Japan Airport Terminal : Notice of Information Disclosure based on the Recommendations of the TCFD

May 11, 2023

To all concerned Parties

Company name: Japan Airport Terminal Co., Ltd.

Representative: Nobuaki Yokota, President and COO (Code: 9706, Prime Market, Tokyo Stock Exchange)

Inquiries: Kazuhito Tanaka, Senior Managing Director General Manager of Planning and Management Department Tel: [phone]

Notice of Information Disclosure based on the Recommendations of the Task Force

on Climate-related Financial Disclosures (TCFD)

Japan Airport Terminal Co., Ltd. hereby announces that it has disclosed information based on the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD")*1 ..

The Japan Airport Terminal Group, as a purely private company engaged in construction, management and operation of highly public passenger terminals, has adopted a basic philosophy of "Harmony between the Business and the Society". To realize our long-term vision, "To Be a World-Best Airport - To be the world's most respected airport, pursuing the satisfaction of all stakeholders -," positioning response to climate change as one of the most important management issues, JAT group has expressed its support for the TCFD recommendations in September 2022.

Going forward, JAT group will promote information disclosure related to climate change and contribute to the realization of a sustainable society through our business activities.

*1 TCFD (Task Force on Climate-related Financial Disclosures):

It was established in 2015 by the Financial Stability Board (FSB), at the request of the G20. In order to reduce the risk of destabilization of financial markets, it has recommended that companies disclose information on the financial impact of risks and opportunities that climate change poses to their business activities, as well as specific responses and strategies.

Information Disclosure Based on TCFD Recommendations

• The Japan Airport Terminal Group is a purely private enterprise engaged in construction, management and operation of airport passenger terminals, which are public infrastructure with enormous importance. We are fully aware of the social responsibility associated with this role and aim for management that benefits both public good and business success. To realize our long-term vision, "To Be a World Best Airport," positioning response to climate change as one of the most important management issues, the JAT Group has made various efforts to reduce its environmental impact.
• In September 2022, JAT announced that it expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD recommendations"). In May 2023, we will disclose the information described below based on the TCFD recommendations.
• Going forward, we will continue to be conscious of our business environment surrounding the Company and ensure deeper analysis of risks and opportunities, while implementing countermeasures and endeavoring to disclose related information.

Governance

• Established in July 2022 for the purpose of strengthening JAT's sustainability promotion systems, the Sustainability Committee is chaired by the President and COO and comprised of all officers (including executive officers) of the Company. Its meetings are held at least twice a year. While the Committee is responsible for overseeing such activities as the development of sustainability-related policies and the management of progress, the Sustainability Management Office, a dedicated organization that reports directly to the President, is in charge of implementing concrete initiatives.
• With the climate change-related initiatives having been positioned as an important management issue, the Sustainability Committee plays a central role in developing the implementation policy and managing progress. After being discussed by the Committee, these matters are reviewed by the Executive Committee based on the relationship and consistency with management strategies, and then reported to the Board of Directors for its resolution.
  Fig. 1 Overview of Sustainability Promotion System

1

Strategies

• (Assumptions for scenario analysis) In order to assess the impact of climate change on the Group's business, we conducted an analysis using the following two scenarios (the "1.5°C scenario" and the"4.0°C scenario"). In setting the scenarios, we referred to the scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC)ng scenarios.
  Table 1 Assumptions for scenario analysis

Title		1.5°C scenario		4.0°C scenario
	 As a result of drastic measures having been
		taken effectively, a decarbonized society is		 As a result of additional measures being not
		achieved, limiting the rise in the global		taken, the average global temperature will
Scenario		temperature to 1.5°C from the pre-industrial		rise further by approximately 4°C compared
overview		levels.		to the pre-industrial levels.
	 Major risks that turn into reality include those		 Major risks that turns into reality include
		associated with the transition to a		physical risks arising from climate change.
		decarbonized society.
	 As a result of carbon pricing and regulations
		on the rate of SAF usage by airline operators,		 Governments' policies and regulations to
		the aviation (including airport) industry is
			encourage the shift to a low-carbon society
		required to take appropriate measures such
			have only a limited effect.
		as the carbon offsetting and investments in
			 As climate change intensifies, changes in
		renewable energy and energy saving.
			climate patterns, rising sea levels, and
World-view		In the medium-term, the aviation industry may
	increasingly severe and frequent extreme
		face decarbonization pressure, and there may
			weather events exert adverse impact on the
		be a shift to alternative transportation means.
			airport operations. This makes supply-chain
		However, as the use of SAF becomes more
			risk management and BCP reviews more
		widespread, airport operators and their supply
			important.
		chains gradually succeed in reducing GHG
		emissions.
Key	 WEO*1: APS (Announced Pledge Scenario,		 WEO: STEPS (Stated Environmental Policies
	Paris Agreement's goal achievement
scenarios			Scenario)
	scenario)*2
referred to			 SSP5-8.5
	SSP1-2.6*3
	

