Environment Conserving Businesses

Policy and Basic Concept

ITOCHU has decided to select important challenges that will lead to sustainable growth and to work on solving those challenges through our business in our Basic Policy on Promotion of Sustainability. Accordingly, we are striving to solve global environmental problems through the promotion of environment conserving businesses. We perceive business that contributes to solving environmental problems as a major challenge even in our business strategy. In particular, we are implementing business that contributes to efforts to address climate change (contribute to the realization of a low-carbon society) and to ensure stable procurement and supply — material sustainability issues — in various business fields. This is done through the spirit of sustainable growth according to the reinvented sampo yoshi, or the "three goods" (good for the buyer, good for the seller and good for society), approach aiming at our Brand-new Deal 2020 mid-term management plan. Each department formulates a sustainability action plan and then promotes it according to the PDCA cycle as the structure to promote these businesses.

Targets

Materiality	Issues to address	Business area	Commitment	Specific approach	Performance indicators	Degree of Progress
Textile Company
Ensure stable procurement and supply	Stable supply of industrial resources and materials	Environmentally friendly materials (sustainable materials) such as recycled fibers	We will accelerate initiatives for the recycled fiber business, not only to create new businesses but also to help solve the global problem of apparel waste and reduce petroleum-derived materials.	Work aggressively on the recycled fiber business and lead the industry in promoting the use of sustainable materials.	Commercialize the recycled fiber business as soon as possible. Increase the ratio of sustainable materials to materials we trade.	We are aiming to strengthen our supply chain from raw materials to finished products, with a focus on sustainable raw materials. Thus, we have conducted multiple investment and planning projects for suppliers of Lyocell and recycled polyester and these are progressing well.
Machinery Company
Address climate change	Taking countermeasures against climate change	Overall power generation business	We will develop power plants with a good balance between renewable energy power generation and conventional power generation, thereby contributing to the development of countries and regions in a sustainable manner that is optimized for each.	Pursue opportunities to invest aggressively in renewable energy power generation through analyses of countries and regions.	FYE 2031: Target to achieve a renewable energy ratio more than 20% (equity interest basis) and reflect this to the future strategy.	In FYE 2019, we accomplished followings in the field of development of renewable energy. Launching commercial operation of the final unit (No. 3 unit) of the Sarulla Geothermal IPP Project in Indonesia, Completion of the Saga-Ouchi Solar Power Plant in Saga Prefecture.
Address climate change	Taking countermeasures against climate change	Sales of passenger cars and commercial vehicles	We will achieve the eco-friendly mobility society by strengthening　businesses of electric vehicles (EVs), hybrid vehicles (HVs), vehicles with a reduced environmental impact, and those related.	Contribute to spread of eco-friendly vehicles by increasing business of eco-friendly and high-efficiency products, such as EVs, HVs, vehicles with a reduced environmental impact, and related parts.	Expand sales of eco-friendly products in response to the expanded lineup of EVs, HVs, vehicles with a reduced environmental impact, and similar vehicles from automakers as our business partners.	In Japan, we participated in the field test of light electric trucks. We invested in two projects in China where the sales of electric vehicles is increasing drastically. 1) EV rental and maintenance service company Dishangtie Car Rental (Shenzhen) Co., Ltd., 2) Chinese emerging EV manufacturer ZHICHEAUTO Technology (Shanghai) Co., Ltd.
Respect human rights	Improving water and hygiene infrastructures	Water and environmental projects	We will contribute to improving the hygiene environment, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste.	Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the environmental impact.	Expand and diversify the investment portfolio in the water and environment field.	Water Sector We are participating in Water Supply and Sewerage Treatment Companies in the UK and Spain, Seawater Desalination Projects in Australia and Oman. Our Project in Oman started commercial operation in 2018. We continue to invest in portfolio in the water sector. Environment Sector We invested in four Waste Management Projects in the UK and awarded a 25-year Waste Management and Resource Recovery Project in Belgrade, the republic of Serbia in 2017.
Metals & Minerals Company
