Reduce Environmental Impact

• Energy/Atmospheric Release
• Water/Emission
• Product Stewardship

Basic Approach

The Olympus Group is implementing a variety of environmental activities while assessing the environmental impact of its business activities with precision and with awareness of the scale of the impact on and risk to the environment. Also, following the diversification in our suppliers and with an awareness of climate change as a major environmental issue impacting our business activities, we continue to implement measures to assess information on energy conservation and regulations on reducing greenhouse gas emissions and responding to sudden flooding damage. At the same time, we actively develop and market environmentally conscious products that contribute to resolving issues with climate change and water risk.

Material Balance（FY2024）

Energy/Atmospheric Release

Internal (Scope 1, 2) Results

FY2024 Targets	FY2024 Results	Main Measures	FY2025 Targets
Greenhouse gas emissions: reduced by 55% compared to FY2020 Renewable energy rate: 75%	Greenhouse gas emissions: reduced by 51% compared to FY2020 Renewable energy rate: 78%	Ongoing implementation of manu facturing improvement activities Introduction of energy saving eq uipment Ongoing implementation of ener gy-saving activities on a daily ba sis, including switching off lights and adjusting air-conditioning temperatures Introduction of environmentally c onscious cars Effective use of renewable energy	Greenhouse gas emissions: reduce by 60% compared to FY2020 Renewable energy rate: 85% (FY2026 Greenhouse gas emissions: reduce by 65% (compared to FY2020) Renewable energy rate: 90%)

The Olympus Group set a target of achieving carbon neutrality for greenhouse gas emissions from its site operations (Scope 1 and 2) by FY2031. While continuing to promote manufacturing improvement activities and energy-saving measures, we are working to reduce greenhouse gas emissions by promoting the introduction of renewable energy at our operation sites. In addition, at sites where energy use is high, we are promoting initiatives by appointing our own experts and establishing a system to promote energy conservation.

In FY2024, continual improvements in manufacturing, energy-saving measures, the updating of company cars to environmentally conscious cars and the use of renewable energy were implemented at its sites around the world. As a result of these initiatives, greenhouse gas emissions in FY2024 were 51% lower than in FY2020 (compared to 46% in the previous year), the renewable energy use rate vis-á-vis the total electric power consumption increased substantially to 78% (compared to 72% in the previous year).

As part of major initiatives, we promoted energy conservation, which included reducing energy loss by using air leakage measuring instruments to identify air leaks and implementing countermeasures at each manufacturing site in Japan. Aizu Olympus underwent an energy conservation audit conducted by external specialists to help it uncover energy-saving measures that would be difficult to detect in-house.

For broader use of renewable energy, studies are focusing on widespread adoption, economic feasibility and other factors in each country. Olympus Terumo Biomaterials Corporation’s^*1 Mishima Plant in Japan, Olympus Surgical Technologies America’s (Gyrus ACMI, Inc.) Redmond site in the Americas, and Olympus Medical Products Czech spol s.ro. in Europe converted 100% of the electricity they use to electricity derived from renewable energy.

When building new sites or renovating existing sites, Olympus also constructs structures that take the environment into consideration. In the buildings of the newly constructed Nagano Facility in Japan, we introduced electricity derived 100% from renewable energy sources. The facility also electrified all air-conditioning equipment, introduced solar power generation systems, and furthered energy conservation through the introduction and system management of electricity monitors, while furthering the transition to energy-saving operations through the introduction of multiple sensors in cleanrooms. Additionally, in Europe, we newly installed and commenced using a solar power generation system in the buildings of Olympus Medical Products Portugal, Unipessoal LDA, a medical repair site constructed in 2023.

Olympus are also engaged in initiatives to decarbonize the gas used at operations sites, introducing carbon neutral gas^*2 at the Hachioji Facility from April 2021 and at the Shirakawa Facility from October 2023 (contributing to a reduction of approximately 1,600 tons of CO₂ by converting to carbon neutral gas).

We are committed to actively contributing to the reduction of greenhouse gas emissions by choosing environmentally conscious energy sources to achieve carbon neutrality by FY2031. In FY2025, this will include installing solar power generation systems at Olympus Vietnam Co., Ltd. (OVNC); converting electricity used at Olympus Corporation of the Americas’ (OCA) Center Valley and Breinigsville sites and Olympus Surgical Technologies America’s (Gyrus ACMI, Inc.) Westborough site to electricity derived from renewable energy sources; and expanding the introduction of carbon neutral gas at production sites in Japan.

*1 Our Orthopedic Business, including Olympus Terumo Biomaterials Corporation, was transferred to Polaris Capital Group effective from July 12, 2024.

*2 Carbon neutral gas: A gas used in the offsetting of CO₂ generated in the processes from extraction to combustion of gas to be used with carbon credits created by environmental conservation projects.

