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Governance
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and Productivity Improvement

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6. Responding to Climate Change (Addressing the TCFD Recommendations)
Nissha Group publicly endorsed the recommendations made by
the Task Force on Climate-related Financial Disclosures (TCFD) in
January 2022. Since then, we have been analyzing the financial
impact of risks and opportunities related to climate change on
our Groupʼs businesses using the framework of the TCFD recommendations, and disclosing the results.

Materialities (Key Issues) Management

General Risks Management• Materialities (key issues) are identified through deliberation and resolution by the Board of Directors meeting and managed by the Sustainability
Committee which is chaired by the Chairman of the Board, President andCEO and vice-chaired by the Director of the Board, Senior Executive Vice
President (in charge of ESG Promotion).

• Risks that would hinder smooth business operations are managed by
the Risk Management and Compliance Committee, which is chaired by
the Senior Executive Vice President (in charge of legal affairs).

• The Sustainability Committee manages the identified materialities. The
ESG Task Force has been set up to promote the theme of “responding toclimate change,” which is considered particularly important from the ESG
perspective.

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Governance

The Nissha Group manages its response to climate change by
distinguishing between materiality (risks and opportunities related to the realization of our Sustainability Vision), which arematerial issues for the Group, and general risks (risks related tosmooth business operations).
The governance and promotion structure for materialities andgeneral risks are as shown below.

• In addition to setting KPIs and Action Items and reporting progress to the
Sustainability Committee, the ESG Task Force discusses the companyʼs responses to climate change with the Board (excluding independent outside
directors, but including the President) on a half-yearly basis.
• The Board of Directors supervises the activities of the Sustainability Committee, which manages items related to materialities (KPIs, Action Items).
It deliberates on the contents of the Committeeʼs report once a year, andgives instructions for improvements as necessary.
• The President makes important strategic and financial decisions concerning our responses to climate change within the scope of his authority. To
help them make decisions appropriately, the President and the Senior
Executive Vice President (in charge of ESG Promotion) learn about climatechange through study sessions and training by outside experts.

• The Risk Management and Compliance Committee centrally manages
risks. It assesses risks and selects key risks. One of the key risks, BusinessContinuity (natural disasters such as earthquakes, typhoons, and floods)
encompasses climate change-related risks, and the Business Continuity
Management Subcommittee takes charge of moving ahead with this.
• The Business Continuity Management Subcommittee sets KPIs andAction Items, and promotes measures for reducing risks. It formulates
and updates response plans for preparing for or dealing with emergency
situations in the event of a natural disaster, and reports on progress to
the Risk Management and Compliance Committee.
• The Board of Directors supervises the activities of the Risk Management
and Compliance Committee, which manages key risks that include
climate change-related risks. It deliberates on the contents of the Committeeʼs report once a year, and gives instructions for improvements asnecessary.

• Introduced stock-based compensation * as mid- to long-term performance-linked compensation for directors (excluding independent outside
directors) and corporate officers. One of the indicators for the mid-termtarget is the degree of progress to the total CO2 emissions reduction target.
*About stock-based compensation- Points are awarded based on the degree of achievement of mid-term targets and the consolidated performance target for each fiscal year over the three-year period of Nissha ʼs Medium-term Business Plans.
- On a set date in the final fiscal year of each Medium-term Business Plan, points are confirmed, and Nissha shares and money equivalent to Nissha shares converted at the market price are granted.

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In the Nissha Group, the departments responsible for promoting
the Sustainability Committeeʼs materialities (business divisions,lead departments, ESG Task Force) and the departments thatmanage risk for the Risk Management and Compliance Committee (business divisions, lead departments, subcommittees) workwith the various departments (corporate management departments, business development divisions, business divisions) at the
Head Office and with Group companies in Japan and overseas
on formulating measures, thus working on reducing general risks
and achieving the materialities, including climate change.

