In order to pass on a better global environment to the children of the future, as a responsible corporate citizen, we promote environmentally considerate business activities, work to solve environmental issues, and contribute to the realization of a sustainable society.

1. Compliance

1-1. Compliance with Laws and Regulations
We comply with international declarations, conventions, treaties, and the laws and regulations of the countries and regions where we operate, as well as other industry standards. In addition, we conduct due diligence to identify and appropriately address potential environmental risks when expanding our business through mergers and acquisitions.

2. Addressing Environmental Issues

2-1. Response to Climate Change
We contribute to the transition to a decarbonized society by utilizing clean energy, such as renewable energy, and innovative technologies to reduce greenhouse gas emissions from vehicles, factories, and facilities. We aim to achieve a carbon-neutral society in line with the Paris Agreement by promoting emission reductions not only in our own business activities but also across the entire supply chain.

• Realization of Carbon Neutrality:
  We reduce greenhouse gas emissions (Scope 1, 2) by 50% compared to 2019 and work towards achieving carbon neutrality by 2050, in accordance with our "Carbon Neutral Roadmap 2030."
• Investment Stance on Fossil Fuel-Related and Green Energy Businesses:
  We will not make new investments leading to fossil-fuel expansion and will proceed to withdraw from existing coal, heavy oil and gas-fired power generation businesses, while strengthening investments in green energy.
• Adaptation to Climate Change:
  We will implement actions and technologies to adapt to future climate change to ensure the continuity of our business.

2-2. Water Resource Management
We manage the following activities to ensure the sustainable utilization and procurement of water resources in our operations, and along the upstream and downstream value chain:

• Reduction of water withdrawal and consumption in direct operations in regions with high water scarcity or regions with risk of high-water scarcity.
• Appropriate wastewater treatment and water recycling
• Design and provision of products and services that use less water
• Provision of safe water and hygienic toilets

2-3. Response to Biodiversity
We recognize that biodiversity is a prerequisite for the continuation of corporate activities, works towards no-deforestation, no-conversion of natural ecosystems, and no development on peatlands by target dates. We also collaborate with stakeholders on a global and long-term basis to conserve biodiversity. Furthermore, we conduct risk assessments related to business creation and existing activities, ensure traceability, and aim to balance biodiversity conservation with business activities in line with the Kunming-Montreal Global Biodiversity Framework.

2-4. Control, Reduction and Elimination of Air Pollution, Water Pollution and Soil Contamination
We identify impacts, risks, and opportunities related to air pollution, water pollution and soil contamination, and strives for their prevention and management:

• We set our own standards at 80% or less of the pollution and contamination related limits defined by environmental laws and ordinances, and through daily management and internal audits we ensure compliance.
• We take action to prevent and mitigate the impact of water pollution by properly treating wastewater resulting from business activities and reducing the use of water-polluting substances.
• When managing incidents and emergency situations, we quickly control and minimize their impact on people and the environment.

2-5. Chemical Substance Management
Some substances used may cause environmental pollution or health hazards. We comply with regulations regarding the use and management of these hazardous substances. We work together with customers and suppliers in the value chain to reduce their use and progressively phase them out.

2-6. Resource Circulation and Waste Management
We contribute to the realization of a circular economy through effective use of resources and the reduction of waste.

• We promote circular business models that reuse waste as resources, such as recycling scrap from end-of-life vehicles and factories, securing resources from urban mines, and reusing used cars and parts.
• We actively promote environmentally friendly businesses in cooperation with suppliers and related companies, contributing to the creation of a sustainable society.
• We strive to reduce use of natural resources in our own business activities and work towards substituting them with recycled resources. By circulating resources, we suppress generation of waste.

3. Stakeholder Engagement

3-1. Establishment of Environmental Management Systems
We implement environmental conservation activities through the establishment of environmental management systems and aim for continuous improvement through reviews and use of creativity.

3-2. Environmental Education
We educate all employees and external stakeholders about our environmental policy through initiatives such as briefings. By sharing the impact of our business activities on the environment and issues and measures related to energy use, we aim to enhance environmental awareness.

3-3. Collaboration and Cooperation with Society
We promote understanding through dialogue with residents, institutional investors, and non-profit-organisations. We strengthen stakeholder engagement and capacity building on environmental issues by deepening our endorsement and collaboration with initiatives. We will not provide funding towards climate-denial activities or lobbying activities against climate regulations.

3-4. Information Disclosure
We work towards the regular disclosure of information on environmental performance and environmental issues, sharing it widely with society, and provide information to interested parties.

3-5. Addressing the Multifaceted Nature of Environmental Issues
We will carefully evaluate expected synergies and trade-offs when addressing environmental issues and proceed with initiatives considering the multifaceted nature of environmental challenges.

1st March 2025

Hiromasa Ishii
TTESA President
TTUK Managing Director
TTR Director