Tokyo Electric Power : TEPCO BIODIVERSITY REPORT 2024

TEPCO BIODIVERSITY

REPORT 2024

Introduction

The global trend to evaluate business activities from the perspective of biodiversity has intensified more than ever before.

The business activities of the TEPCO Group, which is an energy provider, include the installation and operation of facilities over a wide area and, therefore, are deeply dependent upon natural capital and have a great impact on the environment.

Since its founding, the TEPCO Group has given great consideration to the natural environment and biodiversity when engaging in business activities, and now that the Taskforce on Nature-related Financial Disclosures (TNFD) has announced a framework for disclosing information pertaining to nature-related risks, the TEPCO Group shall reassess its initiatives and strive to further disclose information based upon the methods recommended by this framework.

The TEPCO Group release this Biodiversity Report in order to compile and disclose information pertaining to current initiatives as part of the process of disclosing information in accordance with the TNFD framework.

May, 2024

TNFD stands for the Task Force on Nature-related Financial Disclosures. This private sector-led task force urges corporations to disclose their risks and opportunities pertaining to the natural environment and biodiversity so that financial institutions and investors can make suitable investment decisions.

In addition to the recommended disclosures structured around the four recommendation pillars (governance, strategy, risk and impact management, metrics and targets) and metrics, the final recommendations announced by the TNFD in September 2023 include the LEAP approach, which provides guidance on the integrated approach for the identification and assessment of nature- related issues, and also multiple frameworks that consist of sector and biome- based guidance, and individual guidance for scenario analysis and target setting.

TEPCO Group At a Glance

Holding Company

Nuclear Fukushima

Fuel & Thermal Power

Generation Company

Business support and

management of our fuel and

power generation company, JERA

General Power Transmission

and Distribution Company

Electricity Retail Company

Operating revenue

Approx.¥7.7trillion

Operating income (loss)

Approx.¥-228.9billion

Gross power sales

242.8TWh

Employees

38,027people

Renewable energies		Oil 0.3%
54.7%
Hydro 54.4%
Solar 0.2%	Installed
Wind 0.1%	capacity
Biomass 0.0%	Nuclear 45.0%
18,269
	MW

Renewable energies	Oil 1.3%
98.7%
Hydro 98.1%
Solar 0.2%	Electricity
Wind 0.3%
Generated
Biomass 0.1%
	12,248
	GWh

Electricity and gas retail

Renewable Energy Power

Generation Company

Consolidated Subsidiary	Renewable Power	Holdings
71companies	86.1%	5.7%
Owned land area	8.2%
		Power Grid
	263.55 km2
as of March, 2023
TEPCO Holdings and all of consolidated subsidiary companies

TEPCO BIODIVERSITY REPORT 2024

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Planetary Boundaries

The planetary boundaries concept announced in 2009 by the Stockholm Resilience Center, a research group in Sweden, presents a set of planetary boundaries within which humanity can continue to develop and thrive for generations to come. The group identified nine processes that regulate the stability and resilience (ability of nature to recover) of the Earth system, established boundaries for these processes, and continues to assess and examine the status of each boundary. The framework has been updated several times in 2015, 2017, and 2022, and a final assessment of all boundaries was published in the third major update in 2023.

The green area in the center of the diagram is the safe area and the orange and red areas indicate that a global boundary has been transgressed. The 2023 assessment results show that six of the nine boundaries (Climate Change,

Biosphere Integrity, Land-

System Change, Freshwater

Change, Biogeochemical Flows, Novel Entities) have been transgressed.

This indicates that the resilience of the climate, ecosystems, and water/forest environments, etc., have been pushed beyond their thresholds and are in danger of reaching a catastrophic state. Furthermore, these boundaries are not independent, but rather interrelated, and we must be aware of this relationship, such as how climate change greatly impacts biodiversity, and restrict human activities to safe boundaries.

Source: Richardson, Katherine, Will Steffen, Wolfgang Lucht, et al. "Earth Beyond Six of Nine Planetary Boundaries." Science Advances 9 (September, 2023)

• TEPCO BIODIVERSITY REPORT 2024

Topics

Nature Positive

Nature-positive is a global societal goal to halt and reverse the loss of nature and biodiversity and create a positive effect on the environment.

In 2020, businesses and conservation organizations came together to publish a document entitled, "A Nature- Positive World: of the Global Goal for Nature" which puts forth the scientific basis for the goal of halting and reversing nature loss by 2030 on a 2020 baseline, and achieve full recovery by 2050.

At the UN Biodiversity Conference (COP15) held in 2021, the Kunming Declaration, which incorporates the idea of nature-positive, or rather, to "reverse biodiversity loss by 2030 at the latest and help it to fully recover," was released, and the G7 Cornwall Summit also agreed on the "2030 Nature Pact", and in 2022, the Kunming-Montreal Global Biodiversity Framework, which is a new global goal to be achieved by 2030, was adopted thereby making the achievement of nature- positive a common global initiative.

