TCFD Recommendations

Respond to Taskforce on Climate-related Financial Disclosure (TCFD) recommendations

Takasago International Corporation expressed our support for the TCFD recommendations in November 2019. This time, we disclose our principle and strategy against climate change based on the recommendation.

The TCFD was established by Financial Stability Board and published the recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear and efficient to help market understand their risks and opportunities.
The TCFD recommendations requires all companies to develop climate-related scenarios, assess their climate-related risks and opportunities, incorporate such risks and opportunities in their business strategies and risk management, and understand and disclose their financial impacts.
Click here to access the TCFD Web page.

＜Updated as of September 25, 2025＞

Governance
Details	In order to establish the management that earns the high appraisal and trust of all our stakeholders, the Takasago Group strives to reinforce its corporate governance. Takasago recognizes climate change as the most important issue in our materiality assessment and discusses policies regularly at the board of directors meeting. With regards to concrete issues of energy consumption and GHG emissions, we discuss detailed countermeasures at Global EHS Committee. In addition, Sustainability Promoting Committee takes place regularly to share the goals and monitors the progress on our activities. Sustainability related important issues are taken up at board of directors for further discussion and approval.
Relevant documents & pages	●Takasago International Corporation "Basic Corporate Governance Policy" https://www.takasago.com/en/aboutus/governance.html ●Sustainability report 2025 P73-76：Governance

Governance

Details

In order to establish the management that earns the high appraisal and trust of all our stakeholders, the Takasago Group strives to reinforce its corporate governance.

Takasago recognizes climate change as the most important issue in our materiality assessment and discusses policies regularly at the board of directors meeting. With regards to concrete issues of energy consumption and GHG emissions, we discuss detailed countermeasures at Global EHS Committee.
In addition, Sustainability Promoting Committee takes place regularly to share the goals and monitors the progress on our activities. Sustainability related important issues are taken up at board of directors for further discussion and approval.

Relevant documents & pages

●Takasago International Corporation "Basic Corporate Governance Policy"
https://www.takasago.com/en/aboutus/governance.html
●Sustainability report 2025
P73-76：Governance

Strategy
Details	The Takasago group recognizes risks and opportunities of climate change as an important issue for our business strategy. In line with TCFD recommendations, our sustainability team made scenario analyses and specified the risks and opportunities in a middle-long term through to 2030. Physical risks such as heavy rains, floods and so on, influence on supply chain including the operation at our factories. As context-specific plan to adapt to physical climate risks, we are tackling to minimize the impact by implementing the business continuity plan (BCP) to enforce the ability of business continuity at key manufacturing sites and implementation of a sustainable procurement program (TaSuKI) targeting raw materials vulnerable to climate change risks. These measures are designed with a timeframe of over ten years and will be implemented as long-term actions. On the other hand, opportunities were also defined such as the improvement of energy efficiency, new products and technology through innovation, etc. We find it a new great business opportunity for us to cope with climate change, so we are working very hard to develop low carbon products and technologies diligently. Our company practices Green Chemistry through the development of catalysts and continuous flow processing, which contribute to reducing energy use and waste.
Relevant documents & pages	●Sustainability report 2025 P60～63：Research and Development

Strategy

Details

The Takasago group recognizes risks and opportunities of climate change as an important issue for our business strategy.

In line with TCFD recommendations, our sustainability team made scenario analyses and specified the risks and opportunities in a middle-long term through to 2030. Physical risks such as heavy rains, floods and so on, influence on supply chain including the operation at our factories. As context-specific plan to adapt to physical climate risks, we are tackling to minimize the impact by implementing the business continuity plan (BCP) to enforce the ability of business continuity at key manufacturing sites and implementation of a sustainable procurement program (TaSuKI) targeting raw materials vulnerable to climate change risks. These measures are designed with a timeframe of over ten years and will be implemented as long-term actions.
On the other hand, opportunities were also defined such as the improvement of energy efficiency, new products and technology through innovation, etc.
We find it a new great business opportunity for us to cope with climate change, so we are working very hard to develop low carbon products and technologies diligently.
Our company practices Green Chemistry through the development of catalysts and continuous flow processing, which contribute to reducing energy use and waste.

