Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes noresponsibility for this translation or for direct, indirect or any other forms of damage arising from the translation.

Nishimatsu Climate Information 2024

June 2024©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Introduction
Action Plan to Realize CN Society
Since last year, the global average temperature has been the highest on record each month, and the effects of climate change are becoming a reality. Now is the time to accelerate climate
action around the world.
Recognizing that addressing climate change is an important management issue in the companywide business strategy, Nishimatsu Construction has developed the Transition Plan for 2050
Carbon Neutral (CN) Society. We pledge to meet the expectations of our stakeholders by working diligently to implement the Nishimatsu Transition Plan for CN Society and by contributing tosolving social issues related to climate change through our business activities, with the aim of further enhancing our corporate value.

Companywide
Business Strategy
Nishimatsu Transition Plan
for 2050 CN Society
ZERO50 Roadmap＋
Nishimatsu Action Plan
for Climate Risks/Opportunities■ Nishimatsu Transition Plan for 2050 Carbon Neutral (CN) Society■2050年CN社会移行計画
It consists of the “ZERO50 Roadmap,” a net-zero plan to achieve a CN society in 2050, and “Nishimatsu
Action Plan for Climate Risks/Opportunities.”■ ZERO50
Roadmap■ZERO50ロードマップ
The plan is to achieve net zero CO₂ emissions from our direct operations and value chain in 2050 andincludes the "ZERO30 Roadmap 2023," a CO₂ emissions reduction plan with FY2030 as a milestone.
■ Nishimatsu
Action Plan for Climate Risks/Opportunities■気候関連リスクおよび機会の対応¥

An action plan to address climate-related risks and opportunities identified as key issues as a result ofclimate-related scenario analysis for the transition to a CN society.

FY2030 CO₂ Reduction Plan
［ZERO30 Roadmap 2023］■ ZERO30 Roadmap 2023
■ZERO３０ロードマップ2023
A plan to reduce CO₂ emissions in order to create a decarbonized society by FY2030, toward therealization of the ZERO50 Roadmap.
It consists of a CO₂ emissions reduction plan with annual targets up to FY2030 and an energy creation
plan with renewable energy generation.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Table of Contents

1

Highlights and Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3

2

Governance and Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 63Strategy (Scenario Analysis) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9

4Metrics and Targets (Transition Plan) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15

5

Relevant Data and Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23

6Additional Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27
References ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 31©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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1Highlights and Topics©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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2024 Highlights

Strengthen measures for climate risks and opportunities

P18 - 20

To enhance resilience toward a carbon neutral (CN) society, we have implemented management through a PDCA cycle that clearly defines key performance indicators(KPIs), quantitative targets, progress monitoring, and initiatives for the next fiscal year and beyond in combination with our existing response measures for climaterelated risks and opportunities.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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TopicsListed on CDP’s Supplier Engagement Rating Leaderboard
We have earned a place on the “Supplier Engagement Rating Leaderboard" by CDP*, an international NGO specializing in environmental assessments,
receiving the highest rank “A” in the "Supplier Engagement Rating" for climate change in 2023.
To achieve carbon neutrality in 2050, we are proactively promoting engagement with suppliers through sharing information and demonstrating introductionof specific CO₂ reduction measures as an effort to encourage their CO₂ reduction activities in addition to our own direct CO₂ reduction efforts.
[CDP Supplier Engagement Rating] https://www.cdp.net/en/supply-chain/supplier-engagement-rating[Listed on the CDP’s Supplier Engagement Rating Leaderboard] https://www.nishimatsu.co.jp/news/2024/cdp.html

Received the Excellence Award at the 9th Sustainable Finance Awards
In July 2023, we formulated a Sustainability Linked Finance Framework based on the "ZERO30 Roadmap 2023" and issued a Sustainability Linked Bond
(hereafter “SLB"). Our sustainability targets include the percentage reduction of Scope 1+2 and Scope 3 (Category 11) CO₂ emissions. We will continue topromote efforts to achieve our goals through flexible capital deployment using sustainable finance such as SLB.
Our funding raised through the SLB received the Excellence Award at the 9th Sustainable Finance Awards sponsored by the Research Institute forEnvironmental Finance.
[Sustainable Finance] https://www.nishimatsu.co.jp/esg/s-finance/[Received the Excellence Award at the 9th Sustainable Finance Awards] https://www.nishimatsu.co.jp/news/2024/9.html*CDP: A British charity-controlled non-governmental organization (NGO) established in 2000.
CDP’s environmental information disclosure and its assessment process are widely recognized around the world as the global standard for corporate environmental information disclosure.
Currently, CDP collaborates with 740+ signatory financial institutions with assets of more than USD 137 trillion. In 2023, over 25,000 organizations worldwide, including more than 23,000 companies equivalent to two-thirds of the global market capitalization andover 1,100 municipalities, disclosed environmental information through CDP questionnaire.
©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Governance and Risk Management©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Governanceand Risk Management Structure
Review of governance and risk management structure
Until now, Nishimatsu has established a management structure based on the “Environment Committee” for key items and response measures for climate-related risks and opportunities, as well as
progress management. However, we have recently reevaluated our sustainability promotion structure and decided to establish a new "Sustainability Strategy Meeting" from FY2024, integrating the"Environment Committee" into this new management structure.

Oversight levelOversight by Board

We believe that strategies to avoid, reduce, and transfer climate-related risks and torealize climate-related opportunities are positioned as important management issues,and that appropriate corporate responses will lead to sustainable growth. To this end,
the "Board of Directors" discusses the reports from the "President and General
Managers Meeting" on climate-related issues and oversees specific response measuresand progress management related to climate-related risks and opportunities.
Chief executive level

Decision and Approval made by President andGeneral Managers Meeting

Oversight
level

Climate-related risk/opportunity
identification process

Climate-related response measure progress
management process

Board of Directors

Board of Directors

Oversee climate risks/opportunities (material items & response measures)

Oversee climate-related response measures

Report (semiannual)

Chief
executive
level

Oversight / instruction

President & General Managers Meeting

President & General Managers Meeting
Approve progress of climate-related response measures

Approval / instruction[New] Sustainability Strategy Meeting
Confirm material items for climate
risks/opportunities and response
measuresReportIntegrate with ERM

Approval / instruction

Management by Sustainability Strategy Meeting

Level 2

Head Office (branch office/site) departments extract material items for climate
risks/opportunities, develop risk/opportunity response measures, and report on the
progress. The "Environment Committee (Working Group: Global Environment
Subcommittee)" established within the "Sustainability Strategy Meeting" receives
reports from the "Head Office (branch office/site) departments," identifies extracted
climate-related risks and opportunities, confirms response measures and progress, andreports to the Sustainability Strategy Meeting. The "Sustainability Strategy Meeting"makes a final confirmation, integrates it with Enterprise Risk Management (ERM), andreports to the "President and General Managers Meeting."（from FY2024)(Working Group: Global Environment Subcommittee)[New] Sustainability Strategy Meeting
Confirm progress of climate-related
response measures
ReportApproval / instruction

Environment
Committee
環境委員会(Working Group: Global Environment Subcommittee)

Confirm identified climate-related
risk/opportunity response measures
ReportInstruction

Identify material items for climate
risks/opportunities in each department

ReportLevel 1

Approval / instruction

ReportEnvironment Committee(Level 1 -) Level 2

Oversight / instruction

Decide climate-risks/opportunities (material items & response measures)
Report (semiannual)

Reported on climate-related issues by the “Sustainability Strategy Meeting,” the“President and General Managers Meeting” makes decisions (checks, approves) on
specific response measures and progress management related to climate-related risks
and opportunities as responsibility of chief executive level, and reports to the "Board of
Directors" twice a year.