This initiative puts forth the goal of "30 by 30," or rather, to ensure and enable that by 2030 at least 30% of land and coastal and marine areas are effectively conserved thereby setting clear goals for the recovery of biodiversity.

Source:The Nature Positive Initiative

Electric power facilities of TEPCO Group

Generation

Facilities	Plants	Installed capacity	Land
Nuclear power	1	8,212,000kW	9,707,000m2
Hydroelectric power	164	9,800,532kW	221,885,000m2
Other renewables	5	50,770kW	230,000m2
Internal combustion power	10	58,360kW	79,000m2

*Fukushima Daiichi Nuclear Power Station and Fukushima Daini Nuclear Power Station are not included in the number of Plants of nuclear power facilities because they have been decommissioned in accordance with the Electricity Business Act. However, they are included in the area of Land

Transmission, Transformation and Distribution

Facilities		Details	Land
Transmission lines	total length	41,037km	9,705,000m2
Transformation	substations	1,614	10,550,000m2
Distribution lines	total length	1,067,738km	272,000m2
			as of March 31, 2023
Niigata Prefecture
Nuclear
└1：8,212,000kW
Hydro
└7：375,300kW

Atema Area P32

Higashidoori Area P31

Oze Area P16、P23、P28

Fukushima Prefecture Hydro └15：355,250kW

Fukushima Daiichi

Nuclear Power Station

P34

Tochigi Prefecture Hydro └23：2,206,300kW

Gunma Prefecture Hydro └42：2,833,840kW

Nagano Prefecture Hydro └32：2,504,800kW

Yamanashi Prefecture

Hydro

└29：1,461,002kW

Solar

└1：10,000kW

Shizuoka Prefecture

Hydro

└3：18,400kW

Wind

└1：18,370kW

Fuji Area P30

Kanagawa Prefecture Hydro └12：45,590kW Solar └2：20,000kW

Chiba Prefecture Wind └1：2,400kW

Tokyo Islands Internal combustion └10：58,360kW Hydro └1：50kW

TEPCO BIODIVERSITY REPORT 2024

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Important areas for biodiversity conservation

The TEPCO Group is surveying its power station, etc., facilities to see if any of them meet the requirements for key biodiversity areas. When conducting this survey, we referred to the protected area categories designated by the International Union for Conservation of Nature (IUCN), as well as protected areas in Japan, and leveraged this basic information when examining the dependency/ impact relationship that the siting of power facilities has on biodiversity.

Power facility siting status and the state of key biodiversity areas (examples in Gunma Prefecture)

IUCN	Designated areas in Japan
Categories
		a	Wilderness Conservation Area
			Offshore Seabed Nature
I			Conservation Area
	b
		Nature Conservation Area
			Forest Ecology Conservation Area
			Semi-National	Areas for which the
	II	Parks	primary objective
		is to protect
			National Parks
			ecosystems
	III	-
			Rare Population Protection Forests
			National Wildlife Sanctuary

Habitat Conservation Area

IV	Biological Community
	Conservation Forest Area
	Prefectural Wildlife Sanctuary
	Protected Water Surface

Back ground map source; Geospatial Information Authority of Japan

Facility location

Hydroelectric Renewables Substations Offices

Oze region owned by the TEPCO Group

IUCN Categories	Ⅰb	Ⅱ	Ⅳ
Prefectural borders

• TEPCO BIODIVERSITY REPORT 2024

Topics

Biodiversity in Japan

A Japanese university startup, Think Nature Inc., uses Japan's largest biodiversity big data to provide various data infrastructures via its website. Its Japan Biodiversity Mapping Project (J-BMP) shows to visualize native/endangered/endemic species in each region of Japan and the world, and also shows the conservation priorities of areas in particular importance for natural conservation.

Source:Think Nature Inc.

TEPCO Group Biodiversity Policy

Enacted on April 1, 2024

The TEPCO Group's action guideline for preserving biodiversity ("TEPCO Group Biodiversity Policy") is a policy for "preserving biodiversity" as put forth in the TEPCO Group Environmental Policy. Our objective is to work with stakeholders, such as our customers and business partners, etc., to preserve biodiversity throughout all of society.

