Climate-related Financial Disclosures Based on the TCFD Recommendations

Disclosure Based on the TCFD’s Recommendations

Governance

Organizational structure related to climate change risks and opportunities

Suzuki has established the Committee for Carbon Neutrality and the Committee for Environmental Promotion, which are executive and business operations committees, and the Corporate Governance Committee under the Board of Directors for the purpose of the Group’s overall environmental management.
The Board of Directors supervises the Committee for Carbon Neutrality, the Committee for Environmental Promotion, and the Corporate Governance Committee, and receives reports from these three committees and is the ultimate decision-making body.
The Committee for Carbon Neutrality focuses on the theme of climate change (carbon neutrality) and holds intensive deliberations on decarbonization.
The Committee for Environmental Promotion holds deliberations on environmental issues other than carbon neutrality, such as the efficient use of resources and the conservation of biodiversity.
The Corporate Governance Committee considers matters related to comprehensive compliance and risk management, etc., and promotes measures and countermeasures for cross-organizational issues while coordinating with related divisions.
Clearly defining the themes of the three committees enhances their effectiveness and further accelerates decision-making toward decarbonization.

Disclosure and governance based on the TCFD's recommendations

(As of March 2026)

Strategy

Response to the TCFD Recommendations

In April 2020, Suzuki became a signatory to the Task Force on Climate-related Financial Disclosures (TCFD)^* in support of its intent. Along with promoting information disclosure in a manner easily comprehensible to stakeholders, we will work to improve the level of sophistication of our scenario analysis and enhance the content of information to be disclosed in order to further increase our resilience against climate change.

* TCFD: Task Force on Climate-related Financial Disclosures. Established by the Financial Stability Board (FSB) in 2015.

Climate-related risks and opportunities, scenario analysis

Suzuki has been identifying business risks and opportunities to promote business activities in a sustainable manner. Since the impact of climate change, in particular, is intrinsically uncertain, we believe that it is crucial to assess the degree of its impact on risks and opportunities from a broader future perspective and respond appropriately.
Based on this recognition, we have evaluated the impact of climate change on risks and opportunities by using two scenarios. One is the “4°C scenario” in which climate change causes marked physical effects, and the other is the “1.5°C/2°C scenario” in which mitigation measures are being implemented at an accelerated pace toward the realization of the Paris Agreement. Regarding the types of risks, we observe risks and their impact from two points of view, “transitional risks” from policies, regulations, etc., and “physical risks,” from natural disasters, etc. When creating the scenarios, we referred to external scenarios based on scientific knowledge from the IEA^*1 and IPCC^*2, among other sources.

*1 IEA: International Energy Agency.
*2 IPCC: Intergovernmental Panel on Climate Change.

Climate-related risks and opportunities for Suzuki

As more stringent laws and regulations, including exhaust gas, CO₂, and fuel efficiency regulations, are being adopted as mitigation measures against climate change, the resulting increase in development expenses needed to comply with these regulations may greatly impact Suzuki’s business performance. On the other hand, small cars, which are a strength of Suzuki's, require less materials and energy to produce and emit less CO₂ while in use. We believe that we can create opportunities by leveraging this unique strength of Suzuki's and by handling risks appropriately.
Moreover, beginning in FY2023, we started a financial impact analysis based on the scenario analysis related to climate change that we disclosed in the past. This initiative aims to assess the global impact of natural disaster risks such as typhoons, floods, and storm surges caused by rising temperatures, and to reduce or avoid these risks to ensure business continuity. We have already begun assessing this impact on our domestic and Indian sites, as well as on our primary domestic business partners.
We will continue to hold careful discussions to reduce or avoid risks caused by climate change, capture opportunities for the future, and increase our competitive edge, and we will incorporate the outcomes of these discussions into our business strategies.

List of our climate-related risks and differences in impact by scenario

Transition Risks -1. Major risks expected to increase under the 1.5°C and 2°C scenarios-

Category	Risk	Impact on our business
Policies, regulations, and technologies	(1) More stringent CO₂ and fuel efficiency standards for automobiles	Payment of fines, loss of sales opportunities, etc.
Policies, regulations, and technologies	(2) Implementation or reinforcement of carbon taxes, etc.	Increase in operating costs, etc.
Reputation	(3) Changes in consumer preferences and investor behavior	Decrease in corporate value, etc.

Physical Risks-Major risks expected to increase under the 4°C scenario-

Category	Risk	Impact on our business
Chronic	(4) Rise in the average temperature	Increase in energy costs, etc.
Chronic	(5) Changes in water resource risks	Disruptions in the supply chain and increase in production costs, etc.
Acute	(6) More frequent and intensifying natural disasters	Business sites sustaining disaster damage, suspension of business activities, etc.