ReportInstruction

Confirm progress of climate-related response
measuresReportInstruction

Head Office (branch office/site) departments

Head Office (branch office/site) departments

Extract material items for climate risks/opportunities and develop response measures

Report on progress of climate-related response measures©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Climate-Related
Risk/Opportunity Management Process
After the “material items for climate risks/opportunities” are primarily extracted based on an evaluation of three factors: quantitative and qualitative impacts and likelihood of occurrence, those whichhave significant impact in terms of finance and strategy are secondarily extracted (i.e. identified) and determined as material items. Progress management involves the process of checking progress reports
on “material items for climate risks/opportunities" at each level and providing instructions to lower levels as necessary.

(1) Process for determining material items for risks/opportunities
Oversight
level“Board of Directors”

Chief executive
level“President & General Managers
Meeting”

Decide and oversee
material items

From the material items primarily extracted, those which have significant impact interms of finance and strategy are secondarily extracted (i.e. identified).

Identify material items
Extract material items

The likelihood of occurrence is scored in certain categories.

Likelihood of occurrence
Qualitative impact

The qualitative impact is determined based on the interest of stakeholders such as
customers, suppliers, government bodies, and investors, according to evaluation andscore allocation.

Quantitative impact

The quantitative impact is determined according to evaluation and score allocation basedon the operating income.

Head Office (branch office/site)

21436-Bldg

30
29

5
31
6

36-Civil
30
→Add2

25

Material items are primarily extracted based on three factors: quantitative andqualitative impacts and likelihood of occurrence.

35

23

Impact level

Level 1

Environment Committee■ Image of materiality evaluation process
Materiality “High”
35
27“Sustainability Strategy Meeting”

Level 2

Regarding the identified material items for risks/opportunities, final decisions are madewith the responsibilities of chief executive and oversight levels.

33

12-Civil

20

41
40
39
38

15

42

43

19①
2℃

2

8
34

14

17①
2℃
10

Add１
19②
4℃
11

10
17②
4℃

16
5

0
0

5

10

15

20

25

30

Likelihood of occurrence(2) Progress management process for risk/opportunity response measures
Oversight
level“Board of Directors”

Chief executive
level“President & General Managers
Meeting”“Sustainability Strategy Meeting”

Level 2

Level 1

Approve and oversee
report details

Environment Committee

Confirm and instruct
report details

Head Office (branch office/site)

Progress report• The Board of Directors oversees the progress report from the President and General Managers Meeting on response measures in "material items
for climate risks/opportunities" and provides instructions to the President and General Managers Meeting as necessary.
• The President and General Managers Meeting approves the progress of response measures in "material items for climate risks/opportunities" fromthe Sustainability Strategy Meeting and provides instructions to the Sustainability Strategy Meeting as necessary.
• The Sustainability Strategy Meeting confirms the progress of response measures in "material items for climate risks/opportunities" from theEnvironment Committee and provides instructions to the Environment Committee as necessary.
• The Environment Committee confirms the progress of response measures in "material items for climate risks/opportunities" from “Head Office(branch office/site),” and provides instructions to the “Head Office (branch office/site)” as necessary and reports to the Sustainability Strategy
Meeting.
Head Office (branch office/site) departments report the progress of the response measures in "material items for climate risks/opportunities“ to theEnvironment Committee.
©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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3Strategy (Scenario Analysis)©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Strategy (Scenario
Analysis)
Adopted scenarios and target businesses and time horizons for analysis
We have conducted scenario analysis as recommended by the TCFD*1 to respond to a highly uncertain future. It covers not only our mainstay “Construction Business" but also "Asset ValueAdded Business" and "Regional Environmental Solutions Business," taking into account the entire value chain including partner companies and material procurement.
In addition, since climate-related risks and opportunities can have long-term impacts, we have set the period up to FY2025, the ending year of the medium-term management plan, as "shortterm," the period from FY2026 to FY2030 as "medium-term," and the period after FY2030 as "long-term.“
Estimatedtemperature
rise

Adopted scenario[Transition] IEA*2 NZE*3

1.5°C[Physical] SSP*4 1-1.9

Assumed environment
It shows a pathway to stabilize the global average temperature at 1.5°C
above the pre-industrial level.
A scenario in which clean energy policies and investments surge, anddeveloped countries reach net zero ahead of others.
Under sustainable development, climate policies to limit thetemperature rise to 1.5°C or lower from the pre-industrial level are
introduced.
Expected to achieve net-zero CO₂ emissions in mid-21st century.

[Transition] IEA STEPS*5

A scenario that reflects specific policies announced by each country at
this stage. The temperature rise exceeding 2°C is assumed.

[Physical] SSP5-8.5

High-level reference scenario with no climate policy introduced underfossil fuel dependent development.

4°C*1 TCFD: Task Force on Climate-related Financial Disclosures. The Task Force, established by the Financial Stability Board (FSB) following arequest from the G20, encourages companies and others to understand and disclose the financial impacts of climate change.
The TCFD dissolved in October 2023, transferring its oversight function to the International Financial Reporting Standards(IFRS) Foundation.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

Target business⚫ Construction Business (domestic
civil engineering and building
construction, international)

Time horizon for analysis (FY)

Short-term: 2020-2025⚫ Asset Value-Added BusinessMedium-term: 2026-2030⚫ Regional Environmental Solutions
Business

Long-term: 2031-2050*2 IEA: International Energy Agency*3 NZE: Net Zero Emissions by 2050 Scenario*4 SSP: Shared Socioeconomic Pathways*5 STEPS: Stated Policies Scenario

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Material Items for Climate-Related Risks/Opportunities
Using the scenario analysis in the respective views of the world of 1.5°C and 4°C temperature rise compared to pre-industrial times, we have identified climate-related risks and opportunities based on
the process for determining material items.
Furthermore, financial impacts on our business activities and the affected periods are summarized below.

