Information Disclosure Based on TCFD Recommendations（Jun. 17, 2026）

Policies and Basic Approach

Climate change is one of the most pressing issues facing global society. It is a highly urgent issue that seriously impacts people's lives and the natural environment as seen in the unprecedented extreme weather events that are already occurring with greater frequency and intensity around the world. The Paris Agreement, an international treaty on climate change measures, aims to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and states that this requires achieving a balance between anthropogenic greenhouse gas (GHG) emissions and removals by the second half of this century.
The Inabata Group fully recognizes the effects of climate change and the need for countermeasures, and has made it clear that the Group strives to conserve the global environment through business activities in its Sustainability Basic Policy, Sustainability Code of Conduct, and Declaration of Compliance. When we announced materiality in June 2022, we highlighted "contributing to a decarbonized and circular society" and identified global environmental problems, including climate change, as one of the key issues for management.
We consider climate change a risk to the Group, but one that also presents business opportunities. Therefore, as well as taking steps to reduce GHG emissions, we seek to provide products and solutions that contribute to a decarbonized society.
Having endorsed the recommendations issued in June 2017 by the Financial Stability Board's (FSB) Task Force on Climate-related Financial Disclosures (TCFD),* we work to develop an appropriate understanding of the impact of climate change on our business activities and disclose the details of such impact.

* The TCFD was launched in 2015 at the request of the Group of Twenty (G20). Recognizing the significant impact that climate change will have on financial markets, the Final Report (Recommendations of the TCFD) released in 2017 called on companies and other entities to disclose information on the risks and opportunities presented by climate change.

• Sustainability at the Inabata Group：Sustainability Management
• Governance：Compliance/Anti-corruption：Policies and Basic Approach
• Sustainability at the Inabata Group：Materiality

TCFD's core elements of recommended climate-related financial disclosures and a summary of responses by the Inabata Group

Information disclosure based on TCFD recommendations (Jun. 17, 2026)

Structure (Governance)

Please refer to the Governance section on the Sustainability Management page.

• Sustainability at the Inabata Group : Sustainability Management : Governance

Strategy

The Inabata Group strives to understand the business risks and opportunities arising from the transition risks and physical risks of climate change, and to reflect this in the formulation of climate change countermeasures and business strategies.
In addition to 2030, which is the year for achieving our long-term vision IK Vision 2030, the scenario analysis below assumes 2050, which is the year for achieving our carbon neutrality target. We consider both qualitative and quantitative aspects with reference to the 4℃ scenario, which assumes no implementation of more ambitious climate change measures and intensifying extreme weather events, and the 1.5℃ scenario (partly combined with the 2℃ scenario), which assumes implementation of more ambitious climate change measures aimed at decarbonization.

Scenario analysis was conducted with the following process.

(1) Visualization of the world in the future based on scenarios

Before conducting qualitative and quantitative analysis, we visualized what the world might be like based on the above scenarios. The following sections describe future visions of society based on 1.5℃ and 4℃ scenarios.

Future vision of society based on the 1.5℃ scenario

Future vision of society based on the 4℃ scenario

(2) Analysis of impact of climate change risks in business segments

Next, we determined the extent of the impact that climate-related risks would have in the 1.5℃ and 4℃ scenarios on our four business segments (Information & Electronics, Chemicals, Life Industry, and Plastics). In the 1.5℃ scenario, we mainly assessed the impact of transition risks. In the 4℃ scenario, we mainly assessed the impact of physical risks.
Each segment differs not only in the products it handles, but also in terms of aspects such as the market where the products are sold and the supply chain. Therefore, we recognize that risks that will have an impact and the extent of said impact will differ depending on the segment, as indicated below.

(3) Qualitative analysis of scenario and identification of key responses in business segments

We then conducted a qualitative scenario analysis for each business segment. We analyzed projected business environments, main risks, and main opportunities for the 1.5℃ and 4℃ scenarios based on the reference scenarios, the content of (1) and (2) above, and other factors. In addition, we also identified key responses to address risks and seize opportunities going forward.
Although trading is the core function of the four segments of Information & Electronics, Chemicals, Life Industry, and Plastics, they operate under different business models combining auxiliary functions in line with customer needs. Their markets and supply chains differ as well. Therefore, the segments have both common risks and opportunities as well as unique risks and opportunities they do not share.

