Disclosure of Natural Capital-related Information in Accordance with TNFD

Recognizing the importance of natural capital as the very foundation of human life and the ecosystem services it supplies, the Sony Group Corporation (hereinafter, Sony Group) continues to pursue long-term efforts according to its Environmental Vision. The Recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) was released in September 2023. Affirming our commitment to disclosure in accordance with this framework, we have become a registered TNFD Adopter, and once more evaluated the relationship between our business and the natural environment.
Based on TNFD recommendations, we screened the value chain of major businesses based on their degree of dependence and impact on natural capital, then implemented a LEAP (Locate, Evaluate, Assess and Prepare) approach to conduct analysis of nature-related issues, specifically targeting Imaging & Sensing Solutions (I&SS), Entertainment, Technology & Services (ET&S) and Game & Network Services (G&NS) segments we directly operate, as well as mineral resource extraction operations in the upstream value chain, and have disclosed the results below.

Policies

Sony protects and utilizes ecosystem services in a sustainable manner, while actively promoting maintenance and recovery of biodiversity through business activities and local contribution. We set and work toward goals with particular focus on stages of the product life cycle where Sony is particularly dependent on or more likely to impact natural capital and biodiversity. We actively promote the maintenance and restoration of nature and biodiversity through consideration of environmental impacts in the procurement of raw materials and parts, while also working to conserve resources in the manufacture of both products and their packaging.

• Sony Group Environmental Vision
• “Road to Zero,” Sony’s Global Environmental Plan
• Medium-Term Environmental Targets
• Biodiversity Initiatives > Deforestation Prevention Policy

General TNFD Requirements

Application of Materiality

This report adopts the concept of double materiality based on the TNFD recommendations. Specifically, we identify and assess nature-related dependencies, impacts, risks, and opportunities from both the perspectives of the impact of our business activities on natural capital (impact materiality) and the impact of changes in natural capital on our business and finances (financial materiality).

Scope of Disclosure

The analysis and evaluation in this report cover our own manufacturing sites in the I&SS, ET&S, and G&NS fields, which have a relatively high dependence and impact on nature, as well as the contracted manufacturer sites and the mining process for mineral resources in the upstream supply chain.

Areas with Nature-related Issues

Following TNFD guidelines for determining sensitive locations, we identified all our manufacturing sites and major contracted manufacturer sites in our I&SS, ET&S and G&NS segments, as well as mines for extraction of mineral resources in the upstream supply chain, and made them priority areas.

Integration with Other Sustainability Disclosure

Sony Group 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, and chemical substances. We also recognize that environmental issues such as climate change, resources, chemicals, and biodiversity are interconnected, so we analyze and disclose nature-related information in consideration of the relationships among them.

Period Covered

In this report, we define time periods as follows: short term is less than 2 years, medium term is 2 years or more but less than 6 years, and long term is 6 years or more.

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 natural capital and biodiversity, 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 also 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 protect natural capital and promote biodiversity, 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 TNFD, the Environmental department of Sony Group Corporation leads the analysis and identification of climate-related risks and opportunities through scenario analysis and reviews the countermeasures. 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 or oversee 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
• Climate Change Disclosure (TCFD) > Strategy
• Natural Capital Disclosure (TNFD) > Natural Capital and Biodiversity Strategy

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 natural capital and biodiversity when assembling business strategies and business plans.

Natural Capital and Biodiversity Strategy

Screening Analysis Scope (ENCORE Mapping)

We utilized ENCORE and the Biodiversity Risk Filter (tools recommended by TNFD) to visualize the relationship between Sony Group’s overall businesses and nature, then quantified dependence and impact related to natural capital for our main businesses. We discovered that our I&SS, ET&S and G&NS segments have a relatively high level of dependence and impact, leading us to set these segments as targets for LEAP analysis.
Additionally, many of our electronics contain mineral resources that have become a point of environmental concern for stakeholders. With this in mind, we have decided to make the contracted manufacturer sites and mineral resource extraction processes a target in addition to direct operation processes at our own production.

