Promoting Climate Change Countermeasures

Basic Concept

The Nisshinbo Group's Business Conduct Guidelines include Awareness and Concern towards its environmental impact. The Group is committed to reducing greenhouse gas emissions and providing decarbonized technologies, products, and services to faithfully realize a secure and safe society for all people.

【Main measures】

• ① The Group is advancing reduction of greenhouse gas emissions through ISO 14001 activities.
• ② The Group is advancing activities to reduce Scope1 (in-house emissions) and Scope2 (off-site emissions of electricity, etc.) at manufacturing sites, and to establish environmentally friendly facilities.
• ③ The Group is promoting new solar power generation facilities and switch to electricity derived from renewable energy sources.
• ④ In the Wireless and Communications business, the Group is offering products for adaptation to climate change. These include dam and river management systems to prevent flooding damage and disaster prevention notification and communication systems to protect local residents in the event of a disaster.
• ⑤ In the Micro Devices business, the Group is expanding equipment to reduce the emissions of PFCs (perfluorocarbons) and other gases^* from semiconductor production facilities.
• ⑥ The Group is developing, manufacturing and sell ingseparator materials, core components of the fuel cells that contribute to the development of a hydrogen-based society, in the Chemicals business.

* PFCs: Fluorinated greenhouse gases used in dry etching and other processes in semiconductor manufacturing

Please refer to "Promotion System" in "Environmental Management" for the promotion system.

• Promotion System

Specific Initiatives of The Nisshinbo Group

6th Sustainability Promotion Plan (to be achieved by FY2027)

• ① Improvement of the sales percentage by the products that contribute to the development of the sustainable society: 65% or more of sales
• ② Reduction of greenhouse gas emissions: Reduce by 53% or more compared to FY2014

The Nisshinbo Group has identified the promotion of environmental management as a key priority in its "6th Three-Year Environmental Goals (6th Sustainability Promotion Plan)," which is set to be achieved by FY2027. To advance the "Improvement of the sales percentage by the products that contribute to the development of the sustainable society^*1 " and the "reduction of greenhouse gas emissions^*2 ," the Group has established the above targets and KPIs.

*1 Products that contribute to a sustainable society: Company standards

*2 Greenhouse gas emissions are targeted by Scope1+Scope2

Sales of products that contribute to a sustainable society have been growing steadily, accounting for 53% of total sales in FY2025, which is a 9% increase from the previous fiscal year. The breakdown of those products as a percentage of total sales is as follows: disaster prevention and mitigation-related products in the Wireless and Communication business (11%); low-power semiconductor products in the Micro Devices business (8%); and no-iron shirts in the Textiles business (2%).

Against the backdrop of increasingly more severe disasters, the Group anticipates that the promotion of digital transformation (DX) for disaster prevention through public-private partnerships will accelerate, which will lead to growing demand for Wireless and Communications solutions. Since Nisshinbo views products in the disaster prevention and mitigation sector as contributing to a sustainable society, the Group expects that expanding sales of these products will further increase the proportion of sales accounted for by "the products that contribute to the development of the sustainable society."

The Nisshinbo Group’s greenhouse gas emissions for FY2025 were reduced by 57% compared to FY2014, and the Group has already achieved its FY2027 target. This goal was achieved by switching 100% of the electricity used at the Tokyo Works of KOKUSAI DENKI Electric Inc. to net-zero renewable energy and by increasing the volume of net-zero renewable energy purchased at many of its other locations.

The Nisshinbo Group will continue to use the electricity generated from renewable energy sources, increase the proportion of that electricity in its energy mix, and promote the construction and expansion of solar power generation facilities. Furthermore, in its Micro Devices business, the Group will strive to reduce greenhouse gas emissions-a key environmental impact associated with manufacturing operations-through such measures as the use of gas purification systems for PFCs (perfluorocarbons) and other gases used in semiconductor manufacturing.

Please refer to "Environmental Management" for details regarding of the "3-Year Environmental Targets."

• Environmental Management

Please refer to "Sustainability Promotion Plan and KPIs" for details regarding of the "Sustainability Promotion Plan."

