After identifying businesses and industries that have the potential to be significantly impacted by climate change, the Teijin Group has been conducting an analysis of the level of this impact based on the 1.5℃ scenario and the 4℃ scenario,^* referencing World Energy Outlook (WEO), published by the International Energy Agency (IEA). In either scenario, differences in industry trends will have a minor impact on demand, or the positives and negatives will cancel each other out. Nonetheless, we will monitor industry trends and consider the appropriate time to make investments and allocate resources.

1. *1.5℃ scenario: IEA NZE 2050 scenario, 4℃ scenario: IPCC RCP8.5

In FY2020, the Teijin Group established and introduced an internal carbon pricing (ICP) system targeting capital expenditure plans throughout the Group that can lead to an increase or decrease in GHG emissions. In FY2021, we began applying this ICP system to our capital expenditures. In addition to the capital expenditure projects that were covered when the ICP was first introduced, the system now also applies to investment projects such as M&A and to decision-making related to GHG emissions reductions that do not involve capital expenditure, such as switching to renewable energy through changes in procurement sources for electricity consumed by the Company. In addition, with regard to indirect emissions from partners in our upstream value chain (Scope 3 Category 1), the revised ICP will be applied to capital expenditure for switching to recycled or biomass-derived raw materials purchased from other companies, thereby encouraging the reduction of GHG emissions throughout the supply chain.

• *A system that creates economic incentives to reduce GHG emissions by establishing internal carbon prices to quantify GHG emissions as costs, thereby promoting internal efforts to respond to climate change.

The Teijin Group has established a Total Risk Management (TRM) framework covering all aspects of management. Under this framework, it comprehensively identifies, assesses, and manages all risks, including climate-related risks. The risk of "major natural disasters," which includes physical risks associated with climate change, has been designated as a priority risk requiring particularly intensive management among significant risks. The Group is working to enhance effectiveness at the operational level through measures such as reviewing its disaster response manuals. It also treats transition risks associated with climate change as significant key risks, continuously monitoring global regulatory trends and striving to respond promptly.

The Teijin Group's GHG emissions reduction targets have been certified as Science Based Targets (SBT), scientifically aligned with the goals of the Paris Agreement, at the "Well-below 2°C" target level. The Group aims to achieve net-zero Group GHG emissions (Scope 1+2) by 2050. For Scope 1, the commencement of operation of the gas cogeneration system at the Matsuyama Plant in FY2026 enabled the Group to eliminate coal use from in-house thermal power generation completely. The Group will continue to further reduce emissions by promoting the transition to renewable energy and converting heat sources to clean energy, among other initiatives.

Roadmap for Reducing Group GHG Emissions (Scope 1+2)

• *Teijin Automotive Technologies NA Holdings Corp., which had been a consolidated subsidiary of the Materials Segment, was divested in July 2025 following the share transfer agreement concluded in March 2025. Accordingly, GHG-related indicators are excluded for all fiscal years.
• *GHG emissions quantification is subject to uncertainty when measuring activity data, determining emission factors, and considering scientific uncertainty inherent in the Global Warming Potentials.

Trends in Group GHG emissions

In FY2025, Group GHG emissions were 0.98 million tons-CO₂e (Scope 1: 0.53 million tons-CO₂e, Scope 2: 0.44 million tons-CO₂e).

1. *Includes CO₂, methane, and N₂O
2. *GHG emissions are calculated with the Greenhouse Gas (GHG) Protocol as reference. The amount of GHG emissions equivalent to the amount of energy sold to other companies has not been deducted from this data. With regard to coefficients for fuel, we use emissions coefficients based on the Law Concerning the Promotion of the Measures to Cope with Global Warming. As for emissions coefficients for electricity, we use standard emissions coefficients of individual electric power companies for power purchased in Japan. For power purchased overseas, we use power company specific coefficients, in principle. However, in cases where the power company-specific coefficient is unknown, we apply the latest available International Energy Agency (IEA) country specific emissions coefficient.

We aim to reduce GHG emissions throughout the entire supply chain by using our long-cultivated technologies for reducing weight and increasing efficiency. By the early stage of FY2030, we aim to make the amount of our avoided emissions larger than the total GHG emissions. We have also been making efforts toward establishing a life cycle assessment (LCA) evaluation system, which visualizes the environmental burden of a product across its entire life cycle. Through these efforts, we aim to reduce GHG emissions throughout the entire supply chain. In FY2023, we established a meeting to promote LCA, under which we are advancing Groupwide LCA initiatives.

