Biodiversity Declaration

Target: To Realize a Sustainable Society by Building a Society in Harmony with Nature

We will promote actions for biodiversity conservation more than ever before and will aim to further deepen them with our Biodiversity Declaration to make an international contribution.

• We will strive to prevent environmental pollution in order to ensure the conservation of ecosystems and endangered species as well as the human rights of indigenous communities when conducting our business activities.
• We will strive to maintain harmony between the workings of nature and our business activities by committing to the sustainable use of natural resources with regards to the commodities that we handle.
• We will voluntarily and steadily take actions conducive to biodiversity and then disclose information and engage in dialogue.
• We will work on business activities that take into consideration local ecosystems while utilizing the natural capital of each region. We will endeavor to further promote initiatives on nature conservation and biodiversity while linking up and cooperating with related organizations in Japan and overseas.
• We will foster a culture toward creating a society that cultivates biodiversity and improve awareness of this both inside and outside our company.

Targets in Business Activities

Theme	Target	FYE 2020 Results	SDGs
Biodiversity Conservation Reduce the impact of ITOCHU's products and projects on biodiversity conservation across our supply chain	By 2025, conduct a follow-up ESG risk assessment for all investment projects subject to high biodiversity risk (e.g. hydropower, mines, ships), where biodiversity should be a material risk item assessed, and implement a plan for improvement if necessary.	Identification of biodiversity risks
Sustainable Use of Natural Resources Implement initiatives to improve the sustainable use of natural resources in order to stably produce and supply commodities related to forestry, fishing, and agriculture in the future	By 2025, we will further strengthen our supply chain management approach that focuses on establishing certification and traceability, in order to prevent deforestation and overconsumption of natural resources. Details are here. Timber, Timber Products, Raw Materials for Papermaking, and Paper Products: Aim to achieve 100% coverage of our products that are either certified or confirmed to be under progressive management standards. Palm oil: Achieve 100% traceability to the mill by 2021 and to switch all palm oil procured by the Company to sustainable palm oil*1 by 2025. In particular, we aim to align our procurement to the NDPE principle (No Deforestation, No Peat, No Exploitation)*2. Marine Products: At present, the MSC*3 certification rate for highly migratory fish (e.g. skipjack and yellowfin) are limited due to lack of capability and technology. Given these circumstances, only 4,500 tons of canned yellowfin we trade per year is MSC-certified. However, we are committed to strengthening our supplier engagement to reach 10,000 tons of MSC-certified canned yellowfin traded per year within 5 years. The rate of pole and line fished*4 canned tuna products we handled in FYE 2014 was 7%. By FYE 2019, we succeeded in doubling this to exceeded 14%. We aim to continue on this trajectory and reach 20%. The usage rate and quantity of pole and line fished raw material in ATI more than doubled from 20% at 8,000 tons in 2013 to 40% at 20,000 tons in 2018. It has become one of the few canned tuna factories in the world that uses pole and line fished raw material. We will continue to secure, maintain and expand pole and line fished raw material. Textile Raw Materials: Make 50% of the textile raw materials that we handle traceable and environmentally friendly by 2025.

1. Sustainable palm oil: palm oil supplied from supply chains compliant to RSPO and RSPO-equivalent standards
2. No Deforestation, No Peat, No Exploitation (NDPE): zero deforestation, zero peatland development, zero exploitations
3. The Marine Stewardship Council (MSC) is an international NPO established in 1997 to work on spreading sustainable fishing. It is headquartered in London, England.
4. Pole and line fishing is a method of fishing where one fish is caught at a time. It is a sustainable fishing method that does not involve the catching of large quantities of fish at one time. It is said that it is an environmentally friendly fishing method because it is also possible to avoid the bycatch of non-targeted fish.

For goals in other business activities, please see the Sustainable Procurement: Policies and Initiatives by Product Type.