Relevant documents & pages

●Sustainability report 2025
P60～63：Research and Development

Risk Management
Details	In order to fulfill our responsibility to all the stakeholders, the Takasago group regularly assesses risks that could potentially affect our business stability while striving to maximize stakeholder’s value. The risks of climate change have been discussed at Risk Management Committee, which consists of general managers of key divisions at the Headquarters, and reported to the board of directors meeting for further review. In addition, our integrated global ISO14001 certification helps monitor and manage environmental risks across all the sites.
Relevant documents & pages	●Sustainability report 2025 P77～78：Risk Management

Risk Management

Details

In order to fulfill our responsibility to all the stakeholders, the Takasago group regularly assesses risks that could potentially affect our business stability while striving to maximize stakeholder’s value.
The risks of climate change have been discussed at Risk Management Committee, which consists of general managers of key divisions at the Headquarters, and reported to the board of directors meeting for further review.
In addition, our integrated global ISO14001 certification helps monitor and manage environmental risks across all the sites.

Relevant documents & pages

●Sustainability report 2025
P77～78：Risk Management

Metrics and Targets
Details	The Takasago group challenges to reduce GHG emissions. Takasago calculates and monitors the global GHG emissions and discloses the data verified by third party on our sustainability reports.We also calculate supply chain emissions using industry-related average data, LCA information collected from our stakeholders and suppliers, and other sources. Takasago group's GHG emissions reduction targets has been approved by The Science Based Targets initiative in May 2021.Our group updated the GHG reduction targets from well-below 2 degrees to 1.5-degree. In addition, our group formulated an overall net-zero target to achieve net-zero emissions in our value chain. The updated reduction targets are as the below; Image [Near-Term Targets] ・Takasago International Corporation commits to reduce absolute scope 1^※2 and 2^※3 GHG emissions 46.2% by FY2030 from a FY2019 base year. ・Takasago International Corporation also commits to reduce absolute scope 3^※4 GHG emissions 27.5% within the same timeframe. [Long-Term Targets] ・Takasago International Corporation commits to reduce absolute scope 1 and 2 GHG emissions 90% by FY2050 from a FY2019 base year. ・Takasago International Corporation also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe. [Overall Net-Zero Target] Takasago International Corporation commits to reach net-zero greenhouse gas emissions across the value chain by FY2050. With the update of the targets, the short-term targets were re-approved as science-based reduction targets consistent with the 1.5-degree by SBT initiative in April 2025. The long-term and overall net-zero targets were approved as net-zero targets by SBT initiative. We are committed to implement GHG reductions activities to achieve our reduction targets and contribute to a carbon-neutral society with an impact on society towards the realization of a de-carbonized society. ※2.Direct emissions from the reporting company's factories, offices, vehicles, etc. ※3.Indirect energy-derived emissions from electric power and other energy consumed by the reporting company. ※4.Emissions from supply chain activities such as procurement, logistics, use of sold products, etc.
Relevant documents & pages	●Sustainability report 2025 P18：Mateliality Climate Change

Metrics and Targets

Details

The Takasago group challenges to reduce GHG emissions. Takasago calculates and monitors the global GHG emissions and discloses the data verified by third party on our sustainability reports.We also calculate supply chain emissions using industry-related average data, LCA information collected from our stakeholders and suppliers, and other sources.
Takasago group's GHG emissions reduction targets has been approved by The Science Based Targets initiative in May 2021.Our group updated the GHG reduction targets from well-below 2 degrees to 1.5-degree. In addition, our group formulated an overall net-zero target to achieve net-zero emissions in our value chain. The updated reduction targets are as the below;

[Near-Term Targets]
・Takasago International Corporation commits to reduce absolute scope 1^※2 and 2^※3 GHG emissions 46.2% by FY2030 from a FY2019 base year.
・Takasago International Corporation also commits to reduce absolute scope 3^※4 GHG emissions 27.5% within the same timeframe.