Locate: Identifying Priority Areas

Following TNFD guidelines for determining sensitive locations, we identified 28*1 manufacturing sites and major contracted manufacturer sites in our I&SS, ET&S and G&NS segments, as well as 898 mines*2 (containing 31 important minerals) for extraction of mineral resources in the upstream supply chain, and marked them as sensitive areas. We then conducted analysis through tools and databases*3 suggested by TNFD to locate and score these areas based on five criteria: areas important for biodiversity, areas of high ecosystem integrity, areas of rapid decline in ecosystem integrity, areas of high physical water risks and areas of importance for ecosystem service provision, including benefits to indigenous peoples, local communities and stakeholders. As a result, we identified that 73% of our manufacturing sites, 23% of our major contracted manufacturers, and 32% of related mines are in areas important for biodiversity (within a 5 km radius of a site in the World Database on Protected Areas (WDPA)), and also, 17% of our manufacturing sites, 38% of our major contracted manufacturers, and 41% of related mines are in areas of high physical water risk.

Evaluation Results Summary: Manufacturing Sites and Major Contracted Manufacturers

Evaluation Results Summary: Mines

Evaluation Locations

• *1This is the number of locations included in the scope of ISO 14001 global environmental management system certification as of March 31, 2026.
• *2Mining site information includes mineral resources likely contained in Sony products to the extent that such information is generally available.
• *3IBAT (World Database on Protected Areas (WDPA), Key Biodiversity Areas (KBA), Species Threat Abatement and Restoration (STAR), Biodiversity Intactness Index, Ecoregion Intactness Index, WRI Aqueduct, Critical Natural Asset Layers

Evaluate: Identifying and Evaluating Dependency and Impact on Natural Capital

Once located, dependencies and impacts on nature were identified and evaluated for our own manufacturing sites, major contracted manufacturers and mineral resource mines in I&SS, ET&S and G&NS segments. We identified major dependency and impact as follows in the chart below.

This analysis result allowed for key dependency and impact related to risk and opportunity in the respective business segments to be understood. Once we located sensitive areas, we marked them as priority areas where critical dependency, impact, risk and opportunity exist.

Assess: Scenario Analysis for Determining Risk and Opportunity

After determining dependence and impact on nature for the I&SS, ET&S and G&NS segments, as well as for mineral resource extraction, in the Evaluate phase, we created a long list of nature-related risks and opportunities based on the categorization in TNFD recommendations. Then, we conducted scenario analysis of these to determine the importance of individual risks in terms of both finance and impact.
As a premise for the scenario analysis, we assumed 2030 for time, using ecosystem service degradation and alignment of market/non-market forces, as proposed within TNFD guidelines, as axes, and of four scenarios, we have adopted two in terms of risk and likelihood of occurrence.

• Scenario 2 assumes high levels of both physical risk due to degradation of nature and transitional risks due to nature-positive policy, law and regulation, and that nature-related risk for Sony will be high.
• Scenario 3 assumes high physical risk due to degradation of nature, but low transitional risk due to lower interest in natural capital from government, consumers and other stakeholders. Transition to a nature-positive economy has only just begun, so we should also consider the possibility of transitioning to this scenario further in the future.

Scenarios by TNFD and Scenarios Used

We prioritized risk based on each of these scenarios. We conducted risk evaluations to identify critical risk from two perspectives: intensity of financial impact and likelihood of occurrence. Opportunities were considered based on the idea that reducing risk leads to such opportunities, using the AR3T (business activity prioritization of environmental impact: avoidance, reduction recovery/revitalization, transformation) framework to develop countermeasures for critical risks identified, which we recognize as nature-related opportunities.
The table that follows shows significant risks and opportunities identified as a result of the aforementioned analysis of I&SS, ET&S and G&NS segments as well as mineral resource extraction, and also indicates measures to mitigate or avoid negative impact for high priority areas.

In terms of trends in the significance assessment results, for scenario 2, both physical and transitional risks were rated critical. Physical risks include direct damage to buildings and increased restoration costs as a result of ecosystem degradation attributed to increased operating costs at manufacturing sites from changes to land and both water pollution and shortages. Transitional risks include increased response time to allow for more stringent nature-related laws and regulations, as well as damage to reputation as a result of the impact on the natural environment.
While physical risk for scenario 3 did not vary much from that of scenario 2, the importance of transitional risks was rated lower since the scenario assumes lower stakeholder concern regarding natural capital.
Additionally, similar nature-related risks and opportunities were identified for I&SS, ET&S and G&NS segments under the assumption that all are directly operated manufacturing processes, but the I&SS segment is expected to require greater water consumption, making relevant risk greater than that of ET&S and G&NS.

