Disclosure of Information
based on the Recommendations ofthe Task Force on Climate-related
Financial Disclosures (TCFD)
Endorsement of TCFD Recommendations
1. Governance
2. Strategy
3. Risk Management
4. Metrics and Targets
Code: 6237
IWAKI CO., LTD. Stock
Brand: Iwaki Pump

Endorsement of TCFD Recommendations
Iwaki Co., Ltd. (the “Company”) has been providing value to society through the use of our chemical
pumps and fluid control devices in a broad range of industries, based on our mission to “always be at
the forefront of efforts to advance development in the global markets, industries and communities
where we operate while building trust with, and contributing to the happiness of everyone we interactwith.”
As the environment surrounding companies changes dramatically, it is becoming more important toachieve both a sustainable society and the sustainable improvement of corporate value by solvingsocial issues.
In particular, we recognize that addressing climate change is one of the most important management
issues that we must give consideration to in order to realize a sustainable society. As part of ourcommitment to environmentally friendly business activities, we endorse the recommendations of theTask Force on Climate-related Financial Disclosure (TCFD), and identify risks and opportunities forour business, etc. arising from climate change and disclose appropriate information.

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１

Governance

We have established a Sustainability Committee, which is chaired by the President, to promote management basedon a sustainability perspective that includes issues relating to climate change.
The Committee will deliberate on the formulation of sustainability policies, confirm the status of initiatives to address
climate change and other issues, and discuss measures to address these issues.
The details discussed by the Sustainability Committee will be submitted to the Board of Directors in the form ofsuggestions and reports, as appropriate, and the Board of Directors will deliberate and resolve on a response asnecessary, and supervise the execution of the duties of the directors.
Examples of matters related to climate change issues resolved by or reported to theBoard of Directors:• April 2022: Establishment of the Sustainability Committee• October 2022: Setting of greenhouse gas emission reduction targets• December 2022: Endorsement of TCFD Recommendations• February 2023: Disclosure of information based on TCFD recommendations

Sustainability Promotion Structure
Board of Directors
President

Sustainability Committee[Chair]President[Members]

Management Meeting

Executive directors, outside directors, and persons as deemed
appropriate given their responsibilities and knowledge.
*Invite outside experts as necessary

Senior GeneralManagers MeetingGroup Company
Management Meeting

Each division(Head office/branch offices/sales offices/plants)

Subsidiaries/affiliates

Risk Management andCompliance Committee3

２Strategy 1/3

In order to consider the impact of climate change on our business, we have undertaken qualitative and quantitative scenario analysis withreferences to the following two scenarios:
1.5/2C scenario(*1): strict policies and laws and regulations are imposed to achieve a decarbonized society
4C scenario(*2): climate change measures beyond those already in place are not implemented and extreme weather events become more
severe*1 1.5/2C scenario reference: IEA Net Zero Emissions by 2050, Sustainable Development Scenario, RCP2.6*2 4C scenario reference: IEA Stated Policies Scenario, RCP8.5

As a result, we recognize that the main risk from climate change in both scenarios is the possibility of a fall in sales opportunities due todamage to our offices caused by floods and storm surges and disruptions to our supply chain.
On the other hand, in the 1.5/2C scenario, we recognize that adapting our products to the needs of the new energy sector, including
secondary batteries, as we transition to a decarbonized society, may result in an increase in sales opportunities, and we view this as anopportunity.
We see the new energy market as a market to be strengthened and we will continue to promote aggressive initiatives, such as businessexpansion.
Target1.5/2C Scenario

4C Scenario

Government■ Promotes environment-related measures such as the introduction of a carbon
tax and policies relating to renewable energy and energy conservation.

■ Climate change measures maintain the status quo.
■ Assists in responding to extreme weather events.

Investment■ ESG investment is standard.
■ Environmental management information is important when selecting investment
targets.

■ Emphasis is on profitability rather than environmental consideration.
■ Close attention is paid to the existence of BCP measures when selecting investment
targets.

Climate■ Moderate intensification of extreme weather events compared to 4C.

■ Physical risks are more apparent due to the intensification of extreme weather events.

Energy■ Renewable energy is widely used. Use of energy derived from fossil fuels isdecreasing.

■ Energy is mostly derived from fossil fuel. High-efficiency power generation technology is
being developed.

Companies■ Operating costs are increasing due to higher energy prices as a result of governmental policies andregulations.
■ Raw material costs are increasing due to changes in raw materials as a result of governmental
policies and regulations.

■ Own facilities are damaged by extreme weather.
■ Health hazards to employees occur due to rising average temperatures.

Clients■ In addition to the price and performance of products used, environmental considerations areimportant.
■ Developing products and services that contribute to renewable energy and energy conservation.

■ Focus is on the price and performance of products used.
■ BCP measures are required in the supply chain.

4２Strategy 2/3
Impact *4

Risks
CategoryTransition
risks

Item

Policies/regulations

Technology

MarketReputation

Physical
risks

Acute

EventTiming*3
Details

Measures

Promulgation of laws andregulations, such as acarbon tax on GHG
emissions

Mediumlong term

■ Carbon pricing for GHG emissions from our businessactivities (Scope 1 and 2).

■ Proactively use electricity derived from renewable energy
sources at major bases.
■ Reduce electricity consumption by installing energysaving equipment.

Increase in the price ofelectricity due torenewable energy policies
and changes to theenergy mixMediumlong term

■ Increased operating costs due to higher electricityprices.

