MATERIALITY 3ECOSUSTAINABILITY
Eco-Sustainability at Wacom
From the launch of the ESG Task Force to environmentalfriendly development, manufacturing, and logistics, let’s takea look at the various environmental initiatives that “Technology
Leadership Company” Wacom has been promoting.

2
In-house
Scope 1
Scope 2

Upstream
Scope 3

Downstream
Scope 3

Our sustainability initiatives

Moving towards Implementing Product LCA

In Mechanical Technology, we’ve been focusing our attention on
environmental sustainability from a planning and developmental
perspective, and we’ve put together a mid- to long-term roadmap to1
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address the issue. Currently, we are working on the applications of
eco-friendly products, which is the first part of the final step as defined
therein. More specifically, this includes things like increasing our usageof PCR plastic and recyclable aluminum, and we’ve set a goal formaking these a regular part of our product lineup by around 2025.

Fuel usage

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1

What Wacom Can Do to
Define an Eco-friendly Sustainable World

We’re also moving towards designing our products with an eye on LCA,
and soon we hope to be assessing the environmental impact of ourElectricity
usage

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Back in 2019, Wacom launched
an ESG Task Force to improveexternal ESG evaluations. With thisas a starting point, Wacom began
disclosing its recycling efforts andenvironmental performance in addition
to its ISO certification information andquality and environmental policies. In
the process, the Task Force worked
to disclose the company’s GHG(greenhouse gases) Scope 1 and 2
data and has realized it, followed by
the Scope 3 data pertaining to GHG
indirectly emitted from the company’s
activities by March 2023.
In addition to these disclosure
efforts, Wacom announced its
participation in the JCI (Japan Climate
Initiative) in April 2021. The current
plan is to achieve a 48% reduction
by 2030 (a decrease of about 4% peryear) compared to 2014.
Wacom’s environmental disclosure
score by global environmental nonprofit CDP was a “D” as of 2019, but
has been raised to a “C” in 2020 andbeyond. This means that Wacom hasachieved the same level as the global
average, the Asian region, and theelectrical and electronics sector. In
this way, Wacom’s commitment andplans for GHG emissions reduction
and other environmental issues havesteadily led to the attainment of a
fitting external evaluation.

① Purchased products & services⑦ Commute④ Transportation & delivery⑪ Product usage⑫ Product disposal

Takenori KANEDA

Hidemi TOMITSUKA
Senior Manager
Regulation & ISO Group
Quality Engineering
Quality Assurance

Wacom’s digital pen and ink wereintended to replace paper and pensfrom the very start. In other words,
we believe that from a perspective of
reducing paper consumption, there isplenty of potential for the proliferationof Wacom products to contribute to
reducing the environmental footprint.
As for corporate activities, the latest
flagship model, the Wacom® Cintiq®

products and services quantitatively throughout their lifecycle (resource
extraction—raw material processing—production—distribution &consumption—disposal & recycling).
In line with the emergence of new materials such as bioplastics, wewould like to build a framework where Wacom is using eco-friendly
materials in many ways, and we would also like to collaborate with
universities to promote research on biomaterials in the future.

Executive Mechanical Technologist
Head of Mechanical Technology

For the latest environmental performance data, please visit
the “Eco Initiatives” page on Wacom’s official website.
https://www.wacom.com/en-jp/eco-initiatives

Greenhouse gas (GHG) Scope 3 emissions (as of 2021)
Category

CO2 Emissions (t-CO2 )1. Purchased goods and services

764,349

2. Capital goods

4,472

3. Fuel- and energy-related activities(not included in scope 1 or scope 2)

191

Pro 27, uses PCR plastic (recycledmaterial), improves transportation
efficiency by reducing product weightand packaging volume, which alsouses eco-friendly packaging materials.

