Environmental Management - IINO KAIUN KAISHA, LTD.

Policy and Strategy

Basic Views

The IINO Group Sustainability Policy states, "The IINO Group strives to comply with all relevant domestic and international regulations, reduce the environmental impacts arising from its business operations, and to protect the environment. Additionally, the group is actively committed to addressing climate change and protect the natural environment." In terms of specific initiatives, we will work to conserve resources and energy, reduce waste, fully utilize water resources, and promote recycling while also reducing and preventing the emission of greenhouse gases and air pollutants and helping to reduce the impact on the global environment. Through the development of environmental management systems, we will also make ongoing improvements to these activities to reduce environmental impact.

See our Sustainability Management

Structure

Promotional Structure for Action on the Environment and Climate Change

The IINO Group regards initiatives to address environmental issues, including the reduction of greenhouse gas emissions and the realization of a decarbonized society, to be key management issues and considers Group-wide initiatives and manages their progress with this in mind.

The Safety and Environment Committee, which is chaired by the President and Representative Director and whose members include all executive directors and the presidents of major Group companies, was established as a body to discuss environmental issues. The President and Representative Director is also responsible for climate change issues in the IINO Group.

The Safety and Environment Committee convenes monthly, where it conducts deliberation and assessments that lead to improvement activities in response to the details of reports it receives on the status of various environmental and safety-related activities, including greenhouse gas reductions and the realization of a decarbonized society. To promote Group-wide action more actively, particularly with regard to responding to climate change, in June 2022, the Sustainability Promotion Department was newly established (headed by executive officer of IINO LINES). In addition, an Environmental Promotion Working Team, an inter-departmental body made up of members from the Shipping Sales Department, Real Estate Sales Department, Shipping Management Department, Building Management Department, and other departments, was established within the Sustainability Promotion Department. These two bodies are working together to plan and formulate action on climate change, with the Sustainability Promotion Department regularly reporting on their initiatives to the Safety and Environment Committee.

Environmental Preservation in Shipping Business

The IINO Group undertakes various measures to reduce its environmental burden in the Shipping Business, chief among which are further reductions to CO₂ emissions that are the major cause of global warming, and the reduction of waste.

For the vessels owned by IINO LINES, we aim to reduce CO₂ emissions per ton mile transported (CO₂ g/ton-mile) for the vessels owned by IINO LINES by 20% compared with FY2020 levels by FY2030 and to achieve carbon neutrality by FY2050.

Overview of Main Environmental Preservation Measures

Environmental Preservation in Real Estate Business

There are many environmental issues to be tackled by the Real Estate Business, including further reductions to CO₂ emissions that are the major cause of global warming, and the preservation of biodiversity. We also believe we have a heavy responsibility to the global environment.

We have set the target of reducing the CO₂ emissions generated by all the domestic buildings owned and operated by IINO LINES by 75% compared with FY2013 levels by FY2030, and, mirroring the Shipping Business, we aim to achieve carbon neutrality by FY2050.

Initiatives

Environmental Audits (Internal Audits / External Review)

Within our Group, in addition to IINO Kaiun Kaisha, both IINO Marine Service Co., Ltd., which manages our vessels, and IINO Building Tech Co., Ltd., which manages our buildings, have obtained ISO 14001 certification (Environmental Management System, hereinafter "the System"). Together, these three companies account for approximately 90% of the Group's consolidated revenue.

Under the System, which has been in operation since 2004, the ISO Promotion Section within the Sustainability Promotion Department conducts internal audits once a year across all departments and personnel involved in our marine transportation and building leasing operations. These audits are carried out to verify compliance with relevant laws and regulations, progress against annual plans, the effectiveness of the System, and conformity with ISO standards. The results are reported to the Safety and Environment Committee. The System also defines the roles and authorities of the Chief Executive Officer (President), the Environmental Management Representative (the executive officer in charge of the Sustainability Promotion Department), and other responsible parties, and stipulates the procedures to ensure compliance with legal requirements and the ISO 14001 standard.

To further confirm conformity with the System, annual audits and triennial renewal audits by ClassNK (Nippon Kaiji Kyokai) have been conducted since 2004, with the Company maintaining certification under ISO 14001, the international standard for environmental management systems. Based on the results of internal and external audits, a management review is conducted once a year to ensure that the System continues to function effectively (the FY2024 management review was conducted in July 2025). During this review, issues for the following fiscal year are also identified, and continuous improvement is promoted through the PDCA cycle. The most recent ISO 14001 renewal date is March 22, 2024, and the certification is valid until March 21, 2027.

Certificate of Environmental
Management System Registration

Status of Environmental Communication

External Communication

Creation of the Integrated Report

Our environmental initiatives are summarized and published electronically on IINO LINES' website as the Integrated Report (formerly IINO Report, renamed starting FY2022). A booklet edition is distributed to Group officers and employees and is also available to various stakeholders through a website where the materials can be requested free of charge.

For details on the Integrated Report, see the "IINO Reports (Annual Reports)" section of the website.

Use of the IINO LINES website

We have integrated the previous "Environmental Initiatives" section of the website that shared the IINO Group's various actions on climate change and other environmental issues with the information described in our Sustainability Databook (formerly Detailed Report), redesigning the website section as "Sustainability" in FY2023.

By consolidating information disclosures on the website, we will strive to achieve swift, timely, and appropriate disclosures and further enhance our annual activity reporting.

Internal Communication

Use of the internal Group newsletter

In the internal newsletter, we introduce information about sustainability initiatives, including the IINO Group's environmental action, to Group officers and employees.

Use of the Intranet

On the intranet operated by the IINO Group, we have created pages introducing the environmental initiatives taken by the IINO Group and share information, including greenhouse gas emissions and environmental laws and regulations.

State of Compliance and Response to Various Environmental Regulations

In the shipping industry, the International Maritime Organization (IMO), a specialized agency of the United Nations, formulates regulations concerning action on climate change, air pollutants such as nitrogen oxides (NOx) and sulfur oxides (SOx), and action on disturbances to marine ecosystems due to the discharge of ballast water. The IINO Group complies with each of these regulations and takes action, including investing in marine equipment as part of these efforts.

Climate Change Regulations and Response

Regulations	FY2030 (1) 40% improvement in efficiency (2) 20% reduction in greenhouse gas emissions (30% reduction target) (3) 5% spread of zero-emission fuel (target 10% spread), 70% reduction of greenhouse gas emissions in FY2040 (80% reduction target) Net-zero greenhouse gas emissions in FY2050 (all emissions in relation to FY2008 levels)
Response	Ballast water treatment equipment have been installed on all vessels managed by the IINO Group

Air Pollutant Reduction Regulations and Response

Regulations	Existing emission regulations for sulfur oxides, which cause acid rain, were strengthened in January 2020, introducing the requirement that the sulfur concentration contained in the fuel oil of ships be 0.5% or less).
Response	Use of regulation-compliant oil (low-sulfur fuel) Introduction of exhaust gas scrubber systems Development of dual-fuel main engine that can use fuels other than heavy oil

Ballast Water Discharge Regulations and Response (Ecosystem Preservation)

Regulations	Ballast water regulations to prevent the microbial organisms contained in ballast water from migrating to non-native waters and disturbing ecosystems due to the movement of ships took effect in September 2017.
Response	Ballast water treatment equipment was gradually installed on ships owned by the IINO Group.

Total amount of environmental fines or penalties imposed in FY2024

In FY2024, the amount of fines or penalties imposed due to environmental violations (air pollution, soil pollution, waste, water quality) was €15,000.