TCFD Disclosure
HOYA Corporation
May 27, 2024

1. Overview

2

Introduction
As a responsible member of society, HOYA is addressing climate-change issues in order to protect the
global environment that will be passed on to the next generation. In October 2021, we identified four
ESG materialities, including Reducing Greenhouse Gases (GHG). In December 2021, we announced ourendorsement of the recommendations of the Climate-Related Financial Disclosure Task Force (TCFD). In
the following year, 2022, we began analyzing scenarios based on TCFD recommendations.

The assumptions for the TCFD disclosure, the 2nd year for us, are as follows.
Year of analysis: 1st : Fiscal year ended March 31, 2023
2nd: Fiscal year ended March 31, 2024
Scenario: 4°C/1.5°C scenario

Fiscal year covered by analysis: Impact as of 2030
Major GHG to be analyzed: Carbon dioxide (CO2)
Scope: Scope 1+Scope 2** We have started measuring the major categories of Scope 3 in 2023 and are planningto disclose it in the HOYA INTEGRATED REPORT 2024 which is will be published in
September, 2024.

3

Businesses Covered in the Analysis
Our group has more than 10 business divisions, and their business characteristics, scale of operations,and regions of operation vary greatly. In FY2021, the Group‘s consolidated Scope 1, Scope 2 CO2emissions totaled 522K tons.* Considering the size of the impact, we have chosen two business divisions,
Vision Care division (hereinafter referred to as VC) and MD division in this analysis, furthermore thescope of analysis has been expanded to include Optics division (hereinafter referred to as OP) in
FY2023. The combined CO2 emissions of these three business divisions account for 88% of the HOYA
Group's total CO2 emissions. With regard to physical risk (flood), which we consider to be a significant
climate change risk, we have included all production sites in our business in our analysis.
*Figures reflect the results of an audit by a third-party organization (February 2023)
Results for FY2022 are also disclosed on the company website with thethird-party guarantees.

Others,64

OP, 97

FY2021(base
year)
CO2
emissions bydivision(K t-CO2)

VC, 230

MD, 131
4

VC Division Overview
Description of Business: R&D, production, and commercialization of eyeglass
lenses. We handle not only general monofocal ophthalmic lenses, but also lens
products, which aim to meet vision care needs along all life stages and lifestyles.
Examples of these are progressive addition lenses, which offer tailored vision or all
viewing distances from near to far, and photochromic lenses, which adapt to light
conditions, rapidly changing from clear to dark and back. Overseas sales account for
approximately 90% of total sales, and by region, Europe is followed by the Americas.
Manufacturing sites are located around the world, and production is particularly highin Thailand and Vietnam.

Environmental Characteristics: VC Division procures resin from material manufacturers. The resin material is molded,
cut and polished, and then coated with anti-reflection materials etc. In the manufacturing process, a large amount ofelectricity is used for vacuum deposition machines used in coating, and the majority of CO2 generated is Scope 2. In
addition, water is used in the polishing process, and a large amount of scrap is generated in the process.
Supply Chain:

Lens material manufacturer

Lens manufacturer

Eye care professionals

5

MD Division Overview
Description of Business: R&D, production and sales of glass substrates for HDDs
(Hard Disc Drives). HDDs are used as an external storage for PCs and TVs, and is a
critical device for data centers, which are essential infrastructures in a data-driven
modern society. By making glass substrates thinner, we are helping to improve theefficiency of data storage by expanding the number of substrates installed per HDD unit
as well as data capacity per HDD unit. Glass substrates are manufactured mainly in
Vietnam. In the future, we plan to increase the capacity of the plant in Laos.

