KAGA ELECTRONICS CO.,LTD.

Regarding the impact that risks and earnings opportunities relating to climate change will have on our business activities and profitability, etc., we are considering the necessary disclosure items and content under the leadership of the Environmental Management Promotion Committee of the Sustainability Committee.

At present, giving reference to the TCFD recommendations framework, we are aware of the major physical risks as well as the transition risks and opportunities relating to climate change, and our implementation policies are as follows.

We have established the Sustainability Committee, chaired by the President and COO, comprising each division’s chief officers, among others, which is an organization for implementing strategies and measures relating to climate change, under the leadership of the Environment Working Group, which operates under its auspices, in order to promote Group-wide sustainability management. The Sustainability Committee reports to the Board of Directors as necessary and receives guidance and supervision.

We are aware of the major physical risks and transition risks and earnings opportunities relating to climate change as follows.

We are currently considering risk classification and evaluation processes, and we will disclose them in the future. We are currently considering identified risk management processes, and we will disclose them in the future. We are currently considering subsequent integrated risk management processes to implement them on a company-wide basis, and we will disclose them in the future.

Although the Company has historically calculated greenhouse gas emissions only for specific sites, from the perspective of continuous emissions management and transparent information disclosure, we have calculated Scope 1, 2, and 3 emissions for the fiscal year ended March 31, 2024. As a result, we have set a reduction target of 42% for Scopes 1 and 2 and 25% for Scope 3 by 2030, based on the fiscal year ended March 31, 2024.
The Group is committed to understanding the current situation and working toward achieving its goals.
Emissions for the year ended March 31, 2024 are as follows

The Group has established the Medium- to Long-Term Sustainability Management Plan (announced on November 25, 2021) and is targeting the “achievement to shift to 100% renewable energy” and “shift to electricity for company-owned vehicles” to address environmental issues relating to the reduction of GHG emissions. The medium- and long-term targets for the main KPIs and progress in FY2023 are shown below.

* Click here (ESG Data) for detailed data on Scope 1 to 3 emissions.
* Click here for the Medium- to Long-Term Sustainability Management Plan.

Viewing the 21st century as a century for protecting the global environment, we address environmental issues such as reduction of CO2 and other GHGs through our business activities. To this end, the Kaga Electronics Group Environmental Policy fulfills a central role. We encourage all employees to be firmly committed to this matter of corporate social responsibility, and having established an environmental management system, the Group obtained ISO 14001 certification in 2002.
Our rooftop biotope further promotes these efforts. Here, plants and other organisms are nurtured to protect biodiversity and the natural environment, and we are cultivating a welcoming, protective habitat. Setting up an on-site biotope also raises employee awareness of nature and the environment.

The rooftop garden at the head office, which is one way we have enhanced the workplace environment for employees, sets the scene for meals, breaks, and casual employee get-togethers. A recent addition is the 3×4 meter pond built in a corner, which serves as a biotope habitat for the creatures that now live there. The pond has four zones at depths of 2 cm, 6 cm, 12 cm, and 18 cm, and a variety of environments have been arranged – for shallow-water flora and fauna, for example – so that diverse wildlife can thrive here. As soil for the plants that play a key role in the biotope, approval was obtained from the ward office to use earth from the Arakawa riverbed. This recreates the Arakawa watershed environment in the Kandamatsunagacho area where the head office is located. We were pleased to find that valuable plants have germinated from seeds buried in the soil. The head office building lies about 2 kilometers from the lush Imperial Palace, and local insects and other wildlife are expected to fly here. In this way, we anticipate the Group biotope becoming a satellite habitat that will expand the range where these creatures are active. Insects and other creatures will find a broader breeding area. As for fish and other aquatic life here, the fact that there is limited public access to this company biotope eliminates the risk of introducing non-native species. We are taking advantage of this to create an optimal habitat for native species.

The Group conducts regular surveys of wildlife in the biotope roughly three times a year in the spring, summer, and fall. Results are posted online as described below. Besides research activities, biotope workshops are also held. Employees attend these events with their children and other family members, which provides opportunities to have fun interacting with nature. Through these kinds of initiatives, the Group hopes to kindle an interest in the natural environment and ecosystems among employees and their families. Maintaining ecosystems will remain a commitment of the Group as a whole.