Address climate change	Taking countermeasures against climate change	Mining business Environmental business Material-related business	We will realize stable energy supply as our social mission and responsibility while fully considering its environmental impact. We will contribute to reducing greenhouse gases through businesses related to lighter-weight vehicles and Electric Vehicles (EVs).	Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gases emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU). Aim to develop an appropriate portfolio of coal assets by fully considering its environmental impact. Strengthen initiatives in businesses that contribute to the development of lighter-weight vehicles and shift to EVs (aluminum, copper, and other businesses).	Contribution to the development of a low-carbon society by committing to technologies that help reduce greenhouse gases emissions. Development of an optimal asset portfolio by fully considering social requirements, including those related to the shift to a low-carbon society. Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs.	Carbon Capture and Storage (CCS): We continue to carry out information collection and analysis through observation and interviews with Japan CCS Co., Ltd. and companies conducting CCS projects overseas. Carbon Capture and Utilization (CCU): Along with joining research organizations and collecting information, we are also engaged in specific projects. We have considered our policy towards the coal business through actions such as analyzing multiple scenarios based on suggestions made by the Task Force on Climate-related Financial Disclosures (TCFD). Consequently, we publicly announced our policy commitment in February 2019. This is: 1) - We will not acquire new thermal coal mining interest., and 2) - Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers. The amount of transactions for aluminum castings/die-cast materials for vehicles increased 6% in FYE 2019 over FYE 2018, contributing to the development of light-weight vehicles.
Energy & Chemicals Company
Address climate change	Taking countermeasures against climate change	Oil & Gas LNG (Liquefied Natural Gas) Projects	Development and production of natural resources with consideration in the reduction of greenhouse gases.	Partnering with experienced operators with high technical strength in the development and production of natural resources.	Pursuing opportunities to take part in LNG projects (i.e. LNG or natural gas emits less greenhouse gases than the other fossil fuels).	We have begun concrete discussion concerning participation in a new liquefied natural gas (LNG) project.
Food Company
Address climate change	Taking countermeasures against climate change	Provisions Fresh foods	We will reduce the impact of abnormal weather on the business with the aim of ensuring the stable supply of agricultural crops.	Decentralize production areas by collaborating with Group companies.	FYE 2021: Aim to develop other areas following the Philippines in the Fresh Produce Business.	In FYE 2019 we selected candidates for new production areas. From FYE 2020 on, we plan to specifically promote the fruits and vegetables business in new production areas.
Contribute to healthier and more enriched lifestyles	Supplying safe, secure food	Overall food-related businesses	We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably.	Increase the number of persons with international certifications/qualifications related to judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers.	Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation.	In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
General Products & Realty Company
Ensure stable procurement and supply	Using sustainable forest resources	Wood products & materials Pulp Woodchips	We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.	Continue to request suppliers who have yet to obtain certifications to obtain them. Conduct sustainability surveys of suppliers and visit them.	FYE 2026: Aim to achieve a rate of 100% for materials under high-level management or certified ones that we handle.	We also continue to carry out the following for suppliers Verifying traceability by conducting individual on-site inspections Expanding the handling of products subject to "timber traceability verification by third-party organizations.
Address climate change	Taking countermeasures against climate change	Cement alternatives such as slag	We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital to fields like construction and civil engineering.	Establish continuous, stable business flow between ironworks as the supplier of slag and other byproducts and demanders.	Consider investment, participation, etc. in the slag business and focus efforts on creating demand, especially in developing countries, with the aim of establishing continuous, stable business flow.	The volume of transactions to developing countries is expected to increase by 50% from the previous year. We are engaged in continued consultation concerning planning and investment for the slag business.

