By continuing to truly focus upon babies, we want to make the world more baby-friendly.
At the same time, we aim to achieve sustainable growth as a company by reducing environmental impact and solving social issues surrounding babies and families in all countries and regions where we conduct business activities. We particularly recognize the urgency of climate change, identifying it as one of our most important management challenges and outlining measures to tackle it.

Greenhouse Gas (GHG) Emissions Reduction Targets and Performance

In April 2025, the Pigeon Group‘s 2030 greenhouse gas (GHG) emission reduction targets validated for its near-term science-based targets (SBT) from the SBTi.

Pigeon Group aims to reduce Scope 1&2 GHG emissions by 70% (compared to FY2018) and Scope 3 Category 1&12 GHG emissions by 25% (compared to FY2021) by 2030, and to promote GHG emissions reduction throughout the supply chain.

Pigeon Group's Scope 1 and 2 Greenhouse Gas (GHG) Emissions

In FY2025, the Pigeon Group’s GHG emissions totaled 8,568t-CO2e, comprising 3,498t-CO2e for Scope 1 and 5,070t-CO2e for Scope 2. Due to proactive reduction efforts—including the transition to renewable electricity, the installation of solar panels for on-site generation, the purchase of renewable energy certificates, and ongoing energy-saving initiatives—our combined Scope 1 and 2 emissions decreased by 19,636t-CO2e (69.6%) compared to the base year (FY2018: 28,203t-CO2e).

Unit: tonnes of CO2e

Business segment	FY2018 (base year)	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
	GHG Emission	GHG Emission	GHG Emission	GHG Emission	GHG Emission	GHG Emission	GHG Emission	GHG Emission	Base year difference (vs. FY2018)
Group total	28,203	26,931	24,973	23,510	11,741	11,392	9,958	8,568	-19,636
Japan Business	6,232	5,496	5,265	3,947	3,490	3,416	2,875	1,859	-4,373
China Business	9,884	8,886	8,923	8,737	4,346	4,582	3,838	3,803	-6,081
Singapore Business	11,305	11,306	10,442	10,610	3,786	3,277	3,133	2,777	-8,528
Lansinoh Business	782	1,243	343	216	118	117	112	128	-654

■Boundary of calculations

Pigeon Corporation and all its consolidated subsidiaries in Japan and overseas, including Lanshinoh Business (Coverage: 100%)
In defining the organizational boundary, we have adopted the Financial Control approach. This includes all consolidated subsidiaries within our financial reporting scope.

■Calculation method

Scope 1 emissions: For the period January 2019 to December 2022, only CO2 emissions from energy sources are included in the scope of calculation; from the period December 2023, non-energy greenhouse gases including methane and nitrous oxide are also included in the scope of calculation.

Scope 2 emissions: Emissions are calculated on a market basis. Where supplier-specific CO2 emission coefficients are available, we use those coefficients. If not available, we use the average CO2 emission factor of the local country or grid. CO2 emission coefficients are set to zero for electricity consumption corresponding to the amount of renewable energy certificates (electricity) purchased.

Independent Verification on Pigeon Group’s Scope1 and 2 Greenhouse Gas Emissions

To enhance the reliability of greenhouse gas emissions data, Pigeon Corporation underwent independent verification by the Japan Quality Assurance Organization (JQA) for the Scope 1 and Scope 2 greenhouse gas emissions of Pigeon Corporation and its domestic and overseas group companies (totaling 42 sites) for the fiscal year ending December 31, 2025.This verification covers 100% of the Pigeon Group’s Scope 1 and Scope 2 greenhouse gas emissions, totaling 8,568ton-CO2e (Scope 2 emissions calculated based on the market-based method).

Pigeon Group's Scope 3 GHG emissions

Pigeon Group recognizes the need to identify not only Scope 1 and Scope 2 greenhouse gas emissions from our production and non-production sites, but also greenhouse gas emissions throughout the entire value chain, including raw and packaging materials, transportation, use of sold products, and end-of life treatment of sold products (scope 3 emissions) and the need to work with our business partners to reduce scope 3 emissions.