Targets in Business-related Areas

Targets	FYE 2020 Action Plans	FYE 2020 Results	FYE 2021 Action Plans	SDGs
Implementation and follow-up on social contribution programs aimed at environmental conservation [Basic Activity Guidelines 2 Environmental Conservation]	Promote the Project for Protecting Green Turtles, An Endangered Species. Continue supporting the project to reintroduce manatees into the wild of the new concept Field Museum ecosystem conservation program in the tropical forests of the Amazon.	We launched the Project for Protecting Green Turtles, an Endangered Species in FYE 2019. We gave green turtle conservation tours participated in by employees and their families for the second time on Chichijima in the Ogasawara Archipelago again in FYE 2020. The aim of this was also to foster the environmental conservation awareness of our employees. Since FYE 2017, we have continued to support a survey monitoring the number of green turtle spawns and a post-hatching survey conducted by the Ogasawara Marine Center of Everlasting Nature of Asia certified NPO that is working on marine conservation in the Asian region. The survey results suggest that the number of green turtles in Ogasawara is continuing to increase. We continued to support a project to reintroduce manatees into the wild of the new concept Field Museum ecosystem conservation program in the tropical forests of the Amazon. After capture and rearing, 28 manatees (cumulative total) were released into a semi-captive lake. Furthermore, 27 manatees were released into the Amazon River. This project provided more than 870 local residents with learning opportunities. In particular, it encouraged local fishermen to understand the importance of manatee conservation and got them to participate in this project.	Promote the Project for Protecting Green Turtles, An Endangered Species. Promote other environmental conservation projects.

Assessment of the Impact of Biodiversity on New Businesses

We have established items to assess what impact investment projects will have on the natural environment in the ESG Checklist for Investment — a checklist that must be submitted when entering into new business investment projects. We check whether or not there will be an impact on ecosystems attributable to the applicable project and whether or not there will be an impact on the natural environment (e.g., depletion of resources). If an impact is recognized, we perform risk management in advance of executing the project. For example, upon risk analysis, we make requests to external specialist organizations for additional due diligence if necessary.

Assessment of the Impact of Biodiversity on Existing Businesses

ITOCHU has introduced an environmental management system (EMS) based on ISO14001. We are building a system to evaluate the impact of its business activities on the business it is implementing, as well as the products it handles, in order to recognize the potential impact of its business activities on the global environment and prevent environmental risks. Through this system, we aim to comply with environment-related laws and regulations, prevent environmental risks including biodiversity, and promote environment-friendly businesses. In addition, in order to understand the actual situation of suppliers, seven core subjects of ISO26000 including biodiversity are set as essential survey items, and each company and each company and the handling amount are based on certain guidelines such as high-risk countries, products handled, and amount handled. The relevant group companies select important suppliers, and sales representatives of each company, overseas subsidiaries, and representatives of group companies visit the suppliers and conduct hearings.

Biodiversity Conservation in Business Activities

Biodiversity Conservation in Business-related Areas

ITOCHU is working with stakeholders to protect endangered wildlife.

Support for a Biodiversity Conservation Program in the Amazon

ITOCHU has supported the Field Museum Concept since FYE 2017. This is a biodiversity conservation program in the tropical rainforest of the Amazon being advanced by the Wildlife Research Center of Kyoto University together with the National Institute of Amazonian Research in Brazil for environmental conservation and biodiversity.
The Amazon is an area equivalent to more than half of the tropical rainforests on the earth — it is also known as a treasure trove of ecosystems. However, rapid economic development and local residents cutting down the forest due to their lack of environmental education has led to the gradual loss of this precious ecosystem over the last few years. The Wildlife Research Center of Kyoto University is working together with the National Institute of Amazonian Research to conduct research and dissemination activities to maintain the precious ecosystem of the Amazon. Japan and Brazil have been working together to conduct research and develop facilities for conservation using the advanced technologies that are the specialty of Japan.
We supported the construction of the Field Station. This is a base for the natural observation and research of the diverse creatures and ecosystem of the Amazon in the Cuieiras region at a branch of the Amazon River. This facility was developed through industry, government and academia collaboration. In addition to a multipurpose building with a facility where visitors gather for seminars and research presentations (visitor center), there is also an accommodation building. The opening ceremony for this facility was held in May 2018. The station has made the long-term monitoring of animals and plants possible in an excellent region where a submerged forest and terra firme (solid ground) both exist. This has seen it attract attention both in Brazil and elsewhere around the world. In the future, advanced research will be conducted on the Amazon's tropical rainforest in the medium-to-long term. At the same time, environmental educational activities will be further simulated. It is hoped that this will lead to the conservation of the biodiversity in the Amazon. In addition to research on the Amazon's aquatic life (river dolphins and manatees) and upper reaches of the tropical rainforest that were difficult to study until now, many plans are being considered for the future.
In addition, for the purpose of saving the vulnerable species of the Amazon manatee, ITOCHU supports a program to reintroduce the Amazon manatee into the wild. The number of manatees being protected due to injuries associated with poaching is increasing. On the other hand, autonomous reintroduction into the wild is difficult. Accordingly, there was a pressing need to establish a project to reintroduce manatees into the wild. This project was aiming to reintroduce into the wild nine or more manatees and to semi-reintroduce into the wild 20 or more manatees during the period of the project over three years from FYE 2017. In reality, it has reintroduced into the wild 27 manatees and semi-reintroduced 28 manatees.