Risks and Opportunities Related to Natural Capital: Countermeasures

I&SS, G&NS, ET&S Segments (Manufacturing Sites including Contracted Manufacturer Sites)

• Note: The above scenario analysis was conducted based on assumed scenarios and assumptions, and the actual results may differ from those presented. In addition, the measures described above may not be sufficiently effective in addressing the identified risks and opportunities

Mineral Resource Procurement (Upstream Supply Chain)

• Note:The above scenario analysis was conducted based on assumed scenarios and assumptions, and the actual results may differ from those presented. In addition, the measures described above may not be sufficiently effective in addressing the identified risks and opportunities

Countermeasures at Sony Manufacturing Sites

Identifying Nature-related Dependency and Impact Pathways

Based on the identification of priority areas and the scenario analysis above, we have identified significant dependencies and impacts in our manufacturing facilities across the I&SS, ET&S, and G&NS sectors that could lead to risks and opportunities. For example, Sony Global Manufacturing & Operations Corporation Inazawa Site (Inazawa City, Aichi Prefecture), which manufactures electronics mounting boards, was found to be located in an area important for biodiversity according to the WDPA (World Database on Protected Areas) index. Inazawa City is located almost in the center of the Nobi Plain, and thanks to its flat terrain, which benefits from the Kiso River, it is a region where rice cultivation is thriving. The diagram below shows the results of identifying the expected impact drivers, natural conditions (environmental assets), and ecosystem services for manufacturing sites operating in this area. In addition, nature-related risks and opportunities arise from the paths of dependence and impact on nature, and we identified severe natural disasters and other physical risks, increasingly severe regulations/ordinances and other transitional risks, and opportunities to restore and preserve local ecosystems.

Identification of Impact Drivers, Natural Conditions (Environmental Assets) and Ecosystem Services (Terrestrial and Freshwater Ecosystems) at Sony Sites

Landscape Approach

In order to promote natural restoration and response to natural risks in priority areas that are highly dependent or have a high impact on nature, it is recommended to promote efforts at the landscape level and watershed level (landscape approach), including efforts by local governments and citizens. In order to concretely advance such wide-area efforts, it is important to identify areas in the landscape of high priority for conservation and restoration, and to clarify areas where priority efforts should be made. Adopting the AR3T framework (prioritization of corporate activities: avoidance, reduction, recovery/regeneration, and transformation of impacts on nature) is also important.
In January 2026, at the Inazawa Site, we conducted expert interviews in two parts in cooperation with the Nature Conservation Society of Japan to identify 21 important areas for biodiversity in Inazawa City from the perspectives of ecosystem rarity, contribution to biodiversity relative to other sites, and habitat connectivity. Among the selected important areas was the Sobue Firefly Preservation Society Experimental Rice Field, where the Inazawa Site has been working in collaboration. Here, our rice cultivation is done without pesticides to protect fireflies. Additionally, as a result of evaluating biodiversity indicator species*4 in important areas, it was found that the area is in good natural condition in terms of both the number and rarity of indicator species, in terms of both plants and birds. Participating in local biodiversity conservation activities being carried out in important areas of Inazawa City is considered an effective activity for addressing the effects of the aforementioned impact drivers (land use) on the Inazawa Site (such as fragmentation of surrounding ecosystems and habitat changes). We will promote conservation of biodiversity at the landscape level by reviewing and assessing the issues faced in each of the identified important areas and their urgency, as well as by carrying out dialogue with related parties to consider specific initiatives.

Overview of Reviewed and Assessed Important Areas in Inazawa City

Sony carries out ongoing initiatives to restore, create, and conserve biodiversity in consideration of the dependence and impact on ecosystem services in its activities at its sites, and in response to local ecosystems. See List of Biodiversity Conservation Initiatives at Sony Sites (GRI101) for information on biodiversity conservation activities at Sony sites.

• *4Biodiversity Species Evaluation, Takagawa et al., 2025, A biodiversity evaluation method using indicator species based on the nestedness of species assemblage

• List of Biodiversity Conservation Initiatives at Sony Sites (GRI101)
• Biodiversity Conservation Initiatives at Sony Sites

Natural Capital and Biodiversity Metrics and Targets

Nature-related Metrics and Targets: Prepare

Sony formulated the Road to Zero environmental plan in 2010, setting medium-term environmental targets in five-year increments that are then progressively backcasted based on current achievement levels in consideration of expected and intended impact levels. This approach enables Sony to work steadily toward achieving our zero environmental footprint goal, while making ongoing adjustments based on current progress
We announced Green Management 2025 (GM2025), which specifies medium-term environmental targets until fiscal year 2025, in September 2020. GM2025 classifies the product lifecycle into five stages (product/service planning and design, operations, supply chain, logistics, and take back/recycling), and for each stage, Sony has set specific targets from the four perspectives of climate change, resources, chemical substances, and biodiversity, and is implementing initiatives to achieve these targets.
Targets from these four perspectives are closely tied to natural capital, and are further connected to measures to tackle nature-related risks and opportunities identified by the Sony Group.