Structures and Systems

R&D Effort Policy

We are proactively developing business to contribute to solving material sustainability issues with a mid-to-long term perspective in the environment and clean tech field.

R&D Effort Structure

We have established the Business Planning & Development Division since FYE 2020. This office is striving to develop environmental business that will lead to next generation business.

R&D Efforts

	Specific Project Examples
Carbon dioxide capture and storage (CCS)	Japan CCS Co., Ltd.
Next-generation lithium ion batteries	24M Technologies, Inc.
Ultra-low illumination compatible photovoltaic elements	inQs Co., Ltd.
Bio-refinery business support	Green Earth Institute Co., Ltd.

We are engaged in climate change related business in the R&D field.

Carbon Dioxide Capture and Storage (CCS)

We recognize that CCS is an essential technology to aim for low carbonization. Therefore, we have participated in investment in Japan CCS Co., Ltd., which is conducting demonstration experiments in Tomakomai, to pursue the possibilities of practical application of CCS. (The cumulative volume of CO₂ injected as of the end of June 2019 is approximately 262,000 tons).

Next-generation Lithium Ion Batteries

24M is a company which researches and develops semi-solid batteries that surpass current lithium ion batteries in terms of their safety, energy density and manufacturing costs. The firm has established a unique process that greatly improves and simplifies the current lithium ion battery manufacturing process. It has also acquired a technical patent and is running a demonstration pilot plant in the US. The biggest feature of the company is that it is able to supply products with price competiveness in addition to being able to maintain and improve the performance of current lithium ion batteries. It achieves this by reducing the components used and by simplifying the manufacturing process.
We are deploying the semi-solid battery manufacturing licensed business of 24M on a global basis. The aim of this is to respond to the growing demand for batteries that is spreading around the world. We are expanding our battery manufacturing business with local partners in areas of demand. This also includes the supply of battery components and the delivery of manufacturing facilities.

Ultra-low Illumination Compatible Photovoltaic Elements

IoT devices, which are expected to increase in number explosively in the future, are often installed in places with poor sunlight conditions (e.g., in factories and places where there is a risk of disaster). Conventional solar cells cannot generate power in such places.
Meanwhile, there is a problem of the excessive cost of wiring in connecting power supplies by wire and it takes effort to regularly replace button batteries. Under such circumstances, there are extremely high expectations for the ultra-low illumination compatible photovoltaic elements of inQs Co., Ltd. This is because they can become a self-sustaining power source that generates power at high efficiency without the need for battery replacement.

Bio-refinery Business Support

We are investing in and supporting the development of Green Earth Institute Co., Ltd. This is a venture company with technology that produces chemical substances from renewable biomass without using fossil raw materials.
The amino acid valine licensed by this company since last year and for which commercial production has already begun is helpful in promoting health and increasing food production. In addition, an environmentally friendly manufacturing method is being provided.

Efforts

Renewable Energy Related Business

ITOCHU is working to solve social challenges. We are achieving this through business investment in power generation assets utilizing the geothermal, wind power and other renewable energies that are expected to grow as a necessary supporter of energy supply in the future.
We are aiming for a renewable energy ratio of over 20% (equity interest basis) by FYE 2031 in our overall power generation business. This will be reflected in our future efforts.

List of Renewable Energy Related Efforts
Details of Effort	Name of Business Operator / Investment Project	Country	Generating Capacity / Size	Greenhouse Gas Reduction Figures
Wind Power Generation Business	CPV Keenan Ⅱ Wind Power Generation Project	USA	152MW	Approx. 400,000 tons / year
Wind Power Generation Business	Cotton Plains Wind and Solar Pear Generation Business	USA	217MW	Approx. 560,000 tons / year
Offshore Wind Power Generation Business	Butendiek Offshore Wind Power Generation Project	Germany	288MW	Approx. 750,000 tons / year
Waste Management Projects	ST&W Waste Management Project / South Tyne & Wear Energy Recovery Holdings Limited	England	Incineration treatment of 260,000 tons / year of general waste Scale of power generation: Equivalent power consumption of 31,000 homes	Estimated 62,000 tons / year
	Cornwall Waste Management Project / Cornwall Energy Recovery Holdings Limited	England	Incineration treatment of 240,000 tons / year of general waste Scale of power generation: Equivalent power consumption of 21,000 homes	Estimated 60,000 tons / year
	Merseyside Waste Management Project / Merseyside Energy Recovery Holdings Limited	England	Incineration treatment of 460,000 tons / year of general waste Scale of power generation: Equivalent power consumption of 63,000 homes	Estimated 130,000 tons / year
	West London Waste Management Project / West London Energy Recovery Holdings Limited	England	Incineration treatment of 350,000 tons / year of general waste Scale of power generation: Equivalent power consumption of 50,000 homes	Estimated 83,000 tons / year
	Serbia Waste Management Project / Beo Cista Energija (Construction will begin in 2019)	Serbia	Incineration treatment of 340,000 tons / year of general waste Scale of power generation: Equivalent power consumption of 30,000 homes (planned)	Estimated 120,000 tons / year
Geothermal Power Generation	Sarulla Operations Ltd	Indonesia	330MW	About 1,350,000 tons/year
Photovoltaic Power Generation	Oita Hiyoshibaru photovoltaic power plant large-scale solar power plant	Japan	44.8MW	Estimated 32,000 tons/year
	Shin-Okayama photovoltaic power plant large-scale solar power plant	Japan	37MW	Estimated 26,000 tons/year
	Saijo Komatsu photovoltaic power plant large-scale solar power plant	Japan	26.2MW	Estimated 17,000 tons/year
	Saga-Ouchi photovoltaic power plant large-scale solar power plant	Japan	21MW	Estimated 11,000 tons/year
Biomass Power Generation	Ichihara Biomass Power Plant	Japan	49.9MW (Planned start of operation Oct. 2020)	Estimated 136,000 tons/year

