Information disclosure in line with TCFD recommendations

Kumiai Group has grown through its core business of agricultural chemicals, which are indispensable for agriculture, with the main theme of "protecting and nurturing life and nature.“ Our business is closely related to the natural environment, and responding to climate change caused by global warming is an important issue for ensuring the sustainability of the company's management base.
We view the adverse effects of climate change, including natural disasters such as torrential rains and floods associated with global warming, and heat waves and droughts caused by rising temperatures, as business risks, and we strive to work toward a decarbonized society while also considering the aspect of opportunity of a new business in formulating our corporate strategy.
Kumiai Group supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and will proactively communicate our climate change initiatives in line with the framework of the TCFD recommendations.

The Sustainability Promotion Committee chaired by the Representative Director, President, formulates strategies on ESG issues, such as “mitigation of climate change and environmental impact” and “human capital development / human capital strategy based on the idea of human capital,” manages the progress of the action plan for each issue, and also formulates information disclosure strategies. Important matters discussed by the Sustainability Promotion Committee are reported to the Board of Directors for decision-making and oversight.
For risk management, we identify risks and opportunities recognized by Kumiai’s divisions, and also identify issues by referring to the recommendations of external organizations such as TCFD, as well as climate-related risks and opportunities recognized by other companies in the same industry. The degree of importance of each issue identified is determined by conducting impact assessments, taking into account the financial impact. Risk issues identified are discussed once a year by the Risk Management & Compliance Committee, a company-wide committee, and measures to address the issues are determined.

Kumiai Group set FY2019 as the reference year, and set reducing Scope 1 and 2 GHG emissions by 30% compared to FY2019 by FY2030 as our target. (Seven key Kumiai Group companies are within the scope.)
As a specific initiative, in FY2023, we introduced CO₂-free electricity at factories and research institutes step by step. By promoting fuel conversion from heavy oil to fuels with lower GHG emissions, we are continuing to reduce GHG emissions from our business activities.
Regarding the progress to date toward achieving the reduction targets, we believe that Kumiai Group is making good progress in reducing GHG emissions, because net sales for FY2023 increased by approximately 5% compared to FY2019, but our GHG emissions decreased by approximately 13% compared to FY2019. Through continuous efforts to reduce environmental impacts, we will strive to achieve the targets and disclose related information.

Kumiai Group will continue its efforts to mitigate and adapt to climate change, including through the ongoing reduction of GHG emissions.
We conduct scenario analysis to identify the Kumiai Group’s risks and opportunities with respect to climate change. Through scenario analysis, we have set the “safe, secure, and prosperous society” scenario (called the 1.5℃ scenario) that we aim to achieve and the “unsustainable society” scenario (called the 4℃ scenario) where social issues such as climate change worsen, and have evaluated the impacts of risks and opportunities on Kumiai Group. Measures for major risks and opportunities that have a large impact are being examined. The contents of these examinations are reported to the Sustainability Promotion Committee, and Management, including the Representative Director, President, then discuss climate change risks and opportunities.