Noritz Group Environmental Policy
I. Basic concept
Realizing a sustainable society with the slogan of "Beautiful Earth for the Next
Generation," Noritz Group contributes to building three elements of a sustainable
society: a low-carbon society, a recycling-oriented society, and a society in harmony withnature. Through our products and business activities, we are striving to mitigate andadapt to climate change, lessen acid rain, reduce energy use, engage a circular economy(through resource saving, recycling, etc.), manage chemicals contained in products,
pursue biodiversity and ecosystem protection, make effective use of water resources, andprevent pollution. To promote active activities and improve our performance, we utilize
the environmental management system and implement continuous improvement. We
also comply with legal and other requirements relating to our business activities andproactively pursue environmental communication with those inside and outside thecompany.

II. Promotion system
Noritz Group has built an environmental management promotion system as amechanism to promote environmental conservation activities. For concrete efforts basedon this policy, the sustainable promotion officer (Head of Management StrategyHeadquarters) takes on the position of the chairperson. We then comprehensively deal
with subjects related to ESG, such as environmental strategies, human rights,procurement, compliance, and risk management, and manage the PDCA cycle in theSustainability Committee, which is held with the attendance of board directors andmanaging executive officers, including the president of all the companies. Important
individual issues across operating divisions are taken care of by working groups,including group companies centering around the Corporate Planning Department.

III. Initiatives
1. Building a low-carbon society
1) Reduction of CO2 emissions in product manufacturing and sales
Most greenhouse gases (CO2) emitted in the lifecycle of the equipment manufactured andsold by Noritz Group are emitted during the use of the equipment. We will accelerate
product development, including the creation of a diverse lineup of high-efficiency water
heating appliances, to ensure that we can provide equipment that contributes tomeasures against global warming without losing customers' comfort and convenience
toward the building of a low-carbon society.
2) Environment-friendly business activities
Noritz Group continuously makes efforts to reduce CO2 emissions (which are responsible
for global warming), adopt energy-saving activities, reduce waste, promote resource
recycling, and prevent the environment from pollution. We also strive to improve theefficiency of transportation and reduce CO2 emissions in distribution.

3) Forest carbon offset
Since 2011, Noritz Group has continued to conduct a carbon offset activity using the JCredit Scheme. Through this activity, we offset CO2 emitted during the production of thehybrid hot-water supply/heating system and the GT-C72 Series (except the automatictype), a series of gas bath water heaters, and CO2 emitted by energy use at theTsuchiyama Office in the water heater recycling plant of S-CORE HEARTS CO., LTD, a
special subsidiary company of Noritz Group. We proceed with our carbon offset activity
to be environmentally conscious not only when using environment-friendly products but
also when manufacturing such products.
2. Building a recycling-oriented society
1) Promotion of a water heater recycling businessAs a manufacturer of water heaters, which are metal products made of earth resources,
Noritz Group promotes efforts to directly collect, disassemble, and recycle used water
heaters for resource recycling as well as reduce the number of resources to be usedthrough collaboration with dealers and welfare facilities. We separate the used water
heaters that we collect into non-ferrous materials, such as iron, copper, aluminum,stainless steel, and other materials, to contribute to recycling. This disassembling andrecycling process also creates employment opportunities for disabled people.
2) Effective use of resources in packaging products
To build a recycling-oriented society, we need to make efforts to attain optimization
throughout the entire society. We are working on an environment-conscious design(reduction in size and weight) that considers the real picture of overall resource use with
our eyes set on the upstream and downstream supply chains aside from our own businessscope. We also need to promote recycling and the use of recycled resources after thedisposal of our products from an extensive perspective based on the assessment of theentire lifecycle. Noritz Group verifies the service life and safety of its products and, atthe same time, promotes 3R (Reduce, Reuse, Recycle) capable design. Furthermore, wealso adopt 3R measures, such as returnable packaging, for packaging materials forproducts.
3) Efforts to reduce waste
Noritz Group is engaged in reducing waste and promoting resource recycling through its
business activities. We also aim to achieve zero emissions at our production sites.

3. Building a society in harmony with nature
1) Efforts to manage chemicals contained in products
Noritz Group is addressing the strengthening of sustainable procurement through thebuilding of a product chemicals management system as well as survey requests andanswers. We manage chemicals contained in products based on the Noritz Group ProductChemicals Management Guidelines, which include today's domestic and international
trends in addition to related laws and regulations. The RoHS Directive and REACH
represent regulations on chemicals contained in products, which tend to be tightened
and expanded. To respond to such regulations, we need not only to promote efforts in
Noritz Group, such as design, purchasing, quality assurance, manufacturing, and sales,
but also to work together with our business partners. To this end, we have formulated
the Sustainable Procurement Guidelines and strive to coexist and co-prosper with ourbusiness partners under the slogan of symbiosis with the global environment.
2) Effective use of water resources
Because Noritz Group regards water as a precious resource and wants to use it effectively,
we try to cut down on the use of clean water through water-saving activities and the useof recycled water at our offices and plants. At the Development Center in the Head OfficePlant, which is one of our major production bases, we have created a water recycling
system and use the water for experiments and other purposes. Through the generationof recycled water, we have greatly succeeded in reducing the use of clean water. We willcontinue to improve the water reuse rate and cut down on the use of clean water.

IV. Risks and opportunities
Environment-related risks and opportunities assumed in our business activities
ItemRisks
Opportunities
Low• Changes in the market• Creation of a new market
carbonenvironment due to low
resulting from low
societycarbonization triggered bycarbonization
climate change• Market development and• Increase in costs for respondinglarger share resulting fromto environmental regulations
environmentally competitive
product development
Recycling- • Business continuity crisis due to• Creation of a new businessorientedraw resource depletion
model resulting from thesociety
expansion of the water heater• Tightening of regulations about
recycling businessthe use of plastics (resin)(demand for a reduction)• Acquisition of competitivenessSociety inharmony
withnature• Prohibition of sales resulting
from an inability to respond tohazardous substance regulations
in each country and region• Business stagnation resulting
from difficult procurement offossil fuel and naturally derivedmaterials• Water heater use regulation
resulting from depletion of water
resources

resulting from the promotionof utilization of sustainable
materials• Acquisition of market
competitiveness through safe
and secure added value
relating to hazardous
substances• Advantage of manufacturer
selection and increased brandpower resulting from natural
symbiosis-conscious corporate
activities• Market development andlarger share resulting fromthe development of watersaving products with the useof water resources in mind

V. Indicators and goals regarding environmental management
Performance and goals (KPI) regarding environmental management are set asmateriality. The progress is reported in the Sustainability Committee, which is held
twice a year, and the KPI is disclosed on the Noritz Report website.
 ESG data of Noritz Group > ESG Databook | Noritz (noritz.co.jp)

April 19, 2024
Satoshi Haramaki
President and CEO
Noritz Corporation