Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Note : This document has been translated from a part of the Japanese originalfor reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Nippon Sanso Holdings Corporation - Climate
Change 2023

C0. Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
The Nippon Sanso Holdings Corporation (hereinto referred to as NSHD) was founded in 1910 as
Nippon Sanso Ltd. In 1918, NSHD formally changed its name to Nippon Sanso and in 2004, mergedwith Taiyo Toyo Sanso Co., Ltd to become Taiyo Nippon Sanso Corporation (hereinto referred to as
TNSC). From there, in 2014, TNSC became a consolidated subsidiary of Mitsubishi Chemical
Holdings. On the other side, in 2018, through Nippon Gases Euro-Holdings S.L.U, NSHD acquired astake in a corporation that operates part of Praxair, Inc's European operations. In 2019, NSHD
acquired a portion of the HyCO business and related assets of Linde Gas North America LLC throughMatheson Tri-Gas, Inc. and transitioned NSHD to a holding company structure effective October 1,
2020. Classified in the chemical industry, NSHD's primary business is the production and sale ofoxygen, nitrogen, and argon, which are typical industrial gases, and other industrial gases such ascarbon dioxide, hydrogen, helium, LP gas, and specialty gases for semiconductor applications. NSHD
is comprised of 206 consolidated companies employing a total of 19,579 people worldwide (as ofMarch 31, 2023). Under the previous Medium-term Management Plan, "Ortus Stage 2," during theperiod from the fiscal year ending March 31, 2018, to the fiscal year ending March 31, 2021, theCompany achieved the following results: "Globalization and expansion ofpresence through the acquisition of European businesses and HyCO business in the United States,""Expansion of specialty gas business for electronics in East Asia," "Production capacity expansion in
the United States and Asia”. Moreover, in October 2020, we transitioned to a pure holding company
structure, and have formulated "NS Vision 2026 - Enabling the Future," which will conclude in thefiscal year ending March 31, 2026. “NS Vision 2026" is based on the business management structureof "four geographic hubs and the Thermos business," and in addition to financial KPI targets, nonfinancial KPI targets have also been newly established, along with five key strategies (sustainability
management, exploring new business toward carbon neutrality, total electronics, operational
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

excellence, and DX initiatives) as we aim to strengthen the Group's overall capabilities and achieve
growth.

C0.2(C0.2) State the start and end date of the year for which you are reporting data andindicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
April 1, 2022

End date
March 31, 2023

Indicate if you are providing emissions data for past reporting years
No

C0.3(C0.3) Select the countries/areas in which you operate.
Australia
Belgium
CanadaChina
Denmark
FranceGermany
India
Indonesia
IrelandItaly
Japan
Malaysia
Myanmar
Netherlands
NorwayPhilippines
Portugal
Republic of Korea
Saudi Arabia
Singapore
Spain
SwedenTaiwan, China

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Thailand
United Kingdom of Great Britain and Northern Ireland
United States of America
Vietnam

C0.4(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
JPY

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Financial control

C-CH0.7(C-CH0.7) Which part of the chemicals value chain does your organization operate in?
Row 1
Bulk organic chemicals

Bulk inorganic chemicals
Hydrogen
OxygenOther industrial gasses

Other chemicals

C0.8(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier foryour organisation

Provide your unique
identifier

Yes, a Ticker symbol

4091

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position

Responsibilities for climate-related issuesofIndividual
orcommittee
Chief
Executive
Officer(CEO)

NSHD has established the Nippon Sanso Holdings Group Environmental Policy byresolution of the Board of Directors, which states "we will technically contribute to
the resource-recycling society and to the development of sustainable society byharmonizing with environment and endeavoring to reduce environmental impact inour business activities under the direction of top management. As stated in this policy,
NSHD's President and CEO is responsible for addressing climate change-related issues
as delegated by the Board of Directors. The CEO chairs the Global Strategy Review
Committee and the Global Risk Management Committee in accordance with the rules
and regulations established by the Board of Directors and is responsible for determining
group-wide business strategies at the former meeting and ensuring the effectiveness of
NSHD's risk management at the latter meeting. Through these meetings, the CEO also
considers NSHD's specific responses to climate change-related issues. An example of adecision made by the Board of Directors is the Medium-Term Management Planannounced on May 11, 2022, which presents the following five key strategies:
sustainability management, the pursuit of new business as a means of reaching acarbon neutral society, expansion of our electronics business, operational excellence
and DX initiatives. In addition, we will set a target to reduce GHG emissions by 18% in
FYE2026 and 32% in FYE2031 compared to FYE2019, and to become carbon neutral
by FYE2050. It is through the above goals that we are attempting to accelerate our
response to climate change.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Frequency Governance
Please explain
with which mechanisms
climateinto which
relatedclimateissues are related issuesascheduled
agenda it

are integrated

Scheduled– some

Reviewing and The Global Strategy Review Committee is held once a year to review
guiding
the strategies of each operating company in the formulation of thebudget for the next fiscal year. At the meeting, the operating
annualcompanies report on their sustainability strategies, which include
budgets
climate change issues. The results of the meeting are reported to theOverseeing
Board of Directors in the form of a budget proposal.
major capitalmeetings

expenditures
Overseeing
acquisitions,mergers, anddivestitures

The Global Risk Management Committee is a body that deliberates on
the selection of NSHD's key risks and measures to address them andis held once a year. Climate change risk is also included in the risks to
be considered by the meeting, and the results of the meeting arereported to the Board of Directors.

The Executive Committee deliberates on the formulation andmonitoring of the Medium-term Management Plan and investment
projects. In formulating the medium-term management plan, NSHD's
employeeapproach to climate change issues during the time frame set by the
incentives
Medium-term Management Plan and the setting of targets are
Reviewing and discussed. In addition, the impact of each investment on climate
guidingchange issues are also discussed during the deliberation of individual
strategy
investment projects. The Medium-term Management Plan andinvestment projects are proposed to the Board of Directors afterOverseeing
deliberation by the Management Committee.
and guiding
Once a year, the Board of Directors discuss the MOS indexes, whichthecontain the targets for reducing GHG emissions and otherdevelopment
environmental targets as well as the targets for the next fiscal yearof atransition plan and the results of the previous year with respect to quality, safety, andsecurity.
Monitoring theOverseeing
and guiding

implementationof atransition plan
Overseeing thesetting ofcorporate
targets
Monitoring
progress5

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

towards
corporate
targets
Reviewing andguiding the risk
management
process

C1.1d(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board
member(s)Criteria used to assess competence of board member(s) on climaterelated issues

havecompetence
on climaterelated
issuesRow1 Yes

The committee comprehensively evaluates applicants who have served as amanager in charge of environment-related management for at least two years.
NSHD has a Global Strategy Review Committee that makes decisions ongroup-wide business strategies and a Global Risk Management Committeethat decides on group-wide risk management policies. At the Global Strategy
Review Committee, the Chief Sustainability Officer (CSO), who is responsible
for NSHD's sustainability activities, reports on the results of NSHD's overallsustainability activities during the year, including GHG emissions reductions,and determines targets for the next fiscal year. The latter is also held at the
Global Risk Management Committee. At the meeting, business risks facing
NSHD are assessed based on frequency of occurrence and financial or
strategic impact, and countermeasures are discussed based on theseassessments. The decisions made at these two meetings are reported to theBoard of Directors, which determines NSHD's strategy for climate change
issues.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.

Position or committee
Chief Executive Officer (CEO)6

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Providing climate-related employee incentives
Developing a climate transition plan
Implementing a climate transition plan
Conducting climate-related scenario analysis
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities

Coverage of responsibilities<Not Applicable>

Reporting line
Reports to the board directly

Frequency of reporting to the board on climate-related issues via thisreporting line
Quarterly

Please explain
The President (CEO) of NSHD is responsible for climate-related issues and chairs the Global Strategy
Review Committee and the Global Risk Management Committee in accordance with the rules set
forth by the Board of Directors and is responsible for determining group-wide business strategies in
the former and ensuring the effectiveness of NSHD's risk management in the latter. The former is
responsible for determining the Group's overall business strategy and the latter for ensuring theeffectiveness of NSHD's risk management. Through these meetings, the President (CEO) considers
NSHD's specific responses to climate change-related issues. The Global Strategy Review Committee
is held once a year to confirm the strategies of each operating company in the formulation of the next
year's budget. It is also in this committee where the Chief Sustainability Officer (CSO), who is
responsible for NSHD's sustainability activities, reports on the results of NSHD's overall sustainability
activities during the year, including GHG emissions reductions, and determines targets for thefollowing year. The results of the meeting are reported to the Board of Directors in the form of abudget proposal, while sustainability activities are reported separately to the Board of Directors. The
Global Risk Management Committee, which meets once a year, deliberates on the selection of
NSHD's major risks and measures to address them. At the FYE2023 meeting, the development oftechnologies necessary for NSHD to reduce GHG emissions were also identified as a risk, andstrategies for NSHD to address this risk were discussed. The meeting also discussed the strategies
that NSHD should take to reduce GHG emissions.

The Executive Committee deliberates on the formulation and monitoring of the Medium-termManagement Plan and investment projects. Medium-term Management Plans and investment
projects are proposed to the Board of Directors after deliberation by the Management Committee. The
current Medium-term Management Plan was announced on May 11, 2022, after discussions by the
Executive Committee and the Board of Directors and covers the four-year period from FYE2023 to7

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

FYE2026. In the plan, NSHD defined five key strategies, two of which are "Sustainability
Management" and "Exploring New Business Toward Carbon Neutrality". In addition, NSHD has set a
goal to reduce GHG emissions by 18% in FYE2026 and 32% in FYE2031 compared to FYE2019, andto become carbon neutral by FYE2050, and to accelerate its response to climate change-related
issues by setting a target that the amount of GHG reduction contribution from its environmental
contribution products will exceed NSHD's GHG emissions in FYE2026. The CEO is responsible forthe implementation and achievement of these goals. The progress of the Medium-term Management
Plan is regularly monitored by the Board of Directors. The Executive Committee and the Board of
Directors also deliberate on individual investment projects, discussing whether and to what extent
each investment project will increase GHG emissions, contribute to the reduction of customers' GHG
emissions, and impact the project will have on climate change issues.

C1.3(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives for the management of climate-related issues

Comment

Row 1 Yes

C1.3a
(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).

Entitled to incentive
Chief Sustainability Officer (CSO)

Type of incentive
Monetary reward

Incentive(s)Bonus – set figure
Promotion

Performance indicator(s)Achievement of climate transition plan KPI
Achievement of a climate-related target
Reduction in absolute emissions

Incentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)As part of NSHD's sustainability management, the CSO, an NSHD executive officer, is
responsible for risk management tasks related to safety, security, and the environment.
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Reducing the number of safety, security, and environmental incidents to zero is includedin the CSO's performance evaluation.

Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
GHG reduction targets are included as a part of the CSO's performance evaluation.

C2. Risks and opportunities
C2.1(C2.1) Does your organization have a process for identifying, assessing, andresponding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
From(year) To (years)

Comment

Short-term

01

It is linked to NSHD's business plans.

Medium-term

1

10

It is linked to NSHD's business plans.

Long-term

1030

It is linked to our stand-alone climate change goal.

C2.1b(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
NSHD is enhancing the risk management systems of NSHD companies to ensure early detection ofrisks that may hinder the achievement of business objectives over a long period of time exceeding 10
years, to prevent their manifestation, and to respond promptly when they do manifest. Risk priority isdetermined by the "frequency of occurrence multiplied by by financial or strategic impact on NSHD".
In quantifiable terms, materiality is defined as an expected financial impact of 2,000 million yen or
more (with a frequency of occurrence of at least once a year). The process for determining thefinancial or strategic impact of a business risk is done in the Global Risk Management Committee
chaired by the CEO and attended by representatives from domestic and overseas operatingcompanies at least once a year. They then proceed to deliberate, identify, and approve ofcountermeasures over significant risks that require NSHD-wide action. Matters decided by the Global
Strategy Review Committee are discussed at the Technological Risk Liaison Conference (held atleast twice a year), which is held separately by NSHD and its regional representative companies, todiscuss measures to deal with the risks.
Climate change is one of these risks, and GHG emission reduction plans and other measures are
discussed at the regional representative companies to address climate change issues.

9Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climaterelated risks and opportunities.

Value chain stage(s) covered
Direct operations
Upstream
Downstream

Risk management process
Integrated into multi-disciplinary company-wide risk management process

Frequency of assessment
More than once a year

Time horizon(s) covered
Short-term
Medium-termLong-term

Description of process[Process Details]
The selection and evaluation of significant company-wide risks at NSHD and the deliberation of
measures to address them are centralized in the Global Risk Management Committee, which meetsonce a year. Climate change risk is also included in the risks to be considered by the meeting, andany risks that may have an impact, whether short-term (1 year), medium-term (10 years), or long-term(20 years) risks, are discussed, and the results of the meeting are reported to the Board of Directors.
Risk selection takes into account not only direct operations, but also upstream and downstream,including NSHD's customers and suppliers.
The identified risks are reflected in the business strategy through the Global Strategy Review
Committee. The Global Strategy Review Committee is held once a year to confirm the strategies ofeach operating company for the preparation of the next year's budget. At the same meeting, theoperating companies report their strategies for sustainability based on the risks identified by them,which includes climate change issues. The results of the meeting are reported to the Board of
Directors in the form of a budget proposal.
The Technology Risk Liaison Conference takes the lead in risk response. Based on the results of the
Global Strategy Review Committee, NSHD and each operating company discuss risks, including
climate change issues, individually to resolve the risks. This risk committee meeting is held at least
twice a year for each operating company, and risk countermeasures, including climate change issues,
are disseminated throughout the company.

[Identification, Assessment, and Management Process for Climate-Related Risks]10

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

In order to identify long-term climate change-related risks at an early stage, prevent them frommaterializing, and take prompt action when they do materialize, risk management systems at NSHD
companies are mainly handled by the Technology Risk Liaison Conference, the Global Strategy
Review Committee, and the Global Risk Management Committee. The importance of risks andopportunities are determined by the Global Risk Management Committee based on "frequency ofoccurrence multiplied by financial or strategic impact," and the impact on the business is determined
once a year by the Global Strategy Review Committee, chaired by the CEO. From there, mattersdetermined by the Global Strategy Review Committee are discussed at the Technology Risk Liaison
Conference held by NSHD and each operating company to determine specific countermeasures, after
which the countermeasures are implemented globally.

