Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Quality
• Product Safety
• Occupational Safety and Health
• Employment and Human Resources
• Human Rights
• Social Contribution
• Information Security
• Private Information Protection
• Compliance
• Corporate Governance
• Risk Management
• Information Disclosure

Environmental Achievements

• Reduced industrial waste volume by 31.7% at Aomori factories and 36.7% at TOF (general waste), exceeding 2007 targets.
• Reduced material volume by 11% in Model 13VG2812ASII surveillance camera lens by changing metallic parts to plastic parts.
• Improved groundwater quality around the Omiya head office to a level exceeding environmental standards, leading to the discontinuation of groundwater purification operations.

Social Achievements

• Held stakeholder dialogue to gather feedback on environmental issues and CSR management.
• Improved customer satisfaction survey results by one point.
• Shortened repair service lead time by one day.
• Provided motivation control courses to new and experienced employees.
• Implemented safety and health management regulations, established a safety and health committee, and created an occupational safety and health patrol program.
• Supported photographic institutions and hosted a macro lens photo contest.
• Participated in Saitama Car-free Day Program, reducing CO2 emissions.

Governance Achievements

• Introduced an executive officer system in January 2005.
• Organized an Internal Audit Board in January 2004.
• Set up a CSR management office in January 2007.
• Issued a practical guide on compliance regulations and provided e-learning on compliance.
• Created a risk management manual and established a risk management structure.

Climate Goals & Targets

Environmental Challenges

• Insufficient data collection on environmental loads in China.
• Need for further efforts to promote resource saving.
• Need to reduce the absolute amount of CO2 emissions.
• Need to strengthen the structure of management of chemical substances.
• Increasing number of employees ceasing to function properly for psychological reasons.
• Increase in occupational accidents (8 in 2007 vs 2 in 2006).
• Increase in industrial waste at Hirosaki and Namioka factories.
• Insufficient structure to determine industrial waste volumes at TOF in China.
• Power shortages in China.

Mitigation Strategies

• Operations to understand waste volume to be reinforced at Tamron Optical (Foshan) in 2008.
• Introduction of material flow cost accounting.
• Energy monitoring at the head office and Namioka Factory.
• Easier to understand statements for CSR Reports from 2008 and disclosure of further information at Tamron’s website.
• Further efforts to enhance compliance by obtaining the latest information on laws and regulations on a global basis.
• Implementation of employee satisfaction survey and enhanced educational programs.
• Countermeasures implemented to address occupational accidents.
• Integration of environmental objectives and targets of the Omiya head office, three factories in Aomori and TOF in China from 2008.
• Building a structure capable of keeping track of the volumes of waste generated.
• Employing stronger countermeasures for reducing waste.
• Energy-saving lighting and air-conditioning in designing factory facilities at TOF.

Supply Chain Management

Responsible Procurement

• Green procurement
• Evaluation of suppliers' quality assurance structures, environment conservation structures, and financial conditions.
• Distribution of Environment-related Substance Management Regulations, Guidance for Environmental Quality Assurance Structure, and Environmental Quality Management Procedures to suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, AA1000 Warranty Standards

Sustainable Products & Innovation

• Model 13VG2812ASII surveillance camera lens (reduced material volume).

Awards & Recognition

• TOF commented by Foshan City as an exemplary corporation.

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Quality
• Product Safety
• Occupational Safety & Health
• Employment and Human Resources
• Human Rights
• Social Contribution
• Information Security
• Private Information Protection
• Compliance
• Corporate Governance
• Risk Management
• Information Disclosure

Environmental Achievements

• Reduced CO₂ emissions by 25% compared to 2008 in transportation.
• Reduced water consumption by 13% compared to 2008.
• Reduced total waste volume from the Omiya head office and three Aomori factories by 30% compared to 2008.
• Reduced metal waste by 45% compared to 2008.
• Integrated quality (ISO 9001) and environment (ISO 14001) management systems at head office and three Aomori factories.
• Obtained ISO/TS 16949 certification.

