Discover MEC’s Commitment to a Greener Future: Our Environmental Initiatives

### MEC’s Climate Change Strategies

MEC is committed to tackling climate change as part of its management strategy. We realize that environmental sustainability is crucial for our future. In February 2023, we backed the Task Force on Climate-related Financial Disclosures (TCFD), which encourages companies to reveal how climate risks and opportunities will affect their financial health.

#### Understanding Climate Risks
The TCFD breaks down climate risks into two categories: transition risks and physical risks. Transition risks arise from the shift to a lower-carbon economy, while physical risks come from direct changes in climate, like extreme weather. As a manufacturing firm, we are particularly concerned about these issues to ensure business continuity.

We identified significant risks to our operations, such as increased costs from carbon taxes or challenges in sourcing materials. For example, recent data shows a rise in operating costs due to stricter regulations, impacting numerous industries (International Energy Agency, 2023). Simultaneously, we also noted opportunities that could arise as demand grows for eco-friendly products.

#### Organizational Governance
Climate issues are a central focus for our ESG Committee, led by our CEO. This committee meets regularly to assess climate-related risks and opportunities, and it reports to our Board of Directors annually. This governance structure ensures that we approach climate change strategically and methodically.

#### Scenario Analysis
We’ve conducted scenario analyses to understand how different climate futures may impact our business by 2030. According to the Paris Agreement, limiting global temperature rise to well below 2°C is crucial. Our evaluations suggest that, in scenarios where meaningful climate actions are taken, demand for sustainable products will likely rise significantly. Conversely, in high-emission scenarios, we could face severe disruptions, such as supply chain instability due to more frequent natural disasters.

#### Climate-related Metrics and Targets
As part of our commitment to climate action, we aim to reduce Japan’s Scope 1 and 2 emissions by 50% by 2030, based on 2017 levels. Further, our long-term goal is to achieve net-zero emissions by 2050. Recent statistics show that many companies are also setting ambitious emission reduction targets, aligning with global sustainability efforts (CDP Report, 2023).

#### Contributing to Environmental Conservation
MEC actively works to lessen its environmental footprint. We measure our energy usage, CO₂ emissions, and waste generation to identify areas for improvement. Our emissions calculations follow the GHG Protocol standards, revealing a heavy reliance on electricity, which we aim to supplement with renewable energy sources, such as solar power.

In the spirit of sustainability, we’ve also initiated programs to promote recycling and responsible waste management. For instance, we encourage customers to return our product containers for reuse, reducing waste and resource consumption. We will continue to analyze and improve our waste management strategies to further minimize our environmental impact.

By continuously evaluating our risks, setting clear targets, and fostering a culture of sustainability, we at MEC are prepared to face the challenges posed by climate change while seizing the opportunities that arise in a changing world.



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