2022 SUSTAINABILITY REPORT* TABLE OF CONTENTS > Foreword ESG at MPower MPower Family ESG highlights: our operations » Portfolio ESG perspectives EndnoteForeword We are excited to snare with yau MPower's first Sustainablty Report I's been a ttle over twoyearssins| Powe aurehed in May 2021 and we ate proud to share what we've accomplishes in 2022 from an ESC. perspectve: haw weve taken action accotaing to enuvonmental social and governance factor me fel fre most material to our fund, In particular, our biggest accomplishments include our efforts around ‘versity 35 wel as ineroasing awareness and knowledge about ESC In the Japanose startup ecosystem, ‘Asyou may know, we workwith each of our portola companies to Integrate ESG ina their core business ‘peratona. Allien companies nave commenced ther "Sc journey, and you can lea more about thei ‘procesces andl refectons in the second halo ths report. \We nope aur report increases the awereness of sore of aur inlativas, as we are eager to engage with anyone who Is interested in collaborating 22 revelutionize Japar's stertup ecosystem and enable sustainable long-term growth for startups globally at Watt, Yuko Muska arian Sat )BY THE NUMBERS Ce ee 20S 4 OUT OF 10 Pemet olan g trad Paseo aN Wwwww MMMMMM WE SPOKE AT 100+ ett cte Tcued 100% Dees reese Ce eles) COMPANIES Ripe FOUNDERS J DPA SoS SEL ©_ESG AT 1M POWEROUR ESG CHARTER Pepe ee tase eae anne ia eee ee are ea etad Rega teat a ear cerca) Pee Set eae eae a) financial analysis. We believe that the thoughtful Creed ere Social, and Governance (ES) factors into companies, tee i ec tases [eine neta rere With the launch of MPower Partners, we are Seat Shela ea geal heater ESC in all aspects of our own fund operations in order fer erga ee eae Pel ana eae ceed toM ose eee ee eed Moen kcucul eet arora Retell eee Cana kM eae venture ecosystem via greater globalization, diversity, Paes trai ii cl ome ce na — Seca eeeeo NaC OUR Ceres) ee Rleles tl GOVERNANCE ®OUR INVESTMENT || ssciscortoourinvestment thesis and we Integrate ESG principles in every stage of our n\=)>)=%e)i\o)" Becton In deal sourcing, we entity investment opportunities that promote tech-enabled sustainable Iving, while excluding Reet sees ae eed Soe eee eee Cretan Oe a ee eee eee en eee ect Pee ere ee ee ere Marie ee reece eee cee a eee Se eee ec ee cee oe eee cee a cerned ee ee ee ee See eee eee eee ee een Eee eer ee ee re ‘Signatory ofthe United Nations Principles for Responsible vesiment (UNPRI}ESG INTEGRATION AT MPOWER Sept p ace eee Beg teat ees soos MPOWER ESG VALUE-ADD 9IM POWER FAMILYOUR TEAMb+ 4 UniFa fe WOVN.10 OUR PORTFOLIO —=— - é —tel Ovurirer Eciiptine |] RABO |ESG HIGHLIGHTS: our operationsENVIRONMENTAL MATERTALITIES Resource management in our own operations. Greenhouse gas emissions COMMITMENTS Soca eee ents eerie See ee acne eres 2022 RESULTS ” fmensuring our greenmouse ges emikcome We put” Sterne plaed so measure’our scope 9, andt ‘hrbon emisions " + Though the direct greenhouse gas emissions of [echnology companies can belimited we beleve scion ean be mach higher ‘Wrehosted's workshop, ‘gr carbon accounting ‘or Mower por‘olo companies 22 Sezull all egntof our Japanese compsnes mmeasured'Seope | and 3 emissions for 2052 8:10SOCIAL - DIVERSITY 2022 RESULTS + We developed and publshed our DEI peley as.vell as measured the iversity metrics of bur fund pinele, ant Borifole compan es MATERIALITIES + Diversity, equity, and inclusion + We held an event for ever 50 participants on alversity and starcuns at the ChE Notga,eaturing startup feundere snd leaders kegn on oringing DE It the forefront of shel commpanes ana COMMITMENTS + We became certified as 3 Level fund by DiversitvVC, a6 the fist Raia the highest certification avatable atthe ume centre + We suppor: and seively participate informal nkiatives