First in the Japanese Food Service Industry! Watami Signs 'Nature Impact Finance' Loan Agreement with Sumitomo Mitsui Trust Bank: Promoting the 'Watami Model' to Contribute to a Sustainable Society

Watami Co., Ltd. (Headquarters: Ota-ku, Tokyo; hereinafter "the Company") is pleased to announce that it has entered into a "Nature Impact Finance" loan agreement (hereinafter "this Agreement") with Sumitomo Mitsui Trust Bank, Limited (Headquarters: Chiyoda-ku, Tokyo; hereinafter "Sumitomo Mitsui Trust Bank"). This marks the first instance of a food service company in Japan utilizing the "Nature Impact Finance" provided by Sumitomo Mitsui Trust Bank. ■ Background of the Agreement and Our Sustainability Initiatives Since its founding in 1984, the Watami Group has operated under the slogan "To be the group that collects the most 'Thank yous' on Earth" and the mission of "creating a better environment and providing better opportunities for the improvement of human nature." The Watami Group obtained ISO 14001 certification in 1999 and was the only food service company at the time to be certified as an "Eco-First Company" by the Ministry of the Environment in 2010. We actively promote environmental compliance and efforts to reduce our environmental footprint across our business operations (food service, overseas food service, home meal delivery, food manufacturing, agriculture, and environmental businesses) to build a sustainable society. In 2019, we established the SDGs Promotion Headquarters and codified our sustainability policy as a core management issue. By identifying materiality related to the SDGs and forming five cross-organizational task force teams, we are driving initiatives to achieve our goals. Following the Watami Sustainability Policy, the Group aims to achieve the SDGs through sustainable business activities, specifically through the "Watami Model" (a circular 6th-sector industrialization model utilizing renewable energy). The "Nature Impact Finance" agreement signed today is designed to evaluate the impact of our business activities on nature and encourage further disclosure based on the TNFD (Taskforce on Nature-related Financial Disclosures) recommendations. It is intended to support our nature-related initiatives and contribute to the development of a sustainable society. ■ Evaluation Framework The evaluation related to this agreement (hereinafter "this Evaluation") consists of a "Sustainability System Evaluation" by Sumitomo Mitsui Trust Bank, as well as a "Nature Impact Evaluation" and "Natural Capital Management Evaluation based on TNFD disclosures" by ERM Japan Co., Ltd. (*1). Through this evaluation, the impact of our business activities on nature is identified, and by having Sumitomo Mitsui Trust Bank monitor the progress of our established KPIs and goals, the mechanism supports the realization of our positive impact. Furthermore, the framework for this loan has received a third-party opinion (*2) from Japan Credit Rating Agency, Ltd. regarding its conformity with the Ministry of the Environment's "Basic Concepts of Impact Finance." ■ Goals and Indicators (KPIs) for this Evaluation Upon signing this agreement, the expert evaluation by ERM Japan Co., Ltd. confirmed that the identified significant impacts and the established KPIs are appropriate. It was confirmed that the goals and indicators (KPIs) we disclose based on TNFD recommendations are valid. We will continue to vigorously promote initiatives to achieve these goals. The expert evaluation also highlighted both the strengths of our current initiatives and areas for future improvement. (*1) ERM Japan Co., Ltd.