Social Achievements

• Launched Railroad Scenery Photo Contest and Tamron Macro Photo Contest.
• Held photography exhibitions in Saitama City.
• Continued teaching classes at elementary schools in Saitama City.
• Expanded mental health diagnosis program to Aomori area.
• Introduced a new employee trainer system.
• Reduced occupational accidents from six cases in 2008 to two cases in 2009.
• Reduced accidents during commuting from seven cases to four cases.

Governance Achievements

• Established organizational structure for internal control.
• Implemented risk management.
• Held workshops on insider transactions, subcontracting transactions, security, and export trade control.
• Held study sessions on compliance regulations and compliance-related laws and regulations.
• Introduced an internal control reporting system.

Climate Goals & Targets

Environmental Challenges

• Increased CO₂ emissions from Tamron Optical (Foshan) in China (48% increase).
• Insufficient conventional system for procuring materials and components to respond to some customer requirements.
• Slight delays in resource saving design targets.
• Increasing volume of waste prototypes and discarded mold-ascertained prototype products at Hirosaki Factory.

Mitigation Strategies

• Working with designing and manufacturing engineering departments to enhance production efficiency of the factory in China to reduce CO2 emissions.
• Reviewed criteria for selecting business partners and included additional requirements in CSR procurement system.
• Continuing project under the lead of resource saving design promotion sub-committee to release new products using recycled materials.
• Launched a project to reduce inventory at Hirosaki Factory to prevent unnecessary output.

Supply Chain Management

Supplier Audits: Product quality, environment quality and process audits, documentary examination; periodical evaluation; implementation of CSR management by business partners following the Tamron Supplier Codes of Conduct.

Responsible Procurement

• Tamron Supplier Codes of Conduct covering aspects including labor safety, sanitation, environment protection, administration systems and ethical management; green procurement; Tamron Eco Partner Accreditation System; addressing REACH initiative.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, AA1000 Warranty Standards

Certifications: ISO 9001, ISO 14001, ISO/TS 16949

Sustainable Products & Innovation

• Products using recycled materials; products with Tamron Eco Labels.

Awards & Recognition

• SP AF17-50 mm F/2.8 zoom lens won the Gold Prize in the third-party interchangeable lens segment of the 2010 Digital Camera Grand Prix.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced group CO₂ emissions by 6.2% compared to 2009 in basic unit on sales.
• Reduced product weight by 7% and cubic capacity by 8% on average compared to 2011.
• Achieved waste emission reduction targets.

Social Achievements

• Co-sponsored photographic exhibition “Ikiru” – Post-Tsunami – Exhibition to introduce pictures taken after the 2011 earthquake and tsunami.
• Held the 5th Railroad Scenery Photo Contest and 9th Macro Lens Photo Contest.
• Established a global system to complete repair work within three days at all repair service facilities worldwide.

Governance Achievements

• Reviewed and refined risk management systems at domestic factories.
• Improved customer satisfaction concerning quality, communication capability, and technical capability.
• Held workshops for employees to learn more about compliance.

Climate Goals & Targets

Environmental Challenges

• Increased total CO₂ emissions by 10% compared to 2011 due to increased output.
• Increased water consumption at the Foshan factory due to increased output and additional lens polishing machines.
• Minor incident of kerosene leakage at the Hirosaki factory.

Mitigation Strategies

• Implemented measures to save energy consumption at manufacturing facilities, including stricter administration of operations and cutting standby electricity.
• Investigating increases in water consumption and taking countermeasures.
• Promptly changed the kerosene tank ductwork to an internal ductwork to prevent recurrence.

Supply Chain Management

Responsible Procurement

• Tamron Supplier Codes of Conduct (prohibiting child and forced labor, ensuring compliance with CSR procurement).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, ISO 26000:2010

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

• Products with designs acknowledged as DfE designs.

Awards & Recognition

• TIPA Award 2012, Best Entry-level Lens for Compact System Cameras
• Digital Camera Grand Prix 2012 Summer, Gold Prize
• EISA Award – European Zoom Lens of the Year 2012-2013
• Digital Camera Grand Prix 2013, Gold Prize

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 7.0% compared to 2012 per unit of sales.
• Reduced product weight by 1% on average.
• Reduced product size by 1% on average.

