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NIPPON KAIJI KYOKAI(ClassNK)

GHG Ref. No.: 442G-1

Verification Statement
TSUNEISHI HOLDINGS CORPORATION
and its 29 affiliates
Scope of Verification Engagement
This Verification Statement is issued to TSUNEISHI HOLDINGS CORPORATION and its 29 affiliates.
Nippon Kaiji Kyokai (Headquarters: 4-7, Kioi-cho, Chiyoda-ku, Tokyo, Japan, hereinafter referred to as “theSociety”) was commissioned by TSUNEISHI HOLDINGS CORPORATION (Head Office location:1083
Tsuneishi, Numakuma-cho, Fukuyama, Hiroshima, Japan; hereinafter referred to as “the Applicant”) to assure andverify its GHG emissions inventory (hereinafter referred to as “the Report”) for 2023 (January 1, 2023 to December
31, 2023). The Report covers direct GHG emissions, energy indirect GHG emissions, and other indirect GHGemissions.
The scope of the verification engagement includes the Applicant’s Head Office and its 29 affiliates as follows, andthe scope is selected as the Applicant’s boundary. The consolidation method of the affiliates is based on“Operational Control” under the “Control Approach”.

-TSUNEISHI SHIPBUILDING Co., Ltd.

-TSUNEISHI HEAVY INDUSTRIES(CEBU), Inc.

-TSUNEISHI GROUP (ZHOUSHAN)-TSUNEISHI IRON WORKS Co., Ltd.

SHIPBUILDING, Inc.
-TSUNETETSU(CEBU), INC.

-TSUNETETSU(ZHOUSHAN), Inc.

-TSUNEISHI TRADING CO., Ltd.

-TSUNEISHI ENGINEERING Co., Ltd.

-MIHO SHIPYARD Co., Ltd.

-KANDA DOCKYARD CO., LTD.

-Mitsui E&S Shipbuilding Co., Ltd.

-NIIGATA SHIPBUILDING & REPAIR, INC.

-Yura Dockyard Co., Ltd.

-TSUNEISHI FACILITIES & CRAFT Co., Ltd-KAMBARA KISEN Co., Ltd.

-KAMBARA KISEN (CHINA) SHIPPING Co., Ltd.

-SHANGHAI KAMBARA INTERNATIONAL-KAMBARA LOGISTICS Co., Ltd.

TRANSPORTATION Co., Ltd.
-KAMBARA TUG & MARINE SERVICES Co., Ltd.

-TSUNEISHI KAMTECS CORPORATION-TOKO CORPORATION-SUNNY CREATION PLANNING CORPORATION-EARTH CREATE OFFICE Co., Ltd.

-FUTABA SANKYO Co., Ltd.

-TSUNEISHI KAMTECS RIKUUN Co., Ltd.

-YOSHIDA Co., Ltd.

- CYCLE TREND INDUSTRIES Sdn. Bhd-TSUNEISHI LR Inc.

- SETOUCHI CRUISE, Inc.

-TSUNEISHI HOLDINGS CORPORATIONNIPPON KAIJI KYOKAI(ClassNK)

Page 2 / 4Operational boundaries are set up in such a manner as to account for direct and indirect GHG emissions (includingCH4, N2O) emitted from activities taking place in the above-mentioned Applicant’s Head Office and its 29
affiliates, and ocean-going vessels and coastal vessels. Sinks and reservoirs, NOx, and SOx are out of scope.
Applicable standards and references.
1.

ISO14064-1:2018 (JIS Q 14064-1:2023)

2.

ISO14064-3:2019 (JIS Q 14064-3:2023)

3.

GHG Protocol

4.

Greenhouse Gas Emissions Calculation Procedure (TSUNEISHI HOLDINGS CORPORATION)(Applied quantification methodologies)

5.

Greenhouse Gas Emissions Calculation and Reporting Manual ver.4.9 (Act on Promotion of Global WarningCountermeasures)

6.