* Underlined items are particularly important risks

Details of particularly significant risks, creation of opportunities, and status of Suzuki’s response

	Risk	Opportunities	Status of Suzuki’s response
(1)More stringent CO₂ and fuel efficiency standards for automobiles	Loss of market share due to being slow in adopting carbon-neutral technologies (electrification and other) and increasing costs Increase in investment in development of carbon-neutral technologies Increase in investment in production facilities for carbon-neutral technologies (batteries, etc.) Fines and lost sales opportunities resulting from non-compliance with regulations	Maintaining and reinforcing competitiveness and enhancing corporate value through small cars that emit less CO₂ throughout their life cycle Capturing sales opportunities by developing electrified vehicles and carbon-neutral fuel compatible vehicles at affordable prices Contributing to sustainable economic development by leading electrification and carbon-neutral fuel compatibility in India and emerging countries	Intensively developing electrification technologies, increasing the number of models equipped with a hybrid system, and promoting development of mini and compact EVs Promoting electrification in India (releasing electrified vehicles, investing in a battery plant, etc.) Started sales of the BEV “e VITARA” in India Deepening alliance with Toyota Motor Corporation Launched a biogas demonstration project in India and emerging countries Regarding establishment of a biogas production plant, there has been agreement between the National Dairy Development Board, Banas Dairy and Suzuki (SRDI) Plan to install a total of nine biogas production plants (of which two started operations in 2025) In Pakistan as well, construction of a biogas production plant has begun (April 2025)
(2)Implementation or reinforcement of carbon taxes, etc.	Increase in investment in production facilities that implement carbon-neutral technologies Increase in operating costs due to carbon tax, emissions trading, Carbon Border Adjustment Mechanism, etc.	Offering energy-saving technologies that leverage the benefits of “Sho-Sho-Kei-Tan-Bi” to Group companies and business partners Contributing to sustainable economic development by leading the use of renewable energy in India and emerging countries	Promoting ongoing CO₂ reduction measures Producing carbon-neutral energy Procuring renewable energy-derived electricity in India Introduced “Shizuoka Green Denki,” CO₂-free electricity derived from renewable energy, at the Head Office and plants in Shizuoka Prefecture (all Suzuki sites in Shizuoka Prefecture now use CO₂-free electricity, resulting in zero CO₂ emissions from purchased electricity)
(6)More frequent and severe natural disasters	Business activities halted at business sites due to disaster Parts procurement disrupted due to business partner’s disaster	Increased demand for electrified vehicles due to their use as a lifeline at a time of disaster	Start financial impact analysis based on the scenario analysis related to climate change First, conduct an impact assessment on Company sites in Japan and India, and for domestic primary suppliers (Assessed the impact on a global basis of natural disaster risks due to rising temperatures such as typhoons, floods and high tides to mitigate or avoid risks and continue business) Based on the results of the impact assessment, sites with high risk are quantitatively evaluated with respect to their fixed assets Review water damage measures based on the assumed flooding depth Review relocation plans and business continuity planning based on the assumed flooding depth, calculated based on the impact assessment, and start taking countermeasures, including installing water barriers Began planning and running disaster response headquarters training, and revising the code of conduct for business recovery measures

Risk management

Risk Management Framework

The Corporate Governance Committee deliberates on issues that arise or are recognized in each department, and identifies and ascertains potential risks, without limiting itself to just climate-related issues. The Committee for Carbon Neutrality and the Committee for Environmental Promotion conduct intensive reviews of environment-related risks depending on the theme, and instruct and manage departments.

Themes handled by respective meeting bodies

Corporate Governance Committee:
Ascertains risks arising or recognized in each department, deliberates, and issues instructions to the department to resolve the issue.
Committee for Carbon Neutrality:
Of environmental risks, deliberates the risks and opportunities related to climate change (carbon neutrality) and resolves and promotes them.
Environmental Committee:
Deliberates on environmental risks and opportunities apart from climate change, such as water resources and biodiversity, and resolves and promotes them.

Indicators and Targets

Basic policy

In recent years, the increasing severity and frequency of extreme weather events associated with global warming have been causing serious impacts around the world. In these circumstances, under the Paris Agreement, global efforts to limit the rise in temperature to 1.5°C and initiatives to achieve net zero greenhouse gas emissions are accelerating.
Based on the principles of “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” Suzuki has been efficiently providing products with a low environmental impact while working to improve energy efficiency and reduce carbon emissions in production processes. Furthermore, we have adopted “Minimization of Energy” as a technology strategy, and are working to reduce CO₂ emissions by minimizing the energy required throughout the entire product lifecycle.
Going forward, we will further advance our initiatives through lightweight technology, high-efficiency technology, electrification, adoption of carbon-neutral fuels, and expanded use of renewable energy, and we will contribute to achieving the 1.5°C goal through climate science-aligned targets.
Suzuki has set multiple climate-related targets and indicators, and promotes these and manages their progress.
In addition to CO₂ emissions, indicators have also been set for other environmental issues related to climate change.
We have set two major indicators based on our targets, and we aim to achieve each of them.

Long-term: Suzuki Environmental Vision 2050
Short and Medium-term: Suzuki Environmental Plan 2030, Mid-Term Management Plan

Please check here for details on indicators and targets.

Financial Strategies

R&D capital investment

Going forward, we will improve profitability and efficiency, secure maximum investment funds, and actively invest in growth. In addition, we will flexibly allocate management resources to the right people in the right places in response to external circumstances in order to maximize corporate value. Growth investments will primarily focus on increasing production capacity to meet growing demand in India and developing technologies to minimize energy consumption.
Specifically, we plan to make 2 trillion yen in capital investments and spend 2 trillion yen on R&D by FY2030, a total investment in growth of 4 trillion yen. A total of 1.2 trillion yen of the capital investments will be India-related, and 1.35 trillion of the R&D expenses will be aimed at energy minimization.

Investment of Resources from FY2025 to FY2030

Japan