1.5℃ scenario

4℃ scenario

(4) Calculation of financial impact (quantitative scenario analysis)

In addition to qualitative analysis, we also conducted quantitative analysis.
We selected the calculable risks and opportunities from the content considered in (1) to (3), and collected the Inabata Group's performance figures and information about the forecasted future (parameters) from external organizations for the calculation. We then calculated the financial impact of the risks and opportunities based on both the 1.5℃ and 4℃ scenarios.
Note that these financial impact estimates were obtained by narrowing down the scope of the analysis and establishing hypothetical situations based on the limited information and data available at this point in time.

(5) Results of scenario analysis (summary)

The results of analyses (1) to (4) are summarized below.
Regarding the 4℃ scenario, whereas the Group’s bases in Japan and overseas are assumed to suffer damage due to intensifying extreme weather events, the risk is not estimated to be so great as to significantly impact business operations. In terms of opportunities, demand for products adapted to rising temperatures and changing weather patterns is expected to increase. This has made us recognize anew the potential to contribute to society by helping society as a whole adapt to global warming while maintaining the Group’s resilience.
Regarding the 1.5℃ scenario, we identified the increase in operating costs due to the introduction of carbon pricing and steep rises in the price of electricity as a risk. However, the risk is projected to be more than offset by gaining revenue opportunities from future growth in technologies and products that contribute to low-carbon economy and reduced environmental impact. We have reaffirmed that the growth strategy of expanding our environment-related business set out in the New Challenge 2026 medium-term management plan and the strategy to contribute to the global environment through business specified in the Sustainability Medium-term Plan 2026 will have a great impact on our growth in the decarbonized society of the future.
In regard to our environment-related business, we positioned its expansion as a companywide growth strategy in the New Challenge 2026 medium-term management plan and set a target of achieving net sales of 100 billion yen for environment-related business by FY2026 in the Sustainability Medium-term Plan 2026, which was released at the same time as the medium-term management plan. Efforts to achieve these goals are being driven across all segments.
Regarding the totalization of net sales, we have calculated and reported net sales over time as follows.

Risk Management

At the Inabata Group, climate-related risks and opportunities are managed by the Sustainability Committee, as we believe that traditional risk management methods alone are insufficient to manage long-term impacts that include elements of uncertainty. The committee differentiates and assesses risks and opportunities identified and examined from both qualitative and quantitative perspectives based on scenario analysis, and translates them into indicators and targets in the medium-term plan. The committee manages said risks and opportunities by monitoring the progress on the targets. All directors participate in the committee, thereby serving as the Board of Directors’ oversight function through the committee. The committee itself reports to and is overseen by the Board of Directors as necessary.
The risks and opportunities for individual material issues and main initiatives to address them are reaffirmed in the Sustainability Medium-term Plan 2026 and the indicators and targets have been reflected in the plan. For details, see the Sustainability Medium-term Plan 2026 on the Inabata Group website. (Sustainability Medium-term Plan 2026)
In order to prevent the diverse risks that could affect the entire Inabata Group from happening and address such risks when they do happen, relevant units such as the Risk Management Office and the Financial Management Office apply their individual expertise to continuously differentiate, assess, and manage risks related to business partners, products, import and export, financial management, compliance, and so forth. Furthermore, relevant committees and forums such as the Compliance Committee collaborate with each other to form a management system capable of properly addressing risks. Important matters are reported to and overseen by the Board of Directors as necessary. Risks and opportunities regarding sustainability—including climate change—are differentiated, assessed, and managed by the Sustainability Committee as described above, and reported to the Board of Directors when deemed necessary. The Board of Directors oversees Group-wide risks of high importance in an integrated manner, taking into account risks and opportunities regarding sustainability reported by the Sustainability Committee as well as other risks reported by other relevant committees and units. In addition, each risk is assessed from the dual perspectives of assumed impact on performance and probability, as part of the annual Board of Directors effectiveness evaluation.

• Governance: Risk Management: Identifying and Addressing High-Priority Risks

In June 2022, we identified materiality (material issues) for the sustainable growth of the Inabata Group. Issues are identified by assessing their importance based on risks and opportunities. Contributing to a decarbonized and circular society has also been identified as an important material issue.
In the Sustainability Medium-term Plan 2026 announced in May 2024, risks and opportunities for each materiality were reviewed, organized, and disclosed.

