Information Disclosure Based on TCFD Recommendations
HOKKAN Group recognizes climate change measures as the challenge of business management andacknowledges risks and opportunities related to climate change may significantly influence the businessstrategy. In 2021, the Group has newly established the “Basic Environmental Policy” upholding “to takeclimate change measures” as 1st step and set a new target as “to become carbon neutral by 2050.” OnFebruary 2022, in order to pursue the measures proactively, the Group endorsed the Recommendationsof the Task Force on Climate-related Financial Disclosures (TCFD). Based on the framework of theRecommendations, we will analyze and take countermeasures against the risk and opportunity thatclimate change may trigger and disclose related information.

I. Governance①-1 Establishment of GovernanceIn order to pursue climate change measures as one of the key challenges of Groupʼs business
management, the Group has established the Sustainability Committee chaired by the Representativeand President Director. In the meeting of Risk Management Committee and Sustainability Committee
shown in the governance structure diagram below, which are held twice a year, discussions on risks
and opportunities related to climate change are conducted at every meeting. These discussions
contribute to formulating policies and strengthening initiatives. In the meetings attended by the boardof directors, for which the CEO is responsible, the results of monitoring our group's sustainability
activities are reported and the formulation and direction of objectives in the activities are confirmed,
and they are properly promoted and supervised.
①-2 Governance System

Board of Directors（Representative Director）
direction, report

direction, report

Sustainability Committee●Formulate sustainability action plancooperateRisk Management Committee●Supervise risk including climate change

direction, reportcooperatereportCompliance Committee●Compliance with laws & regulations●Delibrate key challenge, consider & set KPI●Fair trade●Deliberate disclosures to stakeholders●Corruption prevention●Validation & Report of Sustainability activities

direction, report

Sustainability ActionPromoter Meeting

direction, report

Group Companies

direction, report

Group Management
Meeting

①-3 Meetings & Roles in Governance SystemMeetings

Role

Board of Directors

Chaired by the Representative Director monthly. Oversees management of group

Meetingcompanies for sustainable growth and to increase the corporate value in a mid-Frequency
Monthly

long term.
Sustainability

Held twice a year in principle, matters related to sustainability activities, including

Committee

measures against climate change are discussed, in align with our management
philosophy and basic sustainability policy. Additionally, we discuss, set, and verify
the social issues that the entire group should tackle, as well as KPIs andobjectives.
Specific implementation measures, and the progress of each group company isTwice ayear

confirmed and discussed based on the content reported at the "Sustainability
Activities Promotion Meeting", which consists of sustainability promoters fromeach group company.
Risk Management

To be held twice a year generally, to supervise the risk management of theTwice aCommittee

whole group, identifying the risk periodically in order to mitigate the risk.

yearCompliance

To be held quarterly generally. Establish rules & guidelines and conduct

Committee

education & training to ensure appropriate operation by gathering informationof laws, regulations, and government instructions following the reports ofQuarterlycompliance activities of our Group.
Group

To be held monthly generally. To deliberate important management challenges

Managementof the whole group, business unit, and each company.

MeetingMonthlyII. Strategy②-1 Identification of Risk and Opportunity / Resilience
In order to assess the impact of climate-related risks and opportunities on our Group's business,strategy, and financial planning, our Group continuously conducts scenario analysis, referencing
climate-related scenarios from the IPCC (Intergovernmental Panel on Climate Change) and IEA(International Energy Agency). Based on these scenarios, we have envisioned a world with temperature
increase of 1.5℃ to 2℃ (mainly using SSP1-1.9, SSP1-2.6, RCP2.6, SDS, NZE) and 4℃ (mainly using
SSP5-8.5, RCP8.5), and identified the following key risks and opportunities.

