Recognizing that climate change countermeasures are one of the most critical management issues, we have expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and have been promoting various initiatives based on the TCFD recommendations.

In April 2023, we established the Sustainability Management Office to further address the issues previously worked on by the SDGs Promotion Committee since February 2021. The Sustainability Management Office is headed by an officer overseeing climate-related issues. It centralizes sustainability information and assesses and manages climate-related risks and opportunities. The office also provides reports, proposals, and advisory reports to the Executive Committee once every half year, and after receiving the approval of the Executive Committee, reports to the Board of Directors, which in turn monitors the items being considered by the office. The Sustainability Management Office came under the direct supervision of the president in April 2024 and has since been enhancing initiatives for sustainability in general.

By referring to the risks and opportunities presented in the TCFD recommendations, our group has identified the following items regarding the risks and opportunities that climate change poses to our group's business from the aspects of two temperature zones, the 1.5°C scenario and the 4°C scenario, and has developed measures to address them.

Under the supervision of the President & Executive Officer, the Sustainability Management Office identifies and assesses climate-related risks in our group once a year, with risk assessments conducted in two aspects: impact and occurrence. The office also discusses preventive measures and courses of action. The discussion outcomes are then reported to the Executive Committee, and the relevant business units implement measures. Looking forward, we will incorporate climate-related risks into the corporate-wide risk management process as appropriate as part of the corporate-wide risk management integration process.

Our group calculates GHG (greenhouse gas) emissions (Scope 1 and 2) based on the GHG Protocol standards to assess and manage the impact of climate-related issues on our management. (* The calculation for Scope 3 is in progress.) We also consider other climate change indicators, such as VOC emission reductions and final disposal volume. The results for FY2023 and future targets are shown below.

The energy conservation committee at each plant works on replacing the current lighting with LEDs, saving power in facilities, and controlling leaks of compressed air and steam. The frontline workers implement energy conservation activities, such as controlling the number of boilers in operation, installing steam traps, and keeping steam pipes and pressure reducing valves warm. In particular, heating the primary piping that leads to the trap has reduced heat dissipation loss. We also strive for energy efficiency by reducing defects and increasing productivity, promoting continuous improvement activities to reduce CO2 emissions.