Trends in total GHG emissions and avoided emissions

In FY2025, our avoided emissions were 3.24 million tons-CO₂e.

• *Avoided emissions are calculated as the contribution of the GHG reduction effect downstream in the supply chain from the use of our products.
• *Total GHG emissions are calculated for Scope 1, Scope 2, and Category 1 (Purchased goods and services), Category 2 (Capital goods), Category 3 (Fuel- and energy-related activities not included in Scope 1 and Scope 2), Category 4 (Upstream transportation and distribution), Category 5 (Waste generated in operations), Category 6 (Business travel), and Category 7 (Employee commuting) in Scope 3.

We have set a KPI pertaining to two-thirds of our total supply chain GHG emissions and are working to reduce these emissions across the entire supply chain.

Trends in supply chain GHG emissions

In FY2025, supply chain GHG emissions were 2.44 million tons-CO₂e.

• *GHG emissions are calculated with the Greenhouse Gas (GHG) Protocol as reference. The amount of GHG emissions equivalent to the amount of energy sold to other companies has not been deducted from this data. With regard to coefficients for fuel, we use emissions coefficients based on the Law Concerning the Promotion of the Measures to Cope with Global Warming. As for emissions coefficients for electricity, we use standard emissions coefficients of individual electric power companies for power purchased in Japan. For power purchased overseas, we use power company specific coefficients, in principle. However, in cases where the power company-specific coefficient is unknown, we apply the latest available International Energy Agency (IEA) country specific emissions coefficient.
• *Targets Category 1 (Purchased goods and services) of Scope 3 emissions. However, this excludes Category 1 emissions related to products purchased for resale in the Fibers & Products Converting Business. Calculated by multiplying the purchase weight or purchase amount of purchased goods and services by the emission intensity per unit of weight or amount. The emission intensity per unit of amount is based on the unit data from the Ministry of the Environment's "Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver.3.6) (April 2026)" (Emission Unit DB V3.6). The emission intensity per unit of weight is based on the unit data from the Ecoinvent Database (operated by the Ecoinvent Association, v3.12) or the LCA for Experts (GaBi) Database (operated by Sphera, EF3.1).

CO₂ emissions from logistics operations in FY2025 amounted to 6.28 thousand t-CO₂, a decrease of 0.203 thousand t-CO₂ from FY2024. In FY2025, total ton-kilometers increased (up 1,419 thousand ton-kilometers year on year) due to higher imports of raw materials for the Resin & Plastics Processing Business and increased sales volumes in the Battery & Semiconductor Solutions Business. However, because imported raw materials were delivered through the ports closest to the respective manufacturing sites, which minimizes drayage distances, and because the increased cargo volume was transported with high loading efficiency (generally at full truckloads), the Group's CO₂ emissions intensity for logistics operations decreased by 0.008 compared with the previous fiscal year. The CO₂ emissions intensity per thousand ton-kilometers (t-CO₂/thousand ton-kilometers), expressed as an index with FY2011 set at 1, was 1.30. In FY2026, we will continue to promote initiatives such as container round use, the use of larger vehicles to expand consolidated transportation, higher truck loading efficiency, modal shift, and joint transportation and delivery, while striving to further reduce CO₂ emissions intensity.

Trends in CO₂ emissions in the logistics sector

• *The scope of aggregation is as follows:
  FY2011: Teijin Limited (excluding the aramid fiber business), Teijin Film Solutions Ltd., and the former Teijin Fiber Co., Ltd.'s apparel business that was consolidated with Teijin Frontier Co., Ltd.
  Since FY2022: Teijin Limited, Teijin Frontier Co., Ltd., Teijin Pharma Limited, and Teijin Cordley Limited. (*)Teijin Engineering Ltd. is not included.
  (*) In FY2024, the Composites Business Unit was added to Teijin Limited.
  (*) In FY2025, the Battery & Semiconductor Solutions Division was added to Teijin Limited.
• *CO₂ emissions in the logistics sector are calculated in accordance with the revised Act on the Rational Use of Energy.