[Long-Term Targets]
・Takasago International Corporation commits to reduce absolute scope 1 and 2 GHG emissions 90% by FY2050 from a FY2019 base year.
・Takasago International Corporation also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe.

[Overall Net-Zero Target]
Takasago International Corporation commits to reach net-zero greenhouse gas emissions across the value chain by FY2050.

With the update of the targets, the short-term targets were re-approved as science-based reduction targets consistent with the 1.5-degree by SBT initiative in April 2025. The long-term and overall net-zero targets were approved as net-zero targets by SBT initiative. We are committed to implement GHG reductions activities to achieve our reduction targets and contribute to a carbon-neutral society with an impact on society towards the realization of a de-carbonized society.

※2.Direct emissions from the reporting company's factories, offices, vehicles, etc.
※3.Indirect energy-derived emissions from electric power and other energy consumed by the reporting company.
※4.Emissions from supply chain activities such as procurement, logistics, use of sold products, etc.

Relevant documents & pages

●Sustainability report 2025

P18：Mateliality Climate Change

Transition Plan to Decarbonization

Takasago International Corporation established its net-zero target for 2025, demonstrating its commitment to decarbonization. To achieve our science-based targets, TAKASAGO has identified reductions and developed a program of reduction activities. A range of measures are currently underway, and in the future we will consider offsetting, e.g., purchasing carbon credits and investing in carbon removal technologies. Furthermore, we will utilize an internal carbon price to target direct emissions (Scope 1+2) and supply chain emissions (Scope 3), and leverage it to formulate emission reduction pathways.
We are also focused on product Life Cycle Assesment (LCA), identifying the environmental impact of our products and using this information to provide inventory information and decarbonization strategies. In 2024, our group promoted CFP calculations and the external certification of AI products. LCAs are also used for our own calculation of Scope 3 emissions.

We will continue with our decarbonization strategy to further contribute to a carbon-neutral society.

〇 Our Initiatives to Achieve Our Emissions Targets: Scope 1+2
The Takasago Group monitors energy consumption and promotes the reduction of Scope 1+2 emissions through various measures under its energy management program.
• Renovation of equipment such as boilers, refrigerators, HVAC systems, etc. to increase energy efficiency
• Renovation of buildings to increase energy efficiency, such replacing older lights with LED lights
• Promoting the use of waste heat recovery systems and cogeneration equipment.
• Promoting the switch to more eco-friendly fuels (e.g., from heavy oil to LNG)
• Utilizing renewable energy
• Process innovation considering production efficiency
• Promoting the implementation of energy management/monitoring systems
• Automating facility operations, reviewing operation methods and changing production processes
• Appropriately maintaining and inspecting facilities
• Providing environmental education, including employee training programs specific to energy and climate change
• Setting intensity targets and monitoring progress
In Japan, the Energy Management Committee has been promoting measures in line with the energy consumption reduction targets on a per-unit basis, and energy saving inspections, a type of internal audit, are carried out to implement further improvements across the group.

〇 Our Initiatives to Achieve Out Emissions Targets: Scope 3
Takasago International Corporation is accelerating its efforts toward decarbonization across the entire value chain.　Regarding the reduction of Scope 3 emissions, we recognize that Category 1 emissions (purchased goods and services) are the largest amount of emissions. We have started supplier engagement activities in line with climate change measures. The Procurement Division takes the lead in engaging with the supply chain and works in collaboration with the sustainability team to strive toward achieving our goals.
• Expanding the collection of LCA information from suppliers
• Promoting dialogue and partnerships with suppliers and other stakeholders
• Evaluating and selecting suppliers based on their climate change initiatives
In addition, we are working to reduce Scope 3 through various measures such as more efficient logistics (Category 4) and the reduction of the amount of waste (Category 5).