o promote gender eee iseraRy'n the stars 6con/sarn incucing Tole Women in Ue the saps Sertirg Cptatfssocaton ana tone Women hve verse Founder ‘The avca's DiDIVERSITY - OUR NUMBERS Internal Portfolio Japanese 5 GPs 100% 33% By number of companies 40% Other investment team | 67% 33% By Investment value 2256 (Other team 100% 33% External advisors 50% 33% Industry experts 50% 75% Pipeline eucereouecer pious Female 16% Minority 8% Female & minority % ‘Other 75%Why diversity is imperative for growth Female-founded startups raise less capital, but deliver better outcomes Te eres aera ac ee en) porte etre eer Eat eres rs Japanese IPOs 2020 to 2021SOCIAL - KNOWLEDGE 2022 RESULTSIM) POWER x BCG In order to help startups implement ESG successfull, this report is comprised of two main sections. The first is a quantitative assessment of the current state of FSG efforts among Japanese startups based on a survey of 50 startups. The section examines actual Initiatives implemented across ESG areas and obstacles which startups encounter, in acuition to the actual impact of FSG initiatives on business performance, among other topics. Secona, drawing ftom expert interviews with 70 leading Japanese and overseas Startups, the report synthesizes the significance of ESC initiatives and explores. 7 Principles for activating ESC efforts.‘STARTUPS SEE A POSITIVE IMPACT FROM ESG EFFORTS ON “EMPLOYEE RETENTION AND RECRUITMENT,” WHILE “LACK OF RESOURCES AND KNOWLEDGE” 15 AMEY HURDLE ‘STARTUPS SEE A POSITIVE IMPACT FROM ESG EFFORTS ON oom “EMPLOYEE RETENTION AND RECRUITMENT,” WHILE "LACK teron"promaton oF empovee (OF RESOURCES AND KNOWLEDGE” ISA NEY HUROLE ‘tanion ana reenter whieh otrespondents “S5% fa real impact om hoi Rerprncels fer acthating E50 err Tivec hy contowions 42%. Sonmesing \ ree ell AR MRE crccnncearaconsuner pate 7 [EsstngaueSnsle grout inthe recur. to longer-term ay MN) POWER x BCGBY SPECIFIC ENVIRONMENTAL, SOCIAL, AND GOVERNANCE AREAS, THE FINDINGS FROM THE SURVEY ARE AS FOLLOWS, ‘Efforts to measure and reduce CHG emissions" are currently mites 2 of respondents avenetyet mewsuea te cic emssars SOCIAL Proporton ef wren In manages tends ta Be ver lw + 78% of espondent companies have 20% or higher women ployee representation : + 42% of companies Rave nat engaged n DEI flvesiy, equi, and inelusion) meses «Over a8 of respondents have “established a remote work poley* GOVERNANCE Limited representation of internal and external "women & foreign nationals on oard of Directors nreralenterral directors included Mort nese comosries hve awrisblonng process and ha ofr "97% of nter-srage startups have "s whistleblowing mechanismiprocess” {S39 have "whisleolowing mechanisms that have actualy been used + 6496 of startups have a data privacy incident tracking system in place, of which 55% actually measured ned ‘forts compared with eath-stage ones “ax of arr stage tartups have worked vo maintain compliance with privacy isgubtors snd manage te sci of forraon errs sea MN) POWER x BCG ( ®)STARTUP ECOSYSTEM ‘The Japan Venture Capital Association isa group of more than 300.VC ‘and CVs Kathy Matsui serves as director and chair of the Diversity & Inclusion Committee ‘Tokyo Women in VC is 2 community dedicated to foster collaboration and suppertwomen in venture capital and startup investment We are active inalvidual members, and Kathy Matsul serves as adVsor Venture es¢ is 2 gtobalintatve to increase ESG integration among Ves ‘Yuna Sakuma serves on the steering committee Diversityvc isa non-profit that offers an assessment and certification process that measures a fund's internal and external OE! poles ana rogram. We obtained a Level 2 certification, the highest level awarded ‘We aro also proud to be Diversity VC's first cortitied fund in Asia, ‘The Environment and Energy Innovation Community was