Climate Change

1) Strategy

Our Group recognizes that climate-related risks and opportunities represent a critical management issue with the potential to significantly impact our financial performance in the future.
In addressing climate challenges surrounding our Group, we refer to the industry-specific guidance published by the International Sustainability Standards Board (ISSB) under the IFRS Sustainability Disclosure Standard, IFRS S2 Climate-related Disclosures. Based on this framework, we identify key climate-related risks and opportunities that are likely to have a significant impact on both our Group and our stakeholders.
To mitigate these risks and capture potential opportunities, we are implementing the following strategic initiatives.

Classification		Description	Key Initiatives
R i s k	Transition Risks	Increased costs due to carbon taxes	Emission reduction activities aligned with FY2030 CO₂ reduction targets Monitoring and consideration of decarbonization policies and emerging renewable energy technologies
		Rising costs from renewable energy surcharges and implementation	Improving energy efficiency Promoting energy usage monitoring and optimization
		Loss of investment or business opportunities due to insufficient disclosure	Obtaining third-party certifications Ensuring transparency through regular publication of sustainability reports
	Physical Risks	Disruption of business operations and supply chains due to increased natural disasters	Development of Business Continuity Plans (BCPs) Diversification of production sites
	Physical Risks	Increased water stress and difficulty securing water resources at factory sites	Improving water use efficiency Preserving water quality and preventing pollution
Opportunities		Growing customer demand for environmentally friendly products	Promoting R&D of energy-efficient, environmentally compliant products Expanding markets through enhanced competitiveness and brand value
Opportunities		Rising semiconductor demand driven by energy-saving technologies, EVs, servers, automation, and energy circulation	Expanding production capacity and strengthening supply chains Advancing innovation and R&D

2) Indicators and Targets (CO₂ Emissions Reduction)

As a key indicator for assessing our response to climate-related risks, our Group has set a target to reduce CO₂ emissions (Scope 1 + 2) by 35.1% by FY2030, compared to FY2017 levels.
We are actively promoting a variety of initiatives aimed at reducing emissions generated through our business activities.