Information Disclosure Based on TCFD

The Olympus Group recognizes that climate change is a serious issue that threatens the global environment, as well as having grave implications for the group's business activities. Based on this awareness, we announced our endorsement of the Recommendations of the TCFD in May 2021, as a part of our contribution to building a carbon neutral society and circular economy in our Corporate Strategy. According to the TCFD's recommendations, the Olympus Group will disclose its climate-related financial information in a timely manner.

Governance

Disclosure items	a) Describe the Board of Directors’ monitoring system for climate-related risks and opportunities b) Describe the role of senior management in assessing and managing climate-related risks and opportunities

Governance related to climate change is incorporated into the common sustainability governance system. The ESG Committee, which is led by the ESG Officer and comprises the heads of each Functional Division, deliberates on important measures and monitors their progress. Details of matters confirmed by the ESG Committee are reported to the Group Executive Committee and the Board of Directors, both of which provide advice and guidance to the ESG Committee to ensure the effectiveness of the process. The Carbon Neutrality Working Group has been established under the ESG Committee to consider measures and promote activities across functional boundaries. Also, to reinforce the commitment of management to the ESGs and climate change initiatives, some of the executive officers’ performance-based stock remuneration, a part of our long- term incentive remuneration, is linked to the degree of progress on achieving CO₂ emissions reduction targets from our site operations.

（CDP alignment: C4.1.2、C4.2、C4.3、C4.3.1）

Strategy

Disclosure items	a) Describe the short-, medium-, and long-term climate change risks and opportunities identified by the organization b) Describe the impact of climate-related risks and opportunities on the organization’s business, strategy, and financial plans c) Describe the resilience of the organization’s strategy based on various investigations of climate-related scenarios, including below 2° C scenarios

The Olympus Group identifies risks and opportunities related to climate change for each of the short-term, medium-term, and long-term time frames by using scenario analysis. The influence of climate change on our business activities is analyzed based on 1.5-degree scenario: RCP 1.9 (NZE) (keeping the increase in the global average temperature to below 1.5° C above pre-industrial levels), and the 4-degree scenario: RCP8.5 (where the increase is assumed to be up to 4° C above pre-industrial levels), both of which were presented by the International Energy Agency (IEA). We recognize that the major risks in the short-term period (less than one year) and the medium-term (one to five years), would be the suspension of factory operations and breakdown of supply chains due to natural disasters, together with impairment of assessments or the Group’s reputation among stakeholders due to inadequate responses to climate change or insufficient disclosures. Meanwhile, the risks in the long-term period (five years or more) would be an increase in business costs due to the introduction of carbon taxes and further tightening of greenhouse gas emissions regulations, as well as a decline in competitiveness due to an inadequate response to regulations for the reduction of greenhouse gas in our product sectors.
Although such climate change risks could affect the Olympus Group’s strategy and financial plan, we assume that the scope of impact would be relatively small. As a transition risk, an increase in operational costs accompanying the introduction of a carbon tax, etc. can be expected in the future. However, the impact of this is assumed to be limited as energy costs at factories are minor when considered in terms of overall operational costs. Regarding physical risks, while operations at our own factories could be affected by natural disasters such as typhoons, we have confirmed that all of our factories are located in areas with a low risk of such events. In addition, we have established business continuity plans at each site to ensure business continuity even in the event of an emergency. In terms of supply chains, storms and flooding have occurred on a global scale recently and are expected to have impact on material procurement and product supplies, and accordingly, we are working to establish systems that can ensure production through alternative suppliers.
As a climate change opportunity, we will continue development of environmentally conscious products with energy- saving and other functions, taking the rising requirement for such products, which contribute to greenhouse gas emissions reduction, as a business opportunity. However, we estimate the impact from this opportunity on our business will not be so large because the majority of our products are already small with low energy consumption, and the nature of our products and services are relatively independent from any impact from climate change.

(CDP alignment: C2.1、C3.1、C3.1.1、C3.6、C3.6.1、C5.1、C5.1.1、C5.1.2、C5.3)

