Item

Summary of Risks and Opportunities

Introduction of carbon

Project costs will increase with the introduction of carbon taxes

pricingand other carbon pricing.

Countermeasure

Impact・Promote our own energy conservation and decarbonization initiatives.

Risk

・In the future, we will work with suppliers to reduce greenhouse gas
emissions.

Risks are present, but can behandled.

・Implementing CCUS in municipal solid waste treatment plants andStrengthen regulations Climate change measures have become a requirement forand policies related tomunicipalities to bid, and progress toward a decarbonized society

CO2 emissions

will affect order opportunities.

Opportunities

Regional Circular and Ecological Sphere.

Risk

Law

The government's energy mix policy and the growing preference for
Changing energy mix

Review of FIT/FIP andother renewable energy
introduction support

scenario・Steady reduction of greenhouse gas emissions from our businessactivities.

Policy and＜2℃

other initiatives aimed at decarbonization and the realization ofprograms

renewable energy will further increase demand for biomass power

By responding to risk, business
opportunities expand.

・Expansion of the quality and quantity of internal resources to meet

Opportunities

increasing demand.

generation and high-efficiency waste incineration power

・Continuous enhancement of R&D/engineering capabilities throughgeneration, which are our main products.

the use of digital technology.

Business opportunities expand.

・Maintain and expand market presence in small- and medium-sized
Demand for biomass power plants will decrease as incentives tointroduce renewable energy for biomass power generation arereduced due to the revision of biomass fuel standards.

biomass power generation, where the impact of fuel regulations isRisk

relatively limited.
・Capture demand that is not dependent on FIT/FIP, such as fuelRisks are present, but can behandled.

conversion of industrial boilers.
・Strengthening of treatment methods that do not depend on
incineration, such as biogas recovery plants and material recycling,

Further strengthening of 3R (Reuse, Reduce, Recycle) initiatives
will reduce the amount of waste to be incinerated, thereby

Risk

reducing the demand for waste incineration plants.
marketIncreasing needs for strengthening ties with local industries(agricultural facilities, industrial parks, etc.) through the supply ofsteam, hot water, electricity, etc., and as a disaster prevention

Opportunities(Chronic)

Business opportunities expand.

・Development of decarbonization-related technologies such as CO2
Demand for solutions to achieve carbon neutrality (hydrogen powergeneration, ammonia power generation, CCUS, etc.) will increase.

Opportunities

management technology and carbon-free technology.
・Realization of technologies necessary for decarbonization andRiskrealization of Regional Circular and Ecological Sphere, such as
implementation of CCUS in municipal solid waste treatment plants.

technologies

Risk

needs and changes in the business environment.
・Establish new business schemes and strategic partnerships.

Diffusion ofPhysicalhandled.

・Provide optimal solutions that accurately grasp diversifying customer

center.

energy-saving

Risks are present, but can be

maintenance, operation and management, O&M, etc.

customer needs

technology renewable energy, andnot decline sharply by 2030).
・Reinforcement of recurring revenue model businesses such as

Changes in society anddecarbonization,

based on market trends (although demand for incineration facilities will

Increase of average

Decrease in work efficiency of employees, workers, etc. due totemperature

heat stroke, etc.

Risk

By responding to risk, business
opportunities expand.

・Reduce outdoor work time and improve efficiency through the use ofdigital technology, drone technology, etc.

Risks are present, but can behandled.

4℃
scenario

・Promote standardization and sharing of parts and equipment.
Physical
Risk(Acute)Intensification ofextreme weather

Frequent and severe torrential rains and typhoons will causedelays in material procurement and construction, which will affectproject costs, including the impact on the construction period.

Maintaining an appropriate stock of parts, materials and equipment

Risk(utilization of Supply Lab).
・Strengthen BCP measures, including risk hedging through insurance
and contracts.

Risks are present, but can behandled.