Addressing Climate Change - Disclosure Based on TCFD Recommendations -

We recognize that Planet warming is an urgent issue that companies must address. In light of the recent progress of global warming and technological advances, we have set our climate change response target for 2021. After extensive internal discussions in line with the TCFD disclosure framework, we have revised this target for 2022. The Itoki Group will steadily promote climate change response, including in its supply chain.

The policies and strategies for responding to climate change are overseen by the Managing Executive Officer and General Manager of the Planning Division. Within this framework, the Sustainability Promotion Division, which is under the Corporate Planning Department, formulates and manages measures. As appropriate, these are discussed and reported to the Executive Committee via the responsible officer, and are then overseen by the Board of Directors.

Climate change risks and opportunities were identified by extracting, mapping, and following the TCFD recommendations. Impact assessments were categorized into high, medium, and low, with high being automatically recognized as a risk or opportunity. Those with a medium score of 9 were judged after discussion among the relevant parties. 1 to 8 on the risk analysis map and 1 to 4 on the opportunity analysis map are the identified risks and opportunities.

We have formulated countermeasures for the identified risks and opportunities through extensive discussions with external experts in line with the TCFD recommendations, taking into account temperature scenarios, time frames, financial impacts, and likelihood of occurrence.

The identified risks were classified into transition risks and physical risks, and countermeasures were considered for the transition risks under a 1.5°C scenario and for the physical risks under a 4°C scenario.

We considered countermeasures for the opportunities identified in the opportunity analysis map under both the 1.5°C and 4°C scenarios. As a result, we formulated countermeasures such as "strengthening development of environmentally friendly products and work style solutions" and "strengthening product development and solution sales that support diverse work styles."

The indicators and targets are set in accordance with the Mid-Term Environmental Plan 2026 (target items), and are five items: reducing _CO2 emissions, reducing total energy input, reducing waste, promoting recycling, and reducing water intake.