The KAYABA Group’s goal is to achieve carbon neutrality by 2050. We are conducing initiatives to reduce our greenhouse gas emissions volume, measures to reduce the use of materials with high environmental burdens in products, and develop products with low CO2 emissions and that save energy. Regarding risks related to climate change and business opportunities found in their impacts, falling into a situation in which orders decline and operations at plants are suspended would have a major financial impact, so we categorized its definition, possibility of occurrence, size of impact, and quantitative effect, and have clarified how serious the impact would be. We have evaluated the degree of impact using the scenario analysis shown in the table below, and are using it to formulate our business strategy and management plans.

The targets and actual results regarding climate change for KYB and its subsidiaries' production bases are as follows.