C2.2a(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
relevance Please explain&
inclusion
Current

Relevant,

regulation

alwaysincluded

NSHD produces and supplies industrial gases such as oxygen, nitrogen,argon, hydrogen and helium, as well as medical and electronic material
gases in Japan, the United States, Europe, Australia and Asia.
In Japan, the "Global Warming Tax" was implemented in stages from
October 1, 2012, and the increase to the final tax rate scheduled at the timeof its introduction was completed on April 1, 2016. NSHD used 35,196 TJ ofenergy in its Japan Gas operations in FYE2023, which, when converted toOECD tons of oil equivalent, amounts to 800,611 tons of gasoline.
Currently, 760 yen per kℓ of oil is taxed, but if the "Global Warming Tax" isincreased to achieve carbon neutrality by FYE2050, it may lead toincreased costs and a reduction in profits. If the tax is increased by 250 yen
per kℓ, an additional cost of 200.2 million yen would be incurred.

Emerging

Relevant,

regulation

alwaysincludeAs decarbonization efforts accelerate worldwide, including Europe, Japanannounced in October 2020 its policy to become carbon neutral by
FYE2050. In order to achieve this goal, it is expected that regulations andinitiatives that are being evaluated in Europe, such as carbon taxes andemissions trading, will be introduced in Japan in the future.
Taiyo Nippon Sanso emits approximately 2,054 [thousand tCO2] in
FYE2023, which requires an additional cost of 20,540 million yen,assuming a CO2 unit cost of 10,000 yen/t-CO2 of the European carbon tax.
This is equivalent to approximately 65% of NSHD's operating income inJapan, which could lead to a significant decrease in NSHD's profits andmake it difficult to manage its business.

Technology Relevant,alwaysNSHD has three fundamental technologies that support its industrial gas
and electronics businesses: plant engineering technology, led by air

11Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Legal

includeseparation equipment; gas handling technology, which produces, mixes,
and purifies a wide variety of gases; and gas application (gas utilization)technology, which proposes gas utilization technologies for the three basic
technologies. Among these are, gas application technology using industrial
gases as the main technology that can contribute to the reduction of GHG
emissions. However, if, for example, the contribution of oxygen burners in
reducing GHG emissions is inferior to that of other companies' products interms of efficiency, it would affect sales of oxygen burners and otherproducts that NSHD sells to reduce electricity use in industrial furnaces,
especially due to growing environmental concerns, and there is also a riskof losing commercial rights to oxygen itself. We recognize that this is atechnological risk in that business risk may arise without continued
technological development, and for this reason NSHD is working tomaintain the technological superiority of its oxygen burners and otherproducts through aggressive investment in R&D (research anddevelopment) for commercial products that contribute to the environment.

Relevant,

Failure to reduce the large volume of GHG gas emissions poses the samerisk of new lawsuits from the public as environmental problems caused byhazardous substances in the past. In recent years, there have been cases
in other countries where lawsuits have been filed by shareholders and otherstakeholders for inadequate disclosure of information on climate change
issues and their reflection in business strategies. Although NSHD has
never been subject to such lawsuits, NSHD has four sites in Japan that
emit over 100,000 tons of GHGs, and it is reasonable to consider that there
is a risk of lawsuits from stakeholders and the general public.

alwaysincludeMarketRelevant,
alwaysincludeReputation Relevant,alwaysincluded

NSHD's core business, the production of industrial gases, requires
significant amounts of electricity in the manufacturing process. Most of thispower consumption is used to operate air separation equipment, which in
FYE2023 used a total of 10,443 GWh of electricity across all of NSHD's
major consolidated subsidiaries. The power is purchased from major powercompanies, making it difficult for NSHD to reduce its own CO2 emission
coefficient due to a stable supply. If market demand for industrial gas
produced by low-carbon power increases and low-carbon power is added
to the selection criteria, there is a risk that NSHD, which has difficulty
reducing its CO2 emission coefficient any further, will see its market shareshrink. To avoid this risk, the financial impact of these market changes
should be assessed during the risk assessment process and, if necessary,consideration should be given to transitioning to a utility with a higher
renewable energy content.
NSHD's core business, the production of industrial gases, requires
significant amounts of electricity. With the growing awareness of climatechange as a serious global environmental issue, companies with high GHG
emissions are generally considered to have a negative impact on the
climate and are therefore at risk of their stock price declining and not being
able to attract funds from investors. However, since it is difficult to reduce
12Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

the CO2 emission coefficient of electricity, we believe that the biggest
challenge is to make customers and investors aware of how industrial
gases themselves contribute to the environment. Therefore, NSHD is
working to demonstrate to customers and investors that it is anenvironmentally conscious company by disclosing its direct environmental
initiatives and the GHG emission reductions that customers can achievethrough the use of NSHD's products.
Acute

Relevant,

physicalalwaysincluded

Chronic

Relevant,

physicalalwaysincludedIndustrial gas is in demand throughout Japan and is regularly transported
by tanker trucks. There is always a risk that the supply of liquefied gas tocustomers may be stopped due to earthquakes, typhoons, or other factors.
However, NSHD has production facilities throughout Japan and is able torespond to physical disasters by delivering to customers by tanker trucks
from other locations and by making advance deliveries based on weather
forecasts and other predictions.
NSHD's core business is the production of industrial gases, which accounts
for 79% of total group sales. The plant uses water to flush and cool the air
taken in during the production of industrial gas, and the annual water
withdrawal volume is approximately 44.95 million m3. When water
resources become scarce due to changes in rainfall patterns and droughts
caused by climate change, the plant will be unable to produce industrial
gas, resulting in lost sales opportunities and a significant impact on NSHD'ssales. In addition, if the global average temperature rises, there is a riskthat the power usage of the raw air compressors in the air separationequipment will increase, resulting in higher electricity consumption. As aresult, product costs will increase as average temperatures rise, and NSHD
earnings will be affected if this price increase is not reflected in productprices. The correlation between rising temperatures and electricity usage ismonitored by plant operators through monthly monitoring of energy costs,
and NSHD assesses the financial impact of these temperature increases in
its risk assessment process based on the results of the IPCC scenario
analysis.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driverMarketChanging customer behaviours

Primary potential financial impact
Decreased revenues due to reduced demand for products and services

Company-specific description
In response to the abnormal weather caused by climate change in recent years, theParis Agreement, an international accord to combat the global rise in temperatures, hascome into effect with increasing support and action around the world. In Japan, anational declaration to become carbon neutral by FYE2050 was announced in October
2020. In this business environment, NSHD's Taiyo Nippon Sanso uses large amounts ofelectricity in the manufacturing process of the industrial gas business which accounts formore than 50% of sales. Specifically, more than 99% of the 10,477 GWh of electricity
used by NSHD in FYE2023 was used in industrial gas operations around the world, themajority of which was spent to operate air separation equipment. As a result, there is arisk that existing industrial gas production processes that use large amounts ofelectricity will be shunned by customers in the steel and chemical sectors, who arepushing for decarbonization initiatives, resulting in lower sales. If 10% of existingcustomers were to exclude NSHD from their industrial gas supply processes, sales
would decrease by approximately 28,290 million yen.

Time horizon
Long-term

Likelihood
Very likely
Magnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
28,290,000,000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Explanation of financial impact figure
Of NSHD's overall sales of 1,188,600 million yen in FY2022, 68%, excluding equipment
and construction sales, is due to NSHD's industrial gas business in Japan, which
accounts for 35% of NSHD's total sales in Japan. If 10% of these customers were to
exclude NSHD from the industrial gas supply process as a result of increased
environmental awareness, sales would decrease by 1,188,600-million-yen x 35% x 68%
x 10% = 28,290 million yen.

Cost of response to risk
161,000,000

Description of response and explanation of cost calculation[Situation]
With the formulation of the Paris Agreement, efforts to reduce CO2 and other GHGs
throughout the supply chain are being promoted around the world. Our group isdeveloping the industrial gas business in Japan, Europe, and the U.S., where electricity
consumption is very large, and there is a risk that sales may decrease due to moves byexisting customers to review their supply chains in response to heightened
environmental awareness. If 10% of our customers in the industrial gas business inJapan were to exclude our group from the industrial gas supply process due toincreased environmental awareness, we estimate that our sales would decrease byapproximately 28,290 million yen.
[Task]
Given this business environment, our group needs to reduce GHG emissions in theindustrial gas production process so that we can continue to receive business fromenvironmentally conscious customers.
[Action]To address these issues, we are reviewing existing industrial gas production processes
and working to reduce GHG emissions through the promotion of the introduction ofcarbon-free (H2, NH3) combustion technology and research and development on theuse of oxygen combustion. The NSHD Group has engaged in research anddevelopment of oxygen combustion technologies for more than half a century,
contributing to GHG reduction. Specifically, Taiyo Nippon Sanso's Yamanashi Solutions
Center, the NSHD Group's R&D center established in 1989, is developing oxygen
combustion technologies for a variety of applications. Oxyfuel combustion technology isan environment in which highly pure oxygen is added to air to increase the oxygen
concentration in the air to 21% or higher to improve combustion efficiency. This
technology can be applied to various applications such as high temperature heating
furnaces and melting furnaces as a technology that contributes to energy conservation
and CO2 emission reduction.
[Result]
With the progress of research and development of oxygen combustion technology,
reductions in GHG emissions in general industrial furnaces are expected to amount toseveral tens of thousands of tons. By deploying oxygen combustion technology, we will
convert air combustion in industrial furnaces in various industries to oxygen-enriched

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

combustion, and we will continue to do business with existing environmentally conscious
customers to help them achieve carbon neutrality.
[Breakdown of Risk Response Costs]
The company plans to invest a total of 161 million yen (personnel expenses + test
material expenses + equipment investment and loan) in efforts to establish carbon-free
related technologies. We believe that the establishment of carbon-free related
technologies will greatly reduce the risk of declining sales.

Comment

Identifier
Risk 2

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Emerging regulation
Carbon pricing mechanism

Primary potential financial impact
Increased indirect (operating) costs

Company-specific description
In response to the abnormal weather caused by climate change in recent years, theParis Agreement, an international treaty to combat climate change, has come into effect,
and action is being taken globally. In October 2020, Japan also announced its policy toachieve carbon neutrality by 2050. In order to achieve this goal, regulations andinitiatives that are being evaluated in Europe, such as carbon taxes and emissions
trading, are expected to be introduced in Japan in the future, and this poses a risk ofincreasing NSHD's direct costs. The Taiyo Nippon Sanso Group's GHG emissions forthe fiscal year ending March 31, 2023 were 2,054,000 t-CO2, and if carbon taxes orother taxes under carbon pricing mechanisms are introduced, there is a possibility of anincrease in direct costs due to the increased tax burden. For example, according to the
IEA's 2022 Report, if a carbon tax were introduced to achieve carbon neutrality by 2050,
it is assumed that a carbon tax of 15,365 yen/t carbon tax would be imposed in 2030. In
that case, the tax burden would increase by approximately 31,560 million yen, anamount equivalent to the operating income of the Taiyo Nippon Sanso Group, posing arisk that would have a significant impact on our business. If we increase our gas
production in the future, we may face a further tax burden due to the increase in Scope
2 emissions, which may be a problem, and there is a risk that this may lead to asignificant decrease in our profits.

Time horizon
Long-term
16

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Likelihood
Very likely

Magnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
31,560,000,000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figure
NSHD's overall GHG emissions are approximately 2,054,000 t-CO2 in FYE2023, andaccording to the IEA's 2022 report, if a carbon tax were introduced to achieve carbon
neutrality by FYE2050, a carbon tax of 15,365 yen/t in FYE2030 would be imposed. It is
assumed that a carbon tax of ¥15,365/t would be imposed. In this case, the tax burden
would increase by 31,560 million yen. The formula is as follows: 2,054,000 t-CO2 ×
15,365 yen/ton = 31,560 million yen

Cost of response to risk
10,000,000,000

Description of response and explanation of cost calculation[Situation]
Tighter environmental regulations such as carbon pricing in countries around the world,
especially in Japan, are expected in the future. The total GHG emissions of the entire
Taiyo Nippon Sanso Group in FYE2023 are 2,054,000 t-CO2, and if we do not work to
reduce GHG emissions, we may be liable for a tax burden of approximately 31,560
million yen when environmental regulations such as carbon taxes are assigned.
[Task]As the primary company for operating NSHD's core business, the electricity used at
Taiyo Nippon Sanso to produce nitrogen, oxygen, and argon, its main products,
accounts for more than 98% of CO2 emissions. This needs to be reduced first andforemost in order to meet the risk of tighter environmental regulations in Japan.
[Action]NSHD has established the "Carbon Neutral Program I" which states the goal to achievecarbon neutrality by FYE2050. Toward this goal, NSHD replaced the air separationequipment used in its gas production business at the JFESC Kurashiki Plant in
FYE2017, which reduced CO2 emissions by approximately 40,000 t-CO2. Furthermore,
in FYE2024, the Fukuyama Plant of JFESC will replace its air separation unit with astate-of-the-art unit capable of producing 48,000 Nm3/h of oxygen gas, 82,000 Nm3/h ofnitrogen gas, and 1,580 Nm3/h of liquid argon, thereby reducing CO2 emissions by over17

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

10,000 t-CO emissions will be reduced. In addition, the plant's product yield could be
improved by introducing simulator-based automatic control into the operation of the air
separation unit. The same amount of electricity can be used to increase the flow of
product gas, thus reducing the amount of carbon dioxide emissions. Currently, only one
plant in Japan has introduced this system, but we are working to increase that number.
[Results]
Taiyo Nippon Sanso reduced GHG emissions by 18% in FYE2023 compared to
FYE2019 by replacing equipment and improving the efficiency of energy usage. This
reduction was largely due to the replacement of air separation equipment and the
optimization of air separation equipment operation using a simulator.
[Breakdown of Risk Response Costs]
The investment for a complete set of air separation equipment is expected to amount toapproximately 10,000 million yen.

Comment

Identifier
Risk 3

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk drive
Acute physicalCyclone, hurricane, typhoon

Primary potential financial impact
Increased capital expenditures

Company-specific description
NSHD's Taiyo Nippon Sanso mainly produces industrial gases and has 35 gas
production plants. If climate change intensifies and there is an increase in heavy rainfall
and strong winds in the future, the air separation equipment that produces industrial
gases at these plants may break down due to these effects. Failure of such equipment
could make it difficult to supply products to customers in a stable manner, which could
result in a large decrease in profits. In addition, the cost burden assumed in the event ofequipment failure due to abnormal weather conditions could reach several hundred
million yen. It is necessary to respond to the risk of breakdowns of components of air
separation equipment.

