July 13, 2023
To Whom It May Concern,
Company Name
RepresentativeInquiries

Toyo Denki Seizo K.K.
Akira Watanabe,President, Representative Director(Stock Code: 6505 TSE Standard)
Jun Nukina, Operating Officer, GeneralManager, Management Planning Division
Tel.: +81-3-5202-8122

Announcement on Expression of Support for TCFD Recommendations and Information Disclosure
Recognizing that responding to climate change is an important management issue, Toyo Denki Seizo K.K. (hereinafter“Toyo Denki”) expressed its support for the Task Force on Climate-Related Financial Disclosures (TCFD)*
recommendations in June 2023. We also announce that we have determined to disclose information based on the TCFD
recommendations.
We will continue to promote efforts to address climate change issues and strive to disclose appropriate information inorder to realize a sustainable society.
*TCFD (Task Force on Climate-related Financial Disclosures)
At the request of the G20, the Financial Stability Board (FSB) created the TCFD in 2015 to study how to disclose climate-related
information and the responses of financial institutions. The TCFD recommendations relate to disclosure of information on governance,strategy, risk management, and metrics and targets.

Information disclosure based on TCFD recommendations
In June 2023, Toyo Denki expressed its support for the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD). The TCFD recommendations relate to disclosure of information on governance, strategy, risk
management, and metrics and targets. With this endorsement, we will further promote our initiatives to address climatechange issues and make efforts to disclose appropriate information in order to realize a sustainable society.

1. Basic idea
At Toyo Denki Group, our long-term vision is to realize a social and industrial infrastructure that is friendly to the global
environment based on our outstanding motor drive technology. The Group’s mission is to provide a wide and stablesupply of environmentally friendly and high-quality products and services in Japan and overseas, and to support socialand industrial infrastructure. We believe that this is the sustainability that the Group aims for. In order to fulfill our mission,
we will assume risks and opportunities arising from climate change, assess its financial impacts on the Company’soperations, take appropriate measures, and enhance information disclosure to realize a sustainable society and enhance
corporate value.

2. GovernanceIn order to promote the Group’s sustainability management, we have established the Sustainability Committee topromote company-wide initiatives based on our sustainability policy. The Committee, which is chaired by theRepresentative Director and President, is held quarterly in principle with each Operating Officer in charge as the mainmembers. We regard climate change as a particularly important theme, set quantitative targets for reducing greenhousegas (GHG) emissions, and monitor the progress through the Committee. Contents of discussions at the Committee arereported to the Board of Directors and reflected in the Group’s management strategy.

3. Strategy
Assuming risks and opportunities associated with future climate change, we analyzed the impact on our businessactivities using two scenarios: 1.5°C/2°C or lower, and 4°C. As for the time horizon, while focusing on the long term (to2050), we also assumed the middle term (to 2030) as a transit point. The degree of financial impact on our businessactivities was assessed on a three-point scale: Large, Medium, and Small.

Outlook on theworldReference
scenario

1.5°C/2°C or lower scenario

4°C scenarioSociety as a whole will promote low
carbon emissions, achieving certain results
in reducing the temperature rise. Demandfor energy-saving and environmentallyfriendly products will increase. Transition
risks such as regulations, markets andreputation rise.
SSP1-1.9, SSP1-2.6 (IPCC AR6)
NZE2050 (IEA)

Prioritizing economic development, thetemperature rise will not stop, and thiswill worsen the effects of climate change.
Low carbon emissions will not berealized and physical risks such as
extreme weather events will increase.
SSP5-8.5 (IPCC AR6)

For assumptions regarding specific climate-related risks and opportunities, please visit our website.
https://www.toyodenki.co.jp/esg_csr/pdf/tcfd_strategy.pdf

4. Risk management
In the Group, the Sustainability Committee recognizes climate-related risks, deliberates on countermeasures, andmonitors the progress. Since the impact of climate change will appear over a medium- to long-term time horizon, therelevant divisions draw up a sustainability roadmap, implement specific countermeasures, and regularly report theprogress to the Committee, in addition to the annual business plan and medium-term management plan. Moreover, inorder to incorporate sustainability issues into company-wide initiatives, the Sustainability Working Group, which isorganized by working-level employees from each business division and the Administration Division, discusses andprovides ideas. Contents discussed at the Sustainability Committee are reported to the Board of Directors.

5. Metrics and targets
To curb global warming, Toyo Denki has set the following targets for reducing CO 2 emissions associated with its
business activities.
Scope 1 & 2CO2 emissions(Compared withFY2018)

FY2026 targets

FY2030 targets

FY2050 targets

10% reduction

30% reduction

100% reduction