D O WA G r o u p ' s A c ti o n o n C l i m a t e C h a n g e

TCFD Report

In February 2022, we decided to declare within and outside the DOWA Group our action on climatechange by officially sympathizing with the Recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). The disclosure of information in line with the framework of the TCFD
Recommendations should deepen an understanding about the DOWA Group’s activities among our
stakeholders as we join forces with them in encountering the big challenge of climate change.

May 23, 2022
DOWA HOLDINGS CO., LTD.

1

DOWA Group and Climate Change(1) About the DOWA GroupThe DOWA Group has been committed to thedevelopment of materials and services helpful forsolving issues concerning resources and theenvironment, based on the technologies andexperience in mining and smelting it has accumulated
since its founding in 1884. In this way, the Group
contributes to the development of a sustainable society.

▶ The five businesses and our recycling-oriented business model

DOWA ECO-SYSTEM
CO., LTD.
●Waste Treatment●Soil Remediation●Recycling●Southeast Asia

DOWA METRALS& MINING
CO., LTD.
●Precious Metals andCopper Smelting●Platinum Group Metals
Smelting●Zinc Smelting●Resource Development
and Raw Material
Procurement

DOWA ELECTRONICS
MATERIALS
CO., LTD.
●Semiconductors●Electronic Materials●Advanced Fine
Materials

DOWA METRALTECH
CO., LTD.
●Copper Rolled
Products●Electroplating●Metal-Ceramics
Substrates

DOWA THERMOTECH
CO., LTD.
●Heat Treatment
Processing●Industrial Furnaces⚫ Recycling-oriented business model witha focus on metals
The DOWA Group operates an original recyclingoriented business model combining five different
businesses ranging from metal production to the
manufacturing of high value-added products, waste
treatment and metal recycling.
For the Environmental Management & Recycling
Business, we detoxify waste, sort and recover metals
from used products and utilize them as materials for
smelting. For the Nonferrous Metals Business, we
extract useful metals from many different materials forrecycling in addition to ores which are natural
resources. These types of metal undergo highpurification, plate processing, surface treatment andmany other methods of processing performed by theElectronic Materials Business, Metal Processing
Business and Heat Treatment Business, to obtain theadded value of functionality before being incorporated
into final products such as automobiles and electronic
devices. We achieve a resource recycling network inwhich the products purchased by consumers frommanufacturers are subsequently treated as usedproducts and the metals go back to the Environmental
Management & Recycling Business for recovery.

2 DOWA Group TCFD Report

The functions of the mining, recycling, and smelting complex

Development and manufacturing of high value-added

enable efficient metal recovery.

products

We have combined the waste management of our Environmental
Management & Recycling Business with the highly efficient metal
recovery technology of our Nonferrous Metals Business to form asmelting and recycling complex. Using a variety of our processes,
we recycle many types of metals from materials that are no longer
of use to society. Also, non-recyclable materials are incinerated,
sent to a landfill or otherwise treated in an equivalent manner tocurb their environmental impact.

Electronic Materials Business, Metal Processing Business and Heat
Treatment Business develop and manufacture high added-valuematerials mainly made from metals. We offer many large-shareproducts and services in the markets with rapid technologicalinnovation, such as automobiles, smartphones and solar panels, byleveraging our abundant knowledge and technologies in areas suchas semiconductors, electrical conducting materials, copper rolled
products and surface heat treatment.

(2) Approach to sustainability
Based on our Mission: The reason for existence of the
DOWA Group, we engage in business activities to help
make the society sustainable. We also set the Vision
The vision of the DOWA Group (our goal in 2030) basedon a medium- and long-term perspective, with the aimof continuing to meet society's expectations forbusiness enterprises.
In February 2022, our CSR policy was reviewed andrenamed the Sustainability Basic Policy and was
defined as a priority ESG policy with the aim ofreinforcing our existing sustainability activities.
⚫ About climate change
Climate change is a serious social issue and must be
dealt with from a global perspective. Moves towardrealizing a carbon-free society are expanding. To date,
the DOWA Group has been committed to reducing
greenhouse gas (GHG) emissions and has pursued thecreation of new business opportunities by increasing
products and services to help reduce GHG emissions.
Given the immediate issue of an increase in global
warming, however, we must step up our current
initiatives. Based on this understanding, in August 2021,
the DOWA Group’s Climate Change Policy and LongTerm Targets were defined as shown at right. Under the
Policy, the DOWA Group advances initiatives for adecarbonized society, aiming to achieve carbon
neutrality by 2050.

