Mitigating Climate Change
March 30th, 2023
MIURA CO., LTD. endorsed the recommendations of theTask Force on Climate-related Financial Disclosures inMay 2023.

Disclosure Based on TCFD Recommendations
MIURA CO., LTD. acknowledges that climate change is one of today's most serious issues with global implications. In
accordance with the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD),
the Company disclosed in May 2022 the extent and significance of the impact that climate-related risks andopportunities had on its business operations and revenue. The Company recognizes—from a scenario analysis
conducted for the fiscal year ended March 31, 2023—that its water-treatment equipment business has a good
opportunity for global expansion and growth, albeit under the influence of its core boiler business. The Company
acknowledges that the increasing importance of climate-change actions has led the public and private sectors inJapan to join forces in stepping up developing and undertaking green transformation (GX) initiatives. The MIURA
Group is committed to playing an instrumental role in helping achieve the universal goal of carbon neutrality.

1. GovernanceThe Company acknowledges that climate-related issues have a significant impact on its business operations, and it
therefore has an institutional arrangement in place for the Group's climate-change policies and initiatives. Under thisarrangement, the Group's climate-change policies and initiatives are discussed and proposed at the Sustainability
Promotion Meeting, reviewed at the Management Meeting, and approved and overseen by the Board of Directors,
which is chaired by the President & CEO of the Company. The Sustainability Promotion Meeting, which is chaired bythe Chief Sustainability Officer and convenes regularly, is composed of sustainability promotion officers and staffers
representing divisions and departments, and the administrative office.
・The Board of Directors approves and oversees the implementation of the Group's climate-change policies andinitiatives.
・The Management Meeting reviews the Group's climate-change policies and initiatives.
・The Sustainability Promotion Meeting considers and proposes the Group's climate-change policies and initiatives forreview and approval.

2. Risk Management
The Sustainability Promotion Meeting assesses the impact of climate-related issues identified by divisions anddepartments on the Group's business operations. The Company manages the Group's climate-related risks under therisk-management structure in place (See the figure below).
The Company manages all its risks, including climate-related risks such as transition and physical risks, at theManagement Meeting, which determines which risk items need to be managed, based on a business impact
assessment, and submits matters of profound significance to the Board of Directors for review. The Board of Directors
deliberates and decides on risk-management matters of profound significance and oversees their implementation.
・The BCP Committee serves as an advisory body for the Management Meeting and convenes on an ad hoc basis.
・The Management Meeting manages and makes decisions on all the Company's risks, including climate-related risks.
Make decisions

MIURA’s Risk-Management

Oversee

Structure
Consider andsubmit proposals

Board of Directors

ReportReview

Sustainability
Promotion Meeting

Make decisions

Management
Meeting

Composed of the Chief
Sustainability Officer, sustainability
promotion officers and staff ofdivisions and departments, and theadministrative office

Division(Department)

Risk Management
AdministrativeOffice

Division(Department)
1BCP Committee

Division(Department)3. Strategy
The Company conducts a scenario analysis to identify significant climate-related risks and opportunities and assess
their financial impacts. We used three prerequisites as a basis for conducting a scenario analysis on our boiler
business in Japan. They are:(1) The boiler business accounts for 45% of the Group's total annual revenue(2) As boilers are powered by conventional fossil fuels, our boiler business is likely to be affected by increasingly
stringent GHG emissions regulations(3) Achieving a technological breakthrough to reduce GHG emissions may give us an opportunity to enter a newmarket.
In a scenario analysis, we have predicted financial and business impacts of climate-related risks for 2030 and 2050,
using the 4℃ and 1.5℃ scenarios published by the International Energy Agency and other official institutions.

4℃ scenario: Global temperature rise will exceed 4℃,
making the severe impact of climate change apparent.

Ineffective or insufficient implementation of low-carbon
policies and regulations worldwide will leave global
warming unchecked. Climate change will result in
more frequent and intense natural disasters, which will
disrupt our office and factory operations, as well as
our supply chain.
Scenario analysis

At the same time, business demand is expected togrow for dual-fuel-switchable boilers to meet BCP
needs and for quick disaster-recovery solutions.

Climate-related
risk items

Type4℃
scenarioLow

1.5℃
scenarioHigh

Regulatory
policyRestrictions on theuse of fossil fuels
Transition
risks

Technology

Advances in lowcarbon technology
Change in energy
mix

be kept under 1.5℃, thanks to a worldwide
transition to a low-carbon society.

To achieve an environmentally sustainablesociety, there will be a general shift toward
a carbon-free or low-carbon economy.
Increasingly stringent restrictions on GHG
emissions, including the adoption of carbon
taxation and mandatory use of renewableenergy, will raise operating costs forbusinesses.
While the market for boilers powered byfossil fuels is likely to shrink, demand forenergy-efficient, low-carbon equipment andsolutions, as well as for boilers running on
renewable energy, is expected to grow.

Financial impacts

Carbon pricing(carbon taxation)

Administrative
guidance andregulatoryrestrictions on
products andservices in use

1.5℃ scenario: Global temperature rise will

MediumLow

MediumHigh2

Business risks
・Carbon taxation andother forms of tax hikes
drive up the price of
crude steel, theproduction of whichemits a significant
amount of CO2, andraise the manufacturingcosts of our steelencased products.
・A slowdown in thegrowth of industries that
rely on fossil fuels or aradical shift to a carbonfree economy
diminishes the demandfor our boilers.
・Climate-induced risks ofwater scarcity increase.
(Little impact on
MIURA's manufacturingoperations)・Emerging technologies
for mitigating climatechange make ourlegacy technologies
obsolete, which makes
our products lesscompetitive in themarket or affects ourmarket share.

