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. To reduce total CO2 emissions, 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). How to calculate total 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. Base year: Domestic and overseas: FY2020 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 FY2023 amounted to 247,000 tons, all of which were CO2 emissions. Emissions in Japan totaled 117,000 tons, while overseas emissions totaled 136,000 tons. Offsetting of CO₂ by non-fossil certificates in Japan and abroad. ・Domestic: 19,000 tons of FIT Non-Fossil Certificates ・Overseas: (Kingdom of Thailand)28,000 tons of I-RECs (China) 10,000 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. In FY2023, Scope 3 emissions decreased significantly, clearing the Fujikura Group's SBT target of 15% reduction compared to FY2020. We believe that this was largely due to a decrease in the shipment volume of Category 11 wires. Therefore, we will continue to monitor the results for FY2024 before resetting the target. *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 FY2023 In FY2023, we conducted activities with the goals of "reducing CO2 emissions by 9.9% or more compared to FY2020". 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 247,000 tons, a decrease of 29% from FY 2020. Major Initiatives in FY 2023 (1) Reduction of CO2 emissions in-house ・Energy conservation: Develop innovative manufacturing to increase productivity and business competitiveness, and actively expand existing energy conservation activities ・Energy creation: Decided to introduce renewable energy from solar power generation (three locations) ・Purchasing energy: Appropriate environmental certificate that meets RE100 and other requirements and purchasing renewable energy (2) Pursuing decarbonization of the supply chain ・Pursuing resource reuse ・Surveyed several main raw material manufacturers on CO2 emissions reduction (3) Reduction of the carbon footprint of products ・Began lifecycle assessment of some products ・Development of environmentally-friendly products Activities in Transportation and Logistics Regarding the improvement of logistic energy consumption per unit of products associated with logistics activities, we aimed for a 3% improvement in FY2023 compared to the FY2020 actual value of 41.2KL/kiloton. In contrast, the actual value for FY2023 was 39.6 KL/kiloton, achieving the target with a 3.9% improvement. In FY2023, 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 1.8% from the previous year's actual value of 40.3 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. Renewal of air conditioners and LED lighting In FY2023, we have created guidelines for "renewal of air conditioners" and "renewal of LED lighting." We promote energy conservation by encouraging systematic updates through the operation of checklists. Air conditioners that use specific CFCs R22 refrigerants will be prioritized for renewal, and we aim to complete the renewal at the earliest possible time by 2025. All replaceable LEDs will be replaced, and we aim to achieve a 95% LED conversion rate by 2030. Initiatives at Business Sites (Energy Creation) It has been decided to install a solar power generation system in the first and second parking lots of the Sakura Plant. The type to be introduced in parking lots is the carport type, which has been introduced in commercial facilities in recent years. The total panel capacity is 1,328 kW, and power generation is expected to start at the end of May 2025. Initiatives at Group Companies Group companies in Japan and overseas are actively working to eliminate wasteful energy use by further promoting holiday mode (a mode that reduces the power consumption of equipment on holidays) and by narrowing the air-conditioning area by partitions, creating equipment downtime by adjusting production, shortening idle time, and changing operating conditions. In the Thailand region, we are also remodeling equipment so that it can be stopped frequently according to the production situation.