Project for Protecting Green Turtles, an Endangered Species

ITOCHU Corporation support activities for protecting green turtles, designated as an endangered species. The support is provided via Everlasting Nature (ELNA), a certified NPO. The total amount of support so far is 9.5 million yen.

People's lives are deeply connected to the natural environment surrounding green turtles. For instance, coastal development has reduced the availability of sandy beaches used as spawning grounds, the green turtles are caught as bycatch and eat refuse on the coast, mistaking it for food. The probability that a green turtle will reach maturity over a period of around 40 years is between 0.2% and 0.3% (the survival rate of young naturally hatched turtles). In order to cultivate an awareness of the environment on the part of employees, from 2018, ITOCHU conducted a Green Turtle Protection Tour on Chichijima in the Ogasawara archipelago, the largest green turtle breeding ground in Japan. In July 2019, ten ITOCHU employees and family members took part in the tour.
In addition, as the accommodation for volunteers staying in Chichijima for conservation activities was aging, we supported the construction of a new accommodation facility with improved living environment and convenience, and completed a unit house in May 2020.

Tropical Forest Regeneration and Ecosystem Conservation Activities on Borneo

Borneo is a tropical forest region spanning three countries — Malaysia, Indonesia and Brunei. Its area is approximately double that of Japan. This makes it the third largest island in the world. Borneo, which is called a treasure trove of biodiversity, is developing. This has led to damage to the tropical forest to the extent that conservation of the ecosystem is not possible with natural regeneration alone. The WWF, a worldwide nature protection organization, is collaborating with the Forest Department in the local Sabah State to conduct an activity to regenerate a forest of approximately 2,400 hectares. This is taking place in North Ulu Segama, Sabah State in Malaysia in the northeastern part of Borneo — a forest regeneration area that has continued to be protected by the ITOCHU Group since 2009. The ITOCHU Group has supported the regeneration of 967 hectares of this land. The afforestation work was completed in 2014 and all on-site work, including maintenance and management work, was finished in January 2016. This is the largest area in which afforestation activities are supported by a regular company. This land is also home to the endangered species of the orangutan. The regeneration of this forest will also lead to the protection of many creatures living here in addition to this orangutan.

Hunting World's Borneo Support Activity

Hunting World, a luxury brand deployed by ITOCHU, has been using a logo with the motif of a young elephant without its tusks since the foundation of the brand in 1965. While serving as a symbol of freedom and revival, it also represents the challenge of looking toward the future in terms of the protection of endangered species. It contains the founder's love and respect for nature. Hunting World Japan, which sells Hunting World goods in Japan, has been supporting a biodiversity conservation activity being promoted by an NPO called the Borneo Conservation Trust (BCT) since 2008 to support the realization of coexistence with nature as called for by the founder. The company plans and sells charity goods and then provides 1% of those proceeds to the BCT. This helps with the funds to purchase land for a green corridor and the costs to rescue Borneo elephants that have gone astray in plantations. The company also independently acquired four acres of land in the green corridor project zone with its assistance funds up to that point in the fall of 2011 to create the Hunting World Kyosei no Mori (Symbiotic Forest of Hunting World). These donations have also helped with the funds to establish the Borneo Elephant Sanctuary. This is the first facility in the Wildlife Rescue Center that has been promoted by BCT Japan, which supports the BCT, since September 2013.

