Climate-Related Information Disclosure in Accordance with the TCFD Recommendations

Sony Group Corporation recognizes that its business depends upon a healthy global environment, so it strives to achieve a zero environmental footprint throughout the life cycle of products and business activities, from the perspectives of climate change, resources, chemical substances, and biodiversity, and has set medium-term environmental targets with appropriate initiatives underway to achieve them. We consider our efforts toward curbing climate change and transitioning to a decarbonized society to be key issues we must take on. Efforts are underway in accordance with the TCFD recommendations (hereinafter, TCFD).

Policies

Climate Change

Sony reduces energy consumption and is striving to achieve zero GHG emissions throughout the life cycle of its products, service and business activities.
Specifically, Sony has designated the following initiatives to reduce direct and indirect emissions.

On-Site

• Promoting efficient energy use
• Switching to energy sources with lower GHG emissions
• Promoting use of renewable energy
• Reducing GHG emissions from non-energy related sources

Off-Site

• Developing and providing energy-efficient, environmentally conscious products and services
• Working with contract manufacturers and suppliers of raw materials and components

• Sony Group Environmental Vision
• “Road to Zero,” Sony’s Global Environmental Plan
• Medium-Term Environmental Targets

Governance

Under the Companies Act of Japan, Sony Group Corporation has adopted the “Company with Three Committees” corporate governance system as the most appropriate system for the company. Under this system, the Board of Directors (the “Board”) determines Sony’s fundamental management policies and other material matters, while broadly delegating the decision-making authority to conduct Sony’s business operation to Senior Executives including CEO and Corporate Executive Officers in line with their respective responsibilities as defined by the Board, with a view to promoting timely and efficient decision-making within Sony.
The Board regularly deliberates and decides upon the mid-term management plan and annual business plan, taking into account various risks and opportunities, including climate change, in its deliberations and decisions. Senior Executives implement strategies according to the management plans and the business plan while carrying out business execution, and the Board receives and discusses reports on the status of business execution as needed.
With authority delegated by the Board, the CEO of Sony Group Corporation, who is a member of the Board has responsibility and authority to establish and determine the Sony Group Environmental Vision, which stipulates the corporate philosophy on the global environment and corporate principles including efforts to curb climate change, the global environmental plan and medium-term environmental targets (Green Management 20XX) which are applicable to the entire group. The Senior Executive in charge of sustainability, including environmental matters, appointed by the Board, establishes the Sony Group Environmental Management Structure, which consists of internal regulations that stipulate the basic framework for global environmental management at Sony. Through the Environmental department of Sony Group Corporation, this Senior Executive supervises the initiatives implemented by each business unit and business site to achieve the Sony Group Environmental Vision, and also supervises their operation of and adherence to the Sony Group Environmental Management Structure. In order to address TCFD, the Environmental department of Sony Group Corporation leads the analysis and identification of climate change risks and opportunities through scenario analysis and reviews the countermeasures (For more details, see “Strategy”). The progress on initiatives implemented under this environmental execution framework are regularly reported to and reviewed by the Board. The Compensation Committee has the authority to set policy on the content of individual compensation for directors, including the CEO, senior executives and other officers, and to determine the amount and content of individual compensation or oversee the determination. In certain Sony Group businesses (ET&S, I&SS and G&NS segments), KPIs are established for initiatives addressing sustainability issues, including environmental matters, that each business considers important, and are incorporated into the performance evaluation of each business. The results of these evaluations are also reflected in the remuneration linked to business results of the Senior Executives in charge of the respective businesses.

• Sony Group Environmental Vision
• Environmental Management Structure

Strategy

Identifying and Addressing Business Risks

Tackling environmental issues is consistent with Sony’s commitment to build a sustainable world and is important in terms of ensuring business continuity. Sony seeks to identify various environment-related risks and address foreseeable risks. This applies to transition risks such as adoption of carbon taxes, regional expansion of emissions trading schemes, stronger regulation of energy efficiency standards for products, and market changes driven by shifting consumer attitudes. It also applies to physical risks such as abnormal weather events and sea level rise due to climate change.