Time horizon
Short-term

Likelihood
Unlikely

Magnitude of impact
18

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)<Not Applicable>

Potential financial impact figure – minimum (currency)
100,000,000
Potential financial impact figure – maximum (currency)
3,000,000,000

Explanation of financial impact figure
The amount of damage caused by equipment failure of air separation equipment varies
greatly depending on the equipment that fails. It also depends greatly on the scale of the
air separation equipment. If an air compressor were to fail due to a lightning strike, thecost per unit would range from 100 million yen to 3,000 million yen. This cost is
calculated from equipment facility costs and response personnel costs. In addition, gas
production plants are equipped with multiple air separation units, and damage to the aircompressors of many air separation units could increase the cost of damage by up to
several hundred million yen.

Cost of response to risk
110,000,000

Description of response and explanation of cost calculation[Situation]
Recently in Japan, typhoons and other weather disasters have become more severe
due to factors such as the global rise in temperatures. Typhoon No. 14 in FYE2022
caused flooding, collapsed buildings, and other damage in many parts of Japan. This
increase in climate related damage due to extreme weather events poses a risk ofequipment failure at Taiyo Nippon Sanso, a group company at NSHD.
[Task]
Currently, Taiyo Nippon Sanso has 35 gas production plants, and several air separation
systems are installed in gas production plants. In the event of an air separation unit
failure due to flooding caused by abnormal weather or extreme wind damage, the total
cost of the equipment and personnel to respond to the failure would be more than 100
million yen per unit, which is a significant increase in costs. Therefore, it is necessary to
reduce the financial risk to NSHD by purchasing insurance.
[Action]Taiyo Nippon Sanso has purchased comprehensive property insurance for restorationfrom fire or accident caused by abnormal weather conditions at its 35 gas production
plants nationwide for air separation equipment and other manufacturing facilities. The
coverage includes fire, lightning, property damage, explosion, wind, hail, snow, theft,
electrical and mechanical accidents, and other accidental damage. Therefore, even if

19

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

the components of the air separation system are damaged due to extreme weather
conditions, the loss will not exceed the insured amount.
[Result]
To date, no major financial losses have been incurred as a result of extreme weather
events. We can also protect against the financial risk of future disasters by continuing topurchase insurance.
[Breakdown of Risk Response Costs]
The cost paid to the insurance company under the relevant property comprehensive
insurance is calculated by multiplying the number of plants by the guaranteed amount,
resulting in an annual cost of approximately 110 million yen.

Comment

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?
Downstream

Opportunity typeMarkets

Primary climate-related opportunity driver
Access to new markets

Primary potential financial impact
Increased revenues through access to new and emerging markets

Company-specific description
With the formulation of the Paris Agreement, various initiatives aimed at carbon
neutrality have been attracting attention. NSHD supports a wide range of industries fromour core industries such as steel, chemicals, automobiles, and construction to food andmedical fields, with our industrial gas business, which accounts for more than 50% of
our sales. From the perspective of our wide-ranging customers with differing gas needs,
20

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

there is an opportunity to expand sales by entering new markets related to carbon
neutrality. Specifically, there is an opportunity for NSHD to enter new markets by
responding to growing demand for oxygen gas burners that convert fossil fuels to green
fuels, meaning carbon dioxide is not emitted during combustion, as well as demand forCO2 capture through CCUS (Carbon Capture Utilization and Storage).

Time horizon
Long-term

Likelihood
More likely than not

Magnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
400,000,000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figure
Taiyo Nippon Sanso, which operates NSHD's gas business in Japan, sells various
industrial gases such as oxygen, nitrogen, and argon, and manufactures and sells
related equipment. By expanding sales of hydrogen-oxygen burners that do not emit
CO2 during combustion, the company expects to reduce GHG emissions of its
customers by approximately 20,000 t-CO2e and achieve sales of approximately 400
million yen by FYE2030.
Projection for FYE2030: 40 oxygen burners x 10 million yen/unit = 400 million yen

Cost to realize opportunity
199,000,000

Strategy to realize opportunity and explanation of cost calculation[Situation]
Under the Paris Agreement, various measures are being taken around the world toreach carbon neutrality. For example, demand for green fuels that do not emit carbon
dioxide during combustion and demand for CO2 capture for CCUS (Carbon Capture
Utilization and Storage) is growing, and attention to these new markets is increasing.
NSHD, whose industrial gas business accounts for more than 50% of sales, supportinga wide range of industries from our core industries such as steel, chemicals,
automobiles, and construction to the food and medical industries, sees an opportunity to21Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

expand sales by entering new markets such as CCUS and green fuels related tocarbon neutrality. We believe there are opportunities to expand sales by entering newmarkets such as CCUS and green fuel related to carbon neutrality.
[Task].
As a response to these changing trends and demands, it is essential for NSHD to enter
new carbon neutral related markets and expand relevant sales.
[Action]In light of these challenges, NSHD is collaborating with Taiheiyo Cement Corporation on
a CO2 liquefaction process that is needed in the development of the carbon-recycling
cement manufacturing process technology by NEDO (New Energy and Industrial
Technology Development Organization). This collaboration is also a part of our CCUS
business initiatives. In FYE2022, a CO2 liquefaction facility was installed at the
Kumagaya Plant of Taiheiyo Cement Corporation. The plant recycles CO2 emitted fromthe cement manufacturing process and reuses it as cement and civil engineering
materials. In April 2022, we succeeded in a demonstration test of glass melting by 100%hydrogen combustion using a hydrogen-oxygen burner and achieved a significant
reduction in CO2 emissions from the melting furnace. The above demonstration successhas also resulted in the installation of our oxygen burners for glass melting furnaces indifferent facilities.
[Results]
With our entry into this new market, we expect sales of approximately 400 million yen in
2030.As we will continue our efforts to enter new markets related to carbon neutrality,
we have decided to allocate 38,000 million yen over four years of strategic investments,
including carbon neutrality, in the NSHD Medium-term Management Plan "NS Vision2026" formulated in 2022.
[Costs to realize the opportunity].
For the wider use and implementation of CCUS and green fuel as described above, wehave successfully invested 199 million yen (labor + test material + equipment
investment) to develop CO2 liquefaction facilities, hydrogen-oxygen burners, and otherproducts.

Comment

Identifier
Opp2

Where in the value chain does the opportunity occur?
Downstream

Opportunity type
Products and services

Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Primary potential financial impact
Increased revenues resulting from increased demand for products and services

Company-specific description
Taiyo Nippon Sanso, which operates NSHD's gas business in Japan, sells various
industrial gases such as oxygen, nitrogen, and argon, as well as manufactures and sells
related equipment. With the recent increase in environmental awareness in society,there is a growing demand to implement measures to combat climate change, and oneof these measures is to reduce CO2 emissions that result from business activities. Thisis also true for industrial gas suppliers, NSHD's core business. The estimated potential
demand for oxygen for industrial furnaces is 2.1 billion Nm3, of which, assuming a 50%
commercial rights acquisition rate and sales of oxygen gas at ¥10/Nm3, sales of over
¥10,000 million are expected, which is 1% of NSHD's total sales revenue, making this avery significant opportunity. This represents 1% of NSHD's total sales revenue, and asignificant opportunity. In addition, the oxygen burners that NSHD is focusing on
developing will enable ammonia combustion in industrial furnaces, and since ammonia
combustion emits zero CO2 during combustion, further demand is expected as a resultof future trends toward climate change countermeasures.

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
10,500,000,000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figure
Taiyo Nippon Sanso, the company in NSHD that handles the Japanese gas, sells
various industrial gases such as oxygen, nitrogen, and argon, in addition to the
manufacture and sale of related equipment. The estimated potential demand for oxygenfor industrial furnaces is 2.1 billion Nm3, of which, assuming a 50% commercial rights
acquisition rate and sales of oxygen gas at 10 yen/Nm3, sales of over 10.5 billion yen
can be expected. The trial calculation formula is as follows:
Total market demand for oxygen: 2,100,000,000Nm³ x acquisition rate of commercial
rights: 50% x unit price of oxygen gas: 10 yen/Nm³ = 10,500,000,000
23Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Cost to realize opportunity
1,600,000,000

Strategy to realize opportunity and explanation of cost calculation[Situation]
Following the trend toward carbon neutrality that has begun in the U.S. and Europe,companies in Japan are being asked to take steps to reduce GHG emissions. The sameis true for companies operating industrial gas furnaces, many of which are considering
shifting from fossil fuels to carbon-free fuels such as ammonia. NSHD's development ofoxygen burners utilizing ammonia (NH3) is expected to increase demand for oxygen gas
used for combustion in NSHD's industrial furnaces.
[Task]
Utilization of NH3 in combustion can produce large amounts of harmful nitrogen oxides(NOx) when combusted because it contains nitrogen. In addition, no carbon particles(soot) are generated, and heat transfer inside the blast furnace by radiation cannot be
expected, which poses a challenge for development.
[Action]At Taiyo Nippon Sanso, where NSHD's Japanese gas business is operated,development of an oxygen burner utilizing NH3 began in FYE2014, and in FYE2019, an
oxygen-enriched combustion method, which increases the oxygen concentration in the
air combined with a 30% ammonia - city gas mixture fuel to enhance the flame'sradiation heat transfer, was established to suppress the formation of nitrogen oxides, a
toxic substance, while enhancing the capacity of the flame.
[Result]
The above technology is expected to significantly reduce CO2 emissions from industrial
gas furnaces. In FYE2025, NSHD will be awarded a contract to install oxygen gas
generators (oxygen PSAs) in actual industrial furnaces for customers who have installed
oxygen burners that utilize NH3. We also plan to install oxygen gas generators (oxygen
PSAs) in industrial furnaces by FYE2030. The Company expects to receive 40 orders by
FYE2030 and the associated contracts for supplying oxygen gas.
[Costs to Realize the Opportunity]
In order to realize an oxygen supply that meets demand, it will be necessary to install
approximately 40 oxygen PSA units with an oxygen generation capacity of 3,000 Nm³/h(approximately 400 million yen). Therefore, a capital investment of 1,600 million yen([PSA installation cost: 400 million yen]/[amortization period: 10 years]×40 units) would
be required.

Comment

Identifier
Opp3

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Where in the value chain does the opportunity occur?
Downstream

Opportunity type
Products and services

Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services

Primary potential financial impact
Increased revenues resulting from increased demand for products and services

Company-specific description
In recent years, companies have been encouraged to take action to combat climatechange, and one of the ways to do this is to reduce CO2 emissions in their businessactivities. In response to recent efforts to decarbonize society, we recognize that thesteel industry has a strong need to reduce CO2 emissions, and if NSHD successfully
develops oxygen combustion technology through our R&D Yamanashi Solutions Center
we expect demand for not only that technology to be high, but also demand for NSHD's
oxygen gas is expected to increase accordingly. The oxygen blast furnace underdevelopment is expected to increase oxygen demand by 2.5 billion Nm³ per year, and if
oxygen gas is sold at 10 yen/Nm3, sales are expected to increase by 25,000 million yen,which is a significant opportunity representing 3% of total group sales, a significant
impact.

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
High

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
25,000,000,000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figure
In recent years, it has become expected of companies to implement climate change
countermeasures in their activities, and one such measure is the reduction of CO2
emissions in business activities. Our advanced oxygen blast furnace under development
25

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

is expected to increase annual oxygen demand by 2.5 billion Nm3, and if oxygen gas issold at 10 yen/Nm3, sales are expected to increase by 25,000 million yen. The trial
calculation formula is as follows:
Annual demand for an advanced oxygen blast furnace: 2,500,000,000 Nm3 × unit priceof oxygen gas: 10 yen = 25,000,000,000 yen

Cost to realize opportunity
118,000,000

Strategy to realize opportunity and explanation of cost calculation[Situation]
The carbon neutrality movement in prevalent in the U.S. and Europe has influenced
calls for companies to reduce GHG emissions in their business activities, specifically inthe steel industry to which NSHD provides oxygen gas. During the production of pig ironthrough blast furnaces, large amounts of CO2 are emitted and reducing these emissions
has become a major industry issue. As an industrial gas supplier, we believe that we
can expand our opportunities to clientele by developing technologies that reduce CO2
emissions.
[Task]
It is imperative we develop technologies that contribute to the reduction of CO2
emissions in the steel business.
[Action]The Yamanashi Solutions Center, NSHD's R&D center, is currently researching anddeveloping oxygen combustion technology. Oxyfuel combustion technology looks to
improve combustion efficiency by adding high-purity oxygen to tributary gases and using
an environment in which the oxygen concentration in the air is 21% or higher, which
produces a higher flame temperature and reduces the nitrogen content in the tributary
gas compared to air combustion. This gives way to a reduction the energy carried away
as exhaust gas, leading to better energy savings and lower CO2 emissions. This
technology can be applied to various uses such as high temperature heating furnaces
and melting furnaces as a technology that contributes to energy conservation and CO2
emission reduction.
[Results]
As a result of this technology, the demand for oxygen produced by NSHDs is expected
to be 2.5 billion Nm3 as this technology, which can be applied to various combustion
applications such as heating furnaces and melting furnaces, contributes to energy
conservation and CO2 emission reductions. In the future, we aim to convert air
combustion to oxygen combustion in new blast furnaces in various steel industries as
we further develop combustion technology.
[Cost to Realize Opportunity]
To realize this oxygen combustion technology, we will invest 118 million yen (labor +test materials + equipment investment) to develop an oxygen burner that can be appliedto oxygen blast furnaces.

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Comment

C3. Business Strategy
C3.1(C3.1) Does your organization’s strategy include a climate transition plan that aligns
with a 1.5°C world?
Row 1
Climate transition planYes, we have a climate transition plan which aligns with a 1.5°C world

Publicly available climate transition plan
Yes

Mechanism by which feedback is collected from shareholders on your climatetransition plan
We have a different feedback mechanism in place

Description of feedback mechanism
In line with our Medium-term Management Plan, we actively disclose information, suchas our TCFD scenario analysis, and take questions regarding the information at ourearnings presentations.

First, we publish information about our Group's sustainability efforts on the Nippon
Sanso Holdings website. Specifically, we disclose information on an array of topics,
including our materiality, Medium-term Management Plan, and CDP answers. Based on
the TCFD framework, we also publish the risks and opportunities under "transitional
scenarios" and "physical climate scenarios", as well as our process for identifying,assessing and managing climate change related risks. Furthermore, our Group has
continuously published a report every year on our environmental and societal activities
since 2005. Since 2017, combining it with our annual report, we publish our "integrated
report" once a year, and all data after 2005 is available on our website for anyone toview. There also regular IR seminars targeting individual investors, and in the November
2021 seminar (presented by the Senior Executive Officer CSO, and Head of IR) our
corporate profile, performance, and other sustainability policies were the primary topics
introduced. In addition, during the May and November financial statement briefings(presented by the Representative Director, President CEO) we took questions on
climate change related issues. Going beyond those presentations, we have a “generalinquiries” form on our public website as a means of speaking with our stakeholders (byemail). Through the above methods, we are not merely disclosing information to our27Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

shareholders, but also creating opportunities and platforms for communication, which
we believe is fulfilling as a mechanism for feedback.

