Biodiversity
Biodiversity Protection through Business and Social Action Programs
While our business activities impact biodiversity, we also benefit from ecosystem services. That is why the Sharp Group is carrying out a multifaceted approach in which it protects biodiversity through business activities and social action programs at worldwide bases.
Sharp’s Efforts for Protecting Biodiversity
In our business activities, we aim to be nature positive by 2030, halting and reversing the loss of nature. As part of this, since fiscal 2024, we have participated in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum. We also registered as a TNFD Adopter in fiscal 2025, declaring our commitment to disclosures in accordance with the framework, and have prepared to disclose information based on the TNFD framework. Also in fiscal 2025, we implemented the LEAP approach (an assessment step for disclosure recommended by the TNFD) at our business sites.
TNFD-Based Information Disclosure
Action on the TNFD Recommendations
The Task Force on Nature-related Financial Disclosures (TNFD) has published a framework that recommends the systematic assessment and disclosure of the dependencies and impacts of business activities on natural capital and biodiversity. We support the principles of the TNFD and aim to be nature positive by 2030, halting and reversing the loss of nature. As part of this, since fiscal 2024, we have participated in the TNFD Forum, and we registered as a TNFD Adopter in fiscal 2025, declaring our commitment to disclosures in accordance with the framework. Moving forward, we will further expand our information disclosures in accordance with the TNFD framework.
1. Governance
Similar to climate-related issues, the president and CEO, who chairs the Sustainability Committee, is responsible for monitoring nature-related issues and supervising countermeasures. The committee deliberates on and promotes various nature-related measures and shares the latest developments. Through monitoring and review by management at committee meetings, we continuously strengthen our biodiversity-related efforts to play a part in making society sustainable.
2. Strategy
We conducted an analysis based on the LEAP approach, the disclosure assessment steps recommended by the TNFD, for our domestic and overseas production sites (direct operations). Going forward, we will expand the scope of the LEAP approach to our supply chain and consider specific actions to achieve a nature-positive future.
3. Risk Management
We identify and assess nature-related risks in accordance with our Rules of Business Risk Management, which define our fundamental approach to risk management. Specifically, we identify nature-related risks that are highly likely to occur and report the findings as necessary to senior executives and the Internal Control Planning Division, which serves as the risk management secretariat. We also facilitate necessary improvement measures in partnership with involved departments. In particular, to minimize the effects on business continuity from such risks as water shortages in areas where we operate, we continuously assess water risk at our plants using the Aqueduct assessment tool developed by the World Resources Institute (WRI). We take measures such as reducing the use of new water by recycling wastewater from production sites located in the highest-risk areas.
4. Metrics and Targets
Through our long-term environmental vision, SHARP Eco Vision 2050, we are working toward realizing a sustainable global environment by pursuing long-term goals set in three fields of action with 2050 as the target year: climate change, resource recycling, and safety and security. In the area of safety and security, based on the idea that our business activities must not have a negative effect on people’s health, the natural environment, or ecosystems, we are pursuing efforts to ensure we properly manage chemicals in order to protect people’s health, the natural environment, and ecosystems.
Going forward, we will continue to pursue a multifaceted approach in which we protect biodiversity through business activities and social action programs. We will also consider the setting of specific targets based on the LEAP approach.
LEAP Approach
Scoping
From the perspectives of business scale, the dependencies of our business on nature, and the impacts of our business on nature, we considered the scope of analysis for our domestic and overseas production bases (directly operated) that handle our main businesses: Smart Life, Smart Workplace, and Display Devices. As a result, we decided to include three domestic and three overseas bases as the subjects of our analysis.
Identifying Priority Locations (Locate)
Using the analytical tools* recommended by the TNFD, we identified locations with connections to nature for the bases selected through scoping. In identifying priority locations, four criteria were used, based on the indicators of the analytical tools: business scale, environmental impact (GHG emissions, waste, water withdrawal, wastewater, etc.), water risk, and biodiversity (biodiversity importance, endangered species, etc.).
By combining these criteria and conducting a comprehensive analysis, we identified all three domestic bases and two in Southeast Asia of our three overseas bases as priority locations.
- ENCORE, IBAT, Aqueduct
Identifying Dependencies and Impacts (Evaluate)
Next, we analyzed how each business interacts with nature in the identified priority locations and organized the findings into a heatmap. For this analysis, the business activities of each base were classified in accordance with the International Standard Industrial Classification of All Economic Activities (ISIC), and the degree of dependence and impact on nature were evaluated on a five-point scale: very high, high, medium, low, and very low. Some of the evaluation results were adjusted to reflect our actual situation.