launched by CIC Tol and US Innovations with the aim of promoting innovation in the lenvronment ang energy field. Yumixe Murakarm serves as VSO Endeavor is the leaging global community of by, ane for Kigh-Impact Entrepreneurs — those who dream lager scale faster, and pay forward, MPower isa supporter of Endeavor Japan POLICYMAKERS ‘Yuriko Murakarisits on Prime Minister Kishida's panel on “the New Form of Capital” ‘Yuna Sakuma serves on the Ministry of Environment “working group on climate tech impact measurement and managernent”™ MPower iss natory of the United Nations Princi Responsible Investment since June 26,2021 We provides (our feedback on the “Limited Partners’ Venture Capltal Investment Due Diligence Questionnaire MPower provided a comment letter tothe Exposure Draft of the International Sustainability Standards BoardESG Playbook Is becoming increasingly prominent inthe ce Reereer rere pupebertnenenier a tire anno Pee Cer need Pee eaten - Peete errr eee pent tees z-ceaniprareret ite eae or Pir eet on Content What is ESG? Why is ESG important for startups? Essential ESC factors The ESG journey Conducting a materiality analysis Determining commitments and best actions to take Establishing targets and defining metrics Utilizing ESG and sustainability frameworks Communicating an ESG roadmap Resources to get started and next steps- WELLNESS MATERTALITIES COMMITMENTSClO SNA els 8PORTFOLIO ESG PERSPECTIVESBS uniFa ESG AS A MEANS TO ARTICULATE THE MEDIUM: ‘TO LONG-TERM VALUE OF A BUSINESS. [FOCUS ON MAKING EMPLOYEES HAPPY na unease antag orn snculimannothing urs ow employes anetne ris ESTABLISHING GOOD GOVERNANCE FROM AN EARLY STAGE Shiyteanibgrih geod saare preety Horr wittjoucan nasntbssep onner™ ESG HELPS CLARIFY UNTFA'S PURPOSE AND PHILOSOPHY Mam cba catpaniacsnats pesca) snc cormostampsrant (a5) ®WOVN.10 ESG IS EMBEDDED IN WOVN'S BUSINESS. ‘OBJECTIVES: ‘amon stpecaly nies of Seca or MOUN ESC semibedded Tin cower reis sighted ba ay drain er ‘A. CROSS-FUNCTIONAL ESG TEAM SUPPORTS A ‘COMPANY-WIDE EFFORT ‘Aer Monette in 202, WOM oficial ned tn ESS ESG HAS INCREASED EMPLOYEE ENGAGEMENT &)Quupiter ‘COULD YOU HIGHLIGHT A FEW ESG PRIORITIES AND THE RELATED ACTIONS. ‘YOURE TAKING? Betcommitment satemant Conctteysae ave recretng Srannie'e oe ainptcctcyn mragic ty WHAT BENEFITS DO YOU SEE FROM. PRIORITIZING ESG-RELATED INITIATIVES? “tomo th uses acu arth aly tera att E50 tet ner operant WHY ESG FOR EARLY-STAGE COMPANIES? oD) @yuu) SEERA nite olen ‘CREATING AN ENVIRONMENT THAT ENCOURAGES DIALOGUE ABOUT MAJOR LIFE ‘CHANGES, Array dace Hee partons Teeter as Sparco stearate onal “stats ning suraty nage ae ny pect the ‘SEAMLESSLY INTEGRATING G (GOVERNANCE) ELEMENTS: sstiemstrunanse ide ito: Sictohew door ese (28)I UTAVLI LINKING ESG TO SUKEDACHI'S BUSINESS MODEL IMPROVING EMPLOYEE RETENTION AND PROMOTING DIVERSITY AT THE EXECUTIVE LeveL allmsiinduy oe 2 ofthe omg ugnl Herpes ‘THE POSITIVE BUSINESS IMPACT OF ESG ‘nal poste vetporen ond iemaaernle edie Sterion Imaraged yum navi necator Struc and.one @Endnote power Partners turned 2 years ol at the end of May As we prepared this report we were Yet we are only getting started ‘our 2022 resuts showed that we have strengths in dversty equlty, ana inclusion and in ESC knowledge sharing. We also consider fund governance anal taking climate action °0 be particulary important In 2025, we ae continuing to bulld on these strengths. Though the macroeconomic tevironmentis uncertain shal there are increasing neaewinds for ESC, we are encoursged by our teams ana our portale companies commitment to ESC. ‘We are gratefultor the support and callaborstion of many people to make our ESC etorts possible. To the broader MPower Family — shank you! And we look forward to hearing ‘rom anyone wna would be keen to work with us Penctpal 8 E50 Leadec ae ®