• Green corridor: This is an activity to conserve biodiversity. The land between forest protection zones and forest reserves are purchased back. Divided forests are then connected to create a movement route for animals.

Initiative Participation (Activities Through Business and Industry Groups)

We participate in the Japan Business Federation (Keidanren). We support nature conservation projects in developing areas mainly in the Asia-Pacific region and in Japan through the Keidanren Committee on Nature Conservation that was established in 1992 when the United Nations Conference on Environment and Development (Earth Summit) was held in Rio de Janeiro in Brazil. The Keidanren Committee on Nature Conservation has been working to build an environment in which the business community strives to conserve nature. This has included exchanges with NGOs, the holding of seminars and symposia, and the announcement of the Declaration of Nature Conservation by Keidanren, the Declaration of Biodiversity by Keidanren and the action guidelines for them (revised in October 2018). In addition, in recent years, the committee has also undertaken a tree-planting activity in the Tsunami Memorial Park Nakanohama (Miyako, Iwate Prefecture) that was affected by a tsunami as reconstruction support for Tohoku through the restoration of nature.

In addition, we have declared our approval of the Keidanren's Biodiversity Initiative announced on June 11, 2020.

Cooperation with External Organizations toward Sustainable Palm Oil

ITOCHU joined the Roundtable on Sustainable Palm Oil (RSPO) in 2006. We have set a target of handling only RSPO certified palm oil or palm oil equivalent to that by 2025. We are working on the procurement and supply of sustainable palm oil through cooperation and collaboration with other member companies.
We are also participating in the Sustainable Palm Oil Transparency Toolkit (SPOTT). This is a project by the Zoological Society of London (ZSL) that assesses major palm oil related companies in terms of more than 50 indicators based on data released to the public. We disclose information to stakeholders relating to the palm oil industry through two-way communication.

Participation in the CDP

We participate in the CDP. This is an NGO with the largest database in the world related to environmental information (e.g., climate change measures of companies). We do this as part of our work to proactively disseminate information about our initiatives on ESG for various stakeholders around the world. We have been answering the written inquiries of CDP Forests to assess forest management in the supply chain of companies since FYE 2014.

Aside from our business activities, the ITOCHU Group also conducts activities to conserve biodiversity through activities to contribute to society.

Sponsorship of Shiga Prefectural Lake Biwa Museum Renewal Project

ITOCHU donated 5 million yen for the 2020 renewal project of the Shiga Prefectural Lake Biwa Museum for the purpose of environmental conservation and regional promotion of the founding site.
Shiga Prefecture, where our company was founded, is one of the "SDGs Future City" and has Lake Biwa, the largest lake in Japan. Lake Biwa is one of only about 20 ancient lakes in the world. More than 1,700 species of animals and plants live there, and more than 60 species of native species also exist.It is also an important wetland for waterfowl and a registered wetland under the Ramsar Convention. Since its opening in 1996, the museum has attracted more than 11 million visitors, with the mission of deepening our understanding of the nature, history and life of Lake Biwa and building a better relationship between people and the lake.
In May 2019, we received a letter of appreciation from the governor of Shiga Prefecture, Taizo Mikazuki, for our support. The exhibition room which was renewed in October 2020 explains the transition of the forest and the climate around Lake Biwa.

Performance Data in Business Activities

• Performance Data Regarding Forest Certification and Legal Compliance, Sustainable Procurement Performance Data of Raw Materials for Papermaking
• Performance Data Regarding Sustainable Palm Oil Procurement
• Performance Data of Traceability of Meat
• Performance Data Related to Certification of Marine Products
• Performance Data of Organic Cotton Procurement

Performance Data on Business-related Areas

Conservation Project for Endangered Green Turtles