MIURA's business
opportunities
・Zero-emission productsthat generate clean
steam have a chanceto create a value-addedmarket.
・Business demand
grows for solutions for
reducing CO2
emissions, such as
more energy-efficientequipment and facilitywide energy
management systems.
・Increasing climateinduced water risks andgrowing corporateneeds for energy- andwater-saving solutions
drive up the demandfor water-treatment
equipment.
・Sales of hydrogenpowered boilers
increase to businesscustomers that intend
to make greater use ofcleaner hydrogenenergy.

MarketAcute

Change in raw
materials costs
Purchase price ofsteel

Low

HighHigh

MediumHigh

MediumMore intense
extreme weather
events, such as
typhoons, storms,
landslides, andstorm tides

Physicalrisks

Chronic

Rising averageannualtemperatureHigh

Medium・As society is going allelectric, surging
demand for metal
resources creates
shortages in materials
and drives up theirprices.
・A devastating natural
disaster causes severe
damage to our factories
and offices and disrupts
our manufacturing
operations, which
undermines the trustand confidence
customers have in ourproducts and services
and adversely affects
their sales.
・Disruption in parts
delivery from suppliers
prevents us fromkeeping them insufficient stock andmeeting manufacturingschedules, thus causing
a loss of sales.
・Average temperaturerises to an extent thatexceeds the capacity ofcooling equipment.
(Little impact on
MIURA's manufacturing
operations)・Business demand
grows for dual-fuelequipment—such ascompact once-throughboilers with gas/oil
switchable
combustion—that
meets BCP needs,cogeneration systems(exhaust-gas boilers)
capable of continuing
to generate electricity
and heat even during apower outage or in theaftermath of anearthquake, and quick
disaster-recovery
solutions, including thediversification ofequipment.
・Climate change (risingtemperatures) will
increase the demandfor cooling equipment,
and will expand related
businesses.

Note: The level of financial impacts (high, medium, low) represents a relative value based on quantitative and qualitative
analyses.

Strategy and Initiatives for MIURA’s Equipment Sales Business in JapanStage

Key strategy

ObjectiveActions

Stage 1from 2022 through 2030

Stage 2from 2031 through 2050

Pursue every energy-saving opportunity anddevelop carbon-free technology solutions

Step up developing carbon-free equipment, including
machines that run on renewable energy

As a 100% carbon-free energy infrastructure has
yet to be widely available, we will make the bestuse of our legacy technology solutions to assist
business customers in achieving greater energysaving performance, and will assist them inswitching to low-carbon fuels and equipment toreduce CO2 emissions. Concurrently, we willdevelop carbon- free technology solutions to be
fully deployed from 2031 onward.

As a 100% carbon-free energy infrastructure
expands, we will offer business customers
equipment that runs on renewable energy andprogressively switch to developing and marketingcarbon-free equipment.

• Identify energy-related operational issues thatbusiness customers may have in their factories
and provide customized comprehensive
energy-saving solutions• Offer business customers heat pumps andheat-recovery compressors that bestcomplement their legacy equipment, in order toachieve greater energy efficiency• Develop technology for hydrogen-powered
equipment, and expand its offerings and sales• Partner with other companies to offer upgradedcarbon-free solutions and pursue broader business
opportunities

34. Metrics and Targets
The Company considers climate-related impacts as one of the most critical issues to the Group and has establishedlong-term GHG reduction targets, as shown below, to mitigate environmental impacts associated with our business
operations, as well as the products and services we market. We will continue our efforts to achieve the Group's GHG
reduction targets and keep track of our performance.
The MIURA Group's GHG reduction targets
Scope 1 and 2 emissions(GHG emissions resulting from energy use,
as defined in the Act on Promotion of Global
Warming Countermeasures of Japan)
Base year

By 2030

Reductiontargets

Scope 3 emissions(GHG emissions per revenue unit in Japan)

2013

2019

DOWN 50%

DOWN 40%◆Reduce Scope 1 emissions to 3,922 tCO2 byshifting marketing focus to gas-powered boilers
to reduce CO2 emissions resulting fromoperating tests of equipment conducted in afactory◆Offer business customers gas-powered, moreenergy-efficient boilers, exhaust-heat and unusedheat recovery systems, and facility-wide energysaving solutions◆Reduce Scope 2 emissions to 3,549 tCO2 bystreamlining operations, switching to equipmentof greater energy-saving performance, andpurchasing electricity generated from renewableenergy sources and nonfossil fuels

DOWN 100%, to achieve carbon neutrality
By 2050

Reduction
targets

DOWN 100%, to achieve carbon neutrality◆Switch boiler fuels to hydrogen- and ammoniabased fuels, take a methanation approach, andoffer comprehensive carbon-free solutions tomore business customers

Definitions
GHG: Greenhouse gas
Scope 1 emissions: Direct GHG emissions that occur from sources controlled or operated by a business, such as emissions
associated with fuel combustion and manufacturing processes
Scope 2 emissions: Indirect GHG emissions from the use of electricity, heat, and steam supplied by other companies
Scope 3 emissions: Indirect GHG emissions not included in Scope 1 or 2 emissions (emissions by other businesses associatedwith operations of a business)4