Evaluation by Society

MSCI ESG Ratings are based on an analysis of the environmental, social, and governance initiatives and risk management capabilities of more than 8,500 companies worldwide, and are rated on a seven-point scale from AAA, the highest, to CCC, the lowest. Only 14 Japanese companies have received the highest rating of AAA, and we received the second-highest rating of AA in June 2021. In this rating, our education business, robust security measures, and internal training to improve productivity were particularly highly rated. In addition, our business objective is to "contribute to solving social issues related to working people," and we strongly support the promotion of ESG of each company through education for working people.

*THE USE BY INSOURCE CO., LTD. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF INSOURCE BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Insource was recognized as 2023 Certified Health & Productivity Management Outstanding Organization (large enterprise category) as of March 8, 2023. The Certification System for Health & Productivity Management Outstanding Organizations is a system under which the Ministry of Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi (Japan Health Council) recognize corporations that practice particularly excellent health management based on their efforts to address local health issues and the promotion of health promoted by the Nippon Kenko Kaigi. Based on our philosophy of creating a society where all people can "enjoy working and feel fulfilled," we will continue to promote internal initiatives.

As of February 17, 2022, we received the 2-star "Eruboshi" certification as a company with excellent efforts based on the Law for the Promotion of Women's Activities.
The "Eruboshi" certification is a system which certifies companies that are making excellent efforts to promote the advancement of women, based on the Law for the Promotion of Women's Activities, in the name of the Minister of Health, Labour and Welfare. The performance of the initiatives is evaluated in the five categories of "recruitment," "retention," "work style such as working hours," "ratio of managers," and "availability of various career paths," and is rated in three levels according to the number of items meeting the criteria. Our company was evaluated as meeting the criteria for 4 out of these 5 items and received 2 stars.
We are working to create an environment that facilitates diverse work styles and a balance between family and work, and to realize a company where employees can work with peace of mind for a long period of time; for example, we are improving our human resources system by expanding the scope of the reduced working hours system for childcare (up to the age of 9). Our goal is to continue to actively promote the creation of a workplace where not only women, but everyone can play an active role.

On May 24, 2023, we received the "Kurumin" certification as a company that is actively working to help balance working and raising children.
"Kurumin" certification is a system under which the Minister of Health, Labour and Welfare certifies companies that meet certain criteria, such as having formulated an action plan and achieving its goals, as a "company that supports childrearing," based on the Act on Advancement of Measures to Support Raising Next-Generation Children.To receive certification, all 10 certification criteria must be met.
We are working to create an environment that supports diverse work styles and a good work-life balance, and to create a company where employees can feel good about working for a long time. We are also working to improve our human resources systems, such as expanding the scope of the reduced working hours system for childcare (up to the age of 9).We will continue to actively promote the creation of a workplace where any person, not just women, can play an active role.

Insource has been selected as a constituent of the "JPX-Nikkei Mid and Small Cap Index" for 2022 (August 31, 2022 - August 30, 2023) and 2023(August 31, 2023 - August 30, 2024), which is jointly calculated by JPX Market Innovation & Research, Inc., and Nikkei Inc.
The "JPX-Nikkei Mid and Small Cap Index" applies the concept of the JPX-Nikkei Index 400, which is an index comprised of highly attractive listed companies, to mid and small cap stocks by selecting companies that focus on capital efficiency and investor-oriented management, and aims to promote greater awareness of such issues among corporate executives. The index also aims to meet the needs of investors looking to invest in such companies. The constituents are selected from common stocks primarily listed on the Prime, Standard, and Growth markets of the Tokyo Stock Exchange based on a screening process that includes market capitalization and market liquidity indicators, scoring of quantitative indicators (3-year average return on equity (ROE), 3-year cumulative operating profit), as well as qualitative factors (such as appointment of independent outside directors, appointment of female directors), and then the top 200 stocksare selected. The last business day of June is set as the selection base date, and the issues to be replaced are announced on the fifth business day of August each year, and the periodic review is conducted on the last business day of August each year.
In order to meet the expectations of our stakeholders, the Company will continue to enhance our corporate value and strive to realize our corporate philosophy of "creating a society where all people can enjoy working and feel fulfilled".

The United Nations Global Compact ("UNGC") is the world's largest sustainability initiative, in which the United Nations and the private sector (companies and organizations) join hands to achieve sustainable growth. We have been registered as a participating company as of May 22, 2023.
The UNGC is a voluntary initiative for companies and organizations to act as good members of society and achieve sustainable growth by exercising responsible and creative leadership. Companies and organizations that sign the UNGC are required to continue their efforts to realize the "10 principles of the UN Global Compact*," which consist of the four areas of "human rights," "labour," "environment," and "anti-corruption," based on the commitment of the top management themselves.
Based on our management philosophy of "Creating a society where all people can feel fulfilled and enjoy working," our group has been committed to solving social issues through our business. In addition, our three-year business plan includes "ESG+P Management" and we are working to continuously improve our performance (P) while expanding businesses and initiatives that provide social value. The Company will continue striving to realize a sustainable society by signing the UNGC and adhering to the 10 principles in the four areas. By signing the UNGC and adhering to the 10 principles in 4 areas, we will continue to work toward the realization of a sustainable society.