TCFD

As part of our commitment to sustainability, we actively assess risks and opportunities while transparently disclosing our climate-related initiatives in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Governance

We recognize that environmental issues, including climate change, are one of the important management issues, and the ESG Countermeasures Committee has been established to ensure continuous oversight of our climate change initiatives.
This committee receives various reports from each plant management department, including sustainability-related risks, monitors risks, and makes recommendations for resolving issues.
The contents of the discussion at this committee are reported to the board of directors as appropriate.

Strategy

Guided by the principle of 'MARUWA of Materials,' we provide essential materials that adapt to evolving business environments, including the challenges that adapt to evolving business environments, including the challenges posed by climate change. We believe that the global shift towards carbon neutrality by 2050 will positively impact our business, as our product line supports decarbonization efforts. Additionally, we are committed to minimizing climate-related risks in our manufacturing processes by improving energy efficiency, utilizing renewable energy, and implementing comprehensive Business Continuity Planning (BCP) measures.

The risks and opportunities we are analyzing are as follows.

Risks:
• Potential production disruptions within our group and supply chain interruptions caused by natural disasters linked to climate change.
• Escalating energy costs driven by climate change.

Opportunities:
• Growth in the xEV (electric vehicle) market increases demand for our xEV-related products.
• The shift towards a decarbonized society expands the telecommunications and semiconductor markets,presenting increased opportunities for our related products.

Risk Management

At the Risk Management Committee, each department of the management headquarters reports on the status of risks.
This committee is responsible for evaluating risks in general, including sustainability-related risks, from a multifaceted perspective. The risk management department within the management headquarters is in charge of risk management for issues that require specific action. The discussions of this committee are reported to the board of directors as appropriate.

※Please refer to the annual securities report for more information

Metrics and Targets

To promote environmentally responsible business activities, we are committed to reducing the environmental impact of our operations and contributing to a decarbonized society through our technology and products. We are also working towards medium and long-term greenhouse gas (GHG) reduction targets

As part of our efforts to reduce GHG emissions, we are expanding the use of clean renewable energy, which does not emit GHGs during use, by installing solar panels and increasing our reliance on renewable electricity. We will continue to enhance our renewable energy generation capacity through ongoing solar panel installations. Additionally, we are dedicated to promoting greening initiatives at our factories and other facilities.