The Sanwa Group's Sustainability Committee,chaired by the President and Representative Director of Sanwa Holdings,meets four times a year as an organization for promoting sustainability management,and establishes and promotes policies on all ESG-related themes.The Sustainability Committee considers the response to climate change risk as an important issue,and confirms the progress and direction of the action policy.

We identified climate-related risks and opportunities and their impact on our business as of 2030, and qualitatively assessed the magnitude of the impact.Sanwa Shutter Corporation, on a nonconsolidated basis, is the target of this analysis because, as the core operating company, this company accounts for roughly half (50%) of the Group's consolidated net sales, so the impact of these risks and opportunities are expected to be large.

In the case of the rapid transition to a low-carbon society worldwide, increased manufacturing costs are projected for the Company as a result of the introduction of carbon taxes, increased emissions trading, and tightening of environmental regulations. At the same time, since the reduction of greenhouse gas emissions will be required by many companies as a way to mitigate climate change, there is a possibility that demand will increase for the Company's products, due to their advanced energy savings.

In the case of the worsening of global warming due to failure to implement climate change measures worldwide, as a result of concern over intensification of natural disasters, there is a possibility of ending up with a loss of business opportunities due to the stagnation of production and logistics from the Group's suppliers. At the same time, this could be an opportunity for us to increase sales due to our extensive lineup of products, including waterproof shutters and doors, that protect lives and property from water damage, as well social demand for climate change countermeasures, including heightened awareness of disaster preparedness.

We analyzed 1.5℃/4℃ scenarios for 2030 covering important climate-related risks and opportunities facing the Company. In turn, we calculated the impact on our operations and conducted an assessment.

The Sanwa Group believes it is our responsibility as a manufacturer to develop and provide eco-friendly products that contribute to energy savings, as well as waterproof products or disaster preparedness products that protect lives and assets from water damage caused by global warming, and that these are also business opportunities arising from climate change.

A growing need is expected for eco-friendly products, such as those that contribute to energy savings and that use renewable energy, and for greening products. This need is due to the trend toward a low-carbon society that aims at reducing greenhouse gas emissions worldwide and changes in consumer sentiment. For example, high-speed sheet shutters that can be opened and closed at high speeds (released in Japan, North America, Europe, and Asia) contribute to energy savings at plants and logistics centers around the world. These products improve airtightness and air-conditioning efficiency, and so contribute to reducing greenhouse gas emissions.
Thermal insulating sectional door used in factories and warehouses that require temperature controls, even in Japan; increase AC efficiency with excellent sealing and insulated spiral shutters that open extremely fast (at 2.0 m/second) reduce annual CO₂ emissions by around one-third, compared with heavier shutters, due to their high speed. Because strict energy-saving and heat-insulating performance are required for Europe, almost all NF Group sectional doors have excellent heat-insulating performance.
In addition, our lineup includes window shutters that deliver improved cooling by preventing sunlight and heat penetration with closing a mesh screen installed inside the shutter box as well as window shutters with a solar panel that can be opened and closed using only solar power.