• Sustainability Promotion Plan and KPIs

Greenhouse Gas Emissions Reduction Targets

The Nisshinbo Group aims to capture climate change-related business opportunities and reduce risks. In order to reduce climate-related risks, the Group declared in June 2022 to be carbon neutral by 2050 and have set a new long-term environmental target with 2050 as the year of achievement. With the achievement of carbon neutrality as its top priority, the Group actively promoting climate change countermeasures such as energy conservation activities, switching to electricity derived from renewable energy, and reducing emissions of PFCs (perfluorocarbons).

The Nisshinbo Group's Greenhouse Gas Emissions Reduction Targets

Please refer to "Environmental Management" for the progress of The Group's Environmental Targets.

• Environmental Management

Outline of TCFD Response

Climate change is a global challenge for all countries and regions, and the reduction of greenhouse gases is a global long-term target. The Nisshinbo Group believes that it is crucial to incorporate business opportunities caused by climate change and appropriately respond to risks. Accordingly, in FY2021 the Group began analyzing climate change scenarios in accordance with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)^*. In June 2022, the company expressed its agreement to the TCFD recommendations.

Since the Nisshinbo Group has a wide range of businesses, a climate change scenario analysis was conducted in stages starting in FY2021, and an analysis of the Group's major businesses was completed in FY2023.

In FY2021, the Group targeted the Solutions business in the Wireless and Communications business, the Automobile Brakes business, and the Chemicals business that are expected to have a large risk/opportunity impact. In FY2022, the analysis was conducted in major businesses with production activities by covering the Marine System and Connected System business in the Wireless and Communications business, the Micro Devices business, the Precision Instruments business, and the Textiles business. For FY2023, the scope of the program includes Medical Equipment business in the Wireless and Communications business, Real Estate business, and Other businesses, as well as initiatives in the Business Development Division.

Starting in FY2026, the Group is updating its climate change scenario analysis to cover the Solutions, Marine System, and Connected System businesses within the Wireless and Communications business, as well as the Chemicals business.

Through climate change scenario analyses, the Group will identify the risks and opportunities that climate change may pose to the business in future, develop more flexible and robust strategies by leveraging the opportunities in the development of business strategies, and increase the resilience against future risks.

* TCFD: The Task Force on Climate-related Financial Disclosure established by the Financial Stability Board (FSB)

Please refer to "Information Disclosure Based on TCFD Recommendations" for details regarding of the "Results of climate change scenario analysis."

• Information Disclosure Based on TCFD Recommendations

Independent Practitioner's Assurance of Environmental Data

The Nisshinbo Group obtained independent practitioner's assurance from Deloitte Tohmatsu Sustainability Co., Ltd. in its Nisshinbo Group Environmental Data 2025 (Greenhouse Gas Emissions and Water Withdrawal) in the Japanese version to improve the reliability of its Greenhouse Gas Emissions (Scope1, Scope2) environmental performance data.

• Nisshinbo Group Environmental Data 2025 (Greenhouse Gas Emissions and Water Withdrawal)

Greenhouse Gas Emissions

Scope1＋Scope2

The Nisshinbo Group's greenhouse gas emissions (Scope1 + Scope2) in FY2025 were 298.4thousand t-CO₂e. Greenhouse gas emissions after applying the carbon offsets (Net greenhouse gas emissions) amounted to 295.0 thousand t-CO₂e, down 3% from the previous fiscal year's greenhouse gas emissions.

In FY2025, the Nisshinbo Group made further progress in switching to the electricity generated from renewable energy sources. The Group also installed solar power generation systems at four locations in Japan and overseas.

Furthermore, Nisshinbo Automotive Manufacturing Inc. (USA) purchased carbon credits (Project Name: A-Gas V12, Project ID: ACR869and Project Name: Foam Blowing Agent Project 003H, Project ID: ACR832) certified by the American Carbon Registry (ACR) and offset 3.4 thousand t-CO₂e.

The Group will continue to use the electricity generated from renewable energy sources, increase the proportion of that electricity in its energy mix, and promote the construction and expansion of solar power generation facilities. Furthermore, in its Micro Devices business, the Group will strive to reduce greenhouse gas emissions-a key environmental impact associated with manufacturing operations-through such measures as the use of gas purification systems for perfluorocarbons (PFCs) and other gases used in semiconductor manufacturing.

