May 27th, 2022
Osaki Electric Co., Ltd.
Information Disclosure based on TCFD Recommendations
The OSAKI Group recognizes that responding to climate change is one of its most importantmanagement issues that not only threatens corporate sustainability, but also expands profit
opportunities.
Accordingly, in November 2021, we announced our support for the Task Force on Climaterelated Financial Disclosures (TCFD) created by the Financial Stability Board (FSB) *1 andjoined TCFD Consortium*2.
Furthermore, we will disclose information on "Governance," "Strategy," "Risk Management
System," and "Indicators and Targets" in line with the recommendations announced by TCFD
based on a medium-to long-term perspective that envisages 2030.
*1 TCFD refers to the Climate-Related Financial Disclosure Task Force (Task Force on
Climate-related Financial Disclosures) established by the Financial Stability Board (FSB) at
the request of the G20.
It is recommended that companies and organizations disclose information related to climatechange-related risks and opportunities.
TCFD website: https://www.fsb-tcfd.org/*2 TCFD Consortium is established as a forum for companies and institutions that endorse
TCFD recommendations to discuss effective information disclosure and efforts to link
disclosed information to appropriate investment decisions by financial institutions, etc.
TCFD Consortium Website: https://tcfd-consortium.jp/

1. Governance
The Sustainability Promotion Committee, chaired by the President and Chief Executive
Officer, deliberates on basic policies, important issues, risks, and opportunities related tosustainability, including climate change, and measures to address them.
The content of the deliberations is reported to the Board of Directors, and the Board ofDirectors oversees and supervises sustainability management.

1[Organizational Structure for Climate Change Promotion]
Our sustainability promotion system, including climate change, is as follows.
Sustainability Promotion System

Board of Directors

Sustainability Promotion Committee
Chairman: President and Chief Executive Officer
Committee Members: Executive Vice President andeach Division Head appointed by the chairman

DivisionsGroup Companies

2. Strategya) Scenario analysis
OSAKI conducted scenario analysis on how climate change would affect our business using
scenarios published by the International Energy Agency (IEA).
Specifically, we have summarized anticipated climate change-related risks and opportunities
at 2030, applying the 2℃ and 4℃ scenarios. In this analysis, the 2℃ scenario suggests
transition risks to maximize, while the 4℃ scenario suggests physical risks to have larger
impact.
Transition Risks: Risks arising from the transition to a low-carbon economy, such as theintroduction of a carbon tax and the expansion of the emissions trading market
Physical risks: Risks posed by intensified natural disasters such as flooding and drought

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[Society transitioning to low carbon/decarbonization (2℃ scenario)]
It is a scenario in which strict environmental regulations were introduced to achieve carbon
neutrality, resulting in an increase in costs and an anticipated expansion of business
opportunities. Physical risks are relatively low and transition risks are high.
[Climate change measures are not implemented and physical risks are actualized (4 ℃scenario)]
It is a scenario in which no strict environmental regulations or measures are taken. It assumes
multiple natural disasters to occur due to an increase in greenhouse gas emissions.
Transition risks are low and physical risks are high.
b) Important risks and opportunities, and countermeasures
The table below summarizes the significant risks and opportunities that we anticipate will besignificantly impacted by climate change, as well as our responses to those risks, in an effort
to reduce risks and create opportunities.
Risks

Transition Risks ( 2°C scenario)

Type

Climate-related risk
Increased costs related to restraint ofregulations related to renewable energy
and energy saving such as carbon tax,
Policy and emissions tradings and GHG emission
Legalcontrol

Measures
Setting a GHG emission goal* to minimize the risk
listed in the left colum.
*OSAKI group will cut GHG emission by 46% in
FY2030 (compared to FY2013)

Financial institutions and investors avoid
investing if OSAKI does not disclose
climate-related information
Insufficient climate-related disclosure may
Reputation cause decreased orders from existing andDisclosure based on TCFD recommendations
Setting the Science Based Targets( 4°C scenario)

Physical Risks

new customers
Increased severity of extreme weatherAcuteevents may bring negative impact onProper exeution of BCP such as productmanufacturing and supply chain.

decentralization including outsourcing to minimize

Increased expenses related to disasterthe risk listed in the left colum

countermeasures and insurance.

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Opportunities
TypeClimate-related Opportunites

Measures

Restraint of regulations related torenewable energy and energy saving suchas carbon tax, emissions tradings, and GHG( 2°C scenario)

Transition Risks

emission control may lead to:1) High demand for smart meters andPolicy andLegalhead-end systems to measure powerusage, in response to restraining or
expanding applicable regions of emissions
tradings

1) Development and marketing new value-added
smart meters and head-end systems
2) Development and marketing decarobonization
solutions transform buildings and factories into ecofriendly facilities

2) High demand for OSAKI's
decarbonization solution with sronger
social and economical needs in energy

Physical Risks( 4°C scenario)

savingIncreased severity of extreme weather
events lead to social needs for stronger
AccuteBCPs, leading to high demand for smart
meters, which contributes to resilient

Development and marketing new value-added smart
meters and head-end systemspower infrastractures.

c) Business impact evaluation
Based on these analyses, we will reduce the financial impact of climate change on our Group's
long-term growth by taking specific measures in each of the risks and opportunities.
We are currently assessing the possible impact on earnings in 2030 based on information
obtained through scenario analysis.

(3)Risk Management System
In order to ensure the sustainable and stable development of our business, our group identifies,
analyses and evaluates risks, and takes necessary measures to reduce identified risks.
We regard climate change as an important risk and are promoting specific measures based on
the Osaki Electric Group Basic Sustainability Policy.

4(4)Indicators and Targets
OSAKI aims to reduce greenhouse gas emissions related to Scope 1 and 2 by 46% in fiscal
2030 compared to fiscal 2013. At the same time, we aim to achieve carbon neutrality by 2050
based on “ Green Growth Strategy Through Achieving Carbon Neutrality in 2050”
formulated by the Japanese Government, among other measures.
With regard to Scope3, we are working to refine our aggregation in order to set targets, andaim to acquire SBTs (Science Based Targets).
Notes
Scope1: CO2 emissions from fuel-use by businesses themselves
Scope2: CO2 emissions from the use of electricity supplied by other companies
Scope3: Indirect emissions other than Scope1 and Scope2 (emissions by other companies
related to the business activities of the company)

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