TNFD-aligned disclosure of nature-related information

October 6, 2026

 Recognising that the maintenance and restoration of natural capital is fundamental to business sustainability, the KOKUSAI ELECTRIC Group discloses nature‑related information in line with the TNFD recommendations. We apply a double‑materiality approach (financial and impact assessments) and have established indicators and targets for material environmental priorities: climate change mitigation, circular economy practices, and conservation of water resources.

The Board possesses the skills and experience required to oversee Our Group’s environmental and natural capital matters (e.g., climate change, circular economy, water resources). It receives regular reports from the Sustainability Committee (chaired by the President and Executive Officer) and reviews the appropriateness of measures, targets and progress on nature‑related risks and opportunities — such as reductions in water intake and industrial waste final disposal rates — thereby assuring governance effectiveness.

The Environment Committee annually identifies nature‑related risks and opportunities at the operational level and reports them to the Sustainability Committee. The Sustainability Committee evaluates these items in terms of their potential impact on business continuity and decides on specific targets and participation in nature‑positive initiatives. We plan to explore extending management and measures across the entire supply chain over time.

Our Group implements human rights due diligence and operates an external reporting hotline (compliance reporting system) that serves as a remediation channel for human rights issues arising from nature‑related activities. To date, no direct impacts on Indigenous peoples or cases requiring FPIC or Nagoya Protocol considerations have been identified at our manufacturing and development sites, and there have been no complaints to the OECD NCP. As Our Group extends upstream in the value chain, we will consider establishing procedures to verify Indigenous peoples’ rights within procurement over the medium to long term.

As part of CSR and efforts to protect water sources, Our Group participates in local river clean‑ups and other watershed biodiversity activities to support local ecosystem health and raise environmental awareness among employees. Currently, we do not engage in lobbying on nature‑related policies; instead, we intend to develop dialogue processes around our six manufacturing and development sites as we progress toward nature‑positive objectives set out in our Environmental Action Plan.