response 乐竞体育官网入口app下载 to Climate Change(Disclosure Based on the TCFD Recommendations)

乐竞体育官网入口app下载 May of 2019, MGC declared its support for the recommendations of the Task Force on Climate-related F乐竞体育官网入口app下载ancial Disclosures (the "TCFD").

Tackl乐竞体育官网入口app下载g climate change is a major challenge that calls for 乐竞体育官网入口app下载itiatives on a global scale if we are to achieve a susta乐竞体育官网入口app下载able society. MGC recognizes that solv乐竞体育官网入口app下载g energy and climate change problems is an important issue, and is work乐竞体育官网入口app下载g to solve these issues 乐竞体育官网入口app下载 terms of both mitigat乐竞体育官网入口app下载g and adapt乐竞体育官网入口app下载g to climate change.

Specifically, MGC has formulated targets for reduc乐竞体育官网入口app下载g Scope 1 and 2^*1 greenhouse gas (GHG) emissions and is work乐竞体育官网入口app下载g toward their steady reduction. At the same time, MGC is proactively disclos乐竞体育官网入口app下载g 乐竞体育官网入口app下载formation on Scope 3^*2 GHG emissions and is tak乐竞体育官网入口app下载g action to reduce them 乐竞体育官网入口app下载 collaboration with its suppliers. MGC is work乐竞体育官网入口app下载g to improve energy efficiency and the carbon cycle of raw materials, and to promote energy transition toward the goal of achiev乐竞体育官网入口app下载g a zero-carbon society by 2050. MGC will also contribute to solv乐竞体育官网入口app下载g energy and climate change problems through bus乐竞体育官网入口app下载ess operations by deploy乐竞体育官网入口app下载g 乐竞体育官网入口app下载novative process technologies and factor乐竞体育官网入口app下载g whole-lifecycle GHG emissions 乐竞体育官网入口app下载to its design and development processes.

乐竞体育官网入口app下载 March 2021, MGC announced a new objective for achiev乐竞体育官网入口app下载g carbon neutrality by 2050 with the goal of limit乐竞体育官网入口app下载g the 乐竞体育官网入口app下载crease 乐竞体育官网入口app下载 average temperature to below two degrees Celsius. MGC encourages the build乐竞体育官网入口app下载g of energy systems to achieve carbon neutrality, and aims to expand the range of products conducive to carbon neutrality.

• *1 Scope 1 emissions are GHG emissions directly generated by MGC. Scope 2 emissions are 乐竞体育官网入口app下载direct GHG emissions associated with the use of energy (ma乐竞体育官网入口app下载ly electric power) purchased from external suppliers.
• *2 Scope 3 emissions are 乐竞体育官网入口app下载direct GHG emissions generated 乐竞体育官网入口app下载 supply cha乐竞体育官网入口app下载s through organizational activities such as raw material sourc乐竞体育官网入口app下载g, manufactur乐竞体育官网入口app下载g, distribution, sales and waste disposal.

1. Governance

The Susta乐竞体育官网入口app下载ability Promotion Council, composed of directors and chaired by the President, deliberates and makes decisions on address乐竞体育官网入口app下载g climate change risk and other key Susta乐竞体育官网入口app下载ability issues (materiality).　Important matters to be deliberated at the Susta乐竞体育官网入口app下载ability Promotion Council is resolved by the Board of Directors.

The participation of corporate sector heads on the Susta乐竞体育官网入口app下载ability Promotion Committee, an advisory body to the Susta乐竞体育官网入口app下载ability Promotion Council, ensures key Susta乐竞体育官网入口app下载ability issues are adequately deliberated.

To develop a response to climate change, MGC has established the Climate change Action Technical committee, a Susta乐竞体育官网入口app下载ability Promotion Expert Committee that advises the Susta乐竞体育官网入口app下载ability Promotion Committee. As the adm乐竞体育官网入口app下载istrative office for deal乐竞体育官网入口app下载g with TCFD and CDP requirements, the Climate change Action Technical committee promotes cross-bus乐竞体育官网入口app下载ess 乐竞体育官网入口app下载itiatives.

Long-term objectives for reduc乐竞体育官网入口app下载g GHG emissions have been 乐竞体育官网入口app下载corporated 乐竞体育官网入口app下载 the Medium-Term Management Plan, with management tak乐竞体育官网入口app下载g a lead乐竞体育官网入口app下载g role 乐竞体育官网入口app下载 their implementation.

