Climate change risks from extreme weather and the transition to decarbonization

「The Group is improving workplace environments made increasingly harsh by climate change through measures such as heat mitigation in summer and capital investment for labor-saving and automation. It has also formulated a business continuity plan (BCP) that establishes procedures to ensure employee safety and a stable supply of products in emergencies.」

「The Group operates manufacturing, sales and other sites in Japan, Vietnam, the United States and Canada. In these countries and regions, the Group's performance may be affected by transition risks arising in the shift to a carbon-neutral society, including tighter greenhouse gas emissions regulations, the introduction of carbon pricing, expanded disclosure requirements, and the burden of technology development and capital investment for decarbonization. It may also be affected by physical risks, including factory shutdowns caused by increasingly severe extreme weather such as typhoons, floods and extreme heat associated with global warming and other climate change, difficulty procuring raw materials due to disruptions to the business activities of suppliers and others, and adverse effects on employee safety and health.」

「The Group's performance may be affected by physical risks, such as the impact of increasingly severe extreme weather on factory operations and employee safety and health, and transition risks, including tighter greenhouse gas emissions regulations, the introduction of carbon pricing such as carbon taxes and emissions trading, expanded disclosure requirements, progress in carbon-neutral technologies, and reputational damage resulting from an inability to respond to changes in laws and regulations or technological progress.」