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. Pigeon’s Eighth Medium-Term Business Plan (2023 - 2025) as well as the Seventh Medium-Term Business Plan (2020 - 2021) identifies climate change as one of the most important management challenges and outlines 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.

In addition, in our Eighth Med-Term Business Plan (2023-2025), we have set our interim target of reducing Scope 1&2 GHG emissions by 63% compared to FY2018 by 2025. Each business segment has incorporated this interim target into its own med-term business plan and is working to reduce GHG emissions through the use of renewable energy, energy conservation, and the exploration of low-carbon materials.

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

Our GHG emissions across the entire group in FY2024 were 3,333 t-CO2e for Scope 1 and 6,625 t-CO2e for Scope 2 (total: 9,958 t-CO2e). As a result of GHG reduction activities such as the introduction of on-site power generation using solar panels, purchase of Renewable Energy Certificates and energy saving activities, our scope 1&2 emissions decreased by 18,245 t-CO2e (65%) compared to FY2018.

Unit: tonnes of CO2e

Business segment	FY2018 (base year)	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
	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	-18,245
Japan Business	6,232	5,496	5,265	3,947	3,490	3,416	2,875	-3,357
China Business	9,884	8,886	8,923	8,737	4,346	4,582	3,838	-6,046
Singapore Business	11,305	11,306	10,442	10,610	3,786	3,277	3,133	-8,172
Lansinoh Business	782	1,243	343	216	118	117	112	-670

■Boundary of calculations

Pigeon Corporation and all of the consolidated subsidiaries in Japan and overseas.(Coverage is 100%)
The financial control approach is used to consolidate CO2 emissions.

■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 CO2 emissions

To enhance the credibility of CO2 emissions data, we engaged third parties to provide verifications on Scope 1 and scope 2 CO2 emissions.

Subsidiaries that their emissions were independently verified in 2023

The following three domestic and five overseas subsidiaries have completed independent verification on their Scope 1 and Scope 2 emissions for FY2022.
The total Scope 1 and Scope 2 CO2 emissions of the following eight companies amounted to 5,500 tonnes-CO2* in FY2022, representing 47% of the Group's 11,741 tonnes-CO2 emissions.

The market-based method is used for Scope 2 accounting. The total Scope 1 and Scope 2 CO2 emissions of subsidiaries that underwent third-party verification were lower than that for FY2021 because of the following reasons.
Lansinoh Laboratories and Thai pigeon had zero Scope 2 emissions in FY2022 as a result of the purchase of electricity from renewable sources or the purchase of Renewable Energy Certificates.
Pigeon Industries (Changzhou) did not undergo third-party verification for FY2022 emissions.

Verified Organization	Verification agency	Issue Date of Verification Report
Pigeon Home Products Corporation Pigeon Manufacturing Hyogo Corporation Pigeon Manufacturing Ibaraki Corporation	Japan Quality Assurance Organization	April 26, 2023
Lansinoh Laboratories, Inc	GUTcert	July 17, 2023
Pigeon India Pvt. Ltd.	URS Verification Pvt. Ltd.	July 26, 2023
Thai Pigeon Co., Ltd.	LRQA Limited	August 8, 2023
Pigeon Manufacturing (Shanghai) Co., Ltd	SGS-CSTC Standards Technical Services Co., Ltd.	September 9, 2023
Pigeon Industries (Thailand) Company Limited	LRQA (Thailand) Ltd.	December 21,  2023

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.