Social Achievements

• 100% of eligible employees took parental leave.
• Ratio of hiring of persons with disabilities: 2.3%.
• Established various programs for work-life balance.
• Received Gold recognition for efforts to ensure female employees who give birth return to work.

Governance Achievements

• Established a sound corporate governance system.
• Carried out management with a fundamental focus on compliance.
• 2014 CSR report was recognized with an award of excellence at the 18th Environmental Communication Awards.

Climate Goals & Targets

Environmental Challenges

• Increased total volume of CO2 emissions in 2014 compared to 2013.
• Inability to achieve two environmental targets: reduction in waste plastics and material recycling rate of waste plastics.
• Two occupational accidents and four commute-related accidents in Japan, and four occupational accidents at Tamron Optical Foshan in 2014.
• Violation of environmental laws and regulations at Tamron Optical Foshan in 2013 (resolved in 2014).

Mitigation Strategies

• Improved logistics network to reduce CO2 emissions.
• Implemented energy conservation measures (visualization system, energy-efficient compressors and air conditioners, etc.).
• Analyzing causes of accidents and changing equipment and work procedures.
• Removed external wastewater pipes and updated facilities to improve wastewater treatment capacity at Tamron Optical Foshan.

Supply Chain Management

Supplier Audits: On-site and paper-based audits

Responsible Procurement

• Tamron Supplier Code of Conduct
• CSR procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, ISO 26000

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Molded lenses (reducing water usage)
• Products with Tamron Eco Label (environmentally-friendly designs)

Awards & Recognition

• Award of excellence at the 18th Environmental Communication Awards
• EISA Awards for two lens models

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Established a CO2 Emissions Reduction Committee.
• Implemented various measures to reduce CO2 emissions, resulting in a reduction of 50.8 tCO2 (although overall emissions increased by 5.6% due to increased production).

Social Achievements

• Established the Tamron Kids Day-care Center.
• Revised shorter working hours system for employees with childcare responsibilities.
• Awarded the “Kurumin Mark” for promoting a childcare-friendly workplace.
• Certified as a “Diversified Work-style Promoting Enterprise” by Saitama Prefecture.
• Maintained a percentage of employees with disabilities above the statutory requirement (2.4%).
• Held 11 science classes for children, with 360 participants.
• Supported adaptive athletes.

Governance Achievements

• Employs the Executive Officer System to speed up decision making and improve efficiencies.
• Respects the principles of the Corporate Governance Code.
• Held two earnings presentations and meetings for institutional investors and securities analysts.
• Held five briefings for individual investors.

Climate Goals & Targets

Environmental Challenges

• Increase in company-wide CO2 emissions by 5.6% in FY2015 compared to the FY2012 benchmark, despite a target of a 3% reduction.
• Failure to meet three environmental targets: reduction of waste plastic, material recycling rate for waste plastics, and reduction in industrial waste at Tamron Optical (Foshan).

Mitigation Strategies

• Established a CO2 Emissions Reduction Committee to review and supervise measures to reduce CO2 emissions.
• Implemented measures to reduce electricity consumption, such as switching to energy-saving equipment and LED lights.
• Waste Reduction Subcommittee and Integrated Design, Engineering and Production Subcommittee will work to reduce waste generation.
• Tamron Optical (Vietnam) is working to reduce the burden on the environment through similar activities to other plants.

Supply Chain Management

Supplier Audits: On-site or paper-based audits; CSR procurement requests compliance with Tamron Supplier Code of Conduct.

Responsible Procurement

• Tamron Supplier Code of Conduct
• Surveys relating to conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, ISO 26000:2010 Manual on Business Entities’Social Responsibility, AA1000 Warranty Standard, UN Global Compact

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Development of environmentally-friendly designs, including lightweight and compact designs, and use of recycled materials.

