Disclosure Report in Response to
TNFD and TCFD Recommendations

June 2024

Introduction: LIXIL’ s Impact and its Environmental Strategy
At LIXIL, we are scaling our positive impact for the environment and society, and our business serves as the foundation of oursustainable growth and value creation. Driven by LIXIL’ s Purpose to make better homes a reality for everyone everywhere, ourcommitment to impact extends beyond our ESG obligations.
LIXIL’ s Impact strategy includes Water Conservation and Environmental Sustainability as one of its strategic pillars, and six
material issues:

・Climate Change Mitigation and Adaptation
・Water Sustainability
・Circular Economy

・Environmental Impact of Product Lifecycle
・Environmental Management

・Conservation of Biodiversity
The LIXIL Environmental Vision 2050 formulated in FYE2020 declared a commitment to “Zero Carbon and Circular
Living” We have set and established Climate Change Mitigation and Adaptation, Water Sustainability, and Circular Economy in
the above material issues as the three focus areas for realizing the vision. As a springboard for promoting these focus areas, wehave been working to reduce our environmental burden across the product lifecycle and to strengthen our company-wide
environmental management. LIXIL is also advancing initiatives to conserve biodiversity, which also serves as a common
foundation for the three focus areas.
By 2050, we aim to achieve net-zero carbon emissions and preserve water and natural resources in our operations, housing
and lifestyle solutions for future generations.

CLIMATE CHANGE MITIGATION AND ADAPTATION
Achieve Net-Zero GHG Emissions through Our Business Operations, Products and Services

WATER SUSTAINABILITY
Enhance the Environmental Value of Water Resources by Saving, Circulating and Purifying Water

CIRCULAR ECONOMY
Help Transition to a Circular Economy and Preserve Natural Resources for Future Generations

For more information: Water Conservation & Environmental Sustainability

As a maker of water and building technologies, LIXIL is not only committed to reducing its CO2 emissions, but contributing
to society through its efforts to tackle environmental challenges.
In FYE2023, we revised our environmental strategy as part of our responsibility to reduce our environmental burden, and indelivering greater impact for the planet and the way people live. In our updated strategy, we set new qualitative and quantitative
mid-term targets divided into three phases: Our Operations, Our Value Chain, and Expanding Our Impact. LIXIL’ s approach goesbeyond fulfilling its corporate responsibilities, but outlines a comprehensive approach to create and maximize its social andenvironmental impact, encompassing both the present and future.
For more information: Targets and Initiatives* “2030” and “2050” in this document refers to our fiscal year, starting in 2030 or 2050.
Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 01

Disclosure of Environmental Issues, Including Climate Change, Natural Capital and Biodiversity(In Response to the TCFD and TNFD Recommendations)
In March 2019, we announced our endorsement of the Task Force on Climate-related Financial Disclosures (TCFD). In
January 2024, we registered as a TNFD Early Adopter, expressing our intent to adopt the Task Force on Nature-related Financial
Disclosures (TNFD) recommended framework in our disclosures starting FYE2024. Based on the TNFD recommendations, LIXIL
has identified and assessed the risks and opportunities posed by climate change, loss of natural capital and biodiversity. The
assessment has been reported to LIXIL’s Board of Executive Officers and the Board of Directors for their approval and oversight tofurther reflect the findings in our environmental strategy.

1. Governancea. Board’ s Oversight

TC FD

TNFD

At LIXIL, we are transforming our business operations to secure corporate growth and sustainable value creation, to enhance
our impact on society and the environment. This transformation for impact requires that we build an effective governancestructure that is crucial for identifying risks and opportunities, tracking against our targets and metrics, and monitoring ourprogress.
LIXIL’ s has built a governance framework for sustainability related matters with the Board of Directors oversight. Mattersrelated to the environmental strategy, including targets, action plans and progress are discussed and approved by the Board of
Executive Officers and are reported to the Board of Directors every quarter for discussion and oversight. Additionally, mattersrelated to climate change, loss of natural capital and biodiversity, among other environmental topics are reported to anddiscussed at the Governance Committee entirely composed of outside directors for corporate governance monitoring andoversight.
LIXIL has also established the Environmental Strategy Council (ESC) chaired by the Chief Environmental Impact Officer, who
is appointed by the Board of Executive Officers. Composed of members appointed by executive officers, the ESC meets six times
a year in principle, to formulate rules and policies related to environmental governance, to deliberate on measures to address
climate change, natural capital and biodiversity loss, among other environmental topics; including their risks and opportunities,
and to manage and monitor progress toward achieving LIXIL’ s environmental targets at an enterprise level. The results of ESC
discussions are resolved through the Impact Strategy Committee and reported to the Board of Executive Officers quarterly. The
Board of Executive Officers discusses and approves targets and action plans on environmental and other material issues. They
then report to the Board of Directors twice a year for discussion and oversight.
In FYE2024, the ESC discussed and decided on formulating a transition plan to achieve CO2 emissions reductions by 2030,
and to apply to the Science Based Targets initiative (SBTi) for LIXIL’ s 2050 net zero emissions target*¹ verification, and tocommence analysis of biodiversity based on the TNFD framework and recommended LEAP approach.
*1 90% reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2050, with up to 10% residual emissions reduced to zero through carbon removal

Environmental Management Structure

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 02

Meeting period

FYE2022Main ESC agenda
・Reorganize the ESC into a body that includes executive officers for the purpose of strengthening
environmental governance and building and implementing environmental strategies
・Raise our targets for reducing CO2 emissions in the run up to 2030
・Report on implemention and progress against TCFD recommendations

FYE2023

・Formulate an environmental strategy designed to enhance potential social and environmental impact
・Determine water and circular economy targets for 2030
・Addition of Conservation of Biodiversity as a material issue

FYE2024・Formulate a transition plan to achieve CO2 emissions reduction targets by 2030
・Application for SBTi approval of LIXIL’s 2050 net-zero target for CO2 emissions
・Commencing LEAP approach in line with the TNFD frameworkb. Roles and Responsibilities of Directors and Executive Ofﬁcers

TC FD

TNFD

Currently, the Board of Executive Officers appoints a chairperson to each organizational body as follows.

