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Publication of the ESPEC TNFD Report 2025 in Line with TNFD Recommendations

Sep 22, 2025

ESPEC CORP. (Head Office: Kita-ku, Osaka; Representative Director and President: Satoshi Arata) announced on September 22, 2025, that it had endorsed the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD)*1, an initiative that seeks to identify and disclose companies' dependencies and impacts on natural capital, as well as the associated risks and opportunities. As part of this step, ESPEC has registered as a TNFD Adopter*2 and released the ESPEC TNFD Report 2025.

ESPEC TNFD Report 2025

ESPEC is committed to "environmental management that contributes to the achievement of a sustainable society through business activities." Under the 8th Mid-Term Plan on the Environment (FY2022-FY2025), ESPEC is increasing its efforts toward combating global warming and conserving biodiversity as its key themes.
Going forward, ESPEC will continue to promote biodiversity conservation through its business activities while ensuring appropriate information disclosure to all stakeholders.

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■ Overview of the ESPEC TNFD Report 2025

The ESPEC TNFD Report 2025 has been prepared in line with the four themes recommended by TNFD: Governance, Strategy, Risk & Impact Management, and Metrics & Targets. For nature-related risks and opportunities that may affect business activities, ESPEC referred to TNFD's LEAP approach*3 and exploratory scenario analysis to identify dependencies and impacts / risks and opportunities.

<Dependencies and Impacts / Risk and opportunity Analysis>

Using ENCORE*4, a biodiversity-related risk management tool, ESPEC organized dependencies and impacts by business sector. As a result, businesses with strong links to nature--namely, the plant cultivation equipment business and environmental preservation business--were found to show "Very high/High" levels of dependency and impact and prioritized them for analysis. ESPEC then analyzed both physical and transition risks for these priority businesses. In contrast, ESPEC determined that Equipment and Service businesses showed low levels of dependency and impact and were therefore excluded from the analysis.

<Strategy (Scenario analysis)>

For the Plant Production Systems business and Environmental Conservation business, ESPEC analyzed financial impacts based on a combination of physical and transition risks. Two scenarios--Scenario 1: 1.5°C Climate Change & Accelerated Nature-Positive Policies, and Scenario 2: 4°C Climate Change & Delayed Nature-Positive Policies--were considered. Moving forward, ESPEC will continue to monitor developments in physical and transition risks, update its scenario analyses as appropriate, and reflect the findings in the company's business strategy.

(References)

Contact Details:

IR & Public Relations Group, Sustainability Management Department
Tel: +81-6-6358-4744, Fax:+81-6-6358-4795, E-MAIL:ir-div@espec.jp

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