MissionThe reason for existence of the DOWA Group

Contribute to creating an affluent, recycling-oriented society through our business activities worldwide.

VisionThe vision of the DOWA Group (our goal in 2030)

Contribute continuously to building a sustainable future through our core business, the promotion of resource recycling,
and the provision of excellent materials and technologies.

Sustainability Basic Policy
DOWA Group will strike a balance between enhancement of corporate value and contribution to building a sustainable
society by continuing to promote business activities that help to solve social issues in an effort to realize our corporate
mission and vision.
▶ DOWA Group's Climate Change Policy and Long-Term Targets

Climate Change Policy
DOWA Group positions the measures against climate change as an important management issue and will work to reducegreenhouse gas emissions.
It will also contribute to the realization of a carbon-free society through various businesses, leading to continued growth of thegroup.

Long-Term Targets
DOWA Group will aim to achieve carbon neutral status by 2050.

DOWA Group TCFD Report3(3) Social issues the DOWA Group should contribute to solving (material issues)Society faces many issues. Stakeholders strongly expect
a business enterprise to take appropriate action onthese issues. The disclosure of information about
initiatives on such issues is increasingly taking onimportance, as represented by facts such as thepenetration of SDGs and expansion of ESG investment.
Considering changes in the business environment, theDOWA Group chose nine themes in 2022, as shown atright. Representing the issues that we should help tosolve, the themes were approved by the Board of
Directors before being defined as the DOWA Group’smaterial issues. This positioned our action toward
climate change once again as one of our importantmanagement issues.

▶ DOWA Group's material issues and Midterm plan

⚫ Social issues that the DOWA Group should contributeto solving (DOWA Group's material issues)

Creating a resource-recycling societyE

Enhancing products and services which reducesocial and environmental risks(FY2022 to FY2024)

Evolution of recycling-oriented
business model(Seizing opportunities)

Response to climate change (p. 5 and 10)⚫ Choosing material issues
The DOWA Group chose social issues that the DOWA
Group should contribute to solving based on two
different perspectives: the expectations and demandsof stakeholders and the importance for the DOWA
Group. They were then positioned as management
issues that are referred to as the DOWA Group's
material issues. We advance initiatives for solving them.

Midterm Plan 2024

Integrated management
Environmental protection
Ensuring occupational safety and healthS

Strengthening sustainability
management

Increasing organizational power (including promotion ofdiversity, job security, and human resources development)(Risk mitigation)

Promoting risk management
G

Strengthening corporate governanceDriving DX (data utilization)

Our basic strategy under the Midterm Plan 2024 is towork on initiatives to acquire opportunities by
evolving the recycling-oriented business model andreduce risks by strengthening sustainability
management, so as to solve the DOWA Group's
material issues.

DOWA Group Midterm Plan 2024: https://ir.dowa.co.jp/ja/ir/strategy.html

4 DOWA Group TCFD Report(4) Status of GHG emissions andinitiatives
The DOWA Group domestically emitted nearly 1.627
million t-CO2 GHG in FY2020. The figure has decreased
2-5 ％ YOY for the past five consecutive years. By
source of emissions, waste is the most common andaccounts for nearly 43％, followed by electric power at
38% and fossil fuel at 19%. Emissions from the DOWA
Group characteristically include a large volume of CO2
generated from waste incineration and metal smelting
processes. Much of the waste accepted by the DOWA
Group consists of acid, alkaline and other hazardous
and/or substances that are difficult to recycle.
Incinerating such waste helps to ensure public healthand safety and preserve water, soil and other parts ofthe environment. Using the heat generated from thisincineration to destroy CFC for use in household
appliances and vehicles and to generate power
contributes to curbing global warming. The DOWA
Group will seek to achieve compatibility between
measures against climate change and environmental
conservation by continuing initiatives for energy savingand streamlining heat utilization and by pursuing R&D
of new sources of energy and waste treatment
methods.
At the same time, the DOWA Group offers many
products and services to contribute to carbon
reduction through a supply chain, such as silver powderwhich is indispensable for renewable energy and metalmaterials for fuel cells and EVs. We will seek to expand
the supply of these products and services, develop
technologies and create new businesses in a continued
effort to address climate change issues.

