The Board of Directors approves major investment plans aimed at reducing environmental impacts, receiving reports and deliberating the implementation status of these plans as appropriate. In the event serious environmental risks materialize or are very likely to occur, the Board receives reports on each risk and discusses the status of responses.
Makino selects a General Manager of Environmental Management from management ranks with the authority to formulate and review environmental policies, prepare and provide management resources necessary for the establishment, maintenance, implementation and management of the Environmental Management System (EMS), and appoints a person in charge of steadily implementing the EMS.

Makino identified climate-related risks and opportunities with the potential of impacting business, strategies and financial plans in the short, medium and long-term based on multiple scenarios, with one assuming a 4˚C temperature increase relative to pre-industrial times and the other assuming a limited temperature increase of 1.5˚C. The following are risks Makino believes have the potential to significantly impact business.

• ・Transition risks
  Ongoing GHG emissions pricing, stricter energy conservation policies, mandates and regulations on existing products and services, and rising raw material costs in response to GHG emission reductions.
• ・Physical risks
  Increased severity and frequency of cyclones, floods and other extreme weather events.
• ・Opportunities
  R&D and expansion of low-carbon products and services.

The Risk Management Promotion Office compiles and prioritizes manifested risks. The Board of Directors focuses on legal reform trends, the results of management reviews and other information as risks that must be addressed from a Company-wide perspective, then presents them to each division. Executive managers in each division select major risks to be addressed, taking into consideration risks prioritized from a Company-wide perspective and risks identified in their division. They establish response policies and conduct risk mitigation, which includes monitoring and measurement activities. A portion of the results of these efforts are disclosed on the Makino website. The Environmental General Manager summarizes environmental activities conducted during the year and conducts management reviews. In addition to sharing findings with each division, the Risk Management Promotion Office reflects findings related to key risks from a Company-wide perspective and reports them to the Risk Management Committee. In the event of a particularly important risk issue, the details are reported to the Risk Management Committee for discussion as necessary.

• ・Long-Term Target
  To achieve carbon neutrality (virtually zero greenhouse gas emissions) in 2050 in Scope 1 and Scope 2.
• ・Near-Term Target
  CO2 emissions reductions (Consolidated, Scope 1 and 2) of 42% compared to 2022 by 2030
  CO2 emissions reductions (Consolidated, Scope 3 Category 1 and 11) of 25% compared to 2022 by 2030