Environmental Characteristics: MD Division procures glass materials from material manufacturers, which are thenmolded into discs and then polished to make them thin. The majority of CO2 generated is Scope 2 as almost allprocesses use electricity for processing. It also requires large amounts of water in the polishing process.
Supply Chain:

6

OP Division Overview
Description of Business: R&D, production and sales of optical glass materials andoptical lenses. Optical lenses are used for interchangeable lenses for mirrorlesscameras, compact digital cameras, and in-vehicle cameras, etc. We have achieved
high-mix, high-volume production by integrating all processes from R&D of optical glass
composition to manufacturing of finished lenses. In the future, demand for in-vehicle
cameras used in Advanced Driver-Assistance Systems (ADAS) and other applications is
expected to grow, and we are continuing to develop new applications for our products,
including optical products for AR/MR. We have production sites in Japan, China, andThailand.
Environmental Characteristics: OP Division procures glass raw materials such as silica sand from material
manufacturers, formulates and melts them, and manufactures optical lens materials and optical lens products. Rare
metals are also important raw materials in the manufacturing process. A large amount of electricity is used for melting
furnaces and lens molding presses, and the majority of CO2 generated is Scope 2.
Supply Chain:

7

Production Sites Subject to Scenario Analysis for the 3 Divisions

Lamphun Plant, Thai

Hanoi Plant 1, Vietnam
Weihai Plant, China

Hanoi Plant 2, Vietnam

Akishima Plant, Japan

Qingdao Plant, China
Ayutthaya Plant, Thai
Suzhou Plant, China
Patumtani Plant, Thai

VC Division
MD Division
OP Division8

Process of Scenario Analysis
After narrowing down the analysis target to the VC, MD and OP divisions, we organized a study team (TCFD project)consisting of personnel from departments that are highly relevant to each business division and conducted datacollection and analysis as well as multiple workshop-style discussions in the following four steps.

Approximately 30 members from the Head Quarter TCFD Team and relevant functions in each division participated in
the workshop. They shared highly specialized insights from the perspectives of technology development, manufacturing,administration, sales, and environmental, health, and safety, and actively exchanged views. In addition to Japan,
participants from Europe and Southeast Asia were also able to reflect the pragmatic situation at the site in scenario
analysis etc.

Selection of external scenarios
In-house scenario setting

Step
Assessment of significanceof risks and opportunities

Creation of output for
TCFD disclosure

Step
Step

Financial impact estimation
Consideration of countermeasures

Step

9

2. Governance10

Governance Structure
We have a company with a Nominating Committee, etc. system. The Board of Directors serves as a monitoring board, oversees theexecution side, and deliberates and decides on important matters related to the management policies of the entire Group. The ESG
Promotion Office proposes the Group's basic sustainability policies, including climate change countermeasures, materiality, andimportant measures such as TCFD and RE100, which are then deliberated and decided by the Board of Directors. In addition, theBoard of Directors receives regular reports (twice) from the Chief Sustainability Officer (CSO) on the progress of the Group's response
to climate change. Furthermore, the Board of Directors deliberate six times on climate change-related issues related to the activities ofthe business divisions and provides advice from various perspectives in FY2023.
Since management is conducted under a business division system through portfolio management, policies for responding to climaterelated issues in each division are reflected in the management strategies, management plans, and annual budgets of each business,
which are approved and resolved by the Board of Directors. Furthermore, the presidents of each business division appoints a team incharge of ESG, which develops measures for their KPIs established by each business division after consulting with CSO about KPIs
that are consistent with group targets and supervises progress. KPIs set by individual divisions are monitored and supported by ESG
Promotion Office at the global HQ. and the effectiveness of KPIs is enhanced by setting key items as annual incentive-assessment
items for presidents of business divisions.

In addition, from FY2022, ESG indicators have been introduced in Performance Share Units (PSUs), the medium- to long-term
incentives for Executive Officers' compensation, and targets have been set based on evaluations by external organizations and thestatus of initiatives on ESG themes (including climate change and human capital) that are important to the Company. Also, we haveenhanced the effectiveness of annual incentives for presidents of business divisions by making important KPIs among ESG-related
targets set by each business division an evaluation item (e.g., ratio of renewable energy use, henceforth "renewable energy power
ratio") since FY2023.