Classification and Type of Risk

Technology

Impact to business / finance
1.5℃～２℃

Our Actions, Plans

４℃
Major

Carbon pricing will not be strengthenedーMonitor government policies ＆ regulations
Investment in energy-saving equipment andpromotion of renewable energy procurement andemission trading

Taxation on Products Made with
Increased operational costs due to theMedium-term
Primary Plasticsintroduction of plastic tax

Minor

Plastic tax will not be implementedー

Improvement in the use of recycled materials

Adapting to Environmentally
Conscious Plastic Products

Increased development costs and raw
material procurement costs due to the
Short toMedium-term response to environmentally conscious
plastic products

MediumDemand for environmentally conscious
plastic products remains unchangedーPromotion of environmentally conscious plasticproducts
development of raw material procurement strategy

Changing Consumer
Environmental AwarenessMedium-term

Decreased sales due to delay in response
to environmentally conscious products

MediumConsumer environmental awareness does
not improveー

Monitor market trends
Development of environmentally conscious products

Fluctuations in Raw Material
PricesShort-term

Increased raw material procurement costs
due to the introduction of carbon tax

Minor

New carbon tax will not be implementedー

Improvement in usage ratio of recycled materials

Trade Suspension due to Delayin Response to Environmentally
Conscious Products

Short toDecreased Sales due to Trade Suspension
Medium-term from Customers

Major

No trade suspension occursーDevelopment of environmentally conscious products
Timely disclosure of business strategy

MediumDecreased sales due to business shutdown

Major

Design ＆ enhance BCP

Short toDecreased sales due to water usage
Medium-term restrictions

Minor

Decreased sales due to water usage
restrictions

Minor

7% reduction in water intensity by 2030 (compared tothe baseline of 2019)

Short toDecreased sales of canned products due toMedium-term decreased yield of food ingredients

Minor

Decreased sales of canned products due todecreased yield of food ingredients

Minor

Collaboration with brand owners

Minor

Increased health hazards,
Decreased sales due to decreased laborproductivity

Minor

Working environment improvement

Strengthening Carbon Pricing
Government
Policies ＆Regulations

Timeframe

Transition
Risk

Increased costs due to the introduction ofMedium-term new carbon taxes and strengthening ofGHG emission trading systems

MarketReputation

Acute Physical
Risk

Increase in Flooding

Occurrence of Droughts

Long-term

Decreased sales due to business shutdown

Physical
Risk
Chronic Physical
Decrease in Food Crop Yields
Risk

Rising Risk of Heatstroke among
Employees

Classification and Type of Opportunity

Promote resource efficiency

Installation of Facilities for GHGEmissions Reduction

Increase in demand forbeverages

Long-termTimeframe

Increased health hazards,
Decreased sales due to decreased laborproductivity

事業/財務影響
1.5℃～２℃

Short toDecreased operational costs throughMedium-term production facility efficiency improvement

Long-term

The increase in sales accompanying therise in demand for beverages due to theincrease in temperature

当社の対応・検討方針

４℃
Medium

No introduction of facilities for GHG
emissions reduction

Minor

The increase in sales accompanying therise in demand for beverages due tosignificant temperature increase

Medium

No increase in demand for environmentallyconscious productsーMedium

Promotion of investment in energy-saving equipment

The expansion of beverage manufacturing scale

Product ＆ Service
Increasing Demand forEnvironmentally Friendly
Products

Increased sales due to the increased
Medium-term demand for environmentally conscious
products※Time frame: Short-term : within 3 years, medium-term : within 3 to 10 years, long-term : 10 to 30 years※Scope : Group-wide both domestic and abroad (including supply chain)※Financial Impact : Small : Less than 1 billion yen, Medium : Less than 5 billion yen, Large : 5 billion yen or moreーDevelopment of environmentally conscious products
Prepare new business plan

