Converting 100% of Power Used at Ogata Plant to Renewable Energy

Daiichi Kogyo Seiyaku Co., Ltd. (Headquarters: Minami-ku, Kyoto; Representative Director and President: Naoki Yamaji) has concluded an off-site PPA*1 "D-Green EX" contract and a renewable energy power menu "D-Green"*2 contract with Daigas Energy Co., Ltd. (Location: Chuo-ku, Osaka; hereinafter "Daigas Energy"), a wholly-owned subsidiary of Osaka Gas Co., Ltd. (Location: Chuo-ku, Osaka). This initiative aims to achieve zero CO2 emissions associated with electricity use at the Ogata Plant (Joetsu City, Niigata Prefecture), the company's main production base. This is expected to result in a CO2 emission reduction of approximately 4,000 tons per year. Under our mid-term management plan "SMART 2030", we have established "Sustainability" as a key management keyword. As part of our response to social issues, we have set "Carbon Neutrality by 2050" as one of our materialities, and in our long-term environmental vision, we aim for a "30% reduction in greenhouse gas (CO2) emissions by FY2030 (compared to FY2013)." Since last year, we have revamped our Sustainability Committee and are further accelerating our activities. Furthermore, as a major measure of our GX (Green Transformation) strategy, we have been promoting not only the efficiency of production equipment and process improvements but also the introduction of renewable energy. The reduction of CO2 emissions from electricity used at the Ogata Plant is a symbolic initiative that leads the decarbonization of the entire group. Under this contract, we have enabled stable procurement of renewable energy by combining an "off-site PPA," which supplies power from remote solar power plants, with a renewable energy power menu. With this introduction, we will achieve a reduction equivalent to 60% of the required reduction amount by FY2030. Based on our GX strategy, our company will continue to gradually increase the ratio of renewable energy, aiming to realize a sustainable society and enhance corporate value. - Implementation Site: Daiichi Kogyo Seiyaku Co., Ltd. Ogata Plant - Reduction Effect: Approximately 4,000 tons of CO2 emissions/year (estimated) * Equivalent to 60% of the target reduction amount (estimated) - Procurement Method: Off-site PPA "D-Green EX" + Renewable Energy Power Menu "D-Green" *1 PPA (Power Purchase Agreement): A power purchase contract concluded with power producers, etc. An off-site PPA is a contract method to procure electricity generated at a power plant far from the demand area via retail electricity providers, etc. *2 "D-Green" is a power menu that supplies 100% renewable energy by using non-fossil certificates for electricity generated at renewable energy power plants that do not include thermal or nuclear power. [Inquiries Regarding This Release] Daiichi Kogyo Seiyaku Co., Ltd. PR & IR Department, Strategic Headquarters, Administrative Division TEL. 075-276-3027 E-mail: d-kouhou@dks-web.co.jp 48-2 Higashikujo Kamitonodacho, Minami-ku, Kyoto 601-8002