Creating and Expanding Business Opportunities

Sony believes that tackling environmental issues also leads to business opportunities. For example, the Paris Agreement*1 that emerged from the COP 21*2 meeting in December 2015 addressed climate change issues, and with increasing public awareness, consumer demand is shifting toward energy-efficient products. The Sony Group has continued to pursue energy conservation in a wide range of products, and in light of these social trends, demand for energy-efficient products may continue to grow. One example of this is the development of IMX500, an intelligent vision sensor with AI processing functionality in its image sensor logic chip. We expect it to be used in IoT fields. Processing information through the sensor on its edge enables the transmission of metadata only (semantic information). This reduces the amount of data transmitted to the cloud as well as the amount of data to be processed, which we believe will reduce energy consumption.

• *1The Paris Agreement was adopted at COP 21 held in Paris, France and serves as an international framework for climate change action starting from 2020.
• *2COP 21 refers to the 21st session of the Conference of the Parties (COP) to the 1992 United Nations Framework Convention on Climate Change (UNFCCC).

Scenario Analysis

Analysis Methodology and Assumptions

Based on TCFD recommendations, Sony conducts scenario analysis annually for each business unit to assess the impact of climate change on the Sony Group.
In business unit analysis, we first identify possible risks and opportunities, taking into account all time frames (short, medium, long-term*3), then prioritize based on a three-level materiality scale (high, medium, low). Next, we conduct a business impact assessment to estimate financial impact on our businesses for risks and opportunities determined to have high materiality, the results of which are used to develop countermeasures.
As prerequisite scenarios, we used the 1.5°C scenario (2°C if unavailable) and the 4°C scenario.*4

• *3Short: 0 - 1 year; Medium: 2 - 5 years; Long: 6 - 20 years
• *4Main scenarios used: World Energy Outlook (published by IEA), water risk assessment tool Aqueduct and Resource Watch (Published by WRI), the Flood Control Economic Survey Manual (published by the Ministry of Land, Infrastructure, Transport and Tourism, Japan)

Analysis Results and Countermeasures

Risks and opportunities identified from fiscal year 2025 scenario analysis, and corresponding countermeasures, are shown in the table in the following section. Risks and opportunities determined to be of high materiality in analysis results of multiple business units are designated high-priority risks and opportunity. Analysis for fiscal year 2025 assumed fiscal year 2040 to evaluate business impact.
Based on the results of the above scenario analysis, the entire Sony Group is working toward using 100% renewable electricity in its own operations by fiscal year 2030*5 to achieve its RE100*6 target. Specifically, Sony Group Corporation is taking measures such as directly purchasing renewable electricity from power utilities and purchasing renewable electricity certificates.
Along with these efforts, in each business segment, Sony develops and enhances risk management and business continuity plans (BCPs) from the perspective of improving risk management across supply chains, through the identification, analysis, and assessment of business continuity risks. Flood damage has grown in recent years due to the impact of climate change, prompting Sony to reassess the flood risk at its manufacturing sites in Japan and implement preventative measures that will mitigate flood damage and facilitate rapid recovery. Sony is collaborating with relevant companies and organizations and conducting hands-on drills to address foreseeable risks in an effort to enhance business continuity and accelerate flood recovery.
Sony will continue to increase its resilience to climate change, based on its analyses and initiatives.

• *5The target achievement timing for the Road to Zero environmental plan and certain medium- and long-term environmental targets had previously been presented as "20XX". Beginning with this report, these references have been represented as "FY20XX" to align with the fact that environmental data aggregation and target management are conducted on a fiscal-year basis. No changes have been made to previously disclosed target details.​
• *6A global initiative in which participating corporations aim to operate on 100% renewable electricity. It is headed by an international non-governmental organization, the Climate Group, in partnership with the CDP.

Climate Change Risks, Opportunities, Countermeasures and Metrics

Climate Change Risks and Opportunities

High Priority Risks and Opportunities and Countermeasures

• Note:The above scenario analysis was conducted using IEA’s scenarios for 1.5°C, 2°C and 4°C temperature rise and based on multiple assumptions. In addition, the measures described above may not be sufficiently effective in addressing the identified risks and opportunities.

