Environmental Measures

• Environmental Philosophy and Principles
• Response to the Recommendations of TCFD
• Environmental Management
• Formulating Medium-Term Environmental Targets
• Action to Reduce the Environmental Impact
• Chemical Substances Management
• Environmentally Friendly Products

Climate change is an important issue that humanity must resolve if we are to realize a sustainable society. We believe action against climate change to be a prerequisite for business continuity for any company.
Dexerials has endorsed the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"). We will contribute to the realization of a sustainable society through the appropriate and timely disclosure of information about the management risks and opportunities associated with climate change.
In addition, by providing new value through our own products and technologies, we will promote initiatives to leave a rich environment to future generations, with the aim of harmonious co-existence with our stakeholders.

Dexerials has positioned climate change as an important management issue and is pursuing activities aimed at realizing a sustainable society.
It regularly convenes the Sustainability Working Groups, led by Executive Officer of CSR Promotion Division, to hold cross-functional discussions of progress being made toward the targets set under its important challenges. The Working Groups report on material issues to the Board of Executive Officers and the Board of Directors and receive instructions from them.

Dexerials has identified risks and opportunities associated with climate change on a long-term time axis up to 2050. It has also performed scenario analyses taking the 1.5-2°C and 4°C scenarios into account, referring to the sixth evaluation report of the Intergovernmental Panel on Climate Change (IPCC) and the World Energy Outlook (WEO) of the International Energy Agency (IEA), etc. Dexerials has now expanded the targeted business areas of scenario analysis and considered measures for responding to the risks and opportunities associated with climate change.

As a result of our carbon-neutral efforts, the average temperature rises by less than 2°C by the end of this century compared to the temperature before the Industrial Revolution.

• Reference: Sustainable Development Scenario (SDS), Net Zero Emissions by 2050 (NZE2050)

With only limited progress in carbon-neutral efforts, the average temperature rises by 4°C or more by the end of this century compared to the temperature before the Industrial Revolution.

• Reference: Stated Policies Scenario (STEPS)

World of the 1.5-2°C scenario

World of the 4°C scenario

・Moves toward the creation of a decarbonized and recycling-based society accelerate. ・The percentage of renewable energies such as solar and wind power in the electric power mix increases drastically. ・The carbon tax rate against CO2 emissions is increased significantly. ・Because of the transition to a recycling-based society, the shift to bio and recycled materials accelerates. ・Society is more streamlined and shifts to an ultra-smart society. ・In the automobile market, the electrification of automobiles and shift to autonomous driving make progress, which changes the space in a vehicle to a living space.

・Risks of a rise in sea level, high tide water, floods, heavy rains, etc. emerge, which affects our and our suppliers' operations and increases the costs of responding to them. ・Demands for fossil fuels increase, which increases the costs of fossil fuels. ・Along with the rise in temperature, an increase in the frequency of disasters, and spread of infectious diseases, etc., lifestyles change; e.g., Stay-home time is extended.

Dexerials has now verified the risks and opportunities regarding our main products, anisotropic conductive film (ACF) and optical elastic resin (SVR), in addition to anti-reflection film (ARF), as well as initiatives for them.

Classification		Changes in the social environment	Impact on business	Risks	Opportunities	Main initiatives
Transition to a low-carbon economy	Policies and legal restrictions	Rise in carbon price	・Increase in production and transportation costs resulting from the introduction of a carbon tax	〇		・Use of renewable energy and shift to low-carbon fuel ・Advancing energy conservation
		Tightening of regulations on reduction of greenhouse gas emissions	・Increase in costs for energy conservation and shift to renewable energy ・Increase in demands for products and services that reduce environmental impacts	〇	〇	・Development and promotion of environmentally friendly products ・Collection of information about policy trends
	Technologies	Development of technologies related to a decarbonized society and recycling-oriented society	・Loss of opportunities due to delayed actions for low-carbon/decarbonization technologies and resource circulation	〇		・Consider Reduce, Reuse, and Recycle ・Information collection about low carbon/decarbonization-related technologies
	Market	Shift to bio and recycled materials	・Difficulty procuring fossil-based materials ・Increase in fossil-based material costs ・Along with the practical realization of various bio and recycled materials, it will be easier to use bio and recycled materials.	〇	〇	・Consider the introduction of bio and recycled materials ・Collection of information about bio and recycling-related markets and technologies
		Promotion of energy and resources conservation	・Energy conservation ・Increase in demand for resource conservation supporting products		〇	・Provision of solutions for energy and resource conservation
		Realization of smart cities	・Increase in demand for sensors and communication devices		〇	・Development promotion and market expansion of products such as displays, sensors, and communication devices
		Popularization and expansion of next generation mobility	・Increase in demand for in-vehicle displays, sensors, and communication devices		〇

Classification		Changes in the social environment	Impact on business	Risks	Opportunities	Main initiatives
Physical changes	Acute	Increasing severity of climate disasters	・Increase in repair costs ・Increase in closedowns due to disrupted supply chain	〇		・Strengthen business continuity planning (BCP) ・Consider inventory management of materials and products
	Chronic	Rise in average temperature	・Increase in costs of response to rising temperatures	〇		・Consider measures for reducing the costs of air-conditioning ・Advancing energy conservation
		Along with the rise in temperature, increase in the frequency of disasters, and spread of infectious diseases, etc., lifestyles change.	・Expansion of display-related demand due to spread of work-from-home and staying at home		〇	・Enhancement of product lineup

The Risk Management Committee has been established as the agency for group-wide management of interdepartmental risk.
This Committee periodically identifies significant management risks and reports them to the monthly meetings of the Board of Executive Officers.

Risk Management

Dexerials has set CO₂ emissions as a climate-related evaluation metrics and is aiming to achieve zero CO₂ emissions from consuming electricity for business by 2030.
Additionally, based on the scenario analyses, we will consider long-term climate change metrics and targets such as the reduction of greenhouse gas emissions in business activities.

Formulating Medium-Term Environmental Targets

• CSR Management

• Relationships with Society

• CSR TOP