Climate Change

In August 2021, we launched projects for responding to TCFD. Also, in November 2021, we established a Sustainability Committee, chaired by the President and CEO.

Its main activities are to continue with the projects. We analyze risks and opportunities that climate change may present to our business and provide and share information about the identified issues. We also disclose climate-related financial information within the framework of the TCFD.

The Company signed up to support for the recommendations of "Task Force on Climate-related Financial Disclosures (TCFD)" in March, 2022.

The Tokyo Seimitsu Group considers climate change a major business threat. The Sustainability Committee discusses ways to control risks and opportunities related to climate change issues and reports results of the discussions to the board of directors on a regular basis.

The Sustainability Committee is chaired by the President and CEO. Its activities are reported to the semiannual Sustainability Promotion Meetings, and the report is submitted to the board of directors if deemed necessary by the chairperson.

The board members collect information and deepen their knowledge through various opportunities and means to grasp the constantly changing climate change situation.

The board of directors shares issues related to climate change risks and opportunities and discusses ways to control goals and solve the issues.

This committee plans and executes sustainability-related activities. In particular, it promotes the following activities:

• Creation of a basic policy, operation framework, goals, etc. and monitoring of information
• Planning and implementation of projects
• Summarization of information, reports to the board of directors, etc.
• Preparation of reports and matters related to information disclosure
• Hosting and operation of the Sustainability Promotion Meeting

These projects are led by the Sustainability Committee. and attended by the related personnel of the production, sales, and management departments. Members of the projects research and discuss climate change and submit reports to the Committee periodically.

The projects for responding to TCFD research and discuss climate change-related risks (transitional/physical). They submit reports to the Sustainability Committee on a regular basis and whenever there is an urgent need to do so. Risks considered to affect business are relayed immediately from the committee to the board of directors for judgment.

Such information is also shared with the Risk Management Committee, which is responsible for business risk management, to ensure that appropriate measures are implemented on a company-wide basis.

For the moment, we analyze Tokyo Seimitsu's domestic business in Scopes 1 and 2.As for GHG emissions from our group companies (domestic and overseas subsidiaries), we intend to start analysis while monitoring their emissions continuously.

In the future, we will investigate the Scope 3 emissions, including those of suppliers.

Since future projections are highly uncertain and difficult to analyze, we examined GHG emissions based on multiple scenarios.
There is a growing international public opinion that measures under the Beyond 2°C Scenario (B2DS) are insufficient. Therefore, we conducted the analysis, taking into consideration the 1.5°C Scenario.

On the other hand, measures under the 1.5°C Scenario make people less conscious about physical risks. For projecting our business environment, therefore, we assumed the 4°C Scenario, where continuing with the current economic activities would lead to temperature rises.

* Reference scenarios
1.5°C Scenario: [IEA] NZE, 1.5°C Special Report [IPCC] SSP1-1.9
4°C Scenario: [IEA] STEPS [IPCC] SSP2-4.5, SSP3-7.0

Legend Financial Impact: ▲▲▲Large, ▲▲Moderate, ▲Small
Emergence Timing: Short term2022-2024, Medium term2025-2029, Long term2030-

The growing trend of electrification and digitization is expected to further increase demand for semiconductors.

Semiconductors play a key role in realizing a carbon-free society, and we understand that it is crucial to meet such needs. Given the current situation, we are planning to boost our production capacity.

While this will lead to increased energy consumption, we will spare no effort in saving energy. Furthermore, we are going to step up our efforts toward decarbonization by promoting the use of renewable energy and other types of low-carbon energy.

We aim to reduce our CO2 emissions in 2030 by 50% from the level of fiscal year 2018.

Most of the GHG emissions from Tokyo Seimitsu are carbon dioxide (CO2) equivalent of electricity purchased to operate our plants. To minimize the impact on climate change, we are focusing on power saving.

Tokyo Seimitsu plans to create medium-term GHG reduction policies through the Projects for responding to TCFD and disclose those policies.