▶ Status of GHG emissions▶ Our efforts
Energy related

Products and services

Hydroelectric power generation

Waste heat power generation

Silver powder for solar panels

Fluorocarbon treatment

Headquartered in Akita prefecture,
Kosaka Smelting & Refining started
operating the second hydraulic power
station in Japan in 1897 for use in minedevelopment. Subsequently, thecompany expanded its operations andcontinued to add and improveequipment. Today, it has six hydraulicpower stations in Akita. Currently, theequipment of these stations are being
repaired and replaced in an effort tomaintainandincrease
power
generation. In FY2020, the hydraulicpower stations generated nearly 48
GWh of electric power and serve asimportant power sources to meet ourenergy needs.

The DOWA Group generates powerfrom waste heat at six offices,
including five in Japan and one
overseas.
Waste
heat
power
generation involves the use of heatgenerated from sources such as waste
incineration and waste heat from afurnace. High-temperature, highpressure vapor is used to turn theturbine and generate power. Wastebased power generation utilizes
energy from waste and does notnecessitate fossil fuel. This leads toefficient utilization of energy. In
FY2020, we generated nearly 80 GWh
of electric power from waste heat andcontributed to a reduction in fossil fuelconsumption.

Silver has low electric resistance and isalso resistant to oxidizing. For thisreason, it excels in use for electrodes.
Our silver powder has established theworld’s top share in electrodematerials for monocrystal andpolycrystal, silicon-type solar batteries
which account for a large part ofphotovoltaic power generation. Finesilver powder is used for electrodes.
For different applications, we makesilver powder available in manydifferent shapes and consistently
supply high-quality silver powder.

CFC,
HCFC,
HFC
and
other
fluorocarbons are used in refrigerantsforfreezerrefrigerators,
airconditioners and other appliances. The
fluorocarbons must be treatedproperly as they exert greenhouseeffects that are hundreds to more thanten thousand times greater than thoseof CO2. Our three local offices,
including those in Akita, Chiba andOkayama, use heat from waste
incineration to thermally decompose
fluorocarbons. Using waste heatremoves the need to invest in newenergy. It helps to reduce GHG
emissions and curb global warming.

DOWA Group TCFD Report52. Information disclosure based on the TCFD recommendations
In May 2021, the DOWA Group set up the Climate
Change Committee and has pushed forward withclimate change initiatives throughout the Group,
repeating discussion of our actions in line with the
TCFD recommendations. To further accelerate climatechange initiatives, in February 2022, we expressed our
support for the TCFD recommendations through a
resolution by the Board of Directors.

(1) Governance
The DOWA Group has established a structure for the
Board of Directors to properly supervise importantsustainability-related issues such as climate change.

General Meeting of Shareholders

Board of Directors
Supervise

ReportExecute
DOWA Holdings
business
Corporate Strategy Committee

President

Executive Officers’ Committee⚫ Sustainability promotion structure
The DOWA Group regards climate change as animportant issue for its business management and theGroup’s Sustainability Committee deliberates on the
management of risks and opportunities relating toclimate change issues. Important matters concerning
managerial risks and opportunities are brought andreported to the Board of Directors. The Sustainability
Committee is chaired by president and, in principle,
meets biannually.
Upon receiving an agenda or report by the Committee,
the Board of Directors shares issues involving climatechange-related risks and opportunities and holds
discussions for goal management and problem solving.

Sustainability Committee
HD's divisions

Audit Department

Instruction/Supervision

ReportSustainability Subcommittee
Instruction /Supervision

ReportOperating companies and operating subsidiaries⚫ [Sustainability Committee] Chairperson: President and Representative Director Meeting: Biannual
The Committee deliberates on important policies and measures related to sustainability, such as climate change initiatives, thereinforcement of organizational strength and DX and the progress of such policies and measures.
⚫ [Sustainability Subcommittee] Chairperson: Officer in charge of corporate strategy Meeting:Monthly
With the aim of promoting sustainability throughout the Group, the Sustainability Subcommittee was set up under the aegis of
the Sustainability Committee and, in cooperation with the relevant departments, discusses nine material issues, including climatechange.