Organizational body
Environmental Strategy Council

Impact Strategy Committee

Chairperson
Senior Vice President, Chief Environmental Impact Officer
Director, Representative Executive Officer, Human Resources, Communications,
External Affairs, and Impact Strategy, and Chief People Officer

Each chairperson is responsible for implementing the decisions made in their organizational body and in managing progress.
Executive officers in charge of individual businesses implement and monitor business-specific plans. The Chief Executive Officer
is ultimately responsible for management decisions related to environmental issues, including risks and opportunities associatedwith climate change and loss of natural capital and biodiversity, through discussions and resolutions of the Board of Executive
Officers and their oversight by the Board of Directors.
For more information: Environmental Management System

Corporate Governance Structure

c. Human Rights and Stakeholder Engagement

TNFD

LIXIL recognizes that environmental issues, including the loss of natural capital and biodiversity, are deeply connected tohuman rights and local communities. For example, improper management of the environment at raw material procurement sites
may lead to the degradation of ecosystem services that surrounding communities depend on, which in turn puts pressure on the
livelihoods of its people. Recognizing this link between human rights and environmental issues including natural capital andbiodiversity loss, the LIXIL Human Rights Principles asserts our commitment to build our business activities on the fundamental
respect for human rights.
The LIXIL Human Rights Principles were founded in line with international standards, including the International Bill of
Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and theUnited Nations (UN) Guiding Principles on Business and Human Rights. Guided by these principles, we work to uphold thehuman rights of all our stakeholders: our customers, business partners including suppliers, the people in the communities
surrounding our factories and offices, and our employees.
For more information: Human Rights

LIXIL Human Rights Principles

In addition to the established LIXIL Human Rights Principles, LIXIL has identified key human rights issues with that could
have serious effects as its Human Rights focus areas for mitigating potential human rights risks. By continually addressing such

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 03

issues, LIXIL is working to strengthen its human rights due diligence process.
Our governance structure for human rights is led by the executive office in charge of legal, compliance and corporate
auditing to strengthen and ensure strict adherence to our human rights due diligence process. The Human Rights Due Diligence
Task Force discusses the implementation of human right due diligence and exercises transparency in our reporting. As withenvironmental issues, the outcome of these discussions is reported to the Board of Executive Officers through the Impact Strategy
Committee, and the Board of Directors oversees their progress.
We also spare no effort to engage our stakeholders in dialogue on human rights issues connected to our business activities,
including our employees and customers, suppliers and other business partners, shareholders and investors, and people living in
the local communities where we operate. We make sure to respect local cultures and customs for the people living in the local
communities where we operate by fulfilling our responsibilities to employment and production. As a corporate citizen, we seek tocoexist in harmony and contribute to local communities.
For more information: Stakeholder Engagement

We also require our suppliers and other business partners to comply with applicable laws, and to act in respect for humanrights and for ethical conduct in accordance with our Supplier Code of Conduct. Along with upholding employees’ human rights,
the Code of Conduct prohibits activities that could lead to the destructing of the basic foundations of life through environmental
pollution or unlawful eviction of land rights and requires that their activities do not adversely affect the local communities where
we operate.
For more information: Supplier Code of Conduct

2. Strategy
2.1 Analysis of Climate- and Other Environment-related Risks and Opportunities
a. Identifying Risks and Opportunities

TC FD

TC FD

LIXIL has conducted scenario analyses for over the short-, mid- and long-term to identify the risks and opportunities posed byclimate change that could significantly effect its business as outlined below. Risks and opportunities were categorized intotransition risks (e.g., policy and legal, and market) and physical risks (e.g., extreme weather events) that could affect our value
chain and society.

Classification

PeriodBackgroundLong-term

10 - 30 years

Term ending in 2050 goal to achieve LIXIL Environmental Vision 2050

Mid-term

3 - 10 years

Term ending in 2030, a target year of the Science Based Targets initiative and the SDGs.
A mid-term milestone for achieving the LIXIL Environmental Vision 2050

Short-term

0 - 3 years

Term ending in 2025, when environmental initiatives will be promoted in alignment withbusiness plans

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 04

Our scenario analysis is based on the following two scenarios, selected from several scenarios published by the International
Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

Scenario Name

Scenario Overview

SourceScenario with signiﬁcant policy transition effects that aligns with the Paris Agreement’s
goal of limiting temperature rise to 1.5ºC above pre-industrial levels
1.5 ºC
scenario*1

Environmental regulations will be tightened and the introduction of carbon taxes and othertaxes will cause energy and raw material prices to rise. On the one hand, Energy regulations
and expanded subsidy programs will increase the share of Net-Zero Energy Houses (ZEH)
among new houses in Japan and will also stimulate remodeling to improve existing housing
performance. The impact of this will be an increased demand for products and services that

RCP2.6IEA SDSIEA NZE
RCP4.5
NDCs

provide high thermal insulation and energy efficiency and generation.

Scenario where environmental regulations are not tightened and physical effects are large
Environmental regulations will not be tightened, energy efficiency-related subsidies will not
4 ºC

be expanded, and the percentage of ZEH will not significantly increase. Physical risks such

scenarioas damage to manufacturing facilities caused by typhoons, floods, and other extreme

RCP8.5weather events will increase. Moreover, demand for products and services related to disaster preparation, response, and recovery will increase.

*1 Parameters based on the 2ºC scenario were used when parameters based on the 1.5ºC scenario were not available.

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 05

b. Impacts of Risks and Opportunities Identiﬁed in the Scenario Analysis

TC FD

The following table outlines the risks and opportunities with significant effect on our business, identified in the scenarios
described above. In 2022, we quantified the financial impact of these risks and opportunities to our business in 2030 to thegreatest extent possible. In FYE2023, we expanded our strategy to include our initiatives in water and resources associated withclimate change.

Risks and opportunities
relating to climate change
and other environment issues

1

Impacted stage

categoryof value chain

Increased operating costs due

Policy and Legal,

to introduction of carbon taxes

Technology

Increased raw material andEstimated financial impact
Time horizon
1.5ºC scenario

Direct operations

4ºC scenario
No additional

Mid to long

10 billion yen＊1

Mid to long

due to lack of parameters necessary

tax burden

Financial impact not calculated

Policy and Legal,

Direct operations,Technology, Market

Upstream

3

Loss of revenue opportunities
due to damage tothe company’s plants causedby typhoons, floods, etc.

Physical (acute)

Direct operations

Short to long

1.5 billion yen＊2

4

Loss of revenue opportunities
due to the suspension ofoperations at the company’splants caused by drought, etc.