4. Upstream transportation and distribution

2,115

5. Waste generated in operations

6*

6. Business travel303

And as for the office environment,
Wacom has begun to introduce
renewable energy and has created
e-Learning materials for implementing
online courses that raise environmental
awareness among team members.
Looking to the future, Wacom’s
upcoming environmental activities
include setting standards andguidelines for the company’s definitionof eco-friendliness, conducting
product life-cycle assessment

7. Employee commuting

439

8. Upstream leased assets－

9. Downstream scope 3 emissions 9.
Downstream transportation and distribution－

10. Processing of sold products－(LCA), and conducting third-party
assessments of GHG emissions.

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The Daily Environmental Effortsof Own Factory Production Lines in Japan

The production line at our main factory where the main components of our
EMR digital pens used by Branded Business are manufactured is pouring
daily effort into conserving resources and reducing waste.
To raise an example, we had set an environmental goal under ISO 14001
to lower the defect rate (held to our own standards of responsibility) to under3 ppm (parts per million) by curbing errors and preventing waste loss ofmaterials in our operations.
As of January 2023, we’ve achieved 0 ppm with no defects (held to ourown standards of responsibility). We will continue our efforts to reduce waste
loss by maintaining this rate. Further, we have begun the adoption process
for “Sainokuni Furusato Electric Power” as of November 2022, which has
resulted in zero CO2 emissions at the head office including the factory area
in Saitama Prefecture.

11. Use of sold products

25,476

12. End-of-life treatment of sold products

240

13. Downstream leased assets－

Tadashi OHASHI

14. Franchises－

Manager
SCM In-house Manufacturing

15. Investments－*5. Waste from projects is calculated only from Japanese figures

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The Challenge of Reducing
CO2 Emissions through Logistics

Environmental Initiatives Responding to
OEM Customer Requests

Technology Solution Business is taking a proactive role when it comes to launchingWe, the logistics team, are working alongside our logistics partners ineco-friendly initiatives in response to various requests from our OEM customers.

the name of reducing emissions of CO2, which is a GHG, and together

One such initiative involves us working together with an aluminum manufacturer in

we’ve begun efforts to determine the extent of our CO2 emissions.
Regarding CO2 reduction, in principle, Wacom products aretransported overseas by boat. Nevertheless, the transportation by air is

China to develop recycled aluminum out of the re-melted scraps and waste materials
from their factory processes. We are currently working on making some prototypes of pen

sometimes unavoidable when on time delivery to our customers is our

body made of 75% to 90% recycled aluminum.
We are also developing PCR plastic in collaboration with a Chinese plastic manufacturer

primary objective, and in such cases, we are making efforts to load ourand moving towards changing the material of packing bags from PE (polyethylene) to

products more efficiently.
On top of that, to up the level of environmental consciousness
with our logistics partners, we are encouraging to introduce eco-

PBAT + PLA (biodegradable plastic).
Our current activities are directed at the products of our OEM customers, but we arefriendly vehicles for domestic deliveries, and improving the efficiency

working hard to build new supplier relationships for future collaborations in the hopes thatof allocating vehicles by arranging deliveries through large-scale

our branded products will also use these materials someday soon.

Ben WANManager
Sourcing
Wacom China Corporation

centralized facilities. One of the partner warehouses uses the uniforms
made from recycled plastic bottles.

Atsuko YODA

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Director
Branded Logistics Branded Business SCM

Kenji
YOKOYAMA
Director
Environment & Certification
Quality Engineering
Quality Assurance

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How the Flagship Model
Addressed Environmental Issues

In the development of Wacom Cintiq Pro 27, we were consciousof the idea of responsible consumption and production (SDG #12) inorder to keep up with the shift in our society’s values to one where
sustainability and SDGs have become major topics. We believe that in
the future, LCA and the question of how we make things will become
an important mode of thought.
To give an example, we replaced plastics made from petroleum withthose made from vegetable materials and increasing the ratio of PCR
plastic with the cooperation of suppliers and team members in theengineering department. Although it is difficult to express quantitative
measurements by environmental aspects, we’ve also adopted astructure that allows for users to depend on a single pen that can

