Commitment by Supervising Officer

In its 2023 business plan "SMAS Evolution 2023 ∞", SMAS announced the "Mobility Platform for a Sustainable Society" as what we want make ourselves and stated that we would work to create a sustainable society through its businesses. In fiscal 2024, we clarify how materiality is connected with our business plan and run our business with sustainability at upgraded level. As a company that handles automobiles, SMAS recognizes that our top priority is to cope with the climate-change. In particular, we have computed and showed our Scope1,2 figures in order to reduce emissions of greenhouse gases (GHG). In fiscal 2023, we expanded the scope of computation to include domestic operating companies, except for equity-method affiliates. In addition to SMAS and SMA Support, for some categories of Scope3, i-SMAS was also included in the scope of computation and disclosure.

Furthermore, we have our data verified by the third-party in order to ensure its accuracy and reliability because we have been required to show highly reliable information in recent computation and publication of GHG emissions.

Going forward, we, SMAS, aim to achieve 2050 carbon neutral with our stakeholders by moving the next three initiatives forward to reduce GHG emissions.

①Internal Initiatives
As a measure to reduce GHG emissions, in Scope1, we will optimize the number of company vehicles, and further accelerate electrification, aiming for 55% electrification in FY2024 and 100% electrification in FY2030. In Scope2, we will also actively purchase electricity of renewable energy for reducing GHG emissions.

②Commitment to Customers
For customers, we will actively propose the introduction of EV in addition to proposals as to the use of vehicles and fleet management. We continue to propose "EV one-stop service" to contribute to solving issues for customers' introduction of EV to address the issues unique to EV like the procurement costs of vehicle, energy chargers, and the use of renewable energy, which we have not seen before, in joint efforts with various partners of unique technologies,.

③Other Initiatives
In the area of vehicle maintenance, we will actively work on the initiatives for circular economies by promoting the use of green parts and by reusing off-lease EVs.