Ministry of the Environment; emission factor database for calculating greenhouse gas emissions oforganizations through supply chains (Ver.3.2)

Responsibility for the management of GHG data
The Applicant is responsible for preparing the Report and for maintaining effective internal controls over the dataand information disclosed. The Society is responsible for carrying out the verification engagement for the Reportin accordance with the contract made with the Applicant. It is the Applicant who, in the final instance, willapprove the Report and it will continue to remain under the Applicant’s responsibility.
Verification Procedure
Verification by the Society has been carried out in accordance with “ISO14064-3:2019 (JIS Q 14064-3:2023)
Specification with guidance for the verification and validation of greenhouse gas statements” to provide reasonableassurance that GHG data as presented in the Report have been prepared in accordance with “ISO14064-1:2018 (JISQ 14064-1:2023) Specification with guidance at the organization level for quantification and reporting ofgreenhouse gas emissions and removals.”,
To form a conclusion, the verification engagement was undertaken as a sampling exercise that included thefollowing:Site visit to the Applicant (1083 Tsuneishi, Numakuma-cho, Fukuyama, Hiroshima), and strategic analysis
and risk assessment of the following sites (TSUNEISHI IRON WORKS Co., Ltd., TSUNEISHI HEAVY
INDUSTRIES (CEBU), Inc.

Interview of the staff in charge of GHG emission data, information management, and preparation of theReport at the above sites



Review of the management process of GHG emission data and information included in the ReportPage 3 / 4NIPPON KAIJI KYOKAI(ClassNK)

Verification of the integrity of the information sources available at the visited sites and aggregation in theHead Office for GHG emission performance data and information included in the Report

Review of the structure, equipment, and emission source data of ocean-going vessels and coastal vessels

Review of QA/QC system of BDNs and double-check system at the time of refuelling

Level of Assurance and Materiality
The verification opinion declared in this Verification Statement was determined based on the reasonable level ofassurance setting the materiality threshold value at less than 5% of total emissions for direct emissions, indirectemissions from imported energy, and a limited level of assurance setting the materiality at the professional
judgment of the verifier for other indirect emissions.
Verification opinion<Unmodified opinion>
In our opinion for direct emissions, indirect emissions from imported energy, and other indirect emissions from thecorporate value chain, the Report has been prepared, in all material respects, based on the international standard
ISO 14064-1:2018 (JIS Q 14064-1:2023) Part 1: Specification with guidance at the organization level for
quantification and reporting of greenhouse gas emissions and removals. Nothing has come to our attention thatcauses us to believe that indirect GHG emissions from transportation, from products used by the organization, andassociated with the use of products from the organization in the ANNEX tables are not materially correct.
Further, there is no conflict of interest between the Society and the Applicant.

August 9, 2024
NIPPON KAIJI KYOKAI
Green Certification Department
Lead Auditor

NIPPON KAIJI KYOKAI
Business Assurance Division
Director

Yoshihiko DOZONOYoshiya YAMAGUCHIPage 4 / 4NIPPON KAIJI KYOKAI(ClassNK)

Annex 1: ISO 14064-1 Category: Summary of GHG Inventory for 2023 (tCO2e)
Verified GHG emissions (Category)

2023

Direct GHG emissions (Category 1)

435,569

Indirect GHG emissions from imported energy (Category 2)

83,216

Indirect GHG emissions from transportation (Category 3)

19,524

Indirect GHG emissions from products used by an

1,555,152

organization (Category 4)
Indirect GHG emissions associated with the use of products

17,137,818

from the organization (Category 5)
Total GHG Emissions

19,231,279

Annex 2: GHG Protocol Category: Summary of GHG Inventory for 2023 (tCO2e)
Verified GHG emissions (Scope/Category)

2023

Direct GHG emissions (Category 1)

435,569Indirect GHG emissions from imported energy (Scope 2)

83,216

Indirect GHG emissions from the Corporate Value Chain

18,712,494(Scope 3)
1. Purchased Goods and Services
2. Capital Goods
3. Fuel-and Energy-Related Activities not included in

1,372,646
28,478130,370

Scope 1 or Scope 2
4. Upstream Transportation and Distribution

9,959

5. Waste General in Operation

23,658

6. Business Travel

1,961

7. Employee Commuting

7,034

9. Downstream Transportation and Distribution
11. Use of Sold Products

570
16,489,791

12. End-of-Life Treatment of Sold Products

30,618

13. Downstream Leased Assets617,410

Total GHG Emissions

19,231,279

Annex 3:
GHG emissions deducted by Credit in 2023 (tCO2e)13,453