As a company that manufactures products, the KING JIM Group considers environmental considerations a critical managerial issue. We are committed to manufacturing products with a reduced environmental impact by adopting environmentally friendly technologies and materials based on the 3Rs of the product life cycle (Reduce, Reuse, Recycle).
We also regard addressing climate change, which is an environmental issue, as one of the critical issues to be addressed by management. Climate change caused by global warming is a risk that threatens the sustainability of our Group and our planet's environment and affects our business, customers, and supply chain.

In June 2023, we announced our endorsement of the TCFD (Task Force on Climate-related Financial Disclosures) recommendations, and based on the TCFD framework, we disclose the information regarding our response to climate change as follows.
※TCFD（Task Force on Climate-related Financial Disclosures）
The TCFD was established by the Financial Stability Board (FSB) at the request of the G20 to examine how companies and others should make climate-related disclosures and financial institution responses. The TCFD released its final report in June 2017, recommending that companies and others disclose climate change-related risks and opportunities. Concerning sustainability initiatives, including addressing climate change, under Basic Sustainability Policy of the KING JIM Group formulated in March 2022, the Sustainability Committee, chaired by the executive in charge of sustainability, establishes various policies and detailed targets to resolve issues and determines the structure and specific measures to put them into practice.
The important matters considered and decided by the Sustainability Committee are discussed and reported to the Board of Directors after prior deliberation by the management conferences as necessary. Thereby we establish a system for appropriate management decision-making and supervision over the status of initiatives. In order to understand the medium- and long-term impacts of the risks and opportunities posed by climate change on our business and to study countermeasures, we conducted a scenario analysis by referring to the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) for our stationery and office supply business, which accounts for a high percentage of our net sales.

●Scenarios Considered by the Company

Scenario	Overview
Below 2°C	The scenario where the average global temperature increase by 2100 is less than two degrees Celsius above pre-industrial levels ・Strengthening of policies and rules in each country, such as the introduction of carbon taxes and other carbon pricing measures and the shift to renewable energy sources ・The risks of transitioning to a decarbonized society will become apparent
4°C	The scenario where the average global temperature increase by 2100 is four or more degrees Celsius above pre-industrial levels ・Climate change will cause extreme weather events to become more severe and frequent, resulting in physical risks such as difficulty in procuring raw materials and reduced productivity, which will significantly negatively impact business activities ・No new policies or regulations implemented, and CO₂ emissions will continue to increase as the transition to a decarbonized society remains stagnant

The scenario analysis revealed that transition risks due to tighter policies and regulations and physical risks due to more extreme and frequent chronic weather events significantly impact business and finances while simultaneously indicating that business expansion opportunities also exist.
By implementing these measures, we will reduce the risks associated with climate change and proactively take advantage of growth opportunities.

●Business Risks and Opportunities in Climate Change, Assessment of Business/Financial Impact and Its Countermeasures The Sustainability Committee is responsible for identifying and evaluating risks related to climate change and other environmental issues that the KING JIM Group should pay attention to and deciding on countermeasures to address them. Countermeasures are deployed to each department and group companies, and the Sustainability Committee monitors the status of risks. Should an event that could have a significant impact on management occur, it is immediately reported to the Risk Management Committee, chaired by the President & CEO, through the executive in charge of sustainability. Upon receipt of the report, the Risk Management Committee will consider the response. To address climate change, we are working to execute "Reducing of CO₂ emissions," an important theme in Materiality (priority issues) "Environmental Consideration" identified by the Group, by setting the reduction targets for the following CO₂ emissions (Scope 1+2) as a metric and working to achieve the reduction targets.

Metric	Scope	Base year	Target in 2030	Results for Fiscal year ended June 20, 2023
CO₂ emissions （Scope1+2）	the KING JIM Group	Fiscal year ended June 20, 2021	8,200t-CO₂ （30% reduction compared to the base year）	9,255t-CO₂

●Transition of CO₂ emissions (Scope1+2) *CO₂ emissions for the fiscal year ended June 20, 2021 and June 20, 2022 were incorrectly calculated at some sites, and have been corrected. The impact of these corrections is minor.