Climate Change Initiatives (Information Disclosure based on TCFD and ISSB Frameworks)

Policy Addressing climate change (information disclosure based on TCFD recommendations)Case Studies

Policy

We believe that a healthy global environment is essential for the lives of plants and animals, including humans, as well as for sustaining HIS Group's business.
Accordingly, we work to conserve resources and reduce the environmental footprint of our business activities.
Moreover, we consider it our mission to provide opportunities for people to experience and learn about our planet's rich environment and biodiversity as something we can do for a sustainable world as a company with a heritage in the tourism industry.

Climate Change Countermeasures (Information Disclosure Based on TCFD and ISSB)

The HIS Group participates in the "GX Future Consortium (GXFC)," the successor organization to the TCFD Consortium. Currently, based on the TCFD recommendations and the IFRS Sustainability Disclosure Standards (ISSB), we grasp the risks and opportunities that climate change poses to our business activities and disclose information along the four pillars of: (1) Governance, (2) Strategy, (3) Risk Management, and (4) Metrics and Targets.
We will continue to further enrich our information disclosures directed at achieving a sustainable society in alignment with the evolution of international disclosure standards.

1.Governance

In accordance with the "HIS Group Philosophy"--which outlines the value we wish to continue providing to society, our code of conduct, and our founding spirit--the HIS Group works to develop and operate internal control mechanisms while strengthening its sustainability promotion structure.
At the Sustainability Committee, composed of Directors and Executive Officers, key policies, indicators, targets, and measures are discussed in line with the Basic Sustainability Policy, and progress monitoring is conducted in principle on a quarterly basis (held four times in FY2025). Furthermore, in risk management and policy implementation, we enhance effectiveness by working in cooperation with the Risk / Compliance Committee, business execution divisions, and domestic and overseas subsidiaries. Important matters are submitted or reported by the committee to the Board of Directors, from which necessary instructions and advice are received as appropriate. Furthermore, as subordinate organizations of the Sustainability Committee, we have established the Sustainability Promotion Project, DEIB Promotion Project, and Human Rights DD (Due Diligence) Promotion Project consisting of business execution division members. In the Americas and Asia-Oceania regions, Sustainability Committees have also been established to conduct regular activities, thereby enhancing promotional momentum across all locations. In addition, in September 2025, we hosted Sustainability Week to provide an opportunity to foster awareness among employees. We will continue to promote mindset reform and implementation into our businesses, aiming to resolve social challenges and enhance corporate value.

Corporate Governance Structure Chart

2.Strategy

The HIS Group conducts climate change scenario analyses in line with the framework of the TCFD recommendations, summarizing the climate change risks, opportunities, the magnitude of their impacts, and their corresponding countermeasures related to our businesses. Based on these insights, for items with high risk materiality that span the long term, we view the transition to a decarbonized society as an opportunity and are strengthening the promotion of sustainable tourism, the development of environmentally friendly products, and our transition initiatives.

Physical Risk

Impact	Item of risk/opportunity	Measures	Period
High	Increase in the frequency and severity of damage from typhoons, torrential rains, heatwaves, etc.	Customer response based on the crisis management manual Enrichment of pre-travel support services (Cancellation Support) Providing safety and peace of mind utilizing our global network (DX Promotion) Thorough implementation of disaster prevention manuals and drills at owned facilities and vehicles Development of stockpiles and evacuation systems	Short to Long term
Medium	Suspension or delay of service delivery due to damage to data centers (DCs) caused by natural disasters.	Review of DC (Data Center) configurations Cloud migration of servers Redundancy of critical data	Short to Medium term

Transition risk

Impact	Item of risk/opportunity	Measures	Period
High	Changes in customer behavior and preferences due to rising interest in climate change.	Reducing plastic products and promoting paperless offices Providing environmental protection experience programs Promoting EVs, FCVs, etc., for owned buses and vehicles Providing carbon-neutral products Providing new experience values Introduction of environmentally friendly transportation methods Active information disclosure	Short to Long term
Medium	Cooling of consumer sentiment due to service price increases accompanying soaring fuel costs.	Promotion of micro-tourism Stimulating travel demand Providing new experience values	Short to Long term
Medium	Decline in services caused by environmental changes such as rising temperatures and sea levels, and the resulting enactment of new regulations, laws, and ordinances.	New product development and destination development Product development aimed at natural environmental protection (collaboration with tourism bureaus and municipalities) Expansion of businesses other than the travel industry	Medium to Long term
Medium	Decline in corporate value and a reduction in investment or business partners if climate change initiatives are evaluated as insufficient.	Active information disclosure Investment in renewable energy	Short to Long term
Low	Restrictions on vehicle operations due to stricter regulations on GHG (Greenhouse Gas) emissions, and an increase in business operating costs due to rising tax rates.	Promoting EVs, FCVs, etc., for owned buses and vehicles Investment in and introduction of environmentally friendly transportation methods Grasping suppliers' GHG emissions and examining sustainable procurement	Medium to Long term
Low	Increase in business operating costs due to the introduction of carbon pricing.	Energy conservation and introduction of renewable energy Promoting EVs, FCVs, etc., for owned buses and vehicles Reducing plastic products and promoting paperless offices	Long term

