（1）Governance

Our Board of Directors has identified "Contributing to the future of the global environment" as one of the Company's material issues. We have also set climate change targets to reduce GHG emissions by 2030 in line with the indicators and targets described below, and to achieve carbon neutrality by 2050. The Board of Directors receives regular reports from the Carbon Neutrality Committee, chaired by a Director and Senior Corporate Officer, on matters such as annual GHG emissions and the procurement status of electricity derived from renewable energy, and supervises progress toward the above targets. Based on advice from external experts, the Carbon Neutrality Committee's primary responsibilities include identifying climate change risks and opportunities, assessing their impact on the organization, formulating countermeasures, calculating GHG emissions, and drafting GHG reduction targets. The results of the Committee's activities and advice from external experts are also reported regularly not only to the Board of Directors but also to the Risk Management Committee, chaired by the Representative Director and President, which identifies, assesses, prioritizes, and monitors company-wide risks.

（2）Strategy

The Board of Directors has identified "Contributing to the future of the global environment" as one of the material issues in our three-layer materiality structure and is promoting it as an initiative for creating new value. Climate change-related risks have been designated as important risks by the Risk Management Committee, which identifies, assesses, prioritizes, and monitors company-wide risks. In addition, information on megatrends and developments related to climate change opportunities is consolidated by the Corporate Planning Department, and a framework has been established to reflect this information in strategy formulation.

※Positioning of Materiality

In considering climate change-related risks and opportunities, we define the short term as one year, the medium term as three years, and the long term as beyond that, and assume the following as the principal risks and opportunities.

（3）Risk Management

Climate change risks are assessed by the Risk Management Committee, which identifies, evaluates, prioritizes, and monitors company-wide risks, using three axes--impact, frequency, and vulnerability--among many risks, and are identified as important risks. The Carbon Neutrality Committee formulates a risk management plan to mitigate climate change risks, and the Risk Management Committee approves it and regularly reviews progress against the plan. Based on reports from EBRD (European Bank for Reconstruction and Development), GCECA (Global Center on Adaptation), and others, the Carbon Neutrality Committee formulates and discusses response measures for the identified principal climate change-related risks (see the Strategy section) based on advice from external experts, and submits them to the Risk Management Committee, the Corporate Officer Committee, and the Board of Directors according to their importance.
For matters submitted by the Risk Management Committee and the Corporate Officer Committee, the Representative Director and President determine the response. For particularly important matters, the Board of Directors determines the response and supervises the status of risk responses through the periodic reporting described above.

（4）Metrics and Targets

Trends in actual Scope 1, 2, and 3 GHG emissions are disclosed on the following website. The calculation methods and emission factors conform to the Ministry of the Environment's Scope 3 Guidelines, the IDEA (Inventory Database for Environmental Analysis) database, and the GHG Protocol.
https://www.ndk.com/en/sustainability/data

To contribute to efforts to limit the temperature increase to within 1.5°C, we obtained SBT validation with the following reduction targets. We also aim to achieve carbon neutrality by 2050.