TCFD Information Disclosure

Based on the purpose of “Supporting People and the Earth through Seating Technology” we will continue to provide both social and economic value. In addition, we have set “A company that is kind to people and nature" as the basic philosophy of our environmental policy, and in May 2022, we agreed with the TCFD (Task Force on Climate-related Financial Information Disclosure) recommendations. Analyze risks and opportunities that our business poses from climate change scenarios, provide feedback to strategy and risk management, and lead to an increase in corporate value.

Governance

We are continuously implementing CO₂ reduction activities to address climate change issues, with the core of our corporate activities being “Supporting People and the Earth through Seating Technology”. Regarding these initiatives, the ESG Promotion Meeting, chaired by the president, approves the activity policy and follows up on the progress of each quarter. The contents of the ESG Promotion Meeting are regularly reported to the Board of Directors and reflected in activities Under the direction and supervision of the Board of Directors.

Strategy

We examine scenarios in which the average temperature at the end of this century will rise by 4°C compared to pre-industrial levels, and scenarios in which the temperature will be limited to a 1.5 °C increase, and we extract climate-related risks and opportunities for our businesses. The following is a list of climate-related risks with high-risk ratings based on the evaluation by the company-wide Risk Management Committee.

Referenced scenarios
4°C : IPCC RCP8.5 IEA STEPS Public Policy Scenario, CPS Current Policy Scenario
1.5°C : IPCC RCP2.6 IEA SDS Sustainable Scenario, NZE 2050 Substantive Zero Scenario
Impact period : Short term → within 3 years, medium term → around 2030, long term → around 2050 Impact level : Calculated from the likelihood of occurrence (5 levels) x financial impact (5 levels)

Based on the results of scenario analysis, we will reflect the newly necessary measures in our management strategy, work to strengthen the resilience of our business, and effort to disclose information.

Risk Management

Climate change risks are identified at the ESG Promotion Meeting, and the company-wide Risk Management Committee reviews them regularly once a year, including climate change risks. Evaluate the importance of risk by "damage scale" and "frequency of occurrence" when risk occurs, and the contents are reported from the Risk Management Committee to the Board of Directors.
In reaction to the risk assessment, the relevant subcommittees set measures to be taken and target values. We are promoting risk management activities.

Risk Management

Metrics & Targets

Aiming for carbon neutrality in 2050, we have set the following as indicators and intermediate goals.

Index	Group Consolidated/Unconsolidated	2023 results
Metrics		Targets
Scope1・2	Consolidated	33,822 t-CO₂ ※1 BSI Independent Assutance Statement ※5
Scope3(Category 1)	Consolidated	973,249 t-CO2 ※2 BSI Independent Assutance Statement ※5
Scope1・2	Unconsolidated	7,066 t-CO₂ (29% reduction compared to FY2013)
Scope3(Category 1)	Unconsolidated	329,104 t-CO₂ ※2

Trends in greenhouse gas emissions (By scope)

2030 target

Scope 1 and 2 CO₂ total emission reduction (domestic ) : ▲ 46% compared to FY2013
Scope 1 and 2 CO₂ total emission reduction (overseas ) : ▲ 43% compared to FY2019

※1Scope 2 Market-based for Domestic, China and Thailand, Location-based for Latin America and North America.
※2Calculated from Scope 3 "Emissions intensity database ver3.2 for calculating greenhouse gas emissions of organizations through the supply chain“, category 1 to 8 are calculated and category 1 accounts for 95% or more, so only category 1 is listed.
※3Refer to Japanese government GHG reduction target
※4Refer to the IPCC proposal (April 2022)
※5Third-party assurance by the British Standards Institution (BSI)