The Scope 3 GHG emissions of the entire Pigeon Group (Japan Business, China Business, Singapore Business and Lansinoh Business) in 2025 were 228 thousand tonnes of CO2e. The largest proportion of Scope3 emissions was Category 1 emissions from purchased goods and services, accounting for 73% of total Scope 3 emissions.

To reduce GHG emissions from purchased products and services (Category 1), we consider it essential to work with our suppliers, and since 2023 we have used the the CSR Procurement Self-Assessment Questionnaire to collect the Scope 1 and Scope 2 GHG emissions data of our suppliers.

Pigeon Group's Scope 3 GHG emissions

Categories		FY2021	FY2023	FY2024	FY2025
		GHG emissions (Tonnes of CO2e)	GHG emissions (Tonnes of CO2e)	GHG emissions (Tonnes of CO2e)	GHG emissions (Tonnes of CO2e)	Ratio （%）
Category 1	Purchased goods and services	196,107	157,673	150,123	165,312	73%
Category 2	Capital goods	20,189	19,550	10,335	9,397	4%
Category 3	Fuel- and energyrelated activities not included in Scope 1 or Scope 2	4,349	3,542	3,745	3,151	1%
Category 4	Upstream transportation and distribution	14,810	11,101	14,796	14,322	6%
Category 5	Waste generated in operations	3,986	2,932	2,345	2,192	1%
Category 6	Business travel	340	1,439	1,451	1,467	1%
Category 7	Employee commuting	2,307	2,768	2,454	2,134	1%
Category 9	Downstream transportation and distribution	3,911	4,211	4,799	5,693	3%
Category 11	Use of sold products	3,244	4,832	6,066	9,872	4%
Category 12	End-of-life treatment of sold products	16,229	12,671	13,796	14,125	6%
Category 14	Franchises	17	12	3	0.0	0%
Total		265,489	220,731	209,913	227,665	ｰ

*To achieve SBT (Science-Based Target) certification in 2024, we have partially revised our calculation methodology and recalculated our Scope 3 GHG emissions for the base year 2021 and 2023.

■ Boundary of calculations
Pigeon Corporation and all the consolidated subsidiaries in Japan and overseas, including Lanshinoh Business. (Coverage: 100%)
Duplicate GHG emissions occurred from intra-group trading between Japan, China, Singapore and Lansinoh Businesses have been deleated.
For the GHG emissions calculation methods of each category, please refer to the Pigeon ESG Databook.

Lansinoh Group's Greenhouse Gas Emissions Reduction Targets

We recognize the importance of addressing climate change throughout our value chain. In FY2020, our Lansinoh Group set a long-term goal of achieving climate neutrality by 2030 and committed to net zero emissions by 2050 for the entire value chain. These plans align with the Paris Agreement, which strives to limit global warming to 1.5℃ above pre-industrial levels. The short-term reduction target for 2030 was verified and approved by the Science Based Targets initiative (SBTi) in FY2020, and the long-term reduction target for 2050 was verified and approved by SBTi in FY2025.

^{The net-zero commitment covers scopes 1, 2, and 3 of the entire Lansinoh business, which accounts for 20.6% of consolidated net sales. (2024 actual)}

^{Categories covered by Scope 3 reduction targets and Net Zero commitment:  
Category 1: Purchased goods and services, Category 2: Capital goods, Category 4: Upstream transportation and distribution, Category 5: Waste generated in operations, Category 6: Business travel, 
Category 7: Employee commuting, Category 9: Downstream transportation and distribution, Category 11: Use of sold products, Category 12: End-of-life treatment of sold products}

Lansinoh Group's Greenhouse Gas Emissions

[Boundary of calculations]
All sites of Lansinoh Laboratories Inc

Independent Verification on Lansinoh Group's Greenhouse Gas Emissions

To enhance the reliability of greenhouse gas emissions data, we underwent third-party verification for the Lansinoh Group's Scope 1, 2, and 3 greenhouse gas emissions for the fiscal year ending December 2025.