■ Reduce electricity consumption by installing energysaving equipment.

Strengthening of laws andregulations related toresource recycling

Mediumlong term

■ Changes in raw material costs and costs incurred as aresult of changing to alternative materials due toregulations on plastics and recycling regulations.

■ Strengthen multi-company purchasing.
■ Recycling activities for waste including plastic, ferrous
and nonferrous materials.
■ Consider recycling products and parts.

Changes inmanufacturing processes
to contribute todecarbonization

Mediumlong term

■ Fall in the demand for pumps due to the optimization ofparts in semiconductor manufacturing, etc. in order tocontribute to decarbonization and the shortening of themanufacturing process.

■ Promote the development of decarbonized (energysaving and resource-saving) products and technologies.

Behavioral changes
associated withdecarbonization
throughout the supply
chain

Shortmediumterm■ Client companies demand decarbonization and costs
are incurred to respond, such as the introduction ofdecarbonization technologies and equipment in theproduction of products.

■ Reduce the risks associated with the decarbonizationand streamlining of in-house manufacturing processes.

Behavioral changes
caused by stakeholders’
ESG/sustainability
initiatives

Shortlong term

■ Inadequate ESG initiatives, including climate change
initiatives, will damage the reputation of the company inthe eyes of clients and investors.
■ Negative impact on the hiring and employmentenvironment.

■ Consider Scope 3 calculation and SBT certification.
■ Consider sustainable procurement.
■ Develop and provide products that contribute todecarbonization.

Increase in physicaldamage due to theintensification of extreme
weather eventsShortlong term

■ Damage to own facilities and supply chain caused bymore severe typhoons and floods.
■ Suspension of operations at manufacturing bases, fallin sales and increase in response costs.

■ Review and reinforcement of business continuity plans(BCP).

*3 Anticipated occurrence timing is defined as short-term: 0 to 3 years, medium-term: 4 to 10 years, and long-term: 11 to 30 years.
*4 Impact on business continuity or business performance is rated on a four-point scale from ★★★★ to ★ in descending order of impact.

1.5/2C4C
scenario Scenario

★★

-★

-★★
★★

★

★★
★★

★

★★

★

★★
★★

★★

★★

★★

5２

Category

Strategy 3/3
Item

EventDetails
Opportunities

Policies/regulations

TechnologyImpact *4

Opportunities

Timing*3

Measures■ The need for environmental measurements will
increase as laws and regulations are tightened, andsales of measuring instruments that use pumps ascomponents will increase.

■ Provide and promote products related to environmental
measurements.

Mediumlong term

■ The widespread use of fuel cells and secondary
batteries will increase demand for pumps used in
manufacturing processes and in related equipment.

Mediumlong term

■ Following the transition to a decarbonized society, thewidespread use of renewable energy and thedevelopment of energy-saving technologies will
increase the demand for pumps used in the
manufacturing process and in equipment.

Increased demand forenvironmental
measurements
associated with adecarbonized society

Mediumlong term

Widespread use of fuelcells and secondary
batteries

Widespread use ofrenewable energy andenergy-saving
technologies

1.5/2C4C
scenario Scenario★★

★

■ Promote the effectiveness of our products in new energy
fields.
■ Develop products and new technologies that contribute todecarbonization.

★★
★★

★★
★

■ Appropriately disclose the energy-saving performance ofour products.
■ Develop products and new technologies related to energy
conservation.

★★
★

★★

*3 Anticipated occurrence timing is defined as short-term: 0 to 3 years, medium-term: 4 to 10 years, and long-term: 11 to 30 years.
*4 Impact on business continuity or business performance is rated on a four-point scale from ★★★★ to ★ in descending order of impact.

6３Risk Management

At IWAKI, our Sustainability Committee evaluates and discusses climate change-related risks from a both
qualitative and quantitative perspective, based on the likelihood of occurrence and financial impact.

Climate change-related risks identified by the Sustainability Committee will be integrated together withother risks by the Risk and Compliance Committee, and will be relatively assessed and response policies
and measures will be considered.
The Risk Management and Compliance Committee will issue instructions regarding matters discussed tothe relevant departments via the Risk Management and Compliance Council, a subcommittee to the Risk
Management and Compliance Committee, and the Risk Management and Compliance Committee will
regularly monitor progress.
The Board of Directors will discuss and decide our response to risks deemed to be significant.

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４Metrics and Targets 1/2

We have adopted greenhouse gas (GHG) emissions reduction targets as a metric to manage ourprogress in addressing climate change.
In order to realize a sustainable society, we will consider medium- to long-term strategies andmeasures, aiming to achieve carbon neutrality in 2050, in line with the 1.5C target set by the Paris
Agreement.

Targets for reducing GHG emissions (Scope 1 and Scope 2) in business activities
Category

Fiscal Year

Reduction Target

FY203050% reduction compared to FY2020 (yearending March 2021)

FY2050Carbon neutrality

Scope 1+
Scope 28

４Metrics and Targets 2/2

Changes in Scope 1 and 2 emissions (unit: t-co2)
Category

FY2020(year ending
March 31, 2021)

FY2021(year ending
March 31, 2022)

Scope1273

279

Scope2

2,002

1,805

Total2,275

2,084

Scope 1: Direct emissions from in-house consumption of fuel, etc.
Scope 2: Indirect emissions from consumption of electricity, etc.
supplied by other companies
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