List of risks and opportunities based on scenario analysis

Scenari o	Risk or opportunity item		Social change, impact on business	Degree of impact	Time axis	Main initiatives
1.5℃	Transitio n risks	Policy and laws	Expanded regulation or increased obligations concerning existing products, business activities, and information disclosures	Medium	Short term	• Promote environmentally-conscious designs for products, packaging materials, etc. • Implement energy conservation measures and introduce low-carbon energy including renewable energy to reduce CO₂ • Reinforce measures to address environmental issues and expand and enhance information disclosures
		Policy and laws	Expanded carbon taxes and emissions trading^*	Small	Long term
		Changes in technology	Reduction of sales opportunities if the transition to low- carbon manufacturing methods and materials is delayed	Small	Long term	• Promote environmentally-conscious designs for products, packaging materials, etc.
		Changes in markets	Increased costs for energy including fuel needed for business activities as well as raw materials and logistics	Small	Medium term	• Improve manufacturing processes and logistics efficiency • Implement energy conservation measures and introduce low-carbon energy including renewable energy to reduce CO₂ • Reinforce measures to address environmental issues and expand and enhance information disclosures
		Reputation	Impairment of stakeholders’ assessments or the Group’s reputation with stakeholders due to inadequate responses to environmental issues	Medium	Short term
	Opportu nity	Resource efficiency	Lower costs for raw materials and waste as a result of reviewing products and packaging	Small	Medium term	• Promote environmentally-conscious designs for products, packaging materials, etc. • Implement appropriate management of water and waste • Implement energy conservation measures and introduce low-carbon energy including renewable energy to reduce CO₂
		Energy sources	Improvement of stakeholders’ assessments or the Group’s reputation with stakeholders due to cost reductions from higher energy efficiency or broader use of low-carbon energy	Small	Short term
		Products & services	Improved market competitiveness due to development of environmentally-conscious products	Small	Long term	• Promote environmentally-conscious designs for products, packaging materials, etc. • Investigate measures to improve resource circulation through the product lifecycle (product recovery and recycling) • Expand and enhance measures to address environmental issues and proactively disclose information • Implement energy conservation measures and introduce low-carbon energy including renewable energy to reduce CO₂
		Markets	Improvement of stakeholders’ assessments or the Group’s reputation with stakeholders due to promotion of environmentally-conscious products	Medium	Short term
		Resilience	Expansion of business that ensures adaptability to climate change	Small	Long term
4℃	Physical risks	Acute	Disruption of supply chains due to more severe natural disasters	Medium	Short term	• Secure structures for cooperation with suppliers (continuously conduct education and training to enhance the effectiveness of BCP) • Implement optimization measures to ensure supplies of products and services • As flooding countermeasures, identify sites susceptible to flooding and conduct emergency response training
4℃	Physical risks	Chronic	Higher air conditioning costs due to rising average temperatures and lower labor productivity due to changes in the physical condition of employees	Small	Long term

* Projected financial impact calculated based on the carbon tax price in 2030 noted in the World Energy Outlook 2025 report by IEA, in the absence of a strategy to address the issue: approx. 900 million yen/year

Timeline: Short-term: within 1 year, Medium-term: 1 to 5 years, Long-term: more than 5 years
Level of impact: Calculated based on a three-level system, from the perspective of financials, operations, stakeholders, and legal compliance.

Waste Emission/Landfill

Risk Management

Disclosure items	a) Describe the process the organization utilizes to identify and assess climate-related risks b) Describe the process the organization utilizes to manage climate-related risks c) Describe the ways in which the process the organization utilizes to identify, assess, and manage climate-related risks is integrated into the organization’s overall risk management

The Olympus Group uses enterprise risk management methods to collate risks with the potential to impact the Group’s business, and to identify and assess those risks that have a substantial impact on business operations, toward supporting the achievement of our corporate philosophy and corporate strategy. As part of this process, we identify risk items related to sustainability and ESG and manage these risks through the Olympus Group risk monitoring and management system. These risks include those associated with climate change-related regulations and technological changes, as well as those resulting from natural disasters. We prioritize and evaluate the identified risks based on their potential impact and likelihood of occurrence and then formulate countermeasures to manage those risks. For risks that could have a particularly substantial impact on business operations, we periodically monitor the status of risk management across the organization and report the results to the Group Executive Committee and Board of Directors.

Business Risks

Indexes and Targets

Disclosure items	a) Disclose the indicators utilized by the organization to assess climate-related risks and opportunities in accordance with their strategy and risk management processes b) Disclose Scope1, Scope2, and applicable Scope3 GHG emissions c) Explain the targets utilized by the organization to manage climate-related risks and opportunities, and results in relation to those targets

The Olympus Group has set a goal to achieve net zero greenhouse gas emissions (Scope 1 and 2) from our site operations by FY2031, and to source 100% of the electricity used for our site operations from renewable energy by the same fiscal year. Furthermore, we believe that, to contribute broadly to the achievement of a carbon neutral society, we must take steps to reduce not only our own greenhouse gas emissions but also greenhouse gas emissions throughout the supply chain. We have thus set a target of achieving net zero greenhouse gas emissions (Scope 1, 2, and 3) throughout the supply chain by FY2040. In October 2023, we received certification from the Science Based Targets initiative (SBTi) that the Olympus Group's short-term targets and net zero target are consistent with the 1.5°C target set forth in the Paris Agreement.

Targets Certified by SBTi

Long-term target	Achieve net zero GHG emissions (Scope 1, 2, and 3) throughout the entire supply chain by FY2040 (baseline year: FY2020)
Medium-term targets	Reduce GHG emissions (Scope 1 and 2) by 70% compared to FY2020 (baseline year) by FY2031
Medium-term targets	Set GHG reduction targets based on scientific criteria by 80% of our suppliers by FY2028 (on the basis of emissions for purchased goods and services, capital goods, and upstream transportation and distribution)

(CDP alignment: C5.1, C5.1.1, C7.6–C7.8, C7.9, C7.52–C7.55)

See the following pages for details on our various initiatives.

Please check our latest situation in the sustainability pages.

Sustainability