11

Governance Structure
In March 2022, CSO was appointed and the ESG Promotion Office at the Group headquarters was established. The
CSO and ESG Promotion Office play a central role in promoting activities related to HOYA Group-wide sustainability/ESG. In addition, HOYA has a fully independent business division structure. Each division was voluntarily engaged ininitiatives related to sustainability /ESG, but in May 2022 we established ESG counterparts in each division tocoordinate with ESG Promotion Office at the head quarters. Through collaboration between CSO, ESG Promotion
Office and ESG counterparts of each business divisions, management discussions are also reflected in the promotionof integrated group-wide activities. These activities are also reported by CSO to the Board of Directors and monitoredby the Board of Directors.
CEO

BOD

CSO

Global HQBusiness Divisions

ESG Promotion OfficeSustainability/ESG PIC

collaboration

collaboration

Relevant HQ Functions

Relevant Divisional Functions(EOSH, HQ, Compliance etc.)（Environment, QARA, R&D etc.)

Working in Unison

12

3. Strategy

13

In this document, risks and opportunities related to climate change are analyzed from thefollowing three aspects, based on the 1.5°C and 4°C scenarios assumed by specializedorganizations such as the Intergovernmental Panel on Climate Change (IPCC) and theInternational Energy Agency (IEA). Specifically, from the list of risks and opportunities, theimportance of the TCFD project was evaluated in terms of likelihood of occurrence and impact
on three levels.
Transition risk:
Risks arising from the strengthening of regulations and changes in the market
accompanying the transition to a carbon-free society
Physical risk:
Risks arising from physical damage caused by natural disasters, etc.
Opportunities:
Positive business opportunities for operating results due to changes in the market/customers,
etc.
The time frame considered here is short term (1-3 years), medium term (2030), and long term
(2050), and the impact as of 2030 is analyzed in this study.

14

4°C and 1.5°C Scenarios
Scenario in which introduction of climate policies are slow, fossil fuel dependence
develops; GHG emissions continue to increase•

4℃ Scenario•••

Governments are not expected to meet climate change targets. Slow progress inintroducing policies to curb GHG emissions.
Carbon taxes/carbon pricing are rarely introduced or are low in amount.
Energy demand increases by 1.3% annually with economic development but ismostly supported by fossil fuels.
Temperatures will rise about 4°C above current levels (assuming IPCC SSP5-8.5
or SSP3-7.9).

Scenario in which climate policies are introduced, economic development becomesless dependent on fossil fuels; GHG emissions decline•

1.5℃ Scenario

•
•
•
•

Governments introduce policies to curb GHG emissions; developed countries
lead the way in reaching net zero CO2 emissions.
Carbon tax/carbon pricing is introduced.
Use of renewable energy expands, and fossil fuel energy supply declines
significantly.
Clean energy policies and investments surge, technological progress is rapid,
and development of low-carbon energy sources and land productivity increases.
Temperature increase limited to about 1.5°C above current levels (assuming
IPCC SSP1-1.9)
15

Risks Identified by VC Division
Item

Countermeasures

Financial impact
4℃

Transition risk

Increase in material (resin), production, and transportation costs
due to introduction of carbon tax /carbon pricing• Increase energy efficiency in operations, improve up &downstream transportation where possible and invest in
renewable energy opportunities (CAPEX & OPEX).
• Innovate process and product development to reduce impact
and cost• Reduce GHG emissions and expenses in consultation withraw material manufacturers and transporters

Strengthening emission reporting obligations
Mandatory carbon footprint display in the manufacturing process• Establish new governance structure to trace carbon footprint• Introduce IT infrastructure to set targets, track and takeactions

Regulation of microplastics in the polishing process due tostricter disposal regulations and an increase in processing costs• Develop plastic recycling technologies• Innovate processing methods that minimize residues andwaste

Decline in market share and sales due to delay in response to
consumer awareness of climate change• Consider labeling CO2 emissions on products• Review marketing strategy: innovate product to reduce impact
and increase communication

Loss of customers and decrease in sales in the event of delaysin the introduction of climate change measures /information
disclosure in the selection of customers' suppliers• Transparency of Environmental roadmap (CO2, Water,
Recycling & Reduction) to provide to Global & Local Key
customers as part of Tender process and ongoing partnership.
• Provide regular ESG progress updates to customers andother external stakeholders• Expansion of climate-change-related disclosure, including
TCFD and CDP disclosure - pro active on Group level andprepare for division level (reactive)

