Initiatives for the Achievement ofCarbon Neutral Society- Initiatives for FY2030 and Roadmap for the Achievement of Carbon Neutrality by 2050 -DOWA HOLDINGS CO., LTD.
May 25, 2023

Contents
1. The Group’s policy for carbon neutrality.................................................................................... 1
2. Two intermediate targets for FY2030........................................................................................ 1(1) New contribution targets by products and services ................................................................ 2(2) DOWA Group GHG emissions reduction targets ................................................................... 4
3. Approach to achieving targets ................................................................................................. 5
4. Roadmap for the achievement of carbon neutrality in 2050......................................................... 6

1. The Group’s policy for carbon neutrality
Climate change is a serious social challenge facing all industries and people around the world. In light of the current situationof global warming, the DOWA Group established, in August 2021, its Climate Change Policy to further accelerate its current
efforts, and announced its goal of achieving carbon neutrality by 2050.

● Climate Change Policy
DOWA Group positions the measures against climate change as an important management issue and will
work to reduce greenhouse gas emissions. It will also contribute to the realization of a carbon-free society
through various businesses, leading to continued growth of the group.
Climate Change Policy: https://www.dowa-csr.jp/en/about/climate-change

Under the Midterm Plan 2024, which started in FY2022, we have identified addressing climate change as one of the key
issues (materiality) and have established a company-wide promotion system to advance activities aimed at achieving carbonneutrality by 2050.
In February 2022, we reaffirmed our stance on climate change both within and outside the Group by endorsing the TCFD
recommendations. To deepen our stakeholders’ understanding of our Group’s activities and to work together to face themajor common challenge of climate change issues, we published the TCFD Report and disclosed information in line withthe framework of the TCFD recommendations in May 2022.
In this report, we present the status of our Group’s climate change activities and our new goals, taking into account thechanges in the situation surrounding climate change since the issuance of the TCFD report.
TCFD Report: https://www.dowa-csr.jp/content/files/DOWA_TCFD_report_2205_en.pdf

2. Two intermediate targets for FY2030
The DOWA Group has been committed to the development of materials, products and services helpful for solving issues
concerning resources and the environment, based on the technologies and experience in mining and smelting it has
accumulated since its founding in 1884. In this way, the Group has contributed to the development of a sustainable society.
Non-ferrous metals used in EVs, renewable energy facilities, and other applications are indispensable materials for adecarbonized society. The Group is responsible for the stable supply of these metals. In addition, as an important social
infrastructure that contributes to environmental preservation and public health, its waste treatment business is committed toensuring the fulfillment of its responsibilities and to reducing its GHG emissions.
Consequently, the Group’s response to climate change is driven by both the reduction of its own GHG emissions and thecreation and expansion of products and services that contribute to society’s efforts to tackle climate change. To link these
efforts in realizing a carbon neutral society in 2050 to the sustainable growth of the Group, we have set new contribution
targets through products and services, in addition to the Group’s intermediate GHG emission reduction targets for FY2030.

Contribution
targets byproducts andservices

Initiatives to Achieve
Carbon Neutral Societyin 2050

Sustainable growth ofthe DOWA Group

1DOWA
Group GHG
emissions
reduction
targets

(1) New contribution targets by products and services
The DOWA Group provides a wide range of products and services that contribute to society’s efforts to tackle climatechange. We offer many products and services to contribute to reduction in GHG emissions through a supply chain,such as silver powder used for solar panels which is indispensable for renewable energy and metal materials for fuelcells and EVs and the recycling of lithium-ion batteries and solar panels. We also provide society with non-ferrous
metals, which are indispensable for the future decarbonized society, through circular business models that incorporate
sustainable resource circulation processes, including recycling. We have named DOWA Group’s unique contribution
DOWA Green Action (DGA) and have set new targets for FY2030 to promote our efforts.

Business areas covered by DOWA Green Action
Non-ferrous metals are essential materials for decarbonization technologies. We aim to achieve carbon neutrality
through the transition to a circular economy by reducing our GHG emissions and providing society with a lower carbon
resource recycling process. We set two target areas for DGA: “Provision of materials contributing to the realization ofa decarbonized society” and “Products and services that help customers and society cope with climate change”. As
such, we identified applicable products and services.

DOWA Green Action Targets for FY2030
By striving to expand the supply of DGA products and services, develop technologies, and create new businesses, wewill contribute to reducing GHG emissions throughout society and work toward the realization of a carbon neutralsociety. We set a sales target of DGA products and services as an indicator of these growth targets.

FY2022 Sales result

FY2030 Sales target

Approx. 360 billion yen

1.6 times higher (compared to FY2022)* Calculated based on exchange rates, metal prices, etc. in the Midterm Plan 2024.