Examples of Efforts

Offshore Wind Power Generation in the North Sea of Germany

The demand for renewable energy is increasing. Against this backdrop, we are jointly participating in power generation business at the largest class (288 MW) with the CITIC Group with which we have signed a strategic business and capital alliance. This project takes the form of an offshore wind power station operating in the North Sea of Germany. The wind power station supplies power to approximately 370,000 standard German households to contribute to the transition to a low-carbon society.

Supply of Clean Power with the Power of Sunlight

Fourth Site in Japan in Our Photovoltaic Power Generation Business

In recent years, there has been an increasing trend to effectively utilize renewable energy worldwide as a measure against global warming. The commercial operation of the Saga-Ouchi Photovoltaic Power Plant (power generation output: approximately 17,000 kilowatts) in which we are participating began in April 2018. This power plant was the largest mega solar (large solar power plant) in the prefecture at the point in time when it was constructed in Ouchi, Karatsu in Saga Prefecture. We plan to operate it for 20 years together with Kyudenko Corporation. The estimated amount of power it will generate annually is approximately 24 million kilowatt-hours; that is equivalent to the annual power consumption of approximately 4,200 regular households. The reduction in carbon dioxide from this will be approximately 11,000 tons per year. This is the fourth mega solar we operate in Japan after those in Ehime, Oita and Okayama. We will continue to proactively promote power generation business that utilizes renewable energy in and outside of Japan. This will allow us to give consideration to environmental conservation (e.g., by preventing global warming) and to contribute to the formation of a recycling-society.

Water Related Business

Approximately 97.5% of the water on the earth is seawater. Only 0.01% of water can be used by humans. On the other hand, global water demand is continuing to increase. This is due to economic development and the increase in population focused on emerging nations as well as changes in precipitation patterns due to climate change. ITOCHU considers our water related business to be a priority field. We are deploying seawater desalination business, water treatment business and concession agreement business, which we have been working on since 2014, on a global basis. This is to contribute to solving water problems around the world.

Business	Content of Efforts
Water supply and sewer services concession agreement business	We invested in the Bristol Water Group in the UK in 2012. This made us the first Japanese company to participate in the UK water services business. The Bristol Water Group provides water services — from water source management to clean water treatment, water supply and distribution, billing and collection, and customer services — to approximately 1.2 million people. We invested in CANARAGUA CONCESIONES S.A. in 2014. This is a company which provides water supply and sewer services in the Canary Islands of Spain. This made us the first Japanese company to participate in the Spanish water services business. CANARGUA CONESIONES S.A. currently provides water supply and sewer services to a total of 1.3 million people under a concession agreement with the local government.
Seawater desalination business	We have invested and are participating in a seawater desalination project in Victoria, Australia. This facility is capable of satisfying the water demands of approximately 30% of the population of Melbourne, Victoria. It is a project that has been supporting the stable supply of water to Melbourne since 2012.
Seawater desalination business	We have invested and are participating as the largest shareholder in a seawater desalination project with a daily volume of 281,000 m³. The Oman Power and Water Procurement Company (OPWP), which is under the umbrella of the Oman government, is promoting this project in Barka in the northern part of the country. This is the largest seawater desalination project in Oman. It involves the construction of reverse osmosis membrane (RO membrane) seawater desalination facilities and surrounding facilities. These will be operated for 20 years. The project has started commercial operation in June 2018.
Seawater desalination plant, and osmosis membrane manufacturing and sales	We started delivering multiple seawater desalination plants to Saudi Arabia in the 1970s. Upon entering the 21st century, we established ACWA Power Sasakura (now: Sasakura Middle East Company) with local capital in the country together with Sasakura. We also advanced into the seawater desalination plant rehabilitation business. We established a joint venture company called the Arabian Japanese Membrane Company, LLC with local capital from Saudi Arabia and Toyobo in August 2010. This company manufactures and sells reverse osmosis membrane elements for seawater desalination.

