On 27 Jan, the NYK Group issued a position paper positioning carbon dioxide removal¹ ("CDR") as a means to reduce Scope 1 emissions².

In November 2023, the Group released its decarbonization strategy, the NYK Group Decarbonization Story ("NDS"). In October 2024, an update, "Progress Report 2024 as Annex to NYK Group Decarbonization Story" , was provided. The NDS sets a goal of net-zero greenhouse gas ("GHG") emissions by 2050 and includes specific initiatives and transition plans to achieve the goal.

The Group prioritizes GHG reduction by maximizing energy efficiency and switching to next-generation fuels. For residual emissions that cannot be avoided through efforts to reduce emissions, CDR will be utilized as a means equivalent to Scope 1 emissions reduction to achieve net zero by 2050. The Group will begin CDR credit³ procurement in fiscal 2025, with the aim of retiring 100,000 tons by 2030.

• The Group agrees with the CDR approach advocated by the IPCC⁴ and this agreement is reflected in the NDS.

• The Group aims to achieve net-zero GHG emissions by prioritizing the maximization of energy efficiency and the conversion to next-generation fuels while utilizing CDR for unavoidable residual emissions.

• Time will be needed to secure a supply of CDR credits equivalent to the residual emissions of hard-to-abate industries, such as aviation and shipping.

• Since CDR technology and rules are still in their infancy, global regulations and frameworks are essential to promote its use.

• The Group is to use CDR credits that apply an "removal" approach among the three types of credits: reduction, removal, and avoidance.

• The trial procurement of CDR credits will begin in fiscal 2025, aiming to retire 100,000 tons of emissions by 2030.

The NYK Group will continue to work toward achieving net-zero emissions by 2050 in accordance with the NDS.

1 CDR (Carbon Dioxide Removal)
Techniques and methods for removing CO2 from the atmosphere

2 Scope 1 Emissions
A GHG-emission category that refers to the direct emissions of a company or organization, such as CO2 and other GHGs generated by the combustion of fossil fuels through fuel combustion emissions

3 CDR Credit
An environmental value that can be traded representing the amount of CO2 reduced by CDR

4 Intergovernmental Panel on Climate Change (IPCC)
The IPCC is an intergovernmental organization established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP). Currently, 195 member countries and regions participate in the panel. Scientists from governments around the world are dispatched to the panel to conduct comprehensive assessments of the causes, impacts, adaptation and mitigation measures of climate change, and to publish regular reports and disseminate the latest scientific knowledge on climate change.