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
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Board of Directors
Supervise
Approve materiality

ReportReportSupervise

Sustainability Committee

Risk Management and Compliance Committee

Management of Materialities (Key Issues)

Management of General risks

Committee Chair

Committee Chair

Vice Chair

Secretariat(President)(Director of the Board, Senior Executive Vice President, Legal Affairs)(Director of the Board, Senior Executive Vice President, ESG Promotion)(Corporate Legal Affairs and Global Integration Planning Departments)

Secretariat(ESG Promotion Department)

Creating
Business
Opportunities(Businessdivisions)

Risk
Reduction(Lead
Departments)

Strengthening
Management
Foundation(Lead
Departments)

Corporate
GovernanceBusiness divisions, lead departments,and subcommittees that manage risks(Lead
Departments)

ESG Task Force

ReportInstruction / Supervise

ReportInstruction / Supervise

Head Office
Corporate
Management
Departments

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Development
Divisions

Nissha Group in Japan

Nissha Group in Overseas

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Fair Operating Practices/ Local Communities*3.RCP4.5: a scenario in which CO 2 emissions peak in 2040 and stable economic

Strategydevelopment is achieved.
*4. RCP8.5: a scenario in which CO2 emissions continuously increase and uneven economic
development is achieved.

We have conducted a scenario analysis of the impact of futureclimate change on our business operations, using a range of scenarios of projected environmental change, based on the framework recommended by the TCFD.

Temperature rise in 2100 under each scenarioof the Nissha Group (Industrial Materials, Devices, Medical
Technologies)‒ Scenario analysis time horizon: Study transition risks andphysical risks and opportunities in the short term (1-2 years),
medium term (3-5 years), and long term (6-10 years)‒ Assumed scenario: See IEA's Net Zero Emissions by 2050
(NZE)*1, Stated Policies Scenario (STEPS)*2, IPCC's RCP4.5*3
and RCP8.5*4, etc. scenarios*1.NZE: a scenario in which the world decarbonizes and achieves virtually zero
scenario ” because the averagetemperature increase as of 2100, compared to pre-industrial times, will be
between 1.3 and 1.5 .
*2.STEPS: a scenario in which countries implement their stated current specificpolicies on decarbonization and no additional decarbonization-related policies
are introduced. It is called the “ 3scenario ” because the average temperature

increase as of 2100, compared to pre-industrial times, will be between 2.4 and2.8 .

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parameters in each scenario, and the results are described
below as “magnitude of risk” and “magnitude of the opportunity.”)(iv) Consider countermeasures (adaptation, mitigation)(3) Results of risk analysis

Source: created internally based on the IEA World Energy Outlook, 2021

‒ Scenario analysis target business: Three main businesses

CO 2 emissions in 2050. It is called the “ 1.5

Quality Management / Efficiency
and Productivity Improvement

Our transition and physical risks related to climate change, andthe magnitude of the risks in each scenario, as well as our response to these risks are analyzed and considered as shown in
the table below for the set time horizon.

The Medical Technologies business has now been added to theanalysis, so all three of the major businesses of Nissha are now
covered. We also analyzed the impact of future climate change
on our business on a time horizon of 1 to 2 years in the shortterm, 3 to 5 years in the medium term, and 6 to 10 years in thelong term, including the Sustainability Vision, and we considered
measures to respond to these impacts.
(1) Scenario analysis assumptions

Governance

Under the two scenarios referenced from the IEA, we believe that
we can visualize many climate change-related risks and opportunities by using the 1.5 °C scenario in which regulations are tightened and zero CO2 emissions are achieved by 2050, and the 3°C
scenario in which no additional policies are introduced and climatechange measures do not progress.
(2) Scenario analysis process
Scenario analysis was conducted using the following process:(i) Consider significant climate-related risks and opportunities for three main businesses(ii) Consider and create scenarios as preconditions for evaluation(iii) Assess risks and opportunities based on the scenarios(Risks and opportunities are assessed by calculating andevaluating the "financial impact" as of 2030 using the

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Results of risk analysis
Type

Changes in the external environment

Introduction of a carbon tax

TargetbusinessTimehorizonRisks to Nissha

Policies/laws and regulations

Increase in production and countermeasure costs due to carbon taxation on CO2 emissions
Industrial Materials
Medium to
Deviceslong-term
Medical Technologies
Increase in the cost of procuring raw materials needed to produce
products due to the carbon taxes

Industrial Materials
Increase in electricity procurement costs due to switch to renewable
Devices
Changes in national carbon emission Medical Technologies Medium to energy sources for electricity and soaring levies, etc.
long-term
targets and policies
Cost of reducing CO2 emissions in logistics (procurement and shipping)
Devicesincreases

Risk magnitude*1,2
3℃
1.5℃
Small

Medium

Small

Small

-

Small

Industries and Markets

Transition risk

Medium to Increase in the cost of procuring raw materials needed to produce
long-term products due to the progression of plastics-related regulations‐