• Sustainability at the Inabata Group：Materiality
• Sustainability at the Inabata Group：Sustainability Medium-term Plan 2026

Carbon Neutrality Declaration 2050

In June 2022, the Inabata Group announced its Carbon Neutrality Declaration 2050, committing to achieving net-zero* GHG emissions from business activities by FY2050.
Climate change is one of the most critical challenges facing the global community, and calls for action are growing worldwide. As momentum toward decarbonization accelerates both in Japan and internationally, the Group's Carbon Neutrality Declaration 2050 responds to these global expectations and declares our commitment to further accelerate efforts to address climate change.
We have long maintained an environmental management system based on ISO 14001 and have implemented initiatives such as energy management. Looking ahead, we will further strengthen our decarbonization efforts to achieve carbon neutrality. In addition, through our business activities we will focus on providing a wide range of products and solutions that contribute to a decarbonized society.

* This declaration covers the Group's own emissions, namely Scope 1 (fuel use within the Group) and Scope 2 (use of purchased electricity and heat), as defined by the GHG Protocol.

Metrics and Targets

In June 2022, the Inabata Group set the long-term target of achieving carbon neutrality by FY2050 (covering Scope 1 and 2 emissions of the consolidated Group) in order to commit to achieving the global goal of limiting the increase in temperatures to 1.5℃ as stated in the Paris Agreement.
Climate change is one of the most pressing issues facing global society. There are calls for climate action worldwide, and momentum toward decarbonization is accelerating both in Japan and internationally. The Group's Carbon Neutrality Declaration responds to these global expectations regarding climate change and reflects our commitment to accelerating efforts to address climate change.
Subsequently, in the Sustainability Medium-term Plan 2026 announced in May 2024, we set the medium-term target of reducing GHG emissions by 25% compared to FY2022 levels by FY2026 and 42% by FY2030. This target is aligned with the 1.5d℃ goal set out in the Paris Agreement.
Going forward, we will reduce power consumption by converting to LED lighting, introducing and replacing equipment with more energy-efficient air conditioning systems and machinery, improving operational efficiency. In addition, we will promote the use of renewable energy through renewable energy certificates and other initiatives.
Since FY2021, we have calculated Scope 3 emissions in order to understand emissions for our entire supply chain. Currently the calculation covers only the parent company, but we plan to expand the scope in the future.

■GHG emissions reduction targets

■Inabata supply chain emissions (FY2024)

The data marked with ★ for FY2024 has received third-party assurance from LRQA Limited in accordance with the international standard ISO 14064-3:2019.

This table can be scrolled horizontally.

• Sustainability Data：Environment : Energy and climate

Main Intitiatives

We regularly publish internal circulars, company newsletters, and other materials to raise employee awareness about energy conservation related to lighting, office equipment, and air conditioning. During the period from May to October, we implement a Cool Biz program, aiming to set air conditioning temperatures at 28°C. Since November 2020, even after the end of the Cool Biz period, we have implemented a policy allowing employees to forgo wearing ties during office hours. This promotes health management through appropriate indoor temperature settings and clothing suited to the season. We are also replacing office and factory lighting with LEDs in an effort to reduce electricity consumption.
At our manufacturing facilities, we are introducing and switching to energy-efficient air conditioning systems and machinery. We also continuously review work efficiency and carry out improvement activities to promote energy conservation and enhance manufacturing capabilities.
At our Osaka Head Office and Tokyo Head Office, we have implemented an Electricity Consumption Monitoring System which monitors peak electricity demand and reinforces energy-saving measures when demand exceeds preset thresholds. Other efforts toward low-carbon facilities include the introduction of energy-efficient air conditioning and lighting systems. All vehicles owned by the Company (25 vehicles as of FY2022) are eco-friendly vehicles eligible for Japan’s eco-car tax incentive program.
When relocating the Nagoya Office in 2015, we selected a building with an environmentally friendly design ranked S under CASBEE*. The Tokyo Head Office, completed in March 2026, is also a new office building that delivers high environmental performance and energy efficiency.

* CASBEE: An acronym for "Comprehensive Assessment System for Built Environment Efficiency." This system was developed by the Japan Sustainable Building Consortium. It evaluates the overall environmental performance of buildings and assigns one of five ranks: S, A, B+, B, or C.

We are also focusing on businesses related to renewable energy, alternative fuels, low-carbon products, and other offerings that contribute to a decarbonized society.

• Environment：Environmental Business

Our main initiatives in FY2024 were as follows.

Introduction of renewable energy through the purchase of renewable energy certificates

Third-Party Assurance

Sustainable Finance Initiatives

• Sustainability at the Inabata Group: Sustainable Finance