Disclosure Based on TNFD Recommendations

What is TNFD?

The TNFD (Taskforce on Nature-related Financial Disclosures) is a task force on nature-related financial disclosures established by the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Development Programme (UNDP), the World Wildlife Fund (WWF), and the UK environmental NGO Global Canopy.

TNFD encourages companies to understand and disclose their dependence on and impact on nature through their operations, as well as risks and opportunities they have.

Disclosure Based on TNFD Recommendations

Based on the LEAP approach developed by TNFD, we conducted surveys by applying its Locate and Evaluate phases.

The target locations were mainly Japan, China, Vietnam, and the Philippines, where manufacturing facilities are located.

As a survey method, we used the ENCORE, a key tool for TNFD's LEAP approach to check the degree of our dependence and influence (impact) on nature at each location.

Going forward, we will conduct surveys to assess the degree of our dependence and impact on nature at each location, aligning with our business activities.

In particular, our company has a plating process within our facilities, which requires the use of large amounts of water. However, the plating equipment at our overseas factories is equipped with a water recycling system. This system allows us to use 1/4 to 1/3 of the water required for the plating process compared to normal processes. We intend to continue our efforts to minimize our impact on the natural environment by continuing to reduce water usage and thoroughly managing the discharge of harmful substances.