News Release

February 24, 2026

Hiroshima, Japan; February 24, 2026 - SATAKE announces its overseas group company, SATAKE ASIA CO., LTD., entered into a Memorandum of Understanding (MOU) on January 7 with Faeger Co., Ltd. to promote agricultural projects aimed at reducing greenhouse gas emissions.

Satake Group is committed to contributing to the realization of a sustainable society through product development and business activities. As part of its efforts to address the social challenge of climate change, the Group is actively working to reduce greenhouse gas emissions. Under this initiative, SATAKE ASIA CO., LTD. (hereinafter "SAA") has signed the MOU with Faeger Co., Ltd. to collaboratively promote the creation of agriculture-based carbon credits, with the goal of reducing environmental impact and realizing sustainable agriculture.

Faeger Co., Ltd. proposes farming methods that contribute to greenhouse gas reduction to agricultural producers, quantifies the resulting emission reductions as "agriculture-based carbon credits," and sells these credits to companies seeking to achieve carbon neutrality. The company operates not only in Japan but also overseas, primarily in Asia.

This collaboration aims to promote the creation of carbon credits in Southeast Asia by combining the Satake Group's extensive expertise, experience, and customer network in the post-harvest sector cultivated over many years in the region, with Faeger's knowledge in generating agriculture-based carbon credits. The MOU has been concluded to advance discussions on potential cooperation currently under consideration. In the future, one possible initiative includes utilizing rice husks generated at rice mills, customers of SAA, as biochar, leveraging Faeger's expertise to create carbon credits.

Through this partnership, Satake aims not only to reduce greenhouse gas emissions, but also to enhance agricultural productivity through the application of biochar to farmland and to improve the profitability of producers and rice mills through the sale of carbon credits. In doing so, the company seeks to contribute to the realization of sustainable agriculture in the rice industry in Southeast Asia and to the improvement of customer profitability.

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Appendix

【About application of Biochar to Farmland】

Biochar is a type of charcoal produced by heating biomass?such as wood, livestock manure, rice husks, or sewage sludge?at temperatures of 350°C or higher under carefully controlled oxygen conditions that prevent combustion. Depending on the feedstock used, biochar can serve as a soil amendment that improves soil water absorption and retention, or as a fertilizer that supplies nutrients such as phosphorus. ?If rice husks or other biomass materials used as feedstock for biochar are directly incorporated into farmland without processing, they are rapidly decomposed by microbial activity, and the carbon dioxide contained in the material is released into the atmosphere. In contrast, when processed into biochar before incorporation into soil, the material becomes more resistant to decomposition and remains in the soil for a long period of time, thereby reducing carbon dioxide emissions. The reduction of carbon dioxide emissions achieved through the application of biochar to farmland is certified as carbon credits. In addition to agronomic benefits such as soil improvement, the credits generated through this process can also be sold.

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