Decline in reputation and sales due to insufficient response toenvironmental issues such as reducing CO2 emissions andwater recycling• Provide annual ESG progress report to customers• Expansion of climate-change-related disclosures, including
TCFD and CDP disclosures - pro active on Group level andprepare for division level (reactive)

1.5℃

16

Risks Identified by VC Division – Cont’d
Item

Countermeasures

Financial impact
4℃

Physical risk

Production activities and supply chain disruptions caused byoutbreaks of infectious diseases triggered by extreme weather
conditions, lockdowns and other behavioral restrictions that limit
the operations of eyeglass retailers, who are customers of VC
Division• Formulation/update of BCP for own factories• Promote dispersion of production sites

Stagnation of production and sales activities due to extreme
weather conditions, and the submersion or destruction of
production sites due to flooding• Promote dispersion of production sites and individual flood
control measures• Formulate BCP including securing inventory

1.5℃

17

Reference: Past Case Studies - Physical Risks in VC Division
In October 2011, two plants in HOYA Lens Thailand, Ltd.,the main manufacturing sites for eyeglass lenses, weredamaged by a large-scale flooding in the Chao Prayer
River Basin in Thailand. In particular, the Ayutthaya plant inThailand, which manufactures custom-made eyeglass
lenses, was heavily inundated, and it took about six months
to resume operations after drainage and recovery work of
manufacturing equipment.
The Thai plant ships and processes products to countries
around the world. During the period of shutdown ofoperations, sales declined due to the suspension of orders
and damage to manufacturing equipment were severe.
In response to the above, we have been working todecentralize our manufacturing sites by increasing capacity
at sites other than Thailand including the establishment of anew plant in Vietnam. At the same time, we are promoting
the establishment of a business continuity planning (BCP)
to ensure that supplies to customers are maintained for acertain period in the event of an emergency.
18

Opportunities Identified by VC Division
Financial impact
Item

Countermeasures
4℃

Increased sales by rapid success in product development responding to
growing demand for low-carbon products• Indicate carbon footprint• Integrated environmental footprint
reduction mindset into overall productdevelopment strategy• Collaborate with material manufacturers

Increase in sales due to rapid success in product development as
demand for products that are easy to recycle/reuse increases• Develop circular economy-focused
product strategy together with suppliersand customers

Cost reduction by developing technology to reuse and reduce water
consumption as a result of water resource shortage due to global
warming・Establishment of production methods withlow water consumption
・Introduction of advanced water treatment
technology and increase in reuse

Realizing more efficient manufacturing processes through DX, etc.

• Reduce CO2 and relevant costs throughimproving production efficiency• Invest in DX technology and DX training

Formulation of BCP, diversification of manufacturing sites and suppliers• Introduction and Training of BCP• Renovation of each plant, geographicaldispersion of sites, etc.

MarketImprove assessment in financial markets and reduce financing costs byaddressing ESG and climate-change issues and disclosing information• Expansion of ESG disclosures including
TCFD disclosure - proactive on Grouplevel and prepare for division level(reactive)• Improve disclosure and score in CDP

1.5℃

Poducts &Services
Resource efficiency
Resilience

19

Risks Identified by MD Division
Content

Countermeasures

Financial impact
4℃

Transition risk
Physical risk

Increase in material (glass), manufacturing and transportation
costs due to introduce of carbon tax/carbon pricing• Introduction of renewable energy/purchase of carbon credits• Reduce GHG emissions and expenses in consultation with raw
material manufacturers and transporters

Increase in compliance costs due to strengthen of environmental
regulations, and fines for violations• Establishment/enhancement of an organizational structure• Conversion to facilities in compliance with regulations

Decline in reputation and sales due to insufficient response toenvironmental issues such as reducing CO2 emissions and water
recycling• Expansion of climate-change-related disclosures, including
TCFD and CDP disclosures

Production activities and supply chain disruptions caused byoutbreaks of infectious diseases triggered by extreme weather
conditions, and a decline in demand due to a decline in theoperation of factories by customers• Formulation/update of BCP for own factories• Promote dispersion of production sites• Consideration of plans based on impact for the customers