Physical (chronic)

Direct operations

Short to long

due to lack of parameters necessary

Increased demand for energy
saving products and services
for new ZEH construction andenergy-efficiency remodelingServices, Market,

2component procurement costs

RISKS

due to market changes

5

OPPORTUNITIESRisk and opportunity

6

7

Financial impact not calculated
for quantification

Products andDownstream

Mid to long

Downstream

Mid to long

Energy Source

Increased demand for using

Products andlow-carbon, eco-conscious

Services, Markets,materials or resources

Resource Efficiency

Increased demand for products

Products andrelated to disaster preparation

Services, Markets,

response, and recovery

Services, Markets,

improve water quality

Resource Efficiency

Maintaincurrent trends

due to lack of parameters
necessary for quantification
Financial impact not calculated

Downstream

Short to long

due to lack of parameters
necessary for quantification
Financial impact not calculated

Products andthat help conserve water or

20 billion yen＊3

Financial impact not calculated

Resilience

Increased demand for products

8

for quantification

Downstream

Mid to long

due to lack of parameters
necessary for quantification*1 Financial impact calculation is based on the assumption that a carbon tax (using IEA’ s estimates of carbon prices considered necessary to achieve the 1.5ºC target) is
imposed on Scope 1 and Scope 2 carbon emissions.
*2 Average loss is calculated based on the following steps: (1) identified production sites with flood risks (based solely on production site location; risk mitigation
measures set forth in our business continuity plans (BCP) are not incorporated), using the World Resources Institute’ s (WRI) Aqueduct Floods tool and hazard maps
provided by Japanese municipalities; and (2) multiplied two factors: the number of days of stalled operations for sites in each inundation height zone indicated inJapan’ s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Manual for Economic Evaluation of Flood Control Investment; and the daily production volumeof each site.
*3 Profit is calculated based on the share, price, and profit margin of key products. This calculation assumes an increased ZEH percentage of new and existing housing
in 2030 to achieve the Japanese government’ s 66% reduction target for the residential sector by 2030.

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 06

c. Strategic Response to Risks and Opportunities

TC FD

By integrating our responses to risks and opportunities identified by the scenario analysis into our environmental strategy, we
are working to mitigate risks, achieve sustainable growth, and enhance our resilience as an enterprise.
More specifically, we have set out to improve the profitability of our Japanese business, which is one of our strategic initiatives
in the LIXIL Playbook that illustrates our mid-term business direction, and in helping to decarbonize housing throughperformance enhancements. To do this, we are reorganizing our production systems to reduce fixed costs and switch toplatform-based products, adjusting sales prices to increase productivity and profitability of our Japanese business, and thisincludes the timely launch of new products. Our window line-up revamp is one example. We are responding to external changes
flexibly, we are continually working on structural reforms and transforming into a more agile organization, achieving sustainablegrowth through the expansion of our renovation business. As a result of these initiatives, we completed developing the productplatform for our housing technology business in FYE2022 and finished revamping all of our window-series products. In FYE2023,
we updated the LIXIL Playbook to include the embedding of the environmental strategy into our business as a key strategic
initiative. By continuing to incorporate our environmental strategies into our business , we aim to improve our corporate value
while expanding our impact on society and the environment.

Key risks and opportunities

Strategic response
To reduce CO2 emissions from our business sites (especially manufacturing sites), we are working to improve
production efficiency, defect rates, combustion efficiency and upgrading our equipment that meet Japan’ s Top
Runner energy efficiency standards. We are also installing solar photovoltaic systems and increasing procurement of
renewable energy when financially feasible, and we are a member of RE100, a global initiative of companies committed to sourcing 100% renewable electricity for their operations.
We have switched all plants and distribution centers for faucet fittings (10 locations in total) at LIXIL International, which oversees all our water-related business outside of Japan, to 100% renewable energy. Six plants in Japan
have switched to renewable electricity through on-site Power Purchase Agreements (PPAs). Outside of Japan, nine
plants have switched through on-site PPAs and four plants through off-site PPAs. Going forward, we will continue toactively consider introducing renewable energy through PPAs and other models that offer high additionality. Furthermore, over 70% of our offices in Japan, including sales bases and showrooms, have already completed the switch torenewable energy.
As part of our contribution to achieving a carbon-neutral society, we have been working on innovations that incorporate new technologies, such as the conversion to hydrogen fuel and the exploration of CCU technology to separate,
capture, and effectively utilize CO2 emissions. We are also continuing to study their practical applications from 2030

1

Increased

onward. As part of our efforts to this end, we are consistently verifying manufacturing technologies with a view tooperating costs

switching to hydrogen fuel. We conducted hydrogen combustion experiments to verify the high-temperature furnaces

due to introductionused for aluminum-melting and firing sanitary ware and tiles, and we ascertained that hydrogen can be used in theof carbon taxes

same way as conventional natural gas without any issues. In addition, we conducted a successful demonstration
experiment for mass-produced equipment in LIXIL aluminum sash production plants for the aluminum aging treatment process, which originally raised concerns over its effect on product quality. This was conducted with the view
toward engineering the conversion to hydrogen fuel for processes of lower temperatures. As we move forward, we are
exploring the application of hydrogen fuel as an alternative fuel source to decarbonize our production, and looking
into equipment specifications and investments required for conversion.
We are also verifying an internal carbon pricing system to promote more strategic energy-saving investment overthe mid- to long- term.
For more information:
Climate Change Mitigation and Adaptation > Our Operations
LIXIL Starts Verification of Manufacturing Technology with a View to Switching to Hydrogen Fuel and Pursuing Innovation
to Help Achieve Net-zero CO 2 Emissions in its Business Activities (Japanese only)
Introduced LIXIL’s first PPA-based solar power generation equipment in Japan at two plants (Japanese only)
Supporting the Climate Change Initiative Message Calling for an Accelerated Introduction of Renewable Energy andan Earlier Adoption of Effective Carbon Pricing (Japanese only)