CO2 Reduction and Energy Conservation Initiatives

Pigeon Group's Energy Consumption

Recognizing the need to address climate change and conserve depletable energy sources, we are working to save energy and switch to renewable energy at our facilities. Our total energy consumption in 2025 was 47,415MWh. The largest proportion of this was made up of electricity, which accounted for 79%.

Unit: MWｈ

Energy carriers	FY2022	FY2023	FY2024	FY2025
Fuel	10,423	10,070	11,404	10,096
Biofuels	131	14	0	9
Purchased electricty	33,114	30,376	32,583	32,925
Purchased heat	26	20	15	16
Electricity generated by own solar panels installed at our manufacturing sites	3,368	3,990	4,546	4,369
Total	47,062	44,470	48,548	47,415

[Boundary of calculations]
Pigeon Corporation and all of the consolidated subsidiaries in Japan and overseas. (Coverage is 100%)

[Calculation method]
Fuel consumption is calculated based on higher heating values specified in the Energy Saving Act in Japan.

Use of Renewable Energy

The Pigeon Group advances the use of renewable energy as a means of reducing emissions of greenhouse gases. In 2025 electricity generated from renewable sources comprised 38 % of total electricity consumed by the Group, contributing to a 6,730 tonnes reduction in CO2 emissions.

Solar panels have been installed at each manufacturing site to generate their own electricity while we have purchased electricity generated by renewable sources or Renewable Energy Certificates.
We began introducing photovoltaic (PV) power systems in 2019 and have now installed it at 10 domestic and overseas manufacturing and non-manufacturing sites. In order to further increase our self-power generation rate, we have installed additional photovoltaic (PV) power systems at two manufacturing sites in Thailand and one manufacturing site in Indonesia in 2024. We will continue to expand its usage of renewable energy and further advance our efforts for reduction of greenhouse gas emissions.

Pigeon Group's consumption of electricity from renewable sources and CO2 emissions avoided

	FY2022			FY2023			FY2024			FY2025
	Consumption (MWh)	Percentage of total electricity consumption（％）	CO2 emissions avoided*⁴ (tonnes of CO2)	Consumption (MWh)	Percentage of total electricity consumption（％）	CO2 emissions avoided*⁴ (tonnes of CO2)	Consumption (MWh)	Percentage of total electricity consumption（％）	CO2 emissions avoided*⁴ (tonnes of CO2)	Consumption (MWh)	Percentage of total electricity consumption（％）	CO2 emissions avoided*⁴ (tonnes of CO2)
Total electricity consumption (renewable & non-renewable sources)*¹	36,482	-	-	34,366	-	-	37,130	-	-	37,294	-	-
Electricity generated from renewable energy sources	6,021	17%	3,085	6,860	20%	3,404	8,922	24%	4,328	14,286	38%	6,730
Of which, electricity generatd by our own PV systems*²	3,368	9%	2,005	3,990	12%	2,250	4,546	12%	2,463	4,369	12%	2,426
Of which, purchased electricty	2,653	7%	1,079	2,870	8%	1,154	4,376	12%	1,865	9,916	27%	4,304
Renewable Energy Certificates (RECs) purchased*³	13,844	38%	7,174	12,882	37%	6,534	16,163	44%	8,533	14,405	39%	7,151

Boundary: Pigeon Corporation and all its consolidated subsidiaries in Japan and overseas.（Coverage: 100%）
*¹ Electricity generated by own solar panels is included in.
*² Electricity generated by solar panels installed at our production sites and non-production sites are covered.
*³ Purchases of Renewable Energy Certificates (RECs) and J-credits generated from solar power generation are covered.
*⁴CO2 emissions avoided are calculated by multiplying a CO2 emission factor of electricity in each fiscal year, either a factor specific to the electricity supplier or an
average factor for the country in which the site locates, by in-house power generation and the quantity purchased respectively.　