Material items for climate-related risks
Risk
classificat
ion

Risk: material items

Material items for climate-related opportunities
ImpactperiodFinancial
impactShort

Technology

Cost
increase[Decarbonization needs]
Technological response related to environmentallyfriendly concreteSales
decrease[Temperature rise]
Response to a decrease in skilled workers(consideration of power-saving construction methods)

Chronic risk

Physical risk

[Temperature rise]
Response to a decrease in skilled workers(unmanned and automated operation)

Sales
decrease

Sales
decrease

Cost
increase[Analyzed time horizon (FY)] Short: 2020-2025; Medium (Mid): 2026-2030; Long: 2031-2050

■■
■■
■■
■■
■■
■■

Short

1.5°C

1.5°C

1.5°C

4°C
1.5°C
4°C
1.5°C

4°C

Resilience[Temperature rise]
Response to a decrease in skilled workers(Increase in labor costs, construction robots)

Sales
decrease

Opportunity: material items

ImpactperiodFinancial
impactLong

Products and services[Decarbonization needs]
Technological response related to wooden high-risebuildings

Opportunity
classification

Resource
efficiency

Regul
ation
Transition risk

[Strengthened policies]
Response to the full-scale introduction of carbon tax

Mid

Applicable
scenarioMid

Applicable
scenarioLong[Decarbonization needs]
Increased needs for energy-efficient rental buildings

Sales
increase■■■[Decarbonization needs]
Increased needs for construction of ZEB (Net Zero
Energy Buildings)

Sales
increase■■[Decarbonization needs]
Increase in renewable energy-related construction

Sales
increase

■■

1.5°C

[Decarbonization needs] [Strengthened policies]
Response to regional environmental issues (1)・Increased demands for renewable energy

Sales
increase

■■■

1.5°C

[Decarbonization needs] [Strengthened policies]
Response to regional environmental issues (2)・Increased demands for decarbonized community
development projects (smart grid and power storagerelated technologies)

Sales
increase

■■■

1.5°C

[Temperature rise]
Increase in disaster recovery construction

Sales
increase■■■

4°C[Temperature rise][Strengthened policies]
Increase in disaster prevention and mitigation
construction

Sales
increase■■©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

1.5°C
4°C

1.5°C

1.5°C
4°C
1.5°C

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Strategy / タイトルの書式設定[1.5 °C Scenario] Financial Impact Assessment
Financial impact assessment
The risks and opportunities identified as material items are expressed as their financial impacts on operating income in FY2021, and the changes in the amount of impact due to climate-related
risk and opportunity factors as of FY2030 and FY2050 are compared and verified using waterfall charts.

FY2030: 1.5 °C Scenario

FY2050: 1.5 °C Scenario

1 Operating income (FY2021)
Response to decreased workers
2 (unmanned/automated operation)

26

26

3 Response to wooden high-rise buildings
4 Full-scale introduction of carbon tax

25

25

5 Delayed development of environmentally-friendly
concrete
6 Response to decreased workers (manpower-saving
methods)

24

24

7 Response cost ( 2 to 6 costs total)

23

23

8 Increased needs for energy-efficient rental buildings
9 Increased demands for renewable energy
Expansion of decarbonized community
10
development projects

22

21

22

21

11 Increased needs for ZEB construction
12 Increased disaster recovery construction

20

13

20

Expansion of renewable energy-related
construction

14 Increased disaster prevention/mitigation construction

19

19

15 Profit recovery by risk response ( 2 to 6 )18

16 Operating income (FY2030 & FY2050)

18

in billion
JPY

in billion
JPY

Major financial impacts:[Risk] Sales loss due to delayed response to wooden high-rise buildings and increased businesscosts due to the full-scale introduction of carbon tax have a great impact. ( 3 ・ 4 )[Opportunity] Significant sales opportunities by responding to ZEB construction needs. ( 11 )See P19 and P20 for details for risk
response and opportunity acquisition.

Major financial impacts:

When there are changes or revisions
to internal figures or parameters, thefinancial impact is reviewed as
appropriate.

[Risk] Increased business costs due to the full-scale introduction of carbon tax have an
extremely big impact, followed by the impact of sales loss due to delayed response
to wooden high-rise buildings. ( 3 ・ 4 )[Opportunity] Significant sales opportunities by responding to ZEB construction needs. ( 11 )[Opportunity] Expansion of opportunities for renewable energy-related construction andenergy creation business. ( 9 ・ 13 ）©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Strategy / タイトルの書式設定[4 °C Scenario] Financial Impact Assessment
Financial impact assessment
The risks and opportunities identified as material items are expressed as their financial impacts on operating income in FY2021, and the changes in the amount of impact due to climate-related
risk and opportunity factors as of FY2030 and FY2050 are compared and verified using waterfall charts.

FY2030: 4 °C Scenario

FY2050: 4 °C Scenario

26

26

25

1

Operating income (FY2021)

2

Response to decreased workers(unmanned/automated operation)

3

Response to decreased workers (construction
robots)4

Response to decreased workers (manpowersaving methods)

5

Response cost (6

Increased disaster prevention/mitigation
construction

7

Increased disaster recovery construction

24

23

22

21

20

19

2

to

4

25

costs total)

8

Increased needs for ZEB construction

9

Profit recovery by risk response ( 2 to 4 )10Operating income (FY2030 & FY2050)

24

23

22

21

20

19

18

18

in billion
JPY

in billion
JPY

Major financial impacts:[Risk] In domestic building construction business, increased construction costs due to decrease inworkers caused by rising temperatures have a relatively large impact. ( 3 )[Risk] In domestic civil engineering business, sales loss due to delayed response (unmanned/automatedoperation, manpower-saving method) to decrease in workers caused by rising temperatures
has the second largest impact after the above. ( 2 ・ 4 )[Opportunity] An increase in disaster prevention and mitigation construction is expected, increasing
sales opportunities.（ 6 ）See P19 and P20 for details for risk
response and opportunity acquisition.
When there are changes or revisions tointernal figures or parameters, thefinancial impact is reviewed as
appropriate.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

Major financial impacts:[Risk] In domestic building construction business, increased construction costs due to decrease inworkers caused by rising temperatures have a significant impact. ( 3 )[Risk] ] In domestic civil engineering business, sales loss due to delayed response(unmanned/automated operation, manpower-saving method) to decrease in workers
caused by rising temperatures has the second largest impact after the above. ( 2 ・ 4 )[Opportunity] An increase in disaster prevention and mitigation construction is expected, increasing
sales opportunities.（ 6 ）

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Scenario Analysis Result
Scenario analysis result and resilience■ 1.5°C scenario analysis result■ 4°C scenario analysis result

We discovered that the risk of increased business costs due to the full-scale introduction of

It is found out that the decline in labor force associated with rising temperatures has acarbon tax will be very high as of 2050, followed by the impact of sales loss due to delayed

significant impact on both sales and costs, and it will be more noticeable in 2050 than in

response to wooden high-rise buildings. On the other hand, regarding opportunities, it is2030.

estimated that along with sales growth due to the needs for ZEB construction, the impact

On the other hand, we reaffirmed that disaster prevention and mitigation construction isof opportunity acquisition for renewable energy and energy creation-related business will

an opportunity to have the greatest impact.

be relatively large as of 2050.
The financial impact on operating income shows a slight decrease as of 2030 compared to

Looking at the financial impact on operating income, in both 2030 and 2050, operating

2021, although profits will recover through risk response, and an increase as of 2050.

income will decrease only mildly from the 2021 level as a result of the profit recovery
through risk response.

With regard to resilience to climate change, after verifying the financial impact on operating income under climate-related scenarios of
1.5°C and 4°C, we confirmed that there would be no significant financial impact.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Metrics and Targets (Transition Plan)©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Metrics andTargets / Nishimatsu Transition Plan for CN Society [ZERO50 Roadmap] 1/2[ZERO50 Roadmap / entire value chain]
The ZERO50 Roadmap is a plan to achieve net zero in the entire value chain toward a CN society in 2050. In addition to direct CO₂ reduction measures, it also aims to implement related
activities to promote reduction, such as enhancing governance and collaborating with stakeholders, and to shift business models toward a CN society.
Expand introduction of decarbonizing technologies and energy[Reduction of GHG emissions from products and services]

Elaborate and implement transition plan
[Advanced management]• Improve companywide climate change literacy• Introduce internal carbon pricing• Introduce an incentive system linked to climate change response• Develop and implement strategies for internal collaboration andexternal disclosure of climate-related information• Enhance financial impact management/analysis/evaluation of
scenario analysis, etc.
[Collaboration with stakeholders]• Develop and implement stakeholder engagement strategy (Targets:
NGOs, suppliers, customers, countries and industry associations, etc.)