Awards & Recognition

• Award of excellence at the 19th Environmental Communication Awards (2 consecutive years)
• EISA Award for Model A012 lens
• Kurumin Mark
• Saitama Prefecture’s “Diversified Work-style Promoting Enterprise” Platinum Award
• Hirosaki Healthy Enterprise certification to Tamron’s Hirosaki Plant

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Human Rights
• Quality and Safety

Environmental Achievements

• Reduced CO2 emissions by 7.4% compared to FY2015 levels (overall); Tamron Optical (Foshan) reduced emissions by 7.9%, and Tamron Optical (Vietnam) reduced emissions by 12%
• Converted 6,200 lights to LED at Tamron Optical (Foshan)
• Implemented various energy-saving measures at all sites resulting in overall reduction in electricity consumption
• Reduced waste by 7% compared to FY2015 levels (overall); Tamron Optical (Foshan) reduced waste by approximately 84 kℓ through process improvements
• Reduced water consumption by 7% compared to FY2015 levels (overall); Tamron Optical (Foshan) reduced water consumption by around 17% through wastewater recovery and reuse

Social Achievements

• Established Tamron Kids Day-care Center at head office, open to local residents
• Extended parental leave application period to six months after childbirth
• 100% of female employees in Japan who had a child used parental leave and returned to work
• Supported three athletes in the Rio Paralympics
• Held 9 science classes for children, with 256 participants
• Sponsored the 9th Railroad Scenery Photo Contest and the 13th Macro Lens Photo Contest
• Donated to various charities in Japan and overseas

Governance Achievements

• Established an arbitrary committee chaired by an outside director to enhance independence and objectivity in director appointments and compensation
• Implemented training on compliance, including intellectual property rights and anti-bribery
• Zero legal violations reported in FY2016

Climate Goals & Targets

Environmental Challenges

• Failed to meet company-wide environmental goals on CO2 emission reductions in FY2016 due to increased power consumption from the Vietnam plant
• Did not meet waste reduction targets at the Mold & Tooling Technology Center and Tamron Optical (Foshan)

Mitigation Strategies

• Revised CO2 emission reduction goals to a 16.55% reduction from FY2016 levels by FY2030
• Established the CO2 Emissions Reduction Committee to identify and address excess power usage
• Implemented various energy-saving measures at all sites
• Established the Waste Reduction Sub-committee and the Integrated Design, Production Technology and Production Subcommittee to address waste reduction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Tamron Supplier Code of Conduct, incorporating elements of the EICC Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, ISO 26000

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly designs in new products (lightweight, compact, use of recycled materials)

Awards & Recognition

• Award of excellence at the 20th Environmental Communication Awards (three consecutive years)
• Saitama Prefecture Womenomics Project certification as a “Diversified Workstyle Promoting Enterprise”
• Designated a “Platinum Company” under the “Diversified Workstyle Promoting Enterprise” program of Saitama Prefecture
• Kurumin Mark for promoting a childcare-friendly workplace
• Kids Design Award 2016 for Tamron Kids Day-Care Center

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Installed solar power generation at Tamron Optical (Foshan) Co., Ltd.
• Reduced water usage and wastewater generation at Tamron Optical (Vietnam) by 12%
• Recycled 2,957 tons of production wastewater at Tamron Optical (Foshan) using reclaimed water recycling facilities.
• Used 147 tons of recycled material in 6.66 million rear caps from FY2010 to FY2017.
• Started utilizing recycled materials for mass production of filter screw rings in FY2017.

Social Achievements

• 100% of female Tamron employees in Japan who had a child used leave before and after childbirth and parental leave systems and returned to work.
• Exceeded the 2% hiring ratio for people with disabilities in Japan (2.31%).
• Supported adaptive athletes.
• Supported nature restoration project.
• Supported the Cookie Project.
• Provided assistance for photography workshops.
• Organized science classes for children.

Governance Achievements

• Zero legal violations reported in FY2017.
• Revised Tamron Supplier Code of Conduct.
• Launched chemSHERPA scheme for managing chemical substances with business partners.
• CSR report for 2017 received an award of excellence at the 21st Environmental Communication Awards.