6 DOWA Group TCFD Report(2) Strategies
In FY2021, the Climate Change Committee performed
a scenario analysis and sorted business risks andopportunities resulting from climate change.
⚫ About scenario analysis
Since predicting the future entails considerable
uncertainty and is hard to analyze, we referred tomultiple scenarios for discussion. The public opinion
that any action based on the under 2 degrees C
scenario is insufficient is becoming internationally
entrenched and this may become a benchmark for the
pursuit of achieving carbon neutrality by 2050, a target
set by DOWA. For this reason, our analysis was
performed in view of the 1.5 degree C scenario.
Meanwhile, actions toward the 1.5 degree C scenario
will boost awareness about the risks of transition but
dilute awareness about physical risks. For this reason,
we assumed a business environment under the 4
degrees C scenario which is closer to what would
happen if current economic activities continued.
We also identified, analyzed and evaluated risks andopportunities relating to climate change on short-term(up to 2025), mid-term (up to 2030) and long-term (upto 2050) bases.

▶ We referred to the following scenarios:

1.5℃

2.0℃

4.0℃

Key references

Outline

Scenario

An international opinion toward achieving carbon neutrality by 2050
is formed.
Target on which a minimum international agreement (the Paris
Agreement) has been obtained
Target calculated on the basis of immediate GHG reduction targets
in different countries
Priority is given to economic growth and the temperature rise and its
impacts keep worsening.

IPCC

NZE

SSP1-1.9

SDS

SSP1-2.0

APS

SSP2-4.5

STEPS

SSP2-4.5
SSP3-7.0*A group of WEO (World Energy Outlook) 2021 scenarios of IEA (International Energy Agency)
STEPS (Stated Policies Scenario), APS (Announced Pledges Scenario), SDS (Sustainable Development Scenario), NZE (Net Zero Emissions by
2050 Scenario)

4℃ scenario⚫ Scope of analysis
The scenario analysis in the first fiscal year, FY2021,
focused on our domestic operations which account for
more than 95% of the total GHG emissions of the
DOWA Group.

IEA*

1.5℃ scenario

Left figure IPCC Working Group I Contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change : Summary for
Policymakers (Sixth Assessment Report) P.22
https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_SPM_final.pdf
Right figure IEA World Energy Outlook 2021 Scenario trajectories and temperature outcomes
https://www.iea.org/reports/world-energy-outlook-2021/scenario-trajectories-and-temperature-outcomes

DOWA Group TCFD Report7

Scenario analysis and evaluation of risks and opportunities
Scenario

1.5

Reference
Scenario[IEA] NZE,
1.5 degree
C specialreport℃[IPCC]
SSP１-1.9

Outline

4℃[IPCC]
SSP2-4.5
SSP3-7.0

Our understanding⚫ To date, many countries haveassumed the under 2 degrees C
scenario in formulating their GHG
reduction targets. But they are notenough to check global warming.

➔⚫ Ensuring an average temperature rise
below 1.5 degree C in 2100 urgently
requires policies for making societysustainable through measures suchas encouraging changes in market
practices and consumers’ taste, andtightening regulations for reducing
GHG emissions.

➔

During the process of transitioning into a
decarbonized society, we will simultaneously
improve both the tangible (equipment investment)
and intangible (process improvement) aspects ofenergy saving in an effort to reduce GHG emissions.

➔Public and private technological research will
progress and encompass the spread of renewableenergy, acceleration of use of non-fossil energy andutilization and recovery of CO₂ among others.

➔

Globally, developed nations are expected tosupport emerging nations in achieving adecarbonized society. Besides technologicalsupport, we also assume contributions toenvironmental maintenance overseas, among otherinitiatives.

⚫ Technological innovation, the shift toclean energy and other measures forthe mitigation of and adaptation toclimate change will necessitate
greater public-private cooperationand communication with thefinancial markets.
⚫ Developed nations

have anotherimportant commitment of helping
emerging nations transition into a
decarbonized society.

⚫ Tighter regulations, changes in themarket, technological innovation andother actions for the transition to a
decarbonized society will beaccompanied by a minor financial
impact. However, global warming will
progress and the likelihood of theoccurrence of physical risks will
increase.
[IEA]
STEP

Scope of application: The DOWA Group’s domestic operations⚫ Natural
disasters
will
growincreasingly severe. With evergreater frequency, we will encounter
situations such as having no choice
but to discontinue our businessactivities due to torrential rain, heavy
rain or storms directly damaging ourfacilities and supply chain.
⚫ Over the medium and long terms, arise in sea level and otherphenomena will make coastal
inundations more frequent.
⚫ Rising temperatures will lead tocatastrophes such as the prevalenceof heatstroke and the occurrence of
unprecedented contagious diseases.

