Disclosure in line with TCFD Recommendations

Governance

Governance Structure

Recognizing that addressing climate change is an important management issue, we have established a governance structure centered on oversight by the Board of Directors and management by the Sustainability Promotion Committee. This governance structure is stipulated in our "Sustainability Promotion Committee Rules”.

Items discussed and decided by the Sustainability Promotion Committee regarding climate change
Reduce CO2 emissions from product use by 30% from FY2010 levels by FY2030. (Basic unit) Reduce CO2 emissions from factories (in Japan) by 50% from FY2015 levels by FY2030. (Basic unit) Use 100% renewable electricity in factories (in Japan) by the end of FY2021. Endorse the TCFD recommendations and strengthen climate change initiatives and disclosure.

Board Oversight Structure

The Board of Directors receives reports from the Sustainability Promotion Committee on a regular (in principle twice a year) or as-needed basis on climate-related risks and opportunities, and monitors the progress of initiatives, targets, and performance. In addition, the Board of Directors makes decisions on important matters such as management strategies, mid-term management plans, annual budgets, and business plans after considering climate-related risks and opportunities.

Sustainability Promotion Committee

Matters related to sustainability, including climate change (so-called ESG matters), are deliberated by the Sustainability Promotion Committee under the oversight of the Board of Directors. The Sustainability Promotion Committee is chaired by the President and consists of directors, executive officers, etc. The committee reports its deliberations to the Board of Directors and is supervised by the Board of Directors.

Functions, roles, and deliberations of the Sustainability Promotion Committee
Identification of materiality, establishment of targets, and confirmation of performance related to ESG Confirm whether or not changes are necessary to materiality issues and set goals related to ESG Identification of climate-related risks and opportunities, and deliberations on scenario analysis Assess actual greenhouse gas emissions and set reduction targets Formulate and promote policies, strategies, and measures to minimize identified risks and seize opportunities Budget review and budget management necessary to implement each of the preceding items Incorporate into individual business plans of each division and Group Company, and check their progress Report and make recommendations to the Board of Directors on a regular (in principle twice a year) or as-needed basis

Functions, roles, and deliberations of the Sustainability Promotion Committee

Identification of materiality, establishment of targets, and confirmation of performance related to ESG
Confirm whether or not changes are necessary to materiality issues and set goals related to ESG
Identification of climate-related risks and opportunities, and deliberations on scenario analysis
Assess actual greenhouse gas emissions and set reduction targets
Formulate and promote policies, strategies, and measures to minimize identified risks and seize opportunities
Budget review and budget management necessary to implement each of the preceding items
Incorporate into individual business plans of each division and Group Company, and check their progress
Report and make recommendations to the Board of Directors on a regular (in principle twice a year) or as-needed basis

Supervisor of Climate Change

The president is in charge of matters related to climate change. The president chairs the Sustainability Promotion Committee, which assesses the impact of climate change on business (risks and opportunities) and oversees efforts related to climate change. The allocation of management resources (people, facilities, funds, etc.) necessary to achieve the initiatives is a matter to be deliberated by the Sustainability Promotion Committee.

Main Department Responsible for Climate Change Issues

The Business Management Department, as the secretariat of the Sustainability Promotion Committee, supports the function of the Sustainability Promotion Committee in planning for and managing climate change, and promoting initiatives in cooperation with related departments and Group Companies.

Sustainability Promotion Committee Secretariat Implementation Matters
Lead the monitoring of climate change impacts in collaboration with relevant departments and Group Companies Identify climate-related risks and opportunities and gather information necessary for scenario analysis Developing indicators and goal-setting used to measure and manage the impacts of climate change PDCA management of divisions and Group Companies with lead responsibility for individual ESG issues, including climate change Reporting and making recommendations to the Sustainability Promotion Committee on each of the preceding items Disclose information on ESG initiatives, including climate change, through websites and other means

Sustainability Promotion Committee Secretariat Implementation Matters

Lead the monitoring of climate change impacts in collaboration with relevant departments and Group Companies
Identify climate-related risks and opportunities and gather information necessary for scenario analysis
Developing indicators and goal-setting used to measure and manage the impacts of climate change
PDCA management of divisions and Group Companies with lead responsibility for individual ESG issues, including climate change
Reporting and making recommendations to the Sustainability Promotion Committee on each of the preceding items
Disclose information on ESG initiatives, including climate change, through websites and other means

Sustainability