Initiatives related to the TCFD recommendations

In December 2021, we declared our support for the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD),¹ established by the Financial Stability Board (FSB).
We are working toward greenhouse gas (GHG) reduction targets approved by the Science Based Targets initiative (SBTi)². In addition, we proactively disclose relevant information in line with the TCFD recommendations and are working to accelerate our response to climate change with a view to becoming carbon neutral by 2050.
Climate change initiatives

1. An organization established by the FSB to identify and publicize the financial impacts of the risks and opportunities created by climate change
2. An international initiative to prevent global warming by setting GHG reduction targets that are based on scientifically sound principles

Climate-related disclosure based on the TCFD recommendations

SCREEN discloses the results of analyses and discussions of the risks and opportunities posed by climate change for the SCREEN Group in line with the TCFD recommendations.
We have established a TCFD project involving outside experts. The project has identified and evaluated material risks and opportunities for the Group’s major businesses and conducted scenario analyses.
Through the project, SCREEN will continue working to enhance its climate-related disclosure, including efforts to address the requirements of the SSBJ³standards.

3. Sustainability Standards Board of Japan

１．Governance

Climate-related risks and opportunities are discussed by the Group Risk Management Committee and the Sustainability Committee, both headed by the CEO, to determine the course of action for risk management and manage the progress of the initiatives. Each committee meets at least semiannually and reports its decisions to the Board of Directors. In addition, we launched a TCFD project joined by external experts in which we are conducting scenario analyses and reassessments of risks and opportunities for our major businesses.
In the fiscal year ended March 31, 2025, the committees reported climate change-related initiatives to the Management Committee and Board of Directors, including the formulation of an Environmental Policy, which addresses climate change, and the expansion of Super Green Products offerings, which are designed to reduce GHG emissions from the use of our products.
Please refer to the page below for more details on the corporate governance structure.
Corporate governance structure
Environmental Policy

2．Strategy

Scenario analysis process

A scenario analysis following the steps shown below was used to assess the financial impacts in 2030 of major climate-related risks and opportunities for the semiconductor production equipment business, display production equipment and coater business, graphic arts equipment business, and PCB-related equipment business. After examining multiple existing scenarios, including those published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), we selected a 3°C scenario that assumes that current conditions are maintained with no progress made on climate change action and a 1.5°C scenario that assumes substantial progress on climate change action.

Assessments of the materiality of climate-related risks and opportunities in each operating business
Consideration and preparation of scenarios
Assessments of risks and opportunities and financial impact, based on the scenarios
Consideration of countermeasures

Scenario analysis results and financial impacts (material risks and opportunities for the Group)

Types of risks and opportunities		Details of risks and opportunities	Financial impact	3℃ scenario	1.5℃ scenario
Transition Risks	Policy and Legal	Regulations on existing products and services	Increased manufacturing costs	Low	Medium
	Technology	Investment in new technologies	Increased development costs	Medium	Medium
	Market	Changes in market product needs	Decreased sales	Medium	High
		Request for reduce emissions to the supply chain	Increased manufacturing costs	Medium	Medium
		Changes in the energy market	Decreased sales	Low	High
	Reputation	Changes in reputation from clients	Decreased sales	Low	Medium
	Reputation	Securing outstanding human resources	Increased management cost	Low	Medium
Opportunities	Products and Services	Development of new products that contribute to energy conservation, etc.	Increased sales	Medium	High
		Responding to customer requests for ESG compliance	Increased sales	Low	Medium
		Increasing severity and frequency of extreme weather events	Increased sales	Medium	Medium
	Market	Increased demand for semiconductors due to higher performance and energy saving	Increased sales	High	High
		Manufacturing and selling products and providing services (Increased demand for power devices)	Increased sales	Medium	Medium
		Manufacturing and selling products and providing services (Increased demand for MEA and others)	Increased sales	Low	High

Financial Impact Assuming 2030: Low; less than 2%, Medium; 2% or more but less than 10%, High; 10-30%

Regarding physical risks, we identified flooding and other risks at our own production bases and major suppliers. We conducted scenario analyses for each site and business and took measures to diversify our supply chain and protect against flooding at production sites in order to ensure business continuity. As a result, we assess that the impacts as of 2030 will be minor.

Climate-change initiatives and responses

To satisfy clients' need to improve their environmental performance, the SCREEN Group is striving to reduce GHG emissions during product use in addition to reducing GHG emissions at business sites.
In the semiconductor production equipment business, which is our core business, we are focusing on research and development to meet needs for semiconductor manufacturing equipment that consumes less energy, water, and chemicals and that enables the production of advanced semiconductors that contribute to energy conservation. In addition to the Group’s independent efforts, we are also collaborating with other industry companies and organizations to further accelerate the development of environment-friendly technologies.

３．Risk management

The Group Risk Management Committee reviews risks, including climate-related risks, from a bird’s-eye view across the entire SCREEN Group, identifies material risks, and decides on courses of action for risk management in the Group.
We have comprehensively identified climate-related risks and opportunities across the value chain. Each risk and opportunity was assessed in a 3-by-3 matrix based on its impact and probability. Based on our assessment of each business area, we have also identified significant climate-related risks and opportunities for the Group.

● Climate-related risk and opportunity evaluation standards

We reflect climate-related risks and opportunities identified as material in our Group strategies and take appropriate countermeasures under the leadership of the Group Risk Management Committee and oversight by the Board of Directors.

４．Metrics and targets

We believe our efforts to support decarbonization through our businesses will ultimately result in reduced climate-related risks and increased opportunities.
The Group has set targets for reducing GHG emissions from business activities (Scope 1 + Scope 2) and GHG emissions from the use of sold products (Scope 3 category 11), which are significant in volume and of great interest to our clients, and is making efforts to reduce both.
Please refer to the following page for details about targets and performance.
Climate change initiatives