Asahi Kasei Corp

Asahi Kasei consider green transformation (GX), which focuses on initiatives related to climate change, to be an important management issue, and we are working toward GX by positioning it as one of the core subjects of our management strategy. Our climate change policy and high priority concerns are deliberated on and determined by the Board of Directors, while the Management Council and other executive decision-making bodies discuss and decide on specific matters. In fiscal 2023, we decided to participate in the GX League, and set targets for reducing domestic GHG emissions and a non-fossil ratio target for electricity purchased in Japan. Main deliberations and decisions: * GHG emissions reduction targets, results, and measures * Medium-term management plan, progress/results, and measures * Investment plans (taking point of view regarding GHG emissions into account), etc. In formulating the medium-term and annual management plans, individual discussions are held between business and staff divisions, where plans are formulated as a group for GX, etc., which are then discussed and decided by the Management Council and Board of Directors. In order to promote these decisions by the Board of Directors and Management Council at a business level, we have a Sustainability Committee chaired by the President, where members of executive management share and discuss issues concerning sustainability, including climate change. Minutes of the committee meetings are reported to the Board of Directors, which discusses topics including appropriate company-wide initiatives. The Carbon Neutrality Project, which is led by the Executive Officer for GX, reviews scenarios and specific measures to achieve our targets for reducing GHG emissions. In the review process, the President, Executive Officer for Corporate Strategy, and others work to strengthen the content of the program, while regularly confirming its direction. Moreover, we launched the Circular Economy Project in April 2024 in order to accelerate the transition to a circular economy, which is closely linked to action on climate change. This project examines our company policies and direction related to the circular economy. In the Material and Homes sectors, the sustainability departments of each business unit promote initiatives toward carbon neutrality and a circular economy in cooperation with business units and the company-wide sustainability functions. Sustainability Committee * Sharing, discussion, and alignment of all aspects of ESG, including climate change * Chair: Asahi Kasei President Committee members: Executive Officer for Technology Functions, Executive Officer for Business Management Functions, Executive Officers for the 3 business sectors * Main topics in fiscal 2023: carbon neutrality, circular economy, natural capital, human rights, non-financial disclosures, etc. Global Environment Committee * Sharing, discussion, and alignment of all aspects of the E (Environment) of ESG * Chair: Executive Officer for Technology Functions (Environment, Safety, Health) Committee members: Presidents of SBUs, Senior General Manager of the Production Center, Senior General Manager of Corporate Production Technology, Senior General Manager of Corporate Research and Development, and others Carbon Neutrality Project * Sharing and discussing 2030 GHG emission reduction targets, consolidating efforts towards 2050 carbon neutrality, and scenario analysis * Project oversight: Executive Officer for GX, Project General Manager Circular Economy Project * Examination of company policies and direction related to the circular economy * Project oversight: Executive Officer for GX, Project General Manager

Attach commitment or position statement(s)[…]Asahi Kasei Homes, an Asahi Kasei Group company, is a corporate member of the Japan Climate Leaders' Partnership (JCLP). The JCLP is a uniquely Japanese group of enterprises established in 2009 with the recognition that the country's industrial sector needed to develop a healthy sense of urgency and proactively launch action toward the realization of a sustainable decarbonized society. By leading the transition to a decarbonized society, JCLP member companies seek to act responsibly on behalf of society. In one JCLP initiative, we presented the Prime Minister of Japan with an "Opinion Paper on Overcoming the Climate Crisis with a New Kind of Capitalism.† In this statement, we called for the advancement of systems based on the "principle of prioritizing renewable energy† and for the "correction of external diseconomies† through carbon pricing, to serve as the foundation for capitalism.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]All external engagement is managed by the Global Environment Committee (members: officers of group operating companies), Global Environment Action Committee (members: RC Promoters of operating companies (General Manager of Corporate ESH & QA)) and the RC Promotion Committees of operating companies. Engagement with third parties is reported beforehand to the respective committees, the chairs of which provide guidance as needed to ensure that the engagement is consistent with overall company strategy.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]All our collaborative activities are centrally monitored by the Corporate Planning Department, which formulates and promotes our Medium-term Management Plan, including the climate transition plan, and they are harmonized to avoid any contradictions. In implementing the activities, we collaborate with all relevant departments within the company, seeking management-level judgment on any important matters.