Going forward, we will annually aggregate sales results of DGA products and services and manage progress. Toachieve the targets, we will steadily invest in growth in each of our businesses, as defined in the Midterm Plan 2024.
We will also utilize 20 billion yen in the ESG Investment Framework to conduct research and technological development
to expand new DGA products and services.
Although it is difficult to calculate the amount of contribution to the reductions in GHG emissions from the finishedproducts because many of our Group’s products are materials and components, we will make calculations to the extent
possible and continue to collect and verify information on quantifying the amount of contribution.

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Examples of DOWA Green Action Initiatives
Area ofContribution
Resource
recycling
Resource
recycling
Decarbonization

DOWA Green Action

Application/ EffectRecycling of newmetals

In addition to the conventional recycling of base, precious and other metals, weare newly working on the recycling of resources, such as ruthenium, iridium, andscandium. These metals are indispensable for energy saving and theimprovement of functionality in automobiles, information and communication
terminals, electronic devices, and other products for decarbonization.

Recycling of usedlithium-ion batteries

Lithium-ion batteries use rare metals, such as cobalt, nickel, and lithium, which
can generate heat or catch fire if damaged or deformed. By appropriately
processing used lithium-ion batteries, the number of which are increasing in linewith growing demand, in a safe manner and recovering scarce metal resources,
we provide the resources necessary for the widespread use of batteries andcontribute to decarbonization and resource recycling.

Decarbonization Fuel cell materials

Plated copper alloy forDecarbonization high-voltage terminals

for EV applications
Zero CO2 reactor“Z-TKM”
Decarbonization(Carburizing andquenching furnace)

It is a material for fuel cells (SOFC: solid oxide fuel cells), which generate
electricity by reacting hydrogen and oxygen, and contributes to the spread ofclean energy as a power source for homes and factories.
Plated copper alloy for high-voltage terminals for EV applications will contribute to
the spread and expansion of EVs by enabling rapid charging of EVs with their
excellent electrical conductivity and wear resistance.
The next-generation carburizing and quenching furnace “Z-TKM” minimizes gas
and CO2 emissions used in the heat treatment process of automotive parts andother products. In addition, the combined use of renewable energy and hydrogenand ammonia burners enables operations that emit almost no CO 2 in the heat
treatment process, thereby contributing to GHG emissions reduction in the supply
chain, including automobile production.

Contribution to GHG emission reduction through DOWA Group products and services—
Fluorocarbon treatment
CFC, HCFC, HFC and other fluorocarbons are used in refrigerants for freezer refrigerators and air-conditioners, etc..
The fluorocarbons must be treated properly as they exert greenhouse effects that are hundreds to more than 10,000times greater than those of CO2. We have cooperated with the Ministry of the Environment’s “FluorocarbonDestruction Model Project” and have contributed to the establishment of fluorocarbons-related legislation and thestrengthening of regulations by conducting demonstration experiments, etc. together with the national and localgovernments.
Currently, the Group’s contribution reduces GHG emissions by more than 1 million tons (CO 2 equivalent) per year,including fluorocarbons recovered and recycled from home appliances, etc. and those destroyed by thermal
decomposition. In the destruction process, we do not use new energy but use waste heat from incineration to performthermal decomposition, thereby reducing our GHG emissions and helping to prevent global warming.
GHG emissions reduction from our fluorocarbon treatment (CO2 equivalent)* CO2 equivalent emissions are calculated by multiplying the received amount of processed fluorocarbons by the GWP (global warming potential) value.

Currently, we are expanding our fluorocarbon treatment even in Thailand and other overseas countries. Also, in theJoint Crediting Mechanism supported by the Japanese government, we expect our contribution to reduce GHGemissions in excess of 10,000 tons per year (CO2 equivalent).

3(2) DOWA Group GHG emissions reduction targets
The DOWA Group aims to be carbon neutral by 2050, as well as set intermediate targets by FY2030 as a passing pointto reduce its Scope 1 and 2*1 GHG emissions (compared to the FY2013 levels) in Japan as shown in the following
table: 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, 46% from FY2013
levels, in FY2030. We will consider incorporating the Scope 3*1 GHG emissions into our targets after we have a better
understanding of the Scope 3’s actual situation.

CO2 from fossil fuels used in manufacturing sites
Scope 1 CO2 from fossil fuels used in offices, etc.

Scope 2*1*2At least 38% reduction (from the FY2013 level)
At least 51% reduction (from the FY2013 level)

CO2 from waste

At least 15% reduction (from the FY2013 level)

CO2 from electricity used at manufacturing sites

At least 38% reduction (from the FY2013 level)

CO2 from electricity used in offices, etc.