Climate Goals & Targets

Environmental Challenges

• Failed to meet CO2 emissions reduction target for FY2017 (3% increase instead of 1.3% reduction).
• Failed to meet three other environmental targets related to waste plastic reduction and recycling.
• Increased total waste generated in FY2017 due to increased in-house manufacturing and higher molding volume at Tamron Optical (Vietnam).
• Temporary release of inadequately treated wastewater into the purification system at Tamron Optical (Vietnam).

Mitigation Strategies

• Implemented energy saving initiatives and installed solar power generation at Tamron Optical (Foshan).
• Implemented measures to reduce CO2 emissions through the CO2 Emissions Reduction Committee.
• Replaced 4,167 lights with LED lighting and switched to energy-efficient motors at Tamron Optical (Foshan).
• Reduced standby power consumption at Tamron Optical (Vietnam).
• Implemented thorough wastewater treatment measures at Tamron Optical (Vietnam).

Supply Chain Management

Supplier Audits: 130 SAQ surveys conducted

Responsible Procurement

• Tamron Supplier Code of Conduct
• chemSHERPA scheme

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, ISO 26000:2010, UN Global Compact

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Ensure healthy lives and promote well-being for all at all ages
• Goal 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation
• Goal 11: Make cities inclusive, safe, resilient and sustainable
• Goal 12: Ensure sustainable consumption and production patterns

Tamron's activities in lenses for vehicle-mounted cameras, environmentally friendly design, traffic monitoring camera lenses, and chemical substance management relate to these SDGs.

Sustainable Products & Innovation

• Environmentally friendly designs; products with Tamron Eco Label; use of recycled materials.

Awards & Recognition

• Award of excellence at the 21st Environmental Communication Awards (four consecutive years)

Environmental Metrics

ESG Focus Areas

• Contributing to social issues through business
• Enhancing product quality and safety management
• Promoting CSR procurement
• Reducing CO2 emissions
• Recycling resources and reducing waste
• Human resource development (improved productivity)
• Improving the governance system
• Expanding the disclosure of non-financial information
• Environmentally friendly design
• Reducing harmful chemical substances
• Water management
• Preparing for major disasters
• Fostering the development of the next generation
• Occupational Health & Safety
• Compliance

Environmental Achievements

• Reduced CO₂ emissions by 0.6% compared with FY2016 levels (on a unit sales basis)
• Reduced industrial waste emissions by 2% (compared with FY2017 levels) at Tamron Optical (Foshan) Co., Ltd.
• Improved material recycling rate by 45% improvement at Hirosaki Plant
• Reduced weight in environmentally friendly designs by 0.3%
• Reduced volume in environmentally friendly designs by 0.5%
• Zero cases of environmental non-conformance

Social Achievements

• Implemented measures leading to diverse working styles (overtime restrictions, flexible working arrangements)
• Ratio of females promoted to management positions: 10.04%
• Ratio of hiring of persons with disabilities: 2.56%
• Conducted a number of social contribution activities aimed at developing the next generation, photography culture, art culture, nature, disasters, regional areas and persons with disabilities

Governance Achievements

• Implemented and improved effectiveness assessment of the Board of Directors
• Appropriate disclosures to the Tokyo Stock Exchange, zero late disclosures and omitted disclosures
• Developed an independent internal reporting system and established a framework (operational from 2019)
• Zero legal violations reported in FY2018
• Revised the system of compensation for company officers to include performance-linked stock-based compensation

Climate Goals & Targets

Environmental Challenges

• Missed initial sales targets, hindering CO₂ reduction consistent with sales
• Increase in water consumption due to switch from organic solvents to ultrapure water in lens cleaning
• Increase in waste generation at Tamron Optical (Vietnam)
• Information leaks including trade secrets

Mitigation Strategies

• Implemented reduction measures such as operational improvements and confirmed the effects
• Installed solar power generating systems at Tamron Optical (Foshan) and Tamron Europe
• Replaced lighting with LED equivalents at Tamron Optical (Foshan)
• Implementing appropriate wastewater management and working on re-use initiatives to reduce water consumption
• Enhanced fire prevention measures and improved monitoring of employee health at Foshan and Vietnam plants
• Established an independent internal reporting desk with stringent confidentiality requirements

