Assessing Current GHG Emissions and Setting Future Reduction Targets

「The Group recognizes GHG emissions as an important management metric. Using the Asuene emissions management platform, it is initially focusing on measuring and visualizing its direct emissions (Scope 1) and indirect emissions (Scope 2). Electricity use in the manufacture of its core products, welding materials and top plates (wear-resistant clad steel plates), and in welding construction accounts for approximately 70% of emissions. At present, the Group is carefully assessing the impact of the cost of switching to clean electricity on business profitability.」

「The Company found that approximately 50% of greenhouse gas emissions attributable to its business activities (Note) result from electricity use in its core welding construction business. To reduce greenhouse gas emissions, it will promote the use of renewable energy and upgrade its own equipment while monitoring business profitability.」

「The Group recognizes the need to establish metrics and targets related to climate change. To assess and manage the impact of climate-related risks on management, it is continuing to assess and analyze greenhouse gas (GHG) emissions as a metric. Based on the results of its current-state analysis, the Group plans to establish targets in the future and will continue its efforts to contribute to a decarbonized society.」