New Building Using Environmentally Conscious Design at the Nagano Facility

Solar panels installed on the roof can be seen in the center of the photograph (total generating capacity of 180 kW)

Green Energy Certificates

Logo for the Carbon Neutral LNG

Greenhouse Gas Emissions/Intensity (Scope 1, 2)

★ Indexes certified by external assurance.

External (Scope 3) Results

The Olympus Group ascertains and calculates greenhouse gas emissions throughout the entire supply chain for each category and is taking action to reduce greenhouse gas emissions in the entire supply chain through green procurement, improvement of logistical efficiency, development of environmentally conscious products, and other measures. In addition, we encourage the suppliers with which we do business to set voluntary targets for the reduction of greenhouse gas emissions as an environmentally conscious agenda item and to undertake initiatives for continuous reductions of emissions. Once a year we also investigate the status of initiatives to ascertain, set targets for, and reduce greenhouse gas emissions of these suppliers through a web-based company survey system. These efforts have been highly evaluated, and Olympus was selected by CDP,^* an international non-profit organization, as a CDP 2022 Supplier Engagement Leader, the highest rating in the Supplier Engagement Rating (SER). This was the second consecutive year in which Olympus was selected.

As shown in the graph, Scope 3 greenhouse gas emissions account for 90% or more of all Olympus Group supply chain greenhouse gas emissions (Scope 1, 2, and 3). Among Scope 3 emissions, the percentages of upstream greenhouse emissions from purchased goods and services (category 1), capital goods (category 2), and upstream transportation and distribution (category 4) are extremely high.
For this reason, the Olympus Group has set a short-term target, for Scope 3 alone, of having 80% of our suppliers by emissions covering purchased goods and service, capital goods, and upstream transportation and distribution will have science-based targets by FY2028, and is promoting initiatives in this area, toward achievement of our long-term target of net-zero greenhouse gas emissions by 2040.

In FY2024, we address purchased goods and services (category 1), capital goods (category 2) and upstream transportation and distribution (category 4) by analyzing and evaluating the impact of CO₂ for each supplier with which we do business, and are furthering the following initiatives, with around 30% of our suppliers having completed or committed to setting science-based targets for greenhouse gas reductions

Purchased goods and services (category 1)

We held briefing sessions for 25 priority suppliers in Japan, requesting that they ascertain their greenhouse gas emissions and set environmental targets in line with the 1.5°C target of the Paris Agreement, towards the achievement of net zero, as well as requesting their cooperation in the promotion of initiatives to reduce emissions. As part of this initiative, we held individual meetings with suppliers who wished to do so, and hosted workshops on methodologies to ascertain, and set targets for, their greenhouse gas emissions.

Upstream transportation and distribution (category 4)

We are undertaking initiatives to improve data accuracy by obtaining greenhouse gas emissions data directly from international logistics forwarders. In addition, we are facilitating reductions in CO₂ emissions by actively promoting a modal shift from air to sea for major transportation routes, including from the Hong Kong warehouse to Olympus Europa SE & Co. KG (OEKGOE) while shortening transport distances by eliminating shipments via the Hong Kong warehouse and directly shipping items for shipments from Olympus Vietnam Co., Ltd. (OVNC) to Olympus Corporation of the Americas (OCA).

In the future, we will continue our efforts to ascertain and manage greenhouse gas emissions throughout the supply chain and collaborate with suppliers to set voluntary reduction targets, support decarbonization efforts, and reduce greenhouse gas emissions.

* CDP is an international non-profit organization founded in the United Kingdom in 2000. CDP collects, analyzes and evaluates information on the environmental activities of major companies around the world, and discloses the results of these to institutional investors

Greenhouse Gas Emissions (Scope 3)

★ Indexes certified by external assurance.

ESG Data

Water/Emission

Water Use/Wastewater Results

FY2024 Targets	FY2024 Results	Main Measures	FY2025 Targets
Water use efficiency: improve compared to FY2023	Water use efficiency: improved by 2.8% compared to FY2023	Improvements in water use processes Implementation of measures against water leakage during equipment inspections Implementation of secondary use of water	Water use efficiency: improve compared to FY2023 (FY2026 water use efficiency: improve compared to FY2023)

The Olympus Group uses water mainly in production processes, such as for cleaning components and cooling, as well as in its dining halls. We implement thorough wastewater control by adopting stricter standards than the legal requirements in each region, while setting targets for water use efficiency and furthering initiatives to reduce water consumption and wastewater emissions at those sites with high levels of water consumption. We are also acting to conserve water resources under collaborations with local communities at each site. Through these initiatives we have achieved a 2.8% improvement in water use efficiency in FY2024 compared to FY2023.