Supply Chain Management

Supplier Audits: 265 suppliers surveyed regarding conflict minerals

Responsible Procurement

• Tamron Supplier Code of Conduct
• SAQ surveys
• chemSHERPA scheme
• Policy of not using illegal conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (2016), ISO26000, UN Global Compact, SDGs, RBA Code of Conduct

Certifications: ISO9001, ISO14001, TS16949 (to be migrated to IATF16949)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SNAM Sustainability Index
• Ministry of the Environment and Global Environmental Forum Environmental Communication Awards Grand Prize
• Saitama Prefecture Sai-no-Kuni Plant Designation
• Saitama City Leading-edge Companies Certification
• EISA Awards
• TIPA AWARD
• Digital Camera Grand Prix

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• 3.5% reduction in CO2 emissions compared with 2016 levels on a unit sales basis (though this fell short of the 3.8% target).

Social Achievements

• Obtained outstanding health and productivity management company certification.
• Percentage of female managers rose from 7.8% in 2014 to 10.9% in 2019.
• Exceeded the required hiring ratio for people with disabilities (2.5% vs. 2.2%).

Governance Achievements

• Appointed two external directors, one of whom is female.
• Established an outside reporting hotline for compliance.
• Introduced a stock compensation scheme linked to business performance.

Climate Goals & Targets

Environmental Challenges

• Shrinking digital camera market.
• Reliance on Photographic Products Business.
• Reliance on specific customers.
• Significant appreciation of the yen compared to the expected exchange rate.
• Shrinking digital camera market.
• Handling the mature B-to-C drone market.
• Developing new businesses.
• Allocating management resources to high-growth areas on a priority basis.

Mitigation Strategies

• Sales strategy specializing in interchangeable lenses for mirrorless cameras.
• Expanding sales in the growing market for industrial lenses.
• Actively investing in new businesses.
• Properly responding to fluctuating demand in each region and controlling production.
• Setting CO2 emissions reduction targets in formulating the Environmental Vision 2050, and strengthening related initiatives.
• Action and continual improvement based on business continuity planning (BCP) in Japan and overseas.
• Ascertaining and responding to risks and opportunities based on analyses of the 2 C scenario and 4 C scenario.
• Quality assurance inspections before product shipments.
• Handling the overwriting of firmware.
• Creation of new businesses through the Opto-Science R&D Center.
• Open innovation between industry, academia and government.
• Strategies aimed at the full-scale commercialization of medical products.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Impact on production activities due to damage to plants in Japan or overseas

Transition Risks

• Damage to corporate value through inability to respond to the shift to a decarbonized society
• Rising burden of carbon taxes and renewable energy purchase costs

Opportunities

• Increased demand for teleconferencing cameras as a measure to deal with interruptions to public transportation

Reporting Standards

Frameworks Used: Guidance for Collaborative Value Creation from the Ministry of Economy, Trade and Industry, International Integrated Reporting Framework from the International Integrated Reporting Council (IIRC)

Awards & Recognition

• 2020 Certified Health & Productivity Management Outstanding Organizations Recognition (Major Corporation Category)
• Kurumin Mark
• Platinum + company practicing diverse work styles (Saitama Womenomics Project)
• Excellence Award (Environmental Reporting Category) from the Environmental Communication Awards
• 3 Stars in Nikkei Smart Work Management Survey
• 4 stars in Nikkei SDGs Management Survey
• AAA ranking in TOYOKEIZAI CSR Ranking
• Sai-no-Kuni Plant designation
• Saitama City Leading-edge Companies Certification

Environmental Metrics

ESG Focus Areas

• Reducing CO2 emissions
• Recycling resources and reducing waste
• Human resource development
• Enhancing product quality and safety
• Improving the governance system