Promote and expand transition plan
[Advanced management]• Develop variable measures with internal carbon pricing[Business model transformation]• Establish circular economy business models• Contribute to the formation of a decarbonized society with energy
creation-related businessformation of a decarbonized society with energy creation-related business• Neutralize residual emissions through carbon recycling technology andoffsetting

Direct CO₂ reduction
measures

Expand and deepen existing activities and prepare for the next 10 years[Reduction of GHG emissions from products and services]• Use next-generation biofuel, etc. (low carbon, CN)• Proactive introduction of the latest construction machinery (fuelefficient)• Expand introduction of renewable electricity• Promote ZEB design in design-build projects• Procure low-carbon/decarbonized construction materials• Utilize and develop construction methods and technologies that
contribute to decarbonization• Advance methods for calculating CO₂ emissions and managing
reduction effects throughout the building life cycle

Related activities（t-CO₂）4,000,000• Expand introduction of next-generation biofuel, etc.
• Introduce next-generation construction machinery that
contributes to decarbonization• In principle, business activities powered by renewable electricity• Standardize ZEB design in design-build projects• Expand procurement of low-carbon/decarbonized construction
materials• Expand utilization and development of construction methods andtechnologies that contribute to decarbonization• Accelerate CO₂ reduction throughout the building life cycle<Major settings in roadmap development>• Sales: Sales are estimated based on the 2025 Mid-Term Plan up toFY2030[Collaboration with stakeholders]• Renewable electricity usage: 77% of electricity consumption in• Expand a business ecosystem through implementation of stakeholder
engagement and collaboration (Targets: NGOs, suppliers, customers,
countries and industry associations, etc.)• Fossil fuel usage: 20% of fuel consumption as of 2050

2030 and 100% in 2040
• ZEB building rate: 100% by 2050 (Scope 3 Category 11)[Business model transformation]• Implement circular economy business models Contribute to the

Scope 3
Other than Category 11

Scope 3Category 11

2,000,000

Scope 1+2*

1,000,000*The following page details the reduction pathways for Scope 1 +2.
2020• Electrify construction machinery, or convert fuels to CN• Complete conversion of electricity to renewable energy used inbusiness activities• Convert all design-build projects to ZEB• Neutralize residual emissions through carbon recycling technology
and offsetting• Standardize circular economy business models• Significantly contribute to the formation of a decarbonized society
with energy creation-related business• Expand an incentive system linked to climate change response

3,000,000

0Achieve carbon neutrality (CN) in 2050
[Realization of fully decarbonized business models]

2030©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

2040

2050 (FY)

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Metrics andTargets / Nishimatsu Transition Plan for CN Society [ZERO50 Roadmap] 2/2[ZERO50 Roadmap / Scope 1+2]
A roadmap to achieve net zero for the direct operations (Scope 1 + 2) part in the "ZERO50 Roadmap." We will strive to achieve net-zero CO₂ emissions by utilizing negative emission technologies in
addition to standardizing renewable electricity and introducing next-generation fuels and technological innovations (construction machinery and equipment that contribute to decarbonization).

ZERO50 Roadmap[Legend]
S1: Scope 1 S2: Scope 2Power factor
improvement<Major settings in roadmap development>• Sales: Sales are estimated based on the 2025 Mid-Term Plan up to FY2030• Renewable electricity usage: 77% of electricity consumption in 2030 and 100% in 2040
• Fossil fuel usage: 20% of fuel consumption as of 2050

S2

On-site energy
saving activities

S1, S2Next-gen fuels

S1

New technology
introduction

S1, S2

ZERO 30 Roadmap 2023
(FY2030 CO₂ reduction plan)<2030 target>
54.8% reduction

Fuel efficiency
S1, S2
improvement ofconstruction machinery<2050 target>
Net zero(compared to FY2020)

Introduction ofrenewable electricity

S2

CO₂ emissions (net)
2020

2030

Neutralization by NETs (negative emissions
technologies), etc.

Neutralization by NETs
(negative emissions
technologies), etc.

2040

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

2050 (FY)

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Targets / Nishimatsu Transition Plan for CN Society [Action Plan for Climate Risks/Opportunities] 1/3
The Nishimatsu Transition Plan for CN Society consists of the "ZERO50 Roadmap" and a “Action Plan" for climate-related risks and opportunities identified as material items (P. 11) as a result of
scenario analysis in preparation for the transition. Considering the large profit recovery amount achieved by avoiding or reducing risks, and in order to ensure profits by acquiring opportunities, we
set response policies, KPIs and targets, and then implement the PDCA cycle to manage progress in our action plan.

Progress in addressing climate-related risks and opportunities (summary)P19, 20■ Particularly successful item
・[Risk No. 8] Business cost increase due to the full-scale introduction of carbon tax
Scope 1+2 CO₂ emissions reduction in line with ZERO30 Roadmap in FY2023 result :41k t-CO₂ (FY2022 result: 44.6k t-CO₂) (FY2030 CO₂ emissions target: 31.7k t-CO₂)■ Delayed items
・[Risk No. 4] Loss of order opportunities due to delayed technological development of environmentally-friendly concrete

Delayed development to meet the 2028 implementation targets for carbon negative concrete buildings
・[Opportunity No. 8] Response to global environmental issues
FY2023 renewable electricity generation volume result: 0.9k MWh (FY2023 target: 1.7k MWh) (approx. 50% of the target)©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Targets / Nishimatsu Transition Plan for CN Society [Action Plan for Climate Risks/Opportunities] 2/3[Legend (evaluation)] ◎: Progressing faster than planned; ○: Progressing as planned:△: Progressing behind plan; ×: No progress against plan

(1) Progress of climate-related risks
Overall progress check (metrics and targets)
No.

Businessclassification

Civil
1 engineeringbusiness

Material item

Response policy[Temperature rise]
Response to a decrease Establishment andaccumulated experience ofin skilled workers(consideration of power- large-scale precastingsaving construction
technology
methods)[Temperature rise]
Civil
Response to a decrease
2 engineering in skilled workers
business (unmanned andautomated operation)

Establishment and on-site
implementation of unmanned
and automated construction
technology

Relations with Nishimatsu-Vision
2030 and Mid-Term Management
Plan 2025

TargetFY2023 result

Achievement level

ActionEvaluationPromotion of technologicaldevelopment of road slab
replacement

Number of orders
received forexpressway roadslab replacement
construction

A total of 5 cases by
FY20301 case20%

・Develop large-scale precasting
technology
・Establish precast product procurement
systems〇

・Continue actions taken in FY2023

Productivity improvement inconstruction business: Automatedtunnel construction and construction
RX (robot transformation)
Promotion of "smart construction
sites" utilizing DX

Number ofworkers in
Reduce 30％ frommountain tunnel
FY2018 level by FY2027
and shield
construction

0%・Establish remote-control technology for
major works in mountain tunnel
construction
・Establish elemental technology and AIassisted technology for shield tunnel
construction○

