Business strategies for value creation

Initiatives for the realization of a decarbonized society
Initiatives for environmentally friendly design
Eco-product certification system
The eco-product certification system is an in-housesystem that certifies products with high environmental
conformance that lead to solutions to climate change
issues and to the reduction of agriculture’s burden on
the environment. Certified products that clear ISEKIoriginal evaluation criteria in areas such as conservationof energy and labor, environmental burden reduction,
resource conservation, and consideration of biodiversity,
are granted environmental labels, which are conveyed tocustomers through product catalogs and user manuals inan easily noticeable format. Further, the environmental
label conforms to Type II stipulated under ISO14021 (selfdeclared type that does not need third-party certification).

Examples of certified products
SXG327 and SXG324 riding lawn mowers for Europeand Oceania.
We certified the SXG327 and SXG324 riding lawn
mowers as eco-products. These lawn mowers featureengines compliant with the EU Stage V emission
standard, thereby meeting Europe’s stringent exhaustgas regulations. They also offer improved engine
horse power and maximum speeds compared withconventional models, as well as enhanced work
efficiency thanks to higher-capacity grass catchers, andcompatibility with use of HVO* fuel.
Use of HVO fuel promises to reduce environmental
burden, primarily by curbing CO2 emissions.

Example of environmental label
Super-eco productXX environmental burden
reduced by YY%(compared with conventional
ISEKI model ZZ)

Super-ecoproductRealized outstanding environmental
performance through notable functions
Environmental burden reduction of10% or more in usage compared toconventional models
Product that has cleared
in-house standard

Eco-product*HVO (Hydrotreated Vegetable Oil): A biofuel manufactured from waste oil produced in
the food industry and surplus vegetables resulting from agricultural production, among
other raw materials. Vegetable oil is hydrotreated to convert it into aliphatic hydrocarbon,
which can be used in diesel engines.
HVO diesel is already available at gas stations in Europe, and is commonly usedparticularly in Northern Europe, where public regulations of environmental issues aremost stringent.

Initiatives toward electrification of agricultural machinery
We believe that the electrification of agricultural machinery will grow intoa major pillar for the realization of a decarbonized society. In anticipationof a decarbonized era, ISEKI Group started joint research with Ehime
University in 2010 and announced a prototype electric tractor in 2012.
After conducting further technical research toward commercialization,in 2022 we undertook limited sales of the SXGE2, an electric riding
lawn mower powered by lithium-ion batteries targeting the European
landscaping market, and started identifying needs in the European
market as a whole.

Electric tractor prototype(2012)

SXGE2 electricriding lawn mower(2022)

Initiatives for the promotion and expansion of environmentally sound agriculture
ISEKI Group is working to promote and expand environmentally soundagriculture, which aims to reduce the volumes of chemical fertilizers
and agrochemicals used. Reduction in the use of chemical fertilizers andagrochemicals derived from fossil fuels is expected to be effective indecarbonization. Our efforts to promote and expand environmentally soundagriculture include focusing on promoting sales of products that contributeto reduction of chemical fertilizers by utilizing advanced technologies anddata, and products that contribute to reduction of agrochemicals by saving
labor on maintenance work such as weeding. Other initiatives include working
to create new agricultural technologies by collaborating with national andlocal governments, private-sector companies, and farm producers to conduct
demonstrations of smart agricultural machinery and farm business technologies.
(Please refer to p. 33 for information about innovation based on collaboration)

A variable fertilizer rice transplanter
Controls the quantity of fertilizer used in real time
according to the results of soil measurements