Climate-related Financial Information Disclosure（TCFD）

Metrics and Targets

Metrics and Targets Used to Assess and Manage Climate-related Risks and Opportunities

Konica Minolta seeks to achieve Carbon Minus status by actively helping to reduce global CO₂ emissions in cooperation with its stakeholders, especially suppliers and customers. The Group defines Carbon Minus status as contributing more to CO₂ emissions in areas outside of our responsibility (reduction of other than Scope 1, 2 and 3) than to CO₂ emissions reductions in areas we are responsible for (Scope 1, 2, and 3 emission). Based on recent social demands, we have decided to target “net zero” CO₂ emissions in areas we are responsible for. Konica Minolta hopes to accelerate the effects of decarbonization, broaden its ties with stakeholders, and grow its business together, by not only helping stakeholders fulfill their social responsibilities but also fulfilling ours.

Note:
・Scope 1: Direct emissions from the company, such as those from the use of fuel.
・Scope 2: Indirect emissions resulting from the use of electricity, heat, and steam supplied by other companies.
・Scope 3: Emissions related to the company's business activities within the value chain, including raw material procurement, logistics, and product use.

Carbon Minus and Net Zero Targets

(For more information on targets and results, please refer to Sustainability Targets and Results)
For detailed data, please refer to ,the Environmental Data (Excel) on the ESG Data page.

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1. Greenhouse Gas Emissions (Scope 1, 2, and 3 Emissions)

Konica Minolta has established the goals of reducing CO₂ emissions over the product lifecycle, as its metric for managing the risks posed by climate change. Product lifecycle CO₂ emissions include all Scope 1 and 2 emissions (CO₂ emissions generated during the production stage and the sales and service stage) and the main components of Scope 3 emissions (CO₂ emissions at the procurement stage, distribution stage, and product use stage).
In the short term, Konica Minolta has set a target of a 61% reduction (800,000 tons) compared to 2005 CO₂ emission levels by 2025, and in the medium term, a 70% reduction (720,000 tons) by 2030. In fiscal 2023, the reduction was 750,000 tons (Scope 1 was 150,000 tons, and Scope 2 was 140,000 tons, and the primary Scope 3 was 460,000 tons), a 63% reduction, reducing 5 points compared to 58% in fiscal 2022. The Company has obtained the assurance of a third party on its actual CO₂ emissions figures to ensure their validity.
In the short term, Konica Minolta has set a target of reducing CO₂ emissions by 61% (800,000 tons) compared to 2005 levels by 2025, and in the medium term, a 70% reduction (720,000 tons) by 2030. In fiscal 2023, the Company achieved a reduction of 750,000 tons (Scope 1: 150,000 tons, Scope 2: 140,000 tons, primary Scope 3: 460,000 tons), representing a 63% reduction, an improvement of 5 points compared to 58% in fiscal 2022. The Company has obtained third-party assurance of its actual CO₂ emissions figures to ensure their validity.

CO₂ Emissions in the Product Llifecycle (Scopes 1, 2, and 3)

(Unit: thousand tons-CO₂)

			Results					Targets
			FY 2005 (Base year)	FY 2018	FY 2021	FY 2022	FY 2023	FY 2025	FY 2030
Product lifecycle CO₂ emissions			2,067	1,041	790	851	748	800	620
	Scope 1 (Production, sales and service)		254	170	159	151	148		170
	Scope 2 (Production, sales and service)		220	197	164	151	139		170
	Scope 3 (Procurement, distribution, product)		1,592	675	467	548	462		450
		Category 1 (Purchased goods and services)	397	437	247	296	272
		Category 4 (Upstream transportation and distribution, of which, distribution of products)	58	26	41	83	28
		Category 11 (Use of sold products)	1,137	211	179	169	162

: Note: Figures may not add up due to rounding.

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2. Transition Risk

Konica Minolta believes that conducting business with a focus on quickly conforming to the needs of renewable energy-based society that is not reliant on fossil fuels, which are a major cause of man-made CO₂ emissions, is a necessary condition for any company to grow sustainably. Based on this belief, Konica Minolta has adopted the “ratio of electricity derived from renewable energy” as a management indicator for transition risk and set a target of procuring 100% renewable energy for use in its business operations by 2050. In the medium term, we have set a target of increasing the ratio to more than 50% by 2030. In fiscal 2023, the ratio of electricity derived from renewable energy increased from 12.3% in fiscal 2022 to 13.5% due to the full operation of electricity use derived from renewable energy at our production sites in Malaysia (installed solar energy generation equipment and used renewable energy certificates).
In the Business Technologies Business, which accounts for about 75% of the Konica Minolta Group’s total sales, it is becoming increasingly clear that stakeholders are demanding that the Group introduce renewable energy procurement. The Company views this social demand as a business risk and is prioritizing it as a priority action item, and has achieved 100% renewable energy at all overseas MFP production sites. It has also converted 33% of the total electricity consumption of its Business Technologies Business to renewable energy and plans to bring renewable energy use up to 45% by fiscal 2024. Konica Minolta will continue to conduct annual risk reviews and consider introducing renewable energy-derived electricity in projects with potential risks.