・Continue actions taken in FY2023
・Introduce unmanned and automated technology toconstruction

10,900 hours
down

17%

・Participate in the RX Consortium to develop andtest construction robot technology
・Collaborate with partner companies to develop
construction robots
・Develop productivity improvement technology
through collaboration with technical research
institutes and manufacturers○

・Continue actions taken in FY2023

0 cases0%・(1) Develop technology for implementing(1)○
low-carbon concrete buildings
・(2) Develop technology for implementing (2)△carbon negative concrete buildings

・Continue actions taken in FY2023
・(1) Implement technology-developed (slagrete, volcanic glass
powder, geopolymer) low-carbon concrete in buildings
・(2) Implement carbon negative concrete in buildings○

・Continue actions taken in FY2023
・Establish and practically apply structural design technology
for two-way timber frames for wooden low- and mid-risebuildings
・Extract and address issues in fire resistance construction
methods in actual buildings[Decarbonization needs]

Building
Technological response Promotion of development of Acquisition of trailblazing
4 construction related toenvironmentally-friendly
construction technology: lowbusiness environmentally-friendly concretecarbon material development
concrete[Temperature rise]
Response to a decrease

Introduction of manpowersaving tunnel construction inengineering>(technological response) overseas construction projects
International

6 business <civil in skilled workers[Temperature rise]International
Response to a decreasebusinessin skilled workers
7<building(consideration of
construction>
construction methods)

8Companywide[Strengthened policies]
Response to the fullscale introduction ofcarbon tax

Adoption of pre-fabrication
methods

Reduction of Scope 1+2 CO₂emissions in line with ZERO30
Roadmap

Status from FY2024 onwards

KPI (metric)[Temperature rise]
Development and introduction Productivity improvement in
Building
Response to a decreaseof construction robots, remote construction business: Construction
RX (robot transformation)
3 construction in skilled workers(Increase in labor costs, control, and manpower-saving Promotion of "smart construction
business
apps
construction robots)sites" utilizing DX[Decarbonization needs] Enhancement of design and
Building
Technological response
5 construction related to wooden high- construction technology forbusiness rise buildings
wooden high-rise buildings

Status of efforts up to FY2023

Reduction in
Reduce total annual
total annual
working hours byworking hours of
66,000 by FY2030
all workers(1) Low-carbon
concrete(2) Carbon
negative
concrete

Implement in buildings(1) by FY2026 and (2)by FY2028

0%

Future action (FY2024 onwards)

Acquisition of trailblazing
construction technology:
wooden building construction
technology

Annual sales ofwooden mid- and 17.2 billion yen as ofhigh-rise
FY2030buildings

1.35 billion yen

8%・Acquire fire resistance technology for woodmaterials
・Develop and practically apply structural design
technology for one-way timber frames forwooden low- and mid-rise buildings
・Jointly develop construction methods forpractical application of wooden high-risebuildings (11 stories or more)ーManpower-saving
Adopt one case bytechnology in tunnel
FY2027
construction

0 cases0%Consider specific measures for
implementation〇

・Introduce manpower-saving technology in tunnels
・Promote ICT constructionーAchievements ofConstruct one case bybuildings using prefabrication methods FY2030

0 cases0%・Verify technology and costs for prefabrication of factory logistics facilities〇

・Continue actions taken in FY2023

76%

・Promote energy conservation inconstruction
・Introduce renewable electricity inbusiness activities
・Extract technologies, methods, and ideasthat contribute to decarbonization atconstruction sites, and tentatively
introduce environmental technology◎

・Continue actions taken in FY2023

ZERO30 Roadmap

Scope 1+2
emissions

Achieve 31.7k t-CO₂ by
FY203041k t-CO₂©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Targets / Nishimatsu Transition Plan for CN Society [Action Plan for Climate Risks/Opportunities] 3/3[Legend (evaluation)] ◎: Progressing faster than planned; ○: Progressing as planned:△: Progressing behind plan; ×: No progress against plan(2) Progress of climate-related opportunities
No.

Businessclassification

Material item

Civil
[Temperature rise]
1 engineering Increased disasterbusiness recovery construction
Civil
2 engineeringbusinessCivil
3 engineeringbusiness

4

Response policyー[Decarbonization needs]
Increased renewableenergy-related
construction

Enhancement of order intake
for offshore wind power
generation construction
projects

Participation in offshore wind
power generation construction
projects[Temperaturerise][Strengthened
policies]
Increased disasterprevention- andmitigation construction

Enhancement of order intake forshield construction and renewal
construction (disaster prevention
and mitigation related)ーCollection of sales andtechnical information andtechnological development
related to flood prevention
construction
International [Decarbonization needs] Promotion of ZEB in new
business
Increased needs for
6
construction and renovation<buildingenergy-efficient
projects
construction> buildingsInternational [Temperature rise]
5 business <civil Increased disasterengineering> countermeasure work

7

relations with Nishimatsu-Vision
2030 and Mid-Term Management
Plan 2025

Establishment of a system for
rapid response in disasterrecovery construction

Building[Decarbonization needs] Promotion of ZEB in new
constructio Increased needs for ZEB construction and renovationn business construction
projects

Asset ValueAdded
business

Overall progress check (metrics and targets)[Decarbonization needs] Implementation of ZEB and
Increased needs forenergy-efficient measures inenergy-efficient rental
rental buildings ownedbuildings

KPI (metric)

TargetAcceptance ofrequests forAchieve 100% by
disaster recovery FY2030
assistance
Number of orders
received foroffshore wind
power generation
projects

A total of 1 case as of
FY2030Disaster prevention
More than 14 billion
and mitigation
related construction yen/year as of FY2030
completedHigh added-value buildings: ZEB, Increased sales
due to ZEB
ZEH

FY2023 result

Status of efforts up to FY2023

Achievement level

ActionStatus from FY2024 onwards
Evaluation100% (2/2 cases)

100%

・Establish a system for rapid response
・Establish a system that contributes tostrengthening procurement capabilities for
emergency materials, equipment, and labor
・Collect information on unmanned andautomated technology

0 cases0%・Acquire wind power generation construction
technology
・Possess SEP vessels (construction barges)○

・Continue actions taken in FY2023
・Accumulate construction experience necessary for offshore
wind power generation construction

13 billion yen

93%・Continuously receive orders for shield
construction and renewal-related construction
・Strengthen relations with shield construction
companies (build cooperative relations)○・Continue actions taken in FY2023

7%

・Extract measures to improve efficientperformance in design and construction projects
・Understand air-conditioning operating efficiency
in the Company's development properties
・Begin verification of optimal operation andmanagement methods in the Company's energyefficient facilities
・Design and construct Nearly ZEB buildings○

・Continue actions taken in FY2023
・Design and construct verification buildings for Nearly ZEB(75% reduction without energy creation)
・Build achievements of ZEB in renovation projects

2.24 billion yen/year as
160 million yen
of FY2030○

・Continue actions taken in FY2023
・Introduce unmanned and remote technology to actual
disaster recovery constructionー

Number of flood
prevention
One by FY2027
construction
projects

0 cases0%・Collect sales and technical information related
to flood prevention construction〇

