Disclosures Based on Recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD)
Asahi Holdings' initiatives to address climate change
Since its establishment in 1952, the Asahi Holdings Group has developed its business activities to protect the global
environment with the purpose of being "Totally Committed to Protecting the Natural Environment and Preserving
Resources," and with the aim to be a leader in creating a circular economy that connects society to the environment.
We are achieving both business growth and the solutions to social issues.
Climate change is a common challenge for humankind, and we believe it is one of our business materiality themes. Inorder to achieve a sustainable society, we will contribute through business activities and reduce our own CO 2 emissions.

Expressed to Endorse the TCFD and Strengthening the Governance System
In December 2021, we expressed our endorsement for therecommendations of the Task Force on Climate-Related FinancialDisclosures (TCFD) and established a cross-company team for TCFD
consisting of Business Unit, Technical Unit, and Administration Unit inorder to identify risks and opportunities related to climate change andunderstand the medium- to long-term impact of climate change on ourbusiness, and have considered the countermeasures.
Furthermore, to strengthen the sustainability promotion system, theprevious SDGs Promotion Committee has been expanded and will besupervised by the representative director, Representative Director,President & CEO president, changing to a Sustainability Committee
consisting of directors in charge of the Business Unit, Technical Unit, andAdministration Unit (April, 2022). The Sustainability Committee deliberates
on sustainability strategies, plans, policies, risk management, andmonitoring on a quarterly basis. Important matters will also be reported
at the Group Executive Committee. Climate change-related issues havebeen addressed in the SDGs Promotion Team, but will be addressed in theClimate Change Working Group.
The Board of Directors shall be informed of the matters discussed by
the Sustainability Committee, and important matters shall be resolvedby the Board of Directors to ensure effective governance. The risks andopportunities identified in the TCFD actions will be reported to the Board ofDirectors and the Sustainability Committee at least once every year.

Group ExecutiveCommittee

Board of DirectorsReporting /Submission

Supervision /Instruction

Reporting

Sustainability Committee
Chairperson: CEO Members: Directors in charge of Business Unit,
Technical Unit, and Administration Unit

Group Risk
ManagementDepartment
ReportingCorporate Planning &Communications Department,
Sustainability Committee Secretariat

Diversity & Inclusion
Working Group

Consolidated
subsidiaries
in Japan

Climate Change
Working Group

Each Unit

Consolidated
subsidiaries
outside Japan

Results of Scenario Analysis
The 4°C scenario is a world where the current situation continues on, and we found that there would be little impact as of 2030. On theother hand, as we move toward 2050, we anticipate an increase in physical risk: the intensification of natural disasters such as cyclones
or floods caused by abnormal weather.
In addition to formulating business continuity management (BCM), we are also taking actions such as selecting a location that is strong
against disasters when a plant is moved.
In the 1.5°C scenario, strong policy measures are expected to be taken to achieve carbon neutrality in the mid-century. One of theserisks is the introduction of carbon pricing including carbon tax. Being affected by cost increases will become a risk, especially in theenvironmental preservation business. On the other hand, in the precious metals business, it is likely that the evaluation of recycled
metals with relatively low CO2 emissions and their cost superiority will increase. This is an opportunity for the company, which has
strengths in the production and traceability of recycled precious metals. In the environmental preservation business, the shift from
simple incineration to thermal recycling during the transition to decarbonization will be an opportunity for our company which has
already been addressed. The expansion of recycling demand, including the expansion of the target product, will provide an opportunity
to take advantage of our strength in consulting sales (proposal-based sales).
While reducing risk, we will focus on expanding opportunities.

Risk Management
The Climate Change Working Group will compile the status of responses to risks and opportunities related to climate change and CO2emissions. The Sustainability Committee will monitor and evaluate them each year. The Board of Directors will also be informed of thecontents for supervision and direction. Also, by reporting it to the Group Risk Management Department, it will be reflected in the overall
group risk management.

