Environment

Basic stance

Within our materiality framework, Aisin positions “Harmony with nature and contribution to a sustainable future” as one of its priority issues and has set “Reducing environmental impact across the value chain” as the direction for achieving it. With a proper understanding of how our business activities depend on and impact natural capital, we analyze associated risks and opportunities and reflect our findings in our actions.

AISIN Group Biodiversity Conservation Activity Guidelines

In accordance with the Aisin Group Biodiversity Conservation Activity Guidelines, revised in FY2026, we are working as a unified Group toward harmonizing biodiversity conservation with our business operations along three axes: “optimizing dependency,” “minimizing impact,” and “maximizing collaboration.”

Direction of biodiversity conservation activities centered on the circulation and conservation of water resources

LEAP approach focused on operating locations

LEAP approach Review Flow

Locate: Identifying interfaces with nature

Businesses interface with nature where they operate, and site assessment is therefore crucial to identifying, evaluating, avoiding, mitigating, and managing environmental risks. The “Locate” phase of this process covers the evaluation of an organization's worksites for ecosystem integrity, biodiversity impact, water stress, and other factors identified as priority areas.

Priority area selection policy

STEP1 Import location data for target sites

STEP2 Evaluate each indicator

STEP3 Select priority areas

Evaluation items	Evaluation tools	Evaluation indicators
(1) Biodiversity impact	IBAT*1	Proximity of 5km or less to areas designated for high biodiversity importance in accordance with such protocols as KBA, Natura 2000, World Heritage, Ramsar, UNESCO MAB, IUCN Management Levels I-IV
(2) Ecosystem integrity	WWF Biodiversity Risk Filter*2	Ecosystem Condition
(3) Water stress	Aqueduct*3	Baseline water stress

IBAT：Integrated Biodiversity Assessment Tool – A biodiversity risk assessment tool developed by United Nations Environment Programme

WWF Biodiversity Risk Filter – A tool developed by WWF used to identify biodiversity risks and opportunities along the value chain

Aqueduct – A global water-risk assessment tool developed by the World Resources Institute; it evaluates the water risk of a site location with an eye to water quantity, water quality, regulation, and reputation

Results of priority region selection

Evaluate: Assessing dependencies and impacts

Dependencies and impacts at business locations are critical prerequisites for understanding risks and opportunities. In the “Evaluate” phase, we identify and analyze dependencies and impacts at the interface of business and nature within priority regions identified in the Locate phase. Using ENCORE^*, we assessed two operational facets: ecosystem services the organization depends on to function, and the impact factors where operations alter the natural environment. Dependencies encompass three categories: provisioning services, regulating and maintenance services, and cultural services. There are five categories of impact driver: categories: land/freshwater/seabed area modification, resource use/replenishment,” climate change, pollution/pollution removal, and invasive alien species invasion/removal. These impact factors are similarly defined in the Science-Based Targets for Nature Technical Guidance for Step 1 and Step 2.

ENCORE: Exploring Natural Capital Opportunities, Risks and Exposure – A tool developed by the Natural Capital Finance Alliance and others to assess potential dependencies and impact relationships on biodiversity and ecosystem services

Sector-Level Dependencies and Impact Relationships

Prepare: Preparing responses and reporting

For those risks and opportunities assessed as highly material, we will define metrics (KPIs) and initiatives under our Aisin Environmental Action Plan 2031 and advance our response.

Metrics and initiatives toward FY2031

Aisin has formulated the “AISIN Environmental Action Plan 2031,” which sets “promoting biodiversity conservation centered on the circulation and conservation of water resources” as its metric in the field of harmony with nature toward FY2031. To achieve this metric, we are engaged in activities that emphasize the connection between water resources and ecosystems, such as developing on-site biotopes using factory wastewater, creating rice paddies in wetlands, and protecting rare species in regions from which we source water. In addition, through environmental education using biotopes and wildlife observation events at rivers, we are deepening understanding of biodiversity among our employees, their families, and local communities and are working to further expand these activities. Furthermore, some of our initiatives in Japan have been recognized for their consistency and contribution to local communities, and some areas where they were implemented have been certified as Nationally Certified Sustainably Managed Natural Sites.