Sustainability Risks Including Climate Change, Natural Resource Depletion and Carbon Taxes

「Emerging risk factors relating to these activities include climate change, depletion of natural resources, tighter laws and regulations, including carbon taxes, and risks to the transfer of technical knowledge caused by the retirement of experienced employees. These factors may have adverse effects on the Group, such as financial losses and reduced competitiveness.」

「At the same time, domestic and overseas social and economic conditions are changing rapidly and uncertainty about the outlook is increasing further, owing to downside risks to the economy such as inflation and developments in U.S. trade policy, as well as surging crude oil prices resulting from the deterioration of the situation in the Middle East. The markets related to the Company also contain risks such as a decline in willingness to invest in facilities due to inflation.」

「Based on its Environmental Policy and Environmental Targets, the company continuously promotes initiatives to address environmental issues through its business activities. However, emerging risk factors include climate change, depletion of natural resources and tighter laws and regulations, including carbon taxes, which may have adverse effects on the company, such as financial losses and reduced competitiveness.」