Sustainability

Environment

Environmental Management OKI Group Environmental Activity Plan

OKI Group Environmental Activity Plan for FY2023 to FY2025

OKI has formulated the OKI Group Environmental Activity Plan for FY2023 to FY2025 to achieve the Group's medium- to long-term environmental goal of OKI Environmental Vision 2030/2050. The plan expresses the desire to promote environmental activities in business, such as the SDGs and decarbonization, and to use the process and results to disseminate information to stakeholders and lead to sustainable growth. All of these activities are supported by the vitalization of environmental activities by each employee.

In order to realize the OKI Environmental Vision 2030/2050, this plan has been detailed as an action plan by fiscal 2025, based on backcasting thinking, as shown in the table below.

Environmental Activity Plan for FY2023 to FY2025(Summary).

Environmental Themes	Initiatives	Classification	Applicable	Action Plan and Targets by FY2025
Entire	Expansion and creation of environmentally friendly products	opportunity	Merchandise	Increase ratio of environmental contribution net sales to overall net sales (35%)
Mitigation of Climate Change	Decarbonization of OKI sites	Risk	Base	21.0% CO2 emissions reduction for Scopes 1+2 (OKI sites) (compared to FY2020)
Mitigation of Climate Change	Decarbonization of the supply chain	Risk	Merchandise	12.5% CO2 emissions reduction for Scope 3 (suppliers + from the use of products) (compared to FY2020)
Prevention of Contamination	Appropriate management of chemical substances at factories	Risk	Base	Passing on chemical substance use history and enhancement of response procedures
Prevention of Contamination	Management of chemical substances contained in products	Risk	Merchandise	Update of management system functions and improvement of response efficiency
Resource Recycling	Reduction of waste from factories	Risk	Base	Recycling rate of 84% or more
Resource Recycling	Collection of used products	Opportunity	Merchandise	Recycle rate of collected used products of 90% or more
Reduction of Water Risk	Water consumption reduction	Risk	Base	Reduction of water consumption by 0.2% (compared to the previous fiscal year)
Conserving Biodiversity	Overall initiatives listed above	Risk	Base/Merchandise	Contribution to biodiversity conservation through climate change mitigation, pollution prevention, and resource recycling initiatives

OKI Group's Major Environmental Activity plans and results from FY2020 to FY2023

The following table shows the major activities and achievements of the environmental activity plan, in fiscal 2022.

Environmental Theme	Measures	Classification	Applicable	Action Plan through FY20-22	Achievements in Fiscal FY2022
Mitigation of Climate Change (Decarbonization)	Reduction of life cycle CO2	Risk	Entire	CO2 emissions during procurement and product use Target: 5.0% Renewable energy certificate purchase target: 1,350t-CO2	Actual reduction of 12.8% (compared to FY2020) Actual purchase of 1,760t-CO2 (cumulative total from 2020 to 2022)
Mitigation of Climate Change (Decarbonization)	Reduction of CO2 emissions from business sites	Risk	Base	Reduction of CO2 emissions from sites target of 8.4% (compared to FY 2013)	9.8% reduction(Compared to FY2020)
Adaptation to Climate Change	Measures against extreme weather: Measures against wind and flood damage, high and low temperatures, etc.	Opportunity	Merchandise	Developing solutions that contribute to climate change adaptation	Provision of disaster prevention information systems
Adaptation to Climate Change		Risk	Entire	Strengthen BCP/BCM for sites and important procurement	Implemented in each division
Prevention of Contamination	Strengthen management of chemical substances contained in products	Risk	Merchandise	Strengthen common operations throughout the Group	Strengthening operations through working groups across business divisions
Prevention of Contamination	Reduction of chemical substance emissions	Risk	Base	Monitoring of emission rate (*1) 1 at least once a year Alert: 2.5% emissions rate Target: 3.0% emissions rate or less	Conducted monitoring. (The emission rate in fiscal 2022 was 1.9%.)
Resource Recycling	Circular economy compatible	Opportunity	Merchandise	Creation of 3 circular economy projects	5 cases
Resource Recycling	Reduction of waste materials	Risk	Base	Recycling rate (*2) Above the average (83%) for FY 22014 to FY 18	Recycling rate of 85%
Entire	Expansion of eco-solutions	Opportunity	Merchandise	Sales of 72 billion yen (16% of total sales) or more	Sales 110.3 billion yen (27% of total sales)

*1 :
Amount of chemical substances released into the air/water system ÷ Amount of chemical substances input
*2 :
(Amount of value sold + Amount recycled by consignees) / (Amount of value sold + Amount of entrusted disposal)

Compliance with environmental laws and regulations

The OKI Group regularly assesses compliance with environmental laws and regulations and conducts internal audits at each site and division. In fiscal 2022, there were no serious violations of environmental laws or regulations, including waste treatment and chemical substance management (water, air, and soil).

Water consumption reduction targets and water shortage risk

The OKI Group's water consumption in fiscal 2022 was 1.69 million m3. Of this amount, 91% is used at production sites in Japan, and 5% is used at overseas production sites, accounting for 96% of the total. In FY 2022, water intake/consumption in water-stressed areas was 45,000 m3, or about 3% of the Group's total water consumption, and the risk of water shortage is considered to be low at present. (Water stress is defined as "high level" or higher in Base Line Water Stress of AQUEDUCT Water Risk Atlas and is evaluated periodically.)

Based on the belief that the impact of climate change will be felt in water in general, OKI has set an absolute reduction target of 0.2% or more from fiscal 21 for the Group's total water consumption in fiscal 22 in preparation for future water shortage risks. Water management plans cover "sites that use more than 100,000 m 3/year of water" in Japan and "water risk areas" overseas.There are 4 domestic sites and 1 overseas site.We plan to continue our efforts to reduce emissions.

As an example of water use at production sites in Japan, water used in production processes is neutralized and detoxified using chemicals before being discharged.In many cases, these sources of water are groundwater, which is abundant in Japan due to its geographical environment. In fiscal 22, we began setting group-wide targets for reducing water consumption, mainly at sites with large water withdrawals, with a view to future water shortage risks associated with climate change.

In Thailand, where the risk of water shortage is high, almost no water is used in the production process because the plant is an assembly plant. However, considering the scarcity of water resources in the region, we have set water reduction targets and will continue to do so.

In preparation for water shortages, one of our plants in Thailand has agreed to cooperate with an industrial park in dealing with water shortages. Groundwater is provided by the industrial park in the first stage of water shortage, and after a certain number of days, recycled water is provided in the second stage. In the second stage, the plant does not use water for production from the viewpoint of conductivity of water quality, but only for household water for employees, such as toilets and cafeterias, in consideration of production quality.

Water consumption by the OKI Group (FY 2020 results)

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