Sustainability | Environment | Kowa Company, Ltd.

●Environmental Policy of Kowa Group

Basic View & Philosophy

We recognize that addressing environmental issues is a concern shared by all humankind and is essential for the business activities and survival of the Company and addressing these issues is something that we take very seriously. We also acknowledge the SDGs adopted by the United Nations and initiatives of the Paris Agreement geared toward realizing carbon neutrality as part of our corporate social responsibility. Through our business activities, we shall work to prevent climate change, polluting our oceans and other forms of pollution while also actively working to contribute to the sustainable development of society.

Policy

Taking into consideration the life cycle of our business activities, products, and services, we shall strive to realize our philosophy and avoid potential risks through business activities that comply with the following environmental policy.

1.Compliance with environmental laws and regulations
We shall comply with environmental laws, regulations and other matters agreed upon by the Kowa Group in our business activities.
2.Environmental conservation and prevention of pollution
- A.Appropriate management of chemical substances: We shall ensure the appropriate management of chemical substances in order to prevent environmental pollution.
- B.Contributing to the creation of a carbon neutral society: We recognize the risk of climate change and to avoid such risk, shall strive to conserve resources and energy as we work to realize a carbon neutral society.
- C.Contributing to the creation of a recycling-oriented society: With the aim of realizing a recycling- oriented society, we shall promote the reduction of waste generation, recycling, and the use of renewable materials through the promotion of environmentally conscious design, and strive for the effective use of resources.
- D.Conservation of biodiversity: We acknowledge that the conservation of biodiversity is a responsibility we have to the next generation and endeavor not to participate in activities that threaten sustainability.
3.Promotion of environmental conservation activities
We shall further promote the development and provision of environmentally friendly products and services that reduce the environmental impact of all our business activities.

March 29, 2022
Chief EMS Officer, Kowa Group

●Environmental Management Structure/System（EMS）

While taking into account conditions of Kowa Group (both external and internal issues) and stakeholders’ needs and expectations, we have implemented an ISO14001:2015-based EMS with the aim of achieving “intended results” including environmental performance improvement.
In order to ensure proper maintenance, continuous improvement and effectiveness, internal audits for the environment led by EMS Office are carried out periodically.

●Environmental Education

In Kowa Group, awareness training is provided once a year for every director and employee as a general rule. The training aims to raise awareness about the following matters:

・The environmental policy, procedure to comply with the policy and importance to conform to the requirements of EMS
・Significant environmental aspects associated with his/her own business activities, related environmental impacts occurring in daily business operations (apparent environmental impacts) or environmental impacts that may occur (potential environmental impacts) and advantages on the environment offered by operation improvement of each worker
・Role and responsibility to achieve conformance to the requirements of EMS
・Environmental problems caused by noncompliance to the determined procedure

●The Carbon Neutrality Declaration

Recognizing the risk of climate change, Kowa Company, Ltd. announced the Carbon Neutrality Declaration in January 2024, with a goal of achieving carbon neutrality as an important issue in the environmental measures.
We will take climate change countermeasures across the organization to reduce greenhouse gas emissions by at least 46% as compared with FY2013 by FY2030 and successfully achieve carbon neutrality by FY2050.

●Greenhouse Gas (GHG) Emissions　［Kowa Company, Ltd.］

In addition to aiming to be carbon neutrality by FY2050, we will strive to reduce our environmental impact throughout our supply chain.

		（Unit：t-CO₂）
	FY2022	FY2023
Scope１	11,369	10,379
(From vehicles for business use)	(3,482)	(3,062)
Scope２	22,966	21,578
Total	34,335	31,957

・CO₂ emissions by GHG protocol category

Scope1･･･Including emissions from vehicles for business use.

・CO₂ emission factors for fuels and steam

The latest CO₂ emission factors stipulated by the Act on Promotion of Global Warming Countermeasures are used.

・CO₂ emission factors for electricity

Emission factors (adjusted emission factors) for each electric power provider are used.

We are considering Scope3 calculation on a non-consolidated basis in order to understand our supply chain emissions through our business.

●Approach to Biodiversity

Kowa Group is promoting sustainable business activities and places high importance on the biodiversity as a criterion of sustainability.

●Collaboration with Outside Initiatives

Kowa Company, Ltd. has expressed its support for Keidanren Initiative for Biodiversity Conservation.

※Keidanren Initiative for Biodiversity Conservation Initiative in which the logos and “activity policies and actual cases” of companies and organizations which adopt and take the initiative to achieve the plural items among 7 items of, and/or agree with the whole idea and purpose in the “Declaration of Biodiversity by Keidanren and Action Policy (Revised Edition)” are posted in the booklets and website of Keidanren, so that the conservation activities and the “faces” of the companies and organizations taking the initiative are disseminated domestically and internationally.

Keidanren Initiative for Biodiversity Conservation

●Commitment to Environmental Conservation

As part of our commitment to environmental conservation, Kowabo Company, Ltd., a member of the Kowa Group, obtained FSC® certification on September 16, 2021.
The use of FSC-labeled packaging is a way for our customers to show their contribution to forest protection.

●Approach to Resource Recycling

Kowa Group will contribute to realizing a recycling-based society to actively promote effective use of waste based on the environmental policies.
We will make efforts to save resources by promoting effective use of finite resources, for example, reuse of waste generated in plants as raw materials for new products.

●Waste Management・Recycling Promotion

In addition to the recycling activities conducted in Kowa Group, we pay recycling fees as a specified business operator in accordance with the Containers and Packaging Recycling System in Japan.
For more details of the system, refer to the website of the Japan Containers and Packaging Recycling Association.
The Japan Containers and Packaging Recycling Association