Ratio of electricity derived from renewable energy

: Note：Ratio of renewable energy-derived electricity to the Konica Minolta Group’s overall energy use (not including co-generated power) in fiscal 2019.Ratio of renewable energy-derived electricity to the Konica Minolta Group’s overall energy use beginning after fiscal 2020.

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3. Physical Risk

The Business Technologies Business accounts for about 75% of the Konica Minolta Group’s total sales. The Business Technologies Business, the Group’s core business, delivers products to customers in 150 countries around the world. Therefore, a large-scale climate disaster in any part of the world could affect the Group’s production and supply capacity. To strengthen the Group’s cost competitiveness and supply products to the market quickly, the Konica Minolta Group will continue to employ overseas production and maintain a policy of procuring parts and materials from multiple suppliers around the world.
In addition, to prepare for such a disaster risk, the Group is working to ensure a highly resilient supply chain structure that can supply products at the place of consumption by developing multiple Konica Minolta sites in Japan, Europe, and North America to produce and supply parts for consumables in the Professional Print Business and the Office Business, as well as printing toner.

4. Climate-related Opportunity

Konica Minolta believes that as society transforms in the direction of decarbonization, the solving of climate change issues will provide business opportunities and lead to sustainable corporate growth. By actively introducing innovative technologies and combining them with Konica Minolta’s strengths in imaging-IoT technology and digital input and output, the Group seeks to both solve environmental issues and expand business by creating solutions that help solve social issues, including climate change.
The Group has also established metrics for both the economic and environmental value it creates by providing products and solutions to stakeholders. The two indicators that have been established for economic value are: the volume of sales of green products that help address climate change, and the percentage of total group sales they represent (percentage of green product sales).
The two indicators that have been established for environmental value are: “CO₂ reduction during product usage” (reduction of Scope 3 emissions through energy-saving design, product development, etc.) and “contributions to CO₂ reduction” (contribution to reductions beyond Scope 1, 2, and 3 through solutions that innovate customers’ production processes).

Economic Value

In fiscal 2023, actual sales of green products that help address climate change came to 772.8 billion yen. This represented 67% of the Konica Minolta Group's total sales.
In fiscal 2025, Konica Minolta has redefined the criteria for green product sales that help address climate change and has set a target of green products comprising 70% of total revenues.

Environmental Value

In fiscal 2023, CO₂ emissions reduction during product usage was 7 thousand tons, against a target of 8 thousand tons. The contribution to CO₂ reductions was 630 thousand tons, meeting the target of 630 thousand tons. The Group expanded sales of digital printers that improve productivity by transforming work processes from analog to digital printing, mainly in the professional print business.
For fiscal 2025, the Group has set targets of reducing CO₂ emissions during product usage by 21 thousand tons and contributing to CO₂ reductions by 800 thousand tons, which exceeds the amount of CO₂ emissions in the lifecycle of its products.

5. Capital deployment

Konica Minolta is transforming has identified “addressing climate change” as one of the five material issues to be addressed in its long-term management vision. The Company is investing capital in business activities that contribute to improving corporate value and achieving a low carbon society over the medium to long term. R&D expenses for projects that help address climate change (contribute to CO₂ reduction) totaled 29.57 billion yen in fiscal 2023, accounting for about 45% of the Konica Minolta Group’s total R&D expenses.

6. Remuneration

In order to increase incentives to achieve the goals of the Medium-term Business Plan and to promote the ownership of the Company's shares, Konica Minolta has introduced the CO₂ emission reductions through measures as one of its non-financial indicators for evaluation that comprise the performance-linked medium-term stock remuneration.
Executive remuneration for the President and CEO and other Executive Officers will be determined in the range of 0% to 200% after the completion of the Medium-term Business Plan, depending on the degree of achievement of the targets, and will be delivered in the form of Company stock. It is selected as an evaluation indicator in order to address climate change while linking environmental value to business growth.

*: In addressing climate change, we initially set the “CO₂ emissions reduction rate” as an indicator. However, taking into account the impact of production and sales volume, it was resolved at the Compensation Committee meeting held on April 23, 2024, to revise the indicator to “CO₂ emissions reductions through measures.”

Metrics and Targets