Disclosure Based on TNFD Recommendations

Basic Approach

Guided by the Duskin Green Vision 2050, we embed biodiversity conservation and respect for natural capital into our corporate management. Aligned with the TCFD (Task Force on Climate-related Financial Disclosures) recommendations and guided by the TNFD (Taskforce on Nature-related Financial Disclosures) framework, we will strengthen our efforts to identify, assess, and manage natural capital-related dependencies, impacts, risks, and opportunities.

Governance

We have established a governance structure consistent with climate-related issues (TCFD). The Board of Directors and its advisory body, the Sustainability Committee, oversee risks and opportunities related to natural capital and biodiversity. In addition, we have established a sustainability promotion system where departments related to environment, procurement, and quality, together with IR, collaborate to identify issues and consider responses based on the TNFD-recommended LEAP approach (Locate, Evaluate, Assess and Prepare). We also incorporate advice from external experts to enhance transparency and effectiveness.

Strategy

Our business relies heavily on natural capital, including water, forest resources, and agricultural products. We have identified the following priority areas:

• Water Resources: Essential for cleaning rental products and factory operations. We continue to improve water intake and wastewater quality
• Plastic Packaging Materials: To help realize a circular economy, we promote recycling and the use of alternative materials.
• Primary Commodities (Palm Oil, Paper, etc.): We are strengthening procurement policies and considering measures such as zero deforestation and expanded use of certified materials.

Key Themes	Main Risks & Dependencies	Main Responses & Opportunities
Water resources	Water intake and discharge in cleaning and manufacturing	Introduce water circulation and reuse systems; improve wastewater quality
Plastic packaging materials	Use in packaging and hygiene products	Reduce, substitute, and recycle plastic materials
Primary commodities (palm oil, paper, etc.)	Forest conversion and ecosystem impacts	Promote zero deforestation and use of certified materials

Through these initiatives, we aim to strengthen resilience against nature-related risks (e.g., stricter regulations, water shortages, raw material procurement challenges) while creating new business opportunities (e.g., environmentally friendly products, expansion of circular products and services).

Risk and Impact Management

• Direct Operations: Assess water, wastewater, and ecosystem impacts at each factory and business site, and implement improvement plans.
• Supply Chain: Enhance traceability for raw materials related to forests and farmland.
• Promote a phased approach to reducing impacts on natural capital based on the principles of avoidance, minimization, restoration, and offsetting.

Indicators and Targets (KPIs)

In addition to climate-related targets (disclosed under TCFD), we have introduced indicators for biodiversity and natural capital:

Indicator	Target
Greenhouse gas emissions	46% reduction by FY2030 compared to FY2013
Renewable energy ratio	Increase to 50% by FY2030
Plastic reduction	Reduce the use of fossil-based plastic by 25% compared to FY2020
Water resources	Improve water intake, wastewater quality, and recycled water usage
Forest resources	Increase certified material usage and consider zero-deforestation procurement policies

Collaboration with Stakeholders

Biodiversity conservation cannot be achieved by one company alone. We work with local communities, governments, non-profit organizations, and suppliers to protect natural capital. In priority areas related to water and forests, we engage in dialogue with local residents and stakeholders to ensure sustainable use.

Future Initiatives

• Strengthen Supply Chain Traceability
Improve understanding of sourcing and production regions, and promote sustainable procurement through collaboration with suppliers.
• Enhance Disclosure through Dialogue with External Evaluation Bodies
Advance transparent, location-based disclosures in line with TNFD recommendations.

Through these efforts, we will fulfill our responsibility as a company that coexists with nature and strive to enhance corporate value toward a sustainable future.