Colcoat Co., Ltd. has obtained certification under the SME version of the Science Based Targets (SBT) from the Science Based Targets initiative (SBTi), an international organization that certifies greenhouse gas (GHG) reduction targets, in order to accelerate its efforts toward the realization of a decarbonized society.

Using fiscal year 2022 CO₂* emissions (a total of 2,371 t-CO₂ for Scope 1 and Scope 2) as the baseline, the Company has set a target to reduce emissions by 63.0% by fiscal year 2035 and will promote climate change mitigation initiatives across the entire group.

*In this document, greenhouse gases (GHGs) are referred to as CO₂.

Toward the Achievement of the Certified Emission Reduction Targets

• Scope 1 (Direct emissions from the Company’s own operations): Reduction Strategy — Enhancing energy efficiency and exploring alternative fuels
We will maximize energy efficiency across all business activities while advancing studies on the feasibility of transitioning to alternative fuels to replace fossil fuels. By reducing the carbon intensity of fuels themselves, we aim to achieve a fundamental reduction in direct emissions.

• Scope 2 (Indirect emissions from electricity consumption): Reduction Strategy — Greening electricity and thorough energy conservation
We will complete the transition to high-efficiency LED lighting across all facilities and implement energy-saving equipment. In addition, by switching to electricity derived from renewable energy sources, we aim to minimize CO₂ emissions associated with electricity consumption.

• Scope 3 (Other indirect emissions): Approach
We have begun visualizing (calculating) emissions across the supply chain and are working to establish a framework for their reduction.