Frequency of feedback collectionMore frequently than annually

Attach any relevant documents which detail your climate transition plan
(optional)

C3.2(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario
analysis to inform strategy
Row

Yes, qualitative and quantitative

1

C3.2a
(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climate-Scenario Temperature Parameters, assumptions, analytical choices

relatedanalysis

scenario

coverage scenario

Transition

Company- <Not

scenarios

widealignment ofApplicable>

IEA NZE
2050

Transition

Company- <Not

scenarioswide

IEA SDS

Applicable>

In November 2019, NSHD expressed its support for the
FSB's (Financial Stability Board) TCFD recommendations.
Regarding climate change, one of our identified materiality’s,
according to the TCFD recommendations, we explored therisks and opportunities related to "transitional scenarios" and"physical climate scenarios". Substantial negative financial
impacts are viewed as risks, and positive impacts are
viewed as opportunities. For the "Transition Scenario," weused the International Energy Agency's (IEA) Net Zero 2050
(NZE 2050) as a reference and carbon prices of FYE2040
205$/CO2-t and FYE2050 250$/CO2-t for developed
countries to estimate risk impacts.
In November 2019, NSHD expressed its support for the
FSB's (Financial Stability Board) TCFD recommendations.
Regarding climate change, one of our identified materiality,
according to the TCFD recommendations, we explored therisks and opportunities related to "transitional scenarios" and"physical climate scenarios". Substantial negative financial
impacts are viewed as risks, and positive impacts are28

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

viewed as opportunities. For "transitional scenarios", wereferred to the International Energy Agency's (IEA)
Sustainable Development Scenario (SDS); using the greenhydrogen and blue hydrogen production ratio parameters of
36% in FYE2030 and 88% in FYE2050 we calculated thecosts of opportunity.
PhysicalCompany- <Notclimatewide

Applicable>

scenarios
RCP 8.5

In November 2019, NSHD expressed its support for the
FSB's (Financial Stability Board) TCFD recommendations.
Regarding climate change, one of our identified materiality,
according to the TCFD recommendations, we explored therisks and opportunities related to "transitional scenarios" and"physical climate scenarios". Substantial negative financial
impacts are viewed as risks, and positive impacts are
viewed as opportunities. For "physical climate scenarios",
we referred to the global warming scenario (RCP 8.5) fromthe UN IPCC's (Intergovernmental Panel on Climate
Change) 5th assessment (published in FYE2014). Utilizing a
CO2 concentration greater than 1000ppm, the average risein temperatures would be between 3.2~5.4℃ by FYE2100.
Per our analysis based on those numbers, the efficiency of
our air separation units would decrease, leading to adecrease in profit. Additionally, regarding the rise in sea
levels, we used the parameters showing a 13cm increase in
FYE2030 and a 25cm increase in FYE2050 to calculate
flood risks.

C3.2b(C3.2b)) Provide details of the focal questions your organization seeks to address byusing climate-related scenario analysis and summarize the results with respect tothese questions.
Row 1
Focal questions
The Paris Agreement, an international framework to combat global warming, since coming
into effect has caused a response from countries around the world.
In Japan, a policy to become carbon neutral by FYE2050 was announced in October
2020. In order to achieve this goal, it is expected that regulations and initiatives that are
being evaluated in Europe, such as carbon taxes and emissions trading, will be introduced
in Japan in the future. There is a risk that indirect costs will increase as these new
regulations on CO2 emissions come into effect.

Results of the climate-related scenario analysis with respect to the focal
questions29

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

The total annual combined emissions of Taiyo Nippon Sanso's Scope 1 and Scope 2
are approximately 2.2 million t-CO2, which, assuming a CO2 unit price of the IEA
carbon tax FYE2040 140$/CO2-t, would result in a tax burden of 42 billion yen and aloss of approximately 10 billion yen in our operating income in Japan. Further tax burden
is considered to be an issue as Scope 2 emissions will increase if gas production isincreased in the future, and efforts are being made to expand the introduction ofrenewable energy through the introduction of PPAs and Green Power Certificates. As aresult, approximately 6% of NSHD's electricity is generated from renewable energy
sources, contributing to the reduction of GHG emissions. In March 2021, NSHD
developed the SCOPE-Jet SCAN. This technology controls oxygen and fuel supply byanalyzing furnace temperatures, thereby increasing oxygen utilization efficiency.
Efficient fuel use can contribute to the reduction of CO2 emissions.

C3.3(C3.3) Describe where and how climate-related risks and opportunities haveinfluenced your strategy.
Have climate- Description of influence
related risks
andopportunities
influenced
your strategy
in this area?
Products
andserviceYes

Our main products are oxygen, nitrogen, and argon, and since theraw material is air, there are almost no raw material costs. Primarily,
only energy costs are present as large quantities of electricity to use theair separation units to take air in from the atmosphere is required.
Therefore, since increases or decreases in energy consumption directly
affect profits, in order to strengthen sales expansion activities backed
by cost competitiveness, it is essential to reduce costs by improving thebase electricity per unit of production (Nm3/kWh) through energysaving measures for the air separation units that produce bulk gas. We
are working on environmental and social awareness in all processes ofour business activities (value chain), from development and production,
to supply, sales, and product use. We are also working to reduceenergy intensity through development and design, replacement ofcomponents of air separation equipment with high efficiency machines,
and optimization of plant operations in response to demand trends.

At the same time, climate change issues are becoming a challenge,
and we believe that we have an opportunity to contribute to solving
these issues by providing our innovative gas solutions. As our products

30

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

help other companies reduce their GHG emissions, we calculate anddisclose our GHG reductions as our environmental contribution. For
example, in order to realize a carbon-neutral society, Taiyo Nippon
Sanso's Yamanashi Technology Solutions Center, which is the Group's
R&D base, is focusing on oxygen combustion technology. The
laboratory is developing oxygen combustion technologies for various
applications by utilizing the fundamental technologies owned by the
Taiyo Nippon Sanso Group, thereby contributing to energy conservation
and reduction of environmental pollutant emissions. Oxyfuelcombustion technology is a method of increasing combustion efficiency
by adding highly pure oxygen to tributary gases to create anenvironment with an oxygen concentration of 21% or higher than that ofair, which allows forhigher flame temperatures than air combustion and reduces thenitrogen content of tributary gases, thereby reducing the energy carriedaway as exhaust gas.

SupplyYes

chain

Because the raw material for our primary product, bulk gas, is air, we
believe effects on the supply chain are extremely limited. However,there is a nationwide demand for industrial gas, which we transportroutinely by tanker truck. There is always a risk that the supply ofliquefied gas to customers may be stopped due to earthquakes,
typhoons, or other disasters. But we are able to manage physicaldisasters by having production sites throughout the country, enabling us
to deliver to customers by tanker truck from other locations, and by
making advanced deliveries based on weather forecasts and otherpredictions.

Investment Yes

Our Group's founding ideology includes the idea to be "Proactive.

in R&D

Innovative. Collaborative. Making life better through gas technology.
The Gas Professionals". To realize this philosophy, we believe action
towards carbon neutrality is an urgent matter. In recent years, theGroup has been focusing on the use and application of hydrogen, which
is attracting attention as a CO2-free and environmentally friendly
energy source — and we are developing and marketing stationary andmobile hydrogen stations using the Group's hydrogen gas supply andhandling technologies. The Group has also focused on research anddevelopment of hydrogen combustion and ammonia combustion incooperation with Euro Business. Since hydrogen and ammonia emit noCO2 or air pollutants when combusted, we believe that they can further
contribute to the realization of a carbon-neutral society, and the Groupis investing in technologies to achieve carbon neutrality from multiple
angles and in various aspects. Based on these carbon neutral
technologies, we have set a goal that by FYE2026, the amount of GHG
reduction contribution from our environmental product offerings andapplications will exceed our GHG emissions, and we are promoting our

chain
and/orvalue

31

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

response to climate change. In FYE2023, our GHG reduction
contribution (products and services) was 3,556 [thousand tons-CO2],
an increase of approximately 12% from last year, indicating that we aremaking steady progress toward our goal.
Operation

Yes

The industrial gas production process, our core business, is electricityintensive and requires large amounts of power. Most of this power isconsumed during the operation of air separation units; reducing ourenergy consumption is the biggest challenge for us, as any increase or
decrease in consumption will directly affect our profits. In addition,
reducing energy consumption will lead to reductions in Scope 1 andScope 2, which will positively contribute to the mitigation of climatechange related issues. In recent years, computer performance has
improved significantly, making it possible to complete even complex
calculations in a relatively short time, and it has become possible tooptimize the operation of air separation units using parameters such as
the timing of valve opening and closing, vane opening degree, andother parameters. That optimization has been shown to reduce theamount of electricity used by air separation units. We believe that thepossibility of reducing electricity consumption by optimizing air
separation unit operations using computers is an effective and efficient
opportunity for us to reduce manufacturing costs and GHG emissions
without requiring special investment. Therefore, our group is deploying
computer analysis to our gas production plants to reduce GHG
emissions. The project was launched in FYE2018, and by FYE2022,
this activity had been deployed to 9 plants in Japan, including Shinyo
Sanso Co., Ltd, Shunan, Shin Sagami Sanso Co., Ltd, and Fuji Sanso
Co.,Ltd, as well as 2 overseas plants, Leeden National Oxygen Ltd. andNippon Sanso Ingasco, Inc. The cost of realizing the opportunity was
roughly 16-million-yen (labor cost 1 (person) x 1,600(manhours/person) x 1 (10,000 yen/man-hours) = 16 million yen,assuming 1 researcher, 1,600 man-hours/person per year, and a R&D
man-hour unit cost of 10,000 yen per man-hour. Additionally,
we are in the process of launching a project using new digital solution
technology that will further optimize the project. As a result of theabove, electricity consumption was reduced by 6,764,000 kWh/year.
Assuming TEPCO's FYE2021 CO2 emission intensity (0.441 kgCO2/kWh), this result translates into a GHG emission reduction benefitof 2,983 tons-CO2, meaning that the reduction in electricity
consumption and the resulting GHG emissions were realized with only
an input of labor costs.

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C3.4(C3.4) Describe where and how climate-related risks and opportunities haveinfluenced your financial planning.
Financial

Description of influenceplanning
elements
that havebeen
influenced
Row Revenues
1

Since the raw material for industrial gas is air, there is no particular need for raw
Direct costs material costs; only energy, primarily electricity, is required to use air separation
units to capture air from the atmosphere. Therefore, reducing our energy
Indirectconsumption is the biggest challenge for us, as any increase or decrease incosts
energy consumption is directly related to our earnings. In addition, reducing
Capitalenergy consumption will lead to a reduction in Scope 1and Scope 2, which will
expenditures positively contribute to the mitigation of climate change related issues. In recent
Capitalyears, computer performance has improved significantly, making it possible toallocation
complete even complex calculations in a relatively short time, and it has
become possible to optimize the operation of air separation equipment using
Access toparameters such as the timing of valve opening and closing, vane opening
capitaldegree, and other parameters. That optimization has been shown to reduce theLiabilities
amount of electricity used by air separation units. We believe that the possibilityof reducing electricity consumption by optimizing air separation unit operations
using computers is an effective and efficient opportunity for us to reduce
manufacturing costs and GHG emissions without requiring special investment.
Therefore, our group is utilizing computer analysis in our gas production plants
to reduce GHG emissions. The project was launched in FYE2017, and by
FYE2022, this initiative had been deployed to 9 plants in Japan, including
Shinyo Sanso Co., Ltd, Shunan Sanso Co., Ltd., Shin Sagami Sanso Co., Ltd,and Fuji Sanso Co.,ltd, as well as 2 overseas plants, Leeden National OxygenLtd. and Nippon Sanso Ingasco, Inc. The cost of realizing the opportunity was
roughly 16-million-yen (labor cost 1 (person) x 1,600 (man-hours/person) x
1(10,000 yen/man-hours) = 16 million yen, assuming 1 researcher, 1,600 manhours/person per year, and a R&D man-hour unit cost of 10,000 yen per manhour. Additionally, we are in the process of launching a project using new digitalsolution technology that will further optimize the project. As a result of theabove, electricity consumption was reduced by 6,764,000 kWh/year. Assuming
TEPCO's FYE2021 CO2 emission intensity (0.441 kgCO2/kWh), this resulttranslates into a GHG emission reduction benefit of 2,983 tons-CO2, meaningthat the reduction in electricity consumption and the resulting GHG emissions
were realized with only an input of labor costs.

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

By further promoting this initiative, we will reduce our GHG emissions and aim
to achieve an 18% reduction in GHG emissions by FYE2026, the final year of
our Medium-term Management Plan, compared to the FYE2019 levels.

C3.5(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s climate transition?
Identification of spending/revenue that is aligned with your organization’s climatetransitionRow 1 No, but we plan to in the next two years

C4. Targets and performance
C4.1(C4.1)) Did you have an emissions target that was active in the reporting year?
Absolute target

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress madeagainst those targets.
Target reference number
Abs 1

Is this a science-based target?
No, but we anticipate setting one in the next two years

Target ambition<Not Applicable>

Year target was set
2021

Target coverage
Company-wide

Scope(s)Scope 1
Scope 2

Scope 2 accounting method
Market-based34

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Scope 3 category(ies)<Not Applicable>

Base year
2018

Base year Scope 1 emissions covered by target (metric tons CO2e)
1,045,500

Base year Scope 2 emissions covered by target (metric tons CO2e)5,640,500

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)<Not Applicable>

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)<Not Applicable>

Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)<Not Applicable>

Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)<Not Applicable>

Base year total Scope 3 emissions covered by target (metric tons CO2e)<Not Applicable>

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)6,686,000

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
100

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
100

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 2: Capital goods emissions covered by target
as % of total base year emissions in Scope 3, Category 2: Capital goods(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)<Not Applicable>

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)<Not Applicable>

Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)<Not Applicable>

Base year Scope 3, Category 15: Investments emissions covered by target
as % of total base year emissions in Scope 3, Category 15: Investments(metric tons CO2e)<Not Applicable>

Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)<Not Applicable>

Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)<Not Applicable>

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)<Not Applicable>

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2030
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Targeted reduction from base year (%)
32

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
4,546,480

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
1,139,000

Scope 2 emissions in reporting year covered by target (metric tons CO2e)
4,764,000

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)<Not Applicable>

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)<Not Applicable>

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)<Not Applicable>

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)<Not Applicable>
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)<Not Applicable>

Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)<Not Applicable>

Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)<Not Applicable>

Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)<Not Applicable>

Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)<Not Applicable>

Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)<Not Applicable>

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)5,903,000

Does this target cover any land-related emissions?
No, it does not cover any land-related emissions (e.g. non-FLAG SBT)

% of target achieved relative to base year [auto-calculated]
36.5969937182

Target status in reporting year
Underway40

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Please explain target coverage and identify any exclusions
This target is company-wide and covers almost 100% of Scope 1 and 2 emissions.
However, there are some exclusions for some smaller sites, such as overseas sales
offices, due to difficulties in obtaining data.