As part of major initiatives, at sites in Japan, Aizu Olympus has reduced water consumption by improving flow volumes for water used for cleaning in the manufacturing process, while Aomori Olympus has also reduced utilities water consumption by switching to water-saving toilets. In Europe, Olympus Medical Products Portugal, Unipessoal LDA introduced a water treatment system for industrial wastewater, and reuses all treated water to water gardens, thereby endeavoring to effectively use water resources.
For cooperation with local communities, Olympus Surgical Technologies America (formerly Gyrus ACMI, Inc.) in the U.S. received a Silver Award^* in recognition of efforts to maintain compliance with the industrial wastewater discharge permit requirements set by King County, Washington.
In addition, we are raising awareness of the importance of conserving water resources and of water-saving initiatives via awareness-raising programs for all employees.
In FY2025, with the objective of again improving our water use efficiency compared to FY2023, we will promote water-saving initiatives through improvements to facilities and manufacturing processes as well as the secondary use of water.

* Presented to companies that have met the standard of the Silver Award set in the program of industrial wastewater discharge permit requirements by King County, Washington.

Commitment-to-Compliance Award

Water Use

★ Indexes certified by external assurance.

Water Use

ESG Data

Wastewater Results

ESG Data

Waste Emissions Results

FY2024 Targets	FY2024 Results	Main Measures	FY2025 Targets
Waste recycling rate: at least 85%	Waste recycling rate: 84%	Reduction of process defects Promotion of recycling by thorough separation Promotion of reusing package materials Extracting valuable materials from wastes	Waste recycling rate: at least 86% (FY2026 waste recycling rate: at least 87%)

The Olympus Group is working continually on reducing losses in manufacturing processes by making improvements to them and efficient use of resources, including thorough waste separation to reduce waste discharge, extract valuable materials and promote recycling. In FY2024, the waste recycling rate was unchanged from the previous year, at 84%.

As part of major initiatives, at sites in Japan, we promoted the conversion of scrap metal from fixed assets into valuable materials at the Hinode Plant and the recycling of work clothes at Aizu Olympus.
In the Americas, Olympus Surgical Technologies America Inc. is promoting the recycling of PPE waste (personal protective equipment used at medical facilities, etc.) at its Bartlett site. In addition, the Bartlett site signed up to the “Tennessee Recycling Coalition”^* to explore new ways of recycling, develop and expand the reuse and recycling market, and continue to study ways to further reduce waste. The San Jose site promoted the reuse of package cushioning materials and the Redmond site promoted the conversion of waste into compost. Olympus Vietnam Co., Ltd. (OVNC) optimized its waste disposal by means of undertaking a consideration of appropriate waste processing and disposal contractors and a review of waste disposal methods.
In response to hazardous waste, we are promoting substitution with low hazard materials and recycling, and although the volume of activities increased significantly in FY2024, emissions levels remained largely unchanged from FY2023.

The Olympus Group outsources the appropriate processing and disposal of those wastes generated that are difficult to reuse in-house to specialized waste processing and disposal contractors.
In Japan, we implement on-site inspections of industrial waste processing and disposal contractors to coincide with the conclusion of new contracts or once every three years, to safeguard against illegal or improper disposal by waste processing and disposal contractors, and thereby confirm that appropriate outsourced waste processing and disposal is being carried out.

We will continue to seek out novel recycling methods and actively promote further measures to reduce the amounts of waste generated toward achieving a waste recycling rate of 86% or more in FY2025.

* Tennessee Recycling Coalition: A non-profit organization dedicated to promoting recycling and sustainable materials management practices in Tennessee, U.S.

Recycling of PPE waste (personal protective equipment at medical sites, etc.)

Promoting waste separation and composting

Waste Emission/Landfill

ESG Data

Hazardous Waste Discharged

ESG Data

Waste Emission/Landfill

★ Indexes certified by external assurance.

Chemical Substance Safety and Control

FY2023 Results	Main Measures
Emissions and Movements of PRTR Class 1-Designated Chemical Substances: Reduced by 1% (compared to FY2020)	Substitution of PRTR-designated chemicals with other substances through material developments Reduce usage of PRTR-designated chemical substances Installation of exhaust gas treatment systems Risk assessment and substitution of chemical substances

The Olympus Group is striving for appropriate management and emissions reduction of chemical substances subject to the PRTR regulations and volatile organic compounds (VOC) in order to minimize the impact on people and the environment. In workplaces at which chemical substances are used, we are substituting with safer chemicals and implementing risk reduction measures through environmental impact assessments and chemical risk assessments prior to the introduction of new chemical substances.

