We promote resource recycling of limited resources such as raw materials and water used in production activities at its own facilities, including the recycling of 1,004 tons of scrap materials annually within the Group and the recycling of 56,070 kL of water annually at the chrome wastewater treatment facility in the plating process.
In order to minimize the impact of our business activities on the environment, we conduct risk assessments of potentially hazardous and toxic chemical substances to ensure appropriate and safe handling. In response to the revision of the Occupational Health and Safety Law's chemical substance regulations starting in FY2023, we are taking measures such as internal notification and inspections.

Legal frameworks such as the REACH Regulation*1, the ELV Directive*2, and the RoHS Directive*3 are showing clear trend of being tightened every year. KYB is responding by incorporating this into our technology development plan.
Also, in addition to responding to regulations on chemical substances, we are conducting initiatives for a
low-carbon society and designing products with recycling in mind.

*1 REACH Regulations: REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals. It is an EU law intended to protect human health and the environment while fostering competitiveness within the European chemical industry.
*2 ELV Directive: A directive that came into effect in the EU in October 2000 to reduce environmental impact caused by end-of-life vehicles.
*3 RoHS Directive: A directive that came into effect in the EU in July 2006 that restricts the use of specific hazardous substances found in electrical and electronic products.

Our Corporate Spirit encompasses our love for the environment, which we treat as precious. Based on this, we undertake environmental conservation initiatives with a focus on the global environment of the future, and in March 2024, became a signatory of the Keidanren Initiative for Biodiversity Conservation. We engage in responding to climate change and resource circulation, the reduction of waste, and the management of chemical substances, thereby actively promoting the safeguarding of natural resources.

＜Native Species Conservation: Protecting Rare Vegetation through the Lespedeza tomentosa Initiative＞
KYB’s Development Center is situated in the nature-rich mountainous area spanning Kawabe Town and Minokamo City in Gifu Prefecture. Established in July 2011, the center continues to play a vital role in our operations.
During the planning phase, a survey of the natural environment was conducted to ensure the preservation of local biodiversity. The survey identified the presence of Lespedeza tomentosa, an endangered species. In response, a conservation initiative was launched. At the time, the plant covered an area of approximately 100 square meters. Today, it has expanded to around 700 square meters. Looking ahead, we remain committed to proper management practices to safeguard the continued growth and preservation of Lespedeza tomentosa.