1.5℃

20

Opportunities Identified by MD Division
Content

Financial impact

Countermeasures

4℃

MarketResource efficiency
Resilience

Improve assessment in financial markets and reduce
financing costs by addressing ESG and climate-change
issues and disclosing information• Expansion of ESG disclosures including TCFD
disclosures• Improved disclosure and scores on CDP

Growing demand for low-carbon products and rapid successin product development will increase sales

•
•
•
•

Cost reduction by developing technology to reuse andreduce water consumption as a result of water resource
shortage due to global warming• Establishment of production methods with low water
consumption• Introduction of advanced water treatment technology
and increase in reuse

Realizing more efficient manufacturing processes throughDX, etc.

• Reduce CO2 and relevant costs through improving
production efficiency• Invest in DX technology and DX training

Formulation of BCP, diversify of in-house manufacturing
sites and suppliers• Introduction and Training of BCP• Renovation of each plant, geographical dispersion ofsites, etc.

1.5℃

Indication of carbon footprint
Review of product strategy
Increase in technology development budget
Collaboration with materials manufacturers

21

Risks & Opportunities Identified by OP Division
Content

財務影響Countermeasures
4℃

Transition Risk

Increase in material (glass), production, and transportation costs
due to introduction of carbon tax /carbon pricing••

Introduction of renewable energy/purchase of carbon credits
Reduce GHG emissions and expenses in consultation withraw material manufacturers and transporters

Increase in compliance costs due to strengthen of environmental
regulations, and fines for violations•

Develop organizational structure to comply withenvironmental regulations
Conversion to facilities in compliance with regulations•

Physical Risk
opportunity

Delays in deliveries and reduced production volume due tostoppages of operations at raw material suppliers caused byextreme weather and natural disasters••

Securing inventory (especially for critical materials for which
procurement sources are limited)
Securing multiple suppliers for critical materials

Production activities and supply chain disruptions caused byoutbreaks of infectious diseases triggered by extreme weather
conditions, and a decline in demand due to a decline in theoperation of factories by customers••

Formulation/update of BCP for our factories
Establishment of production backup systems at other sites

Stagnation of production and sales activities due to extreme
weather conditions, and the submersion or destruction of
production sites due to flooding•

Promote production backup systems at other sites andmeasures against flood at each site.
Formulate BCP including securing inventory

Reduction of energy and electricity costs through energy-saving
measures for production facilities

•

•

1.5℃

Promote measures to improve energy efficiency of existingproduction facilities at each production site

22

Activities of introduction of renewable energy and energy-saving (HOYA Group)●Introduction of renewable energy
The HOYA Group is moving forward with switching to renewable energy at each production
site and sales site. In FY2022 the Group introduced solar-power generation facility on its own
premises, building the facility at HOYA Optical Technology (Weihai) Co., Ltd., a production
base for optical glass and lenses in Shandong Province, China. The Group is also
accelerating conversion to purchase of renewable energy by reviewing electrical-power
agreements and using energy attribute certificates, focusing on countries in which renewables
are readily available. Based on a renewable-energy plan (with energy attribute certificates) toachieve 100% renewable-energy sourcing at Vision Care Matsushima Plant and at HOYA
Lens Deutschland GmbH. In addition, the global head office in Japan has already achieved
100% renewable-energy usage, by means of Non-Fossil Certificate from FIT.
The CO2 emission reduction effect by introducing renewable energy in FY2022 was about
3,700t-CO2, and the renewable energy power ratio was 2.2%.

Solar panels installed at HOYA Optical
Technology (Weihai) Co., Ltd. (annual
generating capacity: 1,300 MWh; reduction in
annual CO2 emissions: about 800 t-CO2)● Energy saving activities
At production sites, we are promoting energy-saving activities such as upgrading to energy-efficient equipment by adopting ice thermal
storage systems and high-efficiency transformers, optimizing the operating hours of boilers and air conditioners, and greening rooftops.
We are also striving to reduce CO2 emissions from non-production sites by introducing light clothing in offices, adjusting room
temperature appropriately, and implementing efficient lighting.
In FY2022, the CO2 emission reduction effect from the renewal of new production facilities and improvement of energy efficiency inproduction processes was approximately 5,600t-CO2.
*Results for FY2023 will be reported in the Integrated Report to be published in September 2024 and in CDP2024.