The Nisshinbo Group will continue to promote the switch to electricity generated from renewable energy sources and work to reduce greenhouse gas emissions associated with our business activities.

Perfluorocarbons (PFCs) composed 74% of non-energy related greenhouse gas emissions. The PFCs emissions were mainly from the semiconductor product manufacturing process in the Micro Devices business.

Trends in Net Greenhouse Gas Emissions (Scope1+Scope2)

*1 The company was excluded from the scope of consolidation because of the transfer of the TMD Group, which was a consolidated subsidiary, on November 30, 2023. Therefore, the TMD Group's data up to November 2023 is included in the scope of consolidation.

*2 On December 27, 2023, the company included the Kokusai Denki Electric Group within its scope of consolidation, and data aggregation will be conducted from FY2024.

*3 On November 28, 2024, Argonics GmbH and Argonav GmbH as subsidiaries in the wireless and communications business were included within the scope of consolidation but are not included in the data for FY2024.

Greenhouse Gas Emissions by Scope (Scope1, Scope2)

(Thousand t-CO₂e)

*1 The figures in the table have been rounded; therefore, the total may not match the sum of the individual items.

*2 The "Nisshinbo Group Greenhouse Gas Emissions Data 2021" are assured by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd.

• Nisshinbo Group Greenhouse Gas Emissions Data 2021

*3 The "Nisshinbo Group Greenhouse Gas Emissions Data 2022" are assured by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd.

• Nisshinbo Group Greenhouse Gas Emissions Data 2022

*4 The "Nisshinbo Group Greenhouse Gas Emissions Data 2023" are assured by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd.

• Nisshinbo Group Greenhouse Gas Emissions Data 2023

*5 The "Nisshinbo Group Greenhouse Gas Emissions Data 2024" are assured by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd.

• Nisshinbo Group Greenhouse Gas Emissions Data 2024

*6 The "Nisshinbo Group Environmental Data 2025 (Greenhouse Gas Emissions and Water Withdrawal)" are assured by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd.

• Nisshinbo Group Environmental Data 2025 (Greenhouse Gas Emissions and Water Withdrawal)

【Subject Organizations】

The organizations included in the FY2025 report total 87, which comprise the Company and 86 consolidated subsidiaries.

[Reference Standard]

Starting in FY2024, the Nisshinbo Group calculated emissions based on the GHG Protocol, with reference to the Act on the Promotion of Measures to Cope with Global Waring. Note that through FY2023, calculations were based on the Act on the Promotion of Measures to Cope with Global Warming.

[Calculation Method]

Net Greenhouse Gas Emissions by Business (Scope1+Scope2)

In greenhouse gas emissions by business, the Micro Devices business accounted for 40% of total emissions. This was followed by the Precision Instruments business, which accounted for 19%.

*1 Nisshinbo Holdings Inc. (the "Company") excluded TMD Group, which was a consolidated subsidiary, from the scope of consolidation, due to its transfer, which took place on November 30, 2023. As a result, data for TMD Group is included in the aggregation up to November 2023.

*2 On December 27, 2023, the Company included KOKUSAI DENKI Electric Group within its scope of consolidation, and data for the group is included from FY2024.

*3 On November 28, 2024, the Company included ARGONICS GmbH and ARGONAV GmbH within the scope of consolidation as subsidiaries in the Wireless and Communications business. However, data for these companies is not included in the FY2024 data.

• Environmental Data

Net Greenhouse Gas Emissions in Japan and Overseas (Scope1+Scope2)

The Nisshinbo Group’s domestic net greenhouse gas emissions totaled 174.9 thousand t-CO₂e, accounting for 59% of the total.

*1 Nisshinbo Holdings Inc. (the "Company") excluded TMD Group, which was a consolidated subsidiary, from the scope of consolidation, due to its transfer, which took place on November 30, 2023. As a result, data for TMD Group is included in the aggregation up to November 2023.

*2 On December 27, 2023, the Company included KOKUSAI DENKI Electric Group within its scope of consolidation, and data for the group is included from FY2024.

