Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Safety
• Compliance
• Diversity & Inclusion
• Community Engagement
• Human Capital
• Governance

Environmental Achievements

• Reduced GHG emissions by 37% vs. 2019 (target 35% by 2029)
• Reduced distribution mileage by 1.3% (liquid) and 4% (cylinder transport)
• Reduced water intensity by 15%
• Reduced carbon footprint of products
• Developed a procedure to calculate the carbon footprint of most relevant products
• Received Ecovadis Gold Medal

Social Achievements

• Increased internships from 1.5% to 2.1% of total population
• Launched a European female mentoring project
• Increased female personnel to 27.8% (target 30% by 2026)
• Maintained RI-rate leadership compared to EIGA average
• Improved Recordable Injury rate by 38%
• Increased community engagement initiatives

Governance Achievements

• Incorporated ESG criteria in supplier evaluation
• Enrolled in the UN Global Compact
• Launched a new digital system to report environmental non-conformities
• Implemented a new supplier portal to better manage key initiatives

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions
• Unprecedented prices for basic commodities
• Elevated power prices
• War in Ukraine exacerbating economic difficulties
• Cybersecurity threats

Mitigation Strategies

• Strict discipline and measures to protect employees and stakeholders from the pandemic
• Worked one-on-one with clients to overcome supply chain issues
• Intensified cybersecurity defenses
• Pricing actions to offset increasing inflation and power prices
• Strategic cooperation in innovation

Supply Chain Management

Supplier Audits: 13 audits/year

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• ESG criteria in supplier evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Green hydrogen production

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 14001, ISO 50001

Third-party Assurance: SGS Tecnos S.A.U., Ernst & Young, S.L.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 6 (Clean Water and Sanitation)
• Goal 3 (Good Health and Well-being)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through GHG emission reduction, renewable energy use, responsible resource management, community engagement, and employee well-being programs.

Sustainable Products & Innovation

• Low-GWP refrigerants
• Oxygen burners
• Green hydrogen
• Biomethane

Awards & Recognition

• Ecovadis Gold Medal
• EIGA Cat1 Safety Award 2021
• EIGA Environmental Award 2021
• EIGA Safety Innovation Award 2021
• EIGA Peter Jackson Award 2021
• British Safety Council International Safety Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Energy
• Water
• Waste
• Human Capital
• Diversity & Inclusion
• Safety
• Compliance
• Stakeholder Engagement
• Supply Chain
• Human Rights
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 36% from the FYE2019 baseline.
• Increased renewable energy usage to 35% (76% including low-carbon energy).
• Reduced specific electricity consumption by 8% in the last 10 years.
• Avoided client emissions of more than 1.4 million tons of CO2 (1.5 times more than current emissions).

Social Achievements

• 88% of employees rated their sustainable engagement with Nippon Gases as high (employee survey).
• Increased female employee representation to 27.9%.

Governance Achievements

• Achieved Ecovadis Gold Medal (top 2% in sector for sustainability).
• Participation in Responsible Care program.
• Active participation in the United Nations Global Compact.

Climate Goals & Targets

Environmental Challenges

• Record high natural gas and electricity prices in Europe.
• High inflation.
• Global logistics disruptions.
• Significant product shortages (e.g., CO2 supply chain disruption).
• Slowdown in European industry and general economic slowdown.

Mitigation Strategies

• Pricing actions to offset cost increases.
• Strong cost management discipline.
• Negotiating solid contracts.
• Close contact with suppliers and customers to minimize supply interruptions.
• Receivable and cash flow management.
• Cyber-security awareness activities.

Supply Chain Management

Supplier Audits: 34 audits in FYE2023

Responsible Procurement

• Market reference checks
• Supplier Code of Conduct
• ESG criteria in procurement procedures
• Supplier periodic qualification reviews

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Green hydrogen projects
• Carbon capture and transportation projects

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD, SASB

Certifications: ISO 14001 (74% implementation)

Third-party Assurance: Ernst & Young, S.L. (Limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low-GWP refrigerants
• Green hydrogen
• Biomethane
• BioCO2
• Mizu® solutions for water treatment
• Oxy-fuel combustion solutions

Awards & Recognition

• Ecovadis Gold Medal
• Four EIGA Awards (2022)
• International Safety Awards (British Safety Council)

Environmental Metrics

ESG Focus Areas

• Employee excellence
• Safety
• Compliance
• Environmental sustainability
• Customer focus
• Financial results
• Diversity
• Inclusion
• Climate change
• Water resource management
• Waste management
• Energy efficiency
• Supply chain management
• Employee well-being
• Gender equality

Environmental Achievements

• Reduced waste disposal intensity by >30% relative to sales (compared to FYE2020 baseline)
• Reduced water consumption intensity by >30% relative to sales (compared to FYE2020 baseline)
• Achieved a 30.2% reduction in total CO2 emissions compared to FYE2019 baseline
• Obtained Ecovadis Platinum medal (top 1% of companies in the industry for sustainability performance)
• Enhanced ESG performance rating on the Open-es platform, achieving a score of 94 out of 100 points

Social Achievements

• Launched "Parents Being Born" course focusing on work-life balance
• Introduced the Ambassador role to foster mentorship and employee engagement
• Increased number of women in managerial roles
• Achieved UNI PdR 125:2022 Certification for gender equality (Nippon Gases Pharma)
• Awarded the "Premio 2023 Migliori Esperienze Aziendali" for exemplary practices in contractual welfare

Governance Achievements

• Implemented a new purchasing management system at the European level to assess sustainability aspects of suppliers
• 100% of employees completed Code of Conduct recertification
• Nippon Gases Pharma obtained ISO 37001:2016 anti-corruption certification
• Updated corporate procedures and the Organization and Control Model to align with the "Whistleblowing Regulations"

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability resulting in economic uncertainty, rising commodity prices, and a slowdown in industrial production
• Extended permit approval times delaying project development (biomethane production)

Mitigation Strategies

• Leveraged key strategies to continue growing and turning obstacles into opportunities for innovation
• Developed new strategies to navigate change with professionalism and proactivity
• Forged new partnerships

Supply Chain Management

Supplier Audits: Over 170 audits per year (internal and external)

Responsible Procurement

• Supplier qualification and registration in supplier portal (Zycus platform)
• Safety, Environment, and Compliance questionnaires
• General Conditions of Contract
• Regular monitoring and evaluation of suppliers
• SA8000 and ISO37001 questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes
• Green hydrogen production and utilization

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (In Accordance - Core)

Certifications: ISO 45001:2018, ISO 14001:2015, EMAS, ISO 9001:2015, ISO 22000:2018, FSSC 22000, ISO 13485:2016, ISO/IEC 17025:2018, ISO 37001:2016 (Nippon Gases Pharma), UNI PdR 125:2022 (Nippon Gases Pharma)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Nippon Gases' initiatives contribute to these goals through various projects and programs related to renewable energy, energy efficiency, waste reduction, emissions reduction, and sustainable supply chain management

Sustainable Products & Innovation

• Endogreen™ (Endogas generator)
• Frutil® (fruit ripening blend)
• EiSeiNG (indoor air sanitisation device)
• Low-GWP refrigerant gases

Awards & Recognition

• Ecovadis Platinum medal
• Premio 2023 Migliori Esperienze Aziendali
• EIGA Safety Awards
• Assogastecnici Awards for Safety at Work