23

Physical Risk Assessment (Flooding)
Increased and severe natural disasters, outbreaks of infectious diseases, and water shortages due to climate change may affect not
only our own operations but also those of our supply chain. The HOYA Group assesses flood risk and water stress risk at production
sites by using the Aqueduct Water Risk Atlas tool developed by the World Resources Institute (WRI), an international environmental
NGO, and by conducting interviews at production sites. In order to conduct efficient corporate operations from a global perspective, ourgroup promotes management decision-making, R&D, production, and sales in optimal locations, and in particular, our production sites
are located mainly in Southeast Asia. The results of the risk assessment showed that the flood risk was relatively high for production
sites in Southeast Asia, including Vietnam, Thailand, and Indonesia, with 35% of production sites at high risk or higher.

●Countermeasures against flooding
Based on the experience of flood damage at the VC Thailand production site in 2011, we are promoting the establishment and periodic
review of flood countermeasures and business continuity plans (BCP) at each production site, as well as the development and trainingof systems to ensure the safety of employees. We are also working to reduce risk by decentralizing our production sites to areas withrelatively low risk of flooding and securing appropriate inventories in case of supply chain disruptions.

●Infection control measures
Since before the COVID-19 pandemic, HOYA had been proactively working on measures to address the risks of emerging infectious
diseases, following the formulation of its “Guidelines on Countermeasures Against New Strains of Influenza and Other Infectious
Diseases” based on a scenario of pandemics of new strains of influenza and other emerging infectious diseases. Under the Guidelines,
we have established the HOYA Group Influenza/Epidemic Risk Management Team, formulated a business continuity plan, andorganized channels for collecting, conveying and sharing information; in addition, we have put in place a framework to enable thestable supply of products, etc. while minimizing health hazards by giving top priority to ensuring the safety of employees, their families,
relevant parties and others.
24

Water Stress Risk Assessment
Water is one of the important resources in the production activities of the HOYA Group, and in particular, the MD Division (HDD glass
substrates) and VC Division (eyeglass lenses) use a large amount of water in their production processes. Based on our basic
environmental policy, the HOYA Group is striving to make effective use of water resources by promoting the reuse of water andreduction of water usage on a global basis. Water stress risk was assessed using the Aqueduct Water Risk Atlas, and the percentage
of production sites at high risk or above was 30% (23% based on water withdrawal).
●Water intake and water reuse ratio results●Water intake by division
Others,
3,833

VC,
3,750

FY2021
Water
withdrawal
(Km3)

MD,
11,056●Water intake reduction target
The HOYA Group is working to reduce water consumption by setting targets for each business division, taking into consideration the water
consumption status of each business unit. In order to further accelerate these efforts, the HOYA Group plans to set water targets for theGroup in near future.

●Initiatives to Reduce Water Intake *For details, please refer to the Water Reuse Initiatives section of our website.
We are working to review production processes and improve the water reuse rate by setting individual targets and creating roadmaps,
focusing on sites with large water intake volumes and sites with high water stress risk.
25

