The Asahi Kasei Group publishes cost and performance data concerning its environmental activities.

• Investment for Environmental Protection and Safety
• Environmental Accounting
• Environmental Management
• Climate change
• Pollution Prevention and Resource Circulation / Water Resource Preservation

Investment for Environmental Protection and Safety

The Asahi Kasei Group has invested the necessary management resources in ESH & QA activities.
Investments in environmental protection and safety-related facilities up to fiscal 2023 and in fiscal 2023 are shown below.

Investment for Environmental Protection and Safety

Investment for Environmental Protection and Safety

(¥ billion)

Environmental Accounting

We classify the cost of our measures for environmental protection in accordance with cost classification standards promulgated by the Ministry of the Environment.

Environmental accounting by fiscal year

(¥ million)

Environmental Management

Number and percentage of sites with environmental management system certification (FY2023)

Certification	Number of certified sites		Percentage of certified sites (%)
	Japan	Overseas
ISO14001	22	37	79

Climate change

Eco-efficiency (JEPIX^*) performance

JEPIX-method eco-efficiency

Greenhouse gas emissions in Japan by fiscal year

(million tons CO₂ equivalent)

• Notes:
  
• ^*Calculation standards for greenhouse gas emissions:
  For greenhouse gases covered by the Act on Rationalization of Energy Use and Shift to Non-fossil Energy and the Act on Promotion of Global Warming Countermeasures, calculations are in accordance with the methods stipulated by these laws. For gases not covered by either law, calculation methods are based on considerations such as chemical reactions.
• ^*CO₂ emissions from generation of electricity and steam sold to other companies are excluded from data for the baseline year but included in annual data from fiscal 2013.
• ^*We have used 'basic' CO₂ emission factors for electricity purchased in Japan until FY2019, but we have opted to use 'adjusted’ CO₂ emission factors from fiscal 2020 onwards. The impact of this change on CO₂ emissions is minor.

Overseas greenhouse gas emissions by fiscal year

(million tons CO₂ equivalent)

• Note:
  
• ^*Calculation standards for greenhouse gas emissions:
  Overseas greenhouse gas emissions are calculated, in principle, based on the provisions given by the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures, and CO₂ emissions from the burning of by-product gases are mainly calculated by material balance. Until fiscal 2020, CO₂ emissions associated with purchased electricity were calculated using the latest country-specific emission factors shown in the International Energy Agency's (IEA) Emissions Factors. However, from fiscal 2021, in order to aggregate GHG emissions with values closer to actual situations, we have calculated emissions with the available emission factors in the following order of priority: 1) emission factors of procurement sources, 2) values set by national governments, and 3) IEA country-specific emission factors.

FY2023 global greenhouse gas emissions by segment

(million tons CO₂ equivalent)

Item	Material	Homes	Health Care	Other	Total
Total	2.94	0.10	0.12	0.00	3.17

Scope 3 emissions by fiscal year

(million tons CO₂ equivalent)

• Notes:
  
• ^* Calculation method for Scope 3:
  Our Scope 3 GHG emissions are calculated using the Corporate Value Chain (Scope 3) Accounting and Reporting Standard and its technical guidance issued by the Greenhouse Gas Protocol. For the greenhouse gas emission factors, we used data available in the Carbon Footprint Communication Program database prepared by the Japan Environmental Management Association for Industry and the Embodied Energy and Emission Intensity Data for Japan Using Input-Output Tables (3EID): Inventory Data for LCA prepared by the National Institute for Environmental Studies, Japan until fiscal 2019.
  Since fiscal 2020, we have referred to the Embodied Energy and Emission Intensity Data for Japan Using Input-Output Tables (3EID) (2015): Inventory Data for LCA prepared by the National Institute for Environmental Studies, Japan, IDEA v2.3 by the National Institute of Advanced Industrial Science and Technology, and the Emissions Unit Value Database Ver3.4 for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain issued by the Ministry of the Environment, etc.
• ^* Calculation method for purchased products and services:
  Items with emissions equal to or greater than 4,000 tons of equivalent were included. The emissions were calculated by multiplying the amounts, either in physical or monetary units, of products and services purchased from outside the Asahi Kasei Group by Asahi Kasei Corp. and its major overseas consolidated subsidiaries, Asahi Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Microdevices, and Asahi Kasei Medical by the respective emission factor for each type of raw material or service.
• ^*Calculation method for waste generated from business operations:
  From fiscal 2021, the activity volume was changed from final disposal volume to effluent volume.
• ^* Calculation method for use of sold products:

  Until fiscal 2020, the calculation was based on the calculation standards set by Asahi Kasei Homes and using the emissions intensity from Housing Tech. R&D Labs’ report. The period covered by the calculation was calculated based on the number of Hebel houses (detached houses and apartment buildings) delivered in each fiscal year (before fiscal 2020, based on the number of houses delivered; in fiscal 2020, based on the total floor area of Hebel houses delivered). The calculation period was set to 60 years of useful life, and the CO₂ emissions reduction effect based on the actual installation of energy-saving equipment, which differs in each case, was deducted from the calculation.

  From fiscal 2021, the following calculations were made using the Building Research Institute's "Energy Consumption Performance Calculation Program (Residential Version)" for house for which a certificate of confirmation was issued during the fiscal year.

  ∑ (annual energy use by energy type per household x emission factor by energy type) x useful life (60 years)

  Emission factor by energy type (FY2023)

  Emission factor

  Electricity 0.438 (t-CO₂/thousand kWh) and 8.64 (GJ/thousand kWh), city gas 0.051 (t-CO₂/GJ), kerosene 0.069 (t-CO₂/GJ)

• ^* Calculation method for end-of-life treatment of sold products:
  For Asahi Kasei Corp. and its major overseas consolidated subsidiaries, Asahi Kasei Construction Materials, Asahi Kasei Microdevices, and Asahi Kasei Medical, emissions are calculated by multiplying the weight of products purchased each fiscal year by the CO₂ emission factor at the time of disposal for each product.
  For Asahi Kasei Homes, emissions are calculated by multiplying the number of Hebel Haus units delivered each fiscal year by the CO₂ emission factor per building.

CO₂ emissions from product shipment (FY2023)

Proportion of low-pollution vehicles^*

(Number of vehicles)

• ^*Low-pollution vehicles
  Hybrid-electric vehicles, low-emission vehicles, fuel-efficient vehicles, and all-electric vehicles

Pollution Prevention and Resource Circulation / Water Resource Preservation

Asahi Kasei Group disposal of industrial waste

(Volume: thousands of tons, Percentage: %)

• ¹The definitions of "material recycling" and "heat recovery" were changed in FY2022
• ²Disposal of waste plastics based on the Plastic Resource Circulation Act
• ³Changed to include industrial waste from the domestic homes business in FY2022; figures for previous years have been revised accordingly

Emissions of specially controlled industrial waste^*

(thousand tons)

Fiscal year	2020	2021	2022	2023
Specially controlled industrial waste	34.7	23.1	18.6	14.6

• ^*Specially controlled industrial waste is industrial waste that is explosive, toxic, infectious, or has other characteristics that may be hazardous to human health or the living environment

AAC trimmings recycled by Asahi Kasei Construction Materials

(tons)

Maintenance and management status of waste treatment facilities^*

• ^* Based on the Act on Waste Management and Public Cleansing, we have posted maintenance and management records for waste treatment facilities owned by our company that are required to publish maintenance and management information.

Release and transfer of PRTR-specified substances by fiscal year

(tons)

• ^*PRTR-specified substances changed in fiscal 2023 due to regulatory revision.

VOC^* air emissions

• ^*VOC Volatile organic compound. Although the term generally applies to any organic compound which is in gaseous state at the time of release, regulations for the control of their release exclude methane and some fluorocarbons which do not form oxidants.

