Contribution towards Environment Protection

<Information Disclosure in Line with the TCFD Recommendations>

1.Governance

• We will build a structure that centers on the Climate Change Response Promotion Committee, which is chaired by President and Representative Director of the Board, as an organization for the study and deliberation of basic policies and key matters concerning climate change and the risks and opportunities that they present.
• The Climate Change Response Promotion Committee will study climate change and regularly present proposals and reports to the Board of Directors. The Board of Directors will supervise and instruct the Committee.
• Proposals deliberated and decided on by the Board of Directors will be rolled out to the individual departments and reflected in their respective management plans and business operations.

2.Strategy

• Identifying climate change as one of medium- to long-term risks, for the purpose of considering strategies based on related risks and opportunities and organizational resilience, we conducted a scenario analysis mainly of our architecture (including detached housing) and civil engineering businesses, to study the impact on Takamatsu Construction Group over the long term until 2050. In this exercise, we referred to the climate change scenarios (under 2°C scenario and 4°C scenario) presented by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

*Under 2°C scenario: Scenarios in which measures are taken to minimize temperature rises, including tightening of restrictions and changes to markets (IEA-WEO2022-APS, IPCC-AR5 [Fifth Assessment Report], - RCP2.6, etc.)

*4°C scenario: Scenarios in which temperature rises result in physical impacts, e.g. extreme weather events (IPCC-AR5 (Fifth Assessment Report), - RCP8.5, etc.)

3.Risk Management

• We set up a working group on climate change risks to conduct the scenario analyses. For the prioritization of climate change risks, taking into accountthe possibility of risks and opportunities occurring to our own company and the degree of their impact, we will focus our efforts on key risk factors. The Climate Change Response Promotion Committee will continue these studies.
• As our process for the management of climate change risks, the Climate Change Response Promotion Committee will conduct analyses of such risks, propose and promote countermeasures, and manage their progress.
• The Group's risks have been integrated by having the Climate Change Response Promotion Committee manage climate change risks and collaborate with the Group companies and the Group's Group Internal Audit Department and Management Control Department, among other departments. Where necessary, the Committee also coordinates with the Board of Directors to build a company-wide risk management framework.

4.Metrics & Targets

• In order to quantitatively manage climate-related risks and opportunities, we have set the following reduction targets for the entire Group, using greenhouse gas emissions as a metric. As a measure against climate change, we will continue to implement initiatives to reduce emissions in our business activities, striving to achieve our reduction targets and contribute to a decarbonized society.

Major Risks and Opportunities Related to Climate Change and Our Responses (considered in respect of the architecture [including wooden detached housing] and civil engineering businesses)

Greening with Bio-Diversity in Mind

Greening with Bio-Diversity in Mind by Toko Geotech Corporation Co., Ltd.

To realize "nature recovery by revegetation of domestic species with consideration to bio-diversity", Toko Geotech Corporatoon Co.,Ltd. has been conducting proprietary operation of seed harvesting and seed storage to be used in slope greening environment operation. Concerning future slope and surface greening operation, the demand is more towards greening operation by using domestic species, rather than using foreign species. Toko Geotech will contribute towards national land greening by preparing revegetation menu that can respond to various needs.

[Revegetation Method by Toko Geotech Corporation Co.,Ltd.]

Eco-Stripe Revegetation Method (Non-planar Seeding Method)

Reme-Forest Revegetation Method (Natural Plant Invitation Method)

Recycle Earth Green Revegetation Method (Resource Circulation Revegetation Method)

Japan Tree Seed Laboratory

Through collection of domestic seeds and proprietary technology of "early germination inspection method", this laboratory conducts seed quality inspection, issue quality certifications and seed storage technology development.

Seed Storage, Scaling and Packaging Center (RS Center)

This center stores domestic seeds for mid to long-term by using our proprietary technology, as well as packaging, measurement and shipping of various seeds.

Wind Power Generation Project

Asunaro Aoki Construction Co.,Ltd. : Wind Power Generation (Renewable Energy) Project

Solar Power Generation Project

Asunaro Aoki Construction Co.,Ltd. : Solar Power Generation (Renewable Energy) Project