Introduction of CFC regulations

Devices

Medium to Restrictions on use of specified CFCs and their substitutes used atlong-term production bases increase capital investment costs

Small

Fluctuations in raw material prices

Industrial Materials

Increase in petrochemical material costs due to changes in crude oil
MediumMedium to demand
long-term‐
Increase in raw material costs due to increased use of reprocessed plastic

Increase in EV sales

Industrial Materials

Changes in customer behavior(increase in requests from customers Devices
to reduce CO2 emissions)Short tomediumterm

Net sales decline due to lost business opportunities caused by insufficient
responses to customer requests

Technologies

Transition to materials and technoloDevices
gies with lower environmental impact

Reputation

Costs increase due to replacing product packaging materials

Growing importance of ESG assessDevices
ment in customersʼ supplier selection

Mediumterm

logical trends and develop products‒ Adaptation Improve purchasing power through global procurement‒ Mitigation Introduce energy-saving production equipment‒ Mitigation Reduce electricity consumption‒ Mitigation Consider the introduction of solar and wind power generation facilities‒ Adaptation Study trends in the logistics industry and consider shifting to transportation methods that emit

less CO2‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-

Industrial Materials

Decrease in sales opportunities for EV-related products due to changes
in market structure‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-‐

Introduction of plastic tax

Short tolong-term

Adaption / Mitigation measures‒ Mitigation Switch to renewable energy sources at production sites
Medium ‒ Mitigation Introduce energy-saving production equipment‒ Mitigation Review productivity and efficiency in the production processes

Smalllogical trends and develop products‒ Adaptation Further promote the development of the ecosense molding brand of sustainable molded products orient-

ed toward the elimination and reduction of plastic, and increase the sales ratio of sustainable materials

Small

Medium ‒ Adaptation Research technology trends to enable compliance with CFC regulations
‐

Small
‐

Small

Medium‐Small‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-

logical trends and develop products‒ Adaptation Further promote the development of the ecosense molding brand of sustainable molded products orient-

ed toward the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Adaptation Promote product development and enhance production facilities in response to market trends

for next-generation vehicles other than Evs‒ Mitigation Conserve energy through improved productivity and reduce CO2 emissions through switch torenewable energy‒ Adaptation Investigate alternative materials that can reduce costs while maintaining the quality of packag-

ing materials

Net sales decline due to substituting our products for low-carbon prodMedium Medium ‒ Adaptation Develop low-carbon products with lower environmental impact
ucts made by other companies
Net sales decline due to lost business opportunities resulting from delays
Medium Medium ‒ Adaptation Promote the development of low-carbon technologies
in the development of low-carbon technologies

Short tomediumterm

ESG assessment declines due to delays in addressing climate-related issues, and we are not chosen as a supplier resulting in a decline in net sales

Small‒ Adaptation Enhance climate change initiatives and disclose information appropriately

Small

Small

‒ Adaptation Improve and strengthen BCP, and establish a system to support affected sites‒ Adaptation Build a supply chain for stable procurement, including multi-company purchasing and out-

‒ Decline in net sales due to production delays or suspensions resulting

Acute

Physical risks‐

Intensification of extreme weather*3

Industrial Materials
Devices

Short tolong-termfrom damage to production bases, and incidence of repair costs due todamage to company assets such as buildings, facilities, and inventory‒ Decline in the companyʼs net sales due to the impact of the suspensionof the supply of raw materials and parts due to disasters at suppliers

sourced production of raw materials at multiple factories and lines*1. Risk magnitude evaluation horizon: Changes in net sales Large: 20 billion yen or more, medium: 5 to 20 billion yen, small: less than 5 billion yen / Operating profit/loss: Large: 3 billion yen or more, medium: 1 to 3 billion yen, small: less than 1 billion yen*2. Scenarios in which no risks are incurred are indicated with a “-”*3. For physical risks, hazard maps were created for the key production bases for each business (30 locations) and AQUEDUCT was used to carry out surveys. The financial impact on bases where risks had been identified was evaluated by considering the frequency of occurrence.

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Based on the above analysis, no significant and hard-to-handle risks associated with climate change
were identified at this stage in our three main businesses. The following risks associated with climatechange are applicable to multiple businesses and will have a relatively large impact on our business.

As a measure to address (ii), in the Industrial Materials business, we are investigating technologicaltrends, examining the use of biomass PET and other biomass plastics and recycled plastics, and developing products to reduce the use of virgin plastics.

