NISSO HOLDINGS Co., Ltd.

Climate Impact & Sustainability Data (FY 3/2022 (April 1, 2021~March 31, 2022), FY 3/2024 (April 1, 2023~March 31, 2024))

Reporting Period: FY 3/2022 (April 1, 2021~March 31, 2022)

Environmental Metrics

Total Carbon Emissions:2,279 t-CO2 (FY 3/2022)

Scope 1 Emissions:2,279 t-CO2 (FY 3/2022)

Scope 2 Emissions:714 t-CO2 (FY 3/2022)

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Approximately 612,600 kWh (FY 3/2022)

Water Consumption:Approximately 3000 m3 (FY 3/2022)

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Creation of a comfortable workplace
Responding to social changes and changes in industrial structures
Strengthening of governance

Environmental Achievements

Reduced paper usage by approximately 26.8%
Achieved 96% green purchasing rate of company-use equipment
Reduced CO2 emissions equivalent to 2,363 kg by collecting and donating PET bottle caps

Social Achievements

100% return rate of female employees after maternity and childcare leave for 9 consecutive years (Nisso Brain)
93.7% female employee ratio (Nisso Brain)
70.7% female employee ratio (Nisso Nifty)
Implemented human rights education for all employees (target: 100%)
Introduced a region-limited employee system and telecommuting system to improve work-life balance
Established Nisso Pure Co., Ltd. to actively hire people with disabilities, employing 174 employees with disabilities as of April 2022

Governance Achievements

Established the Sustainability Council to address climate change and other ESG issues
Established the Internal Control ・Compliance Council to strengthen internal controls and compliance
Established the Nomination and Remuneration Committee to enhance transparency in personnel affairs and remuneration
Implemented compliance education for all officers and employees

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Achieve carbon neutrality (net zero emissions) by 2050

Short-term Goals:

Not disclosed

Environmental Challenges

Increased electricity usage due to COVID-19 countermeasures and lower winter temperatures
Deterioration in fuel efficiency due to reduced long-distance business trips
Increased overall waste generation due to an increase in the number of employees
Potential supply chain disruptions due to extreme weather events
Potential health hazards for employees due to heat waves and droughts

Mitigation Strategies

Promoting a switch to more fuel-efficient transportation methods and remote work environments
Improving the efficiency of sales activities
Implementing measures to prevent heatstroke among employees
Conducting risk assessments and workplace inspections to prevent hazards
Promoting eco-driving and reducing electricity consumption

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Promotion of CSR procurement

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events (floods, typhoons)
Heat waves and droughts

Transition Risks

Introduction of carbon tax
Regulatory changes
Market shifts

Opportunities

Reduction of reputation risk and enhancement of brand strength
Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SDGs, UN Global Compact

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

2021 Excellent Corporate Website Award
2021 Internet IR Excellence Award
Yokohama Health and Productivity Certification, Class AA (Nisso Pure)
Yokohama Community Contribution Company (Nisso Pure)
Yokohama Good Balance Award (Nisso Pure)

Reporting Period: FY 3/2024 (April 1, 2023~March 31, 2024)

Environmental Metrics

Total Carbon Emissions:3,015 t-CO2e/year (NISSO CORPORATION)

Scope 1 Emissions:2,429 t-CO2e/year (NISSO CORPORATION)

Scope 2 Emissions:586 t-CO2e/year (NISSO CORPORATION)

Renewable Energy Share:30% (Headquarters, as of March 31, 2024)

Total Energy Consumption:1,530,655 kWh/year (NISSO CORPORATION)

Water Consumption:3,261 m3/year (NISSO CORPORATION)

Carbon Intensity:0.031 t-CO2/Million yen in sales (FY 3/2024, NISSO CORPORATION)

ESG Focus Areas

Human Resources Development
Diversity
Respect for Human Rights
Safety and Health
Response to Climate Change
Compliance
Corporate Governance
Community Contribution

Environmental Achievements

Reduced GHG emissions to 3,015 t-CO2 in FY 3/2024 from 3,116 t-CO2 in the same period of the previous fiscal year. Reduction mainly due to decreased Scope 2 emissions (electricity consumption), LED lighting, and renewable energy contracts at headquarters.
30% renewable energy utilization rate at headquarters as of March 31, 2024.

Social Achievements

Launched NISSO HR Development Service to address business partner needs for education/training.
Developed "Start engineer," an e-learning tool for training new manufacturing engineers.
Increased male childcare leave acquisition rate to 25.0% in FY 3/2024.
Established Nisso Pure Co., Ltd. to employ people with disabilities; as of 2023, over 100 employees with disabilities are working.
Introduced a share incentive system for Nisso Group employees.

Governance Achievements

Revised the Nisso Group's "Ethics Policy" and "Occupational Safety and Health Policy" in October 2024.
Endorsed the Task Force on Climate-related Financial Disclosures (TCFD) in October 2023.
Established the "Compliance Regulations" to ensure compliance with laws, regulations, and internal rules.
Launched the public relations website "NISSO CONNECT" in October 2024.

Climate Goals & Targets

Long-term Goals:

Achieve carbon neutrality (net zero emissions) by 2050.

Medium-term Goals:

Achieve 30% GHG emission reduction by 2030 based on FY 3/2021.
Achieve about 50% renewable energy usage by 2030.

Short-term Goals:

Increase ratio of engineers to 15.0% by April 2025.
Increase ratio of female managers to 11.5% by April 2025.
Reduce GHG emissions by 30% by 2030 based on FY 3/2021.

Environmental Challenges

Labor shortages, mismatches, regional decline, widening disparities, and changes in the natural environment.
Acceleration of Japan's declining birthrate and aging population.
Climate change and its impact on business, strategies, and financial plans.
Maintaining compliance with laws and regulations and ensuring management transparency.

Mitigation Strategies

Developing human resources who can challenge all possibilities in all fields.
Creating an environment where diverse human resources can flourish.
Implementing the "Human Resources Development Policy" and "Internal Environment Improvement Policy".
Formulating strategies to reduce climate change risks and acquire opportunities.
Establishing a company-wide Safety and Health Committee and safety and health committees for each business site.
Implementing the PDCA cycle of safety and health activities.

Supply Chain Management

Responsible Procurement

CSR Procurement Guidelines for Tier 1 suppliers.

Climate-Related Risks & Opportunities

Physical Risks

Floods, storms, heat waves, droughts

Transition Risks

Regulatory changes (e.g., carbon tax), market shifts

Opportunities

Streamlining sales activities, reduced reputation risk, enhanced brand strength.

Reporting Standards

Frameworks Used: GRI Standards, SDGs, UN Global Compact, TCFD

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

Goal 7 (Affordable and Clean Energy)
Goal 8 (Decent Work and Economic Growth)
Goal 10 (Reduced Inequalities)
Goal 13 (Climate Action)

Initiatives contribute to these goals through human resources development, diversity and inclusion, climate change mitigation, and community engagement.

Awards & Recognition

Superior Manufacturing Contractor certification
Excellent Dispatching Business Operator Certification
PrivacyMark
Yokohama Community Contribution Company certification (Nisso Pure)