・Continue actions taken in FY2023

ー

Nearly ZEB designand construction One by FY2030
results

0 cases0%・Market research on energy-efficient building
needs

〇

・Continue actions taken in FY2023
・Consider ZEB Ready design

6%・Determine the specifications of rental buildings
owned・Promote ZEB and energy conservation in newly
built properties
・Promote energy conservation or asset
replacement in existing properties owned○

・Continue actions taken in FY2023△

・Stable operation of new solar power plants and acquisition of existingmega solar power plants
・Business development in collaboration with local communities andcompanies, focusing on areas with high potentials for geothermal power
generation
・Business development in small-scale hydropower generation
・Business development utilizing unused domestic materials in biomass
power generation
・Business development in collaboration with companies with newtechnologies in methane fermentation biogas power generation
・Business development in collaboration with partner companies infloating offshore wind power generation
・Development of a power storage station (grid storage batteries)
business as a renewable energy-related business・Owned properties: Promotion ofenergy conservation (equipment
upgrades), promotion of the shift torenewable energy
・New properties: Promotion of "ZEB
Ready standard specifications"

Percentage of
ZEB and energyefficient rentalbuildings ownedMore than 60% of
owned rental buildings
by FY2030

6%(3/50 cases)

FY2023 business launch project:・One solar power generation (PPA)
Regional
Environmental
8
Solutionsbusiness[Decarbonizationneeds][Strengthened
policies]
Response to global
environmental issues

Promotion of energy creation
and related businesses

Future action (FY2024 onwards)

・PPA business, power generation
business (small-scale hydropower,
geothermal, wood biomass, etc.)
・Develop comprehensive partnershipagreement business with multiple
local governments

Electricity
volumegenerated byenergy creation
business

108k MWh per year by
FY2030*Target for FY2023:
1.7k MWh0.9k MWh

0.86%©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

Preparation for scheduled FY2024 businesslaunch project:・One biomass power generation
Preparation for scheduled FY2025 businesslaunch project:・One methane fermentation biogas power
generation

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Metrics andTargets / Nishimatsu Transition Plan for CN Society [ZERO30 Roadmap] 1/2
ZERO30 Roadmap 2023
An action plan to reduce CO₂ emissions to create a decarbonized society by 2030, aiming to realize the “ZERO50 Roadmap.” It consists of an ambitious Scope 1 + 2 reduction plan (Target (1)) thatexceeds the SBT 1.5℃ certification standard*1, a Scope 3 Category 11 reduction plan (Target (2)), and an energy creation plan through renewable energy power generation projects (Target (3)).

■ [Target (1)] Scope 1+2 and [Target (3)] Energy creation
FY2020 (base year & result)

FY2020 (base year & result)

FY2030 (target year & ideal figure)

Energy conservation and diesel oil
combustion accelerator:
1.6k t-CO₂ reduction

Scope 1CO₂ by fuelconsumption［Reduction breakdown］［Residual emissions］［Energy creation volume］

Assumed emissions*: 78.6k t-CO₂

ZERO30Roadmap 2023

ZERO30Roadmap 2023

Target (1)Target (3)<External factor>
Improved fuel efficiency of construction
machinery:
8.5k t-CO₂ reduction

Residual emissions
23.5k t-CO₂

Scope 1+2
54.8% reduction
from FY2020 level

Residual emissions■[Target (2)] Scope 3 Category 11

Powerconservation,etc.:
0.4k t-CO₂
reduction

Scope 2CO₂ by electricity
consumption●ZEB design promotion (design BEI = improvement of primary energy consumption rate)
2030 target: office 0.25, residual 0.7, hospital 0.8, and others 0.5 in our design project average*In principle, DfE at ZEB Ready level is promoted.

Achieve energy creation(power generation by
renewable energy) thatexceeds residual emissions
as early as possible by
FY2030<External factor>
Power factor reduction:
9.2k t-CO₂ reduction

Power generation by
renewable energy:
Introduction of renewableelectricity:
27.3k t-CO₂ reduction

ZEB promotion, expansion,
etc.

Emissions:70.2k t-CO₂

108k MWh
Residual emissions total

31.7k t-CO₂

FY2030 (target year & ideal figure)CO₂ reduction effect:equivalent to 40k t-CO₂

3,192k t-CO₂

ZERO30Roadmap 2023
Target (2)Scope 3 (Category 11)

27% reduction

from FY2020 level

Residual emissions

2,328k t-CO₂

Residual emissions
8.2k t-CO₂

For Scope 1 + 2, we have set a target of reducing CO₂ emissions by 54.8% comparedto FY2020 levels*2, based on proactive energy-saving activities and the shift torenewable energy sources for electricity.
*1 SBT： Science Based Targets set to reduce greenhouse gas emissions aiming to achieve thegoals of the Paris Agreement. SBTi, an international initiative, promotes activities torequest companies to set SBTs and certifies them.

With regard to energy creation, we will provide society with green energy thatexceeds our Scope 1 + 2 residual emissions through solar power generation,
small-scale hydropower generation, geothermal power generation, woodbiomass power generation, biogas power generation, and other means.

For Scope 3, we target Category 11, "CO₂ emissions associated with energy use during
the operation of completed buildings," which accounts for more than 75% of the totalof Scope 1, 2, and 3 emissions, and intend to reduce this by 27% compared to FY2020
by promoting ZEB design in design-build projects.

*2: P25 explains metrics for Scope 1 and 2 reduction measures together with targets
and results in each fiscal year.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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タイトルの書式設定
Metrics andTargets / Nishimatsu Transition Plan for CN Society [ZERO30 Roadmap] 2/2
ZERO30 Roadmap 2023
The ZERO30 Roadmap 2023 is a CO₂ emissions reduction plan that is positioned as the 2030 milestone in the "ZERO50 Roadmap," which is part of the “Nishimatsu Transition Plan for CN Society." By
FY2030, we will reduce Scope 1+2 by 54.8% (by introducing renewable electricity and environmentally-friendly fuels, etc.) and Scope 3 Category 11 by 27% (by promoting ZEB design). At the same time,
as a renewable energy power generation business, we will generate 108,000 MWh of renewable energy (equivalent to a reduction of 40,000 t-CO₂), which will exceed our residual Scope 1 and 2
emissions in FY2030 (32,000 t-CO₂).

[Target (1)] Scope 1+2 reduction plan and results（t-CO₂）80,000Power factor improvement
On-site environmental measures(energy conservation)

70,00060,00050,000

Improved fuel efficiency ofconstruction machinery

Plan

ResultIntroduction of renewable electricity
40,00030,000<2030 target>
54.8% reduction

CO₂ emissions

20,000(from FY2020)

10,00002020（t-CO₂）4,000,000

2021

2022

2023

2024

2025

2026

[Target (2)] CO₂ reduction plan and results for Scope 3 Category 11

3,500,000

(MWh)
（MWh）

2028

2029

2030

（FY）

[Scope (3)] Energy creation plan by renewable energy and results

120,000
100,000

3,000,000
2,500,000

2027

80,000ResultPlan

60,0002,000,000
1,500,000<2030 target>

40,0001,000,000

27% reduction

20,000500,000(from FY2020)

2,000

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

108 k MWh

Plan

Result

1,000

0
2020

<2030 target>

（FY）

0

2021

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

2022

2023

2024

2025

2026

2027

2028

2029

2030

（FY）

22

5

Relevant Data and Results©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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マスター
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CO₂ Emissions
Results
Scopes 1, 2 and 3 emissions results●Scopes 1 and 2 *Unit: kt-CO₂

Classification

Scope 1

Scope 2

FY2022

Calculation range

FY2023Ratio• Greenhouse gas (CO₂) emissions from combustion of fuels used in business activities.
• The scope of business covers our entire group.

