Information Disclosure Based on TCFD Recommendations

Sustainability

Disclosure based on TCFD Recommendations

Participation in the TCFD Consortium

We consider that one of the most important issues in building a sustainable society is to respond to climate change by reducing CO2 emissions. We are investigating and analyzing the risks and opportunities posed by climate change in relation to our business activities, and reflecting the results of our analysis to our management strategies while calculating the financial impact.
In June 2022, we announced our endorsement of the TCFD (Task Force on Climate-related Financial Disclosure) and have since been working on disclosing information related to climate change.

In February 2025, we joined the TCFD Consortium, through which we will work to upgrade our efforts and further enhance information disclosure, while strengthening cooperation with group companies and specialized organizations, with the aim to further strengthen our response to climate change.

Governance

Since climate change issues can be pose both risks and opportunities for our "corporate value" and "business activities", we will report our progress in addressing climate change to our directors and executive officers twice a year at the "sustainability promotion committee". This committee will serve the function of decision-making and supervision, effectively implementing the PDCA cycle. Issues that have a significant impact on the business are treated as a matter for report and placed on the agenda for the Board of Directors.
The environmental awareness subcommittee, which aims to promote environmental responsiveness, and each business division make recommendations on capital investment and business plans to the sustainability promotion committee and report on their progress.

Click here for more information about the sustainability promotion committee

Strategy

We conducted a scenario analysis of the impact of climate change on our business activities.*3

Targeted items were identified from current and potential future transition risks (policy and regulation, technology, market, and reputation), physical risks (acute and chronic), transition opportunities (products and services, markets, and resilience), and physical opportunities (acute). Based on the information released by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), we have set out a 1.5 degrees Celsius scenario*1 and a 4 degrees Celsius scenario*2 using the year 2030 as a marker. In terms of physical risks, we obtained data relating to future forecasts based on observed and projected climate change data from the climate change adaptation information platform (A-PLAT). As for business, we expect to see an increase in the various IoT devices needed to realize Society 5.0 and a shift toward automated solutions in factories and other facilities. From this information, we organized the viewpoints for the 1.5 degrees Celsius and 4 degrees Celsius scenarios, envisioned what our future society might look like, and conducted a five forces analysis consisting of new entrants, sellers, buyers, substitutes, and industries orbiting our own company.

*1: Scenario in which the global average temperature rises approximately 1.5 degrees Celsius above pre-industrial levels (IPCC SSP1-RCP1.9、IEA NZE2050)

*2: Scenario in which the global average temperature rises approximately 4 degrees Celsius above pre-industrial levels (IPCC RCP8.5)

*3: The scenario was revised from one in which the global average temperature rises approximately 2 degrees Celsius above pre-industrial levels to one in which it rises

Click here for viewpoints for the 1.5 degrees Celsius and 4 degrees Celsius scenarios and details of the five forces analysis.

Risk management

A Risk Compliance Committee presided over by the Representative Director is in place to adequately manage the risks which surround our business to support the setup of risk management systems for each department, and to analyze each type of risk surrounding our business and promote measures for responding to events that may have significant impact.

Risks and opportunities related to climate change are reviewed annually for each business division. The Environmental Management Committee monitors the status of reviewed updates and activities to progress up the spiral of the PDCA cycle on a company-wide level. Information is regularly shared with the Sustainability Promotion Committee and the Board to prevent risks from occurring and minimize their impact through appropriate management and response.

Indicators and targets

With CO2 emissions as an indicator of climate change, we have set a medium-term environmental target of a 46% reduction in CO2 emissions in scope 1 (direct emissions by the company) and scope 2 (indirect emissions from energy use by the company) by fiscal 2031 based on the fiscal 2014 level. In April 2023, the Sustainability Promotion Committee set our long-term goals toward carbon neutrality, with "Challenge to become carbon neutral by 2050" for scope 1 and 2, and "Reduce CO2 emissions for net sales per unit by 80% by 2050 (compared to fiscal 2022)" for scope 3.
In fiscal 2022, we began calculating emissions in scope 3 (upstream and downstream emissions in the supply chain). The fiscal 2025 results indicate that scope 3 accounts for 98% of emissions from the entire supply chain, excluding category 9 (downstream transportation and distribution), which is still under investigation. The scope 3 emissions are influenced largely by category 1 (purchased products and services) and category 11 (use of sold products). In light with this, we will strive to reduce scope 3 emissions by deepening cooperation with suppliers and promoting environmentally conscious design of products.