*3 On November 28, 2024, the Company included ARGONICS GmbH and ARGONAV GmbH within the scope of consolidation as subsidiaries in the Wireless and Communications business. However, data for these companies is not included in the FY2024 data.

• Environmental Data

Scope3

The Nisshinbo Group's actual greenhouse gas emissions (Scope 3) in FY2025 were approximately 1,386 thousand t-CO₂e, a 6% increase from the previous fiscal year's greenhouse gas emissions. This is primarily due to improved accuracy in data aggregation by our Group’s overseas offices.

Please refer to "Environmental Data" in "Sustainability Data" for details on Scope 3, which consists of 15 categories.

• Environmental Data

Renewable Energy

The Nisshinbo Group promotes the use of renewable energy, In FY2025, approximately 19% of the electricity used by the Group came from renewable energy sources, which marked a 3% increase from the previous fiscal year and has continued to rise each year.

Solar Power Generation (excluding PPA^*)

Solar power generation equipment installed by the Nisshinbo Group remained steady, generating 9.1 thousand MWh of power in FY2025.

In addition, during FY2025, the Nisshinbo Group expanded its use of renewable energy by installing new solar power generation facilities at Nisshinbo Micro Devices AT Co., Ltd., the Tatebayashi Plant of Nisshinbo Brake Inc., Nisshinbo Mechatronics (Thailand) Ltd., and the Asahi Plant of Nisshinbo Chemical Inc. Nisshinbo will continue to work toward expanding the use of renewable energy by increasing the number of sites where these facilities are installed.

* PPA: Abbreviation for Power Purchase Agreement.

Solar Power Generation Capacity (FY2025)

Purchase of Electricity Derived from Renewable Energy

The Nisshinbo Group is promoting the switch to electricity derived from renewable energy, and purchased approximately 111.6 thousand MWh of electricity derived from renewable energy in FY2025.

The renewable energy-derived electricity purchased by the Company Group in FY2024 consists of electricity derived from hydroelectric power generation (76.4 thousand MWh), solar power generation (14.8 thousand MWh), and wind power generation (14.1 thousand MWh).

Purchased Electricity from Renewable Energy Sources by Major Business Sites (FY2025)

*1 As a result of the reorganization of Group companies, the company was absorbed by Japan Radio Co., Ltd., effective January 1, 2026.

*2 The breakdown of renewable energy is currently unavailable because of the timing of the release of finalized annual data regarding non-fossil fuel certificates.

*3 PPA: Abbreviation for Power Purchase Agreement.

• Environmental Data

CDP Climate Change 2025 Assessment

Nisshinbo Holdings Inc. discloses environmental information through the CDP. In 2025, Nisshinbo Holdings Inc. responded to the Climate Change Questionnaire and received a B rating (Management Level). Nisshinbo Holdings Inc. will continue to actively address climate change and strengthen transparency and information disclosure in its environmental activities.

The CDP evaluates companies annually using a fair method based on such factors as disclosure comprehensiveness, recognition and management of environmental risks, and goal setting by assigning scores on an eight-point scale (A, A-, B, B-, C, C-, D, D-).

The CDP is an international environmental nonprofit organization established in the UK in 2000. It collaborates with more than 700 financial institutions with assets exceeding US$142 trillion and operates a global environmental information disclosure system. Specifically, in response to requests from investors, companies, governments, and other entities around the world, the CDP sends questionnaires on environmental issues to companies, provides an information disclosure platform, and scores and analyzes the responses.

In 2025, more than 23,100 companies worldwide disclosed data through their CDP responses. CDP scores are widely used in investment and procurement decisions through the CDP's website and reports to achieve net zero and a sustainable and resilient economy.

Achieved a Certified "A" Fluorocarbon Countermeasures Rating

Nisshinbo Holdings Inc. was awarded the highest rating of Grade A in the fifth Fluorocarbon Countermeasures Rating Survey conducted by the Japan Refrigerant and Environmental Conservation Organization (JRECO). This survey evaluates companies listed on the Prime Market based on their compliance with the Fluorocarbon Emission Control Act and the adequacy of their information disclosure in such publicly available materials as integrated reports and sustainability reports. In the fifth survey, 108 companies were selected for the A rank out of approximately 1,600 eligible companies.