20.3

26.5

64.7%

＜Location-based emissions＞• Indirect greenhouse gas (CO₂) emissions derived from electricity used in business activities.
• The scope of business covers our entire group.

31.1

23.4

ー

＜Market-based emissions ＞• Indirect greenhouse gas (CO₂) emissions derived from electricity used in business activities.
• The scope of business covers our entire group.

22.7

14.5

35.3%

43.0

41.0

100.0%

Total（Scope1 and Scope2 Market-based emissions ）●Scope 3*

Unit: kt-CO₂
Category

FY2022

Calculation range

FY2023

Ratio*Scope 1 and 2 for domestic construction projects are estimates
based on sample sites (sample rate: approximately 70% on the valueof construction put in place).

Ratio of Scopes 1, 2 and 3 in FY2023

Scope 3 Cat. 13

Scope 1
1.0%

Scope 2

0.9%

0.5%

Scope 3 Cat. 1

29.9%

Scope 3Cat. 12

1 Purchased goods and services• Of products purchased by the Group, emissions of major materials (rebar, concrete, cement, H-beams, steel
pipe piles, steel sheet piles, steel frames, construction metal products, and cement products), whosepurchased volume is grasped, from the resource extraction stage to the manufacturing stage.

726.4

８０２.8

30.3%

2 Capital goods• Emissions from construction, manufacturing, and transportation of capital goods purchased or acquired by
the Group (estimated from total capital investment in FY2021)

90.2

49.1

1.9%

3 Fuel- and energy-related activities notincluded in Scopes 1 and 2• Upstream emissions in the manufacturing process of fuels and electricity purchased by the Group

4 Transportation and distribution(upstream)• Emissions from logistics (transportation from the supplier to the site) of major materials purchased by the
Group

24.6

33.9

1.3%

1.3%

5 Waste generated in operations• Of waste generated in our business activities (excluding onerous one), emissions related to "disposal" and"treatment" outside the Company, and emissions related to transportation of waste

18.4

22.0

0.8%

Scope 4 Cat. 5

6 Business travel• Emissions from fuel and electricity consumption of transportation used by Group employees on businesstrips, and emissions from fuel and electricity consumption during overnight stays (applicable only to domestic
business trips).

0.4

0.4

0.02%

Scope 3 Cat. 6

7 Employee commuting• Emissions from fuel and electricity consumption by means of transportation used by Group employees whencommuting (not including employees of cooperating companies commuting to our branch offices)

1.2

1.5

0.06%

11 Use of sold products• Of emissions from the use of buildings constructed by the Group, emissions from the consumption ofenergy from building equipment (estimated based on The Building Energy Consumption Survey published by
The Building-Energy Manager's Association of Japan) (obtained by multiplying the annual CO₂ emissions
calculated for each building type by the period of building service)

2,406.0

1,673.2

63.2％

12 End-of-life treatment of sold products• Emissions related to disposal and treatment of buildings constructed by the Group (calculated on anassumption that the physical quantity of main materials purchased by the Company is the physical quantity of“sold products” and that these will be disposed of or treated in the future)

30.4

32.1

１．2％

13 Leased assets (downstream)• Emissions from the operation of leased assets owned by the Group as a lessor and leased to others (as ofMarch 31, 2022)

22.3

25.0

０．9％

3,326.7

2,654.8

１００．０％

1.8%
Scope 3 Cat. 3

6.8

Total

Scope 3 Cat. 2

1.2%

5.9

0.2%

0.2%

Scope 3 Cat. 4

0.8%
0.02%
Scope 3 Cat. 7

Scope 3 Cat. 11

0.05%
62.3%

*Categories 8, 9, 10, 14 and 15 do not apply to our business activities.
©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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マスター
Measures タイトルの書式設定
and Results and Targets
Scopes 1 & 2 results and targets: Main reduction measures and power generation by energy creation
年

Main measure

FY2022 result

FY2023 result

FY2024 target

FY2030 target▲7.7kt-CO₂▲10.9kt-CO₂▲11.4kt-CO₂▲27,300t-CO₂

24%

47％

52%

77%

Renewable electricity introduction rate (domestic civil engineeringbusiness)

32%

52%

52%

80%

Renewable electricity introduction rate (domestic office and othernon-construction activities)

68%

94%

91%

100%

Renewable electricity introduction rate
(international business）

0%

0%

2%

60%

Renewable electricity introduction rate
（asset value-added business）

6%

15%

55%

100%

Renewable electricity introduction rate
(Group companies)

5%

22%

18%

100%

▲1.5kt-CO₂▲1.2kt-CO₂▲1.2kt-CO₂▲2.0kt-CO₂

49%

52%

70%

100%

7 sites

3 sites

4 sites

5 sites

Approx. 0.3k MWh

Approx. 0.9 k MWh

Approx. 14k MWh

Approx. 108k MWh

CO₂ emissions reduction by renewable energy(Group-wide)
Renewable electricity introduction rate (Group-wide)

Introduction ofrenewable
electricity

On-siteenvironmental
measures(energyconservation)

CO₂ emissions reduction by energy conservation
Introduction rate of diesel oil combustion accelerators

Number of sites where N-TEMS is installed*Nishimatsu Tunnel Energy Management System

Amount of energy created (renewable energy generation)©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Relevant Data
Climate-related environmental data
●Domestic Group

年

Item
Water

Unit

Water

FY2022

FY20231,000m3

723

468

MWh

57,84048,430

kl

7,155

9,407

emissions

kt

452

697

Specially controlled industrial waste

kt

0.07

0.4

Electricity
EnergyFuel

Industrial waste<Scope of calculation>
Scope of domestic group: Nishimatsu Construction (civil engineering/building construction activities, office and other non-construction activities, development and real estate business) and consolidated subsidiaries (Nishimatsu Jisho, Sci Tech Farm)*CO₂ emissions and water usage during construction are based on sampling surveys.
*CO₂ emissions are calculated based on the CO₂ emission factor specified by the Global Warming Countermeasures Act.

● CO₂ emissions intensity of domestic construction business

CO₂ emissions intensity

Subject

Unit

Civil engineeringｔ-CO₂/billion yen

2.10

2.34

Building construction

ｔ-CO₂/billion yen

0.50

0.41

All

ｔ-CO₂/billion yen

1.11

1.01

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

FY2022

FY202326

6Additional Information©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Engagement/ Global Initiatives
Participation in RE100

年

We joined RE100* in September 2021, committing to using renewable energy for 60% of all electricity consumption by 2030 and 100% by 2050.
The ZERO30 Roadmap 2023 plans to convert 77% of all electricity consumption to renewable energy by FY2030.
[RE100 Members] https://www.nishimatsu.co.jp/news/2021/re100.html
RE100: A global initiative that aims for companies to cover 100% of the electricity used in their businesses with renewable energy.
Target and result for renewable electricity consumption rate in business activity

Base
year

FY2021 result

FY2022 result

FY2023 result

FY2030 target

FY2050 target

RE100

2020

ー

ー

ー

60％

100％

Our target andresult

2020

3%

24%

47%

77％

100%

Acquisition of SBT Certification
In June 2022, we acquired SBTi certification (WB2°C) for our group-wide GHG reduction targets.
We then reviewed our CO₂ emissions reduction plan (formulation of the ZERO30 Roadmap), andbased on this plan, we will have our certification renewed at the SBT 1.5°C level by the end of FY2024.
[Acquisition of SBT certification SBT] https://www.nishimatsu.co.jp/news/2022/sbt.html©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Engagement/ Domestic Initiatives and Industry Associations
We actively participate in various domestic initiatives and industry associations, making proposals that help solve problems at meetings, expressing opinions on policy recommendations, andoffering our support so as to contribute to building a decarbonized society.

