Established June 1, 2019
Revised November 30, 2023

TODA KOGYO CORP.

Environmental Vision
Commitments of Top ManagementThearising

world is facing
fromglobal

serious problems

warming,suchasabnormal weather conditions, environmental
pollution, resource depletion, international
conflicts,

widening

dividesanddiscrimination. To resolve these issues, anumber of initiatives aimed at creating asustainable society are being pursued. They
include corporate social responsibility (CSR)
activities,

creating

sharedvalue(CSV)

activities, efforts to meet the sustainable
development

goals(SDGs)andenvironmental, social, and governance (ESG)investment.
The TODA KOGYO Group has long beenworking to reduce its environmental impact,

Tsuneaki Kubo, President and CEO

regarding this task as an obligation we haveas a chemical materials manufacturer. One example is a shift from dry synthesis
methods that have a large environmental impact to wet synthesis methods thathave a small impact. Another is to recycle waste fluid generated from steel sheet
manufacturers into resources.
To further accelerate the reduction of our environmental impact and thesafety management of chemical substances, we have revised our Environmental
Vision in line with a sustainability approach. We will operate based on thisEnvironmental Vision with a view to realizing a sustainable society together with
our stakeholders.

Environmental Policy
The TODA KOGYO Group will be taking action to protect theenvironment on a groupwide scale. Our officers and employees areaware that our business activities and actions to protect theenvironment are inseparable. On that understanding, we will practiceresponsible environmental management in accordance with the ISO
14000 series of standards.

Environmental Code of Conduct
1. Set challenging environmental protection goals
Officers and employees will set ambitious goals before they are demanded
by society and will strive to realize a sustainable society.

2. Learn actively to understand environmental impacts
Officers and employees will each learn actively with an open mind towards
society and will endeavor to understand the environmental impacts ofsupply chains.

3. Develop technologies helpful to the environment and reduce theenvironmental impact of products
Officers and employees will endeavor to develop technologies that willaddress environmental issues while reducing the environmental impact ofour products.

4. Pursue continuous improvement with all personnel involved
Officers and employees will all participate in activities to use resources
effectively and to prevent environmental incidents.

5. Collaborate and communicate with stakeholders
Officers and employees will take action to protect the environment incollaboration with stakeholders and will communicate in a way that meetsstakeholder expectations.

Management StructureTo

implementandmanage

theBoard of Directors

Environmental Vision on a Group-wide scale,
we have established the CSR and Environment
Committee

undertheRisk

Committee chaired by the President and CEO.
Itisresponsiblefor

ReportDecide / Oversee

Management

oversight

Management
Conferenceandmanagement of environmental issues for theRisk Management Committee(Chairperson: Representative Director)

Group in Japan.
The

BoardofDirectors

confirms

theprogress of the Environmental Vision throughReportInstructions on
Corrective Action

reports received from the Risk Management
Committee,

andmakesdecisionsandsupervises the development of the necessary

CSR and Environment Committee(Chairperson: Department Manager ofthe Corporate Planning Department)

systems and schemes. The general manager of
the Corporate Planning Department serves as chairperson of the CSR andEnvironment Committee, whose members comprise managers and personnel
from business sites across the Company.

Five Pillars of Environmental Management
We have identified five pillars of environmental management that constitutethe core of activities from the perspective of the four sustainability principles.

‑

Conserving biodiversity‑

Reduction of greenhouse gas emissions‑

Conserving water resources‑

Providing products and technologies that are in harmony withthe environment‑

Acting to form a recycling-oriented societyConserving biodiversity
The 15th Conference of the Parties to the United Nations Convention on
Biological Diversity in 2022 (COP15) adopted the Kumming-Montreal Global
Biodiversity Framework, which serves as a successor to the Aichi Biodiversity
Targets. It requires businesses to assess the risks and impacts of supply chainsand portfolios on biodiversity and to conserve and make good use of naturalresources. The TODA KOGYO Group will carry out activities aimed at conserving
biodiversity through its business activities and through general lifestyles.
Major Initiatives
1. Provide education to employees to deepen their understanding ofbiodiversity conservation
2. Assess impacts on biodiversity in the development process
3. Ask suppliers to conserve biodiversity in the procurement process
4. Endeavor to reduce the environment impact on surrounding areasin the production process
5. Carry our regional cleanup, tree-planting and animal and plantpreservation activities at individual offices and plants.

Reduction of greenhouse gas emissions
Climate change issues are becoming increasingly apparent with each passing
year. They are now producing serious impacts on the environment around theworld. According to the Sixth Assessment Report of the United Nations
Intergovernmental Panel on Climate Change (IPCC AR6), humanity needs to cut
greenhouse gas (GHG) emissions by 43% from the 2019 level in order to limit
the temperature rise to 1.5°C. The TODA KOGYO Group defines climate change
as one of its material issues and seeks a world where warming is limited to 1.5°C.
Targets (in Japan for 2030 in comparison with the 2013 levels)
Scope 1 + Scope 2 GHG emissions
75% reduction (to total emissions of 22,000 t-CO2)
GHG emissions based on net sales
Down 70%
Use of renewable energy
At least 17%

Conserving water resources
The TODA KOGYO Group uses a large amount of water resources as a solvent
in wet synthesis, for cooling and cleaning of products and for other purposes in
the product manufacturing process. We detoxify the water used in thewastewater treatment process and discharge all processed water to rivers andthe sea. To offer products with high purity and with high performance, we needto secure water resources with proper quality in sufficient quantities. In addition,
to ensure business continuity, we need to manage the quality of discharged
water on the basis of strict standards. The TODA KOGYO Group takes thefollowing actions for the purpose of making effective use of water resources.
Major Initiatives
Reduce water consumption(by controlling water intake according to the state of production andadvancing the cascade use of water)
Implement the firm management of discharged water(by strictly observing the water discharge standards and thoroughly
maintaining wastewater treatment facilities)
TargetWater consumption per unit of production volume
Less than or equal to the level in the previous fiscal year
Water discharge per production volume
Less than or equal to the level in the previous fiscal year

Providing products and technologies that are inharmony with the environment
Issues facing human society and the global environment are becoming
increasingly complicated and changing across a broader range. Businesses facea test about their attitudes towards these issues and their capacity to resolve
them. To fulfill our Purpose, which reads, "We transform the potential of fineparticles into new possibilities for our world," the TODA KOGYO Group will deploy
the fine particle synthesis technologies it has developed over many years insupport of innovation.

Targets (2030)
Percentageofenvironmentallyharmonizedorenvironmentallyconsidered* development
70% or higher* Research and development subjects are evaluated based on the beneficialeffect they have with respect to the environment into three categories:
environmentally harmonized, environmentally considered and standard subjects.

Acting to form a recycling-oriented society
The TODA KOGYO Group will carry out the reduce-reuse-recycle initiative,
known as 3R, in a comprehensive manner. We will work to contribute to theenvironment and to reduce environmental impacts in all phases including
procurement, development, manufacturing, transport, sales, recycling anddisposal. We will take the necessary measures for raw materials and products tofulfill the obligations that we as a business operator have under the Basic Act on
Establishing a Sound Material-Cycle Society and the Act on the Promotion ofEffective Utilization of Resources. We will make independent efforts to create arecycling-oriented society and cooperate in measures implemented by nationalor local governments.
Targets (2030)
Industrial wastes

25% reduction (in Japan from the 2013 level)
Conversion of crude raw materials and by-products into raw materials3 or more
Commercialization of battery material recycling

Contact : CSR & Environment Management Group