Climate Change
Policy and Basic Approach
Based on our Corporate Policy on the Global Environment,
we strive to address environmental issues through responsible care and other initiatives. We have established our basic position on climate change, water resources, and biodiversity based on this Corporate Policy.
In carrying out our business activities, we strive to recognize the opportunities and risks presented by climate change and the natural environment, dependency on environmental resources, and the changing environment.
With regard to climate change, we also support the Carbon Neutral Action Plan of the Japan Chemical Industry Association (JCIA) and are active as a member company. The Japan Chemical Industry Association participates in the Keidanren\'s “Carbon Neutral Action Plan” and is working to reduce CO₂ emissions by 32% (compared to 2013) by 2030, based on the chemical industry\'s policy toward carbon neutrality by 2050.
1. To supply products after full consideration of their potential impacts on people and the environment.
2. To undertake proactive countermeasures to cope with the potential effects ofproducts on people and the environment.
3. To contribute to society while raising awareness about the environment, safety and health.
4. To disclose and provide information related to the environment, safety and health.
Basic position on climate change
1.Responding to climate change is a top priority. We will strive to achieve carbon neutrality by 2050 through aggressive GHG emissions reductions.
2.We support the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and disclose information in line with them.
3. We strive to reduce emissions not just in house but across the supply chain as well.
Structure & System
The Kansai Paint Group has established the Sustainability Promotion Committee under the Corporate Governance Committee to oversee the improvement of corporate value from a non-financial perspective and make prompt decisions.The Sustainability Strategy Department, a standing organization, revises plans and collaborates with each department to implement specific measures. This ensures both innovation and feasibility, working together to enhance long-term corporate value.

Initiatives
Disclosure Based on TCFD Recommendations
The Kansai Plant Group will gradually disclose the 11 recommended disclosure items in the TCFD recommendations.

- Scope 3 estimates
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We estimated the Scope 3 emissions of Group companies by adjusting definitions, scope, and calculation methods for each category of Scope 3 with reference to the recommendations of the Science Based Targets Initiative. Category 10 GHG emissions are generated from mixing, painting, and drying processes by retailers and customers after the sale of the paint (e.g., auto painting lines). While their volumes are significant compared to Scope 1 and Scope 2, they lie beyond our direct control. As such, we consider them as emissions for which calculations and reductions are optional. Category 4 emissions (raw materials distribution) are also optional, while emissions in categories 8 (upstream leased assets), 11 (use of sold products), 13 (downstream leased assets), and 14 (franchises) are negligible and not subject to control. After adding in-house logistics between business sites, we identified 10 other items subject to control.
- Green Energy Plan
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Under the Green Energy Plan, switching to renewables was given priority in India, where the percentage of energy from renewables reached 11.2%. While Group companies are also switching to renewables, they are not making progress on reducing energy consumption. We will reduce GHG emissions Groupwide by studying optimal measures for switching and reduction in each region.