CSR Survey of Supply Chains

ITOCHU develops various businesses around the world. In order to check the status of our various suppliers, we conduct survey with a method suited to the characteristics of the goods of each Division Company, along with mandatory questions on the ten items in our “CSR Action Guidelines for Supply Chains.”
In addition to the ten items covering human rights, labor, and environmental issues, we added further items specific to each Division Company. For example, we added check items for forest conservation for the Forest Products & General Merchandise Division (lumber, pulp & paper); product safety items for the Food Company; and items on protection of intellectual property for our Textile Company. Each Division Company selects target suppliers and creates a survey plan based on such parameters as high-risk countries, products handled, and transaction amounts by referring to the criteria of the FTSE4Good Index. Sales representatives or locally assigned ITOCHU employees of each Division Company visit the suppliers, and survey them by means of interviews or questionnaires.
In April 2009, ITOCHU established ITOCHU Corporation’s CSR Action Guidelines for Supply Chains to clearly communicate its stance to suppliers.(Revised November, 2011) ITOCHU is promoting dialogue on human rights, labor and environmental protection, as it seeks understanding and implementation of these action guidelines.
Moving forward, in addition to conducting surveys of the actual situation and reviewing survey methods, ITOCHU plans to continue similar measures at suppliers of overseas offices and Group companies, which were added in the fiscal year ended March 31, 2011.

ITOCHU Corporation's CSR Action Guidelines for Supply Chains

Sample checklist for a supply chain survey [Food Company]

CSR Surveys in the Fiscal Year Ended March 2011

In fiscal 2011, we conducted a survey, targeting not only suppliers of ITOCHU Corporation but also suppliers of overseas offices and Group companies. As a result, we surveyed 374 companies, including 21 suppliers of overseas offices and 87 suppliers of 12 Group companies.No serious problems requiring immediate response were found in the survey results. We also found that the survey results were more focused this time on the key points, thanks to increased understanding by the employees conducting the surveys, and we received feedback that participants had seen improvement due to the continuation of the surveys.
We are committed to continually increasing our employees' awareness in our daily business and to improving the CSR of our suppliers by continuing these surveys and dialogue with suppliers.

Survey results by organization (FY2009 to FY2011)

	FY2011	FY2010	FY2009
Total	^(*)374	300	261
Textile Company	24	28	17
ICT & Machinery Company	15	17	12
Energy, Metals & Minerals Company	14	11	8
Chemicals, Forest Products & General Merchandise Company	193	133	149
Food Company	105	93	57
Finance, Realty, Insurance & Logistics Services Company	23	18	18