Initiatives for Climate Change

• Basic Approach
• Environmental Goals and Progress

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.

Information Disclosure Based on TCFD

Environmental Goals and Progress

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.

ESG Data

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

Greenhouse Gas Emissions (Scope 3)

★ Indexes certified by external assurance.

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