The Nisshinbo Group regards the proper management of fluorocarbons as one of its key environmental priorities. Nisshinbo has consistently ensured full compliance with relevant laws and regulations, including the Fluorocarbon Emission Control Act, and has worked to maintain a high level of transparency in its information disclosure. The Nisshinbo Group believes these efforts contributed to this recognition.

In addition, the Nisshinbo Group is working to replace refrigeration and air-conditioning systems that use fluorinated gases with new models that use refrigerants with a low global warming potential (GWP). Nisshinbo is also systematically expanding the installation of purification systems designed to neutralize PFCs (perfluorocarbons) and other fluorinated gases used in semiconductor manufacturing processes and is working to expand sales of urethane products that use non-fluorinated blowing agents.

Going forward, the Nisshinbo Group will continue to promote the initiatives to reduce its environmental impact in full compliance with laws and regulations while also enhancing the disclosure of environmental information with the aim of realizing a sustainable society.

Specific Activities of the Group Companies

Full Transition to Electricity Generated from Renewable Energy Sources

KOKUSAI DENKI Electric Inc. is working toward carbon neutrality by reducing greenhouse gas emissions through such measures as switching to LED lighting and upgrading to top-of-the-line air conditioning systems to cut electricity consumption.

The company’s Tokyo Works (Kodaira City, Tokyo) switched to renewable energy sources for all electricity needs in April 2025. This resulted in a reduction of 2,102 metric tons of CO₂ equivalent in greenhouse gas emissions from April to December 2025.

Furthermore, as a result of this initiative, the company is now on track to meet the reduction targets for the fourth plan period under the Tokyo Metropolitan Ordinance on Environmental Preservation to Secure the Abilities of Council, specifically, the Tokyo Cap-and-Trade Program, which imposes some of the strictest reduction obligations in the world.

Going forward, the company will gradually introduce the electricity generated from renewable energy sources at its other locations as well.

Raising Environmental Awareness Through Environmental Education

In response to the growing public concern about environmental issues driven by recent global trends, KOKUSAI DENKI Electric Inc. sponsored an e-learning program on environmental education in June 2025 for all employees to further deepen their understanding of environmental initiatives. In October of the same year, the program was extended to all employees of the KOKUSAI DENKI Electric Group.

The KOKUSAI DENKI Electric Environmental Education program covered climate change, global trends, and KOKUSAI DENKI’s carbon neutrality initiatives. The KOKUSAI DENKI Electric Group Environmental Education program addressed the social trends related to the environment, the Nisshinbo Group’s initiatives, and the KOKUSAI DENKI Electric Group’s initiatives (carbon neutrality, resource recycling, and biodiversity conservation) with the aim of enhancing environmental knowledge and fostering a greater environmental mindset by all employees.

The company is raising awareness among its employees that the actions of every individual contribute to environmental initiatives; therefore, the company is encouraging employees to act accordingly and to take a personal stake in such efforts as achieving carbon neutrality.

Installation of 150-kW Solar Panels as Part of Measures to Reduce Greenhouse Gas Emissions

As part of its efforts to reduce greenhouse gas emissions, Nisshinbo Micro Devices AT Co., Ltd., installed a solar power generation system on the roof of its Factory Building 2 (F2) and began generating electricity in May 2025, including a trial operation period. Since June, electricity generation exceeded the monthly average target by 16%, demonstrating highly efficient performance.

Total annual power generation was projected at 274 MWh compared to the planned 235 MWh. This resulted in a generation rate of 1.1% of the factory’s total electricity consumption for FY2023, which exceeded the planned rate of 0.9%. Furthermore, it helped reduce peak loads and contributed to a reduction of 150 kW in contracted power capacity since solar power tends to generate the highest output during summer peak demand hours.

Expansion of Solar Power Generation Facilities (DP1 Plant and DP2 Plant)

The Tatebayashi Plant of Nisshinbo Brake Inc., is gradually expanding on-site solar power generation facilities to achieve carbon neutrality.

