Disclosure Based on the TCFD Recommendations

Introduction

As a company engaged in reproductive medicine, Kitazato Corporation recognizes climate change as a significant management issue that may have a material impact on its business operations, supply chain, and production systems.

As “Happiness, for the Next Generations”, we promote information disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to fulfill our responsibility toward a sustainable society and the global environment.

1. Governance

Kitazato positions climate change–related initiatives as an important management issue at the executive level.

Promotion Framework

• The Sustainability Committee, chaired by the President and Representative Director, convenes twice a year to deliberate on important matters, including responses to climate change
• The outcomes of these deliberations are reported to the Board of Directors, which provides oversight
• The manufacturing division measures environmental impacts and updates improvement plans annually, reporting progress to the Committee

2. Strategy

We organize the impacts of climate change on the field of reproductive medicine into both risks and opportunities, and analyze them based on two scenarios: a 1.5°C scenario and a 4°C scenario.

1.5°C Scenario (Transition to a Decarbonized Society)

4°C Scenario (Increased Physical Impacts from Frequent Disasters)

Opportunities Arising from Climate Change

• Cost reductions through the use of renewable energy
• Enhanced supply chain competitiveness through increased recognition of environmental initiatives
• Improved corporate value through higher ESG ratings, leading to advantages in investment, recruitment, and other areas

3. Risk Management

Kitazato systematically manages risks related to its business operations.

• In accordance with the Risk Management Regulations, we identify risks, including climate-related risks.
• Risk matrix evaluations conducted based on significance (impact × likelihood)
• Development of action plans for material risks and progress management by the Committee
• Implementation of corrective measures and investment decisions, as necessary

4. Metrics and Targets

Greenhouse Gas Emissions (Scope 1 and Scope 2)

• FY2030: A reduction of 20% or more compared to FY2023 (Company target proposal)
• Phased expansion of the use of renewable energy
• Evaluation of CO₂ reduction effects as a criterion for equipment updates

Supply Chain Emissions (Scope 3)

• Visualization of emissions related to logistics, packaging materials, and raw materials
• Promotion of reduction initiatives in collaboration with suppliers
• FY2030: A reduction of 20% compared to FY2023 (Company target proposal)

Other Key Performance Indicators (KPIs)

• Volume of waste reduction
• Energy-saving improvements
• Number of BCP training sessions held
• Implementation rate of environmental education