・CO₂ emissions across the entire supply chain

・Scope 3 CO₂ emissions by category

Scenario Analysis

The identified risks and opportunities are classified as "major," "medium," or "minor" in terms of their impact on business, and countermeasures are determined for each, incorporated into business activities, and progress is reported to the sustainability promotion committee, thereby repeating the PDCA cycle.

Fuji's main risks and opportunities related to climate change, the degree of impact, and response measures are listed in the table below.

1.5 degrees Celsius scenario

Risk or opportunity	Transition or physical	Category	Issue	Responses to risks and opportunities	Impact level
Risk or opportunityRisk	Transition or physicalTransition	Category Policies and regulations	Issue1. Increases in fuel costs and material and procurement costs due to the introduction of a carbon tax such as CBAM or carbon pricing. 2. Increases in costs due to mandatory changes such as the purchase of green power and other costs due to stricter emission regulations.	Responses to risks and opportunities Cooperate with suppliers to reduce CO₂ emissions, collaboratively investigate using new materials and construction methods, and secure information for purchasing CBAM certificates and third-party certifications. Purchase CO2-free electricity, introduce items such as renewable energy equipment and batteries for storage, and purchase green certificates.	Impact levelModerate
Risk or opportunityRisk	Transition or physicalTransition	Category Technology and markets	Issue1. Increases in cost in due to the use of low-carbon technologies in products (such as lightweight and high-strength materials, environmentally friendly motors, semiconductors, and other advanced equipment), resulting in higher product prices and reduced competitiveness. 2. Terms and conditions are getting stricter due to major companies, starting with European and U.S. customers, demanding that their suppliers decarbonize.	Responses to risks and opportunities Promote the development of energy-saving technologies. Research software technology that is not affected by material procurement costs, based on the latest technical information. Begin research and development efforts, including joint research, to secure low-cost, high-quality materials. Accelerate the use of renewable energy and the introduction of energy-saving equipment. Be able to visualize the carbon footprint across the whole supply chain.	Impact levelModerate
Risk or opportunityRisk	Transition or physicalTransition	Category Market	Issue To promote a decarbonized society, discontinue transactions with companies that do not engage in decarbonization.	Responses to risks and opportunities Establish a cooperative framework to reduce greenhouse gas emissions throughout the supply chain. Comply with domestic and international decarbonization laws and regulations. Improve external evaluation scores, such as CDP and Ecovadis.	Impact levelMajor
Risk or opportunityRisk	Transition or physicalPhysical	Category Acute	Issue Fuji Group: Increases in instances of damage due to frequent weather disasters, resulting in plant shutdowns and increased repair costs. Suppliers: Stagnation of production activities due to disruptions in the supply chain, including disruptions to the procurement of parts and product shipments, caused by frequent weather disasters.	Responses to risks and opportunities Strengthen business continuity planning (BCP) measures including for the supply chain.	Impact levelMinor
Risk or opportunityRisk	Transition or physicalPhysical	Category Chronic	Issue1. Increases in costs due to increased energy consumption for air conditioning at Fuji-owned plants. 2. Increases in costs for countermeasures to prevent infectious diseases. 3. Supplier production efficiency drops due to decreases in worker productivity and increases in cases of heat strokes due to increases in temperatures and part procurement delays occur.	Responses to risks and opportunities Reduce CO₂ emissions by introducing renewable energy equipment and promoting the use of CO₂-free electricity. Promote the use of automation and labor-saving tools in factories. Optimize production planning using AI (adjustments to production schedules in response to changes in weather or temperature). Collaboratively work with suppliers to implement business continuity plan measures, and reduce dependency on manpower through the use of robotics and automation technology (such as using AGVs and collaborative robots).	Impact levelMinor
Risk or opportunityOpportunity	Transition or physicalTransition	Category Product and service markets	Issue Expansion of market size due to an increase in energy-saving electrical products in the market. Wider scope of business opportunities in solutions for greater energy-saving performance and improvements in the productivity of factories and equipment. Wider scope of business opportunities in machine tools and SMT pick and place machines for EV manufacturing, as the automotive industry shifts toward EV. Increased demands from users to be able to visualize carbon footprints. Increased demands from users for manufacturing products using carbon-neutral steel and green materials.	Responses to risks and opportunities1. Accelerate development of high-efficiency, power-saving products. 2. Promote development of production facilities with high energy-saving performance. 3. Strengthen development of products and technologies for the EV market. 4. Disclose carbon footprints of products. 5. Promote the use of materials with low environmental impact.	Impact levelMajor
Risk or opportunityOpportunity	Transition or physicalTransition	Category Product and service markets	Issue Expanding demand for in-house energy-saving products. Sales of environmentally friendly products. Increase in economic benefits and reduced operation cost for users by using carbon neutral products that have been highly evaluated by customers and robots that reduce energy consumption on their own.	Responses to risks and opportunities Promote LCA compliance and enable data provision. Improve the recyclability of products. Take action to improve the energy efficiency of products.	Impact levelModerate
Risk or opportunityOpportunity	Transition or physicalTransition	Category Market	Issue Market expansion of automation solutions including robotics because of a greater interest in automation, due to labor-saving efforts being pursued in many fields; driven by the need to address increases in abnormal weather conditions and infectious diseases.	Responses to risks and opportunities Establish products and services that are suited to automation and optimization initiatives in factories	Impact levelModerate
Risk or opportunityOpportunity	Transition or physicalTransition	Category Resilience	Issue Increased quantity of machines purchased as users establish factories in multiple countries in order to mitigate the risk of disasters caused by climate change.	Responses to risks and opportunities Establish a flexible production system that can respond to sudden demand.	Impact levelModerate
Risk or opportunityOpportunity	Transition or physicalPhysical	Category Acute	Issue Expansion of business solutions that allow for quick recovery from disasters.	Responses to risks and opportunities Review and strengthen Business Continuity Planning in each region and country. Create scenarios for major users in the event of a disaster.	Impact levelMinor