Short-term (up to FY2024), Medium-term (FY2025-FY2026), Long-term (FY2027-FY2030)
*As there are no significant changes in the prerequisites, the analysis results from fiscal year 2023 continue to be applied.

3.Risk management

The HIS Group has established the Risk / Compliance Committee with the aim of ensuring operational propriety through thorough risk management and compliance. This committee meets in principle on a quarterly basis (held 8 times in FY2025) to collect, share, and discuss information regarding business risks across the entire HIS Group based on reports from each group company.
The Risk Management Office, which serves as the secretariat for the committee, collaborates with the Sustainability Committee to identify, analyze, and evaluate risks within the HIS Group--including climate change-related risks--and has determined the priority risks. Under the leadership of the Risk Management Office, we promote the development of management systems for risk response and carry out activities to prevent the materialization of risks before they occur.
Furthermore, we encourage thorough compliance in cooperation with each department under the Governance Headquarter and the Risk and Compliance Officers selected at each group company, while working to improve risk management effectiveness across the entire Group. Matters that need to be reflected in group-wide policies or strategies are submitted to the Board of Directors as appropriate.

4.Indicators and Targets

HIS Group has designated "Preservation of the Global Environment" as one of its materiality (Important issue) and views responding to climate change as a critical management priority. In May 2025, we formulated medium- to long-term CO2 reduction targets (for H.I.S. Co., Ltd.) directed at achieving a decarbonized society.

Short-term Target (up to FY2026)	Reduce CO2 emissions (Scope 1 + 2) generated by the company by 30% compared to FY2024.
Medium-term Target (up to FY2030)	Achieve net-zero CO2 emissions (Scope 1 + 2) generated by the company.
Long-term Target (up to FY2050)	Achieve net-zero CO2 emissions (Scope 1, 2, and 3) across the company's entire value chain.

Breakdown of CO2 emissions (unit: t-CO2)

In FY2025, we expanded the disclosure of calculation targets to domestic and overseas consolidated subsidiaries, calculating emissions based on the GHG Protocol. We will continue to support reduction initiatives at each company while working to grasp and reduce CO2 emissions across the entire HIS Group.

Calculation Method
In calculating Scope 2 CO2 emissions, we utilize the latest values of the "Emission Factors by Electric Power Supplier" published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry. If the factor for the relevant fiscal year has not been published at the end of the fiscal period, calculation is performed using the factor from the previous fiscal year, and retroactive revisions are made using the finalized factor in the following fiscal year's report. Based on this, the FY2024 actual values in this report have been revised using the finalized factors.

■　H.I.S. Co., Ltd.

Breakdown of CO2 emissions (unit: t-CO2)

	Scope1+2 FY2025 Actual	Reduction Rate (vs. Base Year)	Scope3 FY2025 Actual
H.I.S. Co., Ltd.	1,422	16.8%	1,267,532

