Otsuka Pharmaceutical Co., Ltd. is a committed participant in the Tokyo Metropolitan Government's Sustainable Aviation Fuel (SAF) Promotion Project. Through a strategic partnership with Yusen Logistics Co., Ltd., Otsuka will contribute to the project by consigning its U.S. pharmaceuticals shipments. This collaborative effort underscores Otsuka's dedication to environmental sustainability and its support of initiatives aimed at reducing carbon emissions in the aviation industry. By utilizing SAF for its pharmaceutical shipments, Otsuka actively contributes to a greener supply chain and demonstrates leadership in corporate social responsibility.

The Tokyo Metropolitan Government manages the project, and Otsuka is engaging in it to target reductions in CO2 emissions across our extended supply chain (Scope 3), complementing our existing efforts to cut direct (Scope 1) and indirect (Scope 2) emissions. This initiative marks the inaugural use of Sustainable Aviation Fuel (SAF) by an Otsuka group company for international product transportation, underscoring our commitment to a holistic approach to environmental impact reduction.

Sustainable Aviation Fuel (SAF) is an innovative fuel produced from biomass sources such as waste cooking oil, sugarcane, municipal waste, and plastic. SAF offers a significant environmental benefit, potentially reducing CO2 emissions by 60 to 80 percent compared to conventional jet fuel refined from crude oil. This project, spearheaded by the Tokyo Metropolitan Government, is designed to support Tokyo-based companies in lowering CO2 emissions across their entire supply chains. Yusen Logistics, selected as the cargo agent, will manage a segment of the air cargo transportation for our medical products from Japan to the U.S. Otsuka will participate in this initiative as the shipper, marking our commitment to comprehensive environmental impact reduction.

The project will be active from August 5, 2024, to March 31, 2025. During this period, Yusen Logistics will provide Otsuka with a Greenhouse Gas Emission Reductions Certificate through their "Yusen Book-and-Claim" service, which leverages SAF. The initiative is anticipated to achieve a CO2 reduction of up to 50 tons, representing approximately an 80 percent decrease compared to conventional transport methods.

Otsuka is committed to advancing environmental impact reduction by adopting innovative technologies and solutions. We will continue to collaborate with our business partners to drive progress towards a decarbonized and more sustainable society.

Otsuka Group is highly committed to environmental sustainability, with a specific focus on achieving carbon neutrality by 2050. This ambitious goal is a cornerstone of the company's broader sustainability strategy, which encompasses circular economy, water neutrality, and biodiversity conservation. To realize carbon neutrality, Otsuka is aggressively transitioning to renewable energy sources, including the integration of CO2-free electricity, leveraging green power certificates, and installing on-site solar power generation. Concurrently, the group is optimizing energy efficiency across its operations to minimize carbon footprint.