Plan for achieving target, and progress made to the end of the reporting year
The majority of NSHD's GHG emissions come from the use of electricity, with Scope 2
accounting for approximately 83% of total GHG emissions. In the future, the CO2
emission coefficient is expected to decrease as electric power becomes greener. For
example, the IEA has published a scenario in which the global CO2 emission factor for
FYE2030 will be approximately halved compared to FYE2019. As part of NSHD's efforts
to reduce electricity consumption, we are replacing our air separation equipment withstate-of-the-art air separation equipment, optimizing computerized operation, andimproving energy efficiency. In addition, we will promote initiatives to reduce GHG
emissions by shifting to electric power companies with lower emission coefficients andpurchasing green power certificates.
Meanwhile, to reduce GHG emissions (Scope 1) in the HyCO business, we will study
the conversion to blue hydrogen by combining CCUS (Carbon Capture, Utilization andStorage) technology. Furthermore, as the feedstock for hydrogen production is naturalgas, in the future we will also promote other green alternatives, such as the use of
biofuels, to reduce GHG emissions (Scope 1).

List the emissions reduction initiatives which contributed most to achieving
this target<Not Applicable>

C4.2(C4.2) Did you have any other climate-related targets that were active in the reportingyear?
Net-zero target(s)C4.2c(C4.2c) Provide details of your net-zero target(s).

Target reference number
NZ1

Target coverage
Company-wide

Absolute/intensity emission target(s) linked to this net-zero target
Abs1

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Target year for achieving net zero
2050

Is this a science-based target?
No, but we anticipate setting one in the next two years

Please explain target coverage and identify any exclusions
As one of the sustainability programs included in the NSHD Medium-term Management
Plan, we have created the Carbon Neutrality Program. We have set FYE2019, the year
our European gas businesses and U.S. HyCO were added to the NSHD Group, as thebase year with the goal of becoming carbon neutral by FYE2051

Do you intend to neutralize any unabated emissions with permanent carbon
removals at the target year?
No

Planned milestones and/or near-term investments for neutralization at target
year<Not Applicable>

Planned actions to mitigate emissions beyond your value chain (optional)
NSHD is committed to becoming carbon neutral through our sustainability activities.
Specific activities include further promotion of energy conservation and improvement ofenergy use efficiency, promotion of renewable energy use and green electricity, CO2
capture and carbon offsets.

C4.3(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of Total estimated annual CO2e savings in metricinitiatives tonnes CO2e (only for rows marked *)Under investigation

6

To be implemented *

1

9,036

Implementationscommenced*

1

2,983

Implemented*

2

6,597

Not to be implemented

042Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.
Initiative category & Initiative type
Energy efficiency in production processes
Process optimization

Estimated annual CO2e savings (metric tonnes CO2e)
2,983

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
74,400,000

Investment required (unit currency – as specified in C0.4)
16,000,000

Payback period<1 year

Estimated lifetime of the initiative
6-10 years

Comment

Initiative category & Initiative type
Energy efficiency in production processes
Machine/equipment replacement

Estimated annual CO2e savings (metric tonnes CO2e)
3,614

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
100,000,000

43Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Investment required (unit currency – as specified in C0.4)
1,224,000,000

Payback period
11-5years

Estimated lifetime of the initiative
1-2 years

Comment

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
MethodComment

Dedicated budget forenergy efficiency

Various energy saving projects at the gas production plant were reviewed
and the project to be invested in was decided based on the businessenvironment and cost-effectiveness.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
Yes

C4.5a
(C4.5a) Provide details of your products and/or services that you classify as lowcarbon products.

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

Type of product(s) or service(s)Other
Other, please specify

MG Shield, an alternative to SF6, a high GWP gas (22,800)
Description of product(s) or service(s)Molten magnesium oxidizes when exposed to air, meaning it ignites and burns.
Therefore, a protective gas is required to block off the molten metal surface from the44

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

air during the melting process. NSHD sells the MG Shield, as a molten magnesium
alloy cover gas, which is an alternative to SF6, a high GWP gas (22,800), andtherefore contribute to the reduction of the release of SF6 into the atmosphere.

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
Other, please specify
Guidelines for Quantifying GHG emission reductions of goods and services throughGlobal Value Chain (Ministry of Economy, Trade and Industry)

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Use stage

Functional unit used
1 MG shield gas cylinder

Reference product/service or baseline scenario used
The baseline scenario used was a scenario in which a SF6 was used as a cover gas formolten magnesium

Life cycle stage(s) covered for the reference product/service or baseline
scenario
Use stage

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
302

Explain your calculation of avoided emissions, including any assumptions
Three MG Shield cylinders contribute to the reduction of one SF6 container. 302 tonsCO2 can be reduced by one MG Shield gas cylinder, considering that 50 kg of SF6
container (10.25 kg of residual gas) with a GWP of 22,800 could be prevented frombeing released into the atmosphere.

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
0.02

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
No taxonomy used to classify product(s) or service(s) as low carbon

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Type of product(s) or service(s)Other
Other, please specify
SCOPE-JET, an oxygen burner

Description of product(s) or service(s)Electric furnaces are furnaces that use electric energy as a heat source to heat raw
steel scrap into molten metal to produce crude steel. We contribute to the electric
furnace industry by replacing part of the electric heating with our oxygen burner,
SCOPE-JET. By switching to our oxygen burner, it helps users reduce their power
consumption. The oxygen combustion also contributes to a reduced fuel consumption.

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
Other, please specify
Guidelines for Quantifying GHG emission reductions of goods and services throughGlobal Value Chain (Ministry of Economy, Trade and Industry)

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Use stage

Functional unit used
One electric furnace with SCOPE-JET installed

Reference product/service or baseline scenario used
A normal electric furnace without SCOPE-JET was used as the baseline
scenario.
Life cycle stage(s) covered for the reference product/service or baseline
scenario
Use stage

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
31,800Explain your calculation of avoided emissions, including any assumptions
The power saving effect per jet of oxygen (kWh/Nm3) is calculated based on actual
measurements at two electric furnace makers that have installed SCOPE-JET. The
reduction effect is calculated by multiplying the amount of crude steel production by theamount of oxygen consumed by SCOPE-JET, the amount of electricity reduction peramount of oxygen, and the CO2 emission coefficient of electricity.

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
0.4
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C5. Emissions methodology
C5.1(C5.1) Is this your first year of reporting emissions data to CDP?
No

C5.1a
(C5.1a)) Has your organization undergone any structural changes in the reporting
year, or are any previous structural changes being accounted for in this disclosure ofemissions data?
Row 1
Has there been a structural change?
No

C5.1b
(C5.1b)) Has your emissions accounting methodology, boundary, and/or reporting
year definition changed in the reporting year?
Change(s) in methodology, boundary, and/or reporting year definition?
Row 1

No

C5.2
(C5.2)

Provide your base year and base year emissions.

Scope 1
Base year start
April 1 2018

Base year end
March 31 2019

Base year emissions (metric tons CO2e)
1,045,500

Comment
These are primarily emissions from the U.S. HyCO business

Scope 2 (location-based)
Base year start
April 1, 201847

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Base year end
March 31, 2019

Base year emissions (metric tons CO2e)5,640,500

Comment
Japan and Europe are calculated using market-based figures while the U.S., Asia, andOceania are calculated using location-based figures. Therefore, we do not calculate
emissions using only the location-based method.

Scope 2 (market-based)
Base year start
April 1, 2018

Base year end
March 31, 2019

Base year emissions (metric tons CO2e)5,640,500

Comment
Japan and Europe are calculated using market-based figures while the U.S., Asia, andOceania are calculated using location-based figures. Therefore, we do not calculate
emissions using only the market-based method.

Scope 3 category 1: Purchased goods and services
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
883,000

Comment
The emission intensity of each product or service is calculated by multiplying thequantity of products or service purchased by Taiyo Nippon Sanso (physical data andmonetary data) by the emission intensity of each product or service. However, oxygen,nitrogen, and argon purchased from transportation services and Taiyo Nippon Sanso's
consolidated subsidiaries, or affiliates are included in the scope of Scope 1, 2, or Scope
3 categories 4 and 15, and are therefore excluded from the purchased volume used in
the calculation. We reference the GHG Protocol's "corporate value chain (scope 3)
accounting and reporting standard". For emission unit values, we reference theemissions unit value database Ver.3 published on the Green Value Chain Platform
homepage and information in IDEAv2 (for calculating supply chain greenhouse gases).

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Scope 3 category 2: Capital goods
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)46,280Comment
Emissions intensity is calculated by multiplying capital investment in the reporting yearby the emissions intensity per unit price of capital goods, referring to the GHG Protocol's
Corporate Value Chain (Scope 3) Accounting and Reporting Standard. For emission
intensity, we used information from the Emission Intensity Database Ver. 3 and IDEAv2(for supply chain GHG emissions calculation) published on the Green Value Chain
Platform. We have included an adjustment for consumption tax.

Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
248,000

Comment
We referenced the GHG Protocol's Corporate Value Chain (Scope 3) Accounting andReporting Standard. For emission unit values, we used information from the Emissions
Unit Values Ver. 3 and IDEAv2 (for calculating supply chain greenhouse gases)
published on the Green Value Chain Platform. GHG emissions resulting from theextraction, production, and transportation of purchased fuels and fuels used to produce
purchased electricity and steam.
Fuel: Annual purchases multiplied by the emissions unit value of each fuel.
Electricity and steam: Calculated by multiplying the amount of electricity and steam
purchased from external sources by the emissions unit value at the time of fuelprocurement and when transmission and distribution losses are taken into account.

Scope 3 category 4: Upstream transportation and distribution
Base year start
April 1, 2020

Base year end
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

March 31, 2021

Base year emissions (metric tons CO2e)
37,000Comment
CO2 emissions of Taiyo Nippon Sanso and Nippon Ekitan as specified shippers reported
under the Act on Promotion of Global Warming Countermeasures are calculated bydeducting CO2 emissions of logistics subsidiaries included in Scope 1 emissions. CO2
emissions from the transportation and distribution of products for which Taiyo Nippon
Sanso and Nippon Ekitan incurred transportation costs are included in this category.

Scope 3 category 5: Waste generated in operations
Scope 3 category 1: Purchased goods and services
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
2,000Comment
Emissions intensity is calculated by multiplying industrial waste emissions byemissions intensity by waste type (including the transportation stage), referring to the
Corporate Value Chain (Scope 3) Accounting and Reporting Standard of the GHG
Protocol. The emission unit values are referenced from the emissions unit value
database Ver.3 published on the Green Value Chain Platform homepage.

Scope 3 category 6: Business travel
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
1,000

Comment
Calculated by multiplying the number of employees of Taiyo Nippon Sanso and its
domestic consolidated subsidiaries by the emission intensity per employee (0.13 tonCO2/capita/year). We referenced the Corporate Value Chain (Scope 3) Accounting andReporting Standard of the GHG Protocol. Emission intensity was calculated using

50

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

information from the emissions unit value database Ver.3 published on the Green Value
Chain Platform and IDEAv2 (for supply chain GHG emissions calculation).

Scope 3 category 7: Employee commuting
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
3,000

Comment
Taiyo Nippon Sanso employees: For train commuters, emissions intensity is calculated
by multiplying the annual commuter pass allowance by the amount of transportation
expense paid. For employees who commute to work by car, the number of working days
per year and the emissions intensity per person-km of private passenger cars are
multiplied by the round-trip commuting distance. Employees of domestic consolidated
subsidiaries: calculated by multiplying the number of employees by the number ofworking days per year and emission intensity per working day. We referenced the"Corporate Value Chain (Scope 3) Accounting and Reporting Standards" of the GHG
Protocol. For emission intensity, we used information from the emissions unit value
database Ver. 3 and IDEAv2 (for calculating supply chain GHG emissions), which areavailable on the Green Value Chain Platform.

Scope 3 category 8: Upstream leased assets
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)0

Comment
Category 8 is not relevant to our company as our costs for lease assets surmount toless than 0.1% of our total sales.

Scope 3 category 9: Downstream transportation and distribution
Base year star
April 1, 2020

Base year end
March 31, 2021

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Base year emissions (metric tons CO2e)0

Comment
Most Japanese domestic downstream transportation is handled by group companies
and are therefore reported in Category 4. By this logic, emissions in Category 9 are also
irrelevant.

Scope 3 category 10: Processing of sold products
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)0

Comment
According to the chemical sector guidance published by the WBCSD (the "Guidance for
Accounting and Reporting Corporate GHG Emissions in the Chemical Sector Value
Chain") chemical companies are not required to report Scope 3, Category 10 emissions
because of the diversity of applications and customer structure, making difficult to obtainreliable figures. Therefore, Category 10 emissions are not relevant to us.

Scope 3 category 11: Use of sold productBase year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)2,436,000

Comment
Emissions are calculated based on the propane gas (LPG) sold to customers outside of
the Taiyo Nippon Sanso Group, the CO2 emissions from liquid carbon gas and dry ice
usage, and the CO2 emissions from electricity used during air separation unit operation(worth the years of depreciation during accounting). We use the GHG Protocol's"corporate value chain (scope 3) accounting and reporting standard". For emission unit
values, we reference the emissions unit value database Ver.3 published on the Green
Value Chain Platform homepage and information in IDEAv2 (for calculating supply chain
greenhouse gases).

Scope 3 category 12: End of life treatment of sold products
Base year start52

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)0

Comment
Our main products (oxygen, nitrogen, and argon) are not applicable because they returnto the atmosphere. Fuel, carbon dioxide and dry ice are answered in category 11. Highpressure gas containers are rental items and are not disposed of at customer sites.
Industrial gases with high global warming potential are detoxified after use and not
directly released to the atmosphere. The air separation unit (in plants) itself is notdisposed of at customer sites. Based on the above, we concluded that Category 12 is
not relevant because it is relatively small compared to the other categories.

Scope 3 category 13: Downstream leased assets
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)0

Comment
As our lease assets attribute to less than 0.2% of our total assets, Category 13 is not
relevant to our company.

Scope 3 category 14: Franchises
Base year start
April 1, 2020

Base year end
March 31, 2021

Base year emissions (metric tons CO2e)0

Comment
Category 14 is not applicable as we have no franchise businesses.

Scope 3 category 15: Investments
Base year start
April 1, 2020

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Base year end
March 31, 2021

Base year emissions (metric tons CO2e)
687,000

Comment
The GHG emissions of each of Taiyo Nippon Sanso's seven major affiliated companies
in Japan are multiplied by our shareholding ratio (as of the end of the fiscal year). The
GHG emissions of the seven companies are based on the actual results for the relevant
aggregation period.

Scope 3: Other (upstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3: Other (downstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

C5.3(C5.3) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate emissions.
Act on the Rational Use of Energy
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with
Global Warming, Superseded by Revision of the Act on Promotion of Global
Warming Countermeasures (2005 Amendment)
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)54

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

The Greenhouse Gas Protocol: Scope 2 Guidance
The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard

C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
1,139,000

Comment

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment

C6.3(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
3,942,000

Scope 2, market-based (if applicable)
4,764,000

Comment

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting
boundary which are not included in your disclosure?
Yes

C6.4a
(C6.4a) Provide details of the sources of Scope 1, Scope 2, or Scope 3 emissions thatare within your selected reporting boundary which are not included in yourdisclosure.

Source of excluded emissions
Some subsidiaries outside Japan

Scope(s) or Scope 3 category(ies)
Scope 1
Scope 2 (location-based)
Scope 2 (market-based)

Relevance of Scope 1 emissions from this source
Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source
Emissions are not relevant

Relevance of Scope 3 emissions from this source<Not Applicable>

Date of completion of acquisition or merger<Not Applicable>

Estimated percentage of total Scope 1+2 emissions this excluded source
represents
3

Estimated percentage of total Scope 3 emissions this excluded source
represents<Not Applicable>

Explain why this source is excluded
Non-Japan subsidiaries with very small emissions are not included. They make up lessthan 3% of our total emissions.
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Explain how you estimated the percentage of emissions this excluded source
represents
Some subsidiaries located overseas are offices and their main emissions are Scope 1
and 2. The calculation method is based on the average Scope 1, 2 of offices in Japan,
divided by the total emissions to give the percentage for excluded emissions.

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
877,057

Emissions calculation methodology
Expenditure-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
The emission intensity of each product or service is calculated by multiplying thequantity of products or services purchased by TAIYO NIPPON SANSO (physical data
and monetary data) by the emission intensity of each product or service. The GHG
Protocol's "GHG emissions intensity" is calculated by multiplying the volume (physicaland monetary data) of TAIYO NIPPON SANSO's purchases of products and services by
the emissions intensity of the respective products and services. Corporate Value Chain(Scope 3) Accounting and Reporting Standards" of the GHG Protocol. For emission
intensity, we used information from the Emission Intensity Database Ver. 3 and IDEAv2(for calculating supply chain GHG emissions), which are available on the Green Value
Chain Platform.

Capital goods
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
67,033Emissions calculation methodology
Investment-specific method57

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Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Emissions intensity is calculated by multiplying capital investment in the reporting yearby the emissions intensity per unit price of capital goods, referring to the GHG Protocol's
Corporate Value Chain (Scope 3) Accounting and Reporting Standard. For emission
intensity, we used information from the Emission Intensity Database Ver. 3 and IDEAv2(for supply chain GHG emissions calculation) published on the Green Value Chain
Platform. Consumption tax correction is included.

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
261,000

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
The GHG Protocol's Corporate Value Chain (Scope 3) Accounting and ReportingStandard is referenced. For emission intensity, we used information from the Emission
Intensity Database Ver. 3 and IDEAv2 (for calculating supply chain GHG emissions)published on the Green Value Chain Platform.
GHG emissions resulting from the extraction, production, and transportation ofpurchased fuels and fuels used to produce purchased electricity and steam.
Fuel: Annual purchases multiplied by the emissions intensity of each fuel.
Electricity and steam: Calculated by multiplying the amount of electricity and steam
purchased from external sources by the emissions intensity at the time of fuelprocurement and when transmission and distribution losses are taken into account.

Upstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
36,000Emissions calculation methodology
Fuel-based method58

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
CO2 emissions of TAIYO NIPPON SANSO and Nippon Liquefied Coal as specified
shippers reported under the Law Concerning the Promotion of the Measures to Copewith Global Warming are calculated by deducting CO2 emissions of logistics
subsidiaries included in Scope 1 emissions. CO2 emissions from the transportation anddistribution of products for which Taiyo Nippon Sanso and Nippon Liquefied Carbon
incurred transportation costs are included in this category.

Waste generated in operations
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Emissions intensity is calculated by multiplying industrial waste emissions by emissions
intensity by waste type (including transportation stage), referring to the GHG Protocol's"Corporate Value Chain (Scope 3) Accounting and Reporting Standard". The emission
intensity used information from the Emission Intensity Database Ver. 3 published by theGreen Value Chain Platform.

Business travel
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
832

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Calculated by multiplying the number of employees of Taiyo Nippon Sanso and its
domestic consolidated subsidiaries by the emission intensity per employee (0.13 tonCO2/capita/year), referring to the Corporate Value Chain (Scope 3) Accounting andReporting Standard of the GHG Protocol. Emission intensity was calculated using
information from the Emission Intensity Database Ver. 3 and IDEAv2 (for supply chain
GHG emissions calculation) published on the Green Value Chain Platform.

Employee commuting
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
3,047

Emissions calculation methodology
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Taiyo Nippon Sanso employees: For train commuters, emissions intensity is calculated
by multiplying the annual commuter pass allowance by the amount of transportation
expense paid. For employees who commute to work by car, the number of working days
per year and the emissions intensity per person-km of private passenger cars are
multiplied by the round-trip commuting distance. Employees of domestic consolidated
subsidiaries: calculated by multiplying the number of employees by the number ofworking days per year and emission intensity per working day, referring to the"Corporate Value Chain (Scope 3) Accounting and Reporting Standards" of the GHG
Protocol. For emission intensity, we used information from the Emission Intensity
Database Ver. 3 and IDEAv2 (for calculating supply chain GHG emissions) published on
the Green Value Chain Platform.

Upstream leased assets
Evaluation status
Not relevant, explanation provided

Please explain
Since the cost to the leased assets is less than 0.1% of NSHD's revenues, Category 8
emissions are not relevant.

Downstream transportation and distribution
Evaluation status
Not relevant, explanation provided

Please explain
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Most downstream transportation in Japan is performed by group companies andreported in category 4. Therefore, we assume that emissions in Category 9 are not
relevant.

Processing of sold products
Evaluation status
Not relevant, explanation provided

Please explain
As stated in the Chemical Sector Guidance issued by the WBCSD (Guidance on
Accounting and Reporting Corporate GHG Emissions in the Chemical Sector Value
Chain)
Chemical companies are not required to report Scope 3 or Category 10 emissions
because of the diversity of applications and customer structures, which make it difficult
to obtain reliable figures.
Therefore, Scope 3 and Category 10 emissions do not need to be reported. Therefore,
we have assumed that Category 10 emissions are not relevant.

Use of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1,381,741

Emissions calculation methodology
Methods related to direct emissions at the stage of use, please answer in detailCO2 emissions from the use of propane gas (LPG), liquefied carbon dioxide gas, anddry ice sold to customers outside the Taiyo Nippon Sanso Group, and CO2 emissions
from the use of electricity during the operation of air separation equipment (for thenumber of years of depreciation in accounting) are recorded.
Percentage of emissions calculated using data obtained from suppliers or value
chain partners
1,381,741

Please explain
CO2 emissions from the use of propane gas (LPG), liquefied carbon dioxide gas, anddry ice sold to customers outside the Taiyo Nippon Sanso Group, and CO2 emissions
from the use of electricity during the operation of air separation equipment (for theamortization period in the accounting) are recorded. Scope 3) Accounting and ReportingStandards" of the GHG Protocol. Emission intensity was calculated using informationfrom the Emission Intensity Database Ver. 3 and IDEAv2 (for calculating supply chain
GHG emissions) published on the Green Value Chain Platform.

End of life treatment of sold products

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Evaluation status
Not relevant, explanation provided

Please explain
NSHD's major products (oxygen, nitrogen, and argon) are not applicable as they only
return to the atmosphere. Fuel and carbon dioxide and dry ice are answered in Category
11. In addition, high-pressure gas containers are rental items and are not disposed of at
the customer's site. Industrial gases with high global warming potential are detoxified
after use and are not released directly into the atmosphere. Furthermore, the air
separation equipment (plant) itself is not disposed of at the customer's site. Based on
the above, the emissions of Category 12 are not relevant because the emissions are
sufficiently small compared to other categories.

Downstream leased assets
Evaluation status
Not relevant, explanation provided

Please explain
Since the attribution of leased assets to total assets is less than 0.2%, Category 13
emissions are not relevant.

Franchises
Evaluation status
Not relevant, explanation provided

Please explain
Since NSHD has no franchise business, it states that Category 14 emissions are not
relevant.

Investments
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)679,000

Emissions calculation methodology
Supplier-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
The GHG emissions of each of TAIYO NIPPON SANSO's seven major affiliatedcompanies in Japan are multiplied by our shareholding ratio (as of the end of the fiscal

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

year). The GHG emissions of the seven companies are based on the actual results forthe relevant aggregation period.

Other (upstream)
Evaluation status

Please explain

Other (downstream)
Evaluation status

Please explain

C6.7(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to yourorganization?
No

C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.
Intensity figure
0.0000049744

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)5,903,000

Metric denominator
unit total revenue

Metric denominator: Unit total
1,186,683,000,000

Scope 2 figure used
Market-based% change from previous year
21

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Direction of change
Decreased

Reason(s) for change
Change in revenue

Please explain
Sales for FYE2023 and FYE2022 were 1,186,683 million yen and 957,169 million yen,respectively. The increase in sales was due to higher selling prices in line with risingcosts, such as global energy costs, rising commodity prices, and the yen's depreciation.
Therefore, sales, the denominator of the unit of measure, increased, resulting in adecrease in the unit of measure.

C7. Emissions breakdowns
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes

C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
Greenhousegas

Scope 1 emissions (metric tons of
CO2e)

GWP Reference

CO2

1,120,000

IPCC Fourth Assessment Report (AR4 –
100)

CH4

2

IPCC Fourth Assessment Report (AR4 –
100)

N2O

11,187IPCC Fourth Assessment Report (AR4 –
100)

HFCs

3,426

IPCC Fourth Assessment Report (AR4 –
100)

PFCs

558

IPCC Fourth Assessment Report (AR4 –
100)

SF6

3,341

IPCC Fourth Assessment Report (AR4 –
100)

NF3

0

IPCC Fourth Assessment Report (AR4 –
100)

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

C7.2(C7.2) Break down your total gross global Scope 1 emissions by country/area/region
Country/area/region

Scope 1 emissions (metric tons CO2e)

United States of America

1,034,000

Europe63,000Japan

18,000

Other, please specify

24,000Asia Pacific, Australia

C7.3(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By business division

C7.3a(C7.3a) Break down your total gross global Scope 1 emissions by business division.
Business division

Scope 1 emissions (metric ton
CO2e)

HyCO（ Hydrogen and carbon monoxide production

995,000

equipment ）transport

103,000

ASU（ Air Separator ）17,000Other

24,000C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/CST7.4/C-TO7.4/C-TS7.4(C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4) 4)
Break down your organization’s total gross global Scope 1 emissions by sector
production activity in metric tons CO2e
Gross Scope 1 emissions, metric tons CO2e
Chemicals production activity

Comment

1,139,000

C7.5(C7.5) Break down your total gross global Scope 2 emissions by country/area/region.
Country/area/region

Scope 2, location-based (metrictons CO2e)

Scope 2, market-based (metrictons CO2e)
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Japan

1,576,000

2,035,000

United States ofAmerica

1,148,000

1,249,000

Europe586,000

853,000

Other, please specify

633,000

626,000

Asia Pacific, Australia

C7.6(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By business division

C7.6a(C7.6a) Break down your total gross global Scope 2 emissions by business division.
Business division

Scope 2, location-based(metric tons CO2e)

Scope 2, market-based(metric tons CO

ASU（ Air Separator ）3,697,000

4,460,000

Liquefied carbonic acid production

133,000

172,000

HyCO（ Hydrogen and carbon monoxide 52,000

68,000production equipment ）other

60,00064,000C7.7(C7.7) Is your organization able to break down your emissions data for any of thesubsidiaries included in your CDP response?
Yes

C7.7a
(C7.7a) Break down your gross Scope 1 and Scope 2 emissions by subsidiary. 。

Subsidiary nameTAIYO NIPPON SANSO

Primary activity
Inorganic base chemical

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

ISIN code – bond<Not Applicable>

ISIN code – equity<Not Applicable>

CUSIP number<Not Applicable>

Ticker symbol<Not Applicable>

SEDOL code
<Not Applicable>

LEI number<Not Applicable>

Other unique identifier<Not Applicable>

Scope 1 emissions (metric tons CO2e)
10,066

Scope 2, location-based emissions (metric tons CO2e)53,968

Scope 2, market-based emissions (metric tons CO2e)55,497

Comment

C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/CTO7.7/C-TS7.7(C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7) Break down
your organization’s total gross global Scope 2 emissions by sector production
activity in metric tons CO2e.

Chemicals
production activities

Scope 2, location-based,
metric tons CO2e

Scope 2, market-based (ifapplicable), metric tons CO2e

3,942,000

4,764,000

Comment

C-CH7.8(C-CH7.8) Disclose the percentage of your organization’s Scope 3, Category 1
emissions by purchased chemical feedstock.
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Purchased
feedstock

Percentage of Scope
3, Category 1 tCO2e
from purchased
feedstock

Explain calculation methodology

Other (please
specify)
Propane gas +Butane gas

23

The emission factor used was the most suitablecoefficient (0.8156kg-CO2/kg) available in theemission intensity database IDEAv2 (for calculating
supply chain greenhouse gases).

Other (please
specify)

43

The emission factor used was the most suitablevariable (11.38tCO2/million yen) available in theemission intensity database IDEAv2 (for calculating
supply chain greenhouse gases).

(Semiconductormaterial gas)

C-CH7.8a(C-CH7.8a) Disclose the percentage of your organization’s Scope 3, Category 1
emissions by purchased chemical feedstock.
Sales, metric tons
Carbon dioxide (CO2)225

Methane (CH4)

4

Nitrous oxide (N2O)

822

Hydrofluorocarbons (HFC)37

Perfluorocarbons (PFC)463

Sulphur hexafluoride (SF6)92

Nitrogen trifluoride (NF3)

737

Comment

Medical laughing gas is not included

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
Decreased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to theprevious year.