Environmental Achievements

• Reduced CO2 emissions by 11.7% compared with FY2015 levels
• Reduced industrial waste emissions by 18% year on year
• Promoted plastic recycling
• Reduced water usage (Tamron Optical (Foshan), China) by 25.6% compared with FY2019

Social Achievements

• Improved mental health check results year on year
• Percentage of female managerial staff: 11.39%
• Percentage of employees with disabilities: 2.24%
• Overtime reduced by 17% year on year (Head Office) and 61% year on year (Aomori)

Governance Achievements

• Revised Corporate Mission
• Improved Board of Directors: implemented 10 items

Climate Goals & Targets

Environmental Challenges

• Impact of stagnant economic activity on business performance (COVID-19 pandemic)
• Shrinking digital camera market
• Reliance on Photographic Products Business
• Reliance on specific customers
• Fluctuating product prices, too much or too little inventory
• Lack of procurement of glass materials
• Burden from carbon taxes and renewable energy purchase costs
• Defects due to improper matching between lenses and cameras
• Decline in competitiveness when the development of cutting-edge technologies or their application in products is not advanced as scheduled
• Failures to establish business alliances or acquire companies to strengthen business
• Impact on production activities due to damage to plants in Japan or overseas
• Damage to brand value due to declining product quality or defects
• Intensifying competition to hire and retain talented human resources
• Impact on new hires and continuing employment due to increasing functionality of smartphone cameras
• Leaking of corporate information and personal information due to damaged information system functions caused by computer viruses and the like
• Experiencing various impacts due to global political, social and economic trends
• Damage to corporate value due to corporate behavior that violates laws or diverges from social norms

Mitigation Strategies

• Implementation of strategies based on the Environment Vision 2050 (energy saving and introduction of renewable energy)
• Action and continual improvement based on business continuity planning (BCP) in Japan and overseas
• Quality assurance inspections before product shipments
• Handling the overwriting of firmware after shipping
• Investment in new businesses
• Investment in M&A activities
• Technology development and creation of new businesses based on medium- to long-term strategies
• Open innovation between industry, academia and government
• Strategies aimed at the full-scale commercialization of medical products
• Building and improving quality assurance systems
• Job-specific hiring, positional and grade systems, systems to solicit positional applications internally
• Creating a comfortable workplace environment by promoting a healthy work-life balance and diversity
• Developing information security systems
• Implementing management based on an information security policy
• Continually monitoring the global political, social and economic climate to analyze the impact in relation to corporate activities
• Determination and promotion of policies by the Compliance Committee

Supply Chain Management

Supplier Audits: Conducted SAQ surveys at all suppliers

Responsible Procurement

• Add CSR assessment items to supplier management indicators

Climate-Related Risks & Opportunities

Physical Risks

• Suspension of product supply as a result of factory shutdowns due to severe natural disasters

Transition Risks

• Increase in business costs due to carbon taxes and emission trading

Opportunities

• Increase in order opportunities due to responding to decarbonized society at an early stage

Reporting Standards

Frameworks Used: Guidance for Collaborative Value Creation from the Ministry of Economy, Trade and Industry, International Integrated Reporting Framework from the International Integrated Reporting Council (IIRC)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Tamron's initiatives contribute to these goals through various activities related to environmental protection, social responsibility, and good governance.

Sustainable Products & Innovation

• Far-infrared camera module
• Industrial lens enabling wideband photography from visible light to shortwave infrared (SWIR) wavelengths

Awards & Recognition

• 2021 Certified Health & Productivity Management Outstanding Organizations Recognition (Major Corporation Category)
• Kurumin Mark (since 2015)
• Nikkei Smart Work Management Survey: 3 Stars (2020)
• Nikkei SDGs Management Survey: 4 stars (2020)
• TOYO KEIZAI CSR Ranking: AAA (2020)
• Leading-edge Companies Certification (Saitama City, since 2009)
• Designated plant exhibiting exceptional technical and environmental achievements (Saitama Prefecture, since 2007)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guidance for Collaborative Value Creation from the Ministry of Economy, Trade and Industry, International Integrated Reporting Framework from the International Financial Reporting Standards (IFRS)