Examples of Efforts

Stable Supply of Drinking Water Connecting to Life

Largest Seawater Desalination Project in Oman

The demand for water in Oman in the Middle East is expected to grow by approximately 6% a year in the future. The shortage of drinking water has become a challenge together with the increase in the population and urbanization. The Barka Desalination Company in which we are participating entered into a seawater desalination business agreement for a daily volume of 281,000 m³ in Barka in the northern part of Oman toward the stable supply of water in that country in March 2016. This is a public-private partnership project promoted by the Oman government. We have constructed reverse osmosis membrane (RO membrane) seawater desalination facilities and surrounding facilities. These will be operated for 20 years. The facilities started commercial operation in June 2018. This is the largest seawater desalination project in Oman with total operating expenses of approximately 300 million dollars.
The demand for water is growing due to the increase in the worldwide population, economic growth and global warming. In response to this, we consider the water business to be a priority field. Accordingly, we are working to increase our seawater desalination and water supply and drainage businesses. We will continue to promote business that contributes to the effective utilization of water resources in regions around the world in the future.

Stable Supply of Sustainable Forest Resources

For more information see Wood, Wood Products, Papermaking Raw Material, and Paper Products Example 2: Metsä Fibre

Realty Certification Status

Advance Residence Investment Corporation ("ADR") , an ITOCHU group company, is one of Japan's largest real estate investment trusts (J-REIT) specializing in rental housing. In addition, ADR takes full advantage of the collaboration with ITOCHU Group and acquires and operates some of the rental apartments developed and managed by the group.
ADR has participated in the GRESB assessment, which evaluates the sustainability performance of real estate companies and funds, since 2014 (a first among J-REITs specializing in housing). For the last three years, it has received the "Green Star" rating, which is awarded to entities receiving excellent scores in both the Management & Policy and the Implementation & Measurement sections. It has also received 3 out of 5 stars for the GRESB rating, which is a relative assessment based on the overall score and global ranking. In FYE 2019, ADR was chosen as a "Sector Leader" in the GRESB Real Estate Assessment for receiving top scores in the Residential/Asia/Listed Sector. For ESG-related disclosures, it received the highest grade of "A." By continuing to participate in this assessment, we aim to improve the quality of sustainability-related efforts at ADR and ADIM and further improve the scores.

ADR has seven properties that have obtained DBJ Green Building Certification. On a floor area basis, this represents 16.7% of the portfolio, while on a number of properties basis, it represents 2.7% of the portfolio. Additionally, Park Tower Shibaura Bayward Urban Wing, for which ADR has obtained certification has a five-star ranking (buildings exhibiting best-in-class environmental and social awareness), the highest rank in the DBJ Green Building Certification program.

Property name	Rating	Total floor area (m²)
Park Tower Shibaura Bayward Urban Wing	★★★★★	19,562.07
Pacific Royal Court Minatomirai Ocean Tower	★★★★	40,527.16
Residia Tower, Azabu Juban	★★★★	11,053.03
Residia Nishiazabu	★★★★	10,834.93
Residia Tower Meguro Fudomae	★★★★	29,561.91
Residia Tower Kamiikebukuro	★★★★	40,910.59
Residia Izumi	★★★	10,546.49

Details on DBJ Green Building Certification are current as of January 31, 2019

Below are examples of sustainability-related efforts by ADR.

Identification of material issues (critical issues related to sustainability)

Item	Material issue (critical issue related to sustainability)	Related SDGs
Environmental	Extending service life of properties through large-scale repairs and value enhancement work	11, 13
	Obtaining environmental, energy conservation, and other certification	11, 13
	Management and reduction of energy consumption, CO₂ emissions, water usage, and waste volume	7, 11, 13
	Cooperation with property management (PM) and building management (BM) firms in implementing environmentally friendly practices (supply chain management)	11, 13, 17
Social	Improving tenant satisfaction and engaging with tenants	11, 13
	Contributing to local communities	3, 11, 13
	Developing employee skills	4, 5, 8
	Improving work-life balance	3, 8
Governance	Linking asset management fee to fund performance	8, 17

