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Proterial Makes Fiscal 2026 Disclosures
Based on the TCFD and TNFD Recommendations


Proterial, Ltd.

Proterial, Ltd. (hereafter “Proterial”) today made disclosures for fiscal 2026 regarding the impact of climate change on its business activities, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

In addition, in a first for the company, Proterial also disclosed information based on the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD), in an effort to step up action on issues related to natural capital and biodiversity.

1. Background and Purpose of the Information Disclosures

Proterial views the impact of issues related to climate change, natural capital and biodiversity on its business activities as one of its key management challenges.

In June 2021, Proterial expressed its support for the TCFD recommendations and has since continually analyzed and disclosed information on the impact that climate change has on its business activities. By gaining an accurate understanding of the risks and opportunities related to climate change, reflecting those insights in its management strategy and making highly transparent information disclosures, Proterial has strived to gain the trust of stakeholders while achieving sustainable growth through these efforts.

With the loss of the biodiversity that provides ecosystem services becoming a global issue in recent years, efforts to achieve nature positivity (nature restoration: halting and reversing the loss of biodiversity to put nature back on a path to recovery) by 2030 have accelerated globally. As one of those efforts, in 2023 the final recommendations (v1.0) of the TNFD were announced as an international framework for companies to evaluate their natural capital and biodiversity-related dependencies, impacts, risks and opportunities, and disclose information from a financial perspective.

Given this background, Proterial has made information disclosures based on the TNFD recommendations for the first time. Going forward, Proterial will make ongoing enhancements to these disclosures in an effort to manage and better mitigate its nature-related risks, expand the information it provides to stakeholders, and improve its corporate value.

2. Key Points of the Disclosures for Fiscal 2026

(1) Disclosures based on the TCFD recommendations

(i) CO2 emissions (Scope 1 + 2) for the entire Proterial Group in fiscal 2025 decreased 16% year on year. Toward achieving the target 38% reduction in emissions compared with fiscal 2015 levels by fiscal 2030, Proterial has steadily advanced energy-saving measures and efforts to adopt renewable energy.

(ii) Proterial obtained third-party certification for its Scope 1, Scope 2 and Scope 3 Category 1 emissions in an effort to ensure the transparency and reliability of greenhouse gas emissions data.

(iii) Proterial developed an enterprise risk management (ERM) system to step up its risk management activities. Based on its environmental strategy to turn risks associated with climate change into growth opportunities, Proterial is aiming to achieve green growth.

(2) Disclosures based on the TNFD recommendations

(i) Based on the TNFD disclosure framework (v1.0), Proterial used the LEAP approach (see note) to conduct an analysis targeting the direct operations of the Proterial Group.

(Note) LEAP approach: an approach used by companies to identify their relationship with nature and assess their nature-related risks and opportunities. The LEAP approach involves four stages: Locate (L) the interface with nature, Evaluate (E) dependencies and impacts on nature, Assess (A) nature-related risks and opportunities, and Prepare (P) to respond to and report on nature-related information.

(ii) Of the priority sites that were identified, Proterial conducted scenario analyses for the sites, namely the Proterial, Ltd. Yasugi Works and the Proterial Metals, Ltd. Tsuchiura Works, to qualitatively identify nature-related risks and opportunities of high importance. In conjunction with these efforts, Proterial disclosed its fiscal 2024 results and fiscal 2030 targets regarding key response measures and related metrics.

(iii) Going forward, Proterial will expand the scope of analysis to other priority sites in the Proterial Group as well as upstream and downstream sites along the supply chain, while continuing to explore ways to enhance its disclosures.

Looking ahead, Proterial will continue to appropriately identify and manage risks and opportunities related to environmental capital while seeking ongoing dialogue with stakeholders to pursue its stated vision of being “a high-performance material company that supports a sustainable society.”

2026