Examples of eco-friendly initiatives under Wacom Cintiq Pro 27
1. The Introduction of lightweight products and downsized packaging
Main Unit: Product size has been reduced by approximately 20% compared to theprevious model (Wacom Cintiq Pro 24). Package has also been reduced in size by
33% (in volume), resulting in a 33% increase in transportation efficiency.
Stand: 52% lighter than the previous model (Ergo Stand 24). Package size has
also been reduced by 70% (in volume), tripling the transportation efficiency.
2. Application of recycled plastic and metals
Main Unit: Main plastic components such as chassis use recycled plastic.Weightof recycled plastic accounts for 59% of total plastic weight.
Stand: Main components use metal out of consideration for sturdiness and easeof recycling. Recycled plastic is used for plastic components. Recycled plastic
accounts for 58% of total plastic weight.

be recombined with modules to meet their individual needs without
developing several types of pens. We believe that these approaches
have led to efficiency improvements in various prospectives, has also
given users more freedom to personalize their experience, and we coulddeliver "the model that can be tailored to each individua preference".

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Collaborating with Suppliersfor Water Conservation

The major suppliers of printed circuit boards (PCBs) used in Wacom’s
products are located in China, and they strictly comply with wastewater
treatment standards under the “New Industrial Wastewater Standards”
established by the Ministry of Ecology and Environment under the
direct control of the government. Wacom also confirms that all of the
PCB supplier plants have “wastewater permits”. In addition, Wacom
voluntarily inspects the plant’s wastewater facilities and flow conditions
to ensure that wastewater containing hazardous substances is properly
managed and treated.
It seems that there are only a limited number of PCB suppliers as ofyet that have established wastewater flows that are both eco-friendly
and conscientious about water conservation in accordance with various
regulations, Wacom would like to continue this effort in the future.

Naoya NISHIZAWA
Director of Design
Technology & Experience

Understanding Disseminating
the “Wacom Suppliers Code of Conduct”

As part of the company’s responsible procurement efforts, Wacom
has established the “Wacom Suppliers Code of Conduct” based on
the RBA Code of Conduct formulated and issued by the Responsible
Business Alliance (RBA).
In addition to our suppliers’ own self-spurred CSR activities, we
ask their own supply chain and subcontractors (including companies
who dispatch temporary employees) to endorse and abide by the
Code of Conduct in accordance with the guidelines provided byeach item therein. Beyond that, we conduct credit checks, quality
and environmental system surveys, and factory inspections for new
suppliers to promote understanding and ensure compliance. We also
distribute the latest version of the “Wacom Suppliers Code of Conduct”
to our main suppliers to promote understanding of our ESG initiatives.
To top it off, Wacom conducts environmental audits of new suppliers
and major suppliers to ensure that products do not contain hazardous
substances prohibited by our customer requirements or under the lawsof the countries in which they are sold.

Number of environmental audits performed(primarily hazardous substance control)

7

FYE March 2023

3

FYE March 2022

1

FYE March 2021

23

FYE March 2020

25

FYE March 2019

Kenichi OKAWAManager
Sourcing

27

FYE March 2018

0

10

20

30

Note: The number of cases decreased from FYE March 2021 to FYE March 2023 due to the
COVID-19 pandemic.

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MATERIALITY 3

TCFD Disclosure

CategoryTime
period・Increase in operating costs due to the introduction ofcarbon pricing including a carbon tax

Risk・Increase in indirect costs due to the price pass-throughresulting from the implementation of cross-border carbon
taxes and the introduction of carbon taxes for contracted
manufacturing and transportation partners

Changes in energy
costs・Increase in electricity costs due to conversion to
renewable energy

Changes in customer
behaviors

Classification

Item

Information Disclosure Based on the TCFD Recommendations(as of May 31, 2023)
Carbon pricing

1. Purpose
Migration
risks

Wacom recognizes climate change as an important consideration in striving toenhance sustainable corporate value and contribute to the realization of asustainable society. We expressed our support for the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD) on April 13, 2023.
Based on the TCFD recommendations, we will promote information disclosure on

Governance Systemgovernance, strategy, risk management, and metrics and targets, and continue toBoard of Directors

enrich content related to sustainability.