*1 World Energy Outlook (investigative report issued by IEA)

*2 In the analysis, we mainly used the Announced Pledges Scenario (APS). In addition to APS, we partly referred to the Net Zero Emissions Scenario (NZE) as another scenario in which the temperature rise is limited to 1.5°C or less from the pre- industrial levels.

*3 In the analysis, we mainly used the SSP1-2.6 scenario. In addition to this, we partly referred to the SSP1-1.9 scenario as another scenario in which the temperature rise is limited to 1.5°C or less from the pre-industrial levels.

2

• Fig. 2 Details of 1.5°C Scenario's World-view*

• • Bold letters denote items that are common to both scenarios, blue letters denote items that are unique to the scenario.
• Fig. 3 Details of 4.0°C Scenario's World-view*

• Bold letters denote items that are common to both scenarios, blue letters denote items that are unique to the scenario.
  3

• (Risks and Opportunities, Degree of Impact, Countermeasures) The table below shows the risks and opportunities identified based on the aforementioned two scenarios, impact assessment, countermeasures to deal with the risks,

which we obtained through the analysis of the JAT Group's "Facilities Management" business and the "Merchandise Sales and Food and Beverage" business (a segment that combines the "Merchandise Sales" business and the "Food and Beverage" business).

Table 2 Risks Associated with Climate Change and Their Impacts

Segment

Time

Most

Level of

Risk Type

Summary

Merchandise

Relevant

Facilities

Sales/Food &

Frame

Impact

Scenarios

Beverage

Increase in the costs of terminal

operating, raw material procurement,

Short- to

and logistics due to the adoption of

✓

✓

medium

1.5°C

Major

carbon pricing including carbon

-term

taxation and credit system

Cost increase due to climate change-

related laws and regulations

(environment-related regulations,

increased construction costs as a

Short- to

result of environmental

✓

long-

1.5°C

Major

considerations, more stringent

term

requirements for obtaining

certification of environment-friendly

building, etc.)

Cost increase due to climate change-

related laws and regulations

GHG Emission

(assuming environmental measures

Short- to

Reduction

such as resource (e.g., plastics)

✓

medium

1.5°C

Medium

Measures

recycling and natural capital-friendly

-term

(Policy and

procurement, and collection of

law/technology)

disposal/purchase cost data)

Increased cost of investments into

anti-climate change measures

(adoption/renewal of renewable

energies, adoption/use/procurement

Short- to

1.5°C

of new energies, investments to save

✓

medium

Major

/4.0°C

energy including the use of LED

-term

lights and renewal of equipment,

adoption of new decarbonization-

Transition

related technologies, etc.)

Risk

Increased cost of anti-climate change

measures (e.g., energy-saving

Medium

investments in materials logistics

- to

such as a shift to electric vehicles

✓

1.5°C

Medium

long-

and labor-saving investments in store

term

renovations and equipment renewal,

etc.)

Slower growth in the number of

airport users due to policy measures

Short- to

that negatively affect aviation

✓

✓

long-

1.5°C

Medium

demand (assuming GHG emission

term

limits for aircraft, increase in air ticket

prices, etc.)

Slow response to environmental

issues may result in a lower

reputation among tenants, partners,

customers, business partners, and

Short- to

employees, lower competitiveness, a

Others

✓

✓

medium

1.5°C/4.0°C

Medium

negative impact on trade

(Market/Reputation)

-term

(employment) terms and conditions;

consumer preferences may change

as a result of increased

environmental awareness.

Negative impact on financing due to

Short- to

slow response to environmental

✓

medium

1.5°C

Minor

issues

-term

Lower preference for Haneda Airport

(among foreign airlines, etc.) due to

✓

✓

Medium

1.5°C

Medium

delays in building preparedness to

-term

accept biofuels

4