Environmental Metrics

ESG Focus Areas

• Environment
• Human resources and rights
• Quality and Product Safety
• Promoting CSR procurement
• Solving social issues through corporate activities (SDGs)
• Corporate governance

Environmental Achievements

• Reduced CO2 emissions (Scope 1 and 2) by approximately 12.0% compared with FY2015 levels (9% target)
• Water use Foshan Factory: 6.5% year on year decrease (Target:5.0% reduction in comparison with FY2022)
• Reduce bags used for user manuals: Reduction rate in new models 100%
• Achieved net-zero CO2 emissions for the portion of electricity self-generated and covered by non-fossil fuel certificates at the head office and Foshan Plant.

Social Achievements

• Formulated the Tamron human rights policy
• Conducted human rights due diligence including dialogue with stakeholders (labor union), SAQ surveys of suppliers, and improvement activities for high-risk suppliers
• Overtime: 132,000 hours or less per year (Head Office) (Target:115,000 hours or less per year (Head Office))
• Percentage of female managerial staff: 8.0% (10.0% target)
• Percentage of employees with disabilities 2.07%(over 2.3% target)
• 100% of female Tamron employees in Japan who have had a child have made use of maternity leave before and after childbirth and the parental leave system, and subsequently returned to work.

Governance Achievements

• Established the Risk Management Committee and the Information Management Committee
• Plan to improve the Board of Directors determined and implemented
• Response to and supervision of Human resources Strategy, the Group's risk management system and other matters enhanced
• Enhancement of human resource-related disclosures
• Transitioned to a company with an Audit & Supervisory Committee

Climate Goals & Targets

Environmental Challenges

• Industrial waste emissions: 6.7% year on year increase
• Plastic recycling rate: China Factory: 3.8% (10.0 % target)
• Mental health check results: Remained flat year on year (Target : improve year on year)
• Increase in the social contribution ratio aimed at fostering the development of the next generation: Down 2% from the 2022 level (the target had been to achieve a higher ratio than in 2022)
• Vietnam Factory:1.0% year on year increase in water use (Target: 1.0% reduction in comparison with FY2022)
• Risk of suspension of product supply as a result of factory shutdowns and disrupted supply chains due to natural disasters of increasing severity (flooding and localized torrential rain)
• Damage to corporate value or risk of suspension of trade through inability to respond to the shift to a decarbonized society
• Burden of carbon taxes and risk of increased costs due to renewable energy purchases

Mitigation Strategies

• Business continuity planning (BCP) to deal with short-term climate change risks related to the supply chain
• Adapting to a decarbonized society based on Environmental Vision 2050
• Implementing measures to prevent the recurrence of the inappropriate use of Company funds

Supply Chain Management

Supplier Audits: 186 primary suppliers surveyed via SAQ in 2023

Responsible Procurement

• Tamron Supplier Code of Conduct (compliant with RBA Code of Conduct)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Localized torrential rain

Transition Risks

• Burden of carbon taxes
• Increased costs due to renewable energy purchases

Opportunities

• Expanded sales of lenses used in inspections of infrastructure contributing to improved social resilience such as disaster prevention and mitigation

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Product quality and safety management
• Sustainable supply chain
• Social contribution through business
• CO2 emissions reduction
• Resource recycling and waste reduction
• Environmentally friendly design
• Reduction of harmful chemical substances
• Water management
• Human resource development
• Diversity, Equity & Inclusion (DE&I)
• Respect for human rights
• Health and productivity management
• Compliance enforcement
• Business continuity management (BCM)
• Information security
• Governance system improvement
• Information disclosure

Climate Goals & Targets

Environmental Challenges

• CO2 emissions
• Resource depletion and waste disposal
• Harmful chemical substances
• Water usage in production
• Disasters and business continuity
• Information security threats

Mitigation Strategies

• Integrated management system
• Self-assessment questionnaires and reciprocal in-house checks
• Outside audits
• CSR Committee oversight
• Design review meetings
• Risk management committee
• Information management committee
• Governance review committee
• Compliance committee

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI