SUSTAINABILITYDATA 2023
1

Material Balance and Environmental
Contribution of the Nippon Sanso Holdings
Group

2

Environment

4Society

6

Governance

7Intellectual Property andResearch and Development

8

Calculation Methods for Scope 3 GHG
Emissions9

Calculation Methods for GHG Emission
Reduction Contribution

11

Independent Assurance Report1
Sustainability Data
Material Balance and Environmental Contribution of the Nippon Sanso Holdings Group* Please refer to P.2–P.3 for the reporting boundary and waste amount calculation method.
Indicators with mark have been assured by KPMG AZSA Sustainability Co., Ltd. with respect to actual results for FYE2023.

Material Balance

INPUT
Raw material

Business activities
Air, natural gas, by-product gas(CO2 raw material)

OUTPUT
GHG Emissions

5,868 thousands of tonnes CO2e

Scope 1

1,103 thousands of tonnes CO2e10,475 GWh

Scope 2

4,765 thousands of tonnes CO2e

Heat

201 GWh

Wastewater

28,530 thousands of m3

Water

44,988 thousands of m

Energy*13,945 GWh

Fuels

3,269 GWh

Electric power

3

Water supply from local government

18,161 thousands of m3

Groundwater

2,366 thousands of m3

Surface water

24,440 thousands of m

Other

Waste emissions

15,392 tonnes*

Waste disposed of as landfill

5,052 tonnes** Due to restrictions on availability of information, of the consolidated subsidiaries presented on P.5,
Continental Carbonic Products, Inc. is not included among the aggregated total.

3

21 thousands of m3* From FYE2023, the unit of energy usage was changed from TJ to GWh.

Energy consumption ratio
by facility
3.0%

Energy consumption ratio
by segment

1.2%

Air separation

HyCO business

0.2%

GHG emissions ratio
by facility
3.0%

3.2%

1.8%

1.5%

8.4%
20.9%

71.7%

Air separation
HyCO business
Liquid carbon dioxide businessDistribution
Other

0.3%

10.8%
17.6%

26.9%

20.7%

GHG emissions ratio
by segment

76.2%

43.8%

Japan
the United States
EuropeAsia and Oceania
Thermos

15.6%

Liquid carbon dioxide businessDistribution

Air separation
HyCO business
Liquid carbon dioxide businessDistribution
Other

35.0%

38.4%

Japan
the United States
EuropeAsia and Oceania
Thermos

GHG Emission Reduction Contribution
7,308 thousands of tonnes CO2e*1
Products and services*2

Industrial gases*3, *4

3,556 thousand of tonnes CO2e

3,752 thousand of tonnes CO2e

*1 For details on the reporting boundaries and calculation methods, please refer to P.9–P.10, “Calculation Methods for GHG Emission Reduction Contribution.”*2 GHG emission reduction contribution for products and services is calculated in accordance with the Guidelines for Quantifying GHG Emission Reductions of Goods or Services through Global Value Chain (Ministry of Economy, Tradeand Industry).
*3 GHG emission reduction contribution from the use of industrial gases*4 GHG emission reduction contribution through industrial gases includes the reduction contribution of consolidated subsidiaries in Japan, Europe, Asia and Oceania, and certain affiliated companies.

2
Sustainability Data
Environment
Unit

FYE2021

FYE2022

FYE2023

Greenhouse Gas (GHG) Emissions
GHG Emissions Scope 1

Thousands of tonnes CO2e

987

1,087

1,103

GHG Emissions Scope 2

Thousands of tonnes CO2e

4,664

4,834

4,765

GHG Emissions Scope 3—Total for the Following Categories

Thousands of tonnes CO2e

4,341

3,408

3,341

Category 1 Purchased goods and services

Thousands of tonnes CO2e

883

897

911

Category 2 Capital goods

Thousands of tonnes CO2e

44

42

67

Category 3 Fuel- and energy-related activities not included in Scope 1 and Scope 2

Thousands of tonnes CO2e

248

276

261

Category 4 U pstream transportation and distribution (Including transportation
services whose cost is borne by the Company)

Thousands of tonnes CO2e

37

39

36

Category 5 Waste generated in operations

Thousands of tonnes CO2e

2

1

1

Category 6 Business travel

Thousands of tonnes CO2e

1

1

1

Category 7 Employee commuting

Thousands of tonnes CO2e

3

3

3

Category 8 Upstream leased assets

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 9 Downstream transportation and distribution

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 10 Processing of sold products

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 11 Use of sold products

Thousands of tonnes CO2e

2,436

1,466

1,382

Category 12 End-of-life treatment of sold products

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 13 Downstream leased assets

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 14 Franchises

Thousands of tonnes CO2e

N/A

N/A

N/A

Category 15 Investments

Thousands of tonnes CO2e

687

683

679

Unit

FYE2021

FYE2022

FYE2023

Contributions to Environmental Protection through Products

GHG Emission Reduction
Contribution

Products and Services

Thousands of tonnes CO2e

2,892

3,176

3,556

Industrial Gases

Thousands of tonnes CO2e

2,174

3,689

3,752

For information on the reporting boundary and the method of calculation, please refer to P.9–P.10.

Reporting boundary: Scope 1 emissions and Scope 2 emissions represent Nippon Sanso Holdings and its
main consolidated subsidiaries. For information on Scope 3 emissions aggregation, please refer to P.8.
Scope 1 emissions: Direct emissions occurring from sources owned or controlled by the company
Scope 2 emissions: Indirect emissions from the use of electricity, steam, and heat
Scope 3 emissions: Indirect emissions other than Scope 2 emissions
Calculation methods: GHG emissions in Japan are calculated using emission factors provided in Japan’s Act on
Promotion of Global Warming Countermeasures (for electricity, up until FYE2021 the basic emission factors foreach electricity provider and from FYE2022 the adjusted emission factors for each provider). For GHG emissions
overseas, Scope 1 emissions are calculated using emission factors set forth in Japan’s Act on Promotion of
Global Warming Countermeasures. Scope 2 emissions are calculated using country-specific emission factors
published by the IEA. However, for electricity in Europe, beginning FYE2021 a separate emission factor for eachelectricity provider is used, and emissions are calculated making reference to the Guarantee of Origin.
Furthermore, from FYE2022, emissions from electricity use at Taiyo Gases Co., Ltd. and Top Thermo
Manufacturing (Malaysia) Sdn. Bhd are calculated using emissions coefficients for each electricity provider, whileemissions from electricity use in the United States, China, Taiwan, and Singapore are calculated using publishedgrid coefficients for each country. Please refer to P.8 for calculation method for Scope 3 emissions.
Indicators withmark have been assured by KPMG AZSA Sustainability Co., Ltd. for FYE2023.

3
Sustainability Data
Environment
Unit
Energy Usage*1, *2
Energy Consumption
Electric power
Fuels
Heat

FYE2021

FYE2022

FYE2023

GWh
GWh
GWh
GWh

12,570
9,592
2,779
199

14,273
10,776
3,293
204

13,945
10,4753,269
201

Reporting boundary: Nippon Sanso Holdings and its main consolidated subsidiaries
The energy of the consumed fuels are calculated based on the gross calorific values specified in Japan’s Act on the Rational Use of Energy.
*1 Until to FYE2022, purchased electricity and purchased steam were converted into a primary energy amount. However, from FYE2023, we have changed to a methodof not performing the conversion. Figures presented in previous fiscal years have been retroactively amended due to this revision.
*2 From FYE2023, the unit of energy usage was changed from TJ to GWh.

Tonnes

1.8
1.0
0.1
5

2.0
1.1
0.1
8

2.6
1.1
0.1
5

Tonnes8108

TonnesTonnesTonnesFYE2021

FYE2022

FYE2023

Japan

Thousands of tonnes CO2e

5,651

5,921

5,868

Thousands of tonnes CO2e

2,014

2,253

2,054
2,251

the United States

Thousands of tonnes CO2e

2,066

2,130

EuropeThousands of tonnes CO2e

1,049

885

916

Asia and Oceania

Thousands of tonnes CO2e

511

638

632

Thermos

Thousands of tonnes CO2e

11

15

15

Energy Consumption*1, *2
GWh

12,57014,273

13,945

Japan

GWh

3,580

3,978

3,757

the United States

GWh

5,215

5,917

6,106

Europe

GWh

2,753

3,180

2,889

Asia and Oceania

GWh

1,002

1,171

1,167

Thermos

GWh

20

27

26

Electricity Consumption*3

Reporting boundary: Consolidated subsidiaries in Japan, including Taiyo Nippon Sanso Corporation

Breakdown ofsources of fresh
water withdrawn

GHG Scope 1 + Scope 2

Total

Environmental Impact
Nitrogen oxide (NOx) emissions
Sulfur oxide (SOx) emissions
Particulate emissions
Volatile organic compound (VOC) emissions
Releases of substances designated under the Pollutant
Release and Transfer Register (PRTR)

Water Usage
Water Withdrawal
Water supply from local government
Municipal waterIndustrial water
Groundwater
Surface water
Other

Unit
GHG Emissions

GWh

9,592

10,776

10,475

Japan

GWh

3,402

3,783

3,552

the United States

GWh

2,824

3,114

3,249

Europe

GWh

2,442

2,762

2,585

Asia and Oceania

GWh

908

1,094

1,066

Thermos

GWh

16

23

23

Total
Thousands of m3
Thousands of m3
Thousands of m3
Thousands of m3
Thousands of m3
Thousands of m3
Thousands of m3

43,345
14,723
4,901
9,823
2,578
26,01628

45,911
17,5895,757
11,832
2,710
25,58230

44,98818,161
6,332
11,8292,366
24,44021

Reporting boundary: Gas production plants operated by consolidated subsidiaries of Nippon Sanso Holdings in Japan, business locations with facilities specified under the
Water Pollution Prevention Act, and main overseas consolidated subsidiaries

Waste
Waste generated*1
Waste disposed of as landfill*2
Hazardous waste generated*3
Waste recycled*4

TonnesTonnesTonnesTonnes

14,715
7,152
1,799
4,885

14,352
3,875
2,015
7,623

15,392*5
5,052*52,000*5
7,975*5

Reporting boundary: Nippon Sanso Holdings and its main consolidated subsidiaries
Waste generated by consolidated subsidiaries in Japan is the volume for which the Company issued a manifest.
*1 Includes valuable materials *2 Includes residue after intermediate treatment outside the Group company *3 Includes specially controlled industrial waste*4 We consider waste collected to be the amount of resources recycled. *5 Due to restrictions on availability of information, of the consolidated subsidiaries presented
on P.5, Continental Carbonic Products, Inc. is not included among the aggregated total.

OthersNumber of environmental violations*
Amount of fines paid for environmental violations*

Incidents
Millions of yen

0
0

0
0

0
0

* From FYE2023, values presented in past fiscal years have been retroactively amended.
The figures for chemical oxygen demand (COD) emissions, nitrogen emissions in wastewater, and phosphorus emissions have been omitted from disclosure since theamounts of these emissions have been immaterial. The Nippon Sanso Holdings Group uses water primarily for indirect cooling, and its impacts on water quality are therefore not large. Taiyo Nippon Sanso and its Japanese subsidiaries have five business sites that are subject to restrictions on the concentration of COD, nitrogen, and phosphorous emissions in wastewater. The total amounts of COD, nitrogen, and phosphorous emissions for all five sites amount to less than one tonne each.

Water Withdrawal

Total

Thousands of m3

43,34545,911

44,988Japan

Thousands of m3

6,760

7,464

7,445

the United States

Thousands of m3

7,074

7,293

8,464

EuropeThousands of m3

27,292

27,02925,136

Asia and Oceania

Thousands of m3

2,049

3,929

3,744

Thermos

Thousands of m3

170

196

199
15,392*5

Waste Generated (Including Valuable Materials)*4
Total

Tonnes

14,715

14,352Japan

Tonnes

5,505

4,187

3,909

the United States

Tonnes

5,691

3,486

5,415*5

EuropeTonnes

758

2,909

3,068

Asia and Oceania

Tonnes

395

1,399

602

Thermos

Tonnes

2,366

2,371

2,398

*1 Until to FYE2022, purchased electricity and purchased steam were converted into a primary energy amount. However, from FYE2023, we have changed to a methodof not performing the conversion. Figures presented in previous fiscal years have been retroactively amended due to this revision. *2 From FYE2023, the unit ofenergy usage was changed from thousand GJ to GWh. *3 From FYE2023, the unit of electricity usage was changed from Millions of kWh to GWh. *4 Waste generated by the consolidated subsidiaries of Nippon Sanso Holdings in Japan is the volume for which the Company issued a manifest. *5 As with the reporting boundary
for “Waste” on the left, of the consolidated subsidiaries presented on P.5, Continental Carbonic Products, Inc. is not included among the aggregated total.
The names of reportable segments were previously “Gas Business in Japan,” ”Gas Business in the United States,” “Gas Business in Europe,” “Gas Business in Asia andOceania,” and “Thermos Business.” Effective from FYE2023, these names were changed to “Japan,” “United States,” “Europe,” “Asia and Oceania,” and “Thermos,”respectively.

4
Sustainability Data
Society
Unit

FYE2021

FYE2022

FYE2023

Employees and Diversity (Consolidated)

Unit

FYE2021

FYE2022

FYE2023

Employees, Diversity, and Work–Life Balance (Registered employees of Taiyo Nippon Sanso Corporation)

Employees*

Number of individuals

19,155

19,172

19,541

Employees

Japan

Number of individuals

6,295

6,465

6,391

Employees by gender

the United States

Number of individuals

4,534

4,406

4,532

EuropeNumber of individuals

2,884

2,912

3,013

Asia and Oceania

Number of individuals

4,114

4,102

4,267

Thermos

Number of individuals

1,328

1,287

1,338

Employees by gender

Number of individuals

2,065

2,075

2,086

Male

Number of individuals

1,789

1,784

1,780

FemaleNumber of individuals

276

291

306

Employees by age group (Composition ratio)
20s and below

%

19.5

19.8

20.2

30s

%

20.1

20.3

20.5

Male

Number of individuals

15,307

15,233

15,651

40s

%

27.6

25.7

24.2

FemaleNumber of individuals

3,848

3,939

3,890

50s and above

%

32.9

34.2

35.1

Employees by age group (Composition ratio)

Years of consecutive service

20s and below

%

16.6

16.4

15.7

Overall average

Years

17.8

17.8

18.7

30s

%

24.6

25.0

25.0

Men

Years

18.5

18.6

19.4

40s

%

28.6

30.1

27.0

Women

Years

12.9

13.3

14.0

50s and above

%

30.2

28.5

32.4

Average age

Years

42.3

42.4

42.7

Number of individuals

102

85

88

%

2.8

3.3

3.7

Years of consecutive service

New hires

Overall average

Years

11.3

11.4

11.6

Employee turnover rate*1

Men

Years

11.7

11.5

11.8

Companywide employee training hours*2

Women

Years

9.5

11.1

11.4

New employee training hours

Hours

32,16016,32027,360

Average age

Years

42.3

44.2

44.1

Employee training hours

Hours

17,716

21,50424,052

Number of individuals

1,893

2,917

3,161

Number of individuals

1,195

1,214

1,232

%

57.8

58.5

59.1

New hires
Employee turnover rate

%

5.7

7.1

6.9

Female employees as a percentage of the total numberof employees

%

20.1

20.5

19.9

Female managers as a percentage of total managerial
positions

%

14.6

14.8

14.5

Union members
Union members as a percentage of the total numberof employees

0

0

0

Female employees as a percentage of total numberof employees

%

13.4

14.0

14.7

* Aggregated from actual figures of the Nippon Sanso Holdings Group companies as of the end of each fiscal year. Due to differences in the reporting periods, part of thedata includes figures as of the end of December.

Female managers as a percentage of total managerial
positions

%

1.5

1.5

1.8

Employees and Diversity (Non-Consolidated)

Employment ratio of persons with disabilities (as of June
1 of each fiscal year)

%

2.3

2.5

2.5

Number of employees reemployed after retirement

Number of individuals

74

82

86

Employees using childcare leave systems

Number of individuals

16

19

39

Employees

Number of individuals

81*

86*

88*

Employees by gender

Layoffs*3

Number of individuals

Male

Number of individuals

66

71

72

Men

Number of individuals

6

6

21

FemaleNumber of individuals

15

15

16

Women

Number of individuals

10

13

18

%

18.5

17.4

18.2

Employees using nursing care leave or long-term nursing
care leave

Number of individuals

0

0

0

%

4.1

3.6

3.6

Usage rate for annual paid leave*

60.2

61.5

67.0

0

0

0

Female employees as a percentage of the total numberof employees
Female managers as a percentage of total managerial
positions* Includes employees working concurrently for Taiyo Nippon Sanso Corporation (47 employees in FYE2021, 49 employees in FYE2022, 47 employees in FYE2023)

4

Employees using volunteer leave system%
Number of individuals*1 Employee turnover rate is the number of employees leaving the Company during the fiscal year (including mandatory-age retirees and excluding personnel transferring
to other Group companies) divided by the number of employees at the end of the fiscal year *2 Reporting boundary: Training hours of Taiyo Nippon Sanso Corporation
employees and Taiyo Nippon Sanso Group employees who took training held by Taiyo Nippon Sanso Corporation *3 Employees leaving the Company for reasons attributable to the Company (dismissals) *4 The number of new days granted in the reporting year is the denominator. The number of days used in the reporting year is thenumerator. The denominator does not include the number of days carried over from the previous fiscal year.

5
Sustainability Data
Society
Unit

FYE2021

FYE2022

FYE2023

109.7

84.5

78.3

Others (Consolidated)
Expenditures on social contribution initiatives

Millions of yen

Occupational Health and Safety
Frequency rate of occupational accidents resulting in lost workdays(Number of injuries / fatalities due to occupational accidents per million work hours)
Nippon Sanso Holdings Group (Including Taiyo Nippon
Sanso Group)

—

2.51

2.14*1

1.56

Taiyo Nippon Sanso Group

—

0.64

0.52

0.81

1

1

0

Number of fatalities (Consolidated)*2
Employees

Number of individuals

1

0

0

Contractors

Number of individuals

0

1

0

Reporting boundary: Consolidated subsidiaries with production divisions in Japan and overseas*1 To improve the accuracy of data aggregation, values presented in past fiscal year have been retroactively amended.
*2 From FYE2023, values presented in past fiscal years have been retroactively amended.

Reporting Boundary
Main consolidated subsidiaries
Consolidated subsidiaries in Japan including Taiyo Nippon Sanso Corporation; Matheson Tri-Gas, Inc.; Continental Carbonic Products, Inc.; Western International Gas &Cylinders, Inc.; Nippon Gases Euro-Holding S.L.U. and its consolidated subsidiaries; Leeden National Oxygen Ltd.; Leeden Gases Sdn. Bhd.; Nippon Sanso Ingasco, Inc.;
Nippon Sanso Ingasco Philippines, Inc.; Nippon Sanso Ingasco Clark, Inc.; Nippon Sanso (Thailand) Co., Ltd.; Ayutthaya Industrial Gases Co., Ltd.; Taiyo Gases Co., Ltd.;
Nippon Sanso Vietnam Joint Stock Company; Taiyo Nippon Sanso India Pvt. Ltd.; Shanghai Taiyo Nippon Sanso Gas Co., Ltd.; Suzhou Taiyo Nippon Sanso Gas Co.,
Ltd.; Dalian Changxing Island Taiyo Nippon Sanso Gas Co., Ltd.; Dalian Taiyo Nippon Sanso Gas Co., Ltd.; Yangzhou Taiyo Nippon Sanso Semiconductor Gases Co.,
Ltd.; Matheson Gas Products Korea Co., Ltd.; Nippon Sanso Taiwan, Inc.; Taiyo Nippon Sanso Engineering Taiwan, Inc.; Fu Yang Gas Co., Ltd.; Supagas Pty Ltd; Nippon
Sanso Myanmar Co., Ltd.; Top Thermo Manufacturing (Malaysia) Sdn. Bhd.; Vacuumtech Philippines Inc.

Beginning FYE2022, environmental data includes International Carbon Dioxide Co., Ltd., Nippon Gases Euro-Holding S.L.U. and its subsidiary filling sites, Leeden Gases
Sdn. Bhd., and Matheson Gas Products Korea Co., Ltd. From FYE2023, data from eight consolidated subsidiaries in Japan, Continental Carbonic Products, Inc. andWestern International Gas & Cylinders, Inc. were also included.

6
Sustainability Data
GovernanceUnit

FYE2021

FYE2022

FYE2023

Number of individuals

9

9

9

Number of individuals

7

6

4

Activities of Committees
Management Configuration
Internal directors

Unit

FYE2021

FYE2022

FYE2023

Number of individuals

3

5

6

Activities of Committees
Advisory Committee on Appointments and Remuneration
Members

Number of individuals

2

3

5

Internal directors

Number of individuals

1

2

1

 Directors serving concurrently as executive officers

Number of individuals

3

1

1

Independent outside directors

Number of individuals

2

3

5

Percentage of directors serving concurrently as executive officers

%

33.3

11.1

11.1

Independent outside directors

Frequency of meetings

%

22.2

33.3

55.6

Female directors as a percentage of total Board of
Directors’ members

%

0.0

11.1

22.2

Term of appointment

Years

1

1

1

Frequency of meetings

Frequency of Board of Directors’ meetings

Times

11

14

11

Attendance*1

Attendance at Board of Directors’ meetings

%

98.0

98.4

100.0

Attendance of independent outside directors at Board of
Directors’ meetings

%

100.0

100.0

100.0

Number of individuals

Audit & Supervisory Board members

0

0

0

Number of individuals

4

4

4

Internal Audit & Supervisory Board members

Number of individuals

1

1

1

Independent outside Audit & Supervisory Board
members

Number of individuals

2

2

2

50.0

50.0

50.0

0.0

0.0

0.0

Independent outside Audit & Supervisory Board members as a percentage of total Audit & Supervisory Board
members%

Female Audit & Supervisory Board members as apercentage of total Audit & Supervisory Board
members

%

17

14

%

100.0

100.0

100.0

%

100.0

100.0

100.0

Times

Attendance at Audit & Supervisory Board meetings
Attendance of independent outside Audit & Supervisory
Board members at Audit & Supervisory Board meetings

Number of Audit & Supervisory Board members attending Number of individuals
less than 75% of Audit & Supervisory Board meetings
Average age of directors and Audit & Supervisory Board
members
Number of executive officers
Female executive officers as a percentage of total executive officers

0

0

0

Members

64.8

65.8

66.1

7

6

7

%

0.0

0.0

0.0

Number of individuals

13

13

12

Times

6

11

12

100.0

100.0

100.0

Number of individuals

15

15

15

Times

1

3

2

%

93.3

93.3

93.3

Number of individuals

17

17

17

Times

1

1

1

100.0

100.0

100.0

17

18

18

%

Investment Committee
Members*2
Frequency of meetings
Attendance*

1

Global Strategy Review Committee
Members
Frequency of meetings
Attendance%

Global Risk Management Committee
Members

Number of individuals
Times

Attendance

%

1

1

1

100.0

100.0

100.0

20

8

8

Global Compliance Committee
Members*3
Frequency of meetings*
Attendance

Number of individuals

Years

12
100.0

Management Committee

Frequency of meetings
16

Frequency of Audit & Supervisory Board meetings

10
100.0

%

Independent outside directors as a percentage of total
Board of Directors’ members

Number of directors attending less than 75% of Board of
Directors’ meetings

6
100.0

Times

Attendance

Number of individuals
4

Times

0

1

1

%

—

87.5

100.0

*1 Average attendance rate *2 Excluding additional attendees and Secretariat*3 Excluding attendees and Secretariat from FYE2022 *4 Not held during FYE2021 due to COVID-19

7
Sustainability Data
GovernanceIntellectual Property and Research and Development
Unit

FYE2021

FYE2022

FYE2023Unit

FYE2021

FYE2022

FYE2023

Patents

1,578

1,591

1,682

Intellectual Property

Remuneration for Officers

Registered patents

Remuneration for directors (excluding outside directors)
Millions of
yen

263

200

152

Basic remuneration

Millions of
yen

169

141

102

Japan

Patents

925

941

1,038

Corporate political contributions

Millions of
yen

94

59

47

Overseas

Patents

653

650

644

Non-financial KPI-linked bonuses

Millions of
yen

—

—

3

Millions of
yen

27

28

28

Millions of
yen

27

28

28

Total

Remuneration for Audit & Supervisory Board members(excluding independent outside members)
Total
Basic remuneration
Remuneration for independent outside directors
Total
Basic remuneration

Millions of
yen

100

108

129

Millions of
yen

100

108

129

Millions of
yen

210

222

206

Millions of
yen

209

218

205

Millions of
yen

1

4

1

Remuneration for independent auditors
Total
Remuneration for audit services Other remuneration for independent auditors
OthersAnti-takeover measures—

Not adopted

Not adopted

Not adopted

Code of ethics—

AdoptedAdoptedAdoptedAdoptedAdoptedAdopted

Policy on transparency of tax affairs—(Currently
disclosed on
the Company
website)(Currently
disclosed on
the Company
website)(Currently
disclosed on the
Company
website)Corporate political contributions*

Millions of
yen

0.0

0.2

0.0

Violations of rules for the prevention of corruption

Number ofviolations

0

0

0

Monetary penalties incurred as a result of violations ofguidelines for the prevention of corruption

Millions of
yen

0

0

0

%

—

—

99.7

Rate of receiving compliance training* Reporting boundary is consolidated from FYE2022.

Total* Sum of patents at all operating companies. From FYE2023, the figure includes the consolidated subsidiaries of each operating company.

Research and Development
Research and Development
Millions of
yen

3,315

3,569

3,515

Japan

Millions of
yen

2,694

2,872

3,054

the United States

Millions of
yen

589

659

429

Thermos

Millions of
yen

32

37

31

Total

8
Sustainability Data
Calculation Methods for Scope 3 GHG Emissions

Referenced Guidelines
Our Scope 3 GHG emissions are calculated based on the Corporate Value Chain (Scope 3) Accounting and Reporting Standard issued by the
GHG Protocol.
For emission factors, we used the emission factor database Ver. 3.3 provided in the Green Value Chain Platform, the Inventory Database forEnvironmental Analysis (IDEA v2) for supply chain GHG emissions accounting, and information included in MiLCA Ver. 2, a life-cycle assessment
software developed by the Japan Environmental Management Association for Industry.

Reporting Boundary
Unless otherwise specified, the data covers Nippon Sanso Holdings
and its consolidated subsidiaries in Japan, including
Taiyo Nippon Sanso Corporation.

Calculation Method by Category

Category 1
Purchased goods andservices

Calculated by multiplying the amounts of products and services in physical or monetary units
purchased by Taiyo Nippon Sanso Corporation by the respective emission factor for each typeof product or service. However, emissions from transport and shipping services and fromoxygen, nitrogen, and argon purchased from Taiyo Nippon Sanso’s consolidated subsidiaries
or affiliated companies are included in the reporting boundary of Scope 1 or 2, or categories
4 and 15 of Scope 3, and are therefore deducted from the procured amounts used for thiscalculation.

Category 2
Capital goods

Calculated by multiplying the amounts of capital investment during each reporting fiscal year
by an emission factor per price of capital goods.

Category 3
Fuel- and energy-related
activities not included in
Scope 1 and Scope 2This category includes emissions associated with the extraction, production, and transportation of ­purchased fuels and those consumed in the production of electricity and steam thatare purchased by the Group.
Fuels: Calculated by multiplying the amount purchased during the fiscal year by an emission
factor for each fuel type.
Electricity and steam: Calculated by multiplying the amount purchased from outside theGroup by the upstream emission factor for each purchased energy reflecting electricity transmission loss.

Category 4
Upstream transportationand distribution(Including distribution
services whose cost isborne by the Group)

Calculated by subtracting the CO2 emissions from logistics subsidiaries, which are included in
Scope 1 emissions, from the CO2 emissions reported for Taiyo Nippon Sanso Corporation andNippon Ekitan Corporation as specified shippers in accordance with the Act on Promotion of
Global Warming Countermeasures.
CO2 emissions related to transportation and distribution of products for which Taiyo Nippon
Sanso Corporation and Nippon Ekitan Corporation bear the transportation costs are includedin this category.

Category 5
Waste generated inoperations

Calculated by multiplying industrial waste output by the emission factors for each waste type(including transportation stages).

Category 6
Business travel

Calculated by multiplying the number of employees of consolidated subsidiaries in Japan,
including Taiyo Nippon Sanso Corporation by the emission factor (0.13 tonnes of CO2/person/year).

Category 7
Employee commuting

Taiyo Nippon Sanso Corporation employees: For train commuters, the annual payment forcommuter passes is multiplied by an emission factor per transportation expense. For carcom­muters, the round-trip distance is multiplied by the annual number of commuting days
and an emission factor per person-kilometer for passenger car.
Employees of Japanese consolidated subsidiaries: The number of employees is multiplied by theannual number of commuting days, and multiplied by the emission factor per commuting day.

Category 8
Upstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are notcalculated.

Category 9
Downstream transportation and distribution

The emissions associated with the transportation of sold products whose cost is borne by
Taiyo Nippon Sanso Corporation and Nippon Ekitan Corporation fall within category 4 as theGroup basically bears the cost of transporting products.

Category 10
Processing of soldproducts

The Taiyo Nippon Sanso Group’s main product group is gas, and since it is difficult to rationally calculate the GHG emissions associated with the processing of these products, theemissions are not calculated.

Category 11
Use of sold products

The amount of CO2 emissions generated from the use of propane gas (LP gas), liquid carbon
dioxide gas, and dry ice, and from use of electricity for the operation of its ASUs during theservice life, which were sold to customers outside of the Taiyo Nippon Sanso Group.

Category 12
End-of-life treatment ofsold products

The Taiyo Nippon Sanso Group’s primary products are gases (oxygen, nitrogen, and argon).
After use, these gases return to the atmosphere and do not become waste. Furthermore,since the gas containers are loaned, and therefore the amount of waste from sold is negligible, emissions in this category are not calculated.

Category 13
Downstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are notcalculated.

Category 14
Franchises

As the Group does not have any businesses in this format, there are no emissions in thiscategory.

Category 15
Investments

Calculated by multiplying the GHG emissions of each of the eight affiliated companies of
Taiyo Nippon Sanso Corporation in Japan that produce gas by the Company’s shareholding
ratio (as of the fiscal year-end). The eight companies’ GHG emissions are based on theiractual emissions in the reporting period.

9
Sustainability Data
Calculation Methods for GHG Emission Reduction Contribution

We include the following products and services sold by consolidated subsidiaries of Nippon Sanso Holdings and certain affiliated companies in the calculation of GHG emission reduction contribution. The calculation
method per product or service is as follows. The CO2 emission factors used for electricity are 0.441 t-CO2/MWh in Japan, 0.275 t-CO2/MWh in Europe, and the emissions factors published by the IEA for each country in the
United States and Asia and Oceania.
Environmental product offerings
and applications
Products and services
Combustion-type exhaust gas
abatement system
Reporting boundary: Consolidated subsidiaries in Japan

SF6 recovery service

Calculation method for GHG emission reduction

Reporting boundary: Consolidated subsidiaries in JapanMG Shield®
Reporting boundary: Consolidated subsidiaries in Japan

New refrigerants
Reporting boundary: Consolidated subsidiaries in Europe

Nitrogen gas supply system forlaser processing (PSA)
Reporting boundary: Consolidated subsidiaries in Japan

Shuttle Chef®
Reporting boundary: Consolidated subsidiaries in Japan

Hydrogen station
Reporting boundary: Consolidated subsidiaries in JapanFYE2021 FYE2022 FYE2023

Contribution to GHG emission reduction through products and services using the Nippon Sanso Holdings Group’s proprietary technologies
An average processing capacity of 0.6 L/min for nitrogen trifluoride (NF3) gas per one combustion-type exhaust gas abatement system was assumed, and this value wasmultiplied by the number of such systems that were installed from FYE2019 to FYE2023, the number of operating hours per year, and the global warming potential (GWP)
of NF3 to calculate the GHG emission reduction contribution. The amount of CO2 emissions from fuel used in combustion equipment was deducted.
The volume of sulfur hexafluoride (SF6) gas recovered in FYE2023 was multiplied by its GWP to calculate GHG emission reduction contribution.

Reporting boundary: Consolidated subsidiaries in JapanSCOPE-JET®

Calculation period

Based on actual observed values at two electric furnace manufacturers who had introduced SCOPE-JET®, the electricity-saving effect per volume of jet oxygen (kWh/Nm3)
was calculated. The ratio of the number of plants that have introduced SCOPE-JET® to the total number of electric furnace manufacturing plants was multipliedby the volume of crude steel products by electric furnaces in Japan in FYE2023, and the resulting number was assumed to be the production volume of crude steel contributed by the electricity saving from SCOPE-JET®. The amount of oxygen consumed by SCOPE-JET® in the production of this crude steel, and the amount of electricity saved
per volume of oxygen were multiplied by the CO2 emission factor for electricity to calculate the GHG emission reduction contribution. The amount of the CO2 emissions
generated during the manufacture of the oxygen was deducted.
The amount of SF6 gas whose use was avoided through use of MG Shield® sold in FYE2023 was multiplied by the gas’ GWP to calculate the GHG emission reduction
contribution.
We calculated the amount of reduction contribution by assuming a 7% per year leakage rate of new refrigerants sold from FYE2016 to FYE2023, and multiplying leakage
amount by the difference between the GWP of alternative refrigerants and the GWP of new refrigerants. The reduction contribution assumes annual leakage of 7% fromequipment sold in the preceding fiscal year, continuing at the same rate in the next fiscal year.
The annual power consumption of Taiyo Nippon Sanso Corporation’s conventional air compressor was compared with that of the energy-saving type nitrogen gas supply
system to calculate the annual electricity saving from using the energy-saving type system. The annual electricity saved was multiplied by the CO2 emission factor for electricity and the cumulative number of units sold from FYE2014 to FYE2023 to calculate the GHG emission reduction contribution.
The amount of electric power usage saved per year from using Shuttle Chef® when cooking was multiplied by the CO2 emission factor for electricity and the total number ofunits sold over the three years from FYE2021 to FYE2023 to calculate the GHG emission reduction contribution.
The annual CO2 emissions, which include emissions during the manufacture of the hydrogen, emitted by fuel cell vehicles (FCVs) filled with hydrogen at hydrogen stations
sold or operated by Taiyo Nippon Sanso Corporation and operated during FYE2023 was compared with the annual CO2 emissions of gasoline cars to calculate the GHG
emission reduction contribution.