• Climate change is a major cause of water resource shortages and landslides that are critical risks in the I&SS, ET&S and G&NS segments. Countermeasures to curb or adapt to climate change will additionally lead to the reduction of nature-related risks. The promotion of efforts to achieve targets aimed at climate change are as described in relevant metrics and targets.
• In consideration of resources, Sony set the goals of improving water usage intensity value on sites that use high volumes of water by 5% (base year: fiscal year 2020)*5 and implementing risk reduction measures at sites located in water risk areas.*6 Further, we request that suppliers of raw materials and components and contract manufacturers set water consumption reduction targets and perform progress management, while taking into consideration the water depletion risk in site locations.*7 All such goals are connected to water risks identified for I&SS, ET&S and G&NS segments. In mineral resource extraction in the upstream of the supply chain, the Sony Group works to reduce usage and increase recycling of important mineral resources, such as tantalum, with the goal of increasing collection efficiency by 1.5 times (compared to fiscal year 2020),*8 thereby building and maintaining a recycling process that corresponds to the needs of the surrounding community.*9 This is further connected to countering risk associated with decreases in mineral resources as a result of large-scale extraction and rises in mineral prices directly tied to increased competition for limited resources.
• Looking at chemical substances, the group is making efforts to replace environmentally controlled substances of high concern in high-risk applications,*10 while prohibiting the use of some substances altogether.*11 Across the supply chain, Sony Group further requests that suppliers of raw materials and components and contract manufacturers conduct management compliant with unified Sony Group standards. This is applicable to raw materials, parts and products delivered to the group, as well as semi-finished and finished products delivered to the group by contract manufacturers. We have also set targets for the appropriate management or prohibition of substances separately designated by the group, applicable to raw material and component suppliers and contract manufacturers.*11
• From the perspective of biodiversity, we will continue implementing conservation activities tailored to local ecosystems and cleanup activities in areas surrounding our sites, as well as requesting materials and parts suppliers take biodiversity into consideration and take action.*12 All of these goals and targets are related to efforts to mitigate reputational risk associated with the increased environmental impact of pollutant emissions from production sites in the I&SS, ET&S and G&NS segments.

See our Environmental Data for further information related to core TNFD disclosure metrics on water usage, waste generated, etc. See List of Biodiversity Conservation Initiatives at Sony Sites (GRI101) for information on biodiversity conservation activities at Sony sites.

• *5Applies to sites with high water consumption (annual water consumption of 500,000 m³ or more in fiscal year 2024) within the scope described in “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 “Resource Related Data Collection Methods and Rationale” > “Volume of water use/withdrawal/discharged” > “Volume of water use” in the Data Book “Environmental Data Collection Methods and Rationale.”
• *6Applies to sites located in water risk areas within the scope described in “Scope, Collection Period, and Accuracy of Compiled Data” > “Scope of data collection” > “Site data” in the Data Book “Environmental Data Collection Methods and Rationale.” Sites located in water risk areas are defined as sites in areas where the overall water risk score was 3 or higher based on a combined assessment using water risk assessment tools provided by the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
• *7Applies to raw materials and components suppliers in the ET&S, G&NS, I&SS and All Other segments, and to certain contract manufacturers in the ET&S and G&NS segments.
• *8Applies to a Sony affiliate that conducts recycling operations pursuant to Japan's Home Appliance Recycling Law.
• *9The ET&S and G&NS segments comply with recycling laws and regulations in countries and regions worldwide.
• *10Applies to the G&NS, ET&S and I&SS segments, and certain companies in the All Other segment.
• *11Applies to Sony Group Corporation, the G&NS, ET&S and I&SS segments, and certain companies in the All Other segment.
• *12Applies to raw materials and components suppliers in the ET&S, G&NS, I&SS and All Other segments, and to certain contract manufacturers in the ET&S and G&NS segments.

• Climate Change Disclosure (TCFD) > Metrics and Targets
• Green Management 2025 Overview
• Green Management 2025 Targets and Results
• Green Management 2030 Overview
• Biodiversity Initiatives
• Environmental Data
• List of Biodiversity Conservation Initiatives at Sony Sites (GRI101)