In June 2025, the company installed a new 450 kW solar power generation system on the roof of the DP1 plant. In February 2026, it added a 300 kW system to the roof of the DP2 plant. Including the systems installed in FY2011 and 2024, the total installed capacity of solar power generation facilities at the Tatebayashi Plant is now 1,550 kW with an estimated annual power generation of 2,533 MWh. As a result, solar-generated electricity for self-consumption is expected to cover approximately 9.5% of the plant’s annual electricity consumption.

The Tatebayashi Plant plans to continue expanding its solar power generation facilities and will continue its efforts toward achieving carbon neutrality.

Changing the Type of Refrigerant in Conjunction with Air Conditioning Unit Replacement

Nisshinbo Automotive Manufacturing, Inc., in the United States is working to replace the refrigerant in their air conditioning units from R22 to R410A, which does not deplete the ozone layer. Since the existing air conditioning units are older models where it is not possible to simply replace the refrigerant, the company is proceeding with the replacement in stages as it upgrades the existing units. In 2025, the company upgraded five units.

Furthermore, the company achieved an annual reduction of 365 MWh in electricity consumption (equivalent to 72 t-CO₂ per year) compared to the existing units by upgrading to the latest model of air conditioning units.

Improving ESG Performance Through Green Energy Solar Power Systems

To continue putting the Nisshinbo Group’s philosophy of environmental protection and sustainable development into practice, Saeron Automotive (Yantai) Co., Ltd., in China entered into an on-site PPA and installed solar panels.

Phase 1 of the project began in July 2024 with solar power generation systems installed on the roofs and rooftops of the administration building, quality testing center, waste storage facility, and parking lot. Each system has a capacity of 728 kW, generates 800 MWh of electricity annually. The system reduces greenhouse gas emissions by approximately 513 t-CO₂ per year, and this green electricity accounts for about 6% of total electricity consumption.

Phase 2 of the project began in December 2025 with the installation of solar panels on the factory roof. The system has a capacity of 2,000 kW, generates 2,200 MWh of electricity annually, and reduces greenhouse gas emissions by approximately 1,410 t-CO₂ per year.

As a result, annual power generation in 2026 is projected to reach approximately 3,000 MWh and greenhouse gas emission reductions of approximately 1,923 t-CO₂ per year. The proportion of green power consumption will increase to approximately 21%, which effectively achieves both carbon emission reductions and cost savings. Moving forward, the company will continue to strive for high-quality, sustainable development from the perspectives of corporate low-carbon transition and ESG.

Cross-Functional Initiatives on the Environment and Energy Conservation Among Group locations

Nisshinbo Mechatronics Inc. and Nanbu Plastics Co., Ltd., formed a joint Sustainable Development (Environment and Energy Conservation) Team as a cross-company initiative. As part of the team’s activities, one of the key priorities is to reduce greenhouse gas emissions by at least 600 metric tons of CO₂ equivalent per year, and the team is focusing its efforts primarily on energy conservation initiatives.

During monthly meetings, Nisshinbo reviewed several energy-saving proposals and implemented measures at each of 15 locations. For equipment with significant potential for energy savings across all sites, such as pumps and fans, the company conducted a comprehensive review and explored such measures as installing variable-speed drives. Furthermore, by revising the common energy-saving manual and holding joint energy-saving workshops, Nisshinbo promoted these activities while aiming to improve the energy-saving skills of personnel at each location and facilitate information sharing. As a result, a total of 153 energy-saving measures were implemented across all 15 locations, which generated annual energy savings of 1,861 MWh and reducing greenhouse gas emissions by 1,038 t-CO₂ per year.

Going forward, the company will continue to promote information sharing across the entire group and advance greenhouse gas reduction efforts by implementing such measures as energy conservation, renewable energy, and electrification through their ongoing initiatives.

Solar Power Plant Operation

Nisshinbo Mechatronics (Thailand) Ltd. regards the reduction of greenhouse gas emissions-a key mid-term environmental goal of the Nisshinbo Group-as one of its most important initiatives.