Reduction Efforts

In our company, within Scope 1 and 2, the ratio of Scope 2 is as high as 99.5%, which is derived from electricity utilization at our business offices. While striving for energy conservation to achieve the aforementioned targets, we converted 650,000 kWh of electricity to renewable energy sources by procuring non-fossil certificates with renewable energy designations, achieving a 16.8% reduction compared to the base year of FY2024.
In Scope 3, as a result of calculating all applicable categories in our business activities (Categories 1 to 7, 11, and 13), Scope 3 accounted for 99.9% of the total emissions across Scopes 1 to 3. Within Scope 3, 98.6% was derived from Category 11 (Use of sold products), and 73.2% of Category 11 was derived from jet fuel used in domestic and international aircraft operations.
Directed at reducing our Scope 3, Category 11 emissions, we are driving reduction initiatives through collaboration with business partners, investment in new decarbonization services, and the provision of information and decarbonization plans to our customers. In FY2025, by contributing a portion of sales to participate in a program that promotes SAF utilization, we planned and sold package tours aimed at reducing Scope 3 emissions together with our customers. Approximately 670 customers participated, leading to a CO2 reduction equivalent to 480 tons.
Furthermore, to reduce emissions associated with vehicle transportation, we are working with HIS overseas subsidiaries to advance the introduction of EV cars and EV buses.Additionally, directed at reducing Scope 3, Category 1 (Purchased goods and services), we are driving initiatives with the target of achieving a 70% reduction in plastic consumption (vs. FY2019) and a 70% reduction in copy paper consumption (vs. FY2019) by FY2026. In FY2025, we newly adopted plastic bags containing 25% biomass for a portion of our retail distribution. For copy paper, we are advancing paperless offices alongside utilizing forest-protecting FSC®-certified copy paper.
For details on our specific initiatives and progress, please see "Preservation of the Global Environment."

■　Domestic Hotel Business / Kyushu Sanko Group

Breakdown of CO2 emissions (unit: t-CO2)

	Scope1+2	Scope3
Domestic Hotel Business *1	8,438	100,832
Kyushu Sanko Group (12 Companies) *2	33,323	32,826

*1 Regarding Scope 1 + 2, values for H.I.S. Hotel Holdings Co., Ltd. and Vison Hotel Management Co., Ltd. are stated. Regarding Scope 3, values for H.I.S. Hotel Holdings Co., Ltd. are stated.
*2 The 12 companies of the Kyushu Sanko Group include: Kyushu Sangyo Kotsu Holdings Co., Ltd., Kyushu Sanko Bus Co., Ltd., Kyushu Sanko Tourism Co., Ltd., Kyushu Sanko Landmark Co., Ltd., Kyushu Sanko Retail Co., Ltd., Sanko Bus Co., Ltd., Kumamoto Ferry Co., Ltd., Kyushu Sanko Auto Service Co., Ltd., KASSE JAPAN Co., Ltd., Kyushu Sanko Planning Co., Ltd., Kyushu BM Service Co., Ltd., and Taniguchi Automotive LLC.
*3 Regarding Scope 1 + 2 of the Kyushu Sanko Group for FY2024, data from some locations were scrutinized to refine the figures.

Reduction Efforts

In the domestic hotel business, we advanced the introduction of the power loss reduction solution "POWER GUARD," reaching 8 facilities in FY2025. We plan to add 2 more facilities in FY2026. This has led to a reduction in electricity consumption of approximately 10% per hotel.Furthermore, within the Kyushu Sanko Group's bus business, we carry out engine cuts by introducing idling-stop-and-start systems and promote eco-driving utilizing digital tachographs. Additionally, at Kyushu Sanko Landmark Co., Ltd. and Kyushu BM Service Co., Ltd., efforts are being made to lower CO2 emissions at SAKURA MACHI Kumamoto by utilizing groundwater for cooling in the cooling tower equipment, thereby suppressing heat dissipation.

■　Other Consolidated Group Companies

Breakdown of CO2 emissions (unit: t-CO2)

	Scope1+2
Domestic Consolidated Subsidiaries (18 Companies) *4	10,325
Overseas Consolidated Subsidiaries (28 Companies) *5	1,466

*4 18 domestic subsidiaries excluding H.I.S. Hotel Holdings Co., Ltd. and the Kyushu Sanko Group. Regarding Scope 2, Cross E Holdings Co., Ltd. and Huis Ten Bosch Technical Center Co., Ltd. are excluded from aggregation as it is physically difficult to obtain data for each company due to tenant occupancy.
Subsidiaries occupying the offices of the submitting company, such as Qualita Co., Ltd., are counted within the Scope 2 emissions of the submitting company.
*5 HAWAII HIS CORPORATION, H.I.S. INTERNATIONAL TOURS (NY) INC., H.I.S. GUAM, INC., H.I.S. KOREA CO., LTD., H.I.S. Tours Co., Ltd., PT. HARUM INDAH SARI TOURS & TRAVEL, HIS (HONG KONG) COMPANY LIMITED, H.I.S. TAIWAN COMPANY LIMITED, H.I.S. INTERNATIONAL TRAVEL PTE LTD, H.I.S. AUSTRALIA PTY. LTD., and 18 other companies.