Heatmap of Nature-Related Dependencies
VH：Very High H：High M：Medium L：Low VL：Very Low
| Segment | Business | Nature-related dependencies | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Provisioning services | Regulating services | |||||||||||||
| Water resources | Solid waste remediation | Air filtration | Water purification | Noise attenuation | Mediation of sensory impacts | Water flow regulation | Local climate regulation | Global climate regulation | Rainfall pattern regulation | Flood mitigation | Storm mitigation | Habitat maintenance | ||
| Smart Life | Home appliances | M | VL | VL | M | VL | VL | M | L | VL | VL | M | M | L |
| TVs | M | VL | VL | M | VL | VL | M | L | VL | VL | M | M | L | |
| Display Devices | Devices | H | VL | L | M | VL | VL | M | L | VL | VL | M | M | H |
Heatmap of Nature-Related Impacts
VH：Very High H：High M：Medium L：Low VL：Very Low
| Segment | Business | Nature-related impacts | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Land/freshwater/ocean use change | Climate change | Resource use/replenishment | Pollution/pollution removal | ||||||
| Land ecosystem use | GHG emissions | Water use | Waste | Non-GHG air pollution | Soil pollution | Water pollution | Disturbances | ||
| Smart Life | Home appliances | L | M | M | M | L | M | L | M |
| TVs | L | M | M | M | L | L | L | M | |
| Display Devices | Devices | L | H | H | H | H | H | H | M |
Our dependency on water-related services such as water resource supply, water purification, and water flow regulation, as well as disaster mitigation services, including flood and storm mitigation, and habitat maintenance services for endangered species was made clear. In addition to the impacts of GHG emissions, water use, waste, and disturbances caused by our operations, the pollution-related impacts, such as air, soil, and water pollution, of our device business were identified.
Identifying Risks and Opportunities (Assess)
Based on the dependencies and impacts identified in the ENCORE analysis, and taking into account the characteristics of our business, we identified risks and opportunities, as shown in the table on the right, and considered measures to take with regard to each. Going forward, we will conduct scenario analyses and prioritize and assess the importance of these risks and opportunities.
Business Risks and Opportunities; Sharp’s Response
| Category | Identified risks | Identified dependency | Identified impact | Sharp’s response | |
|---|---|---|---|---|---|
| Physical risks | Chronic | Suspension of operations due to decreased or depleted water resources | Water use |
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| Chronic | Water and soil pollution caused by improperly managed hazardous chemicals and waste | Water purification, water flow regulation | Waste, soil pollution, water pollution |
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| Acute | Decreased natural climate regulation capacity / Decreased natural water retention capacity leading to more severe wind and flood damage and an increase in landslides and flooding | Flood mitigation, storm mitigation, habitat maintenance | GHG emissions |
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| Transition risks | Technology | Cost of introducing equipment and machinery to improve water and energy efficiency | Water resources | GHG emissions, water use, waste, non-GHG air pollution, soil pollution, water pollution, disturbances |
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| Policy | Tighter regulations and ordinances concerning water source conservation, water withdrawal, and pollution | ||||
| Reputational | Reputational damage, lawsuit risks, and boycotts due to pollution and disturbances (light pollution, noise, etc.) caused by operations | Water purification, water flow regulation | GHG emissions, waste, non-GHG air pollution, soil pollution, water pollution, disturbances |
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| Category | Identified opportunities | Identified dependency | Identified impact | Sharp’s response | |
|---|---|---|---|---|---|
| Business performance | Resource efficiency | Improved business efficiency and cost reduction through reduced use of natural resources | Water resources | Water use |
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| Reputational | Improved brand image | Water use |
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| Sustainability performance | Sustainable use of natural resources | Sustainable water use through reduced water consumption, conservation of water sources, and groundwater recharge | Water resources | Water use |
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Setting Countermeasures and Targets (Prepare)
We identify and assess environmental risks in accordance with our Rules of Business Risk Management, which define our fundamental approach to risk management. Furthermore, guided by our long-term environmental vision, SHARP Eco Vision 2050, we have set targets for GHG emissions, water resources, waste, chemicals, and other areas and are accelerating efforts to achieve them.
Going forward, we will further expand the scope of the LEAP approach, conduct more detailed analysis and assessment, and consider setting targets for the risks and opportunities identified through this approach.
Protecting Biodiversity
| Fiscal 2025 Objectives | Fiscal 2025 Achievements | Self-Evaluation | Priority Objectives for Fiscal 2026 |
|---|---|---|---|
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★★ |
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- Self-evaluation:
- ★★★ Achieved more than targeted
- ★★ Achieved as targeted
- ★ Achieved to some extent
We consider biodiversity conservation to be one of our important environmental challenges. Accordingly, we carry out activities that take local ecosystems into consideration around the world while striving to harmonize our business activities with nature.