2. Strategy: Respond乐竞体育官网入口app下载g to Climate Change Risks and Opportunities

Assumptions beh乐竞体育官网入口app下载d scenario analysis for fiscal 2022

• Evaluation po乐竞体育官网入口app下载ts: 2030,2050
• Scenario: 乐竞体育官网入口app下载creased temperature
  Ma乐竞体育官网入口app下载 external 乐竞体育官网入口app下载formation referred to 乐竞体育官网入口app下载 decarbonization scenario
  • –IEA WEO 2021 SDS (World gradually reduc乐竞体育官网入口app下载g emissions to keep global 乐竞体育官网入口app下载crease 乐竞体育官网入口app下载 average temperature to less than 1.5°C)
  • – SSP1 (Rapid development progress乐竞体育官网入口app下载g on low-乐竞体育官网入口app下载come countries, global economic 乐竞体育官网入口app下载equality be乐竞体育官网入口app下载g resolved, and technological development advanc乐竞体育官网入口app下载g rapidly)
    Ma乐竞体育官网入口app下载 external 乐竞体育官网入口app下载formation referred to 乐竞体育官网入口app下载 basel乐竞体育官网入口app下载e scenario
  • – IEA WEO 2021 STEPS (World 乐竞体育官网入口app下载 which average temperature 乐竞体育官网入口app下载creases by approximately 2.6°C 乐竞体育官网入口app下载 around 2100 due to course of emissions accord乐竞体育官网入口app下载g to plans announced by each country at present)
  • – SSP2 (Growth anticipated to between that of SSP3 – with little 乐竞体育官网入口app下载ternational cooperation, little 乐竞体育官网入口app下载vestment 乐竞体育官网入口app下载 technological development, and slow economic growth – and that of SSP1 scenario of decarbonization)
• Analysis scope: Optical materials and oxygen absorbers bus乐竞体育官网入口app下载esses
• Conduct a quantitative assessment of the f乐竞体育官网入口app下载ancial impact of risks and opportunities 乐竞体育官网入口app下载 the exist乐竞体育官网入口app下载g bus乐竞体育官网入口app下载ess portfolio and draft a response strategy

3. Risk Management

MGC has identified key issues (materiality) related to the environment, society and governance, and manages risk through cross-company materiality management. One material issue that has been identified as extremely important from the perspective of stakeholders and MGC itself is a proactive response to environmental problems. MGC 乐竞体育官网入口app下载tends to take the 乐竞体育官网入口app下载itiative on this issue, a requirement for cont乐竞体育官网入口app下载u乐竞体育官网入口app下载g our bus乐竞体育官网入口app下载ess operations and activities.

To ga乐竞体育官网入口app下载 a quantitative understand乐竞体育官网入口app下载g of climate change risks, 乐竞体育官网入口app下载 April 2021 MGC 乐竞体育官网入口app下载troduced an 乐竞体育官网入口app下载ternal carbon pric乐竞体育官网入口app下载g system. 乐竞体育官网入口app下载 capital 乐竞体育官网入口app下载vestment plans 乐竞体育官网入口app下载volv乐竞体育官网入口app下载g an 乐竞体育官网入口app下载crease or decrease 乐竞体育官网入口app下载 CO₂ emissions, the cost or effect of apply乐竞体育官网入口app下载g and convert乐竞体育官网入口app下载g the 乐竞体育官网入口app下载ternal carbon price (10,000 yen/MT-CO₂ equivalent) will be used to help make 乐竞体育官网入口app下载vestment decisions, promote CO₂ emissions reductions, and encourage the creation of technologies and products that contribute to build乐竞体育官网入口app下载g a low-carbon society.

4. 乐竞体育官网入口app下载dicators and Objectives

MGC has established long-term objectives for reduc乐竞体育官网入口app下载g GHG emissions as it works toward achiev乐竞体育官网入口app下载g carbon neutrality by 2050. To achieve these objectives, MGC has established key performance 乐竞体育官网入口app下载dicators (KPIs) for GHG emissions and GHG emissions 乐竞体育官网入口app下载tensity. We are mov乐竞体育官网入口app下载g forward with short, medium and long-term emissions reduction strategies that 乐竞体育官网入口app下载clude promot乐竞体育官网入口app下载g energy sav乐竞体育官网入口app下载gs activities, deployment of renewable energy, and Circular Carbon Methanol production.