Change inrenewable

Change inemissions(metric to

Direction of Emissionschange in valueemissions (percentage)

Please explain calculation

3,190

Decreased

We had a business site that introduced
renewable energy (solar panels). In

0.054

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energyconsumption

Other
emissions
reduction
activities

FYE2022, our total Scope 1 and Scope
2 emissions were 5,921,000 tons. The
reduction rate was calculated as follows:
3,190/5,921,000 = 0.054%.
6,597

Decreased

0.11

Through the computerized operation
optimization of our air separation units,
we succeeded in reduction 2,933 tons ofCO2. Additionally, by updating
equipment, we achieved a CO2
reduction of 3,614 tons, that is a total of
6,597 tons. In FYE2022, our total Scope
1 and Scope 2 emissions were
5,921,000 tons. The reduction rate wascalculated as follows: 6,597/5,921,000 =0.11%.

166,000

Decreased

2.8

ASU production for FYE2023 was 95%of the previous year. The percentage
decrease was calculated as
166,000/5,921,000 = 2.8%.

103,000

Increased

1.7

Two U.S. subsidiaries (Continental
Carbonic Products, Inc. and WesternInternational Gas & Cylinders, Inc.) wereadded to the Boundary from FYE2023.

Divestment
Acquisitions
Mergers
Change in
outputChange inmethodology
Change inboundary

The increase was calculated as
103,000/5,921,000 = 1.7%.
Change inphysicaloperatingconditions
Unidentified
Other

C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Market-based

C8. Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 15% but less than or equal to 20%

C8.2(C8.2) Select which energy-related activities your organization has undertaken
Indicate whether your organization undertook this energyrelated activity in the reporting year
Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

Yes

Consumption of purchased or
acquired steam

Yes

Consumption of purchased or
acquired cooling

Yes

Generation of electricity, heat,steam, or cooling

Yes

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.

Consumption of fuel(excluding feedstock)
Consumption ofpurchased or acquired
electricity

Heatingvalue

MWh from
renewable
sources

MWh from nonrenewablesources

Total (renewable
and nonrenewable) MWh

HHV (higher
heatingvalue)

03,445,000

3,445,000

875,000

9,603,000

10,478,000

70Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Consumption ofpurchased or acquired
heat

0

2,000

2,000

Consumption ofpurchased or acquired
steam

0

197,000

197,000

Consumption ofpurchased or acquired
cooling

0

2,000

2,000

Consumption of selfgenerated non-fuelrenewable energy

2,000

Total energy
consumption

877,000

2,000

13,249,000

14,126,000

C-CH8.2a(C-CH8.2a) Report your organization’s energy consumption totals (excluding
feedstocks) for chemical production activities in MWh. Consumption of fuel(excluding feedstocks)
Heating value
HHV(higher heating value)

MWh consumed from renewable sources inside chemical sector boundary0

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
3,445,000

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
3,445,000

Consumption of purchased or acquired electricity
MWh consumed from renewable sources inside chemical sector boundary
875,000

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
9,603,000
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
10,478,000

Consumption of purchased or acquired heat
MWh consumed from renewable sources inside chemical sector boundary0

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
2,000

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
2,000

Consumption of purchased or acquired steam
MWh consumed from renewable sources inside chemical sector boundary0

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
197,000

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
197,000

Consumption of purchased or acquired cooling
MWh consumed from renewable sources inside chemical sector boundary0

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

2,000

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
2,000

Consumption of self-generated non-fuel renewable energy
MWh consumed from renewable sources inside chemical sector boundary
2,000

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
0

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
2,000

Total energy consumption
MWh consumed from renewable sources inside chemical sector boundary
877,000

MWh consumed from non-renewable sources inside chemical sector
boundary (excluding recovered waste heat/gases)
13,249,000

MWh consumed from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary
0

Total MWh (renewable + non-renewable + MWh from recovered waste
heat/gases) consumed inside chemical sector boundary
14,126,000

C8.2b(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes thisfuel application
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Consumption of fuel for the generation ofelectricity

No

Consumption of fuel for the generation of
heat

Yes

Consumption of fuel for the generation of
steam

Yes

Consumption of fuel for the generation ofcooling

Yes

Consumption of fuel for co-generation or
tri-generation

No

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment

Other biomass
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam
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0

MWh fuel consumed for self-generation of cooling0Comment

Other renewable fuels (e.g. renewable hydrogen)Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment

Coal
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment

Oil
Heating value
HHV75

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Total fuel MWh consumed by the organization
763,000

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment
Fuel consumed for on-site generation of heat, steam and cold will be considered for
aggregation in the future.

Gas
Heating value
HHV

Total fuel MWh consumed by the organization
898,000

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment
Fuel consumed for on-site generation of heat, steam and cooling will be considered fortabulation in the future.

Other non-renewable fuels (e.g. non-renewable hydrogen)Heating value
HHV

Total fuel MWh consumed by the organization
1,785,000

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam
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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

MWh fuel consumed for self-generation of cooling0Comment
Fuel consumed for on-site generation of heat, steam and cold will be considered fortabulation in the future.

Total fuelHeat value
HHV

Total fuel MWh consumed by the organization
3,445,000

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling0Comment
Fuel consumed for on-site generation of heat, steam and cold will be considered fortabulation in the future.

C8.2d(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation(MWh)

Generation that isconsumed by theorganization (MWh)Gross generation s (MWh) Generation fromfrom renewable
renewable sources that issources (MWh)consumed by theorganization (MWh)Electricity 2,000

2,000

2,000

2,000

Heat

0

0

0

0

Steam

0

0

0

0

Cooling

0

0

0

0

C-CH8.2d(C-CH8.2d) Provide details on electricity, heat, steam, and cooling your organization
has generated and consumed for chemical production activities.
Electricity
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Total gross generation inside chemicals sector boundary (MWh)2,000Generation that is consumed inside chemicals sector boundary (MWh)2,000Generation from renewable sources inside chemical sector boundary (MWh)2,000Generation from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary (MWh)0

HeatTotal gross generation inside chemicals sector boundary (MWh)0Generation that is consumed inside chemicals sector boundary (MWh)0Generation from renewable sources inside chemical sector boundary (MWh)0Generation from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary (MWh)0

SteamTotal gross generation inside chemicals sector boundary (MWh)0Generation that is consumed inside chemicals sector boundary (MWh)0Generation from renewable sources inside chemical sector boundary (MWh)0Generation from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary (MWh)0Cooling
Total gross generation inside chemicals sector boundary (MWh)0Generation that is consumed inside chemicals sector boundary (MWh)078Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Generation from renewable sources inside chemical sector boundary (MWh)0Generation from waste heat/gases recovered from processes using fuelfeedstocks inside chemical sector boundary (MWh)0

C8.2e(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts thatwere accounted for at a zero or near-zero emission factor in the market-based Scope
2 figure reported in C6.3

Country/area of low-carbon energy consumption
United States of America

Sourcing method
Physical power purchase agreement (physical PPA) with a grid-connected generator

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)7,500

Tracking instrument used
Contract

Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)2022

Comment

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Country/area of low-carbon energy consumption
Japan

Sourcing method
Purchase from an on-site installation owned by a third party (on-site PPA)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)150

Tracking instrument used
Contract

Country/area of origin (generation) of the low-carbon energy or energy
attributeJapan

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)2022

Comment

Country/area of low-carbon energy consumption
Spain

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology type
Solar

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)296,000

Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Spain

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

Country/area of low-carbon energy consumption
Belgium

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)135,000

Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Belgium

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
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Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

Country/area of low-carbon energy consumption
Italy

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)127,000

Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

Country/area of low-carbon energy consumption
United Kingdom of Great Britain and Northern Ireland

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
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Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)7,000Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
United Kingdom of Great Britain and Northern Ireland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

Country/area of low-carbon energy consumption
Denmark

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)4,000Tracking instrument used
GO（Guarantee of Origin)

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Country/area of origin (generation) of the low-carbon energy or energy
attributeDenmark

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

Country/area of low-carbon energy consumption
Portugal

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,000Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Portugal

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

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Country/area of low-carbon energy consumption
Ireland

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,000Tracking instrument used
GO（Guarantee of Origin)

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Ireland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment

C8.2g(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in
the reporting year.

Country/areaJapan

Consumption of purchased electricity (MWh)150

Consumption of self-generated electricity (MWh)85

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

50

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
200

Country/area
Other, please specify
Asia/Oceania

Consumption of purchased electricity (MWh)0Consumption of self-generated electricity (MWh)1,500

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
1,500Country/area
United States of America

Consumption of purchased electricity (MWh)7,500

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
7,500

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C-CH8.3(C-CH8.3) Does your organization consume fuels as feedstocks for chemical
production activities?
Yes

C-CH8.3a(C-CH8.3a) Disclose details on your organization’s consumption of fuels as
feedstocks for chemical production activities.

Fuels used as feedstocks
Natural gas

Total consumption
381,000

Total consumption unit
Thousand cubic metrics

Inherent carbon dioxide emission factor of feedstock, metric tons CO2 per
consumption unit
2.21

Heating value of feedstock, MWh per consumption unit
12.08

Heating value
HHV

Comment

C-CH8.3b(C-CH8.3b) State the percentage, by mass, of primary resource from which yourchemical feedstocks derive.
Percentage of total chemical feedstock
(%)
Oil

0

Natural Gas

100

Coal

0

Biomass0

Waste(non-biomass)

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Fossil fuel (where coal, gas, oil cannot be
distinguished)0

Unknown source or unable to disaggregate

0

C9. Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

C-CH9.3a(C-CH9.3a) Provide details on your organization’s chemical products.

Output product
Other, please specify
Nitrogen gas

Production (metric tons)
8,587,000

Capacity (metric tons)
8,587,000

Direct emissions intensity (metric tons CO2e per metric ton of product)
0Electricity intensity (MWh per metric ton of product)
0.244

Steam intensity (MWh per metric ton of product)0

Steam/ heat recovered (MWh per metric ton of product)
0Comment
The direct emissions (Scope 1) and steam use in the production of nitrogen gas by air
separation units (ASUs) are very small, so we are disclosing them as "0".

Output product
Other, please specify
Liquid nitrogen

Production (metric tons)
88Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

3,861,000

Capacity (metric tons)
3,861,000

Direct emissions intensity (metric tons CO2e per metric ton of product)
0Electricity intensity (MWh per metric ton of product)
0.789

Steam intensity (MWh per metric ton of product)0

Steam/ heat recovered (MWh per metric ton of product)
0Comment
The direct emissions (Scope 1) and steam use in the production of nitrogen gas by air
separation units (ASUs) are very small, so we are disclosing them as "0”.

Output product
Other, please specify
Oxygen gas

Production (metric tons)
7,769,000

Capacity (metric tons)
7,769,000

Direct emissions intensity (metric tons CO2e per metric ton of product)
0Electricity intensity (MWh per metric ton of product)
0.235

Steam intensity (MWh per metric ton of product)0

Steam/ heat recovered (MWh per metric ton of product)
0Comment
The direct emissions (Scope 1) and steam use in the production of nitrogen gas by air
separation units (ASUs) are very small, so we are disclosing them as "0”.

Output product89

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Other, please specify
Liquid oxygen

Production (metric tons)
1,750,000

Capacity (metric tons)
1,750,000

Direct emissions intensity (metric tons CO2e per metric ton of product)
0Electricity intensity (MWh per metric ton of product)
0.77

Steam intensity (MWh per metric ton of product)0

Steam/ heat recovered (MWh per metric ton of product)
0Comment
The direct emissions (Scope 1) and steam use in the production of nitrogen gas by air
separation units (ASUs) are very small, so we are disclosing them as "0”.

Output product
Other, please specify
Gas argon + liquefied argon

Production (metric tons)
420,000

Capacity (metric tons)
420,000

Direct emissions intensity (metric tons CO2e per metric ton of product)
0Electricity intensity (MWh per metric ton of product)
1.122

Steam intensity (MWh per metric ton of product)0

Steam/ heat recovered (MWh per metric ton of product)
0Comment

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Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

The direct emissions (Scope 1) and steam use in the production of nitrogen gas by air
separation units (ASUs) are very small, so we are disclosing them as "0"

C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/CMM9.6/C-OG9.6/C-RE9.6/C-ST9.6/C-TO9.6/C-TS9.6(C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/C-MM9.6/C-OG9.6/C-RE9.6/CST9.6/C-TO9.6/C-TS9.6) Does your organization invest in research and development(R&D) of low-carbon products or services related to your sector activities? Investment
in low-carbon R&D Comment

Row
1

Investment in lowcarbon R&D

Comment

Yes

Research and development of products that contribute toenvironmental preservation.

C-CH9.6a(C-CH9.6a) Provide details of your organization’s investments in low-carbon R&D for
chemical production activities over the last three years.

Technology area
Unable to disaggregate by technology area

Stage of development in the reporting year

Average % of total R&D investment over the last 3 years
25

R&D investment figure in the reporting year (unit currency as selected in C0.4)(optional)

Average % of total R&D investment planned over the next 5 years
25

Explain how your R&D investment in this technology area is aligned with yourclimate commitments and/or climate transition plan
Environment-related development themes identified by the Sustainable WG areapproved by the Technology Development Strategy Meeting as R&D costs inenvironmental accounting.

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C10. Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2(location based or market based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions and attach the relevant statements.

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance
Limited assurance

Attach the statement
Third Party Verification.pdf

Page/ section reference
Third Party Verification p1

Relevant standard
ISAE3000

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.