In preparation for SBT certification, Pigeon Group has recalculated Scope 3 GHG emissions for the base year of 2021 and the most recent year, 2023. The Scope 3 GHG emissions of the entire Pigeon Group (Japan Business, China Business, Singapore Business and Lansinoh Business) in 2023 were 220.7 thousand tonnes of CO2e. The largest proportion of Scope3 emissions was Category 1 emissions from purchased goods and services, which amounted to 157.7 thousand tonnes of CO2e, accounting for 71% 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
		GHG emissions (Tonnes of CO2e)	GHG emissions (Tonnes of CO2e)	Ratio （%）
Category 1	Purchased goods and services	196,107	157,673	71%
Category 2	Capital goods	20,189	19,550	9%
Category 3	Fuel- and energyrelated activities not included in Scope 1 or Scope 2	4,349	3,542	2%
Category 4	Upstream transportation and distribution	14,810	11,101	5%
Category 5	Waste generated in operations	3,986	2,932	1％
Category 6	Business travel	340	1,439	1%
Category 7	Employee commuting	2,307	2,768	1%
Category 9	Downstream transportation and distribution	3,911	4,211	2%
Category 11	Use of sold products	3,244	4,832	2%
Category 12	End-of-life treatment of sold products	16,229	12,671	6%
Category 14	Franchises	17	12	0%
Total		265,489	220,731	-

■ 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 Long-term Targets for Reduction of Greenhouse Gas Emissions

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 corresponding near-term reduction targets by 2030 were validated and approved by the Science Based Target Initiative (SBTi ) in FY2020.

^{The net-zero commitment covers scopes 1, 2, and 3 of the entire Lansinoh business, which accounts for 14.3%* of consolidated net sales. (2021 actual)} 

^{Categories covered by Scope 3 reduction targets and Net Zero committment,  
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 12: End-of-life treatment of sold products}

Lansinoh Group's Greenhouse Gas Emissions (Scopes 1, 2 and 3)

[Boundary of calculations]
All sites of Lansinoh Laboratories Inc

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 2024 was 48,548MWh. The largest proportion of this was made up of electricity, which accounted for 77%.

Unit: MWｈ

Energy carriers	FY2021	FY2022	FY2023	FY2024
Fuel	12,612	10,423	10,070	11,404
Biofuels	96	131	14	0
Purchased electricty	36,962	33,114	30,376	32,583
Purchased heat	24	26	20	15
Electricity generated by own solar panels installed at our manufacturing sites	2,328	3,368	3,990	4,546
Total	52,022	47,062	44,470	48,548

[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 2024 electricity generated from renewable sources comprised 24 % of total electricity consumed by the Group, contributing to a 4,328 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

	FY2021			FY2022			FY2023			FY2024
	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	39,290	-	-	36,482	-	-	34,366	-	-	37,130	-	-
Electricity generated from renewable energy sources	3,649	9%	2,127	6,021	17%	3,085	6,860	20%	3,404	8,922	24%	4,328
Of which, electricity generatd by our own PV systems*²	2,328	6%	1,617	3,368	9%	2,005	3,990	12%	2,250	4,546	12%	2,463
Of which, purchased electricty	1,321	3%	510	2,653	7%	1,079	2,870	8%	1,154	4,376	12%	1,865
Renewable Energy Certificates (RECs) purchased*³	3,364	9%	1,462	13,844	38%	7,174	12,882	37%	6,534	16,163	44%	8,533

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)

Developing Carbon Neutral (Climate Neutral) Products

Our Lansinoh business is actively working toward greenhouse gas (GHG) emissions reduction goals based on scientific evidence. To begin with, Lansinoh has completely switched to renewable energy for the electric power used at all of its sites. It has also calculated the full carbon footprint of its main products, opened negotiations with suppliers about using renewable energy in order to reduce their emissions, and begun actively working toward GHG emissions reduction at the product level. In 2021, Lansinoh was the first company in the Pigeon Group to launch products certified climate-neutral by a third party (the DFCE Institute). The products are certified climate-neutral because Lansinoh has determined their GHG emissions over their entire life cycle (from raw material procurement to disposal after use) and is not only independently working to reduce these emissions but also striving to compensate for emissions that are difficult to eliminate by purchasing climate credits, which support activities by environmental groups certified to reduce and absorb greenhouse gases.

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 Climate Change Questionnaire

Pigeon responded to CDP Climate Change Questionnaire conducted by CDP, a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Please see below for our responses (Japanese language only).