Response to Climate Change

As global warming continues and temperatures rise, we are likely to experience more natural disasters including typhoons, floods, and tornadoes, which seriously affect people's daily lives and society. Other concerns include droughts due to low precipitation and sea level rise due to melting glaciers on land. To respond to these impacts of global warming, the world is accelerating the movement toward achieving carbon neutrality by lowering GHG emissions to net zero by 2050. We are required to respond to climate change caused by global warming by striving to reduce GHG emissions in both business activities and products and services, thereby to help achieve carbon neutrality.

With the aim of achieving carbon neutrality throughout its entire value chain by FY2050, Toshiba Group has been driving responses to climate change through various measures. They include reducing energy consumption and the volume of GHG used in production processes in Japan and abroad, promoting the introduction of energy-saving processes and equipment and renewable energy by applying the Internal Carbon Pricing^*1, providing energy technologies to realize decarbonization, and reducing electricity consumption in the use of products and services we develop. We will also focus on the reduction of GHG emissions from products and services purchased in cooperation with suppliers and climate change adaptation solutions. As a new initiative under the Seventh Environmental Action Plan, Toshiba Group will also focus on the reduction of GHG emissions through the use of its digital technologies that enable remote operation, automation, and intelligence. In FY2020, we acquired approval of the Science Based Targets (SBT)^*2 initiative regarding our GHG reduction target for FY2030.

For our climate change information disclosure, we have also endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)^*3 and will continue to focus our efforts on information disclosure regarding the risks and opportunities related to climate change in our Group's businesses.

• Information Disclosure Based on the TCFD Recommendations
• Response to Climate Change in Business Activities
  
• Products and Services Associated with Power Supply
• Products and Services Associated with Power Consumption
• Adaptation Measures to Avoid the Effect of Climate Change

• A monetary value for carbon that is estimated internally by the company and is a mechanism to promote corporate decarbonization investments. For details, please see 
  https://www.global.toshiba/ww/environment/corporate/climate/dealing.html
• Science Based Targets are scientifically grounded GHG reduction targets set by companies on a medium- to long-term basis in order to restrain the global average temperature increase this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C. Science-based targets are validated by the SBT initiative. Toshiba Group's target approved is our FY2030 target set before the revision of the Environmental Future Vision 2050 (before November 2021). For details, please see 
  https://www.global.toshiba/ww/environment/corporate/vision/vision2050.html
• The TCFD is an organization established by the Financial Stability Board (FSB) in 2015 for financial institutions and companies to discuss the climate change issue from the perspective of financial stability.

As climate change becomes an increasingly serious issue, companies must monitor and manage not only their own GHG emissions but also emissions generated across their entire value chain. Based on the GHG Protocol*, which provides international standards for calculating GHG emissions, and the Ministry of the Environment's Basic Guidelines for Calculating GHG Emissions throughout the Supply Chain, Toshiba Group monitors and calculates indirect GHG emissions generated outside the scope of its own business activities (Scope 3) in addition to its own emissions (Scopes 1 and 2). Toshiba Group will continue working effectively throughout product lifecycles by quantitatively analyzing emissions accordingly.

GHG emissions through the use of sold products account for a high percentage of emissions across the value chain. We will therefore continue to promote the development of energy technologies to realize decarbonization and to improve the energy efficiency of products.

• The Greenhouse Gas Protocol (GHG Protocol): Guidelines for calculating and reporting GHG emissions formulated by companies, NGOs, and government organizations under the leadership of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD)

1. For example, power plants
2. Social infrastructure products, building-related products (lighting equipment, elevators and escalators), retail and printing equipment, power devices, etc.