Disclosure Based on theRecommendations of the Task Force on
Climate-related Financial Disclosures(TCFD)
August 9th, 2023
Kintetsu World Express, Inc.

©2022 Kintetsu World Express, Inc.

1. Governance
The KWE Group Sustainability Committee, headed by the President and CEO, addresses basic policy, material
issues, and risks and opportunities related to climate change. The committee meets at least twice a year, withadditional meetings as necessary. The committee met four times in fiscal year 2022. The topics related to climatechange that were discussed are shown below (FY2022 Agenda).
Committee members include our company directors, corporate department general managers, regional
headquarter general managers, and representatives from APLL, ensuring diversity in its deliberations. Matters
discussed and decided by the committee are presented to the Corporate Management Meeting* and reported tothe Board of Directors as needed.
Under the oversight of the Board of Directors, matters discussed and decided by the Corporate Management
Meeting are disseminated to all divisions within the organization and reflected in their management plans andbusiness operations.
Note 1*: The Corporate Management Meeting is composed of the company’s full-time directors, full-time Audit & Supervisory Board members, executive officers, anddivision managers. It meets at least twice a month to decide important matters related to overall business policy and the conduct of business.

FY2022 Agenda related to climate change● Deliberation on Sustainable Aviation Fuel (SAF)● Deliberation on TCFD recommended disclosures● Deliberation on committing to SBTi (Science Based Targets initiative)● Report on greenhouse gas emissions calculator for customer use● Report on activity to reduce greenhouse gas emissions, including shift to LED lighting, shift to electric forklifts,and purchasing of non-fossil fuel energy certificates● Progress report on collection of greenhouse gas emission data
©2022 Kintetsu World Express, Inc.

22. Strategy
We have identified climate change as a mid to long term risk. We have analyzed long term scenarios to2050 for potential impact on our business, with reference to IEA (International Energy Agency) and IPCC
(Intergovernmental Panel on Climate Change) scenarios (1.5°C or below** and 4°C***) for risks andopportunities in order to consider the resilience of our business strategy and organization.
Note 2**: 1.5°C or below: IEA SD, IPCC AR5-RCP2.6
Note 3***: 4°C: IPCC AR6-RCP8.5

3. Risk Management
Our climate change-related risk working group is planning, implementing, and managing the progress of
our response to the risks and opportunities we have identified. Scenario analysis began in February 2022
and is reviewed at least once a year. We are focusing on addressing the risks and opportunities shown
below on p.14 based on likelihood and degree of impact. Climate change related risks will continue to beanalyzed by the KWE Group Sustainability Committee, reported to the Corporate Management Meeting,and integrated into our overall risk management.

4. Metrics and Targets
We are using GHG emissions (CO₂e) as a metric to assess and manage the impact of climate-related risks onour business. We set the following 2030 reduction targets for the KWE Group in August 2023. Scope 1 andScope 2 emissions in FY2021 and FY2022 were:©2022 Kintetsu World Express, Inc.

3

Emissions Reduction Targets
Targets (Scope 1 and 2)
FY203035% Reduction from FY2022

FY2050Carbon Neutrality

Recent Actual Emissions
Results

Emissions (tons)
Scope 1

Scope 2

FY2021462

6,479

FY2022345

6,251(Group Wide)

50,612

46,720©2022 Kintetsu World Express, Inc.

4

Assessing and managing climate-related risks and opportunities (Scenario analysis)
Category

Policy andLegal

Risk

Carbon tax

Next generation air,sea, and land vehicles
TechnologyNew fuels (such as SAFand bio-fuel)Transition Risk

MarketReputation

Acute

Modal Shift

Corporate environmental
reputation

Extreme weather

Physical Risk

Chronic©2022 Kintetsu World Express, Inc.

Rising sea levels
with rising
average airtemperatureBusiness Impact

Timeframe

1.5℃
Scenario

4℃
ScenarioRisk: Higher operating costs due tostricter national environmental
regulations

Mid - longterm

HighLow

Risk: Higher operating costs due to development andintroduction of new technologies

Short - long
term

High

Low

Short - longterm

HighMedium

Short - midterm

High

Low

Mid - longterm

MediumLow

Risk: Reduced revenue due to increase in use of sea andrail with higher demand for transport modes with less
impact on the environment

Short - midterm

HighMedium

Opportunity: Development of new services and expandedbusiness areas

Short - midterm

MediumLow

Risk: Reduced revenue due to loss of orders andexclusion from bidding with falling reputation, negative
impact on recruiting

Short - midterm

High

Opportunity: Increase in revenue by acquiring
more business with improved reputation, increasein opportunities to hire talented human resources

Short - midterm

High

Opportunity: Lower carbon tax and other regulatory costswith reduced GHG emissions
Risk: Slower adoption and higher procurement costs withinadequate supply
Opportunity: Lower carbon tax and other regulatory costswith reduced GHG emissions

Risk: Reduced revenue with fall in freight volume due todifficulty in providing transport services and increased
recovery costs

Risk: Difficulty using ports and airports in low elevation
areas. Also limited usable facilities.

Short - midterm

Mid - longterm

Strategy1) Set GHG emissions targets and fulfill them on an ongoing basis
2) Shift to eco-friendly vehicles and electric forklifts
3) Change to renewable energy source electric power
4) Pass along freight charges appropriately
1) Plan investments while monitoring social trends and newtechnology
2) Participate in pilot programs and consider implementation while
evaluating cost

1) Actively participate in SAF programs and promote social
implementation
2) Approach governments and associations toward increasing
adoption in the industry

1) Develop sea and rail transport services in line with customer
needs and build a business model adapted to the changing
market2) Develop low environmental impact air transport products
leveraging SAF in collaboration with airlines
3) Propose low CO₂ emission routes and transport modes
leveraging AILow
1) Work on improving reputation with customers by including
active environmental initiatives in business strategy

LowLow

LowHighHigh1) KWE and service providers respond to flood and other damage
in the case of logistics warehouses owned by KWE, and KWE
coordinates with lessors to respond in the case of rented
warehouses
2) Select alternative forwarding warehouse facilities and routes tobuild a stable logistic network
3) Manage risks in coordination with the KWE Risk Management
Committee
1) Work with local authorities and business partners to respond toflood and other kinds of damage
2) Manage risks in coordination with the KWE Risk Management
Committee5Kintetsu World Express, Inc.
Corporate Planning & Administration Department
24th Floor, Shinagawa Intercity Tower A, 2-15-1 Konan, Minato-ku, Tokyo 108-6024
Phone: +81-3-6863-6441 (For Inquiries)