Risk Management

Each business unit, subsidiary/affiliated company and corporate division of Sony periodically reviews and assesses risks for the area of which it is in charge and works on finding, reporting, reviewing and responding to the risks. In addition, Senior Executives including the Corporate Executive Officers of Sony Group Corporation have established and maintain a system to identify and control risks that may cause losses to Sony, in the areas of which they are in charge. The Corporate Executive Officer in charge of group risk control comprehensively promotes and manages the establishment and maintenance of the systems as stated above through the activities with related departments. The Board of Directors receives regular reports on the framework and its operational status, to confirm the validity of the framework.
Under the framework, each business unit, subsidiary/affiliated company and corporate division also assesses and analyzes risks related to climate change when assembling business strategies and business plans.

Metrics and Targets

Climate Change Metrics and Targets

In 2010, Sony formulated the Road to Zero global environmental plan, which aims to reduce its environmental footprint to zero by fiscal year 2050.*7 The target year for our goal of achieving carbon net zero group-wide was moved up from fiscal year 2050*7 to fiscal year 2040*7 in May 2022. For climate change action, Sony is developing and supplying environmentally conscious products and services in order to reduce GHG emissions not only from manufacturing at its sites, but also throughout the life cycle of its products. Sony is also making energy-efficiency improvements at its business sites and shifting to renewable energy, while encouraging contract manufacturers and component suppliers to reduce their emissions.
In 2021, Sony Group Corporation announced its Green Management 2025 (GM2025) medium-term environmental targets to achieve by the end of fiscal year 2025 and implemented initiatives to meet those targets. GM2025 classified the product lifecycle into five stages (product/service planning and design, operations, supply chain, logistics, and take back/recycling), and for each stage, Sony set specific targets from the four perspectives of climate change, resources, chemical substances, and biodiversity, and implemented initiatives to achieve these targets. From the perspective of climate change, we set targets such as reducing annual power consumption per product (energy-using products which operate the intended main function with energy input from a commercial power supply) by 5% (compared to fiscal year 2018).*8 Along with moving up the year to meet our climate change targets, we have also changed the target rate for renewable electricity used in Sony Group’s facilities*9 from 15% or more to 35% or more, and continued efforts.
In April 2025, Sony formulated our set of next medium-term environmental targets in Green Management 2030 (GM2030) and will begin working from April 2026 to achieve these targets by fiscal year 2030. In GM2030, toward significantly reducing total greenhouse gas emissions (scopes 1, 2 and 3), Sony has set a target of reducing scopes 1 and 2 emissions by 60% across the Sony Group compared to fiscal year 2025, while also committing to using 100% renewable electricity. We have set a target of reducing scope 3 emissions by 25% across the entire Sony Group compared to fiscal year 2025.
Both our 1.5°C target to be achieved by fiscal year 2035 and our net zero target to be achieved by fiscal year 2040 are approved by the Science Based Targets (SBT)*10 initiative as climate change targets based on scientific grounds.

• *7The target achievement timing for the Road to Zero environmental plan and certain medium- and long-term environmental targets had previously been presented as "20XX". Beginning with this report, these references have been represented as "FY20XX" to align with the fact that environmental data aggregation and target management are conducted on a fiscal-year basis. No changes have been made to previously disclosed target details.​
• *8Applies to energy-using products which operate the intended main function with energy input from a commercial power supply in the ET&S and G&NS segments.
• *9For details on the scope of data collection, please refer to "Scope, Collection Period, and Accuracy of Compiled Data" > "Scope of data collection" > "Site data" in the Data Book “Environmental Data Collection Methods and Rationale.” For details on the data calculation methods and rationale, please refer to “Greenhouse Gas-Related Data Collection Methods and Rationale” > “Renewable electricity rate” in the Data Book “Environmental Data Collection Methods and Rationale.” Following Sony’s completion of the partial spin-off of its Financial Services business on October 1, 2025, the scope of data collection for this report generally excludes the Financial Services business; however, in accordance with the “Environmental Data Collection Methods and Rationale,” performance against this target includes data from the Financial Services business for the period up to the execution of the Spin-off.
• *10An international initiative to encourage companies to set science-based GHG reduction targets in order to limit the increase in the average global temperature due to climate change to 1.5 degrees Celsius above preindustrial levels

• Green Management 2025 Overview
• Green Management 2025 Targets and Results