4 degrees Celsius scenario

Risk or opportunity	Transition or physical	Category	Issue	Responses to risks and opportunities	Impact level
Risk	Physical	Acute	Fuji Group: Increases in instances of damage due to frequent weather disasters, resulting in plant shutdowns and increased repair costs. Suppliers: Stagnation of production activities due to disruptions in the supply chain, including disruptions to the procurement of parts and product shipments, caused by frequent weather disasters.	Strengthen business continuity planning (BCP) measures including for the supply chain.	Medium
Risk	Physical	Chronic	Increases in costs due to increased energy consumption for air conditioning at Fuji-owned plants. Increases in costs for countermeasures to prevent infectious diseases.	Reduce CO₂ emissions by introducing renewable energy equipment and promoting the use of CO₂-free electricity. Promote the use of automation and labor-saving tools in factories.	Medium
Opportunity	Transition	Market	Market expansion of automation solutions including robotics because of a greater interest in automation, due to labor-saving efforts being pursued in many fields; driven by the need to address increases in abnormal weather conditions and infectious diseases.	Create product and service configurations that meet requirements for factory automation and optimization efforts.	Medium
Opportunity	Transition	Resilience	Increased quantity of machines purchased as users establish factories in multiple countries in order to mitigate the risk of disasters caused by climate change.	Establish a flexible production system that can respond to sudden demand.	Medium
Risk or opportunityOpportunity	Transition or physicalPhysical	Category Acute	Issue Expansion of business solutions that allow for quick recovery from disasters.	Responses to risks and opportunities Review and strengthen Business Continuity Planning in each region and country. Create scenarios for major users in the event of a disaster.	Impact levelMinor

The results of the scenario analysis showed that the 2 degrees Celsius scenario provides an opportunity with solution business focused on increasing factory productivity and energy-saving capabilities, as well as the shift in the automotive field to EV, resulting in greater demand for SMT pick and place machines and machine tools. The risks include increased procurement costs for materials and increased costs for products with low-carbon technologies. Under the 4 degrees Celsius scenario, low carbon emissions will not be promoted and weather-related disasters are expected to become more severe, making it important to address physical risks.
In the future, we will identify financial items among the items that will be highly impacted and continue to gain understanding of the true financial impact of these.

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