Disclosures in Accordance with TCFD Recommendations
Introduction
The Valuence Group recognizes that climate change is one of the most important management issues
related to our business activities. To resolve the issue, we intend to strengthen our governance structure,
analyze the impact of climate change risks on our business, take appropriate measures to deal with climatechange risks, pursue opportunities for growth, and incorporate related measures into corporate strategy.
Accordingly, we endorse the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) established by the Financial Stability Board (FSB). We address climate change in a proactive manner,
and we disclose relevant information toward our goals of realizing environmental and social sustainability,
as well as sustainable growth for our company.

Governance
Board Oversight
The Valuence Group recognizes that addressing sustainability, including climate change, is one of themost important management issues we face. Our Board of Directors deliberates and approves
resolutions on important matters related to sustainability.
We established an ESG Promotion Committee, which reports to the Board of Directors on sustainabilityplans and progress. Reports are made on a quarterly basis, and these reports include discussions ofclimate-related risks and opportunities. The Risk Management Committee reports after the Committee
meeting to the Board of Directors on topics related to overall risk management, including climatechange-related issues.
The Board of Directors receives reports on discussions and resolutions made in the ESG Promotion
Committee and the Risk Management Committee. The Board discusses and deliberates Valuence Group
policies and action plans for addressing environmental issues, and then supervises the execution of
those plans.
The Role of Management
The Representative Director serves as chair of the Risk Management Committee and has ultimate
responsibility for the execution of managing the risks including climate change risks, within theValuence Group. The Director in charge of ESG promotion chairs the ESG Promotion Committee andhas executive responsibility for sustainability initiatives, including the management of climate change
issues.

Climate Change GovernanceRisk Management
The Valuence Group selects activities, focusing on our mainstay businesses, to be addressed by the ESG
Promotion Committee. The ESG Promotion Committee examines risks and opportunities related toclimate change in detail.
The ESG Promotion Committee reports its discussions and deliberations to the Board of Directors. Risks
and opportunities found to be particularly important are reflected in Group management strategies andmanaged by the ESG Promotion Committee.
In addition, the results of climate change risk analysis and the progress of initiatives to address climatechange are shared with the Risk Management Committee, the body responsible for group-wide risk
management, and the status of risk management on climate change is monitored by the Risk
Management Committee. The ESG Promotion Committee and the Risk Management Committee work incooperation to manage climate change-related risks.

StrategyRisks and Opportunities Over the Short-, Medium-, and Long-Term
We believe in the necessity of establishing and examining milestones for climate change-related risks
and opportunities, as these risks have the potential to impact the Valuence Group over the long term.
We examined climate-related risks and opportunities for the years 2025, 2030, and 2050, which we
consider short-, medium-, and long-term time frames.
Process for Determining the Impact of Risks and Opportunities on Business, Strategic, and FinancialPlans
We conducted scenario analyses to understand the risks, opportunities, and impacts of climate changeon the Valuence Group. These analyses also assessed the resilience of Valuence Group strategies andthe need for further measures. We included the value chain of our mainstay businesses in the analyses,
addressing the purchase and sale of luxury brand goods, antiques, and fine art.
Risks were identified from the perspective of transition risk (regulatory, technology, market, andreputation) and physical risk (acute and chronic). We then scored the degree of impact of the risks withconsideration for financial perspectives, employee safety, and social reputation.
We assessed transition risk referencing the Net Zero Emissions by 2050 Scenario (NZE) of the IEA (2021).
We assessed physical risk referencing the Representative Concentration Pathways (RCP8.5) of the IPCC
(2014).
Scenario Analysis Results and Strategic Resilience
The Valuence Group recognizes the importance of ongoing strategic resilience improvements toachieve carbon neutrality. To this end, we consider specific measures to transfer, avoid, or mitigate risks,
while also responding to opportunities.
We incorporate matters we deem particularly important into our group strategy, managing thesematters accordingly.

The table below details risks and opportunities, responses, and resilience strategies.
Reference Scenarios

Summary of Valuence Group Climate Change-Related Risks and Opportunities

As a result of the scenario analyses described above, the Valuence Group once reconfirmed thefollowing key transition risks: the loss of business opportunities due to inadequate responses to climatechange; reputation damage; the ability to attract talent; and employee engagement. In terms of physicalrisks, we recognized the impact of natural disasters on physical stores, offices, and warehouses as amajor risk.
At the same time, we reaffirmed that the emergence of circular economies presents an opportunity toexpand the reuse market, which aligns with our mainstay businesses. To this end, we strive to achievecarbon neutrality, driven by the belief that our response to the risks identified will lead to business
opportunities and enhanced corporate value.
In particular, we are working with a sense of urgency to address risks having the highest degree ofimpact. Specifically, we participate in and endorse various initiatives, expand disclosure on our efforts toaddress climate change, and work to reinforce systems in preparation for disasters. In addition toreducing Scope 1 and 2 emissions, we are also considering measures to reduce Scope 3 CO2 emissions.
We will prioritize categories having high emissions, aiming ultimately to achieve carbon neutrality.

Metrics and Targets
The Valuence Group uses greenhouse gas emissions as an indicator of our efforts to address climatechange. Our goal is to become carbon neutral throughout the value chain by FY2030.
Going forward, we will work to grasp our present situation, including the calculation of greenhouse gas
emissions, and discuss specific measures to reduce environmental impact, as well as to further enhance
our disclosures on climate change.

Updated JULY 14, 2023