FY2023 release and transfer of PRTR-specified substances

(tons)

• Notes:
  
• ^*Substances whose total emissions into the air, water, and soil at a given site are at least five tons/year are listed along with their emission amounts, etc.
• ^*Rounded to the nearest ton.

Asahi Kasei Group (Japan) fluorocarbon leakage volume

(tons CO₂)

Core Operating Companies / Affiliated Companies	FY2021	FY2022	FY2023
Asahi Kasei Corp.	1,265.3	949.9	499.4
Asahi Kasei Medical Co., Ltd.	244.4	116.7	31.0
Asahi Kasei Pharma Corp.	58	99.3	33.9
Asahi Kasei Homes Corp.	3.3	40.6	1.6
Asahi Kasei Construction Materials Corp.	1.2	14.2	0
Asahi Kasei Microdevices Corp.	0	0	0
Other affiliated companies	152.4	106.1	50.1
Total	1,724.5	1,326.9	616.0

Release of air and water pollutants by fiscal year

Air emissions by site

(tons)

• Notes:
  
• ¹ Sulfur oxides (SOx) are formed when crude oil, fuel oil, or coal containing sulfur are used as fuel. Sulfur dioxide (SO₂) is most common, but some sulfur trioxide (SO3) also forms. The term SOx is inclusive of both of these.
• ² Nitrogen oxides (NOx) are formed in nature and during combustion at thermal power plants, factory boilers, internal combustion engines, and incinerators. The term NOx is inclusive of both nitric oxide (NO) and nitrogen dioxide (NO₂).
• ³ Soot and dust are fine particles formed in the combustion of fuel and other materials.
• ⁴ Chemical oxygen demand is an indicator of water pollution by organic substances. COD is expressed in terms of the amount of oxygen that can be consumed by an oxidizer to chemically oxidize the organic substances contained in the water.

Water withdrawals and discharges

(Million m³)

• Note: Due to a review in aggregation, figures for fiscal 2022 and earlier have been revised.

Water withdrawals and sources by fiscal year in Japan

(Million m³)

Water discharges by site in Japan

(tons)

Number of Group Employees

Number of Employees by Status

Persons with disabilities

• Note:The number of employees and the employment rate for FY2021 and FY2022 were revised to reflect a review of the calculation basis.

Employment/Retention

• ^*Excluding mandatory retirees. The retirement age in Japan changed from 60 to 65 in FY2023. The number of resignations in FY2023 increased due to a certain number of employees retiring at the age of 60.

Working Hours / Salary

• Note:Average figures per employee shown.

Education/Training

• ^*Figures for FY2020 and FY2022 were revised to reflect a review of the calculation basis.

Diversity / Work-life Balance

• ^*As of June 30 each year.

Gender Pay Gap

Occupational Health and Safety

• Note:Due to a review in aggregation, FY2022 figures for group lost time frequency rate, group severity rate and number of lost-worktime injuries were revised.
• Note:FY2021 and FY2022 figures for work engagement and workplace dialogue implementation were revised to reflect a review of the calculation basis.

Social Contributions

Scope Notes

• ¹ Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Pharma, and Asahi Kasei Medical
• ² The rate of employment and the number of persons employed are the average figures for each fiscal year for applicable companies of the Asahi Kasei Group. Calculations are based on total employment of 27,992.0 persons at the 22 applicable companies as of June 1, 2023. (number of persons calculated in accordance with the Act on Employment Promotion, etc. of Persons with Disabilities)
• ³Asahi Kasei Group companies in Japan as defined in the Asahi Kasei Group ESH & QA Regulations (a list of departments implementing Asahi Kasei's ESH & QA Program can be downloaded from the following page)
  https://www.asahi-kasei.com/sustainability/rc/#anc-09
• ⁴ Employees of major Japanese subsidiaries in addition to companies listed in Note 1

Corporate Governance

• (As of July of each year)

• Note:The number of Board of Directors meetings and committee meetings and their attendance rates are reported on the following page.

• Corporate Governance