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Growth Strategies and Sustainability Management ︱1Feature

Sanki Engineering Group’s Initiatives forAchieving Carbon Neutrality by 2050

Manufactured
CapitalNatural Capital

Reduction target for Scope 3 emissions
TargetReduction measures•E xpand business using energy
conservation and energy creation
technologies•Boost promotion of the SANKI YOU
Eco Contribution Point system-10%TargetNet zero

2020

2025

Scope 3

1. Rawmaterials

4. Transportationand distribution

Scope 1

Scope 3

Scope 2

7. Employee
commutingCombustionof fuels

Others: 2. Capital goods, 3. Fuel- and energy-related
activities not included in Scope 1 or 2, 5. Waste generated inoperations, 6. Business travel, 8. Leased assets

Downstream

Electricityuse

12. End-of-life
11. Use of soldtreatment of soldproducts
products

Others:9. Transportationand distribution,
10. Processing ofsold products,
13. Leased assets,
14. Franchises,
15. Investments

Sanki Techno Center

FY2022 Reductions in CO2 emissions(Scopes 1, 2)

2.72

kt-CO2(down 34% from FY2020)

Bolstering the SANKI YOU Eco Contribution Point System

In fiscal 2022, we bolstered the SANKI YOU Eco Contribution Point system, which converts
the reductions in CO2 emissions that customers achieve by adopting our energy-saving
proposals into points that are used to support environmental conservation activities. We
plan to raise the point conversion rate from 100 yen per ton of CO2 reductions to 200 yen
per ton to expand support for environmental conservation activities.
We subsequently entered into partnerships in March 2023 with Wakayama
Prefecture and Shirahama Town as well as Ritto City in Shiga Prefecture, as newrecipients of support. The respective projects were named SANKI YOU Forest NankiShirahama and SANKI YOU Forest Lake Biwa Konze, and we will work to establish forests
for future generations by cultivating relationships with local communities through treeplanting and other activities with the participation of Sanki Engineering employees.

Feature 1

Own Emissions(Sanki Engineering Group)

Initiatives for Reducing In-house Energy Useby the Sanki Engineering GroupIn fiscal 2021, we embarked on a full-scale effort to reduce our in-house energy use
toward attaining our 2030 interim goal of achieving carbon neutrality in terms of theSanki Engineering Group’s GHG emissions.
In April 2022, we signed a power purchase agreement (PPA) for the Sanki Techno Centerand Sanki Yamato Building, both assets owned by the Company, to switch to electricity
sourced from net-100% renewable energy. We also completed the agreements for theconversion to 100% renewable energy-sourced electricity for our Kansai Branch in Septemberof the same year, and for St. Luke’s Tower, where our head office is located, in April 2023.
We are also steadily replacing heat source and other equipment at the Sanki Techno
Center and Sanki Yamato Building with energy-saving models. Furthermore, we willaccelerate our efforts to decarbonize our operations through such measures as thesolar power generation PPA project, which will be implemented across the Yamato Site,including the above facilities, in February 2024.

Scope 32050

Sanki Engineering Group’s GHG Emissions*

Upstream

Scope 1, 2

Growth Strategies and Sustainability Management

The Sanki Engineering Group has positioned contributing to a carbon-free society as one of its materiality (key issues) and iscommitted to achieving carbon neutrality by 2050. Given that climate change is directly connected to our business as a total
engineering company, we are working to reduce CO2 emissions in all areas of our business operations, including our supply
chain, while also promoting energy conservation and energy creation proposals to our customers. To further accelerate ourefforts, we are bolstering our SANKI YOU Eco Contribution Point system, which converts the reductions in CO2 emissions
that customers have achieved based on our proposals into points as a means of supporting environmental conservation
activities. These initiatives will expand the scope of carbon neutrality.

Signing ceremony at the Wakayama PrefecturalGovernment officeEmissions from In-house Activities
Scope 1

Scope 2

Target2025-40%

Reduction targets for Scope 1 and 2 emissions
Reduction measures•I ntroduce electricity sourced fromrenewable energy•I nstall solar power generation and otherfacilities
2020

TargetNet zero
2025

2050

*Refers not only to emissions by the business operator itself but also to the total volume of all emissions
related to its business activities, and are classified into Scope 3 emissions (upstream) + Scope 1 and 2emissions (in-house) + Scope 3 emissions (downstream). Of the 15 categories under Scope 3, “11. Use of soldproducts” accounts for approximately 90% of greenhouse gas emissions by the Sanki Engineering Group.

2020

Scope 1, 2CO2 emissions
Scope 3CO2 emissions
Reduced CO 2emissions by theSANKI YOU EcoContribution
Point system

-40 %
-10 %
+30%

2030

2050

Sanki Engineering Group’s
GHG emissions
Carbon neutrality

Toward Carbon
Neutrality

Scope 1, 2

Scope 1, 2, 3

Signing ceremony at the Shinrin Taiken Kouryu
Center, Ritto City

2022
Thoroughly implement energy conservation activities and invest in decarbonization facilities

Scope 1, 2Reduction measures

Convert to electricity options sourced from renewable energy at in-house facilities, maintain private power

generation facilities (including Power Purchase Agreement (PPA) projects)

Convert to electricity options sourced from renewable energy at each business site
Promote decarbonization of construction sites
Purchase carbon credits

30

Scope 3

Promote development of decarbonization technology

Reduction measures

Promote the SANKI YOU Eco Contribution Point system

SANKI REPORT 2023

SANKI YOU Eco Contribution Point System
Now in its 12th year, the Sanki Engineering Group’sSANKI YOU Eco Contribution Point system contributes,
along with our partners, to preventing global warming
and realizing a sustainable society. We will continue topromote CO2 reductions through the system toward
our fiscal 2025 goal of reducing CO2 emissions by atleast 30% compared to the three-year average fromfiscal 2018 to fiscal 2020.

SANKI REPORT 202331