Given that Thailand receives significantly more sunlight than Japan, Nisshinbo Mechatronics planned to install solar power generation equipment as an effective measure that could also help reduce energy costs. As part of the first phase, the company installed solar panels on one of the four buildings at Plant 1. This building was selected for the first phase because it houses a large amount of production equipment that results in a high consumption of electricity. The installed capacity is 887 kW with 1,408 solar panels, and the estimated annual power generation is 1,227 MWh. This facility is expected to reduce the annual electricity consumption of Plant No. 1 by approximately 10% and cut CO₂ emissions by approximately 672 tons per year. Power generation began in June 2025, and during periods of high sunlight, the facility recorded power generation levels exceeding projections.

In addition, as part of the second phase of construction, Nisshinbo Mechatronics is proceeding with the installation at Plant 1 and Plant 3 starting in March 2026 with power generation scheduled to begin in May 2026.

Reducing Environmental Impact with Natural Gas-Fueled Generators

In September 2023, NISSHINBO COMPREHENSIVE PRECISION MACHINING (GURGAON) PRIVATE LIMITED in India installed a generator powered by a mixture of diesel and natural gas (PNG) in conjunction with the construction of a new factory.

In India, the supply of external electricity remains unstable; therefore, it is common for companies to own their own power generation facilities, and diesel fuel has traditionally been the mainstream choice. On the other hand, there is growing demand in urban areas around Delhi for a shift to clean energy due to worsening air pollution.

Although the reduction effect is limited because this facility operates only during power outages, the system contributes to reducing CO₂ and air pollutant emissions. It also contributes to obtaining an operating license as an environmentally conscious business.

Switch to Renewable Energy for Electricity Purchases

Toms Manufacturing Corporation in the Philippines had previously been purchasing electricity generated from fossil fuels (primarily coal-fired power) from the major utility company MERALCO.

While thermal power generation remains the mainstay of the energy sector in the Philippines, the country relies heavily on imported fuel, yet power shortages have persisted, which hinder industrial and economic development. In recent years, the country has focused on renewable energy, and plans are currently underway to expand solar power generation, as well as wind and geothermal power.

Against this backdrop, the company switched approximately 100 MWh per month of its contracts starting in July 2025 since the supply of renewable energy (primarily solar power), which MERALCO began selling in 2022, has stabilized,.

In addition, by communicating this initiative to employees, the company aims to raise awareness of climate change mitigation efforts.

Installation of Solar Panels on the Roof of the Third Plant at the Asahi Plant

Nisshinbo Chemical Inc.'s Asahi Plant decided to install solar panels on the roof of Plant No. 3 to switch a portion of the electricity used in its operations to renewable energy. Installation work began in October 2024. The project progressed smoothly and was successfully completed in March 2025 with power generation commencing immediately following installation.

The installed solar panel system has a capacity of 222 kW and covers an area of approximately 1,550 square meters. Since operations began, power generation has proceeded smoothly with total electricity generation reaching 324 MWh in FY2025. This covers approximately 10% of the total electricity consumption at the Asahi Plant and results in an annual reduction of approximately 150 metric tons of CO₂.

Nisshinbo Chemical also installed a monitor in the office on the first floor of Plant No. 3, allowing employees and visitors to view the power generation status. The company hopes this will raise employee awareness of solar power and renewable energy.

Global Expansion of Carbon Supports for Fuel Cell Catalysts

The Toke Development Center of Nisshinbo Chemical Inc. is leveraging its expertise in carbon structure control technology, cultivated over many years, to promote the development of carbon supports for fuel cell catalysts that contribute to the advancement of a hydrogen society, a key component of next-generation energy.

This product is a high-performance carbon material featuring a uniform pore structure precisely controlled at the nanoscale. When used in support for fuel cell electrode catalysts, it dramatically improves power generation performance-doubling it compared to conventional materials-while also extending product lifespan by suppressing catalyst degradation. As a result, this groundbreaking, environmentally friendly product reduces the use of precious metals like platinum, whose prices have been soaring in recent years. This superior technology is highly regarded worldwide, and sales channels are expanding, particularly in Europe, the United States, and Asia.

Moving forward, the company will continue to contribute to the protection of the planet’s environment by supporting the widespread adoption of hydrogen through proprietary materials technology and by driving innovation aimed at realizing a decarbonized society.