Climate Change Management

Importance and Mission

Under the United Nations Framework Convention on Climate Change (UNFCCC), which is linked to the Paris Agreement, the goal is to limit the global average temperature increase to no more than 1.5°C This presents significant challenges for business operations, requiring companies to navigate various risk factors, including both physical risks, such as severe natural disasters, and regulatory changes related to climate change. As a result, the Company must prepare for potential changes, as well as increasing customer expectations and evolving demands from both current and future markets. Therefore, to meet these demands and enhance competitiveness, the Company must be capable of managing and responding to customer needs while adapting to changing regulations.

Governance Structure for Climate Change Management

The Company has established a governance structure and working committees responsible for climate change management, including greenhouse gas management. The Company has established the Good Governance and Risk Management Team, responsible for ensuring appropriate and effective risk management, including climate change-related risks. Additionally, the Sustainability Committee is formed with the responsibility of developing sustainability management strategies and overseeing the implementation of action plans. In this regard, the Sustainability Working Group is also formed to act as a task force for various sustainability-related management activities, including energy management, waste management, and other supporting initiatives, ensuring minimal climate change impacts and greenhouse gas emissions. Further details on the roles and responsibilities of subcommittees are available in the Annual Registration/Statement the Annual Report 2024 (56-1 One Report), under the section on “Subcommittee Information.”