8 DOWA Group TCFD Report➔

Based on the understanding that the introduction ofcarbon pricing is effective in reducing GHG
emissions, reflecting the costs for GHG emissions incorporate value helps to encourage efforts bybusiness operators.

While social changes represented by concepts
such as the green economy, circular economy andsharing economy lead to decrease in production,
consumption and waste disposal, new products andservices contributing to GHG reductions will
emerge.

➔With progress in electrification for decarbonization,
demand for non-ferrous metals will rise.

➔At the same time, a rapid change in the market candistort the demand and supply of resources andcreate instability in procurement (e.g. structuralchanges in the supply chain).

➔

The sophistication of information disclosure and theestablishment of related laws will advance, as canbe seen in the need to address requests from TCFD.
Business enterprises, products and services will beselected based on how they respond to theseissues.

➔
➔
➔

➔
➔
➔

The facilities impacted by climate change will need
to be more resilient and the number of subscribers
to casualty insurances will increase.
We will decentralize our business locations andintroduce other anti-disaster measures that takethe entire value chain into account.
A temperature rise entails a deterioration in labor
conditions. This, combined with a social context
characterized by worsening labor productivity and adecrease in the working population, will make it
more difficult to secure human resources.
New business opportunities will be created from,forexample,disaster
response(e.g.
supplementation of lifeline and BCP).
The expansion of natural disasters poses the
problem of having to handle ever-increasing
disaster waste.
Decarbonization and other actions for sustainability
should be implemented on an individual basis. But
taking action against climate change and improving
our information disclosure will help us gain
recognition among stakeholders as a company withgood risk management.

(the green columns represent the time of occurrence and degree of an impact on short, mid and long term bases)

Risks, opportunities and prediction of business environment in the future
1.Strengthened regulations and systems[Risks]Carbonpricing

Carbontaxes andemissions tradingFull-scale introduction of carbon taxes and emissions trading would
significantly add to the direct and indirect financial impact.
Institutional arrangements and other related procedures are
expected to take considerable time and their impact will be manifest
from around the mid-2020s. From 2031, moves toward achievingcarbon neutrality by 2050 will intensify and the influence of carbon
pricing will expand even more.

2. Energy-related[Risks andopportuni
ties]
Efficientuse ofenergy[Risks andopportuni
ties]
EnergyconversionReinforcem
ent ofenergysaving andintroduction of highefficiency
equipment

As we seek to achieve the government target for 2030 GHG
emissions reduction, energy saving targets will be raised. A review ofboth the tangible and intangible aspects of efforts for GHG emissions
reduction will be necessary and new capital investment and otherfinancial burdens will accrue. Meanwhile, the development ofenergy saving-related products and services expands our business
opportunities.

Nonfossil fuelenergyAmid the move toward decarbonization, a rise in prices of electric power
which involves a low CO₂ emission coefficient is expected. This leads to anincrease in costs. Moreover, the needs for products and services using fossil
fuel energy should decrease.

Electricit
y fromrenewable energy
sources

Since the introduction of renewable energy necessitatestechnological advances and infrastructure development, we expect
the spread of renewable energy to get underway in the latter half ofthe 2020s. Until that time, the needs for electricity from renewableenergy will increase and so will procurement prices. Meanwhile, themarkets of metallic materials and battery materials for renewableenergy will expand.

3. Stakeholder related[Risks andopportuni
ties]
Initiatives
fordecarboni
zationShareholders
and financial
institutions

Establishment of the law on information disclosure and facilitationof ESG investments and loans will change the costs for funding
depending on actions toward decarbonization.

Customers

Moves towards decarbonization intensifies and also encompasses
the supply chain. Our response to this trend will influencetransaction conditions. We will also shoulder more expenses for thepurchase of credits, etc. for decarbonization.

4. Disaster related

AcuteTorrenti
al rains

Torrential rains, river floods and similar disasters increase thefrequency of damage to factory facilities.

Temperature
rise

A rise in temperature changes materials and causes health problems
such as heatstroke and contagious diseases.

Sea
level
rise

A rise in sea level makes our seaside sites susceptible to high waves
and tsunamis.