1. Ascertaining the relationship between our business and regional biodiversity, and striving to preserve it
2. • While ensuring a stable supply of power, we shall ascertain the relationship that our electricity business has to biodiversity and strive to reduce any detrimental impact.
   • Through environmental impact assessment (EIA), etc., we shall consider the impact that the construction of power facilities has on biodiversity and implement appropriate measures to preserve biodiversity during and after construction.
   • We shall assess the environmental load caused by business facility emissions and strive to mitigate environmental impact in light of the actual conditions in the region.
   • We shall strive to maintain/improve the multifunctionality of forests, such as how they help to preserve biodiversity, prevent landslides, and cultivate water sources
3. Complying with laws and rules pertaining to biodiversity and contribute to international society
4. • We shall comply with related laws and strive to preserve biodiversity.
   • We shall comply with the Convention on Biological Diversity (CBD) and the Convention Concerning the Protection of the World Cultural and Natural Heritage, and contribute to achieving Japan's objectives as put forth in its National Biodiversity Strategy.
5. Aiming to simultaneously achieve carbon neutrality while preserving biodiversity
6. • Through initiatives that aim to create a carbon neutral society, we shall strive to mitigate the impact of climate change on ecosystems.
   • Through the sustainable use of bioresources we shall contribute to the preservation of biodiversity as we aim to create a circular economy.
7. Striving to convey easy-to-understand information to, and engage in dialogue with, stakeholders
8. • Through environmental impact assessment (EIA), etc., we shall convey information to, and engage in dialogue with, local communities in a suitable manner and at suitable times as we strive to form consensus.
   • We shall proactively convey information on important natural capital owned by the TEPCO Group, such as the protected area in Oze National Park.
9. Educating employees and strengthening partnerships with external stakeholders
10. • We shall deepen the understanding of biodiversity amongst all TEPCO Group employees as we strive to preserve biodiversity through partnerships with local communities.

The aforementioned initiatives shall be promoted under the TEPCO Group environmental	An ermine peeking out from a gap in
management system and governance structure.	the wooden pathway in Oze
	Photo: Oze Preservation Foundation

TEPCO BIODIVERSITY REPORT 2024

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CONTENTS

7 Preparations to TNFD

8 Towards adoption of the TNFD recommendations

9 Trial use of the LEAP Approach

15 Future plans

16 Oze and TEPCO

17	History
18	Biodiversity in Oze
19	30by30

21 Economic value assessment of natural capital

22 Wooded/grassy area around the power station

23 Oze; CVM and TCM

24 Oze; Value Creation Process

25 Oze; Ministry of the Environment guidelines

27 Natural capital usage examples

28 Oze SDGs Inquiry-Based Learning Tour

29 Oze Katashina Zero-Carbon Park

31 Fujiyama Power-line Trail

32 Biotope corridor

33 Group company initiatives

33 Conditions at the Fukushima Daiichi Nuclear Power Station

36 Third-party reviews

37 TNFD Core Global Disclosure Metrics

• TEPCO BIODIVERSITY REPORT 2024

Preparations to TNFD

The TNFD's framework for the disclosure of information pertaining to nature-related risks was announced in September 2023. The aim is to achieve "nature-positive," or rather, shift the flow of capital so that it has a positive, rather than a negative, impact on the environment.

The TEPCO Group's business activities have an impact on climate change as well as on the natural capital on which it is suitably dependent. Therefore, going forward, we shall disclose information pertaining to biodiversity based on the TNFD framework much like we disclose information pertaining to climate change based on the TCFD framework.

• Towards adoption of the TNFD recommendations………… P8
• Trial use of the LEAP Approach…………………………………… P9
• Future plans……………………………………………………………… P15

Reference:

Recommendations of the Taskforce on Nature-related Financial Disclosures ［September, 2023］

TEPCO BIODIVERSITY REPORT 2024

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Preparations to TNFD

Towards adoption of the TNFD recommendations

The TNFD framework includes a set of recommended disclosures structured around the four pillars of governance, strategy, risk and impact management, and metrics and targets, as well as the LEAP Approach, which serves as practical guidance for identifying and assessing nature-related issues for each location at which business activities occur.

Going forward, the TEPCO Group shall visualize its dependency and impact on nature and disclose information pertaining to the relationship that this has to our financial activities based on the TNFD framework.

Reference:

Getting started with adoption of the TNFD Recommendations

Governance Structure

Board of Directors

	President
Risk	Future
Management	Management
Committee	Committee

ESG Committee

TNFD recommended disclosures

Biodiversity

Information Liaison

Committee

Governance	Strategy
Disclose the organisation's	Disclose the effects
governance of nature-	of nature-related
related dependencies,	dependencies, impacts,
impacts, risks and	risks and opportunities on
opportunities.	the organisation's business
	model, strategy and
	financial planning where
	such information is material.

Risk & impact management

Describe the processes used by the organisation to identify, assess, prioritise and monitor nature-related dependencies, impacts, risks and opportunities.

Metrics & targets

Disclose the metrics and targets used to assess and manage material nature- related dependencies, impacts, risks and opportunities.

A Biodiversity Information Liaison Group comprised of people from mainly the departments in charge of facilities that are highly dependent, and have a large impact on, natural capital has been established as a subcommittee of the ESG Committee.

Progress in TEPCO Group

Preserving biodiversity is	Based on TEPCO Group	Identify priority locations	Along with assessing risks and
important ESG management	Biodiversity Policy, risk and	based on risk and impact	opportunities, we will set metrics/
topic that is supervised by	opportunity assessments	assessment and promote	targets based on the strategies that
the Board of Director	and strategies are being	analysis and evaluation	match our financial strategies and
	developed	using the LEAP Approach	promote initiatives pertaining to them

Topics pertaining to the operation of the entire TEPCO Group are discussed as ESG issues by the ESG Committee which then reports to the Board of Directors.

• TEPCO BIODIVERSITY REPORT 2024