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 07

Key risks and opportunities

Strategic response
To reduce CO 2 emissions from procurement of raw materials and components, we are shifting towards
using low-carbon raw materials, recycled materials, promoting product reuse and reusable product designs andextending product life. Collaboration with all our suppliers is particularly critical in reducing our CO 2 emissions
during procurement. In FYE2023, we started engaging with suppliers that play a significant role in reducing our
procurement-related CO 2 emissions. We conducted a survey of suppliers in Japan and overseas who accountfor the top 80% of our procurement-related CO 2 emissions. The survey aimed to assess the status of CO 2
emissions — in their data collection, and their reduction target settings.
In FYE2024, we held briefings on LIXIL’ s procurement activities and emissions accounting for approximately 400
major suppliers in Japan. We also held additional briefings to provide and demonstrate the use of Scope 1, 2, and 3

Increased raw material2and component
procurement costs
due to market changes

calculation tools for suppliers who expressed their intent to start.
Moving forward, we will continue engaging with individual suppliers, and continue to provide support to
reduce CO 2 emissions reductions while ensuring the quality, quantity, and consistency of our supplier emissions
data. We also plan to collaborate with our overseas suppliers.
Furthermore, we will work on effective reductions of CO 2 emissions across our entire value chain through theuse of low-carbon raw materials and components, which also includes the use of recycled materials. At our sash
plants in Japan, we collect aluminum scraps from our sources for recycling instead of procuring new ingots;
helping to reduce energy in processes such as refining. At LIXIL International’ s water faucet plants, we installed
in-house furnaces to carry out alloy smelting for recycling brass that is used in our products.
For plastics, we are promoting the effective use of recycling resins. We are building mechanisms to help recycle
scraps in production sites, and introducing sorting equipment which will ultimately enable us to recycle resin
windows into materials for new windows.
For more information:
Circular Economy > Our Operations
Supply Chain Management > Conducting and Following Up on Responsible Procurement Survey

Anticipating major natural disasters as a risk to our business, we are carrying out business continuity planning(BCP) activities to minimize disaster risks at each factory based on estimated damages in all areas where our3

Loss of revenue
opportunities
due to damage tothe company’ s plants
caused by typhoons,floods, etc.

headquarters, offices, and factories are located. For example, our TOSTEM THAI plant experienced heavy damage
from flooding in 2011. As part of the BCP process for improving disaster preparedness, we installed floodwalls, water
pumps, and other equipment on the plant’ s perimeter to protect production facilities and shorten the recovery time.
Similarly, we are making systematic facility investments and upgrades at other factories.
As measures related to product supply, we are optimizing supplier selection, ensuring optimal inventory levels,and developing backup production systems among other efforts. We are also enrolled in insurance programs thatcover damages for fixed assets owned, used, or managed by LIXIL and its consolidated subsidiaries in Japan in theevent of an unexpected and sudden disaster caused by fire, wind, or water.

In order to better understand local conditions and introduce appropriate measures to address the problem of
increasingly scarce global water resources, LIXIL conducts annual surveys to identify water risks at all 83 plants thatuse water in their manufacturing processes. Our risk assessment process involves first creating a geographical risk
profile using the international WWF Water Risk Filter assessment tool. We then conduct surveys of sites that are4

Loss of revenue
opportunities due tothe suspension ofoperations at
the company’ s plants
caused by drought, etc.

identified as high-risk. Using the results from all these, we comprehensively assess our water risks.
In addition, we have been participating in the Corporate Engagement Program run by the Science Based Targets
Network (SBTN) since FYE2023 and have been contributing to the establishment of guidelines related to waterrisk assessment at SBTN. In FYE2024, we assessed water quality risks in addition to water shortage risks in
preparation for our TNFD disclosure.
As demonstrated above, we regularly update our analysis to strengthen measures in reducing water risks,
implementing plans and remedies for each site.
For more information:
Water Sustainability > Our Operations

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 08

Key risks and opportunities

Strategic response
The energy consumed from the building products sector accounts for about 30% of final energy consumption
worldwide. In Japan, heating, cooling, and hot water account for about 60% of the energy consumed by the averagehome. Housing performance in Japan lags behind that of other regions such as Europe, with around 90% of existinghomes in Japan failing to meet current national energy-efficiency standards. High-insulation windows have an
important role to play as a driving force for climate action.
LIXIL provides products and services that help cut carbon emissions through high insulation, water saving or
energy generation performance. As such, we believe that we have a great responsibility to reduce carbon emissions

5

Increased demand forenergy-saving products
and services for new
ZEH construction andenergy-efficiency
remodelingin homes and buildings. High-performance renovation of existing homes is particularly important due to the shrinking
market size for new housing starts in Japan. LIXIL helps stimulate home renovation through high-performance
construction methods for reinsulating entire homes; easy-to-install, highly-insulating windows and doors; andenergy- and water-saving faucets, water-saving showers, toilets, and other products. In FYE2022, we revamped
our full window lineup in our effort to reach 100% product ratio of high-performance windows for new detachedhomes by FYE2026.
For more information: Climate Change Mitigation and Adaptation > Expanding Our Impact
High Efficiency Housing for a Decarbonized World
LIXIL TEPCO Smart Partners, For Smart ZEH Building (Japanese only)
Money Saving Tips: Recommending Hot Water Saving Techniques to Conserve Electricity, Gas, and Water
Because Heating Water is the Second Most Common Usage of Household Energy (Japanese only)
Developed and Conducted Demonstration Experiments on a Solar Power Generation Roll Screen System that Promotes
Decarbonization in Existing Buildings and Enhances Business Continuity Planning (BCP) (Japanese only)

In order to respond to rising prices for raw materials and components that generate large amounts of CO 2
emissions during procurement and in production, stronger regulations on petroleum-derived plastics; changing
consumer preferences arising from the emergence of circular economy, and other changes in the market, we are using
recycled materials and renewable materials as much as possible and designing products with a longer lifespan andrecyclability into account.
LIXIL’ s GROHE brand has steadily increased products with Cradle to Cradle certification over the years andreleased EPDs (Environment Product Declarations) for 18 product groups that cover 777 products. In Japan, we set a
mid-term target to use 100% recycled aluminum in aluminum profiles for our housing technology business by
FYE2031. If we achieve this target, it will account for approximately one third of LIXIL’s stipulated mid-term target
for a 30% of Scope 3 CO 2 emissions reduction. (vs. FYE2019). In December 2022, we launched the PremiAL series
products of low-carbon aluminum profiles, made of recycled aluminum for use in building materials. With our
low-carbon aluminum profile using recycled aluminum, the EcoLeaf certified PremiAL R70, we can replace productsthat use new ingots with 70% recycled aluminum. This change can contribute to CO 2 emissions reductions by 55%.
In addition, we have been developing the technology to utilize entirely recycled aluminum. We achieved abreakthrough with mass producing PremiAL R100 that was launched in September 2023, made from 100% recycled
aluminum and contributes CO 2 emissions reductions by 75%. The PremiAL series products are increasingly being
used to help support CO 2 emissions reduction plans and targets for LIXIL and its customers.
Revia is a recyclable material that can be made from a combination of a variety of waste plastics and wood.Waste