Participation in Japan Climate Initiative (JCI)In 2018, we joined the Japan Climate Initiative (JCI)* and support the initiative's recommendations to policymakers in order to promotedecarbonization in Japan.
In December 2023, we endorsed a recommendation to implement carbon pricing to simultaneously achieve the 2030 GHG emissions reduction
target and strengthen international competitiveness.
*Japan Climate Initiative (JCI): A network established in 2018 to strengthen information dissemination and opinion exchanges among companies, local governments and NGOs that actively implement
climate actions.

Joining Japan Climate Leaders’ Partnership (JCLP)
Nishimatsu joined the Japan Climate Leaders' Partnership (JCLP)* in June 2021 and has been participating in activities to promote the spread ofrenewable electricity.
We actively engage in corporate discussions at events like the RE100 Strategy Conference, where we contribute to policy proposals by identifying
key issues and exploring solutions related to renewable electricity procurement.
[Joined Japan Climate Leaders' Partnership (JCLP)] https://www.nishimatsu.co.jp/news/2021/jclp.html* Japan Climate Leaders' Partnership (JCL): A distinctive Japanese corporate group established in 2009 based on the recognition that, in order to realize a decarbonized society, the industry
sector must have a sound sense of urgency and begin to take proactive action. As of March 2024, it boasts 249 companies, including prominent players from various industries in Japan.

Decarbonization Promotion Activities of the Japan Federation of Construction Contractors
As a member of the Japan Federation of Construction Contractors, and in the environmental field, we take part in the Environmental Committee and its various subcommittees, including theEnvironmental Management Subcommittee and the Global Warming Subcommittee. Our focus is on implementing specific measures to reduce CO₂ and working to elevate the federation's
targets.
In FY2023, the Global Warming Subcommittee extensively discussed reviewing the calculation and aggregation methods for CO₂ emissions in the business activities of member companies of theJapan Federation of Construction Contractors.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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External Evaluation
on Nishimatsu Climate Information
We have been recognized by the following ministry and agency as having good practices of effective communication with investors and other stakeholders through disclosure such as "Nishimatsu
Climate Information 2023.“

Financial Services Agency "Collection of Good Practices on Disclosure of Narrative Information 2023 (Released in December 2023)”
Nishimatsu was featured by the Financial Services Agency in its "2023 Collection of Good Practices on Disclosure of Narrative Information (Examples of Disclosure of Sustainability-RelatedConcepts and Initiatives in Securities Reports)" published in December 2023.
This compilation highlights effective practices related to our disclosure in alignment with TCFD recommendations, and covers topics such as report line in governance, quantitative scenario
analysis and visual representations using waterfall charts within our strategy, our roadmap toward carbon neutrality in 2050, CO₂ emissions results by scope and category in terms of metrics
and targets, and so on.
[Collection of Good Practices on Disclosure of Narrative Information 2023] https://www.fsa.go.jp/news/r5/singi/20231227/05.pdf

Ministry of Land, Infrastructure, Transport and Tourism "TCFD Guidance for the Real Estate Sector (Published in March 2024)”
Our advanced practice was introduced in the revised “TCFD Guidance for the Real Estate Sector” released in March 2024 by Real Estate Market Division, Real Estate and Construction Economy

Bureau, Ministry of Land, Infrastructure, Transport and Tourism.
The guidance outlines key points of our good practices related to disclosure in alignment with TCFD recommendations, including specific explanations of matters that may have a financial
impact over time and by scope within our strategy (scenario analysis), and in metrics and targets, metrics used to measure climate-related risks and opportunities, trends in GHG emissions
targets and results, and considerations made on these results, etc.
[TCFD Guidance for the Real Estate Sector (main text)] https://www.mlit.go.jp/totikensangyo/content/001734387.pdf©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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References©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Prerequisites
for Scenario Analysis(Reference) Change in average temperature in each scenario◼ Change in global average temperatureby transition scenario according to IEA◼ Change in global average temperatureby physical scenario according to IPCC* Sixth Assessment Report
Adopted scenario
(4°C)

C

℃

3.0

STEPS

2.5

2.0

APS

1.5

SDS
E

1.0

Adopted scenario(1.5°C）

0.5
Short-term: 2025 Medium-term:
2030

2000

2020

2040

Long-term: 2050

Adopted scenario
(4°C)

℃

5.0

SSP5-8.5

4.0

SSP3-7.0

3.0

SSP2-4.5

2.0

SSP1-2.6
SSP1-1.9

1.0

Adopted scenario(1.5°C）

0
Short-term: 2025

(FY)

-1.0

2060

2080

2100

Source: International Energy Agency “World Energy Outlook 2021”

１950

2000

2015

Medium-term: Long-term: 2050
2030
2050

(FY)
2100

Source: IPCC Sixth Assessment Report Figure SPM.8 (a) Global surface temperature change relative to 1850–1900*IPCC: Intergovernmental Panel on Climate Change (United Nations body), founded in 1988 to provide comprehensive
assessments from the scientific, technical and socio-economic standpoints on human-induced climate change, impacts,
and adaptation and mitigation options. The assessment reports and other information provided by the IPCC, including
temperature rise scenarios, are widely used in scenario analysis in the TCFD.

©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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Key Parameters
for Scenario Analysis(Reference) Key parameters in each scenario
Parameter

SourceCarbon price (yen/t-CO₂)

IEA “Net Zero by 2050 A Roadmap for the Global Energy Sector”

Labor reduction rate due to heat stress (%)

ILO “Working on a warmer planet 2019”

Ratio of extreme high temperature occurrence associated withtemperature change (%)

IPCC “Sixth Assessment Report”

Frequency of heavy rain events on land (occurring once every 10 years)

IPCC “Sixth Assessment Report”

Renewable energy introduction trends and 2030 introduction targets

Agency for Natural Resources and Energy "Future Renewable Energy Policy" (April 2022)

Market size for clean energy use (yen)Ministry of the Environment “Summary of FY2020 Report on the Market Size and Employment of the Environmental
Industry”

Purchase rate of environmentally-friendly homes (%)

Dentsu "Ethical Consumption Awareness Survey 2022" (June 2022)

ZEB floor area extension rate (%)

IEA “ETP（Energy Technology Perspectives） 2017”

Flood occurrence rate (%)

WWF “Water Risk Filter”

Renewable electricity generation volume (GWh)

IEA “WEO (World Energy Outlook) 2022”©2024 NISHIMATSU CONSTRUCTION Co., Ltd. ALL RIGHTS RESERVED.

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