Initiatives Towards a Decarbonized Society

The Sanwa Group recognizes the impact of our business operations on the global environment and the importance of mitigating this impact. In May 2022 we established new environmental targets and a new policy for achieving carbon neutrality. In addition, under the Medium-Term Management Plan 2027, we announced our CO2 emissions reduction target for fiscal year 2027.

Sanwa Shutter Corporation and other domestic group companies in Japan have established and are operating an environmental management system based on ISO 14001 guidelines, and we are working to reduce our impact on climate change by setting targets for energy reduction and efficiency, as well as targets for lower CO₂ emissions.

• Figures from FY2019 to FY2021 have been updated following a change in calculation method in line with a third-party verification. Adjusted emission factors have been used since FY2019.
• The Japan Management Association Sustainability Center (JMASusC) has provided third-party verification of the values for Sanwa Shutter Corporation's CO₂ emissions from FY2021
• From the fiscal year 2023, it includes of heat and steam supply received by the Shinjuku Mitsui Building from the Shinjuku District Heating and Cooling Center.

Adhering to the Law Concerning the Rational Use of Energy, Sanwa Shutter Corporation is working to achieve a 1% reduction in energy consumption intensity of production per year and a 1% average improvement in energy consumption intensity of production per year over five years. To reach these goals, the Company is implementing multiproduct mixed delivery using depots (small distribution centers) in the Tokyo metropolitan area, Sendai, and Shikoku. In addition, in July 2020, the Company introduced a vehicle dispatch and warehouse management system to improve the efficiency of vehicle dispatching and promoted better warehouse entry/exit and inventory management. These moves helped improve the loading ratio and reduced the number of vehicles sent out.

In FY 2021, ODC began calculating CO₂ emissions (Scope 1 + 2) from ODC headquarters and all plants. The results for FY 2025 were 23,453 t-CO₂ (Scope1: 8,059 t-CO₂, Scope2: 15,393 t-CO₂), representing an approximately 12.3% decrease from the previous year.
Pensacola plant of ODC uses computer-controlled lighting and an energy-efficient air-conditioning system in order to reduce unnecessary energy use.
Additionally, the Centralia plant has switched to energy-efficient lighting and Won-Door has not only changed the office area lighting to LED but also upgraded the HVAC systems to more energy-efficient models, striving to reduce energy consumption.

In FY 2021, NF Group began calculating CO₂ emissions (Scope 1 + 2) from NF GmbH headquarters and all plants. The results for FY 2025 were 16,239 t-CO₂ (Scope1:11,066 t-CO₂, Scope2:5,173 t-CO₂), representing an approximately 1.1% decrease from the previous year.
Within the NF Group, ISO 14001 certification has been obtained at the Riexinger plant in Germany, the NF Door plant in Poland, the RobustAB's plant in Sweden, and Vertriebs sales company in Germany. In addition to efforts to reduce energy consumption, the group is promoting the transition of company-owned vehicles in Germany and the UK to electric or plug-in hybrid models, as well as the purchase of electricity derived from renewable energy sources.

In FY 2022, Asian subsidiaries began calculating CO₂ emissions (Scope 1 + 2) from Asian subsidiaries headquarters and all plants. The results FY 2025 were 2,167 t-CO₂ (Scope1: 415 t-CO₂, Scope2: 1,752 t-CO₂), representing an approximately 22.7% increase from the previous year.
We have introduced solar power generation facilities at Shanghai Baochan-Sanwa Door since May 2023, contributing to the reduction of CO₂ emissions and electricity costs. Additionally, solar power generation facilities were installed at Sanwa NF Changshu, and operations
commenced in June 2024. The total panel area is 6,680 m2, with an expected annual reduction of approximately 1,397 t of CO₂ emissions.

To achieve a carbon neutral society, it is necessary to reduce CO₂ emissions not only within the Company but also throughout the entire supply chain. For the first step to reduce overall CO₂ emissions in the supply chain, we began calculating the previous year's results of Scope 3
emissions (Categories 1, 3, and 4) from the FY 2023. Starting in FY2024, calculations for Categories 2, 5, 6, 7, 10, and 11 were newly introduced. As a manufacturer, we have obtained third-party verification for Categories 1, 3, and 11, which are particularly relevant to our business.

• Uses emission coefficients indicated in "Database of emissions unit values for Greenhouse Gas Emissions Throughout the Supply Chain(ver.3.6)"and "National Institute of Advanced Industrial Science and Technology IDEA Ver.2.3".

• Numbers may not add up to 100% due to rounding.