Taskforce on Nature-related Financial Disclosures (TNFD)

Initiatives for TNFD

EBARA Group regards the conservation of biodiversity as a key issue and has used the LEAP approach (Version 1.0) of the Taskforce on Nature-related Financial Disclosures (TNFD) to investigate and analyze the interaction between its business activities and the natural environment.

This page discloses the nature-related risks and opportunities identified in accordance with this framework, as well as our initiatives.

・Evaluate: Assessment of business dependence and impact on natural capital
・Locate: Identification of priority locations
・Assess: Identification of our Group's nature-related risks and opportunities
・Our Group's initiatives based on nature-related risks

Evaluate: Assessment of business dependence and impact on natural capital

To understand the relationship between natural capital, including biodiversity, and our Group's business, we evaluated the dependence and impact of our Group's business (own operations) on natural capital using ENCORE, an analytical tool recommended by the TNFD.

ENCORE Evaluation

Dependency materiality

Provisioning Services	Water supply, Other provisioning services - Animal-based energy
Regulating & Maintenance Services	Global / Local (micro and meso) climate regulation
	Storm / Flood regulation	Rainfall pattern regulation
		Storm mitigation
		Flood control
	Water flow regulation
	Pollution remediation	Solid waste remediation
	Pollution remediation	Water purification
	Soil and sediment retention
	Noise attenuation
	Other regulating and maintenance service

Pressure materiality

Resource use	Volume of water use
Climate Change	Emissions of GHG
Pollution	Generation and release of solid waste, Emissions of non-GHG air pollutants, Emissions of toxic / nutrient soil and water pollutants, Disturbances (e.g noise, light)
Land, freshwater and ocean use change	Area of land use, Area of freshwater use, Area of seabed use
Invasive alien species	Introduction of invasive species

Based on the ENCORE evaluation results, we identified particularly material items in the Group's own operations.

Material dependencies: Water resources

Material pressures: Water use, GHG emissions, and solid waste generation by the Group's operations

Identification (Locate) of priority bases

Using IBAT, a tool for assessing the importance of biodiversity, we investigated the presence or absence of nature conservation areas around our Group's manufacturing and maintenance bases.

Tools	Evaluation	Evaluation Scope	Presence of nature conservation areas	Absence of nature conservation areas
IBAT	Biodiversity importance	10km radius	101 bases	71 bases

*Survey conducted in 2024

Among our Group's manufacturing and maintenance bases, we identified priority bases (7 bases) that require particular attention in environmental management.They were identified based on the following criteria:

- Selection target: Bases with high water consumption or total waste volume (bases extracted within the range accounting for 95% of the total volume for each)
- Evaluation: Identify bases with "Presence of nature conservation areas" using IBAT evaluation.

Identification (Assess) of our Group's natural capital-related risks and opportunities

While the ongoing degradation of natural capital poses growing risks to the EBARA Group's value chain, driving nature-positive outcomes through our operations presents significant business opportunities.

Based on the highly material impacts and dependencies identified during the "Evaluate" phase (water use, GHG emissions*, and solid waste generation), we assessed potential nature-related risks and explored corresponding business opportunities in alignment with the TNFD classifications.

* Excluded from the table below as they are considered in the scenario analysis of climate-related disclosures. For risks and opportunities related to GHG emissions, see the Climate-related Disclosures.

Risks/opportunities		Potential nature-related risks and opportunities expected in the EBARA Group
Physical risks	Chronic	・Difficulty in securing water resources due to escalating droughts and regional water demand.
Physical risks	Acute	・Operational and supply chain disruptions caused by extreme weather events (e.g., floods and droughts). ・Adverse impacts on local ecosystems due to water depletion or pollution from our operations.
Transition risks	Govt. policy	・Impacts on operations and procurement from tighter regulations regarding water withdrawal, waste, and wastewater.
	Market	・Loss of market position resulting from insufficient environmental initiatives, including recycling and water conservation.
	Technology	・Delayed time-to-market for new products caused by technological hurdles under stricter environmental regulations.
	Reputation	・Reputational damage among stakeholders caused by perceived inadequacies in environmental considerations. ・Lowered external ESG evaluations due to unmet or insufficiently ambitious environmental targets.
	Liability	・Potential environmental damage or harm to ecosystems in designated nature conservation areas. ・Legal and financial liabilities arising from violations of environmental regulations or contractual obligations.
Transition opportunities		We aim to develop and provide products and services with low environmental impacts in response to stricter environmental regulations and growing consumer awareness. ・Protecting human lives and social infrastructure from heavy rain and flood damage by delivering drainage pumps to pumping stations. (Mitigation of acute physical risks) ・Reducing the deionized water required in CMP systems, thereby lowering water consumption in our customers' semiconductor manufacturing processes. ・Developing the ICFG® Internal Circulating Fluidized Bed Gasification System, a chemical recycling technology that thermally decomposes plastics to recover resources such as ethylene and propylene. ・Developing land-based aquaculture solutions that contribute to the prevention of marine pollution and the protection of marine resources.

Measures by the Company Group based on Natural capital-related risks

To control natural capital-related risks, it is essential to thoroughly implement environmental management that minimizes our Group's dependence on and negative impact on natural capital through its business activities, and our Group is promoting the acquisition of ISO 14001 certification.

Furthermore, guided by the Group's environmental policy, we will continue our initiatives to reduce water consumption, GHG emissions, and waste generation—which were identified as material to our operations—as we aim to achieve EBARA Group FY2030 Environmental Targets.

Please check the following link for environmental initiatives and detailed data.

Environmental initiatives

ESG Data