TCFD (Task Force on Climate-related Financial Disclosures)

Philosophy and Basic Policy

Based on this corporate philosophy and basic sustainability policy, the Group will disclose information in line with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) on both the risks and opportunities posed by climate change to its business, with the aim of achieving sustainable growth and increasing the Group's corporate value over the medium to long term.
This document will be disclosed in line with these recommendations.
The Mitsubishi Paper Mills Group is committed to creating social value and contributing to the realization of a sustainable society through its business operations.

Governance

• We recognize that climate change is one of our most important business challenges, so the Board of Directors will discuss and decide on our fundamental policies and important matters related to climate change. In addition, an executive in charge of promotion of sustainability will discuss the risks and opportunities and report them to the Board of Directors at least once a year.
• We have launched company-wide TCFD project teams that include an executive in charge of promotion of sustainability.
• We have established a Sustainability Promotion Committee (meeting twice a year) to oversee sustainability promotion activities across the entire Mitsubishi Paper Mills Group, and under its umbrella, the Risk Management Committee, manages the progress of the TCFD response project team.
• Investment decisions related to decarbonization are discussed at the Management Committee and Board of Directors depending on their importance.

Risk Management

• We identify risks related to climate change from items recognized by the Risk Management Committee under the umbrella of the Sustainability Promotion Committee. The TCFD project teams also analyzes climate change-related risks.

Strategy

• The relevant department examines the risks and opportunities identified by the TCFD project teams and formulates countermeasures.
• We joined the 30 by 30 Alliance for Biodiversity established by the Ministry of the Environment. We also offer opportunities to learn about biodiversity and the diversity of the forest by utilizing the Ecosystem Academy, an experiential forest environment learning experience that utilizes the Shirakawa company forest.
• In order to help everyone better understand our products and efforts to contribute to a greener society, we have launched the “Mitsubishi Paper Mills Official Channel Green Webcast” and have began distribution of our videos. With the theme of “Green”, we share various informational videos including those that introduce our products and events or the activities at our “Ecosystem Academy” program.

Metrics and goals

• We have formulated the Mitsubishi Paper Mills Group Environment Vision 2050, in which our company aims to become carbon neutral by 2050. The Mitsubishi Paper Mills Group strives to maximize the use of renewable energy, utilizing carbon fixation technology, and developing environmentally friendly products to contribute to the long-term goal of the Japanese government: “To actualize a decarbonized society or carbon neutrality by reducing greenhouse gas emissions to zero by 2050.”
• In the fiscal year 2022, energy-derived CO₂ emissions in Japan were 707,000 tons. This was a 25% (239,000 t) reduction compared to the fiscal 2013 energy-derived CO₂ emissions in Japan of 946,000 t. By fiscal 2030, we aim to reduce energy-derived CO₂ emissions in Japan by 40% from fiscal 2013 level to 568,000 tons or less.
• We have launched the “Fiscal 2030 CO₂ Reduction Task Force” as a concrete initiative to reduce domestic energy-derived CO₂ emissions by 40% from 2013. Specific measures we are implementing include the promotion of energy conservation efforts including the transition to fuel from coal in existing boilers to reduce consumption.
• The domestic emissions of greenhouse gases in the fiscal year 2022, including CO₂ in Scopes 1 and 2, was 821,000 t. This was a 23% (243,000 t) reduction compared to the fiscal 2013 energy-derived CO₂ emissions in Japan of 1,064,000 t. By 2030, we aim to reduce emissions by 36% from fiscal 2013 level to 681,000 t or less.
• Regarding CO₂ reductions including in the supply chain, we will continue to investigate the calculation method for Scope 3 and consider future disclosure.
• Paper production uses large amounts of water resources. The amount of industrial water intake in the fiscal year of 2022 was 119 million tons. We will continue to promote water recycling (circular use of water) within the process and aspire for effective use. Furthermore, each factory has a wastewater treatment facility, and the water used within the factory is purified in accordance with legally mandated standards before being released back into the community. We also strive to conserve water quality, comply with standards, and preserve the local environment.
• Our company owns about 2,000 ha of forests, mainly in the Tohoku region. We will continue to improve domestic timber’s self-sufficiency rate and conserve forests by actively using timber from Northern Tohoku.

Conducting Scenario Analysis

• In order for humans and the earth to coexist, it is necessary to limit the increase in the average global temperature to less than 1.5°C above pre-industrial levels to curb the severe impacts of climate change.
• The scenarios set in this analysis refer to IEA WEO SDS (Sustainable Development Scenario) and the external scenarios presented by the Intergovernmental Panel on Climate Change (PCC). In a scenario of a “carbon-neutral world”, the transitional risks are high as social systems transition to climate change mitigation to avoid greenhouse gas emissions. On the other hand, the physical risks were higher in a scenario of a world highly impacted by climate change where adaptation to face physical impacts are necessary to face the fury of nature.
• We believe we can increase our resilience against future risks by taking measures to deal with transition and physical risks in multiple scenarios of the future world. In addition, even in a harsh world with transition and physical risks, we believe adopting countermeasures for both can reduce the degree of risks. We will also seize the listed opportunities and promote future business expansion.
• Specifically, by expanding the following product groups, we aim to establish a solid business foundation by accelerating business portfolio transformation in accordance with our medium-term management plan.

♦ Functional materials business products that contribute to a safe, comfortable, and sustainable society

• Water treatment membrane support substrates that contribute to securing safe and secure water
• Filter that contributes to air optimization
• Battery separators that contribute to the effective use of electricity ・Electronic industry materials, etc.

♦ New wood-based products that contribute to less plastic and plastic-free.

• Kraft paper, barrier paper, etc.