In Japan, building on our participation in the 30by30 Alliance for Biodiversity*1, we are pursuing such initiatives as obtaining recognition as nationally certified sustainably managed natural sites*2 for our business locations. Overseas, we carry out biodiversity conservation activities tailored to the characteristics of each region, such as protecting endemic species, planting trees, and preserving the marine environment.
Sharp Locations Recognized as Nationally Certified Sustainably Managed Natural Sites
| Business location | Site | Activity location | Ecological type | Certification obtained |
|---|---|---|---|---|
| Tenri Plant | Todaijiyama-Kofun Tumulus Tenri Tumulus Sharp Forest | On-site | Natural forest, secondary grassland/grassland | September 2025 |
| Kameyama Plant | Sharp Green Club Kameyama Biotope*3 | On-site | Rivers and lakes | March 2026 |
- A coalition of companies, local governments, organizations, and others working towards achieving the 30by30 targets, which aim to effectively conserve more than 30% of land and sea as healthy ecosystems by 2030.
- A system under which the Japanese government certifies areas where biodiversity is being conserved through private-sector and other initiatives, based on the Act on Promoting Activities to Enhance Regional Biodiversity.
- A conserved or created environmental space where local organisms can live and thrive.
Contributing to Local Ecosystems through the Protection of Native Honeybee Species
Production base SMF in France provides grassland on its premises to beekeepers with the aim of protecting the European dark bee (Abeille noire), a native species endemic to the region.
In France, efforts are being made in various regions to protect native honeybee species well-suited to the local environment, with the aim of conserving unique local biological resources. The protection of honeybees supports the pollination of various plants and crops, helping to maintain the health of ecosystems and improve agricultural sustainability.
SMF uses its premises for local biodiversity conservation to protect native species and strengthen ties with the local community. As a by-effect of these activities, in 2025, approximately 90 kg of honey was harvested and sold locally.
Obtaining Ministry of the Environment-Certified Sustainably Managed Natural Site Recognition
Tenri Tumulus Sharp Forest at the Tenri Plant (Nara Prefecture)
At the Tenri Tumulus Sharp Forest located on the Tenri Plant premises, we are undertaking biodiversity conservation activities aimed at protecting and nurturing the natural environment that originally exists in the region.
In 2006, a biological survey confirmed the presence of the bamboo lily (Lilium japonicum), a rare plant that grows naturally in this area. This prompted the start of ongoing conservation activities, including efforts to create an environment conducive to the growth of the bamboo lily, such as by adjusting the timing and methods of weeding and removing invasive species. As a result, bamboo lily growth continues to be observed, and the long-term preservation of this rare species has been highly praised. In September 2025, the site was recognized as a sustainably managed natural site by the Ministry of the Environment and the Environmental Restoration and Conservation Agency (ERCA).
Sharp Green Club Kameyama Biotope at the Kameyama Plant (Mie Prefecture)
The Sharp Green Club Kameyama Biotope, located on the Kameyama Plant premises, has been under development since fiscal 2010 with the aim of creating a space where people can connect with nature. In addition to serving as a place of relaxation for employees, it also serves to protect rare species.
Since its initial development, this biotope has been home to the yaritanago fish (Tanakia lanceolata), a rare and endangered species native to the Suzuka River system. Its continued presence has been confirmed, and the biotope was recognized as a sustainably managed natural site in March 2026 for its long-term maintenance of the habitat for this rare species.
Restoring Coral Reefs and Cultivating Roadside Tree Saplings
Indonesian production and sales base SEID is working to raise employees’ environmental awareness as well as pursuing various activities that contribute to the conservation of local ecosystems.
During the #SharpUntukBumi event held on Tunda Island, coinciding with World Environment Day (June 5th every year) spearheaded by the United Nations Environment Programme (UNEP) and with the cooperation of the Indonesian Coral Reef Foundation (Terangi), SEID employees, together with domestic and international media representatives and local residents, planted 5,500 mangrove saplings, carried out coral restoration, and cleaned up the beach. Through these sorts of activities, SEID helps conserve coastal ecosystems and improve the marine environment.
On National Nature Conservation Day (August 10th every year), established by the Indonesian government, 40 SEID employees participated in planting a total of 40 Tabebuia saplings (pink and white), a species widely appreciated as a street tree in the region. The saplings will be nurtured on the company’s premises until they reach a suitable size for planting.
Through activities such as these, SEID provides each employee with an opportunity to deepen their understanding of the local natural environment and biodiversity.