[Transition risk](i) Increase in production and countermeasure costs due to carbon taxation on CO2 emissions (1.5°
C scenario)(ii) Increase in the cost of procuring raw materials needed to produce products due to the carbon
taxes (1.5°C scenario)[Physical risks]No physical risks have been identified at this stage.

As a measure to address (i), we are promoting the switch to renewable electricity at our production
bases. Our main production bases in Japan, Nissha Industries, Inc. Koka Factory and Nissha Precision and Technologies, Inc. Himeji Factory and Kaga Factory have already made the switch to 100%
renewable electricity. At overseas bases, Nissha (Kunshan) Precision IMD Mold Co., Ltd. (China), a
production base for the Industrial Materials business, has continued to generate solar power, andNissha Metallizing Solutions (Belgium) has replaced part of its electricity with solar and wind power
at its production bases. In addition, we are working to reduce power consumption by streamlining
production and saving energy in production and infrastructure facilities. We will continue to promotemeasures while verifying the cost and effectiveness of such measures.

The Nissha Group has taken measures to address risks that we believe have a relatively large impact with respect to climate change in our three main businesses, and we consider ourselves to have climate resilience.
We will continue to monitor trends in the business environment under the 1.5°C and 3°C scenariosand develop our business strategically.
(4) Results of opportunity analysis
Based on our awareness that solving social issues related to climate change will create our business
opportunities, we have analyzed and examined the magnitude of the opportunities in each scenario
and our response to these opportunities in the time horizon we have set, as shown in the table below.

Results of opportunity analysis
Type

Products and Services

Target businessTimehorizonIndustrial Materials
Devices

Medium tolong-term

Expansion of demand for products that contribute to GHG emission
reductions

Industrial Materials

Medium tolong-term

Increase in sales opportunities for plant-derived sustainable molded
products due to the progression of plastics-related regulations

Industrial Materials
Devices

Short tolong-term

Increase in sales opportunities for EV-related products due to changes inmarket structure

Industrial Materials

Medium tolong-term

Increase in sales opportunities due to increased demand for sustainable
molded products as a result of the lower costs of plant-derived plastics

Devices

Mediumterm

Changes into theexternal environment
Carbon price
Changes in national
carbon emission
targets and policies
Increase in EV sales
Fluctuations in raw
material prices
Arrival of a hydrogenbased society

Opportunities to Nissha

Demand for Fuel Cell Vehicles (FCVs) expands

Opportunity magnitude*1,2
3℃

1.5℃

MediumMedium

Small
Small

Small
Small
Small
Small

Countermeasures‒ Develop and expand sales of products that contribute to GHG emission reductions (highly recyclable decorative

film moldings, gas sensor modules for refrigerant detection, etc.)‒ Further promote the development of the ecosense molding brand of sustainable molded products oriented toward

the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Develop and expand sales of new products for EVs (decorative film molded products and functional products forexteriors, touch sensors, etc.)‒ Further promote the development of the ecosense molding brand of sustainable molded products oriented toward

the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Develop and expand sales of products for the mobility market (such as hydrogen detectors) that contribute to

reducing our environmental impact*1. Opportunity magnitude evaluation horizon: Changes in net sales Large: 20 billion yen or more, medium: 5 to 20 billion yen, small: less than 5 billion yen / Operating profit/loss: Large: 3 billion yen or more, medium: 1 to 3 billion yen, small: less than 1 billion yen*2. Scenarios in which no opportunities are incurred are indicated with a “-”

