discussion points for future corporate value enhancement

This enables companies to more clearly demonstrate their value creation mechanism to investors, financial institutions, and stakeholders, rather than just reporting activities.

Features of This Service

1. Redefining materiality as a "theme effective for corporate value"

The Company regards materiality not merely as a list of important issues, but as a management theme that affects the improvement of corporate value. Therefore, we reorganize it to include not only the connection with social issues, but also implications for profitability, growth, capital efficiency, and cost of capital.

2. Unique perspective connecting non-financial information to financial and corporate value

Our support emphasizes the conversion logic of "non-financial → financial → corporate value." This transforms sustainability initiatives from being described as "good deeds" into a form that can be explained in the context of management and investor dialogue.

3. End-to-end support from diagnosis, design, to deliverable creation