P.48 Human Capital

48 02. Foundations for Accelerating Transformation

Human Capital

Enhancing individual growth and organizational capabilities

Diverse growth opportunities

With businesses in wide-ranging industries around the world, the Group offers diverse growth opportunities across a variety of roles and fields. These opportunities span a variety of business models, including trading and business investment; business stages ranging from start-up to growth and maturity; and roles in business and corporate functions, as well as secondments to offices and Group companies in Japan and overseas. By combining these experiences, individuals can hone their strengths and achieve significant growth. To foster the self-directed growth of each individual and translate that into enhanced organizational capabilities, frontline organizations engage directly with employees to promote carefully planned development and placement. Through one-on-one meetings and career assessment interviews, for example, we align the Companyʼs expectations regarding job responsibilities and development needs with each individualʼs career goals and the skills and experience required to achieve them, thereby ensuring that each personʼs career aspirations and our strategy are aligned. Under our current medium-term management plan, certain authority over personnel transfers has been delegated from Corporate HR to the frontlines under our SBU structure. We are now able to promote more flexible, frontline-led development and placement tailored to individual employees in alignment with our business strategy. We have also expanded our internal job posting system, which allows employees to apply directly for positions in departments where they want to take on new challenges, by increasing posting frequency and easing application requirements. This enables individuals to pursue careers aligned with their WILL, while allowing organizations to acquire the skills and capabilities they need from elsewhere in the Company.

Column: Talent development in the Energy Transformation Business Group

The Energy Transformation Business Group creates diverse growth opportunities by facilitating cross- organizational talent mobility among people with knowledge, experience, and expertise in different business domains, while taking into account each individualʼs aspirations and career goals. Specifically, we actively promote cross-organizational assignments, including by assigning personnel with expertise in market risk management and trading in the LNG business to our domestic retail electricity operations and creating opportunities for personnel with experience in power EPC and IPP to contribute to new business development within our Energy Innovation Initiative SBU. These initiatives strengthen both individuals and organizations. In deploying talent, we emphasize optimal Group-wide allocation, taking into account changes in the business portfolio and growth opportunities. Through these initiatives, we are creating a virtuous cycle of individual growth and enhanced organizational capabilities while strengthening the talent foundation that supports our efforts to become “No. 1 in Each Field.”

Development of management talent

Looking ahead, we are placing particular emphasis on the planned development of management talent. In addition to conducting specific succession reviews for current key positions, we identify high-potential talent at an early stage to develop the next generation of management talent who will lead the realization of our medium- to long-term strategies. Through this approach, we are strengthening our pipeline of talent capable of leading our diverse businesses. This Group-wide initiative is driven collaboratively by the CEO and the heads of organizations in Japan and overseas. Together, we are clarifying the capabilities required of future management talent, based on the business outlook five to 10 years ahead. We are also globally integrating the talent reviews and talent pools developed across individual regions and businesses. Through this, we are building and expanding a talent management platform that takes an integrated approach to identifying, developing, and deploying management talent. In addition, we are enhancing the global visibility of management talent candidates, including employees hired overseas and talent at Group companies, and linking them to succession plans and development initiatives. Through a seamless cycle of talent reviews and development, we aim to continuously build a talent pipeline to lead the Group in the future. For future management talent candidates, we promote the acquisition and enhancement of capabilities through strategic assignments, including transfers across Group boundaries, experience in organizations operating in different segments (industries), and opportunities to take on larger assignments. In addition to selective development programs for management talent candidates, we conduct leadership programs for organizational leaders and senior executives entirely in English, providing opportunities for talent from Japan and overseas to learn and grow together. We also combine mentoring and executive coaching to provide development tailored to each individualʼs growth needs. In this way, we are accelerating the development of management talent capable of succeeding globally.

Cycle of developing management talent and quantitative targets

Collaboration with the Nomination and Remuneration Advisory Committee

• Candidates for key management positions
• Succession reviews
• Candidates for future management talent
• Talent reviews
• Emerging Talent
• Continuous development in each group
• Identify candidates with diverse experience and attributes
• Identify areas for development
• Develop through strategic assignments, training, etc.
• Monitoring

* Percentage of eligible talent who underwent strategic reassignment, such as transfers across Group boundaries, experience in organizations in different segments (industries), or opportunities to take on larger assignments

［図の構造］Cycle of developing management talent and quantitative targets

Collaboration with the Nomination and Remuneration Advisory Committee

・Candidates for key management positions（Succession reviews）

・Candidates for future management talent（Talent reviews）

・Emerging Talent（Continuous development in each group）

Identify candidates with diverse experience and attributes → Identify areas for development → Develop through strategic assignments, training, etc. → Monitoring

* Percentage of eligible talent who underwent strategic reassignment, such as transfers across Group boundaries, experience in organizations in different segments (industries), or opportunities to take on larger assignments