Environment

Based on our corporate philosophy of "Contributing to local medical care" and our sustainability philosophy of "Act today for a better tomorrow," Medius Holdings aims to achieve both a sustainable society and sustainable corporate growth, and is proactively working to reduce our environmental impact. We will focus on key areas and contribute through continuous promotion and improvement.

Environmental policy[Japanese Only]

We established the Sustainability Committee in June 2023 with the aim of integrating ESG aspects into our management strategy and practicing sustainable management with a long-term perspective. The committee meets once a quarter and is chaired by President and CEO Medius Holdings Co., Ltd. and President, who is responsible for responding to climate change, and is composed of members such as the Director in Director responsible for sustainability, executive officers, and expert chairpersons. It is responsible for identifying important sustainability issues, formulating strategies and goals, managing and evaluating the progress of measures, and overseeing their deployment throughout the group.

With regard to climate change issues in particular, we have established a specialized committee, the Social Coexistence Committee, which consolidates the details discussed in each division and reports them to the Board of Directors through the Committee.

The Board of Directors oversees the status of executive efforts regarding climate change and provides feedback to the Sustainability Committee.

●Analysis Process

With reference to each risk and opportunity item outlined in the TCFD recommendations, we have taken the following steps to consider the risks and opportunities that climate change issues pose to our group's business.

In addition, using two scenarios, a 1.5°C scenario and a 4°C scenario, we conducted an analysis of transitions in policies and market trends (transition risks and opportunities), as well as an analysis of physical changes due to disasters, etc. (physical risks and opportunities).

In the 1.5°C scenario, external pressure to decarbonize will intensify, leading to a world view in which energy-saving equipment and environmentally friendly products are selected in the medical field, and we recognize that low-carbon products and our own emissions reduction activities will have an impact on improving corporate value. On the other hand, in the 4°C scenario, low-carbonization and decarbonization will not be promoted, CO2 emissions will tend to increase, abnormal weather and disaster risks will increase, and business activities may be affected by supply chain disruptions.

Process for Identifying and Assessing Climate-Related Risks

Climate change risks are identified and evaluated by the Sustainability Committee through each business division, the Social Coexistence Committee, and the Risk Committee. The Risk Committee evaluates once every six months, and in the future will evaluate the impact on finances and urgency as priority evaluation items. Risks that are deemed to be particularly important as a result of the evaluation will be reported to the Board of Directors through the Sustainability Committee as necessary.

Process for Managing Climate-Related Risks

The identified and evaluated risks are coordinated with the Risk Committee, which is responsible for risk management for the entire company, to build a company-wide integrated risk management system. The countermeasures considered by the Risk Committee are reported to the Board of Directors via the Sustainability Committee, after which they are discussed and considered by the Board of Directors and notified to the relevant group companies.

●Integration Process for Company-Wide Risk Management

Our Group has established the Risk Committee as one of the specialized committees of the Sustainability Committee.
The Risk Committee meets once a quarter to manage risk across the entire Group.
The Risk Committee collects and examines important risks that have been evaluated, analyzed, and reported by the Compliance Committee, the Group-wide committees (Information Systems Committee, Human Resources and General Affairs Committee, etc.), and the specialist committees of the Sustainability Committee (Social Coexistence Committee, Human Capital Committee, etc.), and reports to the Board of Directors in cooperation with the Sustainability Committee. Climate-related risks are also managed as a company-wide integrated risk through cooperation between the subcommittees of the Social Coexistence Committee and the Risk Committee.

In order to evaluate and manage the impact of climate-related issues on our business, our Group began calculating its greenhouse gas emissions (Scope 1-3) in fiscal year 2022 (July 2022 to June 2023) based on the standards of the GHG Protocol, and has also carried out calculations for fiscal year 2023 (July 2023 to June 2024). Regarding the reduction of greenhouse gas emissions, we have set a target of reducing Scope 1-2 emissions by 42% from the fiscal year 2022 baseline emissions for our Group by fiscal year 2030. Going forward, we will strive to reduce greenhouse gas emissions not only within our Group, but also throughout our entire supply chain.

<Greenhouse gas emissions in fiscal 2023 (Scope 1-3)>

Scope	Scope 3Category	Emissions(t-CO2)
Scope 1+2total		10,133
Scope 1		7,124
Scope 2		3,009
Scope 3	1 Purchase	1,380,365
	2. Capital goods	4,837
	3. Other fuels	2,034
	4. Transportation (upstream)	1,666
	5. Waste	143
	6. Employee Business Travel	441
	7 Employee commuting	1,044
	11 Use of the Product	213,174
	12 Product Disposal	81
	Scope 3 total	1,603,786
total		1,613,919

<Calculation results of greenhouse gas emissions (Scope 1-3) for fiscal 2023>
*Scope 3: 8. Leased assets (upstream), 9. Transportation (downstream), 10. Product processing, 13. Leased assets (downstream), 14. Franchises, and 15. Investments are not included in the calculations as they are not related to our business.
*Scope 3 11 Product use and 12 Product disposal are calculated for five companies: Kyowa Medical Corporation Co., Ltd., Kurihara Medical Instruments Kuribara Medical Instruments Co.,Ltd., Ltd., ALVAUS, Inc., Ltd., Akita Medical Instruments Co., Ltd., and SANO MEDICAL INSTRUMENTS Co., Ltd. Co., Ltd.