TCFD

• Strategies and initiatives for phased transition to electrification based on market-specific trends and other specific conditions
• Collaboration with partners to promote the electrification of vehicles through means such as the procurement of automotive batteries and the introduction of battery electric vehicles
• Investment in production of in-house battery electric vehicles

Mazda seeks to enhance the effectiveness of its efforts to address climate change and other environmental, social, and governance (ESG) issues. To this end, the Company has included ESG among the items of its director skills matrix to guide it in appointing directors who possess the experience and expertise necessary to appropriately supervise the promotion of sustainability initiatives.

Skills Matrix of the Board of Directors (Corporate Governance)

In June 2024, the Company established four climate change-related performance indicators, including the reduction of greenhouse gas emissions, for use in determining performance share unit remuneration. The number of shares to be issued is determined based on whether the target for each performance indicator has been achieved.

The Company's annual securities report "(4) Remuneration for Directors" under "4. Corporate Governance"

Mazda has identified major risks and opportunities based on scenarios released by the IPCC and the IEA, government policies, regulatory and industry trends, and is advancing initiatives to capitalize on the identified opportunities and avoid the indicated risks. Strategies derived from these processes are discussed at Executive Committee Meetings and meetings of the Board of Directors, both of which are attended by the president. Mazda also regularly shares climate-related information with suppliers through a shared platform.

• Mazda has established a system for rapid response to torrential rain and other natural disasters. These risks are managed through an emergency risk management system as part of our BCP. In addition to these efforts, the Company has been taking steps to enhance its ability to collect weather forecast information and facilitate making quick disaster prevention decisions based on a predetermined time schedule. These steps are being taken in response to the recent rise in the frequency and severity of torrential rain disasters. Moreover, the Company's response measures are reviewed every heavy rain season to improve response capabilities.
• In response to concerns about storm surges and water resources depletion, Mazda is promoting the reinforcement of seawall infrastructure and water conservation efforts by dedicated departments.
• To combat the heat waves that have become more frequent in recent years, we regularly measure and evaluate the heat environment of each workplace as part of employee health management, and the information gained is used to guide the appropriate maintenance and management of air conditioning equipment. In addition, we use heat-insulating materials and heat-insulating paints in our buildings as part of our eco-friendly measures.
• Measures against the spread of epidemics include the implementation of workplace guidelines providing support when an employee or a member of their family residing with them has become infected.

Achieving carbon neutrality throughout Mazda's entire supply chain by 2050 will require the Company to track Scope 1, Scope 2, and Scope 3 greenhouse gas emissions. To facilitate these efforts, Mazda has defined metrics and targets, and is managing progress toward these goals through a plan-do-check-act (PDCA) cycle. Furthermore, we officially participated in the GX League* sponsored by the Ministry of Economy, Trade and Industry, in May 2023. As part of this participation, Mazda will present its emission reduction targets for domestic factories and operating sites and disclose progress toward these targets through the GX dashboard.

Scope: Sites including Mazda's Head Office and Hiroshima Plant (Aki-gun and Hiroshima City in Hiroshima Prefecture), Hofu Plant (Hofu City, Yamaguchi Prefecture), and Miyoshi Plant (Miyoshi City, Hiroshima Prefecture)

* Scope for FY March 2025
Scope 1 and Scope 2: Mazda Motor Corporation, 20 domestic consolidated subsidiaries, 10 domestic equity-method affiliates, 24 overseas consolidated subsidiaries, and four overseas equity-method affiliates
Scope 3:
・Categories 1, 2, 6, and 7: Mazda Motor Corporation
・Category 3: Four Mazda Motor Corporation domestic production sites and six overseas production companies (two consolidated subsidiaries and four equity-method affiliates)
・Categories 4 and 9: Mazda Motor Corporation, 20 domestic consolidated subsidiaries, and 10 domestic equity-method affiliates
・Category 5: Four Mazda Motor Corporation domestic production sites
・Categories 8, 10, 13, 14, and 15: Mazda Motor Corporation, 20 domestic consolidated subsidiaries, 10 domestic equity-method affiliates, 24 overseas consolidated subsidiaries, and four overseas equity-method affiliates
・Categories 11 and 12: All vehicles sold by Mazda (including those produced by OEMs)

Note: For Category 11, the following revisions were implemented to the calculation method in FY March 2023 in order to improve comprehensiveness and accuracy.
- Prior to 2022: Calculated based on vehicle sales volumes in Japan and major sales regions (North America, Europe, and China) using the Tank-to-Wheel (fuel consumption during driving) method
- From 2023 forward: Calculated based on global production volume using the Well-to-Wheel (fuel extraction, refining, and electricity generation and fuel consumption during driving) method Emissions for FY March 2024 calculated using the previous calculation method amount to 29,763 (1,000t-CO₂e). The increase in emissions is primarily due to an increase in sales volume (approximately 12% year on year).

* Sales volume includes OEM units. Hybrid electric vehicles includes mild hybrids.

* Scope: Four Mazda Motor Corporation domestic production sites (headquarters factory; Hofu Plant, Nishinoura District, Hofu Plant, Nakanoseki District; and Miyoshi Plant) and six overseas production companies (two consolidated subsidiaries and four equity-method affiliates)

* Scope: Sites including Mazda's Head Office and Hiroshima Plant (Aki-gun and Hiroshima City in Hiroshima Prefecture), Hofu Plant (Hofu City, Yamaguchi Prefecture), and Miyoshi Plant (Miyoshi City, Hiroshima Prefecture)

Water is essential in automobile manufacturing processes such as cooling (e.g., cooling furnaces in casting), dilution (dilution of the mother liquor used for cutting and cleaning in the machining process), and cleaning (e.g., cleaning of vehicle bodies in the painting process). In preparation for potential risks and concerns for the future related to matters such as water resources depletion and rising water prices, we are testing water resource reuse and recycling initiatives to be deployed on a wider scale in 2030 at a domestic model plant. By 2050, we aim to implement these initiatives throughout our global production processes.

Scope for FY March 2024: Mazda Motor Corporation, 20 domestic consolidated subsidiaries, and 10 domestic equity-method affiliates