2. GovernanceSupervision

Wacom has established an ESG Task Force to ensure that the Board of Directors

ReportIncrease in extreme
weather events

ESG Task Forceappropriately supervises and advises on important issues related to sustainability,
such as climate change. The ESG Task Force meets regularly to examine specificPhysicalrisks
Instruction

Reportsustainability policies and consider strategies, measures, and progress toward
environmental targets. Participants include the President and CEO, the CFO, theenvironmental management representative, the secretariat of the Compliance andopportunities—are reported annually to the Board of Directors, which includes
outside directors.

Rise in global averagetemperature<Impact assessment in the 4

scenario>

The analysis of the 4 scenario includes anticipated impacts such as
losses arising from direct damage to facilities and operational disruptions
due to increased frequency of natural disasters. It also considers theincreased cost of air conditioning due to rising average temperatures.

3. Strategy

The potential damage extends not only to our own facilities but also tocontracted manufacturing factories, with direct impact from extreme

Through the ESG Task Force, Wacom collects data and parameters necessary toweather events, particularly floods, being evaluated as significant risk
factors.
At the same time, the intensification of extreme weather and the impact

identify and assess climate change-related risks and opportunities and analyzes thedegree of business impact. In considering and analyzing the degree of impact andpotential countermeasures, we utilize scenarios published by the International
Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC),
and analyze the impact based on two different scenarios for the year 2030.

476

Scenario

1.5

Scenario

Priority on economic activity and passive
approach to climate change mitigation.

Society moves proactively to achieve
decarbonization.

Under this scenario, climate change-related
government policies and regulations do not
progress, resulting in a 4 rise in the average global
temperature by the end of this century comparedto the start of the industrial revolution. This will leadto further long-term changes in climate and anincreased impact from extreme weather events.

Under this scenario, policies and regulations arestrengthened with the goal of achieving carbon
neutrality by 2050, aiming to limit the global averagetemperature rise to 1.5 by the end of this century
compared to the start of the industrial revolution.
The decarbonization transition is supported by themarket through ethical consumption, technologicalinnovation, and other changes in consumer behavior.

(Reference Scenarios)
IPCC Fifth Assessment Report (AR5)RCP8.5 IEA WEO2021 STEPS(Reference Scenarios)
IPCC Fifth Assessment Report (AR5)RCP2.6 IEA WEO2019 SDS, NZE2050

Assessmentof rising temperatures could potentially lead to an increased demand for<Time period>
Short term: 0~1 year Medium term: 1~5
years(s) Long term: 5~10 years

1.5
scenario

Long
Term

-

Small

・Introduction of renewable energy
・Setting CO2 emissions targets
・Energy-saving measures such as switching to
LED lighting

Risk

Long
Term

-

Small*

・Promotion of renewable energy at contracted
partners

Risk

Long
Term

-

Small

・Energy-saving measures such as switching to
LED lighting
・Replacement with energy-saving facilities

・Increase in demand for environmental-friendly products
・Increase in demand for various pen tablets due topaperless promotion

Opportunity

Mediumterm-

Medium*・Development and sales of products with highenergy-saving performance
・Expansion of targets to educational settingsand businesses, etc.
・ Respond to customer needs for paperless・Direct damage to company bases due to floods or storm
surges・Damage due to suspension of business due to damage
to the base

Risk

Short
Term

Large

Medium trengthening resilience of stores and offices
・S
through BCP development
・Establishment of remote work systems

 amage caused by floods or storm surges to contracted・D
manufacturing partners that hold our inventories
・Damage due to suspension of business due to damage
to contracted manufacturing partners

Risk

Short
Term

Large*

Medium*・Evaluation of stable procurement methods
・Grasping the BCP measures across the entire
supply chain・Increase in remote work due to fewer opportunities to go
out

Opportun
ity

Long
Term

Small*

Small*

・Expansion of targets to educational settingsand businesses, etc.

