ENVIRONMENT

Environment Policy

Basic Policy

In order to conduct business sustainably and continue to create value, Broadleaf Group (“the Group”) believes it is necessary to identify the risks and impacts of climate change on its business and respond appropriately to them. Therefore, the Group will monitor the impacts of climate change, national policies and social trends to reduce CO2 and other greenhouse gas emissions, and respond appropriately to them in order to realize a sustainable society and enhance our corporate value.

Strategy

In 2022, the Group conducted scenario analysis as described in the “Climate Change Scenarios” to understand the impact of risks and opportunities related to climate change. It will use this opportunity to promote the development of services that not only address climate change-related risks but also help realize a sustainable society.
The Group will continue to regularly review the impact of climate change on its businesses to identify the latest climate change risks and opportunities, and to promote decarbonization activities.
The Group will also deepen the exchange of opinions with its stakeholders through the disclosure of information on its response to climate change, and improve initiatives against climate change and information disclosure standards.

Climate Change Scenarios

We conducted a scenario analysis to understand the impact of climate change issues on our business and to assess the resilience of our strategy to climate change-related risks and opportunities, using 4°C and 1.5°C scenarios for the global average surface temperature in 2100 compared to the pre-industrial revolution era. Also, time horizon of 2030 and 2050 were used to assess the impacts and business opportunities of the Group.

Risks arising from climate change

Classification	Content	Timing of realization	Degree of impact				Counter-measure
			4°C		1.5°C
			2030	2050	2030	2050
Laws and regulations	Increasing costs associated with new policies and regulations (e.g., carbon taxes, emissions trading schemes, energy saving regulations, etc.)	5 years-	Small	Small	Medium	Medium-Large	Further reduction of greenhouse gas emissions from business operations
Reputation	Loss of social credibility due to delay in addressing climate change	5 years-	Small	Small	Small-Medium	Medium	Continued disclosure of appropriate information, not limited to the status of compliance with laws and regulations
Physical issue	Increased occurrence of faliures in service provision infrastructure due to weather-related disasters	5 years-	Small-Medium	Medium	Small	Small～Medium	Continuation of disaster prevention measures related to business continuity

Opportunities related to climate change

Classification	Content	Timing of realization	Degree of impact				Counter-measure
			4°C		1.5°C
			2030	2050	2030	2050
Market	Growing demand for services that lead to the creation of green cities Growing demand for services that realize new reality Growing demand for services that lead to the spread of renewable energy and the development of a circular economy	5 years-	Medium	Medium	Medium-Large	Large	Active development of services that realize green cities and new reality Expansion of services that lead to the spread of renewable energy and the development of the circular economy
Reputation	Increase in social credibility by addressing climate change	3 years-	Small	Small	Small-Medium	Small-Medium	Continued disclosure of information, including the deployment of services that lead to the reduction of greenhouse gas emissions (de-carbonization)

Note: For both risks and opportunities, the impact of each item listed in the contents on business earnings is rated on a relative scale of "Small," "Medium," or "Large."

Status of Greenhouse Gas Emissions (Scope1/2)

Scope1 (direct GHG emissions by the Company)	1,085（t-CO2）
Scope2 (Indirect emissions from the use of electricity, etc. provided by others)	648（t-CO2）

Note: The amount is calculated from the offices of Broadleaf Co., Ltd.

Environmental Initiatives

We will leave a legacy of sustainability for future generations. To this end, every Broadleaf employee will implement initiatives to protect the environment and create a recycling-based society based on a strong awareness of the thinking behind our company name.

Protecting the Environment

Adaptation of next-generation vehicles for business systems

We started creating a database for next-generation vehicles such as electric vehicles (EVs) and Plug-in Hybrid Vehicles (PHVs), which will continue to emerge as a way to reduce the environmental impact of driving. This database will encourage more widespread use of next-generation vehicles, because providers of vehicle maintenance that use our systems will be able to inspect next-generation vehicles more efficiently. We will actively promote adaptation to EVs, PHVs and electrification technologies and support the realization of an eco-friendly, energy-efficient society.

Introducing eco-friendly vehicles

Broadleaf’s eco-friendly vehicles

In an initiative to reduce the environmental impact of our corporate activities, we changed 357 company vehicles used in our sales activities to vehicles which meet requirements under the low emission vehicle designations issued by the Ministry of Land, Infrastructure, Transport and Tourism. We are also gradually introducing eco-friendly vehicles at Group companies as a way to reduce CO2 emissions from our corporate activities and help prevent global warming.

Recycling-Based Society

Operating a recycled auto parts distribution network Recycled parts

Through the operation of the recycled parts distribution network “Parts Station NET,” we will seek to properly dispose of end-of-life vehicles as set out in the Act on Recycling, etc. of End-of-Life Vehicles. By encouraging more active participation in transactions involving recycled auto parts, we will help reduce waste, prevent illegal dumping and protect the environment. We will also conduct awareness raising activities to raise awareness of recycled parts among general car users and encourage greater use.