Our efforts to reduce CO2 Emissions in Logistics

To reduce CO2 emissions through logistics, we are shortening transportation distances, reducing transportation frequency, and switching to transportation methods that emit less CO2.

1.Reduction of transportation distance

We are working to shorten transportation distances by reviewing unloading locations and shipping bases.

• Shortened transportation distances by eliminating our own logistics bases and outsourcing to outside logistics providers located near ports (PIGEON MALAYSIA (TRADING) SDN.BHD.).
• Shortened the transportation distance of industrial waste by changing the industrial waste processor (PIGEON INDUSTRIES (THAILAND) CO.)
• Changed the port of shipment for imported raw materials to shorten the transportation distance (LANSINOH LABORATORIES MEDICAL DEVICES DESIGN INDUSTRY AND COMMERCE LTD.)

 2.Reduction of transportation frequency

We are working to reduce the frequency of transportation by improving loading efficiency, reducing the percentage of empty vehicles, and improving procurement efficiency in cooperation with suppliers.

• Efforts are underway to change the number of items placed in the outer box, the method of packing in the box, and the size of the outer box (Pigeon Corporation).
• Reviewing packaging specifications to eliminate the need for inner layer material (Lansinoh Group)
• Collaborated with suppliers of secondary materials to improve the accuracy of demand forecasting and inventory control, and to reduce the frequency of transportation. (LANSINOH LABORATORIES MEDICAL DEVICES DESIGN INDUSTRY AND COMMERCE LTD.CO., PIGEON SINGAPORE PTE.LTD. and PIGEON MALAYSIA (TRADING) SDN.BHD.)
• Switched from wooden pallets to paper slip sheets, forest certified, and improved loading rates and significantly reduced transportation weight (LANSINOH LABORATORIES MEDICAL DEVICES DESIGN INDUSTRY AND COMMERCE LTD.CO., LANSINOH LABORATORIES, INC.)

3.Switching to transportation methods that emit less CO2

We are also switching to trucks that use cleaner fuels for transportation.

• Use of natural gas and biodiesel vehicles (THAI PIGEON CO., LTD.)
• Use of rail for some transportation between logistics centers as a modal shift measure* (Pigeon Corporation)

*Implementing from August 2024. Estimated reduction in CO2 emissions of 51.9t-CO2 (68.4%) and driver driving time of 1,613 hours (81.3% reduction) over the seven months until February 2025.

4.Initiatives at logistics centers

In parallel with improving transportation efficiency, logistics centers are also working to reduce CO2 emissions. (Pigeon Corporation)

• Adoption of LED lighting in offices and warehouses at major logistics centers
• Electrification of forklifts at major logistics centers
• Partial use of solar power (33%) (Tsukuba Logistics Center)

Other Initiatives

・Eliminating electricity generation from fuel oil
In order to reduce GHG emissions, in fiscal 2020 we stopped using electric generators that use fuel oil. (Pigeon Manufacturing Hyogo)

・Energy efficiency through LED lighting
We are making progress on the changeover to LED lighting, and using less electricity in our offices and other sites. (Central Laboratory, Tsukuba office, Pigeon Manufacturing Ibaraki)

Further Initiatives

Although we have not introduced ICP (Internal Carbon Pricing), we have set long-term GHG reduction targets in consideration of the future rise of carbon taxes and Japan's reduction target of carbon neutrality by 2050. During the discussion process, we refer to the IEA's forecast of carbon tax increase in order to promote shifts to renewable energy, application of renewable energy certificates, and capital investment for the purpose of energy conservation and on-sites renewable energy generation.

Response to CDP Corporate Questionnaire

Pigeon responded to CDP Corporate Questionnaire (Climate Change and Water Security) conducted by CDP^*, a non-profit organization. Please refer to the PDF file below for 2025 answer(Japanese language only).

*CDP is a non-profit organization whose purpose is to promote environmental measures by supporting companies and local governments to disclose information regarding measures to address environmental impacts such as climate change, water resource protection, and forest conservation, based on requests from institutional investors and others who are highly concerned about environmental issues.