6

Increased demand for
products that use low
carbon, eco-conscious
materials or resources

plastics include composite types that have previously been deemed difficult to recycle and consequently have been
incinerated or disposed of in landfills. By effectively using such waste plastics and wood waste it contributes to CO 2
emissions reduction by 82%. In January 2023, we launched revia pave as our first revia product. The revia pave
paving material has a wide range of applications from sidewalks to squares, parks, and building exteriors. We will
strive to reduce the amount of CO 2 emitted during thermal recovery, incineration and pollution by landfill by creating
an ecosystem that spans procurement, production, sales, installation and collection toestablish a sustainablebusiness model that encourages the recycling of waste plastics.
We are developing and marketing products and services that provide new options and broaden consumer
choices for sustainable living, such as resin window frames that have roughly three times the recycled content asconventional products, artificial wood decks that uses recycled plastic and recycled wood dust, and kitchen faucetsthat can be upgraded after purchase by simply replacing the spout with one that has a built-in water filter.
For more information: Circular Economy

Plastics Action Statement

Developed a New Recyclable Material Called “revia” Made From a Combination of Waste Plastic and Wood
Set a 100% Aluminum Recycling Rate Target for FYE2031 to Help Create a Carbon-Neutral, Circular Society. Newly Developed
our PremiAL Series of Low-carbon Aluminum Profiles that Help Greatly Reduce Scope 3 Emissions (Japanese only)
LIXIL Introduces PremiAL R100, Japan’s First 100% Recycled Aluminum Building Material for Pre-order (Japanese only)
The Taisei Group’s Next-generation Research Center is First to
Adopt Recycled Aluminum Building Material in Japan (Japanese only)
PremiAL R70, Made From Recycled Aluminum, First Used at Seven-Eleven Store in Japan (Japanese only)
LIXIL Revenue and Profit Decrease in FYE2024 Due to Sluggish Demand in International Markets

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 09

Key risks and opportunities

Strategic response
LIXIL is developing and marketing products that contribute to climate adaptation in addressing the increasing
frequency of natural disasters such as typhoons and torrential rains and higher rates of heatstroke from risingtemperatures. Such products include storm shutters that are easy to add-on to protect windows from high winds andflying debris during typhoons, Style Shade sun blinds that block strong sunlight on window exteriors, and the
Resilience Toilet, a public toilet that can be switched to one liter per flush instead of five helping to save water

Increased demand for7

products related todisaster preparation,
response, and recovery

during supply disruptions.
We are also promoting initiatives such as Think Heat, in which together with stakeholders, we explore theimportance of indoor temperature, which can cause heatstroke or heat shock, and the efficient use of heaters andair conditioners; and a disaster mitigation project to build homes that protect families from disasters.
For more information:
Climate Change Mitigation and Adaptation > Expanding Our Impact
Stakeholder Engagement > Think Heat
Disaster Mitigation Project: Build Homes That Protect Families (Japanese only)

Through water efficient products and solutions, LIXIL enables consumers to use water more efficiently andresponsibly, reducing daily consumption. LIXIL’ s water saving toilet and faucet products, and smart water controllers
aim to reduce a total of 2 billion cubic meters of water per year by FYE2025, globally.
Better homes also need clean and safe water — for showering, washing hands, or drinking. LIXIL is helping to enable
Increased demand for8

products that help
conserve water or
improve water quality

safer water for consumers and communities to tackle contamination by providing product solutions and promoting
behavior change.
LIXIL is also committed to advocating for more effective and responsible water policies: working with partners anddeveloping culturally and geographically relevant solutions, joining the conversation on water issues such as scarcity,
efficiency, safety and reuse.
For more information:
Water Sustainability > Expanding Our Impact

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 10

Transition Plan
Setting 2030 as a milestone, LIXIL is working on various measures to reduce CO 2 emissions across three phases: Our
Operations, Our Value Chain, and Expanding Our Impact. We undertake measures to cut Scope 1 and Scope 2 emissions in ouroperations, such as saving energy, converting to low-carbon fuels, and transitioning to and procuring renewable energy withadditionality, as well as staging demonstration tests on converting to hydrogen fuel at our production sites. In our value chain, we
focus on the use of our products and procurement, which account for the majority of our emissions. Along with reducing theenergy use of our products, we are also strengthening our efforts on cutting emissions in procurement and logistics throughsupplier engagement and in building circular ecosystems and business models.
In Japan, we have also set a target of reaching a 100% product ratio for energy- and water-saving faucets and toilets, as wellas high- performance windows for new detached houses. We are expanding our impact on mitigating climate change as well as
helping in the transition to a low-carbon society through products that improve energy efficiency in daily living.
Through its initiatives in tackling climate change, LIXIL not only fulfills its corporate social responsibility but also reduces risk
and captures business opportunities, creates new value through initiatives to maximize impact for sustainable growth.
In April 2024, LIXIL announced our transition plan toward a low-carbon society.

Transition Plan toward a Low-carbon Society (Refer to page 17 for mid-term targets for the phases below)
FYE2019 (BM)OUR OPERATIONS

CommonFYE2031

Energy saving
measures

Energy saving measures, production rationalization

Energyconversion

Electrification (low-temperature range: air conditioning, boilers, etc.),
conversion to low-carbon fuels (petroleum-based fuel to natural gas)

Scope 1
Innovativetechnology

Investigating and verifying decarbonization technologies that needs to be introduced going forward(fuel conversion to hydrogen, electrification, CCU, etc.)

Converting electricity to renewable energy
Scope 2

CommonRenewableenergyDesignLow-carbon
raw materials

Procurement
OUR VALUE CHAIN

FYE2023(introducing solar power generation equipment, trading renewable energy value)

Securing a stable supply of renewable energy power with considerationfor "additionality" and "business viability" through Power Purchase Agreements (PPAs)
Promoting circular design(reducing weight, extending life, using a single material, making disassembly and separation easier, etc.)