Chronic

Short term

Medium termLong term

～2025

～2030

～2050

Noteworthy market (Automobile)⚫ Value chain of automobiles and ourbusiness

We identified an extensive array of possible impacts of climate change on the DOWA Group and focused on the automotive market,
which would be particularly susceptible. From the perspective of a value chain, we analyzed changes in the automotive market
resulting from the growing shift to EVs and identified the opportunities and risks for our business operations as shown below.

explanatory notes ：Our business

opportunities risks

DOWA Group TCFD Report9Refinement of risk and opportunity
analysis and related measures⚫ Midterm Plan 2024
Having started in FY2022, the Midterm Plan 2024 is
aimed at enhancing our economic and social value
simultaneously. To enhance our social value, we create
a midterm plan for each of the social issues the DOWA
Group should contribute to solving (p.4) and advanceour sustainability initiatives in pursuit of our Vision The
vision of the DOWA Group (our goal in 2030). For
climate change, we have five key measures inaccordance with the Climate Change Policy (p.3)
published in August 2021. In terms of business
operations, we are committed to climate change
initiatives that leverage the characteristics of ourbusiness, such as building a sustainable business modelto achieve compatibility between resource recycling
and decarbonization, with consideration of analysis of
TCFD-related risks and opportunities.
⚫ Industry-academia collaboration: Cocreation Research Center
In April 2022, we set up the DOWA x Tohoku University
Co-creation Research Center with the aim of bolstering
our research activities with Tohoku University. The
exceptional technological seeds at Tohoku University
and the technology possessed by DOWA will be further
integrated. The goal of this joint project is to create
cutting edge technology that will contribute towards
offering resource recycling and excellent materials andtechnology, while also responding to sustainability
issues including carbon neutrality.

▶ Midterm Plan 2024Five key measures against climate change
Key measures

Initiatives

Creation of businesses inaccordance with the market
environment

Reinforce global resource recycling
Build a sustainable business model to achieve compatibility between resource recycling anddecarbonization
Offer products and services that suit the market needs and contribute to decarbonization

Company-wide activities against
climate change

Continue our company-wide efforts to curb climate change and start a working group for climate change
initiatives
In-house workshops and provision of information

Reinforcement of our monitoring
systemStreamline the calculation of greenhouse gas (GHG) emissions
Share our GHG emissions within the company with the use of a system and provide feedback
Build a mechanism for the calculation of a supply chain’s GHG emissions (Scope 3)

Review of business continuity plans(BCPs)

Reinforce our preparedness against weather disaster, a physical risk, and include measures against
weather disasters in our BCP
Consider and discuss measures against weather disasters affecting the supply chain

Improvement in information
disclosure

Encourage information disclosure based on the framework of the TCFD recommendations
Regularly share information by using the integrated report and our website▶ Example of our approach to solving climate change issues
Center 's research▶ Themes for Co-creation Research
In the first phase, from FY2022 to FY2024, we
will explore the following themes and aim atlaunching a collaborative research project.

(1) Carbon neutral technology(2) Innovative technology fusing AI,
MI and IoT(3) New materials for automobiles(EV), information communication,
environment/energy and medical/
healthcare

10 DOWA Group TCFD Report(3) Risk management▶ Risk management system concerning sustainability issues
Supervision◆

The DOWA HOLDINGS Board of Directors supervises
company-wide, sustainability-related policies and goals,
including measures against climate change and theorganizations that manage and implement such policies andgoals.

◆

Being on the executives’ side of DOWA HOLDINGS, theSustainability Committee evaluates the risks andopportunities that would significantly affect the DOWA
Group’s business strategies and deliberates on action policies
and goals. Particularly important risks and opportunities arereported to the DOWA HOLDINGS' Board of Directors.

◆

The Sustainability Subcommittee regards climate change as
an important issue and monitors the DOWA Group's action
against climate change. Across the DOWA Group, we identify
and evaluate risks and opportunities associated with climatechange and discuss and make action policies, goals andmeasures. They are reported to the Sustainability Committee
along with important risks and opportunities.

◆

The operating companies and operating subsidiaries reflectin their business plans the policies and goals discussed andapproved by the Sustainability Committee or the
Sustainability Subcommittee, and take action accordingly.
Progress of the measures and their problems are reported to
the Sustainability Subcommittee as we strive to continue
improvements.

