In line with "The Roadmap to a Carbon Neutral Society" , and in response to the 1.5ºC scenario analyses, MC is taking steps to divest from fossil fuels - such as moving to alternative fuel sources and raising the percentage of biomass co-combustion at existing coal-fired power plants. Our goal is to reduce our coal-fired power generation capacity on a net equity basis, in line with the 1.5ºC scenario analyses.

＜Independent Power Producer (IPP) Business for Coal-fired Power Generation＞

• As of March 31. 2022, MC’s coal-fired power generation capacity (for businesses in which MC serves the role of Independent Power Producer, or “IPP”), including projects under development and construction, is approximately 1.7GW on an equity share basis (roughly 15% of MC’s total capacity as of the same date).
• MC has adopted a policy to reduce its equity share to approximately one-third by 2030 (compared to 2020 levels) by not entering into any new coal-fired power generation businesses, with the Vung Ang II project in Vietnam being the last, and to exit all existing coal-fired power generation projects by 2050. Furthermore, we will work to reduce CO₂ emissions in our thermal power generation business by taking steps such as converting to alternative fuel sources. We will subsequently aim to achieve a 100% non-fossil power generation portfolio by 2050 by 1) decarbonizing our thermal power generation business by switching to zero-emission thermal power and 2) further expanding our renewable energy business.

＜Engineering, Procurement and Construction (EPC) Business for Coal-fired Power Plants＞

• MC will not enter into any new EPC (Engineering, Procurement and Construction) businesses for coal-fired power plants, with the Quang Trach 1 project in Vietnam being the last. However, MC will continue to provide after-sales services for installed plants in cases such as when MC has a contractual obligation with the relevant power generation company, or when it is requested to do so by the power generation company or equipment manufacturer.
• Furthermore, MC will continue additional construction work and equipment replacement to reduce the environmental impact of existing coal-fired power plants, while assessing the effectiveness of such measures, as an initiative linked to the transition to a low-carbon/ decarbonized society.