10
Sustainability Data
Calculation Methods for GHG Emission Reduction Contribution

Environmental product offerings
and applications
Industrial gases
Oxygen-enriched combustion inblast furnaces
Reporting boundary: Consolidated subsidiaries in Japan and Europe, and affiliatedcompanies in Japan

Oxygen-enriched combustion inelectric furnaces
Reporting boundary: Consolidated subsidiaries in the United States, Europe, andAsia and Oceania

Argon (Ar) welding
Reporting boundary: Consolidated subsidiaries in Europe the United States, Europe, andAsia and Oceania

Calculation method for GHG emission reduction

Calculation period
FYE2021 FYE2022 FYE2023

Contribution to GHG emission reduction through industrial gases produced and supplied by the NSHD Group
We calculated the GHG emission reduction contribution as the difference between the amount of CO2 emissions in the production of crude steel using 100% coke and the
production of crude steel via pulverized coal combustion based on crude steel production by the eight steel companies to whom the NSHD Group supplied oxygen in
FYE2023.
This calculation method is described in “The Impact of Oxygen on Reducing CO2 Emissions in Blast Furnace Ironmaking” (July 2011) by Dr. Michael F. Riley.
We deducted the amount of CO2 emitted during the production of oxygen and the pumping of gas into the blast furnace.
Based on actual observed values at two electric furnace manufacturers who had introduced oxygen burners, the electricity-saving effect per volume of jet oxygen (kWh/Nm3)
was calculated. The amount of the reduction was calculated by multiplying the amount of oxygen transmitted to the customer by the electricity reduction per volume ofoxygen for the oxygen burner, but the CO2 emissions coefficient for electricity. The amount of CO2 emissions generated in manufacturing the oxygen has been deducted.

We calculated the contribution to the reduction of overall CO2 emissions from using Ar-CO2 mixed gas as a welding gas, based on actual values when performing CO2
welding and Ar-CO2 mixed gas welding using welding equipment. The calculation was based on the differences in welding speed and CO2 emissions to the atmosphere.
Specifically, we calculated the contribution as the difference in CO2 emissions released directly when conducting CO2 welding and Ar-CO2 mixed gas welding with regard to
the CO2 generated in both methods, adding the reduction effect of lower electric power consumption due to increased welding speed with mixed-gas welding. The impactof reduced electricity consumption was calculated by multiplying the amount of electricity consumption saved due to mixed gas welding by the CO2 emissions coefficient.
The amount of CO2 emissions generated in the manufacture of Ar is deducted from the contribution to reduced CO2 emissions.

(Japan)——(Japan andEurope)(Japan andEurope)(Europe andAsia and
Oceania)(The UnitedStates,Europe, andAsia and
Oceania)(Europe)(The UnitedStates,Europe, andAsia and
Oceania)

11
Sustainability Data
Independent Assurance Report

Independent Assurance Report
To the Representative Director, President CEO of Nippon Sanso Holdings Corporation•V isiting the Kurashiki Plant of JFE Sanso Center Co., Ltd. and the Lemont2 Plant ofMatheson Tri-Gas, Inc. selected on the basis of a risk analysis.
• E valuating the overall presentation of the Indicators.

We were engaged by Nippon Sanso Holdings Corporation (the “Company”) to undertake alimited assurance engagement of the environmental and social performance indicators marked
with (the “Indicators”) for the period from April 1, 2022 to March 31, 2023 included in its
Sustainability Data 2023 (English version) (the “Report”) for the fiscal year ended March 31, 2023.

Conclusion
Based on the procedures performed, as described above, nothing has come to our attention
that causes us to believe that the Indicators in the Report are not prepared, in all material
respects, in accordance with the Company’s reporting criteria as described in the Report.

The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own
reporting criteria (the “Company’s reporting criteria”), as described in the Report.

Our Independence and Quality Management
We have complied with the Code of Ethics for Professional Accountants issued by theInternational Ethics Standards Board for Accountants, which includes independence and otherrequirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. In accordance with International
Standard on Quality Management 1, we design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.

Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on theprocedures we have performed. We conducted our engagement in accordance with the‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements
other than Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410,
Assurance Engagements on Greenhouse Gas Statements’ issued by the International Auditing
and Assurance Standards Board. The limited assurance engagement consisted of making
inquiries, primarily of persons responsible for the preparation of information presented in theReport, and applying analytical and other procedures, and the procedures performed vary innature from, and are less in extent than for, a reasonable assurance engagement. The level ofassurance provided is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures included:• Interviewing the Company’s responsible personnel to obtain an understanding of its policy
for preparing the Report and reviewing the Company’s reporting criteria.
• Inquiring about the design of the systems and methods used to collect and process the
Indicators.
• P erforming analytical procedures on the Indicators.
• E xamining, on a test basis, evidence supporting the generation, aggregation and reportingof the Indicators in conformity with the Company’s reporting criteria, and recalculating the
Indicators.

/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
September 14, 2023

Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

1-3-26 Koyama, Shinagawa-ku,
Tokyo 142-0062, Japan
Tel: +81-3-5788-8512
https://www.nipponsanso-hd.co.jp/en/