Improving the usage rate ofrecycled materials/renewable materials• Improve the usage ratio of recycled aluminum• Reduce single-use plastic packaging

Supplier engagement
Collaboration
Collaboration with suppliers to reduce

Transportation

Efficiency/
conversion

Improving conversion loading efficiency, modal shift

Office waste

Reduction/
circulation

Reducing and recycling waste generated

Product use

Energy saving
measures

Improving the energy-saving performance of products

Efficient use

Creation of business models that increase customer touch points (repairs, upgrades, services)

Development of recycling activities

Product disposal

EXPANDING OUR IMPACT

Circulation

Product use

Product disposal

Considering building a circulation system in collaboration with stakeholders

Insulation

Increase ratio of high-performance windows soldEnergy- andwater- saving

Increase ratio of energy- and water- saving faucets and toilets sold

ZEH conversion

Expand sales of ZEH products

Circulation

Utilize waste plastics that are difficult to recycle in products (recyclable material revia, etc.)

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 11

As part of our corporate responsibility and in minimizing transition risks, we created our specific, quantitative reduction plan
to manage Scope 1 and Scope 2 emissions. In our latest results, we were able to cut emissions by 34.7% in FYE2024 against
our mid-term target of a 50.4% cut by FYE2031*1, successfully exceeding our initial incremental linear reduction roadmap
ahead of schedule. Going forward, we will systematically reduce emissions to achieve our targets by continuing our efforts instreamlining production processes and cut energy consumption; and expanding economically rational renewable energy
procurement with additionality.
Beyond achieving our mid-term targets, we are also aiming to reach net-zero CO2 emissions by 2050, by working on
innovations such as hydrogen fuel conversion and CCU technology to separate, capture and effectively utilize carbon. We haveinitiated surveys and studies with the aim of putting them to practical use after 2030. LIXIL is systematically carrying out themeasures and actions outlined in the plan, while it prepares to seamlessly carry out further reduction initiatives after achieving
mid-term targets until 2050.
*1 with FYE2019 as baseline

Scope 1, 2 CO 2 Emissions

Progress

Mid-term target

FYE2024

34.7%

FYE203150.4 %
Energy saving
measures,production
rationalization

FYE2019

Conversion
fromelectricity
to renewableenergyFYE2023

Energyconversion
Electrificationand fuel
conversion

FYE2031(baseline)

2.2 Analysis of Nature-related dependencies and impacts

TNFD

In line with the LEAP approach recommended by the TNFD, LIXIL identified its dependencies and impacts on nature, itspriority locations of direct operations and upstream value chain for raw materials such as aluminum and wood to assess its
nature-related risks and opportunities.
The following items are based on TNFD’ s recommended disclosures on Strategy A, B, C, and D and on Risk and Impact
Management A.
STRATEGY
A. Identify short- to mid-term dependencies, impacts, risks and opportunities
B. Effect of nature-related risks and opportunities on the organization
C. Resilience of the organization’s strategy
D. Prioritize sensitive locations

RISK AND IMPACT MANAGEMENT
A (i) Assessment process(direct operations)
A (ii) Assessment process(upstream value chain)

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 12

2.2.1 Determining the Scope of Analysis (Locate Phase)To narrow down the scope of the analysis, we identified our value chains and the raw materials we use for each businesssegment. Across our water and housing technology businesses, and for processes across our value chain, we looked into raw
materials that fall under the Science Based Targets Network High Impact Commodity List, and used the ENCORE tool to identify
and assess degrees of dependency and impact on nature. As a result of our analysis we found high dependencies and impacts
from upstream value chain and direct operations; and metals with the highest impact, and wood with the highest dependency onnature. Based on our findings, we narrowed down our scope of analysis to upstream value chain and direct operations, and foraluminum, the metal procured in the largest quantities, along with wood as raw materials.

Dependency and Impact by Raw Material
ImpactMetalssand, clay,
plaster, lime,
aggregate, cement,
concrete, brick

Wood

Dependency

2.2.2 Locating the Interface with Nature (Locate Phase)
LIXIL conducted an assessment of sensitive locations for all 83 locations of direct operations as well as for upstream locationsof activities for aluminum and wood, to identify where LIXIL’ s business activities interface with nature. This was carried out using
databases that follow the five assessment criteria set by TNFD.
Additionally, LIXIL has long recognized water as an important resource in its business activities, setting more stringent
assessment criteria for water risks in direct operations. Consequently, we assessed water shortage and water quality risks, andidentified seven additional locations at risk of water shortage.
For areas assessed as sensitive locations, we identified their biomes and used their information in the dependency and impact
assessments in the Evaluate phase. Based on the results of the later Evaluate and Assess phases of the analysis, we found that
there are critical dependencies and impacts on nature, and nature-related risks and opportunities in the sensitive locations we
identified during the Locate phase. We also confirmed that all these locations meet the assessment criteria given below and fallunder priority locations for TNFD’s Strategy D disclosure.

Five assessment criteria for sensitive locations:
1. Areas important for biodiversity
2. Areas of high biodiversity integrity
3. Areas of rapid decline in ecosystem integrity
4. Areas of high physical water risks
5. Areas of importance for ecosystem services, including benefits to indigenous peoples, local communities, and stakeholders
Databases used: For identifying sensitive locations: IBAT (Key Biodiversity Areas, IUCN Red List of Threatened Species, STAR Threat Abatement and Restoration
Scores), WWF Water Risk Filter, Biodiversity Intactness Index, and Critical Natural Asset Layers
For identifying biomes: IUCN Global Ecosystem Typology

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 13

2.2.3 Identifying Dependencies and Impacts (Evaluate Phase)
Nature-related risks and opportunities arise from the dependencies and impacts on nature of our business activities. To
identify our dependencies and impacts, we used ENCORE and added a literature review to carry out a qualitative assessment. Ourassessment revealed that aluminum has a large impact on nature during the mining and processing of raw materials, while woodis heavily dependent on the natural capital of forests where the raw materials are logged. We summarized the relationshipbetween dependencies and impacts on natural capital and LIXIL’s business activities on the flowchart below.