At least 51% reduction (from the FY2013 level)

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 by the Company
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 by other companies associated with the activities of theCompany)
Japanese government’s comprehensive plan based on the Act on Promotion of Global Warming Countermeasures (Cabinetdecision on October 22, 2021)

Initiatives to reduce GHG emissions
Based on the above reduction targets, the DOWA Group has set an emissions target of 1,200,000 t-CO2 for FY2030.
We will continue to monitor changes in social trends, technological innovation, and other factors, and work towardfurther reductions from a medium- to long-term perspective.

Energy conservation, introduction of high-efficiency equipment, etc.
Expansion of in-house introduction of renewable energy sources and switching to renewable electricity
Development ofbiomass fuels

Co-firing of and switching to biomass fuelAdvancement of pretreatment technology (expansion of recycling) - Research and development of low-carbon waste
treatment technology
Development of hydrogen and ammonia burners - Introduction

Utilization of hydrogen and other nextgeneration energies
Utilization of CCU/CCUS

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3. Approach to achieving targets
In FY2021, the DOWA Group conducted a scenario analysis utilizing the TCFD framework. Since future projections arehighly uncertain and difficult to analyze, we referred to multiple scenarios and assumed business environments under the1.5°C, 2°C, and 4°C scenarios.
To enhance the specificity of our efforts for the preparation of the roadmap, we reviewed the current status of the social
environment and our business, and considered measures to improve the accuracy of the forecast to 2030, based on theTCFD scenario analysis.

Current situation as of 2023⚫

Under the circumstance where it is becoming increasingly difficult to achieve the 1.5°C target (IPCC AR6 SynthesisReport), policy inputs and regulations will be further strengthened to realize a carbon neutral society.

⚫

The shift to EVs will further accelerate in response to successive announcements by automakers of capital
investment in EVs and moves to support the development of recharging infrastructure.

⚫

Amid rising geopolitical risks, momentum is building for the introduction of renewable energy from the perspectiveof stable energy supply.

⚫

Procurement of fossil fuels is unstable due to price hikes, supply shortages, etc. during the transition phase to a
decarbonized society.

⚫

From an economic security perspective, supply chain management of critical minerals essential to promotedecarbonization becomes stricter.

Social and market environment
toward 2030

Current situation of the Company

Direction of efforts

As the spread of electrification andrenewable energy, including EVs,
accelerates, the need for more lowcarbon components and products willincrease.

⚫ We have strong ties to theautomotive and information andelectronics industries, providing awide range of materials for EVs andrenewable energy.
⚫ Our smelting and metal processing
facilities consume a lot of energy,using coke and coal.

⚫ Provide low-carbon materials andcomponents through in-houserenewable energy use andrenewable energy procurement⚫ Develop biomass fuels in-house andaim to co-fire them with coke andcoal during the transition phase, andreplace them in the future

Expanding customers’ Scope 3
management and a growing need for
waste treatment with low GHG
emissions.

⚫ Incineration is conducted, which is asafe method of waste disposal that
contributes to environmental⚫ Expand the waste treatment
protection and public health.
procedures to increase recycling⚫ Incineration waste heat is effectively
and avoid increasing the volume ofutilized to generate electricity.
incinerated waste⚫ We recognize that volume reduction ⚫ Promote low-carbon waste
by incineration is also necessary as
treatment using biofuels anda means for prolonging the life of
renewable energy sources
final disposal sites, which are facingtight conditions.

Discussions for the introduction of a⚫ We have already been directly andcarbon pricing system will be progress.
indirectly affected by the energy(full-scale emissions trading,price hikes, which could lead to
introduction of carbon tax, etc.)
further cost increases.

5⚫ Accelerate the electrification of
manufacturing processes and switch
to renewable energy and biomass
fuels.
⚫ Consider the use of credit and othermeans in cases where it is difficult to
reduce GHG emissions, or in light ofuser needs for offset products, etc.

4. Roadmap for the achievement of carbon neutrality in 2050
To achieve carbon neutrality by 2050, we will make maximum use of existing technologies and systematically introduce newtechnologies. In addition to energy conservation, renewable energy, fuel conversion, electrification, and other means, wewill actively pursue the in-house development of biomass fuel, ammonia burners, etc. Going forward, we will promote climatechange countermeasures with multiple options, such as considering the use of negative emission technologies that captureand store CO2.

Reference Sustainability data in DOWA Group (Climate Change)
https://www.dowa-csr.jp/en/esg/environment/climate-change

 TCFD Reporthttps://www.dowa-csr.jp/content/files/DOWA_TCFD_report_2205_en.pdf

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