Metrics and Targets
One of our business materiality themes is to reduce CO2 emissions. Accordingly, we have set the following targets:by 50% (compared to FY2015) by FY2030

Extraction of Risks and Opportunities
We extracted risks and opportunities relevant to climate change that will affect our precious metals business (domestic and North
American businesses) and environmental preservation business in 2030. We qualitatively assessed them on three levels: "Large","Medium", and "Small". At that time, we also considered the further impact of climate change from 2030 toward 2050. As a result,"Policy and Legal," "Market," "Technology," etc. were identified.
ItemOpportunities

In the next place, we conducted a scenario analysis to investigate the impact on the business. We adopted two scenarios. One is thatthe global average temperature is expected to increase by around 4°C by 2100, and the other is that the global average temperature isexpected to increase by 1.5°C by 2100, compared to that before the industrial revolution. The analysis was based on the World Energy
Outlook 2021 by the International Energy Agency (IEA), the reports by the Intergovernmental Panel on Climate Change (IPCC), and othermaterials published by the Japanese government.

● Reduce CO2 emissions from energy sources, such as electricity and gasoline,

StrategyRisk

Summary of Scenario

Contents

2030
4°C

1.5°C

2050

In order to achieve the target, we are moving forward with switching to CO2 free electricity, reducing fuel usage, and making ourbusiness offices ZEBs (Zero Energy Buildings). We have also declared that we will aim to become carbon neutral in FY2050 (targets areScope 1 and Scope 2).
Although we recycle industrial waste that can be recycled in our environmental preservation business, it is also true that there aresome things that must be incinerated to ensure proper disposal, such as reduction and detoxification. Therefore, we will first focus onachieving our energy-derived CO2 reduction target.

Measures

Recommended
disclosures

Situation of efforts / Action policy· Deliberating on climate change issues at the management level in the Sustainability Committee, which is chaired by CEO, andconsists of directors from Business Unit, Technical Unit, and Administration Unit
· Having established the Climate Change Working Group under the Sustainability Committee to promote measures for climatechange· Building a system to supervise the matters discussed by the Sustainability Committee at the Board of Directors

Transition
risks

PolicyandLegal· Increased costs due to theapplication of carbon pricing(including carbon tax)

-Large· Switching to CO 2 free power, replacing gasoline
cars by EVs and so on to achieve CO 2 reduction
targets for FY2030.

GovernancePhysicalrisks

Acute· Intensifying natural disasters,such as cyclones or floods, causing
damage to the facility and longterm operation stop--· Expanding BCM at plants that are expected tohave an impact based on the hazard map· Selecting disaster-resistant locations and implementing
measures for disaster on large-scale capital investment

Strategy-Large· Strengthening value-added sales of recycled
metals utilizing traceability· Strengthening consulting sales that add value,such as CO 2 emissions analysis· Expanding business by supporting companies
that struggle to comply with regulations· Conducting scenario analysis of risks and opportunities related to short-, medium- and long-term climate change at 4°C and 1.5°C· Setting "Reduction of CO 2 emissions" as one of our business materiality themes

PolicyandLegal· Recycled metals with relatively low
CO 2 emissions will be highly regarded
and increase its competitiveness withthe application of carbon pricing· Compliance with regulations andenhancing reporting of CO 2 emissions

Risk Management· Reporting the progress of measures on risks and targets extracted from scenario analysis, etc. to the Sustainability Committee
and the Board of Directors on a regular basis.
· Incorporating the reported matters into the overall group's risk management system by reporting it to the Group Risk
Management Department

Market· Increase in recycling demand andtarget products-Large· Expanding consulting sales in the field ofmaterials and chemical recycling· Handling of low-grade scrap and expanding
metals to handle· Expanding the incentive to aim foraccelerating the development of technologies
that contribute to decarbonization such ashydrogen, and early commercialization

Metrics and Targets-· Has already set a target of reducing energy-derived CO 2 by 50% from the FY2015 level by 2030, and has already declared that itwill achieve carbon neutrality in 2050 (Scope 1 and Scope 2)· FY2020 Reduction in energy-derived CO 2 (- 12% compared to FY2015)· Scope 1 emissions are 84,780 t CO 2 and Scope 2 emissions are 17,894 t CO 2

Transition
risks

TechnologyMedium（4°C）· Further promoting the utilization of hydrogen withsurplus power, etc.

(Reduction rate in energy-derived CO2 emissions in FY2021 and CO2 emissions (Scope1, Scope2) results will be disclosed in conjunction with Scope 3 after completing the aggregation)