Environmental Aspects 3.2 Climante Change Response Strategy 3.2.1 Basic Approach In December 2021, the Fujifilm Group set new CO emissions reduction targets to build a decarbonized society. These new 2 1 targets mean that we will achieve net zero CO emissions from our energy consumption* by fiscal 2040 by maximizing 2 the efficiency of our energy use and by using renewable energy sources. We will also reduce CO emissions across the 2 entire product lifecycle—from the procurement of raw materials to the manufacture, transportation, use and disposal—by 50% (compared to fiscal 2019 levels) by fiscal 2030. The new decarbonization targets established by the Fujifilm Group satisfy the 1.5°C goal set out in the Paris Agreement. To achieve these targets, we have established a new Fujifilm Group environmental strategy: “Green Value Climate 2 Strategy.”* Under the strategy we promote manufacturing of lower environmental burden by introducing and utilizing fuels that do not emit CO substantially such as synthetic methane and hydrogen in addition to electric power. Also we promote 2 development and dissemination of products and services with excellent environmental performance. Additionally, we have started internal carbon pricing (ICP) system to accelerate the implementation of these measures in fiscal 2022. We continue to direct our strategy and efforts to initiatives that address the imminent global social issue of climate change. *1 Direct emissions from our manufacturing processes (Scope 1) and indirect emissions due to the use of electricity and steam supplied from other companies (Scope 2). *2 P lease refer to the following site for Green Climate Strategy Environmental Strategy Briefing on April 13, 2022 https://ir.fuji昀椀lm.com/en/investors/ir-materials/presentations/main/0118/teaserItems1/0/tableContents/019/multiFileUpload2_0/link/昀昀_presentation_20220413_001j.pdf 3.2.2 Governance Our activities related to climate change are deliberated on and determined by the ESG Committee, chaired by the president. The Committee is held on a regular basis, and the agenda is then reported to the Board of Directors, who then issue instructions and advice in response to the report received from the ESG Committee to ensure the effectiveness of the process. Issues related to climate change are deliberated on by the ESG Committee as priority risks along with other issues on compliance and other risks (2.2.3 Compliance and Risk Management Promotion Structure). In addition to CO emissions 2 reduction and renewable energy introduction targets, the Committee has decided in the past to participate in climate change-related initiatives, including endorsing the TCFD recommendations, joining RE100 and obtaining SBT validation. In recent ESG Committee meetings, deliberation and decisions were made on introducing internal carbon pricing and information disclosure compliant with a TCFD report. The results were reported to the Board of Directors, where further discussions were held. The ESG indicator reflects the achievement rate of CO emissions reduction against the set target. 2 The Nomination and Remuneration Advisory Committee examined the use of this indicator within the Performance Share Unit Plan to assess directors’ performance and this was accepted by the Board of Directors. 3.2.3 Risk Management The Fujifilm Group has in place an IT system to monitor all group companies’ environmental performance related to climate change. The system enables us to collect emission volumes of greenhouse gases such as CO and CFCs and energy 2 consumption volumes at each of our business sites in various countries and regions and use the data to identify risks. The Energy Strategy Promotion Committee analyzes factors affecting these risks and reports the high-priority issues to the ESG Committee, and consequently supports them in deciding on the appropriate operations. We have utilized internal carbon pricing to evaluate climate-related risks, and have reviewed the anticipated impacts and action required. A scenario analysis based on the TCFD recommendations enables us to identify the risks derived from our environmental performance as well as the risks happening in our supply chain and site locations. We take measures to deal with important issues to be implemented. 73 FUJIFILM Holdings Corporation Sustainability Report 2023