②-2 Future Efforts
As a result of conducting scenario analysis, under the 1.5℃ to 2℃ scenario, significant risks suchas increased costs due to enhanced carbon pricing, cessation of transactions due to delays in
responding to environmentally friendly products, and operational stoppages due to flooding wasconfirmed. In addition, based on currently published literature on water stress and natural resources,
it was reaffirmed that under the 4℃ scenario, the financial impact of operational stoppages due toflooding would be extremely significant for our Group's business.
In response to these risks, we will continue to promote initiatives such as investment in energysaving equipment, procurement of renewable energy, promotion of emissions trading, sales
promotion of environmentally friendly plastic products, development of new environmentallyfriendly products, and strengthening of business continuity plans. Furthermore, we will introduce
Internal Carbon Pricing (ICP) from the fiscal year 2024, and all employees will engage in activities
to raise awareness of decarbonization.
On the other hand, under the 1.5℃ to 2℃ scenario, we recognize that key opportunities include
being able to systematically reduce energy costs by introducing facilities aimed at reducing GHG
emissions, and increasing demand for environmentally friendly products as consumer ethicalconsumption consciousness improves. In both scenarios, we recognized the opportunity for an
increase in demand for soft drinks due to the effect of rising average temperatures. However, we
recognize that if we do not promote decarbonization to curb future temperature rises, business
continuity will become difficult. Going forward, we will actively address climate change issues andenhance our resilience.
In order to continue providing products needed by our customers and society, we will regularly
assess and manage climate-related risks and opportunities and refine our scenario analysis tocontribute to the sustainable growth of our company.

III. Risk Management③ Risk Management System
The Group-wide risk is mainly managed and controlled by the Risk Management Committee. TheCommittee meeting is held twice a year chaired by our President & Representative Director. Risks,
including climate change matters, are identified periodically, and minimized by continuing to tackle
each identified risk. As well, since our group have numerous business operations, directors andexecutive officers of each group companies takes the lead to manage such risks.
In unexpected circumstances, the Crisis Management Task Force lead by the Representative andPresident Director shall be set up rapidly responding to prevent additional damage and to mitigate theinfluence.
Transition and physical risks related to climate change are identified and evaluated by each groupcompany. Such risks are treated as risks which may have financial effect and deliberated in the “RiskManagement Committee” to enhance efforts. The result of the deliberation is recommended andreported to the board of directors for appropriate supervising system.

IV. Metrics and Targets④-1 Greenhouse Gas Emissions Reduction Targets
Regarding the climate change issue, the Group established the long-term target of aiming for “carbonneutral” by fiscal year 2050 for Scope 1 and 2 greenhouse gas emission. For the medium-term target,
we aim to reduce 30% of Scope 1 & 2 and 20% of Scope 3 by fiscal year 2030 each compared to fiscalyear 2019.
Unit︓Kt-CO2eq

Scope1,2

FY 2019

FY 2020

FY 2021

FY 2022

ResultResult

ResultResult210

184

185

FY 2030

FY 2050

181

147

Net zero477※3emissions
Scope3481※3462506

384〇 GHG Emissions Trend (Scope 1, 2)※1 For the fiscal year 2020, we focused on two domestic companies (HOKKAI CAN CO., LTD. and NIHON CANPACKCO., LTD.) that account for over 90% of domestic emissions.
※2 For the fiscal year 2020, we focused on four domestic companies (HOKKAI CAN CO., LTD. , NIHON CANPACK CO.,LTD. , OS MACHINERY CORP. , and KE・OS MACHINERY CO., LTD.) that account for over 90% of domestic emissions.
※3 Revised due to the expansion and recalculation of targeted products (HOKKAI CAN CO., LTD.).

④-2 PET Bottle Resource Circulation Goal
【Basic Concept】◎We will promote environmentally conscious design that takes into account environmental impact
while maintaining the functionality of the containers.
◎In order to contribute to the resource circulation cycle, we will promote the expanded use ofrecycled materials (such as bottle-to-bottle recycling).
“We aim to achieve a 50% usage of recycled materials in PET bottles by 2030.”