Board of Directors
Supervise
Reporting

Sustainability Committee
Management

The DOWA Group endeavors to enhance its risk
management for the purpose of preventing crises that
could have a material impact on business management
and minimizing such crises if they occur.
Involving the entire DOWA Group, the Sustainability
Subcommittee evaluates risks and other factors
concerning sustainability-related matters, such as therisk of climate change that would significantly affectour business. The Sustainability Committee deliberates
on matters that are more important in terms ofbusiness risks.
The climate change-related risks and opportunities
evaluated and identified would be reported to the
DOWA HOLDINGS Board of Directors if they are
deemed by the Sustainability Committee as important.
The DOWA HOLDINGS Board of Directors supervises
company-wide, sustainability-related policies and goals,
including measures against climate change and theorganizations that manage and implement suchpolicies and goals.

Supervision,
instruction
Reporting

Sustainability Subcommittee
Supervision,
instruction
ReportingExecution

Operating companies andoperating subsidiaries

DOWA Group TCFD Report11(4) Metrics and targets
The DOWA Group seeks to achieve carbon neutrality by
2050. As a step toward that, we have intermediatetargets to be achieved by FY2030. The intermediatetargets are set as shown at right and our efforts
proceed accordingly.
DOWA HOLDINGS will continue monitoring the statusof GHG emissions and reductions, and may review
these targets if it is considered necessary after taking
into account various factors, such as socioeconomic
circumstances and changes in Japanese andinternational political policies towards the realizationof a carbon-free society.
To achieve its medium- and long-term targets, theDOWA Group will continue with efforts to reduce GHG
emissions through initiatives such as process
improvements to conserve more energy, fuelconversion and the utilization of renewable energy. To
achieve carbon neutrality by 2050, we will keep
working to create medium- and long-term roadmaps.
Information on our efforts against climate change will
be regularly disclosed on the Integrated Report and our
website.

About the DOWA Group's
activities

sustainability-related

・Integrated Reporthttps://ir.dowa.co.jp/en/ir/library/annual.html
・Sustainability-related information

https://www.dowa.co.jp/en/csr/index.html【Long-Term Targets】
DOWA Group will aim to achieve carbon neutral status by 2050.
【FY2030 GHG Emissions Reduction Targets】
The DOWA Group aims to reduce its Scope 1 and 2 GHG emissions※1 in FY2030 compared with the FY2013 levels as a baseline asfollows:
Note that these targets are set in accordance with the targets for each category in the Japanese Government’s Plan for Global
Warming Countermeasures※2, which was formulated to reduce GHG emissions by 46% from FY2013 levels by FY2030.

Energy Sources

Non-Energy
Sources

CO2 from electric power/fossil fuels usedin manufacturing bases

At least 38％ reduction

CO2 from electric power/fossil fuels
used in offices and other locations

At least 51％ reduction

CO2 from waste(from the FY2013 level)(from the FY2013 level)

At least 15％ reduction(from the FY2013 level)

These targets include offsetting through the utilization of carbon credits and other means.
※1 Scopes 1, 2 and 3 are the concepts from the corporate GHG emissions accounting and reporting standard stipulated in the GHG Protocol.
Each scope is defined as follows:・Scope 1: Direct emissions from the reporting company itself
・Scope 2: Indirect emissions associated with the use of electric power, heat, and other energy supplied by other companies
・Scope 3: Indirect emissions other than Scopes 1 and 2 (emissions from other companies associated with the activities of the reporting
company)※2 Japanese government's comprehensive plan based on the Act on Promotion of Global Warming Countermeasures (Cabinet decision on
October 22, 2021)⚫ Scope 3 *1
DOWA HOLDINGS will gather and identify facts about GHG emissions from our supply chain before considering their incorporation
into the targets.
⚫ GHG emissions reduction targets at our overseas business locations
For GHG emissions from our overseas business locations, we will stay updated on facts and conduct monitoring in the countries
where they operate. In this way, we will repeat discussion for setting targets.

12 DOWA Group TCFD ReportContact the following if you have feedback or inquiries about this report.

DOWA HOLDINGS CO., LTD.
Corporate Strategy Dept. Sustainability Sec.
22F, Akihabara UDX, 4-14-1, Sotokanda, Chiyoda-ku, Tokyo, 101-0021 Japan▶ Telephone+81-3-6847-1106▶ Inquiry form
https://ir.dowa.co.jp/ja/ir/contact1.html▶ Website
https://www.dowa-csr.jp/en/

DOWA Group TCFD Report13