Addressing Climate Change Risks

We have set up a TCFD* Working Group composed of personnel from related divisions under the Sustainability Promotion Committee to address the risks and opportunities presented by climate change. The working group employs scenario analyses to identify significant risks and opportunities brought by climate change and to evaluate mainly the financial impacts on the Group.

We will also further advance global-warming mitigation initiatives focused on climate change and decarbonization in cooperation with various industry groups that are working towards the Paris Agreement goals.

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Task Force on Climate-related Financial Disclosures working under the Financial Stability Board

We have established environmental management systems (EMSs) based on ISO 14001.

A PDCA cycle of planning, support and operation, performance evaluation, and improvement serves as a core part of the ISO 14001-based EMSs to ensure ongoing improvement in environmental management.

Group sites maintain their EMSs through management system audits by ISO 14001 registrars, internal environmental audits (of legal compliance) by the Ecology Center, and other internal environmental audits at individual sites.

• ISO 14001 certification: 94 sites (out of 172 Group sites), as of March 31, 2023

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The Ecology Center supervises and assesses environmental conservation activities implemented at the remaining 78 sites.

The Ecology Center aggregates environmental performance data as the organization responsible for overseeing environmental conservation activities across the Group. The aggregation results are assured by KPMG AZSA Sustainability Co., Ltd. (an independent assurance provider) and reported to the Board of Directors (for details, see the “List of Indicators Assured by an Independent Assurance Provider”). The center discloses the verified performance data via the TOPPAN corporate website and other communication channels.

For environmental targets, in particular, the Ecology Center decides a set of site-specific, single-year targets based on the Groupwide targets and develops current-year measures with authorization from the Board of Directors. These site-specific targets are treated as key performance indicators for managing the progress of environmental conservation activities carried out at individual sites. The Ecology Center also manages the monitoring of soil and groundwater pollution, ascertains the results, and discloses the details.