4. Risk Management

26

Risk Management
The Group conducts portfolio management and responds to changes in the business environment by reviewing its portfolio through thedevelopment of new businesses, acquisitions from external sources, and business transfers. In addition, we have appointed a person
in charge at the Group Head Quarters who is responsible for functions that we believe pose significant risks to us, such as compliance,
regulatory compliance, cybersecurity, and health and safety. The person responsible for identifying and preventing risks through theperson responsible for these functions in each division is reported to the Board of Directors once a year by the person responsible atthe Group Head Office. Climate change risks are handled in an integrated manner with these and are reported to the Board of
Directors by the CSO.
ESG Promotion Office under CSO monitors changes in circumstances surrounding climate change with the participation of outside
experts and analyses them once a year.
In FY2022, we analyzed the risks and opportunities associated with our two business divisions’ key operations, where GHG emissions
are high and climate-change impacts are high. In FY2023, the analysis was expanded to include the OP Division, which has the thirdlargest GHG emissions after these two business divisions.
In the event of a significant change in circumstances resulting from monitoring, the head office TCFD projects and business divisions,
including the Head Office ESG Promotion Office, IR, and members of the Environment, Health, and Safety Department, collaborate toreview physical risks related to climate change. Responses to these risks will be coordinated with appropriate divisions within therespective divisions (e.g., departments related to production, store development and procurement) under the supervision of the
responsible persons in charge of each business division.
The risks associated with changes in the business environment due to climate change (transition risks) will also be shared with thesustainability /ESG teams/staff in business divisions around the world based on the above analyses, as well as the environmental,
quality assurance, and procurement-charge departments related to sustainability, and appropriate countermeasures will be formulated
for each business division.
ESG Promotion Office at the Group head quarters monitors the progress of KPI established in the respective businesses semiannuallyand discusses countermeasures with the business divisions as needed.

27

5. Goals and Future
Outlook28

Indicators and Targets•••

The measurements used to assess climate-related risks and opportunities are Scope 1 and 2 greenhouse gas emissions and thepercentage of renewable energy in the electricity used in our business activities.
Since 97%(*1) of our group's greenhouse gas emissions (total of Scope 1 and 2) are Scope 2 and most of them are indirectemissions from purchased electricity, we will be able to effectively reduce greenhouse gas emissions by actively promoting the useof renewable energy for electricity, and therefore, in January 2023, we will join RE100 and set a company target of 100%
renewable energy by FY2040 (interim target: 60% renewable energy by FY2030), and we are accelerating our efforts to achieve
this goal.
Each business division has formulated an energy conservation plan in line with the company's targets, and the degree ofachievement of the RE100 target together with other ESG targets is reflected in the annual incentives for each business divisionpresident to enhance effectiveness. The degree of achievement of ESG targets, including those related to climate change, for theGroup as a whole is an evaluation item for the annual incentives of the executive officer in charge as well as for the mid-term
incentives of all executive officers.
Item

Fiscal 2021
Results(Base year)

FY2022
Results*2

FY2030TargetFY2040TargetRenewable energy power
ratio (%)

1%

2%

60%

100%

HOYA's CO2 emissions(Scope 1 and 2)

522K t-CO2 (*2)

499K t-CO2
4% reduction
vs base year

60% reduction
vs base year

100% reduction
vs base year

*1 Fiscal 2021 Results*2 66 manufacturing sites (10 domestic and 56 overseas) and 44 non-manufacturing domestic sites (including all Eye City retail stores and 10
aggregation units). Third-party verification with limited assurance.
29

TCFD Disclosure Timeline
Disclosure Policy:
We strive to disclose information in a timely and appropriate manner so that all of our stakeholders, including shareholders
and investors, customers, and business partners, can better understand our Group and properly evaluate us. As a listedcompany, we believe that it is important to promote fair stock price formation in the securities market and contribute to thesound development of the capital market by providing information that can be particularly important for shareholders andinvestors to make investment decisions promptly, accurately and fairly. In particular, as stakeholders' interest in disclosing
information based on TCFD recommendations increases, we will disclose information in a timely manner in an easy-tounderstand and transparent manner.

Information Disclosure Methods:
We will disclose information based on the TCFD recommendations (this document), as well as in our Annual Securities
Report and Integrated Report etc. as per the schedule below. In addition, we will continue to consider expanding thenumber of business divisions covered, Scope 3 calculations and disclosures with a view to setting SBT, and compliancewith the IFRS Sustainability Disclosure Standards proposed by the International Financial Reporting Standards (IFRS)Foundation.
TCFD Report (this document)

Corporate Governance Report
Integrated Report

Jan

Feb

Mar

Apr

Announcement of CDP scores

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Responses to CDP Linked to TCFD Disclosures

Notices of AGM /Annual Securities Report30

Innovating For a Better Tomorrow