CO2 Emissions Reduction (Climate change measures) Policy and Guideline The Fujikura Group formulated the 2025 Environmental Management Activity Guidelines. The guidelines set “achieving 45% renewable energy as a percentage of total energy in FY2030” as a CO2 reduction target aimed at the RE100 target and also made this a shared goal for overseas locations. FY2018 was re-established as the base year for calculating reduction in total CO2 emissions, as we set the goal of reducing total CO2 emissions in FY2025 by at least 350,000 tons/year (at least a 20% reduction compared to FY2018). We will obtain SBT certification in July 2023, and aim to reduce Scope 1 and 2 by 33% in 2030 (compared to FY2020) and Scope 3 by 15% in 2030 (compared to FY2020). Concept of the Base Year and Intensity Levels of CO2 Emissions Fujikura Group CO2 emissions are calculated by multiplying the energy used in each fiscal year for each type of energy by the CO2 emissions factor for each type of energy. Fujikura has complied with the use of market standard emissions factors indicated in the GHG Protocol Scope 2 Guidance. Conversion factor - Electric power in Japan: Adjusted emissions factors for electric power providers in the most recent year, published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry - Overseas electric power: Emissions factors by country, published by IEA - Fuel in Japan and overseas: Emissions factors for the most recent fiscal year published by the Ministry of the Environment Total GHG Emissions and Energy Usage Total GHG emissions in FY2022 amounted to 314,000 tons, all of which were CO2 emissions. Emissions in Japan totaled 117,000 tons, while overseas emissions totaled 197,000 tons. Offsetting of CO₂ by non-fossil certificates in Japan and abroad. ・Domestic: 0.44 thousand tons of FIT Non-Fossil Certificates ・Overseas: (Thailand)28,000 tons of I-RECs (China) 350 tons of Green power certificate Accounting for supply chain emissions (Scope 1, 2, 3) With the acquisition of SBT certification in July 2023, Fujikura has expanded the scope of Scope 3 calculation and disclosure from domestic groups to overseas groups*1. We have reviewed the classification of categories and are also calculating emissions for downstream categories that could not be calculated previously. "Category 11: Use of sold products*2" has the largest amount of emissions, but this is emissions due to power transmission losses from electric wires and cables sold by Fujikura Group companies. To make it easier to see the changes in Fujikura's Scope 1, 2 and main category emissions, we have created a graph that includes and excludes Category 11. *1 The accounting scope for the Fujikura Group was determined by applying the concept of GHG Protocol's dominance criteria to organizational boundaries. Therefore, the AFL Group's emissions are not included in the calculation. *2 Category 11 emissions due to power transmission losses are calculated from power losses due to the generation of Joule heat. For calculations, we use estimated values because it is difficult to obtain data on cable usage rates. Activity Results for FY 2022 In FY2022, we conducted activities with the goals of "reducing CO2 emissions by 8% or more compared to fiscal 2018" and "improving benergy consumption rate by 4% or more compared to FY 2020. In terms of energy conservation, we are continuing to develop company-wide activities and are contributing to reducing emissions. For measures that result in particularly large reductions, we share information and apply them at other locations to maximize the reduction effect. CO2 emissions for the entire Fujikura Group, including offsets by non-fossil certificates, were 314,000 tons, a decrease of 24.0% from FY 2018. The energy consumption rate improved by 1.5% compared to fiscal 2020, which was an improvement although the target was not achieved. Additionally, we have launched the GX Project as a new initiative for fiscal 2022. We have established six missions for the 2050 Zero Challenge, and the three functions in line with SBT certification are: (1) Reduction of CO2 emissions generated by the company, (2) Reduction of CO2 emissions generated in the value chain, and (3) Product life cycle assessment. We plan to proceed with these efforts. Activities in Transportation and Logistics Regarding the improvement of logistic energy consumption per unit of products associated with logistics activities, we aimed for a 2% improvement in FY2022 compared to the FY2020 actual value of 41.2KL/kiloton.In contrast, the actual value for FY2022 was 40.3 KL/kiloton, achieving the target with a 2.2% improvement. In FY2022, shipments across the Fujikura Group recovered, especially in the second half of the year, contributing to improved loading rates. As a result, the annual energy consumption rate improved by 3.3% from the previous year's actual value of 41.7 KL/kiloton. In addition, we are continuing to promote the efficient use of resources, and are promoting the reuse of packaging materials and wooden drums. Furthermore, we are actively promoting the use of a two-tier stacking jig (official name: electric wire drum pallet) that we developed to improve the loading rate. Reuse of Packaging Material and Wooden Drums Electric Wire Drum Palette Energy Conservation Initiatives Promotion of Ministry of the Environment Campaigns As a group of companies that is mindful of the environment, the Fujikura Group participates in the COOL CHOICE campaign for preventing global warming ahead of 2030 being implemented by Japan’s Ministry of the Environment. We are implementing active initiatives under this campaign. In addition, we also participate in the energy conservation and Cool Biz campaigns in the summer and Warm Biz campaign in the winter. Eco-tuning The Real Estate Company is working to reduce wasted electricity use and CO2 emissions through eco-tuning and return the cost savings to tenants and building owners. The eco-tuning touted by the Ministry of the Environment is a method of detailed analysis and diagnosis of the conditions of use for existing equipment and systems and pursuing energy conservation efficiently without sacrificing comfort and productivity. In FY2021, we reduced CO2 emissions by 43.8 tons by optimizing cooling water temperature, improving pump transfer efficiency, optimizing ventilation fan operation time, and changing elevator cooling temperature settings for one of the five Fujikura-owned rental office buildings. From FY2022 onwards, we will roll out these measures to the other four buildings, and also begin energy-saving measures based on unprecedentedly precise data in tenant-occupied areas, reducing CO2 emissions and improving energy-saving technologies. We continue to accumulate knowledge. Energy Conservation Initiatives at Business Sites At the Sakura Plant, energy was saved through efficient operation of compressors. At the Suzuka Woks, we improved yield and reviewed operating speeds, resulting in a significant improvement in basic unit production. At the Numazu Plant, a "holiday mode" (Mode to reduce device power consumption during holidays) was implemented in which boiler facilities were shut down on weekends, resulting in a 27% reduction in city gas consumption. Energy Conservation Initiatives at Group Companies In Thailand and Japan group companies, we apply holiday mode (a mode that reduces power consumption of equipment on holidays) for utilities and facility equipment such as air conditioners and compressors. We are also expanding the scope of application of controlling the number of machines in operation and working to save energy in line with production conditions.