Relationship between Dependencies and Impacts on Natural Capital and LIXIL’s BusinessAluminum

Wood

Provisioning Services

Resource use★Biomass provisioning★Water supply★Water use

Climate Change

Provisioning Services★Mining of minerals

Regulating Services★GHG emissions★Flood Mitigation★Storm Mitigation★Soil and Sediment Retention★Global climate Regulation(and Other provisioning services)

Pollution★WasteDependency

Impacts

Resource use★Land use Change

Dependency

Impacts

Natural Capital (TNFD Environmental Assets)
Terrestrial (land based)
ecosystems

Mineral andenergy sources

Land

Water Resources

Atmospheric Systems★Ecosystem Services ★Impact Drivers

Flowchart of Dependencies and Impacts

LIXIL’s Impact Drivers

Ecosystem Services

Natural Capital(Environmental Assets)

Production Sites

Production Sites

Aluminum★Large amounts of Water
used in cooling and cleaning
during manufacturing

Pollution★Dust and hazardous pollutants
generated in smelting andprocessing of aluminum resources

Wood

Mineral andenergy sources
ChangeChangeLand

External Drivers of Change

Impact

LIXIL’sBusiness Activities

Wood
Provisioning Services★Wood used in products

Dependency
Risks★Water resources for forests

Atmospheric
Systems

Resource Use★Change of terrestrial
ecosystems due to lumbering

Provisioning Services★Minerals needed for
Aluminum production

Climate Change★GHG emitted during mining

Aluminum

Terrestrial(land based)
ecosystems

Resource UseRegulating Services★Green Infrastructure for
Flood and Storm Mitigation★Soil regulation

Water Resources

Local Community,
etc.

★Climate regulation,
Humidity retention

Impact
Risks

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 14

2.2.4 Identiﬁcation of Key Risks and Opportunities (Assess Phase)
To identify nature-related risks over the mid- to long-term from the summarized relationships between dependencies andimpacts on nature and LIXIL’s business activities, we used the flowchart we created in the Evaluate phase showing dependencies
and impacts of each environmental asset as well as a risk database called RepRisk, and created a long list of risks. To establish
the scenario, we set the time horizon to 2030 and assumed the case for TNFD’ s Scenario #2 shown below. This scenario is thenreflected in each value chain, considering the type and location of our businesses. We identified key risks to prioritize fromamong the exhaustive list of risks we collected. We studied the identified risks from the perspective of risk avoidance, andidentified key opportunities after a broad search and review of the types of opportunity in the TNFD and information from othersources.

Impact from Loss of
Nature is moderate,
but public attention is high,and forces are aligned

Moderate andIncremental

Ecosystem service

Impacts #3
Impact from Loss of
Nature is moderate,
public attention is low,

Assumedprobable Scenario

highImpacts #1

Alignment of market and non-market forces

Assumed Scenario

Impact from Loss of
Nature is serious,
public attention is high,and forces are aligned(

degradation Physicalrisk)

Fast and Severe

Impacts #4
Impact from Loss of
Nature is serious,
public attention is low,
forces are not fragmented

Low

and forces are fragmented

Impacts #2

Key Risks and Opportunities

PHYSICAL RISKS

Key risk/opportunity

Adverse impact

Response measures

Worsening damage to production
infrastructure due to extreme
weather events caused by climatechange・Global climate regulation
・Greenhouse gas
emissions・Mitigation of damage fromtyphoons and floods
・Soil and sediment retention➡ Strategic
response 3
on p. 08 2.1.c・Water supply

Chronic

Reduced water resources forcooling and cleaning due torestrictions on water withdrawal
caused by droughts

・Greenhouse gas
emissions➡ Strategic
response 4
on p. 08 2.1.c

Reduced water resources forcooling and cleaning due toexcessive water withdrawal andwater pollution from surrounding
industrial activities and others

・Water supply

・Water use
・Water pollutants➡ Strategic
response 4
on p. 08 2.1.c

DirectChronic

TRANSITION RISKS

Dependency

Acute

operations

OPPORTUNITIESDescription

Non-compliance with new orstricter environmental legislation
at LIXIL factories

Policyand legal

Resource
efficiency,
products andservices

DirectStable procurement and better
resource efficiency throughincreasing usage rate of recycledmaterials and water reuse rate

Details given below
・Soil pollutants・Greenhouse gas emissions
・Water pollutants・Air pollution
・Changes in terrestrial
ecosystem use

N/A・Mineral resources for mining(Other provisioning services)・Biomass supply
・Water supply

・Use of resources
・Water use
・Changes in terrestrial
ecosystem use➡ Strategic
response 4 & 6
on p. 08-09
2.1.c

・Use of resources
・Changes in terrestrial
ecosystem use➡ Strategic
response 6
on p. 09 2.1.c

operations
Reputation

Growing appreciation ofsustainable resources due tochanges in consumer preferences

N/A

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 15

Response measures to transition risks
LIXIL established the LIXIL Environmental Sustainability Principles that apply to all employees and all company officers,
including directors and executive officers, in order to ensure the steady continuation of our business activities even as
environmental regulations become stricter. The principles include our commitment to “continually improve environmental
management systems and performance” and “adhere to rigorous compliance.”
To reflect and enact these principles in our business activities, we set up an internal environmental auditing system that
includes all production bases, non-production bases in Japan, and consolidated subsidiaries. At production sites, we regularly
assess the effectiveness of our environmental management systems and legal compliance through internal audits in accordancewith ISO 14001 standards. These audits include improving the efficiency of our energy and water consumption, reducing waste,
recycling, and properly managing our hazardous waste and air pollutants, using environmental management systems under ISO
14001.
We also conduct internal audits at non-production bases and consolidated subsidiaries in Japan based on our own
ISO-compliant environmental management system and are gradually widening the coverage of our audits. For matters identified
through internal auditing, we take steps to improve the situation and follow up on their progress to facilitate effective operationsof our management systems. Furthermore, LIXIL has introduced a system where the environmental management department at
headquarters conducts internal audits of environmental managers at business units since FYE2018.