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Scope 2 approach
Scope 2 market-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance
Limited assurance

Attach the statement
Third Party Verification.pdf

Page/ section reference
Third Party Verification p1

Relevant standard
ISAE3000

Proportion of reported emissions verified (%)
100

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Investments
Scope 3: Use of sold products

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance93

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Limited assurance

Attach the statement
Third Party Verification.pdf

Page/section reference
Page 1

Relevant standard
ISAE3000

Proportion of reported emissions verified (%)
100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
Yes

C10.2a(C10.2a) Which data points within your CDP disclosure have been verified, and which
verification standards were used?
Disclosure module
Data verified
verification relates to
C5. Emissions
performance

Verification
standard

Year on year change in ISAE3000
emissions (Scope 1 and
2)Please explain
Third Part Assurance
report(Third Party Verification)
p1
Integrated report(Integrated
Report)2022 p116-119、p126129
1, 2

1Third Party Verification.pdf
2Integrated Report2022.pdf

C11. Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

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C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
EU ETS

C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you
are regulated by.
EU ETS% of Scope 1 emissions covered by the ETS
7% of Scope 2 emissions covered by the ETS
0Period start date
April 1, 2022

Period end date
March 31, 2023

Allowances allocated
4,626

Allowances purchased
0

Verified Scope 1 emissions in metric tons CO2e
63.47

Verified Scope 2 emissions in metric tons CO2e854.136

Details of ownership
Facilities we own and operate

Comment”Allowances allocated” are redeemed at the register.
% of Nippon Gases Europe Scope 1 and Scope2 are covered by

C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or
anticipate being regulated by?
In the broadest sense, carbon pricing (Yen/t-CO2) applies to energy prices, energy
taxed, FITs, emissions permits, and carbon taxes. As for our business, our main95

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

products involve the manufacturing of N2, O2, and Ar; a process requiring mass amountsof electricity. If carbon
pricing was limited to carbon taxes, the financial effect on our company would be fairly
limited due to Japan's low carbon tax rate. However, as future laws and regulations
surrounding climate change strengthen, the tax rate and scope of the tax is expected to
expand. Specifically in Japan, there are many companies that have an intense
consumption of energy, meaning they are likely to be significantly impacted by the abovechanges. That is why, in line with the 2DS scenario in which regulations are continuallytightened, we analysed Japanese businesses centred around energy (industrial use
gases) and identified potential business and financial risks.
Additionally, as a countermeasure to broader carbon pricing, NSHD is actively using
the levy reduction and exemption system. Under this system, electricity intensive
businesses can apply for a reduction or exemption of the levy from the viewpoint ofmaintaining and strengthening their international competitiveness. NSHD has beenutilizing this system since its establishment in 2012. The levy for certified business sites
is reduced or exempted by 80% or 40%, depending on the improvement of thebusiness's basic per unit of sales. NSHD has applied for exemption for 18 companies inJapan and has received billions of yen in exemptions.

C11.2(C11.2) Has your organization cancelled any project-based carbon credits within thereporting year?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes

C11.3a(C11.3a) Provide details of how your organization uses an internal price on carbon.

Type of internal carbon priceShadow priceHow the price is determined
Alignment with the price of a carbon tax

Alignment with the price of a carbon tax
Change internal behaviour

Scope(s) covered
Scope 1
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Pricing approach used – spatial varianceDifferentiatedPricing approach used – temporal variance
Evolutionary

Indicate how you expect the price to change over time
The internal carbon price is subject to change based on periodic checks of the external
environment.

Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)
4,500

Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)
4,500

Business decision-making processes this internal carbon price is applied to
Risk management
Opportunity management

Mandatory enforcement of this internal carbon price within these businessdecision-making processes
Yes, for some decision-making processes, please specify
In our domestic Japanese business divisions, we proactively identify the following
issues regarding the entire group: how much more CO2 is emitted from new capital
expenditures, if there are any reduction contributions as a result of new capital
expenditures, or the scope of the potential finances.
We base changes to our internal carbon price on periodic checks of external trends.

Explain how this internal carbon price has contributed to the implementationof your organization’s climate commitments and/or climate transition plan
The introduction of shadow pricing is outside the scope of investment calculations, but it
is always included in planned investment projects and is used as one of the indicators
when making investment decisions. The manufacture of separated gas, our corebusiness, consumes a large amount of electricity. Attempting to reduce this electricity
consumption is an important measure for the continuation of this business. The
introduction of ICP has also raised the environmental awareness of each business unit
and group company, and we are promoting the replacement of equipment with highefficiency equipment.

C12. Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
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Yes, our suppliers
Yes, our customers/clients
Yes, other partners in the value chain

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagement
Engagement & incentivization (changing supplier behaviour)

Details of engagement
Run an engagement campaign to educate suppliers about climate change% of suppliers by number
10% total procurement spend (direct and indirect)
16% of supplier-related Scope 3 emissions as reported in C6.5
8

Rationale for the coverage of your engagement[Rationale for choosing this supplier engagement]
Supplier management is becoming more important every year in the semiconductor
industry, and efforts to address climate change are active. NSHD's Japanese businessis 27% electronics, and NSHD's "Procurement Policy" and "Procurement Guidelines"
require suppliers to "consider the environment" in order to "adapt to and mitigate climatechange". NSHD's materiality requires suppliers to "establish and operateenvironmentally conscious management systems" for "climate change adaptation andmitigation. The scope of collaboration is as follows.
[Scope of Collaboration]
NSHD's Taiyo Nippon Sanso Corporation ("TNSC"), which operates in Japan, has
defined the semiconductor industry as the scope of collaboration.

Impact of engagement, including measures of success[Indicators of Success]
The threshold for success is the completion (in a single year) of 9 company interviews
for major suppliers with the lowest scoring checklist.
[Company-specific explanation of the impact of climate change engagement strategy
with customers]
NSHD's Taiyo Nippon Sanso Corporation ("TNSC"), which operates in Japan,
distributes a "Matters we would like you to share with your suppliers" guidebook to its
major suppliers in the semiconductor industry. This is a group-specific initiative, withplans set and progress managed every year, and is regarded as an activity for98

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27"sustainable supply chains" in the future. In FYE2023, we aim to complete interviews (ina single year) with suppliers scoring in the bottom half of the checklist and engage with
suppliers through two-way communication, not just distribution.

Comment

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with yourcustomers.

Type of engagement & Details of engagement
Collaboration & innovation
Run a campaign to encourage innovation to reduce climate change impacts% of customers by number
19% of customer - related Scope 3 emissions as reported in C6.5
0

Please explain the rationale for selecting this group of customers and scopeof engagement[Rationale for choosing this customer engagement]
The steel industry has traditionally been an energy-intensive market and a CO2 emitting
industry, accounting for 9% of total CO2 emissions into the atmosphere. Therefore,technological innovation is needed to achieve carbon neutrality in the steel industry. We
are cooperating with our customers in the steel industry to innovate technologies for therealization of a low-carbon society.
[Scope of Collaboration]
The scope of collaboration is with customers in the steel industry of Nippon Gases EuroHolding (NGE), an NSHD company operating in Europe. The steel industry accounts for
19% of NGE's sales.

Impact of engagement, including measures of success[Indicators of Success.]
Providing more hydrogen burners to NGE's customers in the steel industry than theprevious year is considered a measure of success.
[Company-specific description of impact of climate change engagement strategy withcustomers]
NSHD provides industrial gases in Japan, Europe, and the United States. In thisengagement, NSHD's European company, NGE and NGE's customer Sarralle, a steel
industry company based in Spain, have been working together since 2021 to
manufacture, supply, and integrate technology for hydrogen burners for the steel

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industry. Burners using green hydrogen do not emit GHGs during combustion, thus
significantly reducing the environmental impact compared to current burners that use
natural gas. The steel industry makes up 19% of NGE's sales in addition to contributing
9% of the worlds GHG emissions so by undertaking this project we believe cancontribute towards a low carbon society. NGE will provide the burner technology for thisengagement and Sarralle will implement the technology at the end-user level. NGE isproviding the burner technology for this engagement, while Sarralle is handling the enduser implementation. As a result, NGE is now able to offer hydrogen burners to more
and more customers each year. Going forward, NGE and Sarralle intend to further
promote the use of hydrogen burners in the steel industry.

C12.1d(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
Our Group collaborates with various research institutes and companies to develop technologies
that will enable a multilateral carbon neutral reality. Taiyo Nippon Sanso, a member of ourgroup, participated in the energy carrier "Ammonia Hydrogen Station Basic Technology" of theStrategic Innovation Program (SIP), a national project led by the Cabinet Office from FYE2014
to FYE2019, and conducted joint research with Tokyo Institute of Technology, the National
Institute of Advanced Industrial Science and Technology, Hiroshima University, Toyota
Industries, and Showa Denko K.K. Additionally, the company developed a highly efficienttechnology for recovering high-purity hydrogen for fuel cell vehicles from ammonia
decomposition gas in the "Ammonia Hydrogen Station Basic Technology" projectcommissioned by the SIP's "Energy Carrier" program. The company has also developed ahighly efficient technology for recovering high-purity hydrogen for fuel cell vehicles fromammonia cracking gas. Furthermore, the company has been selected as a contractor for the"Development of Fuel Ammonia Utilization and Production Technology / Development of FuelAmmonia Combustion Technology in Industrial Furnaces,". This is a project commissioned by
the New Energy and Industrial Technology Development Organization (NEDO), and thecompany will work for five years from FYE2022 to FYE2026 with AGC Inc, the National Instituteof Advanced Industrial Science and Technology (AIST), and Tohoku University to developammonia combustion technology in industrial furnaces, where fuel ammonia utilization
technology has not yet been established.

C12.2(C12.2) Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
No, but we plan to introduce climate-related requirements within the next two years

C12.3(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?
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Row 1
External engagement activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
Yes, our membership of/engagement with trade associations could influence policy, law,or regulation that may impact the climate

Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes

Attach commitment or position statement(s)JCIA's Stance as a Chemical Industry Toward Carbon Neutrality (C12.3)
Japan Chemical Industry Association. Chemical Industry's Stance on Carbon
Neutrality (C12.3).pdf

Describe the process(es) your organization has in place to ensure that yourexternal engagement activities are consistent with your climate commitments
and/or climate transition plan
The Japanese government's FYE2050 carbon neutrality declaration is an ambitiousgoal, but we believe it is the ideal way to move toward a sustainable society. We believethat this policy is also very important for the Japanese chemical industry to remaininternationally competitive. To achieve this goal, the chemical industry will accelerate its
efforts to further advance its processes and expand its contribution to reduction and will
make maximum efforts to reduce GHG emissions from energy and raw materials
through the development and social implementation of technologies such as CCU,
artificial photosynthesis, and chemical recycling toward a resource-recycling society.
Based on the above policy, NSHD will also incorporate climate change-related initiatives
into our Medium-term Management Plan.

C12.3b
(C12.3b) Provide details of the trade associations your organization is a member of, or
engages with, which are likely to take a position on any policy, law or regulation that
may impact the climate.

Trade association
Japan Chemical Industry Association

Is your organization’s position on climate change policy consistent with
theirs?
Consistent101

Nippon Sanso Holdings Corporation CDP Climate Change 2023 Questionnaire2023.07.27

Has your organization attempted to influence their position in the reporting
year?
Yes, we publicly promoted their current position

Describe how your organization’s position is consistent with or differs fromthe trade association’s position, and any actions taken to influence theirposition
The Japan Chemical Industry Association (JCIA) promotes various climate change
mitigation activities for its member companies.
1. Voluntary action plan on environment - member companies are trying to improveenergy consumption intensity to reduce CO
2. Greenhouse gas (GHG) emissions reduction - JCIA is promoting and educating the
public about the cLCA (Carbon Life Cycle Analysis) method, which looks at the entire
life cycle and ascertains the GHG emission reduction contribution of a product.
JCIA activities are managed by several working teams of the Technical Committee,
composed of participants from key member companies.
NSHD representatives participate in the majority of these working teams and strongly
support JCIA activities, including proposals to the Japanese government such as theintroduction of an emissions trading system and global development projects to promoteemission reduction products (global value chains).

Funding figure your organization provided to this trade association in thereporting year (currency as selected in C0.4)
8,625,900

Describe the aim of your organization’s funding
Membership dues, Supporting grants

Have you evaluated whether your organization’s engagement with this tradeassociation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
In mainstream reports

StatusComplete

Attach the document
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Securities Report FYE2023.pdf

Page/Section reference
p19-p25/（Approach to Sustainability and Initiatives）

Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets

Comment

C12.5(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related
to environmental issues for which you are a signatory/member.
Environmental
collaborative
framework, initiative
and/or commitment
Row Task Force on Climate1
related Financial
Disclosures (TCFD) UN
Global Compact

Describe your organization’s role within each framework,
initiative and/or commitment[TCFD]NSHD has announced its endorsement of the TCFD effective
November 2019.Through our endorsement of the TCFD, NSHD willfurther accelerate its existing efforts to reduce its environmental
impact, promote energy conservation activities, and expand therange of products that contribute to reducing GHG emissions, while
also gradually expanding information disclosure.
[The United Nations Global Compact]
NSHD has signed the United Nations Global Compact (UNGC) andwas registered as a participating company as of January 18, 2022.
We are also a member of the Global Compact Network Japan,
which consists of Japanese and other companies that have signed
the UNGC. In addition, Nippon Gases Euro-Holding S.L.U., an
NSHD company, has also signed the UNGC and is registered as aparticipating company.

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C15. Biodiversity
C15.1(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related issues within your organization?
Board-level oversight
Description of oversight and objectives relating to
and/or executive
biodiversity
management-level
responsibility forbiodiversity-related issues
Row Yes, both board-level1
oversight and executive
management-level
responsibility

NSHD has established the Nippon Sanso Holdings Group
Environmental Policy by resolution of the Board of Directors,
which includes "preservation of biodiversity" and states, "we willtechnically contribute to the resource-recycling society and to
the development of sustainable society by harmonizing withenvironment and endeavouring to reduce environmental impact
in our business activities under the direction of top
management."

C15.2(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether your organization made apublic commitment or endorsed any initiatives
related to biodiversity
Row Yes, we have made public commitments only1

Biodiversity-related public
commitments
Other, please specify
We promote business activities
conducive to preservation of
biodiversity and endeavour to
avoid any negative impact on
biodiversity.

C15.3(C15.3) Does your organization assess the impacts and dependencies of its value
chain on biodiversity?
Impacts on biodiversity
Indicate whether your organization undertakes this type of assessment
No and we don’t plan to within the next two years

Dependencies on biodiversity

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Indicate whether your organization undertakes this type of assessment
No and we don’t plan to within the next two years

C15.4(C15.4) Does your organization have activities located in or near to biodiversitysensitive areas in the reporting year?
No

C15.5
(C15.5) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?
Have you taken any actions in the reporting period Type of action taken to progressto progress your biodiversity-related
biodiversity- related commitments
commitments?
Row Yes, we are taking actions to progress our
1
biodiversity-related commitments

C15.6(C15.6) Does your organization use biodiversity indicators to monitor performanceacross its activities?
Does your organization use indicators to monitor
biodiversity performance?
Row
1

Indicators used to monitor
biodiversity performance

No

C15.7
(C15.7) Have you published information about your organization’s response tobiodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report typeContent
elements

Attach the document and indicate where in the document therelevant biodiversity information is locatedNopublications

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C16. Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.

C16.1(C16.1) Provide details for the person that has signed off (approved) your CDP climatechange response.
Row 1

Job title

Corresponding job category

President CEO

Chief Executive Officer (CEO)106