Material issues (critical issues related to sustainability) have been identified using the steps below.
Step 1 Clarify
We have clarified our material issues from among wide range of issues concerning the economy, environment and society using sustainable development goals (SDGs) and other global social issue initiatives, external evaluations (GRESB, DJSI, and MSCI), and various guidelines (GRI 4 Guidelines, SASB).
Step 2 Prioritize and establish
We prioritized the issues clarified in Step 1 based on their importance to stakeholders/stakeholder expectations and the level of impact ADR has on the economy, environment, and society. We then identified nine material issues for promoting ADR sustainability activities.
Step 3 Discuss at Sustainability Promotion Committee and have representative director make decision
The validity of the material issues identified in Step 2 was discussed and verified by the Sustainability Promotion Committee, and the nine material issues were ultimately decided by the representative director.
Step 4 Regular review
In order to flexibly address changes in the social environment, reflect stakeholder feedback, and improve our disclosure transparency, we will review these material issues regularly.
Environmentally conscious asset management
1. Installation of LED lighting
  As of January 31, 2019, LED lighting has been installed at 59 properties (22% of the portfolio).
2. Introduction of green lease clause
  We have introduced a clause on appropriate use of energy and water in our lease agreements with tenants (signed with roughly 44.2% of rental unit tenants as of February 28, 2019). We also incorporate the green lease clause into our management outsourcing agreements with property management companies. Furthermore, we receive LED installation proposals once a year from building maintenance companies based on those agreements.

ITOCHU Advance Logistics Investment Corporation (IAL) is a real estate investment trust (J-REIT) specialized in logistics real estate with ITOCHU REIT Management Co., Ltd. (IRM) serving as its asset management company. IAL fully utilizes its collaborative relationship with the ITOCHU Group to acquire and manage part of the logistics real estate developed and managed by our group.
IAL owns five properties that have acquired DBJ Green Building certification. The proportion of these properties with respect to its holdings portfolio is 86.2% on a floor area basis and 62.5% on a number of properties basis. In addition, i Missions Park Inzai, for which certification has been acquired by ADR, is ranked as five stars (a building with outstanding consideration for the environment and society at the top level in Japan). This is the highest evaluation ranking in the DBJ Green Building certification.

Property name	Rating	Total floor area (m²)
i Missions Park Inzai (Semi-joint ownership share: 80%)	★★★★★	88,018.00
i Missions Park Kashiwa	★★★★	31,976.44
i Missions Park Noda	★★★★	62,750.90
i Missions Park Moriya	★★★★	18,680.16
i Missions Park Misato	★★★★	22,506.53

For the total floor area for i Missions Park Inzai, the figure corresponding to the semi-joint ownership share was rounded down to two decimal places.
The details given for the DBJ Green Building certification are current as of the end of January 2019.

Other Environmental Related Business

Project to reduce our environmental burden with the introduction of side shrink wrap packaging

ITOCHU PLASTICS INC. (CIPS) is supporting the introduction of side shrink wrap film in all stores operated by FamilyMart Co., Ltd., its domestic area franchise company locations stores (collectively "FamilyMart") as an effort to reduce our environmental burden. Side shrink wrap film covers only the area where the lids and containers meet for boxed lunch, sushi and noodle products.
FamilyMart completed the introduction of side shrink wrap packaging across Japan in February 2015.
The change from full shrink wrap packaging — which involves entire containers being packaged in wrapping — to side shrink wrap packaging makes it easier to open products, makes it easier to see their contents and offers a strong barrier performance. In addition to this, it reduces garbage, the plastic raw materials used in the packaging and also CO₂. This greatly contributes to a reduction in our environmental burden.

FYE 2019 results (comparison with conventional wrap film): Approximately 540 ton reduction in plastic raw materials and an approximately 1,935 ton reduction in CO₂.

The corporate philosophy of CIPS is as follows: "Providing lifestyle comfort and convenience with chemical and plastic materials. A corporate culture of integrity propelling us forward, together. ITOCHU Plastics." CIPS is promoting corporate activities, including support for the introduction of shrink wrap film, that aim to balance a better global environment and economic growth. The firm is striving to conserve the environment and to contribute to the realization of a sustainable society.

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