Risk

Long
Term

Small

Small

・Introduction of high-efficiency air conditioning
systems

・Increase in air conditioning usage<Indicators for Impact Assessment>"Large", "Medium", and "Small" represent the impact evaluation outcomes. Evaluations marked with an asterisk (*) indicate qualitative results. Please note that theassessment of the impact for each event is described on an individual basis and does not take into account the interrelationships between them.

4. Risk Management

5. Metrics and Targets

Wacom has established a Compliance Risk

As part of our response to climate change, we participate in the Japan Climate
Initiative (JCI) and have set and announced an intermediate target for CO2 emissions
to be achieved by fiscal year 2030 in order to achieve carbon neutrality by 2050.
Considering early introduction of renewable energy, we aim to reduce CO 2
emissions by 48% by 2030 compared to 2014 as the base year, aiming to emit lessthan 715 t-CO2.

Committee, chaired by the Group CEO, to serve as

our products as web conferencing systems and similar solutions
become more prevalent. Moving forward, we will enhance resilienceagainst weather disasters through engagement with suppliers andconsider response measures through continuous review of our BusinessContinuity Planning (BCP) measures.

our risk management framework. The managers of<Impact assessment in the 1.5changes in predicted risks.The ESG Task Forcescenario>

In our analysis of the 1.5 scenario, we anticipate the main risk being
increased expenditures, including from the introduction of carbon taxes
and rising electricity prices. Based on an analysis of Wacom‘s businessmodel and actual CO2 emissions, we have determined that the financial
impact from these additional direct expenses is likely to be minor.
However, we have to anticipate price pass-throughs of additional
expenses arising from the introduction of border carbon taxes andsimilar impacts on contracted manufacturing and transportation
partners, resulting in an increase in indirect costs. We also recognize thepotential for increased demand for products which are energy-efficientand use environmentally friendly materials, and services that cater tosocietal and environmental concerns, such as ethical consumption. We
believe that the provision of products and services which meet theseneeds can create business opportunities. For example, if society as awhole goes paperless, we can anticipate increased demand for various
types of pen tablets across different fields, including enterprises, local
governments, educational institutions, and creative industries. Wacom
has been actively promoting the use of renewable energy and working
towards reducing CO2 emissions. Going forward, we will continue topursue these initiatives and consider additional measures.

Countermeasure4
scenario

Related Sections of Business Units, etc.

Risk Committee, and IR staff. Of the matters discussed by the ESG Task Force,
important subjects—particularly those related to management risks andMajor Risk & Opportunity

Our sustainability initiatives

each department, including our overseas
subsidiaries, are required to report to thiscommittee in the event of realized risks or material
identifies and evaluates risks related to climatechange issues. For related risks with a significant
potential impact on our company, the ESG Task
Force shares information and collaborates with theCompliance Risk Committee to ensure appropriate
management and supervision and minimize theirpotential impact on the Company. These activities
are regularly reported to the Board of Directors by
our Group CEO.

Activities to Reduce CO2 Emissions
In fiscal year 2021 our emissions amounted to 914 t-CO2, significantly lower thanour target of 1032 t-CO2, which had been revised from 1151 t-CO2. We achieved
this significant reduction through initiatives such as converting to LED lighting at ourhead office and implementing telework. While we have not set a specific target forour energy consumption rate, we will continue to disclose our actual performance.
For our CO2 emissions trend for fiscal years 2012 to 2021, please refer to ourenvironmental performance data, which we expanded in fiscal 2021 to include datafrom our overseas locations. We have now identified the majority of available data
sources and will add these to our disclosure as appropriate. Moving forward, we will
explore feasible measures to reduce CO2 emissions and consider setting global
targets.
From November 8, 2022, we began utilizing Sai no Kuni Furusato Denki (renewable energy from post-FIT sources) at
our head office in Saitama Prefecture. This is expected to enable achievement of zero CO2 emissions (Scope 2) fromour head office, which will be reflected in the environmental performance data for fiscal year 2022.
For the latest information on our environmental performance, please see Eco Initiatives on the Wacom website.
https://www.wacom.com/en-jp/eco-initiatives

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