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The following climate change opportunities are applicable to multiple businesses and have a relatively large impact on our business.
［Opportunities in transition risks］(i) Expansion of demand for products that contribute to GHG emission reductions(ii) Increase in sales opportunities for EV-related products due to changes in market structure
As a measure to address (i), the Industrial Materials business aims to expand sales of existing decorative films and molded products for mobility and consumer electrical appliances. The Nissha Group's
decorative films and molded products contribute to the reduction and control of GHG emissions byadding patterns and functions at the same time they are molded to eliminate the need for secondary decoration processes after molding, as well as by building an optimal supply chain for customers
from seven molding bases located around the world. We also aim to create products with even lower
environmental impact by undertaking recyclability studies and conducting Life Cycle Assessments(LCA) for each product to quantitatively evaluate the environmental impact.
In the Devices business, we are aiming to expand sales of gas sensor modules that can detect next-generation refrigerants produced by Nissha FIS. Although the next-generation refrigerants used in air conditioning and refrigeration units today have low ozone depletion potential, leak detection is necessary as
they are mildly flammable and have an extremely high greenhouse effect. We believe that our Group's
gas sensors can contribute to both safety and the prevention of global warming, and we aim to increase
our net sales by expanding our sales region to include North America and other overseas markets.
As a measure to address (ii), we have identified the expansion of products targeting the mobility
market as one of the priority markets for achieving our Sustainability Vision, and we are working toenhance EV-related products as a measure to address climate change.
The Industrial Materials business aims to expand sales of exterior decorative and functional products. For EVs that do not require engine cooling, there is a growing need to decorate the front as avehicle face design to replace the front grille, as well as a need to add functions to ensure the proper
operation of automatic driving radars in this area. In addition, there is a need for a heating function
to melt snowing sticking on headlights and front grilles.
The Devices business aims to expand sales of touch sensors for curved surfaces and large displays. Our
touch sensors are made from film-based material which provides high visibility and a narrow frame
while being thin, light, unbreakable, and bendable. In line with the growing demand for designs fornext-generation vehicles, a variety of touch sensors that leverage these features are required for EVs.

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We aim to expand net sales by developing new products that meet these EV needs to expand our product lineup. We intend to reflect our scenario analysis results in our business strategy, such as the growing demand for products that contribute to reducing GHG emissions and the expanding EV market.

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Risk Management

The Nissha Group manages its climate change risks by distinguishing between materialities (risks andopportunities related to the realization of the Groupʼs sustainability vision), which are material issues
for the Group, and general risks (risks related to smooth business operations) and by the Sustainability Committee and the Risk Management and Compliance Committee assessing and managing eachof these risks in accordance with the following process.
In particular, for the risks associated with climate change, we conduct scenario analysis for eachbusiness. We extract transition risks and physical risks, evaluate the timing of risk occurrence and theimpact on finances for each scenario, and consider risk adaptation and mitigation measures.
Refer to 6-2 Strategy■ Risk Management by the Sustainability Committee
The Group has set out where it wants to be in terms of management by 2030 in the form of ourSustainability Vision (long-term vision). We are aiming to create social value by providing products
and services that contribute to solving social issues, and to achieve a 30% reduction in total CO 2
emissions in 2030 (compared to 2020) with a view to carbon-neutral by 2050. And to realize theSustainability Vision, we have identified items of particular importance as materialities.
The Nissha Group evaluates social issues from the perspectives of Creating Business Opportunities, Risk
Reduction, Strengthening Management Foundation, and Corporate Governance using the two axes of“importance to society and stakeholders”, and “importance to Nissha (i.e. importance for achieving our
Sustainability Vision)”. The identified social issues are prioritized by the Sustainability Committee, andmaterialities are identified through deliberations and resolutions by the Board of Directors.
We have identified the following material issues relating to climate change from the perspectives ofCreating Business Opportunities and Risk Reduction.

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Materiality
Risk reduction

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Related SDGs

Responding to climate change

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work to reduce risk in business activities. Through these processes, key risks that include those associated with climate change are selected at the general meeting of the Risk Management and Compliance Committee.

■ Risk Assessments
Contribute to the safety and comfort of transportation
Creating businessand logistics, and the reduction of environmental impact

opportunities
Promotion of circular economy（1） Target bases‒ All Group companies in Japan‒ 55 Group companies overseas (Including when major overseas subsidiaries and their own

subsidiaries have been evaluated)（2） Target risks

The ESG Task Force works based on KPIs and Action Items approved by the Sustainability Committee.
It reports on its activities once per half year to Nisshaʼs internal directors, including the President, todebate the necessary actions.
Activities related to creating business opportunities are handled by the business divisions. The business divisions report to the Chairman of the Board, President and CEO at monthly meetings (business
reviews), at which the Chairman of the Board, President and CEO confirms the progress of businessstrategies based on key performance indicators and gives instructions on necessary action.
The Sustainability Committee reports its activities annually to the Board of Directors, and the Boardof Directors utilizes the contents of the report to formulate the Medium-term Business Plan andRolling Plan.

