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.

Kumiai Group established the “Basic Policy on Sustainability” based on the “Kumiai Chemical Group Corporate Philosophy” to improve corporate value by promoting sustainability management, and are contributing toward creating a sustainable society by meeting the expectations and needs of stakeholders. To promote sustainability management, a “Sustainability Promotion Committee” that is led by the President was established, and three subcommittees were organized according to the ESG category. At this committee and the three subcommittees, targets and progress related to sustainability are being examined and discussed, and initiatives for “Realization of a sustainable society” are being promoted.
We set “Mitigation of climate change and environmental impact” as materiality, and have identified risks and opportunities related to climate change for Kumiai Group. Through scenario analysis, we have set Kumiai Group targets for the “Safe, secure, and affluent society” scenario (called the 1.5°C scenario) and “Unsustainable society” scenario (called the 4 °C scenario) where social issues like climate change become worse, and have evaluated the impact based on risks and opportunities in relation to 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 President then discuss climate change risks and opportunities.

Kumiai Group set FY2019 as the reference year, and set reducing scope 1 and scope 2 GHG emissions by 30% compared to FY2019 by FY2030 as our target. In addition to Kumiai itself, we have identified seven group companies that are expected to emit large amounts of GHGs (companies with factories and logistics companies) and have set total GHG emissions for these companies as targets for reduction. We will reduce GHG emissions by improving energy efficiency based on capital investment in factories, and by effective use of renewable energy such as solar power.

We have set Kumiai Group targets for the “Safe, secure, and affluent society” scenario (called the 1.5°C scenario) and “Unsustainable society” scenario (called the 4°C scenario) where social issues like climate change become worse, and have evaluated the impact based on risks and opportunities in relation to Kumiai Group.
The following shows the major risks and opportunities along with related measures. We are convinced that realizing Kumiai Group’s aim of a “Safe, secure, and affluent society” will result in a positive impact on Kumiai Group.