3. Risk and Impact Management

TC FD

TNFD

a. Processes for Identifying and Assessing Climate-, Natural Capital-, and Biodiversity-related Risks
and Opportunities
LIXIL identifies significant climate-, natural capital-, and biodiversity-related risks and opportunities, and assesses theirimpact on its business by conducting analyses based on both the TCFD and TNFD recommendations under the direction of theEnvironmental Strategy Council. All the identified transition risks and physical risks are also linked to our business risks (strategicrisks and operational risks) and checked against our company-wide risk assessment criteria (degree of impact on businessplanning and possibility of occurrence). LIXIL’ s management determines the priority of risks to be addressed, based on the sizeof the group businesses, changes of external factors, and inter-relationships between risks.

b. Processes for Managing Climate-, Natural Capital-, and Biodiversity-related Risks and Opportunities
LIXIL avoids risks through the establishment of a system of continuous improvement, starting from evaluating the relative
importance of each risk and in planning, implementing and monitoring measures to address such risks at every level of theorganization. For climate-, natural capital-, and biodiversity-related transition risks and opportunities in particular, we have beendeveloping processes to integrate such risks and opportunities into our environmental strategy, setting environmental targets andaction plans, implementing and promoting measures to improve environmental performance and manage risks, while at the sametime monitoring, overseeing and reviewing its progress.

c. Integrating Processes into Overall Risk Management
We are integrating these processes into overall risk management of the entire group by linking climate-, natural capital-, andbiodiversity-related transition risks and physical risks to the strategic risk business related strategic and operational risks. We
regularly monitor the strategic and operational risks and implement risk mitigation measures at every level of our business.
Moreover, members of the Audit Committee monitor the effectiveness of the measures to address high-priority risks through their
participation in meetings with the Board of Directors and other committees.
For more information: Management Strategy & Structure > Business Risks

Corporate Governance > Risk Management

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 16

4. Metrics and Targets

TC FD

TNFD

a. Targets Used to Assess Climate-, Natural Capital, and Biodiversity-related Risks and Opportunities
The LIXIL Environmental Vision “Zero Carbon and Circular Living” declares our commitment to achieve net-zero carbon
emissions from our operations, products and services by 2050.
In FYE2022, made an upward revision for our 2030 emissions reduction targets that we set in our Environmental Vision fromthe SBTi’ s level of 2ºC to 1.5℃. By FYE 2031, we set new targets to reducing 50.4% Scope 1 & 2 CO2 emissions and 30%
Scope 3 emissions. At the same time, while not part of our SBT boundaries, we expanded our lineup of environmentallyconscious products that help reduce energy and water use in homes and buildings, and added targets to expanding our productratio of energy- and water-saving faucets and toilets, and high-performance windows for new detached houses to 100% in Japan,
to serve as metrics in assessing climate-related opportunities and in achieving sustainable growth.
In FYE2023, we renewed our SBTi certification for our 2030 medium-term CO2 reduction targets*1, aligning them with the
SBTi’s new ambition level of 1.5ºC. We also set some mid-term water- and resource-related targets for 2030.
In FYE2024, LIXIL became the first Japanese building products company to receive SBTi approval for its long-term target ofachieving net-zero CO2 emissions by 2050. Following the SBTi’ s Corporate Net-Zero Standard, we will work to cut Scope 1& 2,
and Scope 3 greenhouse gas emissions by 90% reduction in Scope 1, 2, and 3 greenhouse gas emissions by 2050, with up to
10% residual emissions reduced to zero through carbon removal.
*1 with FYE2019 as baseline. SBTi-approved near-term commitment

Medium-term Targets

Indicators

Scope 1 & 2 CO2 emissions

Scope 3 CO2 emissions

Targets

Reduce by 50% by FYE2031(vs. FYE2019)
Reduce by 30% by FYE2031(vs. FYE2019)

Risks
Water use efficiency

Waste recycling rates

Ratio of number of high-performance windows
sold for new detached houses (Japan)
Ratio of number of energy and water-saving
faucets and water-saving toilets sold (Japan)

Improve by 20% by FYE2031(vs. FYE2019)

Improve by 90% by FYE2026

100% by FYE2026

100% by FYE2031

Opportunities
Total water savings from water-saving products

2 billion m3 per year by FYE2025

Ratio of used recycled aluminum

100% by FYE2031

For more information: Impact Strategy

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 17

b. Metrics Used to Assess Climate-, Nature-, and Biodiversity-related Dependencies and Impacts TC FD

TNFDTNFD Disclosure Metrics (Dependency/Impact) - Direct Operations
Metric No.

Impact drivers

Indicators−

Climate change

GHG emissions

C2.1

Pollution/
pollution removal

Wastewater discharged

C2.2

Pollution/
pollution removal

Waste generation and disposal

Waste emissions by method of waste disposal*1

C2.3

Pollution/
pollution removal

Plastic pollution

Plastic waste generated (in Japan) (Japanese only)

C2.4

Pollution/
pollution removal

Non-GHG air pollutantsNox, SOx, soot and dust emissions*1

C3.0

Resource use/
replenishment

Water withdrawal and consumption
from areas of water scarcity

Water withdrawal in water-scarce areas

A3.0

Resource use/
replenishment

Total water consumption and withdrawal

Consumption and water withdrawal*1

A3.2

Resource use/
replenishment

Water reduced, reused or recycled

Disclosure

CO2 emissions*1
Discharge*1

Improvement in water use efficiency rate andrecycled water volume*1

TNFD Disclosure Metrics (Dependency/Impact) - Upstream Value Chain
Metric No.

Impact drivers

Indicators

C3.1

Resource use/
replenishment

Quantity of high-risk naturalcommodities sourced
from land/ocean/freshwater

Disclosure*1

Procured weights of wood and aluminum

TNFD Disclosure Metrics (Response) - Upstream Value Chain
Metric No.

Category

MetricA23.1

Changes to nature(dependency andimpact): Mitigation
hierarchy steps

Rate of reuse and recycling ofi) waste orii) product/material outflows (%)

Waste recycling ratios

A23.4

Changes to nature(dependency andimpact): Mitigation
hierarchy steps

Circular material use rate (%)

Ratio of recycled aluminum use

Disclosure*1*1 Disclosed in the ESG Databookc. Performance on Metrics Used to Assess
Climate-, Nature-, and Biodiversity-related Risks and Opportunities

TC FD

TNFD

For Scope 1, 2, and 3 CO 2 emissions, we obtain third-party assurance for our performance in key categories, including
emissions, water usage and waste emissions for disclosure.
Additional TNFD disclosure metrics will be applied to strengthen and enhance management of our risks and opportunities.

Disclosure Report in Response to TNFD and TCFD Recommendations ｜ 18