‒ Cross-group risks (including compliance risks) common to each business/Group company

Refer to 28-4 Risk Assessments（3） Selection process for key risks

The following process is used by the Risk Management and Compliance Committee to select key risks.
(i) For the above cross-group risks, the high-value risks calculated using the "probability of occurrence" and "impact when it occurs" horizons are considered the "inherent risks".
(ii) In addition, the "effectiveness of control activities" is evaluated, and risks with low "effectiveness of control activities" with respect to "inherent risks" are selected as key risks.
（4） Management method

Refer to 3-3 Promotion Framework for Sustainability / 3-4 Materialities (Key Issues) and KPIs

‒ Key risks (low "effectiveness of control activities" with respect to "inherent risks"): The lead de-■ Risk Management by the Risk Management and Compliance Committee

partment or subcommittee establishes key performance indicators and action items, and the
Risk Management and Compliance Committee confirms progress (business risks are led by thebusiness division and confirmed by business reviews and other means).

The Nissha Group carries out risk assessments for all Group companies both in Japan and overseas,and selects key risks for each company. The assessment targets, the common risks that cut acrossbusiness fields and Group companies, are assessed on two axes, “ probability of occurence” and“impact when it occurs,” with the addition of the effectiveness of control activities. The assessment
results are used to consider priority order by business divisions/Group companies, and business divisions/general managers confirm the validity of this from a business management perspective, thenNissha Sustainability Report 2024

‒ High "effectiveness of control activities" with respect to "inherent risks": Subject to monitoring,

managed by the lead department or subcommittee, and the Risk Management and Compliance Committee confirms the status of maintenance and operation.
‒ Cross-group risks other than "inherent risks": Managed by the business division and lead de-partment, and reported at the Monthly Business Review (MBR).

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The company has selected Business Continuity (natural disasters such as earthquakes, typhoons, andfloods) as one of our key risks and includes climate change risk in this category.
As a measure to address risks, a "Business Continuity Plan" has been formulated to prepare for andrespond to natural disasters and emergencies should they occur, and the plan is promoted by the Busi
ness Continuity Management Subcommittee under the Risk Management and Compliance Committee. The Business Continuity Management Subcommittee, which manages such risks, works to mitigate risks based on KPIs and action items approved by the Risk Management and Compliance Committee, and reports the state of its activities to the Risk Management and Compliance Committee.

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Indicators and Targets

We have defined total CO2 emissions as an indicator for assessing and managing risks related toclimate change. Our Sustainability Vision aims for a 30% reduction in CO2 emissions in 2030 (compared to 2020), with a view to carbon-neutral by 2050.
In the next fiscal year and beyond, we will consider establishing and publishing indicators and targets
to assess and manage climate change-related business opportunities.

The Nissha Groupʼs CO2 Emissions Reduction Target and Results (Scope1 and 2)(unit: t-CO2)
140,000-3%

120,000-6%-9%100,000

Reduction targets

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The Nissha Group views sustainability as an initiative toward the achievement of sustainable growthand development for both the company and society. In other words, we consider social issues to bebusiness opportunities. We consider it important not only to leverage our strengths to provide products and services that help resolve these on an ongoing basis, but also to strengthen the managementfoundation underpinning our business activities, reduce risks that could hamper business continuance, and promote governance to ensure these are all carried out appropriately.
In the Sustainability Vision that presents our vision for ourselves in 2030, the Nissha Group defines
Medical, Mobility, and Sustainable Materials as the key markets to solve social issues through businessactivities. In addition, we have expressed our aim to reach 150 billion yen in products related to the
medical market, out of our consolidated sales of 300 billion, and are pressing ahead with reorganizing
our business portfolio.
The Medical Technologies business has now been added to the analysis, so all three of the major businesses of the Nissha Group have now been analyzed. As a result, although the transition and physicalrisks for the Nissha Group that are associated with climate change are important, we believe that theirimpact on our finances will be limited if sufficient measures are taken to address the risks we haveidentified through our analysis. Also, contributing to solving social issues related to climate change isconsidered a business opportunity for the Nissha Group.
Additionally, we have confirmed that the risks associated with climate change and its financial impact
will be small for the Medical Technologies business compared to other businesses. This means thatour growth strategy of business expansion in the medical market, which the Nissha Group is engaging
in with a view to our Sustainability Vision, is seen as something that can also contribute to reducing
climate change risks for the Group.

-30%（compared to 2020）

80,000

Achieved -18.7%

40,00020,000
0

2020

2021

2022

2023
Scope1

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Scope2

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