To promote specific activities towards our Sustainability Vision, we have established an ESG Task Force under the Sustainability Committee on the theme of addressing climate change, which is chaired by the President. The ESG Task Force is promoting actions to reduce our Scope 1 and Scope 2 CO2 emissions by 3% per year, and to identify Scope 3 categories and calculate CO2 emissions in our supply chain.

The Group will promote these initiatives on a global basis, while monitoring global trends relating to the reduction of CO2 emissions, with an eye to introducing even more ambitious target-setting.

As a measure to reduce CO2 in the Nissha Group in Japan, Nissha Industries, Inc. Koka Factory, a production base for our Industrial Materials business, is into its second fiscal year of using 100% renewable electricity, and is also working on reducing its gas consumption, having updated the old-style deodorizing equipment with a heat storage type as of December 2023. Nissha Precision and Technologies, Inc. Himeji Factory and Kaga Factory, production bases for our Devices business, switched to 100% renewable electricity for the factories in December 2023.

At overseas bases, since 2018, Nissha (Kunshan) Precision IMD Mold Co., Ltd. (China), an Industrial Materials business unit production base, has continued to generate solar power, and Nissha Metallizing Solutions N.V. (Belgium) replaced part of its electricity with wind power at its production bases. Nissha Metallizing Solutions S.r.l. (Italy) introduced solar power generation in 2022 and a cogeneration system in 2023, and is generating electricity through gas combustion and effectively using the waste heat generated to produce hot and cold water.

In addition, we are switching to LED lighting and upgrading aging facilities with energy-efficient equipment to contain electricity consumption.