Emissions and Movements of PRTR Class 1-Designated Chemical Substances

	FY2020	FY2021	FY2022	FY2023	FY2024
Emissions and Movements of PRTR Class 1-Designated Chemical Substances	17	13	12	10	10

* Scope: Manufacturing and development sites in Japan

Volatile Organic Compound (VOC) Emissions

	FY2020	FY2021	FY2022	FY2023	FY2024
Volatile Organic Compound (V OC) Emissions (t)	67	39	41	45	47

* Scope: Manufacturing and development sites in Japan

Product Stewardship

Product stewardship refers to initiatives to ensure the quality and safety of products and packaging at all stages of their life cycle (development, raw material procurement, manufacturing, transport, use, repair, disposal, and recycling), and to minimize the risk of impacts on people and the environment.

The Olympus Group pursues the environmentally conscious design (eco-design) of products and packaging materials in product development for patient- and environmentally-friendly sustainable healthcare. In FY2004, Olympus established the “Olympus Eco-Products Management Rules,” as internal standards on the environmental consciousness of its products and packaging materials, and has promoted the development of products (Olympus Eco-Products) that satisfy these standards. However, we came to feel that the currently ongoing initiatives were insufficient in the context of the further intensification of environmental issues such as climate change and resource depletion. We also recognized that expediting our initiatives to improve “Product Sustainability” was one of the materiality topics in maintaining our leadership in the global MedTech industry. We have therefore committed to “achieving a circular economy through product stewardship,” instituting a dedicated promotional unit within our development functions, and are promoting initiatives in the following seven priority areas in the environment, society, and governance (ESG) domain as part of our new company strategy announced in May 2023.

In FY2024, we undertook the following initiatives, mainly in the areas of “Product Design,” “Packaging Design,” and “e-IFU.”

Product Design
We are currently furthering preparations for the establishment of guidelines for the specific implementation of eco-design of products, with these guidelines scheduled to become effective during FY2025

Packaging Design
For the eco-design of packaging, we are currently undertaking considerations for the simplification of external labelling and a review of packaging materials.
These can be expected to reduce the amount of ink used in external labelling and to improve recyclability after use. For the review of packaging materials, we are considering the use of recycled materials with low environmental impacts while remaining conscious of the safe transport of products, endeavoring to reduce usage amounts to promote the effective use of resources.

e-IFU
We are undertaking considerations on the digitization of instructions manuals to reduce the amounts of paper used therein, in compliance with laws and regulations in each locality. We thereby aim to achieve savings on paper resources and to reduce CO₂ emissions during transportation, while prioritizing product safety and improving usability.

Life Cycle Assessments of Existing Products (Environmental Consciousness Assessments; Carbon Footprints [CFPs])

The Olympus Group performs evaluations of environmental impacts at the product development stage, for each stage of a product's life cycle from procurement through manufacture, transport, use and final disposal, to identify considerations in their environmental consciousness for each product category and promote environmentally conscious measures.

In FY2024, we conducted case studies for five major product models at Olympus to quantitatively assess their greenhouse gas emissions over the entire lifecycle of these products (carbon footprint: CFP). This provided us with many insights toward more effectively designing for environmental consciousness going forward, with the stages at which impacts occurred and the magnitudes of these impacts differing according to the product category.

*We calculate the CFP in question in accordance with the approach set out in the ISO. However, results will differ depending on the scope of calculations and the basic units used. Accordingly, a comparison of the numerical values with equivalent products from other companies is not possible.

In addition, the EVIS X1 CV-1500 (Video System Center), which represents the latest model, combines the functions of the EVIS EXERA III CV-190 (Video System Center) and CLV-190 (High Intensity Light Source) into a single unit. Calculations indicate that, this combination into a single unity contributes to a significant reduction in greenhouse gas emissions when compared to using the Video System Center and High Intensity Light Source separately.

In FY2025, we will expand the scope of products subject to CFP calculations and home in on the key factors in reducing greenhouse gas emissions. At the same time, we are committed to continuously promoting initiatives involving, for example, incorporation of these considerations into the design and development process.

Participation in the Healthcare Plastic Recycling Council (HPRC)

In April 2024, the Olympus Group joined the Healthcare Plastic Recycling Council (HPRC) in the United States. By joining the HPRC, Olympus will forge partnerships with other member organizations in the value chain, and is also anticipating the opportunity to gain technical knowledge of the industry while engaging with clients. This will include, for example, gaining a deeper understanding of the potential, and technical challenges, in the recycling of healthcare plastics^* and producing models on the potential to recycle products and packaging in which plastics are used on a global scale. The recycling of healthcare plastics is consistent with our ESG objectives of reducing Scope 1, 2, and 3 CO₂ emissions and improving the recyclability of medical devices.

*Healthcare plastics refers to plastic materials used in the healthcare sector. Healthcare plastics are used in the manufacture of a wide range of medical devices and instruments, as well as in pharmaceuticals packaging and medical equipment.